Intrapreneurshit

 Uncategorized  Comments Off on Intrapreneurshit
Jul 132016
 

Like long forgotten songs on a K-Tel compilation, Intrapreneurship, the notion that employees of large organizations can hustle and scramble like entrepreneurs to create innovation and radical growth, is back! Of course, its day in the 1980s sun was a failure. But today’s promise is the success of Silicon Valley’s disrupting wunderkind.

Should intrapreneurship actually catch on, again… it will fail. Again. Smart executives of targeted enterprises and government departments ought to remember why it failed before and take a pass this time. The flawed assumption is that entrepreneurs thrive in any environment. Except, everything that makes entrepreneurship admirable is suffocated in the low oxygen atmosphere of the large organization.

The entrepreneurship allure is palpable: a dream of agility, disruption, and outsized growth leading to dominion over new and even undiscovered frontiers. With unicorns on every horizon, it’s hard to ignore. But for large organizations, it’s a mirage that will squander resources and frustrate everyone.

The larger the organization, the more its strength weighs upon it. It can no more be an entrepreneurial entity than the growth business is a colossus bestriding the world. The pitch to turn an eighteen wheeler into a Tesla is ridiculous and counter-productive.

Large organizations need not ogle enviously at the upstart entrepreneurial organizations rapid, often false growth that captures market and media attention. Appreciate your own qualities. Large organizations are mostly slow and steady. They have to be. Oscillating around opportunistic pivots would rend the behemoth from seam to seam. A material mistake by a small business constantly changing anyway is bad but recoverable. A material mistake for a large organization could prove mortal (without government intervention). Demands of governance and responsibility befitting its stature command the organization to be circumspect. One role of large organization is to stabilize tempestuous seas.

Sounds banal compared to the romantic entrepreneur. But, this gummy stateliness belies vast virtue. Large organizations have the power to change markets and industries. That they may choose not to because they’re comfortable has nothing to do with intrapreneuring. The taxi industry did not have to actively ignore its suzerain being upended while focusing on rigging regulation. Moreover, a start-up did not succeed in digitizing music nor create the consumer smart phone industry. Apple did. Ultimately, large organizations control innovation and disruptive change.

Your favourite innovation guru will have written that when industries heave with revolution, some venture-backed entrepreneur has used a technology or method to disrupt a cozy environment. But even where that is the case, it’s because the large incumbents were sleeping. As often as not, industries are turned inside out because competitive, large organizations acquire or introduce changes to the competitive environment and evolve the marketplace. In effect, they reinvent themselves and their worlds.

This has little to do with being entrepreneurial. It has everything to do with being observant, smart, and courageous. These mark the entrepreneurial character but are not exclusive to it. Most organizations require innovation of some sort, not all need the peculiar and destabilizing qualities of the entrepreneur.

This intrapreneurship fad is but a means to a desirable end: innovation, which in turn leads to growth (and maybe reinvention). A large organization does not have to weaken its chances pretending to be something it is not and cannot be. Of course, large organizations should do things to remain vital and purposeful. But they should play to strengths.

Large organizations should get and be strong at anticipating changes to their world as has Royal Dutch Shell. They should strive to innovate. That will necessarily keep them apprised of near and distant (technology) innovations around them. Large organizations have the resources to do something better than be entrepreneurs: they can buy entrepreneurs—at the right time.

Large organizations have been known to get fat and lazy, ferreting out challengers, buying them, and burying their technologies to maintain control of their worlds. The world no longer allows that. Enterprises need to tack: don’t buy the start-up or growth company to shelve it; buy it to grow it and, maybe later, internalize it. I say maybe because the choice could be to shape the smaller organization to benefit from and provide benefits to the large organization. This is a different skill, but one a large organization could more probably create.

Many enterprise organizations would be better off creating a farm system of minor investments and expertise at observing real entrepreneurial action. Supporting and keeping them alive, all the while creating the internal conditions to ingest entrepreneurial output and do what enterprise organizations do best: serve scale.

Large organizations have to be stable, not ossified. An aircraft carrier is no PT boat. It is built for stability in even the roughest waters. To be the indispensible centre of many critical operations, ths largest of naval vessels must be stable. Necessarily, it doesn’t move nimbly. It would be absurd to expect it to operate like a frigate. But even with the responsibility to provide a dependable platform, the aircraft carrier and its personnel are always prepared and vigilant for stormy seas or competitive attack from the sky or under the waves—from other navies or even pirate flotillas.

Think about that. Maybe the idea of a carrier group fleet would serve large organizations well in structuring themselves to do battle in their own corporate oceans.

Innovation Nation? More like Pontificate State

 Business, Canada  Comments Off on Innovation Nation? More like Pontificate State
Jul 132016
 

Innovation will not get better in Canada. Sorry Minister Bains, we will not become “Innovation Nation” because we are not a start-up nation. Not that being a start-up nation is necessary. But without start-ups, innovation has to come from the enterprise level. In Canada, it will not, except from a few egoless businesses still run by the originator that ignore and avoid “professional” managers/consultants in important leadership roles.

Sadly, the rest of enterprise size organizations will not be helpful though essential. It will not be for a want of desire and intensity. It will not be for want of noise. It’s because the biggest fraud and disservice the media and management gurus have perpetrated on gullible MBA-class and younger business executives weaned on two rounds of Internet unicorns, is to make it seem like innovation is easy and immediately accessible to those that want it.

Enterprises can put attention and resources to the challenge. And yet it doesn’t happen. So, what’s wrong? Obviously, it must be misguided tax (incentives) and industrial policy. No, there is a brain drain. No, it has to be inadequate support and early-stage financing. That’s not right. There’s a scaling capability shortfall. Or we need an entrepreneurial startup culture. Or maybe, everybody’s just not wishing hard enough.

Certainly, based on prevailing problem identification and solutions, it couldn’t be because real, noticeable innovation is hard, infrequent, and more demoralizing than cold call door-to-door sales. More than that, it’s not simple. In fact, innovation is typically complicated and complex (and if you don’t know the difference, perhaps that’s part of the issue…). None of which sits well with enterprise executives of the sort described.

We appear to have been convinced that everything at every stage should be simple. And some things are—at some well-trod, detail-defying level of description. Innovations, by definition, are not that. Even when, under the adoring glow of market success, the essence of the innovation is ridiculously over-simplified (think Über or iPod or Amazon) for broad consumption, the true measure of non-simplicity is easily scratched out of the polished surface.

Simple is fine. So long as you, behind the wheel of your car understand start (with biometric voice command), engage (GPS-enabled destination command), and let the car do its thing, you’re good. We’ve described simply the innovation of the self-driving automobile. Of course, it’s absurd. Such a “simple” innovation is unattainable without somebody—the business people purveying it perhaps—knowing the much less than simple (creative) thinking just beneath this placid surface.

Yet too many executives—with an unrelenting commitment to the latest whack-a-doodle pronouncements on professional management technique—have no real clue about innovation. If they did, they would know that asking for product concepts, business plans, and so on for innovations to be simple during that period between fanciful conception and practical realization is neither helpful nor valuable.

Focus not on the first part, but the last three words of what’s called Einstein’s Razor: “Everything should be made as simple as possible, but no simpler.”

There is skill and art in communicating the essence of innovation to different audiences at the appropriate level of complexity. Overwhelmingly that is where the thinking and difficult work falls into the “simplest possible description” trap never again to get back to the necessary level of difficulty that innovation demands. Too many of these professional managers are educationally and temperamentally unprepared to root in the not-simple, not-easy, muck of innovation from which the eventual simple story will eventually emerge.

An innovative idea starts with a simple proposition. But, if achieving it were that simple and straight-forward, it would be done already. That simple proposition, whether a business model innovation or technology development, meets the challenge created by the very recombination or change that makes the simple idea so appealing. Through a lot of trial and error, failure and heartbreak, a Eureka moment may happen. It is viable! Only then can the whole endeavor be once again regressed to an easy-to-consume PowerPoint graphic or 20-second elevator pitch or advertisement or what-have-you.

Those who haven’t or don’t work on innovations regularly have no idea. Until more enterprise (senior) leadership owns and understands (or grudgingly tolerates if not gets mucky themselves) the messy complexity of the process, and accepts that nothing gets simple without being very complex first, innovation will not be a strong suit of Canadian business. Our go-to move will remain able administration.

It doesn’t have to be this way. And it doesn’t have to be the future. Leaders, especially those phalanxes senior professional managers need to learn to love wallowing in the guts of their businesses—especially if their business is innovation.