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Hello, I’m here Dimafounder of PitchBob – an AI idea management corporate innovation tool. One of the areas I have focused on in product development is corporate innovation because I see significant untapped potential there. In this text, I would love to share my opinion on why internal entrepreneurship programs fail and how to fix them.
Every corporation hides enormous, untapped modern potential resulting from the knowledge, experience and motivation of its employees. While many corporations recognize this and implement programs akin to idea portals, incubators, hackathons, and leadership training, these initiatives typically only engage about 5% of employees.
Why only 5%? These efforts tend to attract individuals who are already prone to entrepreneurial behavior – those that are willing to step out of their comfort zone and temporarily adopt a more modern approach. The remaining 95%, who may lack such inclinations, are often ignored despite their potential to contribute beneficial insights and ideas.
This exclusion results from corporate structures that are designed to employ specialists, not entrepreneurs. Employees are rewarded for excelling in stable positions, making them less willing to take risks or change.
While some argue that the focus on 5% is intentional to avoid risks akin to the innovator’s dilemma, such restrictions limit innovation. Unused ideas often flow elsewhere – to competitors, personal side projects, or latest ventures after employees leave. The challenge is not the lack of innovation, but its inclusive use.
Nature of the problem 5%.
Corporate environments are designed to hire and reward specialists, not entrepreneurs. Employees are often chosen for their ability to excel inside structured roles and naturally gravitate toward their comfort zones. These comfort zones represent stability, achievement, and profession growth – an ideal that many strive for when signing up for a job.
(*8*), on the other hand, requires going beyond this comfort zone. It requires taking risks, experimenting, and adopting behaviors more suited to startups than traditional corporate roles. It’s no wonder that only a small percentage of employees voluntarily engage in programs that require them to submit ideas, take ownership of projects, or challenge the established order.
This is not necessarily a fault of the employees – it is a reflection of corporate style. Organizations inadvertently reinforce this divide by creating innovation programs that meet the needs of the entrepreneurial minority while alienating the majority.
Hidden risk of foreclosure
By focusing on 5%, corporations risk missing out on the untapped potential of the remaining 95%. These employees often have beneficial insights into inefficiencies, unmet customer needs, and creative solutions. However, if they are excluded from innovation programs, their ideas may:
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Stay Sleep: Employees may abandon their ideas altogether, assuming they are irrelevant or unworthy.
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Fuel competitors: Frustrated employees may leave and implement their ideas elsewhere.
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They appear as side projects: Ideas may emerge outside the corporate ecosystem, leaving the organization outside the value chain.
Result? Corporations inadvertently allow their internal innovation potential to stagnate or slip away.
Why is the concentration still at 5%.
Some may argue that only 5% involvement is intentional. After all, opening the floodgates of innovation to everyone could overwhelm existing systems, leading to what Clayton Christensen referred to as the innovator’s dilemma — where latest ideas disrupt core business operations.
But this fear is largely unfounded. Modern organizations have developed tools to manage innovation risk through prioritization, resource allocation, and strategic alignment. The real problem is artificially narrowing the path at the entry point based on perceived risk fairly than actual constraints.
8 Ways to Unlock 95%
To maximize innovation, corporations need to rethink their approach. Here’s how to engage your untapped majority:
1. Redefine your comfort zones
Don’t force employees to leave their comfort zone to participate in innovation. Instead, explain that their ideas might be implemented without compromising their roles. Whether it’s improving workflows or tackling global challenges, show them that innovation can coexist with their on a regular basis responsibilities.
2. Create a low pressure environment
Offer employees a secure space to explore ideas without deadlines, presentations or formal processes. Avoid common pitfalls that overwhelm employees once they express interest in innovation.
3. Identify ideas early
Develop mechanisms for discovering ideas from the very starting, without imposing portals, presentation sessions or competitions. Informal conversations, light surveys, or anonymous submissions can reveal ideas without pressure.
4. Align ideas with strategies
Once ideas are identified, early guidance ought to be provided on how to align them with company priorities. This ensures relevance, increases buy-in and prevents wasted effort. Employees should never spend months refining an idea only to be told, “This doesn’t align with our goals.”
5. Eliminate duplication
Create tools to detect overlapping ideas at the hypothesis stage. Ideas often appear among many people at the same time. By identifying these areas of overlap early, you’ll be able to consolidate efforts and avoid demotivating employees whose ideas are already being implemented elsewhere.
6. Making it easier to create a team
Help employees connect with colleagues who have complementary skills. Corporations often operate in silos, where employees are unaware of the expertise surrounding them. Early team-building efforts can create stronger, more diverse intrapreneurial teams.
7. Provide tangible support
Support your employees’ ideas with the resources they need – whether it’s mentoring, funding or tools. Make sure they feel empowered, not burdened by bureaucracy.
8. Celebrate the small victories
Emphasize successes to maintain momentum. Recognizing even modest achievements strengthens a culture of innovation and encourages others to contribute.