Look around your company. Are you surrounded by “entrepreneurs”? Is your team comprised of people who take ownership of any project or task that comes across their desk or inbox? Do they embrace challenges, possess the process, and take responsibility – for successes and failures alike?

Some may come away thinking that “corporate entrepreneur” and “employee” are contradictory. They believe that “entrepreneurs” take the ultimate risk – ditching the security of the day-job, as it were, and facing the personal, financial and psychological challenges of business ownership.

That’s one definition. Another would be “corporate entrepreneurship.” This realm is inhabited by people who – though they receive a paycheck signed by someone else – see the organization (or at least their small domain within it) as their turf. This is the most valued of employee.

Innovation and corporate entrepreneurship are inextricably intertwined and fuel well-reasoned risk taking. Especially in large organizations traditionally risk averse, innovation drives leaders and teams to become more corporate enterprising. This process encourages growth from within, which helps set the stage for leadership continuity.

As a business leader, you must build an environment that tolerates such entrepreneurial thinking. It’s the leader’s job to encourage such entrepreneurial thinking – to exude and build trust, to embrace the risk to fail, and to inspire people to take well-reasoned chances.

In the book, “Grow From Within: Mastering Corporate Entrepreneurship,” co-author Robert Wolcott discusses how companies can enable and support “internal entrepreneurs” to achieve innovation-led growth. Such entrepreneurial thinking drove IBM to realize some $15 billion in new annual revenues from 22 Emerging Business Opportunities, and Whirlpool to realize $4 billion in revenues from companywide innovation efforts – “despite global recession and the steep drop in housing markets,” notes one review.

The authors reveal four models of corporate entrepreneurship laid out on an axis of organizational ownership (on the horizontal) and Resource Authority (on the vertical). Each possesses unique and specific characteristics. The Opportunist (bottom left), takes no deliberate approach to entrepreneurship; the Advocate (bottom right) evangelizes for it; the Enabler (upper left) provides funding and executive attention, and the Producer (upper right) establishes full service groups with mandates for corporate entrepreneurship

Applying Robert’s Rules of Innovation , the Advocate, Enabler and Producer can thrive in this environment for each has corporate support. They have executive support, from Inspiration  to Net Reward, needed for innovation borne of corporate entrepreneurship to thrive.

Yet for corporate entrepreneurship to thrive, it needs more. It requires the structure and culture. Assuming the right people are in place, leadership must provide divisional and business unit autonomy. How can you lead your organization to a climate of corporate entrepreneurship?

-          Like Innovation, Define what “entrepreneurship” means. The phrase “Corporate Entrepreneurship” must mean the same thing organization-wide. Moreover, leadership must delineate objectives and point the way as part of its vision and mission.

-          Incubate and nurture. Corporate entrepreneurship doesn’t flourish without guidance. It starts small – and grows through encouragement. Begin with small projects heavily supported by leadership. Those success stories should be heavily communicated as such. They then will become the lead project to pull the rest of the group or other entrepreneurial-minded teams along.

-          Create a reward system. Risk and reward, when properly aligned, can foster accountability. Rewards – whether in the form of praise from immediate managers, attention from leadership, or the chance to lead future projects or task forces – are powerful motivators. They also can help solidify the creation of stronger corporate entrepreneurs.

So look around your organization. Are you surrounded by employees – or entrepreneurs? The difference may be not only the way they think, but they way they’re being nurtured.

By Robert Brands with Jeff Zbar

Robert Brands is the founder of InnovationCoach.com, and the author of “Robert’s Rules of Innovation”: A 10-Step Program for Corporate Survival, with Martin Kleinman, published March, 2010 by Wiley (www.robertsrulesofinnovation.com).

Six thousand times. Do you have that kind of innovative stamina?

It’s been said that Risk + Experimentation (+ Failure) = Improved Environment for Innovation. Put another way, Innovation = Creativity x Risk Taking.

Innovation is an experiment of sorts. It requires a culture of risk, opportunity and challenge. Moreover, for an organization to benefit from innovation, leaders and team members alike must welcome – and grow from – failure.

Rather than view failure as inherently bad, successful innovation requires that executives and teams commit to learning from each experiment gone bad — and incorporate those teachings into the next endeavor.

The successes and failures borne of innovation experimentation perpetuate innovation. When strategies are emerging, innovators test their hypotheses and gather information to continue forward with their ideas. Whether the innovation is a consumer product, a software application, or an internal process for an existing business enterprise or workflow strategy, the question remains: How will the idea resonate with the target audience or user? What costs are reasonable? Can the audience (consumers, manufacturers, employees) be convinced to shift well-established habits to embrace The New?

Because of a high failure rate, organizations pursuing the practice of Innovation must have a tolerance for failure. Not every idea will win. But each failure must be perceived as valuable in the trial-and-error process as a team seeks improvement. Tolerance for failure must be encouraged, as well as enthusiasm for risk-taking. Without risk, there can be no reward.

To create a culture of innovation, organizations should:

- Encourage well-reasoned risk-taking. The pursuit of innovation isn’t some fool-hardy flight of fancy. Encourage — or insist upon — a plan to be presented first, to ensure understanding and buy-in across the affected organization. Know your tolerance for risk and failure in the pursuit of innovation.

- Test. True innovation requires thorough testing in pursuit of success. Testing, measurement, and an accounting of what’s been learned — even in failure — brings measurable outcomes from successes and failures alike.

- Trust. Do you – as a CEO or team leader – trust your people to pursue new ideas on behalf of the company? Build a culture of trust in the individual’s pursuits — so long as safety-measures are in place to safe guard against failure damaging the organization.

Most of all, avoid letting a failed concept kill your team’s motivation. Every idea should be given positive acknowledgment, every failure should be studied for “what went wrong,” and every success should receive appropriate reward. By providing your team with a culture of Innovation, their risk-taking abilities will improve. And, as was the case with Mr. Edison, they eventually will see the light borne from their successful innovations.

Is the “product” actually a product? Or can it be a process? Is it a mandate from the C Suite? Or can it be a suggestion from the factory floor, the retail showroom, the Idea Box or a customer tip?

How wide is your idea funnel? And how do you treat ideas once they land in the organization’s “idea hopper”? (see the blog post on “Innovation and Idea Management” to discover how to handle in-bound ideas).

Answer these questions, and you’ve placed your finger on the pulse of how your organization embraces new product development .

NPD best blossoms in that place where creativity commingles with structure – where fresh thinking is fostered in a nursery of structured liberation. Think of ideas as if they were offspring: They should be free to roam and explore, but they need fences – structure – in their lives to ensure safe maturation in a controlled environment.

The same is true for NPD – regardless of whether products are widgets for sale or processes envisioned to improve the organization. For the concepts of “creative” and “structured” are not mutually exclusive. Creativity is the thinking that goes behind the ideation of a new product. Structure helps define and determine the vetting process that NPD must go through.

Keep in mind that each step of this entire process has distinct “sub-steps,” if you will, that must be accomplished even before a Go / No-Go decision can be made. These often are done together – and simultaneously. This vetting and completed steps will than determine which products pass the Go / No-Go decision – regardless of the source or even the potential “profitability” of any new product.

These are important distinctions. When creating a foundational NPD process, all ideas should be welcomed from all sources – from the customer service rep to the C-level exec. No short-shrift or free pass here. If the structured vetting process, one established by the Chief Idea Officer and his/her team, gives a Thumbs-Down to a new idea, the source should not spin that determination.

Regardless of whether a product is seen as a revenue source, or just an internal concept or process, that, too, should have little impact on a product’s viability or survivability in the organization. Good “products” don’t have to result in revenues; they can enhance processes, that in turn, can boost profitability.

As you’re pondering your NPD capabilities, consider whether your pipeline accommodate simultaneous multiple product development streams? A new, physical product for sale should not force a process-focused product to be shelved. This level of scalability ensures a wide “innovation highway” – one that is lean, adaptive and flexible, and can handle various products at the same time.

Finally, is your organization prepared to measure the results – not of the NP, but of the process itself? Do you have a system in place to gather, measure and share both the success and the stumbling blocks? Are you prepared to ask yourself, how did the process work?

The truth is, future success can be closely tied into past accomplishments – if you’re willing to ask the right questions, create the right environment, and learn along the way.

For more ideas read “Roberts Rules of Innovation” (Wiley) available in March 2010 or visit www.InnovationCoach.com

Six thousand times. Do you have that kind of innovative stamina?

It’s been said that Risk + Experimentation (+ Failure) = Improved Environment for Innovation. Put another way, Innovation = Creativity x Risk Taking.

Innovation is an experiment of sorts. It requires a culture of risk, opportunity and challenge. Moreover, for an organization to benefit from innovation, leaders and team members alike must welcome – and grow from – failure.

Rather than view failure as inherently bad, successful innovation requires that executives and teams commit to learning from each experiment gone bad — and incorporate those teachings into the next endeavor.

The successes and failures borne of innovation experimentation perpetuate innovation. When strategies are emerging, innovators test their hypotheses and gather information to continue forward with their ideas. Whether the innovation is a consumer product, a software application, or an internal process for an existing business enterprise or workflow strategy, the question remains: How will the idea resonate with the target audience or user? What costs are reasonable? Can the audience (consumers, manufacturers, employees) be convinced to shift well-established habits to embrace The New?

Because of a high failure rate, organizations pursuing the practice of Innovation must have a tolerance for failure. Not every idea will win. But each failure must be perceived as valuable in the trial-and-error process as a team seeks improvement. Tolerance for failure must be encouraged, as well as enthusiasm for risk-taking. Without risk, there can be no reward.

To create a culture of innovation, organizations should:

- Encourage well-reasoned risk-taking. The pursuit of innovation isn’t some fool-hardy flight of fancy. Encourage — or insist upon — a plan to be presented first, to ensure understanding and buy-in across the affected organization. Know your tolerance for risk and failure in the pursuit of innovation.

- Test. True innovation requires thorough testing in pursuit of success. Testing, measurement, and an accounting of what’s been learned — even in failure — brings measurable outcomes from successes and failures alike.

- Trust. Do you – as a CEO or team leader – trust your people to pursue new ideas on behalf of the company? Build a culture of trust in the individual’s pursuits — so long as safety-measures are in place to safe guard against failure damaging the organization.

Most of all, avoid letting a failed concept kill your team’s motivation. Every idea should be given positive acknowledgment, every failure should be studied for “what went wrong,” and every success should receive appropriate reward. By providing your team with a culture of Innovation, their risk-taking abilities will improve. And, as was the case with Mr. Edison, they eventually will see the light borne from their successful innovations.