Profit From Entrepreneurs Within Your Business
Innovative and creative employees – entrepreneurs within your business – are a rarity. However, Stephen Archer argues that this doesn’t have to be the case. Archer, business analyst and Director of Spring Partnerships believes that a strong competitive advantage in business can be achieved through forging a culture of innovation.
Known as ‘intrapreneurs’, these are employees within a company who will undertake something new, without being asked to do so. They act like entrepreneurs, but they work for you. They are innovative and creative – people who can transform an idea into a profitable venture for your business.
These individuals need not be a rarity, as they are perceived today. Every employee can become more creative and entrepreneurial if their company adopts a different approach to their development and cultivates a culture where innovation and creative thinking is encouraged and supported.
One of the main problems facing many UK businesses at the moment is that they have lost sight of the importance of fostering creative thinking and innovation. In doing so, they are placing their business at risk and giving the competition a serious advantage.
Diversify through creative thinking
The economic crisis of recent years has turned many offices into more highly pressured and lean working environments. Many organisations have become so lean that intrapreneurialism is regarded as discretionary, a luxury even. But the stress of leaner environments should be converted into the energy, creativity and innovative thinking that spawns new ventures, diversification and even disruptive products and services.
Businesses have a duty to exploit the turning tide of the economy.
So what can businesses do to be more competitive? It is in times of adversity that some of the greatest innovations have appeared and in today’s more stressed times there is a healthy pressure to differentiate, become more competitive and establish more intrinsic value in the organisation. Does this come about by exhortations by the CEO or by establishing a culture of freedom to think and innovate? It may be the former but it must be the latter.
It is down to business managers and the HR department also to establish a culture where intellectual power within the company is harnessed to the betterment of innovation and in so doing equals motivation, productivity and profits. An energised workforce is an effective and content one. Most people in an organsiation have enough sight of what is going on to be able to contribute to innovation. However, we are not talking just about suggestion boxes. I am referring to special projects and cross-functional work groups to establish innovation in products, service and operations. Managers need to make it clear that this is not a one off; to create sustained motivation, people must feel valued. Leadership has to be consistent and authentic in the way that it empowers teams to be creative. Here are some ways of encouraging creativity and innovation:
- Understand and know what the market wants, but know more about what your competitors are offering and how they behave. Competitors of all kinds are the minimum benchmark for which to aim. Equalling the value of competitive offerings is rarely going to suffice – always ensure you are moving to stay ahead. Look at every weakness in competitor offerings and operations and use advanced brain storming tools such as ‘meta planning’ to develop and refine the winning concepts.
- Empower people to implement their innovations.
- Make it clear that a business must always develop its products and services. NEVER stand still. Even those lucky enough to have patent or intellectual property protection must seek to acquire more advantages. If in any doubt about this then compare the fortunes of General Motors to Honda in the past decade.
- The customer is always a good start point for innovative thinking and should be a central focus for the whole business. The customer and their relationship is central to business success. Do not rush to copy some competitors’ ways of caring for customers (e.g. automated telephone services!). Develop new ways to engage with customers in a way that customers want. They will repay you over and over. This is how Virgin Atlantic took so much business away from the likes of British Airways
- Treat internal employees as customers and friends. The best innovation can come from co-operation between employees – this is an effective way of bringing out Intrapreneurs. Identify and appoint innovation ‘champions’ around the business. These people will be the leaders on innovation development and manage the process. They must drive the culture.
- Any function has scope for innovation – always. HR, finance, customers service, manufacturing, legal, they all must innovate and an innovation culture that embraces all the functions will be a better joined up organisation.
- Lead people to look externally for inspiration and don’t be afraid to steal other people’s ideas. Some of the best ideas and simplest innovations are from businesses that already have had such a drive or survived times of stress. Copy best practice. Sometimes copying is the best route. However, copy it, and then improve it. Look at how the Japanese destroyed the UK motorcycle industry, they copied the UK and made the products better.
- Managers should promote external focus from all departments. Many businesses suffer from internalism and parochialism. They stunt growth, innovation and sap energy. Assume that your business could be killed off by new entrants to the market or new innovations – people or technology based. Get people to think the unthinkable, develop thinking around scenarios that may seem unrealistic. Remember, in 2007 the idea that several banks would fail was unthinkable.
- Lastly, companies must look forward, not back all the time. Create a ‘can do’ rather than ‘can’t do’ culture. There are ‘no but’s’; only ‘yes and’
Innovation can be developed and sustained through consistent behaviours in the business. It is a state of mind and the value is enormous. Everyone must adapt, change and innovate and we can all become Intrapreneurs.
By Stephen Archer, business analyst and Director of Spring Partnership.
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