People often ask me how to incentivize entrepreneurial behavior from within an established organization. My first answer is “stop killing it.” Leaders put so many barriers and shut doors in front of would-be internal entrepreneurs that just lifting a few barriers or leaving a few doors ajar would on their own create a momentous acceleration in their flow of innovation.
Over one billion people are on it. While its future is still uncertain, it is already impacting most businesses, transforming journalism, and raising broad societal issues in its wake.
Why do big companies change so slowly and die? They dramatically underestimate innovation velocity.
Innovation velocity is the speed and direction of growth that an innovation creates. Small disruptive organisations have very high innovation velocity and this is why they kill big slow incumbents.
I can do it in my sleep. Four years at Wharton, two at Columbia Business School, and a few more in investment banking have drilled into me the most broadly used tool that guides corporate decision-making: the financial projection.
We have this notion that innovators come up with a big idea and then sell it with passion and influence. We imagine Steve Jobs, who was known for having a “distortion field” around him. He could walk into a room and convince everyone that the iPhone was going to change the world and as a result, because everyone was moved to believing it, it did in fact change the world.
A parable tells of a bird that lived on a barren tree in a desert. Too fearful to find a better home, he lived a meager life. One day lightning struck the tree, which caught fire and forced the bird to flee. The bird then reached an oasis filled with water, food, and other birds as company.
If you consider ‘disruptive’ businesses with true transformative effects — think of Uber, Tesla, or AirBNB, for example — you’ll find they do the first, majorly important aspect of any business: they solve problems for the customer.
Corporate venturing models assume that the path to launching a business begins with writing a business case and then seeking funding. But this overlooks perhaps the most important source of capital: your customers.
Confucius, when asked about leadership, likened people to grass and the ruler to wind: whichever way the wind blows so will bend the grass.
This week, we convened innovation heads from places like Chubb Insurance, Estee Lauder and Macmillan and mixed them with a world-renowned innovation expert (Professor George Day from Wharton) and one of the leaders of GE’s Crotonville leadership training center (Bob Cancalosi). Over four hours, they teased apart our shared challenge: how to unlock innovativeness, entrepreneurship, and growth trapped inside organizations.