It’s time for internal auditors to become intrapreneurs

A common thread in business writing today is how technology, primarily artificial intelligence, is changing how business gets done. Opinions abound on how best to incorporate new technologies into existing processes and gain a competitive advantage. For example, McKinsey recently launched its Enterprise AI dialogue to get boardroom and C-suite leaders to think strategically about the opportunities and risks in the AI ecosystem.

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While much of this highbrow ruminating includes passing references to what this will mean for jobs, there has been limited analysis of how AI should reshape the way employees think about their work in the future. This is an oversight we cannot afford to make.

The Pew Research Center reports that worker sentiment toward AI skews negative; 52% are concerned about its use in the workplace, compared with only 29% who view it positively. I believe these survey results reflect the way employees traditionally view their jobs. Sadly, most see themselves as small cogs in a big machine and worry they could be easily replaced. This is rooted in the reality that most employees don’t concern themselves with how the business is run, which is ironic considering the business is their livelihood.

But just as AI promises to change how business is done, we need to ensure a corresponding mindset change from the employee’s perspective. We need “intrapreneurs.”

Defining the intrapreneurial mindset

In short, intrapreneurs are employees who have an entrepreneurial mindset: They think creatively, excel in problem-solving and embrace risk management. I believe such a mindset will be critical for the next generation of employees in general, and internal auditors specifically. A workforce filled with intrapreneurs will be synonymous with business success in the future, as these skills will enable employees to identify new opportunities, develop innovative solutions, and drive growth and positive change within the organization.

The concept of intrapreneurship dates back to 1978 with a white paper titled “Intra-Corporate Entrepreneurship” by Gifford Pinchot III and Elizabeth Pinchot. Since then, the concept has been examined and expounded on at various times, including Steve Jobs describing his MacIntosh team as intrapreneurs. 

I have long advocated for internal auditors to embrace an entrepreneurial mindset. First in my book, “Agents of Change: Internal Auditors in an Era of Disruption,” and again in the second edition, “Agents of Change: Internal Auditors in an Era of Permacrisis,” I wrote about the value of internal auditors developing business acumen:

“Generally speaking, individuals who possess business acumen are perceived to consistently exercise sound judgment and make decisions that result in favorable outcomes. They can assimilate information from an array of sources and use that new knowledge to propose sound, strategic alternatives to address issues and problems. They also are always looking ahead trying to foresee opportunities and threats, the better to develop strategies to remain one step ahead of the competition. Possibly most important, they have the ability to see across the many areas of expertise within a company, such as finance, research and development, marketing, and IT; understand how decisions affect each of these areas; and work toward coordinating efforts to ensure shared success.”

Core qualities every intrapreneur needs

To thrive in a workplace being redefined by AI and new advancements in technology, employees will need to cultivate a new set of human-centered capabilities that complement automation. The skills below represent the core qualities every intrapreneur needs:

• Creativity and innovation: The ability to generate new ideas and find creative solutions to business challenges, improve processes, or develop new products and services. 
• Problem-solving and critical thinking: A proactive approach to identifying problems, analyzing situations, and developing practical, effective solutions. 
• Risk management: The capacity to assess and manage calculated risks associated with innovation, and to be comfortable with uncertainty. 
• Leadership and influence: The ability to inspire and lead teams, build relationships, and persuade stakeholders to support new initiatives and visions. 
• Resilience: The determination to persist through challenges and obstacles, learn from failures, and adapt to change. 
• Strategic thinking and vision: The ability to understand the company’s strategic goals and to envision how new ideas can contribute to achieving them. 
• Communication: Effectively articulating ideas and their value to others and actively seeking feedback from peers and supervisors. 
• Resourcefulness: The skill of locating and utilizing an organization’s existing resources to bring ideas to life. 
• Proactivity and drive: A natural inclination to take initiative, challenge the status quo, and drive projects forward without constant direction. 

Lead the intrapreneurial revolution

I get excited at the prospect of a workforce filled with intrapreneurs and the value they can add to an organization. But we don’t have to rely on the next generation to reshape how employees approach their jobs. We can start building the intrapreneurial mindset today, and internal audit leaders are in an ideal position to lead the way.

The best internal auditors already possess many of the key characteristics described above, including understanding risk management, problem-solving and critical thinking, effective communication, and strategic thinking and vision. We must then focus on unleashing their creativity and innovation, leadership and drive.

Indeed, intrapreneurs are the agents of change I have long called for. As they say, a rose by any other name … .