Talent Magnet: Enticing Entrepreneurs into Your Company

Imagine trying to drive meaningful innovation within your company without entrepreneurial talent on board. It would be like doing the same thing over and over again, yet expecting different results — the very definition of insanity according to Albert Einstein.

When it comes to growth and innovation, entrepreneurs are crucial at both the micro and the macro level. That’s right, both their company and their country need them to innovate.

Hopefully, your company is already blessed to count among its ranks a number of former startup founders, serial entrepreneurs, ex-Venture Capitalists, former incubator managers, and Growth Hackers.

Or at the very least, a handful of rogue Product Owners, a Guerrilla Marketing guru or two, or —worst case scenario— a few veteran cold callers.

Entrepreneurially minded people are incredibly important to the present and future health of your company.

They identify opportunities faster and seize them.

They spark creativity and fresh perspectives.

They bring agility and adaptability skills.

They challenge the status quo.

They inspire others.

(And, if you find a good one…)

They’re fun.

However, two questions come to mind:

1. Why would a true entrepreneur join a large, established company?
2. How can such a company attract and retain entrepreneurial talent?

The main focus of this article is on the second question, but let me first address the first question.

A few years ago, my team and I were interviewing applicants for a new Innovation Manager position. Our top candidate was in the process of winding down his startup and he was, ostensibly, very keen to join our company. “But why,” more than one skeptic asked, “would a true entrepreneur want to join us? Surely he won’t stick around for long.”

But having been in that same position myself a few years prior —winding down a startup and joining a large company— I saw 4 very good (and sincere) reasons why one might want to make such a transition:

1. Access to resources: Large companies offer substantial resources and broad networks, helping internal founders build their ideas on a greater scale.

2. Learning opportunities: Joining a larger organisation exposes you to a wealth of knowledge, expertise, and business insights. (Most of what I know about banking, I learnt working with bankers.)

3. Financial stability: Large companies provide a degree of predictability, so founders-turned-employees can focus on performing innovation magic without panicking about their financial situation on a daily basis.

4. Broader impact: Large companies' extensive reach gives you the chance to create positive change and influence an industry from the inside.?

But once we’ve accepted that we need to attract entrepreneurial talent into our organisations and, crucially, retain them over the longer term, how do we go about designing a framework that will achieve these objectives?

I believe it starts with (I.) bringing flexibility to our organisational structure. But we must also (II.) put in place meaningful incentives and (III.) allow our people to continuously re-invent themselves.

I. A Flexible Org Structure

One of the major concerns for entrepreneurs joining large organisations is the fear of being stifled by bureaucratic hierarchies and rigid structures. But if you’re on the inside of such an organisation, you can address these concerns by implementing the following solutions:

a. Smash the silos and collaborate

?? Establish a company-wide culture of collaboration, empowering employees from different departments to work together on projects. It can help to implement an internal incubator, such as Google's Area 120 , where cross-functional teams can collaborate on experimental projects, fostering a culture of innovation and cooperation.

A few weeks ago, we looked at how Sales and Innovation teams in particular can learn from each other .

b. Push an experimentation mindset

?? Encourage risk-taking and learning from failure by celebrating and rewarding employees who dare to try. Tata Group's "Dare to Try" program recognises and rewards employees for their risk-taking efforts, promoting a culture that values learning from setbacks.

At ABN AMRO we also created “DARE” a few years ago, which was both an innovation methodology and a new mindset for the company .

c. Delegate decision-making for investments

?? Empower your employees by delegating decision-making authority on investments in new projects, giving them a sense of ownership and autonomy. This approach forces entrepreneurial thinking (and by the way speeds up the innovation process).

Spotify pioneered this model with their Squads : small, autonomous teams make investment decisions within their domain, promoting a more agile and innovative environment. (The Squad model itself has received its share of criticism, though this has more to do with its implementation within a company's culture; the model is nevertheless a valuable learning tool.)

II. Meaningful Incentives

To attract and retain entrepreneurial talent, companies like yours also need to offer meaningful incentives that include and go beyond financial compensation. Some creative solutions include:

a. Innovation-driven bonus systems

?? Encourage employees company-wide to spend a portion of their work time on independent projects and make this a cornerstone of the internal culture of innovation. 3M's "15% Rule" allows employees to dedicate 15% of their work time to independent projects. We have this rule to thank for our industry's favourite stationery item: the Post-it Note!

Ideally your company can offer real rewards, promotions and financial incentives for bringing innovative ideas to life. I believe there is much to be gained when innovation employees have a stake in the company's innovation portfolio (though equity stakes in individual projects is debatable).

b. No shortage of internal resources for new ideas

?? Provide employees with resources, tools, and a small budget to experiment with their own innovative ideas, with no strings or career risk attached.

Adobe's Kickbox programme encourages a sense of ownership and commitment to creating novel solutions. The concept has been copied by thousands of companies, as it empowers employees to test out potentially innovative ideas without having to battle their way through corporate bureaucracy.

c. Sabbaticals for personal projects

?? Take inspiration from the minority of companies that offer paid sabbaticals for employees to work on projects that align with their passions and the company's values.

Patagonia's two-month paid sabbatical program for environmental projects gives employees this opportunity and it demonstrates a commitment to social responsibility and employee development.

d. Acceptance (and encouragement) of side gigs

?? Assuming no conflict of interest with their day job, recognise the value that side gigs can bring to your colleague's personal and professional growth, and support them in their entrepreneurial endeavours.

Encouraging employees to pursue side gigs / side hustles can drive creativity, innovation, and entrepreneurial thinking, which in turn can enrich their work within the company. Many companies unfortunately have strict policies against this . Whereas others like LinkedIn openly support their employees in pursuing side gigs, acknowledging the benefits of entrepreneurial skills and behaviours.

It’s also a matter of credibility: How can you claim to attract entrepreneurs but punish them for behaving like entrepreneurs?

III. Continuous Re-invention

For entrepreneurial types to thrive in a corporate environment, companies have no choice but to invest in their continuous development. These are naturally curious people who are eternally dissatisfied with the status quo. Some creative solutions to stimulate them and support their growth are:

a. Unconventional learning resources

?? Encourage employees to attend conferences outside of the usual industry circuit, providing access to cutting-edge ideas and fostering a culture of continuous learning.

For example, if you work in automobile manufacturing, encourage them to visit electronics fairs and design conferences, not just motor shows and car industry events.

b. Personalised development plans

?? Start by recognising that entrepreneurial individuals have unique aspirations, strengths, and learning preferences. Break free from the standard HR templates and work with them to create personalised development plans.

You can combine formal training, mentoring, reverse mentoring, self-directed learning opportunities, external partnerships (see below), among others. This tailored approach encourages continuous growth and allows entrepreneurial talent to thrive. Companies like Amazon have implemented individualised development plans, fostering employee engagement and commitment to innovation.

c. External partnerships

?? Encourage entrepreneurial talent to engage in collaborations with external partners, such as startups, research institutions, industry experts, specialised consultants and other big companies.

These partnerships can provide valuable insights, expand their networks, and stretch their innovative thinking. For example, BMW's i Ventures facilitates collaboration between its employees and external startups , enabling employees to absorb the entrepreneurial spirit of these ventures while driving innovation within the company.

Especially for former startup entrepreneurs or former VCs within a large company, such interactions bring a sense of familiarity and can be hugely rewarding.

Conclusion

So the good news is that entrepreneurially minded people do want to join big companies. And they frequently do so successfully. (The candidate I mentioned earlier made an immediate impact and did a great job with us.)

But they won’t rush to join a mediocre company. And they certainly won’t stick around at a company that doesn’t appreciate their skills and fails to provide the right environment for their unique personality traits.

By creating a more flexible organisational structure, offering meaningful incentives, and supporting their continuous development, large companies can successfully attract and retain entrepreneurial talent.

The better we are able to integrate entrepreneurs into our innovation cultures and operations, the more our companies can drive meaningful innovation, adapt to change, and achieve long-term success in today's rollercoaster business environment.