Top organizations reveal the innovation challenge during Global
TORONTO, Nov. 17 /CNW/ - A new survey released by Ernst & Young during
Global Entrepreneurship Week reveals an overwhelming majority of
participants (82%) strongly agree that the ability to innovate is
critical to the growth of their organizations during economic recovery.
Yet almost half of respondents also say that generating innovative
ideas becomes more difficult as their organizations grow in size and
"Large and well-established companies often comprise rigid structures
that can stifle the entrepreneurial spirit," says Colleen McMorrow,
Leader of Ernst & Young Canada's Strategic Growth Markets practice. "As
Canada's key industries enhance their presence on the global stage,
businesses need to foster and encourage "intrapreneurship"
(entrepreneurial thinking within the company), in order to maintain a
Igniting innovation: how hot companies fuel growth from within examines the secrets of successful intrapreneurship, and its vital role
in the economic recovery. The report polled 263 of the world's leading
entrepreneurs (all winners of Ernst & Young's Entrepreneur Of The Year® Awards), and identifies six strategies of effective intrapreneurship:
1) Set up a formal structure for intrapreneurship. It's critical to give people enough time away from their day jobs to
work on creative ideas, while setting up formal processes to make sure
those ideas go somewhere.
2) Ask for ideas from your employees. Encourage everyone from all ranks and functions to contribute to the
3) Assemble and unleash a diverse workforce. Statistical research has established that drawing on people from
different backgrounds with diverse viewpoints results in better ideas
and better products.
4) Design a career path for your intrapreneurs. As they tend to dislike conventional administrative jobs, look for
non-traditional ways to advance their careers.
5) Explore government programs and incentives. Don't ignore the growing number of state-sponsored programs that
support entrepreneurial ventures. Step up efforts to obtain government
funds for innovation.
6) Prepare for the pitfalls of intrapreneurship. Backing bold ideas can backfire. Be prepared to deal with failed
ventures, internal conflicts, financial risks and intellectual property
battles. Set risk limits up-front.
Following these guidelines can help companies free up organizational
gridlock and establish a supportive environment that fosters the
creative process. However, the report cautions that success is
dependent on support from senior management and a framework that views
intrapreneurship as an end-to-end process.
"Intrapreneurs in Canada need encouragement, support and resources, as
well as the freedom to fail without repercussions," says McMorrow. "The
best way for a company to foster creative thinking is to tap resources
it already has — its people. Encouraging the development of high-risk,
high-reward ideas within the safety and support of an established
organization is what lies at the heart of intrapreneurship."
The report finds that in the face of fierce global competition,
companies need to be increasingly agile in order drive growth. By
institutionalizing intrapreneurship so that it becomes an inseparable
part of a company's operations, companies can enable the innovation
process, and hang on to market leadership positions.
About Ernst & Young
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advisory services. Worldwide, our 141,000 people are united by our
shared values and an unwavering commitment to quality. We make a
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Ernst & Young refers to the global organization of member firms of Ernst
& Young Global Limited, each of which is a separate legal entity. Ernst
& Young Global Limited, a UK company limited by guarantee, does not
provide services to clients.
SOURCE EY (Ernst & Young)
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