18 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
In 1992, the American Heritage Dictionary ofcialized the popular use of
intrapreneur to mean, “A person within a large corporation who takes direct
responsibility for turning an idea into a protable nished product through
assertive risk-taking and innovation.” Intrapreneurship is now known as
practicing a corporate management style that integrates risk-taking and inno-
vation with reward and motivational techniques more traditionally associated
In 1994, Pinchot and Pinchot published their “Intraprise Manifesto,”
which is summarized next:
◾ Employees are treated with independence, dignity, and responsibility.
◾ Employees make up their own minds about what to do, limited only by
general rules and commitments.
◾ Employees have access to resources required by their ideas and are
◾ Employees have the authority to manage the resources of their business
units without interference.
◾ Employees are free to select their associations (e.g., peer support, coaches).
◾ Employees are permitted, and even rewarded, for taking qualied risks
and making mistakes.
Using the failed examples of Wang Computers, DEC, Polaroid, and
suggests that companies should encourage employees
to explore ideas rather than waiting until the company is in a bind. If an
idea looks protable, the company provides the innovator an opportunity
to become an intrapreneur. Intrapreneurs thus use their entrepreneurial
skills without personally incurring nancial risks associated with entrepre-
2.2.1 Kelly Johnson’s 14 Rules of Skunk Works
Johnson earned recognition for his contributions to noteworthy aircraft
designs including the Lockheed U-2, SR-71 Blackbird spy planes, P-38
Lightning, P-80 Shooting Star, and the F-104 Starghter. Johnson’s famed
“down-to-brass-tacks” management style was summed up by his motto, “Be
quick, be quiet, and be on time.” He ran Lockheed’s Skunk Works using
“Kelly’s 14 Rules.” (Note: Skunk Works is a term used to describe keeping a
group of intrapreneurs separate from the rest of the rm.)