Want to create a virtuous cycle of shared value? Discover how Intrapreneurial Opening Of Capital (IOOC) can help both employers and employees unlock new ways to create and share value within companies
IOOC is ready to go, but nobody's jumping on board yet
Introduction:
Opening up capital is now recognized as an effective way to encourage employees to make long-term commitments and maximize their involvement in the company. However, it can be challenging for businesses and their employees to understand all the options available to them. This landscape has evolved significantly in recent years, thanks to more flexible and advantageous tax and administrative measures. In this article, we invite you to explore a lesser-known aspect: intrapreneurial capital opening.
For Companies: Creating and Sharing Value as a Talent Retention Lever
To create more value, you need to share it!
A common challenge our clients face is staff turnover, often accompanied by a loss of knowledge. Many companies struggle to retain talent and motivate them for the long term.
At Inflex’On, we support companies in organic growth, restructuring, mergers and acquisitions, and succession planning. In each of these cases, value creation is at the heart of our concerns. One particularly powerful approach we have identified is intrapreneurship, which is the development of entrepreneurial activities within the company itself.
Intrapreneurship goes beyond governance and innovation, but fundamentally relies on the redistribution of collectively created value. The goal is to create an ecosystem where employees generate value while having the ability to capture it, like an entrepreneur, without leaving the company.
Intrapreneurial Capital Opening Alternatives:
There are various solutions to implement this capital opening, the most well-known being:
- Shares plans (free shares, stock options, warrants, convertible loans)
- Stock subscription or purchase options (stock options)
- Phantom shares or synthetic shares
- Super bonuses
Intrapreneurial capital opening involves several steps:
- Understanding the mechanisms and implications of each alternative
- Choosing the alternative best suited to your company
- Developing a plan with experts like Inflex’On to evaluate the advantages and disadvantages of each solution
- Communicating, engaging, and maintaining the plan with employees over the long term
Note : Check in with employees before moving to step 3. If they're not on board, consider a workshop or even delaying the initiative.
For Employees: Capitalizing on Time, Savings, and Career
Employees are increasingly wondering how they can make their time, savings, and career more profitable. Entrepreneurship is often presented as an attractive solution, with many success stories showcased on social media. While this can offer significant personal and economic rewards, it also carries high risks in terms of time, money, and job security.
Another option is investing in the stock market, but this offers little control over the valuation of securities.
Intrapreneurship, then, presents itself as a hybrid solution: it allows employees to invest their time and potentially their money in internal projects. These can have a direct impact on the company's valuation, while offering an opportunity to share economic and personal benefits. It is a model that allows employees to benefit from the advantages of entrepreneurship without jeopardizing their personal assets or career.
Famous examples like the creation of the Post-it at 3M or the PlayStation at Sony show the potential of intrapreneurship to encourage innovation within companies.
Bridging talent retention and effort capitalization
Conclusion:
Intrapreneurial capital opening is a powerful lever for creating and sharing value. It sits at the crossroads of talent retention strategies for companies and capitalizing on efforts for employees. The entire ecosystem benefits, with a fair distribution of the value created.
This has an extremely beneficial impact on the entire ecosystem, as everything is set up to create more value and ensure that every stakeholder benefits equitably.
Welcome to Intrapreneurial Opening Of Capital !
