Practical sheet | REF: FIC1729 V1

How to set up and manage a budget adapted to an intrapreneurial approach?

Author: Marc EVANGELISTA

Publication date: November 10, 2021 | Lire en français

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5. Coping with cost-cutting programs

Companies regularly implement various cost-cutting programs, whether in SG&A or R&D spending. This is generally life in "exploration" mode. What should be the attitude towards exploration teams in such a situation?

Once again, it's a question of acting on the principle of acceptable losses. If your company feels that the level of its losses needs to be lowered, then you need to adjust your budget. The first step is to draw on your reserves. Imposing a similar budget cut on every intrapreneurial team would run counter to accountability.

But does this mean we have to protect them completely? Certainly not, but a different approach can help maintain a sense of belonging while contributing to the efforts required. For example, we could explain the situation to the incubation teams, explain the constraints imposed on "classic" organizations...

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