Intrapreneurship - A History of Corporate Entrepreneurship and the Lifecycle of Intrapreneurship

Intrapreneurship, which is sometimes referred toenough that by 1990, well-respected Graduate
as Corporate Entrepreneurship, is based on theProfessor Rosabeth Moss Kanter, of Harvard
concept of using entrepreneurial techniques withinUniversity School of Business, shared the point of
an organization (which can be a corporation,the importance of intrapreneurship in her
partnership, association, or even a non-profitbest-selling book - "When Giants Learn to Dance"
organization). Intrapreneur can be utilized to createin which she specifically points out that
a new service, product, division or subsidiary tointrapreneurial development in companies or
help the organization to add additional revenue andorganizations was a key factor in ensuring the
to be able to survive in tough times.survival of the company. While Dr. Kanter's overall
Intrapreneurship, and sometimes even growobservation is accurate it only tells part of the
faster and more profitable.story of the life cycle of various intrapreneurial
Some enlightened organizations allow anventures in today's world.
intrapreneur time freedom to pursue new ideasSometime intrapreneurship has only a limited life
for the organization. Many firms around the worldof successful contribution in a company's growth.
have created formal Intrapreneurship Programs.On particular example to tow short lived
To have a successful Intrapreneurship programsuccessful intrapreneurial ventures that saw they
the team must overcome the roadblocks ofdemise after a major merger, was United Artists.
formal organizational structure and a possibly aUnited Artists Entertainment (United Artists
slow moving organization bureaucracy. TheTheatre Circuit and United Artists Cable) at the
individual Intrapreneur, or Corporate Entrepreneur,time was World's Largest Theater Chain at that
learn how to successfully convince both middletime and one of the top Cable Television
management and senior management that theCompanies. TeleCommunications Inc. (the World's
new, "out of the box" idea has merit, market, andLargest Cable Television Company) purchase
would be both profitable and synergistic to the100% of UAE's Stock.
organization's basic mission.Because their was need to for more cash to
In order to be a successful intrapreneur it takes agrow TCI, they wanted UA/TCI Real Estate
unique set of skills beyond creativity. Thesubsidiary to structure and place a major
Intrapreneur must be including being willing to takecommercial real estate portfolio loan on "Wall
some risks at sharing and pushing an unique idea,Street" for United Artists. UA/TCI the Real Estate
having the perseverance to wait for seniorsubsidiary sold over $169 Million of surplus real
management's final approval to create and launchestate across the United States, at 143% of the
the product or service, and the drive to see itrecent MAI Appraised Values (in the down
through to fruition, no matter what.market of 1990).
Here is short review of the history ofAt United Artist/TeleCommunications Inc., their
Intrapreneurship and short overviews of "realintrapreneurial ventures were used as strategic
world" case studies. Corporate entrepreneurshipshort term weapon to accomplish a specific
or the popular term intrapreneurship is a valuablepurpose or meet a current. Some times the use
secret weapon over the last 40 years forof intrapreneurship is only used in one phase of a
success used by 3M, Anaconda-Ericsson, GE,businesses grow and development. Within United
Lockheed, Rubbermaid, Sony, Toyota, and manyArtists/TeleCommunications Inc. the environment
other major companies internationally. Haller wrotewas constantly changing and evolving with
his Master's Degree in Management Thesis, inmergers, acquisitions and divestitures.
1981, on the "real world" use of intrapreneurshipUnited Artists Entertainment had a 50% interest
techniques. This detailed quantitative analysis wasin an intrapreneurial Film Distribution Joint Venture,
a formal case study of Intrapreneurship Successwhich was headquartered in California. UAE's,
at PR1ME Computer Inc. from 1977 to 1980.United Artist Theatre Circuit arm was
PR1ME Computer Inc. grew from just a smallheadquartered in Woodbury, NY. Taurus
OTC listed firm to a $480 million annual sales firmEntertainment successfully distributed a number of
and to be the #1 performing stock on the NYSEmajor films for UA. Intrapreneurship worked
in four years.within United Artists in the creation and operation
The terms "intrapreneuring" and "intrapreneurship"of the successful captive film distribution Joint
and basic concepts of both intrapreneuring andVenture.
intrapreneurship existed in organizations, such asJust before the spin off of UATC,
the Lockheed "Skunk Works." for decades beforeTeleCommunications Inc., the Board of Director's
the management consultant Gifford Pinchot IIIordered the sale of UA/TCI's 50% interest in the
made it popular in his book "Intrapreneuring" whichTaurus Entertainment, United Artist's Film
was published in 1985.Distribution arm) to it's 50% partner, in a
The word "Intrapreneurship" was brought into thenegotiated private sale.
mainstream media by, Apple's Chairman, SteveAfter TCI took over 100% of the UAE stock, UA
Jobs. Job's popularized the term "intrapreneurship"TCI made the strategic decision that the existing
in his "Newsweek," article (in their September 30,captive UA Theater Construction Division be
1985 issue) in which he stated for the record,eliminated and UA/TCI use local General
"The Macintosh team was what is commonlyContractors to build UA Theaters and TCI Cable
known as intrapreneurship... a group of peoplebuildings. UAE/TCI would hire third party
going, in essence, back to the garage, but in acontractors and architects across the country.
large company."The intrapreneurial captive UA Theater
Futurist management author, John Naisbett notedConstruction Division was not capable of handing
that intrapreneurship concepts as a importantconstruction needs after the merger of UAE into
way for established businesses to find newTCI and expanded needs for nationwide
markets and new products in his best-sellingconstruction for all the new UA Theaters, UA
management book, "Re-Inventing theTheater Remodeling, and the new TCI Offices
Corporation."& TCI Head End Stations.
The intrapreneurship concept was established