By Joan Riera
CEO at Active Development and Professor of Strategy, Entrepreneurship and Innovation at ESADE Business School and BMI Executive Institute.
In today’s rapidly evolving environment, organizations of all sizes need to adopt entrepreneurial behaviors to stay competitive. The concepts of agility and flexibility are vital ingredients, and they are no longer exclusive to startups. This shift is crucial for established companies, which must collaborate with startups and internalize their proactivity and innovative spirit to thrive in a turbulent business landscape. The impact of more than ten exponential technologies is intensifying this need, providing both unprecedented challenges and opportunities for businesses to test their resilience and adaptability.
Establishing a Corporate Entrepreneurship innovation engine
Successful corporate entrepreneurship requires a structured and well-planned approach. While creativity and curiosity are essential for driving innovation, having a clear strategy and an effective innovation operating system is even more critical. These elements must integrate seamlessly into the organization’s operations, avoiding fragmentation or perceptions of inequality between internal innovators (intrapreneurs) and external entrepreneurs. Establishing a robust corporate entrepreneurship framework internally ensures alignment before expanding collaborations with external partners.
Based on the “5 Levers” methodology, any successful corporate entrepreneurship system should incorporate the following elements: First, it must align clearly with the corporate strategy and have full support from top management [Lever 1]. Second, it should be embedded within the organization’s ecosystem, including its values, culture, and track record [Lever 2]. Third, mechanisms should be in place to generate a consistent pipeline of business ideas, along with clear criteria and checkpoints to evaluate and select the most promising ones [Lever 3]. Fourth, a structured plan should support the development and success of selected projects [Lever 4]. Finally, a comprehensive dashboard with key performance indicators is essential to monitor and manage the system effectively [Lever 5].
Organizations such as multinational corporations, family businesses, and medium-sized enterprises have achieved significant returns from corporate entrepreneurship initiatives, demonstrating their ability to positively impact the bottom line. By leveraging innovations from internal teams and fostering collaborations with startups, these companies have created powerful tools to navigate today’s unpredictable business environment.
Bridging Exploration and Exploitation
The challenge lies in reconciling two seemingly opposing mindsets: exploratory intrapreneurs, who thrive on innovation and experimentation, and traditional exploitative teams, who focus on optimizing established processes. Successful organizations must bridge this gap by aligning long-term innovation goals with short-term operational priorities within a cohesive strategic framework. The pressure to deliver immediate results often becomes a significant obstacle to cultivating a forward-looking, long-term vision.
To navigate this complexity, organizations should balance their efforts across incremental, radical, transformative, and even moonshot innovations. These diverse approaches ensure both gradual improvements and bold, disruptive advancements. In a rapidly changing environment, anticipating disruption isn’t just an advantage – it’s essential for survival. As the saying goes, “The best way to predict the future is to create it.”
Seven Pillars of Entrepreneurial Behavior
- Challenge Everything: Constantly ask “Why?” and evolve toward “What if?” questions. The rapid impact of exponential technologies enables entrepreneurs and organizations to design previously unimaginable solutions.
- Pursue Disruption: Go beyond incremental innovation to embrace disruptive ideas that challenge traditional business models, even if they seem threatening.
- Kill Your Darlings: Prepare to design and incubate ventures that could eventually disrupt or replace your core business. This requires a cultural and mental shift toward transformation.
- Leverage Humor and Passion: A positive, optimistic attitude fuels successful innovation. Teams driven by passion and joy outperform those bogged down by negativity.
- Prioritize Customer Orientation: Focus on delivering value by solving real problems or meeting needs effectively. Remember, technology gains value only when applied to practical solutions.
- Adopt a Culture of Failures as Learning: Test hypotheses with customers early to minimize costly missteps and accelerate learning cycles.
- Democratize Innovation: Hold everyone accountable for results while incentivizing and recognizing contributions to sustain motivation and energy.
Reviving the Entrepreneurial Spirit
Organizations that rekindle their original entrepreneurial spirit undergo revitalization, energizing teams to face emerging challenges. By fostering this culture, businesses not only adapt to change but also proactively drive it.
Welcome the innovators and the rebels – let’s embrace the startup spirit, together.
