"Innovation distinguishes between a leader and a follower," Steve Jobs famously said, underlining the value of Corporate Entrepreneurship. In today's dynamic and volatile corporate landscape, an organization's capacity to innovate and undertake entrepreneurial ventures is considered a strategic asset. The significance of this capability has been highlighted by recent shifts in global economics and industry dynamics, amplified by the far-reaching impacts of the COVID-19 pandemic.

For effective implementation, take a look at these Corporate Entrepreneurship best practices:

• Corporate Entrepreneurship Primer (24-slide PowerPoint deck)
• Corporate Entrepreneurship Program Development (31-slide PowerPoint deck)
• Hypergrowth Curve (157-slide PowerPoint deck)

A New Era and the Rise of Corporate Entrepreneurship

In an environment characterized by rapid and relentless change, McKinsey research indicates that 84% of global executives believe that innovation is critically important to their growth strategy. According to Accenture, companies that actively foster an entrepreneurial culture are 1.7 times more likely to be leaders in the market compared to those that don't. But what does Corporate Entrepreneurship entail?

Corporate Entrepreneurship, also known as Intrapreneurship or Corporate Venturing, is Strategic Management's response to the need for continual innovation and revitalization within large organizations. Far from being just another buzzword, it encapsulates the organization's collective energy and potential to engage in innovative behavior and practices such as Strategic Renewal, Corporate Venturing, and Innovation.

Explore related management topics: Growth Strategy

Key Principles of Effective Corporate Entrepreneurship

While Corporate Entrepreneurship can drive growth, productivity, and market position, its successful implementation is not a walk in the park. Herein are key principles that companies need to incorporate into their strategy:

1. Risk Tolerance: Just as entrepreneurship comes with inherent risks, so does Corporate Entrepreneurship. Bain's survey of over 450 global companies revealed that organizations with high risk-tolerance are three times more likely to report significant financial success from their innovation efforts.
2. Organizational Autonomy: PwC's global strategy survey underscores that empowering teams, providing them with the freedom to experiment, can foster an environment that encourages entrepreneurial efforts and creativity within the organization.
3. Cross-functional Collaboration: practical insights from EY assert that facilitating cross-functional collaboration can act as a catalyst for innovation, providing diverse perspectives, and fostering an entrepreneurial mindset in the process.

The Role of Leadership in Driving Corporate Entrepreneurship

Leadership plays a pivotal role in nurturing and promoting Corporate Entrepreneurship. Gartner's research informs that leaders need to encourage entrepreneurial behavior, facilitating a culture of calculated risk-taking and constant learning. Further, authentic commitment from the C-suite down to middle management is essential for embedding an entrepreneurial spirit into the fiber of the organization.

Achieving Balance: Operational Excellence and Corporate Entrepreneurship

Striking a balance between Operational Excellence and Corporate Entrepreneurship is indeed a challenging act. Deloitte's studies illustrate the need for large organizations to achieve 'ambidexterity', the ability to focus on incremental improvements (sustaining innovation) while also chasing radical innovations (disruptive innovation).

Explore related management topics: Operational Excellence

Sustaining Corporate Entrepreneurship: The Way Ahead

Despite the evident benefits and increasingly important role of Corporate Entrepreneurship, maintaining an entrepreneurial drive within established organizations is a continuous voyage. It calls for perennial efforts in Leadership, Culture, and Change Management. BCG's analysis indicates that companies need to build an adaptive advantage – the ability to change as fast as the environment. That means going beyond reacting to changes—heeding the wise words of Jobs—to distinguish your organization as a leader in the landscape.

Explore related management topics: Change Management