How Can Intrapreneurship Improve Financial Performance?

As a business leader, you’re well aware of the need for innovation. Innovation doesn’t just give your company an advantage—companies inevitably decline over time without it. Don’t believe us? Go ask the folks at your local Blockbuster. Oh, wait…

Innovation needs an entrepreneurial environment to be successful. So, how does a company develop a more entrepreneurial culture? The answer is intrapreneurship, which is precisely what it sounds like—entrepreneurship within an existing organization.

Company culture is important and all, but what about your bottom line? How does intrapreneurship improve financial performance? Intrapreneurship is what makes growth possible—by making change acceptable. This improves financial performance by using in-house resources, innovating from the bottom up, and developing talent. Today we will go into more detail about how intrapreneurship can improve financial performance and why your organization needs intrapreneurs to succeed in the long run.

 

How Can Intrapreneurship Improve Financial Performance?

So you have made it this far, and we are so pleased to have you here. But, you are still probably asking yourself, "How can intrapreneurship improve financial performance in my company?" Don't you worry your innovative little head. We have got you covered. Below we will cover:

We even provided these magic little jump links if you want to skip ahead, but of course, we recommend reading and clinging to our every last word.

 

Intrapreneurship Saves Money by Innovating In-House

One common way companies invest in innovation is by acquiring startups and other companies. Acquisition has its advantages—it can be extremely profitable if you get in on a good idea early—but what about the cost of buying an entire company?

Intrapreneurship lets you test the waters of transformation without the risk. No one has to leave their current position, invest their own money, or build a company from scratch.

Intrapreneurship allows you to innovate within the existing company infrastructure, which takes much less financial investment. Your company already has office space, technology, and of course, employees—everything you need to pursue innovation within your organization. And nobody knows your business like the employees on the front lines, identifying opportunities for improvement every day.

 

Intrapreneurship Maximizes Resources by Innovating Bottom Up

A leader, a manager, and an intrapreneur are all very different roles that require specific skills. Managers and executives can often excel in their positions but lack the intrapreneurial abilities to drive new ideas forward. Meanwhile, the employees with boots on the ground are almost certainly brimming with ideas.

It is often said that a company’s most valuable resources are its human resources, which is partly because your employees are the closest to your customers and business processes. Each of your employees has a unique perspective on your business relationships and operations.

What does that mean for your company’s financial performance? Leadership’s time is expensive, and by focusing on bottom-up innovation, you don’t have to pay executives to also be intrapreneurs. Put innovation in the hands of your employees—that’s where the truly great ideas will emerge.

 

Intrapreneurship Inspires Growth by Investing in Human Capital

Finally, intrapreneurship can improve financial performance in the long term by positively changing company culture. Dynamic, innovative organizations attract creative people looking for a stimulating environment where they feel like they can make an impact—those who might otherwise be drawn to startups. Likewise, an intrapreneurial culture appeals to younger talent that’s become increasingly averse to the traditional corporate environment.

Intrapreneurship also tends to spotlight promising future leaders. Intrapreneurs have to think creatively and solve problems beyond the scope of routine work tasks. They must be motivated to push projects forward and find unique solutions to problems. This unique way of thinking can be desirable in senior management. Engaging these employees with innovative, cross-functional projects helps to identify future leaders while training them simultaneously.

 

Are You rready to Improve Financial Performance with Intrapreneurship?

By now, you should be done wondering how intrapreneurship improves financial performance. Intrapreneurship is all about seeing the big picture, solving problems, and continuously innovating. At their core, intrapreneurs are leaders, so show your team the way forward and lead by example. Take the initiative, take the risk, welcome change, and drive results—with rready.

rready can show you how intrapreneurship can improve financial performance, engage employees, and build a true company culture of innovation. We can help you prioritize intrapreneurship within your organization with the KICKBOX Method, a proven strategy for bottom-up idea and innovation management. Take the initiative today, be the change, and drive results. If you're rready to team up and get growing, contact us today.

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