Employees in this climate are likely to review their priorities – is it worth me breaking my back and working so long, when I could easily be next?

This is a time when large corporates should learn from the lessons that small business can share. I can personally recount a time in my life when my previous entrepreneurial venture had its days numbered, that my staff gave me 150%. Numerous stories exist, movies have been filmed of the super-human effort of all employees, owners, suppliers alike to save a fighting cause. Far from Hollywood, however, sometimes the ship does sink in the end. Despite the immense efforts, new ideas tried, products sold it sometimes is not enough.

As the person who lost the most in that venture (3 years of pain, tears and not to mention endless pots of money raised on re-mortgages and credit cards), I take the memory of my staff working round the clock to try and redress the situation. At one time, one of my staff did not want to leave the premises to attend to her mother who had just been hospitalised with heart issues because she felt guilty of leaving – she had developed such a strong sense of duty to “do her bit” that she did not want to leave. I had to gently push her out the door….

I was shocked, and, at the same time moved. What had I done to deserve such loyalty, such care, so that my employees were so devoted to and attached to the business?

I had done just that: I had given them faith and something to believe in. I had given them the belief that they could really be instructive in turning things around. I gave them freedom to try new things – at the end of the day, it would not have hurt to try, would it? I had also been very open with them about the situation. I did not choose to hide behind the veil of hope. I kept them informed of the status quo, and that we were running on empty. Money was tight (that is what ultimately killed the business), so we could not spend a penny more. And perhaps it was this combination of events that really made the difference to their engagement.

So, here is a note to large businesses out there. As you are cutting R and D budgets (according to the Financial Times, in 2008 the total R&D expenditures of S&P 500 companies, based on the approximately 200 companies that report them quarterly, declined 13 per cent – from a total of $43.1bn in the fourth quarter of 2007 to $37.4bn in the third quarter of 2008), consider the following lessons from a faltering business which experience the ultimate engagement levels from its employees:

 
Give faith

Give each one of your employees the knowledge that they can make each make a difference to the business’ future, that they have been selected and trained because they have the capability to make things happen

Empower

Enable employees to take their own decisions, remind them that they are accountable for them. When people are treated like adults, they behave like adults (it is only in an environment reminiscent of a playground that they behave like children)

Enable freedom

Give them the wings to try what they think is the best approach to solving a problem without fear of reprisal nor criticism

Be transparent

Openly communicate the challenges and state what may happen if there is no turn-around. Honesty will be appreciated and results will ensue

Foster creativity

Your employees are on the “shop floor”. They know what needs fixing and can suggest ways that would make a difference to them and the business. Support avenues of creativity whereby departments collaborate on resolving processes, communication blockages or new customer propositions. Listen to them.

These days no business large or small is immune to the challenges of the credit crunch. However increasing employee morale and achieving workforce engagement to as close as 100% as possible can really make the difference when the chips are down. Act now, before it is too late.

However, we would argue that this is the time for companies to look at disrupting the market, identifying ways to win market share when the competition may be doing its share of navel-gazing.

B-net has recently published a few excellent stories for inspiration on how to Unleash your Inner Intrapreneur. When setting off on this path to change, there are a number of key ingredients:

Imagine this were your business, you were setting up from scratch. So you need to have a clear idea of:

• The customers you are servicing
• Why they would buy your product and not your competition’s
• What the business model is and revenue streams
• What is the investment to achieve the desired revenues required

Whilst you are doing this, it is critical to unleash your personal PR plan:

• Build a network of sponsors: do not be afraid to ask for advice before asking for resources
• Build a team of enthusiastic volunteers

All entrepreneurs, me included, have gone down the “world domination” route, seeing our product or service everywhere, knowing our offering is the next best thing since sliced bread. What happens, though, when you express too much, too soon? What happened the last time someone said to you “You have to go see this film!” It did not live up to your expectations? Correct?

Influence with humility

We invite you to consider asking important sponsors for their advice rather than go in with the sales pitch. Let them buy into the process by becoming your advisors or mentors. Seek their experience to guide you, particularly through the political minefield of the organisation.

Keep going and learn, fast

Be prepared to be rebuffed, as not everyone will see your vision in the way you see it. You will always face the “not invented here” or “this is not the way we do things” argumentation. If someone did not embrace your vision, consider why. Rather than reject them, ask yourself what you could have done differently, or said differently, to have won them over.

Be creative, consider alternatives

It is not easy to express the importance of being flexible, being creative about your path. I know from very painful experience that when your mind is set on something, it is hard to consider other alternatives to your plan. I urge you to take them on board.

In my case of entrepreneurial folly, I needed, wanted, desired a retail outlet in London’s most expensive area, Mayfair. A retail space that was a reflection of my brand and offered a controlled, multi-sensory experience. In my mind, there were definite ways to meet the cash-flow required to sustain that investment. However, I learnt the hard way that projections are but numbers. They are not reality. I now wished I had had someone to reign me in and advise me of alternatives. Perhaps there were those critics around me, but perhaps I chose not to listen. When I had to declare the business voluntarily insolvent and practically lost everything I owned, I realised where my shortfalls were.

So, for budding intrapreneurs, innovating in the corporate world is challenging, as you do not have free reign. But you do have those around you who can help you by modifying, revisiting and reviewing your plans, as well as building your network of supporters and sponsors. Take it from a risk-taker: it is better to move cautiously than too quickly. In the first instance you have time to assess your developments; in the latter, you are over the edge quickly and then it is too late to turn around.

This is a time when large corporates should learn from the lessons that small business can share. I can personally recount a time in my life when my previous entrepreneurial venture had its days numbered, that my staff gave me 150%. Numerous stories exist, movies have been filmed of the super-human effort of all employees, owners, suppliers alike to save a fighting cause. Far from Hollywood, however, sometimes the ship does sink in the end. Despite the immense efforts, new ideas tried, products sold it sometimes is not enough.

As the person who lost the most in that venture (3 years of pain, tears and not to mention endless pots of money raised on re-mortgages and credit cards), I take the memory of my staff working round the clock to try and redress the situation. At one time, one of my staff did not want to leave the premises to attend to her mother who had just been hospitalised with heart issues because she felt guilty of leaving – she had developed such a strong sense of duty to “do her bit” that she did not want to leave. I had to gently push her out the door….

I was shocked, and, at the same time moved. What had I done to deserve such loyalty, such care, so that my employees were so devoted to and attached to the business?

I had done just that: I had given them faith and something to believe in. I had given them the belief that they could really be instructive in turning things around. I gave them freedom to try new things – at the end of the day, it would not have hurt to try, would it? I had also been very open with them about the situation. I did not choose to hide behind the veil of hope. I kept them informed of the status quo, and that we were running on empty. Money was tight (that is what ultimately killed the business), so we could not spend a penny more. And perhaps it was this combination of events that really made the difference.

So, here is a note to large businesses out there. As you are cutting R and D budgets (according to the Financial Times, in 2008 the total R&D expenditures of S&P 500 companies, based on the approximately 200 companies that report them quarterly, declined 13 per cent – from a total of $43.1bn in the fourth quarter of 2007 to $37.4bn in the third quarter of 2008), consider the following lessons from a faltering business which experience the ultimate engagement levels from its employees:

• Give faith: give each one of your employees the knowledge that they can make each make a difference to the business’ future, that they have been selected and trained because they have the capability to make things happen
• Empower: enable them to take their own decisions, remind them that they are accountable for them. When people are treated like adults, they behave like adults (it is only in an environment reminiscent of a playground that they behave like children)
• Enable freedom: give them the wings to try what they think is the best approach to solving a problem without fear of reprisal nor criticism
• Be transparent: openly communicate the challenges and state what may happen if there is no turn-around. Honesty will be appreciated and results will ensue
• Foster creativity: your employees are on the “shop floor”. They know what needs fixing and can suggest ways that would make a difference to them and the business. Support avenues of creativity whereby departments collaborate on resolving processes, communication blockages or new customer propositions. Listen to them.

These days no business large or small is immune to the challenges of the credit crunch. However increasing employee morale and achieving workforce engagement to as close as 100% as possible can really make the difference when the chips are down. Act now, before it is too late.