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Further evidence of intrapreneurship includes the company s acceptance of failure Google is a great example In response to an unsuccessful innovation that cost the company several million dollars, Larry Page, one of Google s founders, told the employee who had been in charge of the idea, I m so glad you made this mistake, because I want to run a company where we are moving too quickly and doing too much, not being too cautious and doing too little If we don t have any of these mistakes, we re just not taking enough risk 3 The final sign of successful intrapreneurship is when the company proactively encourages employees with creative ideas to step forward An extreme example is Sealed Air Corporation, which has 14,000 employees Its employees are encouraged to bring entrepreneurial ideas directly to its CEO STANDARD OPERATING PROCEDURES The ideal intrapreneurship system should be made up of the following processes: 1 The system should be simple and user-friendly The US Forest Service Eastern Region changed its innovation suggestion process from a four-page form to telling its employees, If you have an idea, tell your supervisor or send an email If you do not get a response in 2 weeks, as long as the idea is not illegal, go ahead and implement the idea Before the change, the 2,500 employees submitted, on average, 60 ideas annually A year after the new procedures were implemented, 6,000 new ideas were submitted! 2 Reward employees for successful ideas Share the wealth Northwestern University has a results-oriented reward system for anyone who develops an idea that gets commercialized In 2007, chemistry professor Richard Silverman received his portion of the royalties that the university received from a pharmaceutical firm, Pfizer, which purchased Lyrica, a chronic pain relief drug that had been created by Silverman The university received more than $700 million Silverman s portion has not been
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publicly disclosed, but it can be assumed that it s many millions of dollars, given the fact that he and his wife are the primary benefactors for the new $100 million Northwestern University building that will bring together engineering, biology and chemistry for interdisciplinary research Its name will be the Richard and Barbara Silverman Hall for Molecular Therapeutics and Diagnostics All ideas should be reviewed, and the submitters should be informed of a decision as soon as possible Every step in the review process should be transparent and well publicized, as should the criteria used to approve ideas The review and approval process should be managed by more than one person All intrapreneurial success stories should be publicized throughout the company to all employees Employee expectations should be proactively managed Employees should be told that in the entrepreneurship world, most new companies do not succeed And the same applies in the corporate intrapreneurship world, where most ideas will be rejected
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INTRAPRENEURSHIP BLUNDER The implementation of the procedures just listed will almost guarantee that a company does not duplicate one of the greatest intrapreneurial blunders in corporate history In the mid-1970s, Steve Wozniak, a college dropout and self-taught electronics engineer, worked at Hewlett-Packard (HP) He offered his employer the chance to develop the idea that he had for a user-friendly personal computer Hewlett-Packard said no thank you So with $1,300 derived from selling his van and other assets, he left HP at the age of 26 and, with the help of his friend, Steven Jobs, developed the Apple I computer for their new entrepreneurial start-up, Apple Computer, Inc
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1 Gary Emmon, Up from the Ashes: the Life and Thought of Joseph Schumpeter, Harvard Business School Alumni Bulletin, June 2007, p 25 2 Robert C Wolcott and Michael J Lippitz, The Four Models of Corporate Entrepreneurship, MIT Sloan Management Review, Fall 2007, p 77 3 Adam Lashinsky, Chaos by Design, Fortune, October 2, 2006, p 88
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