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Hello, it's me Dimathe founder of PitchBob – an AI idea management tool for corporate innovation. One of the areas I have chosen to focus on for product development is corporate innovation, because I see significant untapped potential there. In this article, I'd like to share my perspective on why internal entrepreneurship programs fail and how to fix them.
Every corporation has immense untapped innovative potential within the knowledge, experience and motivation of its employees. While many companies recognize this and implement programs such as idea portals, incubators, hackathons and leadership training, these initiatives typically involve only about 5% of employees.
Why only 5%? These efforts tend to attract individuals already inclined toward entrepreneurial behavior—those willing to step out of their comfort zones and temporarily adopt a more innovative mindset. The other 95% who may lack this inclination are often overlooked despite their potential to contribute valuable insights and ideas.
This exception stems from corporate structures designed to employ specialists rather than entrepreneurs. Employees are rewarded for excellence within stable roles, making them less inclined to embrace risk or change.
While some argue that the focus on 5% is intentional to avoid risks such as The innovator's dilemmasuch constraints limit innovation. Untapped ideas often flow elsewhere—to competitors, personal side projects, or new ventures after employees leave. The challenge does not lie in the lack of innovation, but in its comprehensive use.
Related: How entrepreneurship can contribute to business success
Nature of the problem 5%.
Corporate environments are designed to hire and reward specialists, not entrepreneurs. Employees are often selected for their ability to excel within structured roles, and they naturally gravitate toward their comfort zones. These comfort zones represent stability, achievement, and career progression—an ideal that many strive for when they sign their employment contracts.
In contrast, intrapreneurship it requires stepping outside the comfort zone. It requires risk-taking, experimentation, and adopting behaviors more associated with startups than traditional corporate roles. Not surprisingly, only a small percentage of employees voluntarily engage in programs that require them to pitch ideas, take ownership of projects, or challenge the status quo.
This is not necessarily a fault of the employees – it is a reflection of the corporate design. Organizations unwittingly reinforce this divide by building innovation programs that cater to the entrepreneurial minority while alienating the majority.
The hidden dangers of exclusion
By focusing on the 5%, companies risk missing the untapped potential of the 95%. These employees often have valuable insights into inefficiencies, unmet customer needs, and creative solutions. However, when they are excluded from innovation programs, their ideas can:
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Stay asleep: Employees may completely abandon their ideas, 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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Shown as side projects: Ideas can emerge outside the corporate ecosystem, leaving the organization outside the value chain.
The result? Corporations unwittingly allow theirs internal innovation potential to stall or escape.
Related: 4 ways to drive internal innovation and unleash the entrepreneurial side of employees
Why the 5% focus continues
Some may argue that only 5% commitment is intentional. Ultimately, opening the floodgates of innovation to everyone can overwhelm existing systems, leading to what Clayton Christensen described as the Innovator's Dilemma — where new ideas disrupt core business operations.
But this fear is largely unfounded. Modern organizations have developed tools to manage the risks of innovation through prioritization, resource allocation and strategic alignment. The real issue lies in the artificial narrowing of the funnel at its entry point, driven by perceived risks rather than actual constraints.
8 ways to unlock 95%
To maximize innovation, companies must rethink their approach. Here's how to engage the untapped majority:
1. Redefine comfort zones
Don't force employees out of their comfort zones participate in innovation. Instead, make it clear that their ideas can be realized without compromising their roles. Whether it's improving workflows or addressing global challenges, show them that innovation can coexist with their day-to-day responsibilities.
2. Create a low pressure environment
Offer employees a safe space to explore ideas without deadlines, presentations or formal processes. Avoid the typical pitfalls that beset employees as soon as they express interest in innovation.
3. Identify ideas early
Develop mechanisms to discover ideas in their infancy without imposing portals, pitch sessions or competitions. Informal conversations, light polls, or anonymous submissions can surface ideas without pressure.
4. Align ideas with strategy
Once ideas are identified, provide guidance to connect them to corporate priorities early on. This ensures relevance, increases buy-in and prevents wasted effort. Employees should never spend months working on an idea only to hear, “This doesn't align with our goals.”
5. Eliminate duplication
Build tools to discover overlapping ideas in the hypothesis phase. Ideas often appear at the same time among many people. By identifying these overlaps early, you can consolidate efforts and avoid demotivating employees whose ideas are already in progress elsewhere.
6. Facilitating team building
Help employees connect with colleagues who have complementary skills. Corporations often operate in siloswhere employees are unaware of the expertise around them. Early team building efforts can create stronger and more diverse intrapreneurial teams.
Related: Innovation starts at home: Empowering employees to drive business forward
7. Provide tangible support
Support employees' ideas with the necessary resources – whether it's mentoring, funding or tools. Make sure they feel empowered and not burdened by bureaucracy.
8. Celebrate small victories
Highlight incremental successes to maintain momentum. Recognition of even modest achievements reinforces a the culture of innovation and encourages others to contribute.