The Founder and CEO of Massaro Consulting, an IT Management Consulting firm, discusses the concept of intrapreneurship in organizations. Intrapreneurs are individuals within a company who harness their entrepreneurial spirit to drive innovation and growth from within. These daring dreamers turn visionary ideas into profitable realities using the resources and security of their existing employer. By leveraging the capabilities of the organization, they transform “what-ifs” into “what’s next.”
Cost-center departments are traditionally seen as purely expense-driven with no revenue generation potential. However, intrapreneurs challenge this notion by turning cost centers into profit centers. A Forbes article illustrates this concept using the example of Led Zeppelin’s tour support crew, who not only saved costs but also generated revenue through their well-organized operations. This shift highlights how intrapreneurs can drive profitability within organizations.
In a recent dinner event with advanced CIOs and CISOs, the conversation revolved around turning IT from a cost center to a profit center. All executives at the table were identified as intrapreneurs who constantly sought ways to enhance internal operations to increase either the top line or the bottom line. The CEO of Massaro Consulting outlines five key ingredients for intrapreneurship in managing cost-center operations, including achieving cost savings through synergies, collaborating with revenue and strategy leaders, managing risks, innovating, and wearing multiple hats.
Intrapreneurial leaders in traditionally cost-center functions have a unique perspective on streamlining processes, reducing redundancies, and driving operational efficiencies within the organization. By collaborating with revenue-focused departments and strategic leaders, cost-center executives can contribute to top-line growth and overall profitability. Additionally, managing risk proactively, embracing innovation, and taking on additional responsibilities can help intrapreneurs transform their departments into profit centers.
The author emphasizes that intrapreneurship is a state of mind that requires individuals to be willing to take risks, seek opportunities for growth, and continually innovate. By adopting a proactive approach to managing challenges and seeking out new ways to drive value within the organization, intrapreneurial leaders can successfully transition their cost-center operations into profit centers. This shift not only benefits the organization financially but also fosters a culture of collaboration, innovation, and continuous improvement.
