Over the
years I have heard how corporate entrepreneurship is the driving force behind
many an organisation’s thriving, how a few high value individuals can think the
next big thing while sitting behind their desks. Another view is of a research
and development department that sits and tries to move the organisation forward
by charting new course and products. But over the years I have tried to see the
working of intrapreneurship in a typical organisation setting and concluded it
is almost impossible to nurture or encourage it. A company is formed and
pursues a particular line of business and most times the formula will be a
working one and everyone slides into the comfort of “if it’s working why fix or
tweak it?” From observation, I have noticed that corporate entrepreneurs are
most likely going to run into brick walls and the way organisations are set
will most likely be the reason these brainy people end up being forced out and
start their own ventures. Below is a detail of the pitfalls innovativeness face
in organisations:
Organisational
Structure
Most
organisations are setup in a rigid way; boundaries are clearly defined and
marked. Each employee knows their place and what they are expected to do in a
normal working day. But innovation does not always follow these lines and it is
surely not a respecter of limits.
How does an employee in Human Resources
initiate a change in the purchasing department that will save cost or create
new opportunities or mechanic seeing an opportunity in the marketing department
of a vehicle manufacturing company? To achieve this an employee must cross some
set boundaries, either by engaging the head of purchasing or marketing
directly. But such an excursion will likely rouse the suspicion of his/her own
boss in the hierarchy if they were not made privy to the opportunity. What if
the boss is made aware and sees no value in it, how does one proceed without
seemingly undermining authority? What if the innovative plan is shot down by
the person in the other department, how does one proceed? Can they appeal to a
higher authority without looking like further undermining authority and
crossing well defined lines? So most brilliant ideas get stifled between lines
of authority which are not easy to bypass. A few organisations have realised
the value of encouraging innovation and these go on to do well in the market
place and place a high value on their employees, the lines of authority are
blurred to ensure that they get the most out of their employees.
Dearth of
Spontaneity
Organisational
culture defines roles and limits of freedom; indirectly it also limits the spur
of thought. The R & D department is expected to be the hub for new ideas;
the Human Resources for reward and employee welfare et al. Ideas know no limits
or bounds but employees are conditioned to follow a particular line of thought.
An employee with an idea that impacts another department will not find an
outlet for implementation and an employee who does not have a position of
influence can have a great idea to change the business but be powerless to put
it before those who have the authority to look at it and consider. In a way
specialisation has conditioned people to think in terms of their roles, there
is not much room to think the bigger picture or the next big thing. I have had
casual chat with one employee in my department concerning improving processes
in a completely different department, I simply asked, “if this department could
change this and do their job in a particular way, how much would it improve
business?” The bemused employee simply responded by asking, “Are you paid so
much to worry about those things”. However if an organisation is a sum of its
small parts, then having many employees think in terms of their own section or
department is a harbinger for disaster.
Organisational
Culture
Innovation
always is accompanied by a change in process, thoughts or design while on the
other hand through interaction an organisational culture is entrenched. Take
for example employees who eat and drink on their desks and get the cups, plates
and other utensils collected by the cleaners to the kitchen. It might not be a
rule but a culture developed over time. The company can save by having each
employee clean up after themselves but an employee who comes up with such an
idea will face an uphill task getting it adopted. The notion of “we do it this
way” will be entrenched. In the event of this employee’s idea succeeding, there
will always be alienation and backlash from those whose norm has been changed.
I remember joining one organisation, after a few weeks I noticed that people
were not working efficiently, tried to encourage new ways to get faster and
better results. I was only able to implement changes some 6 months later after
becoming part of management, in the end everyone appreciated how the changes
made work easier for all despite the fact that culture had stood in my way at
first.
Plagiarism
Given the
way structure determines communication lines; your brilliant idea is going to
get to someone before it gets to the Managing Director for example. Supposing
one has a great idea and tells the manager for the responsible department, he
promises to look at it and get back to you and never does. After one year you
find the manager getting mention at the company annual awards for bringing an
innovative idea. Your idea had been reproduced as his own. They get the bonus,
raise and accolade while you lament wondering how people can behave this way.
You can try to fight for your recognition as the originator of the idea but
chances are it would have been intricately done with a revolt from you having
been considered. It becomes worse if you are lower down the hierarchy and they
are up there and eventually you can find yourself on the street without a job.
So people do not become saints at work, skulduggery follows and can be used to
your detriment. Perhaps organisations need to become more open or have a
platform where ideas are funnelled, the originator given chance to be the main
person at presenting the idea with relevant support structures. Most often when
an employee thinks of a good idea, they look outside for implementation because
of fear of having ideas stolen.
The Outlook
Facing these
hurdles, what is a corporate entrepreneur left with? What is a rational
employee with great ideas likely to do? It is no wonder many entrepreneurs
leave their jobs and start up something. Very few organisations are setup to
mine the innovativeness of their employees. An entrepreneur is probably a
corporate entrepreneur who was once in an organisation and saw no outlet for
their ideas and the combined forces of structure, culture and officialdom
connived to push them out and start something. Perhaps in future there might be
entrepreneurs in the organisations, evidently those organisations whose
employees are not simply working for a pay cheque are doing well for themselves
and employees; in future necessity might force a change as companies are forced
to adapt or die. For now Peter Drucker’s idea of an intrapreneur is just but a
pie in the sky.
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