The first is the solo phase in which the intrapreneur works alone. The second is the network phase in which ideas are shared with a few close friends and trusted customers. This evolves into the bootleg phase where the emerging team works unofficially during spare hours. Finally, there is the formal team phase, which requires delicate manage-ment of people and the mainline corporate structure. The presence or absence of 10 freedom factors determines how effective intrapreneurs can be in their corporate culture.
Reward systems discourage risk-taking and encourage failure avoidance.
They must be restructured to acknowledge the extraordinary contributions of the innovators. Firms should create a career path for intrapreneurs that allows the continual inception of new ventures without the financial penalties of lost promotions and with the increased freedom to act. The most fundamental measure of progress for an intrapreneur is the increasing freedom to use corporate resources to build new businesses for the corporation. It is a powerful motivator because it conveys a sense of ownership and guarantees freedom. It is advantageous to the company because it encourages frugality and allows the firm to bet on proven winners.