Reinventing Work: How Established Companies Innovate to Combat the Rise of the Startup

CreateReason.com @CreateReason
Reinventing Work
Max Farrell / Create Reason

@CreateReasonCreateReason.com
Max Farrell
@MaxOnTheTrack
My story:
Startups -‐> Community -‐> Companies

Focus:
-‐Overview of corporate innovation
-‐Share frameworks popularized in large
companies
-‐Practical tips to get started internally

My goal today:
To help you all thrive as the current and
future leaders of your companies

There’s a shift underway:
a massive change
in how companies build,
how teams work together,
and how individuals execute

We are in the middle of a work
(r)evolution

Millennials in the workplace
Freelancers
Startups
Disengagement
Trends

70%
-‐Gallup State of Work 2013

51%
-‐Job Seeker Nation Study

$550B
-‐Gallup

These are crucial moments
for every industry

We are going through the
fastest evolution of how we
work.

Why we do what we do is
important now more than ever

Our people are the catalyst

The secret to engaging all employees
Treating people like people

Autonomy
Mastery
Purpose

So how can we start to apply this
to our companies?

Innovation is a great starting point

Innovation:
Create new value for new needs
OR add value to exisKng needs

Two types of innovation

Continuous

Continuous
“The ability to combine operational
effectiveness and strategic flexibility”

Disruptive

Disruptive
“Where good ideas seem like bad ideas”
-‐Ben Horowitz

by Ideo
As with
anything,
there are
limitations

Some companies didn’t innovate

“That will never work”

Companies don’t “own” markets,
we merely rent space in them

“It is not the strongest of the species that survive, nor the
most intelligent, but the one that is most responsive to
change.”
—Charles Darwin

Some companies are actively
rethinking…

Then there are some that
innovation slip away...

lost the founders of

found ways to
work with this

Enter the internal entrepreneur
or “intrapreneur”
-‐voccoli.com

Intrapreneurs:
Adapt, integrate and reconfigure
organizational skills and resources
to tackle changing environments

Established companies are seen as
the masters of process, efficiency
and stability

BUT, with the opportunity to play
the startup game on easy mode
Unfair advantages:
Brand, Talent, Resources, Capital

The biggest barrier to innovation?
Education.

The Frameworks

Lean Startup

Steve Blank
“A startup is a
temporary
organization formed
to search for a
repeatable and
scalable business
model.”

Eric Ries
“A startup is a human
institution designed
to deliver a new
product or service
under conditions of
extreme
uncertainty.”

Lean Startup
in a nutshell

Ideas
Data
BuildLearn
Product
Measure
Build
Measure
Learn

Customer Development

Horizon 1 -‐ 60% / 1-‐3yrs
Horizon 2 -‐ 30% / 3-‐6 yrs
Horizon 3 -‐ 10% / 7-‐10 yrs
Horizon Time/ Resource
used
Products Return Timeline
1 60% ExisKng product /
exisKng customers
1-‐3 years
2 30% Existing product /
new market OR new
product / existing
market
3-‐6 years
3 10% New product / new
market
7-‐10 years

Create a testing culture
(embrace experimentation)

Zappos
“The Wizard of Oz”

AirBnb example:
experimented on
Craiglist

Stripe: landing page

Dropbox: showed video

So how can a company start to innovate?

Things needed:
Senior leader buy-‐in
Communication
Capacity
Autonomy

Start with why

Identify your company’s “secrets”

There has to be a person, a process or a
culture that encourages innovative ideas
-‐Ben Horowitz
on corporate innovation

Create metrics that maeer:
•AcKonable -‐ with clear cause & eﬀect
•Accessible -‐ easily understood
•Auditable -‐ proves true & tells story

Identify the internal champion/
executive decision maker

Yes and… // Yes if…

Embrace experimentation

Run innovation experiences

Put together a cross-‐functional
strategy / innovation team

Final Thoughts

Our industries are changing rapidly.
We have an opportunity to play a large
role in that innovation.

Our people are our most important
asset.
We have to continue approaching
employee engagement in new ways to
empower our talent to thrive.

Innovation isn’t just for the startup.
All of our companies can do more and
continue on the path to success.

My challenge to you all:
Develop a minimum viable change in
your organizaKon

Thank you!

Debrief

● What is one thing that surprised you today?
● What is one thing that confirmed what you
already know?
● What’s one thing you can try tomorrow?

My digital business card:
Max Farrell
@MaxOnTheTrack
CreateReason.com
max@createreason.com
501.231.5554

Reinventing Work: How Established Companies Innovate to Combat the Rise of the Startup

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Reinventing Work: How Established Companies Innovate to Combat the Rise of the Startup