A question that many executives ask me; “Is corporate entrepreneurship just the latest management fad.” Fad or no fad the real question is why now!
Read 10 reasons why corporate entrepreneurship is needed now. Then let me know if you think corporate entrepreneurship (Intrapreneurship) is a management fad or here to stay.
1) Inadequate Growth: The current reality is that most organizations have spent the last decade investing in existing or mature products that are not providing adequate growth.
2) Failure Rate: The failure rate for new business initiatives remains high for new products and services, more than ninety percent for transformational efforts.
3) Lack of Capabilities: A majority of CEOs do not feel like they have the skills or capabilities inside their organization to achieve their growth agenda, they are probably right.
4) Few Role Models: Only four percent of executives in large organizations are entrepreneurs or entrepreneurial, most executives have achieved their success by managing the core business not building new ones.
5) Major Barriers: After a decade of cost cutting and streamlining operations, organizations have created rigid and inflexible systems that have created roadblocks and barriers to growth.
6) Inability to Change: Risk adverse cultures, resistance to change and fear of the unknown are impeding an organizations ability to respond to a rapidly changing world.
7) Reliance on the Past: Increasing uncertainty, complexity and ambiguity are putting pressure on organizations to rely on practices that worked well for them in the past, but may not now.
8) Poor Execution: Three out of five organizations say they are weak when it comes to execution and they see corporate entrepreneurship as a way to close the gap between idea generation and execution.
9) Business Benefits: Corporate entrepreneurship is linked to higher levels of productivity, engagement, growth, innovation and financial returns. It is also linked to intangible outcomes like knowledge, skill development and job satisfaction.
10) Accelerate Growth: Sixty five percent of the top one hundred innovative companies are instituting corporate entrepreneurship as a way to increase their ability to accelerate new business growth.
Is corporate entrepreneurship the latest management fad or a business imperative? You decide!