To Innovate Like a Startup, Make Decisions Like VCs Do

Extract from article by David Kidder and John Garaci in the Harvard Business Review

lean startup approach, we are told, can empower big companies to innovate rapidly and effectively in the face of continual disruption, potentially even transforming enterprises into centers of continual new growth. Responding to this promise, many companies have started putting these ideas to use: A recent study of 170 organizations with $1 billion or more in revenue found that over 82% are currently using a lean startup approach in some aspect of their business.

Yet for all of the resources that have gone into applying a lean approach, these organizations do not have much to show yet. Faster times to market, greater flexibility on the way there, and greater focus on the customer — common results of a successful lean implementation — are all positives. However, they hardly represent the transformation that has been promised with this new approach.

What is missing from this equation for growth? The model for creating new growth that we see in successful innovation hubs everywhere involves two sides: the entrepreneurial side and the venture side.

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