What is Intrapreneurship?
“Intrapreneurship is a dynamic approach where employees, in collaboration with their organizations, initiate innovative and value-creating activities”. This practice is a vital aspect of modern organizations, enabling employees to innovate and drive change within their companies.
During a recent webinar, we gained insights from experts who have successfully led intrapreneurial programs: Marc Evangelista (Michelin, Author of “Effectuons l’Intrapreneuriat”), Valentine Boitelle (SNCF), and Vincent Vidal (EDF). Their experiences highlighted the challenges and successes of fostering intrapreneurial initiatives, such as the Michelin Innovation Lab, SNCF’s La Ruche, and EDF’s incubation program. You can watch the entire webinar here.
Here are nine unexpected lessons derived from our discussions.
Lesson 1: Immediate ROI is a Mirage
Valentine Boitelle (SNCF) cautioned that expecting immediate returns on investment (ROI) from intrapreneurial initiatives can lead to disappointment. While businesses often seek quick results, significant ROI is typically a long-term endeavor. This pressure for instant results can hinder innovation, underscoring the need for patience and a focus on sustainable growth. For SNCF’s Ruche program, the most substantial impact lies in cultural transformation rather than immediate financial returns.
Lesson 2: The Importance of Structured Methodologies
Marc Evangelista (Michelin) emphasized the need for structured methodologies in intrapreneurship, proposing a three-pronged approach.
- Hypothesis-Driven Methodology: Assessing desirability, feasibility, and viability through statements like “I believe I can…”
- Effectuation Principles: Drawing inspiration from entrepreneurship principles by leveraging existing resources—skills, knowledge, and networks—rather than waiting for ideal conditions. This approach focuses on “affordable loss,” allowing intrapreneurs to determine what they can risk rather than fixating on potential returns, fostering creativity and adaptability.
- “Crazy Patchwork”: Engaging external stakeholders for insights while maintaining ethical standards.
Lesson 3: Strategic Disconnection Leads to Failure
Vincent Vidal (EDF) emphasized that alignment of the intrapreneurship program with the company’s strategic priorities is crucial for success. For EDF, the goal is to create new businesses, not to create new offerings. A prime example of this approach is the establishment of Urbanomy, a company focused on decarbonization, and Hynamics, which operates within the hydrogen production value chain. While these initiatives may initially appear disconnected from current operations, they are strategically aligned with EDF’s vision for the next 5 to 10 years. This alignment not only strengthens the overall group strategy but also facilitates the identification of sponsors, which can significantly accelerate project visibility and support.
Lesson 4: Open Innovation is an Underutilized Lever
Valentine (SNCF) discussed how open innovation can enhance intrapreneurship through collaboration with external partners. Evolving from the La Ruche intrapreneurship program to the Rail Open Lab—an open innovation department with multiple corporates—she aims to create synergies by accelerating intrapreneurship projects within defined sprints. This collaboration not only enriches the projects but also exposes intrapreneurs to the external environment, broadening their perspectives and enhancing their capabilities.
Lesson 5: Impact and KPIs Matter
For Marc (Michelin), there is no magical recipe for establishing KPIs. The most crucial aspect is to align these KPIs with the company’s objectives to effectively monitor progress. Additionally, it is important to focus on the human element of the program. Designed to develop talent, the intrapreneurship initiative should also measure participants’ exposure to innovation tools and methodologies.
To achieve quality outcomes in the intrapreneurship program, it is essential to start with a robust pipeline of projects—essentially creating a funnel for idea generation.
Lesson 6: Intrapreneurs are Not Superheroes, but collaborators
For Vincent (EDF) if intrapreneur views themselves as a superhero, it can lead to detrimental outcomes for both themselves and their colleagues. Intrapreneurs must be open to their ecosystem and build strong teams; they cannot succeed as solo entrepreneurs. He noted that there have been multiple instances where teams fell apart after the incubation period due to a lack of collaboration.
It is crucial for intrapreneurs to engage with their organization and leverage support functions such as marketing, legal, and finance. By actively seeking feedback and fostering collaboration, intrapreneurs can enhance project outcomes and ensure alignment with company goals.
Lesson 7: Budget Ownership Encourages Responsibility
Valentine (SNCF) emphasized that empowering stakeholders with budget ownership for intrapreneurial programs is crucial for their viability. This approach prevents the innovation unit from being viewed merely as an internal “bank” and facilitates the industrialization of new ideas. She also noted that engaging multiple internal sponsors increases project advocates, encouraging them to take a proactive role in advancing initiatives.
At EDF, the budget is managed by the incubator directly. In contrast, Michelin employs a seed funding model that includes salaries, which limits project time and requires finding an internal buyer afterward.
Lesson 8: Ideal Company Profile for Intrapreneurship
Marc (Michelin) emphasized that while there may not be an ideal company for fostering intrapreneurship, several key ingredients are necessary.
First and foremost is the unwavering support from top management throughout the year. Then, the program should be well-structured, with coaches and mentors to help projects progress quickly, which may involve adapting purchasing procedures for a supportive environment. Additionally, it’s important to mobilize competencies that intrapreneurs may lack.
Marc noted that smaller companies often struggle with intrapreneurship programs, as they find it more challenging to accept losses due to the financial investments required.
Lesson 9: The Importance of Dedicated Governance
At EDF, there’s a multi-layered governance which is independent from the rest of the organization. There’s a decision-making layers for the go/no stages, and there’s the mentoring layers. In addition, it’s important for Vincent (EDF) to implicate high-level people to make people move things faster and activate their network.
Conclusion
Intrapreneurship is more than just a trend; it has the potential to create a significant positive impact within companies when structured effectively. By fostering an environment that encourages innovation and collaboration, organizations can harness the creativity of their employees to drive meaningful change and long-term growth.
At Aster Fab, we are keen to help organizations assess their intrapreneurial capabilities. If you’re interested in a 30-minute diagnostic session, please reach out to us at hmaxwell@aster.com. Together, we can unlock the full potential of intrapreneurship within your organization.
For more insights on intrapreneurship, check out the entire webinar here.
