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The Lean Enterprise - Keynote from Lean UX NYC

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Opportunities and new markets appear unpredictably, and reacting to them quickly and aggressively is more important than ever for large enterprises. The monolithic nature of the enterprise, however, is quite often directly at odds with the notions of innovation and the lean methodology. For the leaders of such enterprises, a complete rethinking of strategy is in order.

Enter The Lean Enterprise, which provides enterprise leaders a detailed examination of the motivations that drive innovative individuals and the support structures they need to deliver breakthrough products and services within an enterprise context. More notably, the book points out examples of the many failures of corporate leadership to empower the very innovators within their walls. Spectacularly successful startups, such as Twitter, Pinterest, and Instagram were founded after corporate employees became fed up with the stifling nature of corporate bureaucracy and decided it was easier, and more profitable, to venture out on their own.

With the largest organizations in the world taking note of the obvious advantages of the lean approach, it is only a matter of time before enterprises level the innovation playing field. The Lean Enterprise: How Corporations Can Innovate Like Startups shows you how to unlock the hidden potential within your organization, today.

Published in: Business, Technology
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The Lean Enterprise - Keynote from Lean UX NYC

  1. 1. THELEAN Trevor Owens CEO, Javelin.com ENTERPRISE @TO
  2. 2. PM,Google ChristopherIsaacStone
  3. 3. Heleftagreatjob&$2M stockoptions,tostarta podcastingstartup. Hehadnosavings.
  4. 4. Thepodcasting startupfailed,but Chrispivoted
  5. 5. MeetChristopher“Biz”Stone Founder,Twitter
  6. 6. BizGained “EntrepreneuroftheDecade” “NerdoftheYear”
  7. 7. X-GoogleEmployees * = Full Growth Not Realized ** * *
  8. 8. ManyFoundersLeaveCorporations
  9. 9. Theaverage entrepreneurhas 14yearspriorwork experiencebefore starting
  10. 10. Withsomuchtalentin companies,whatcanwe dowheneventhemost innovativecompanycan’t retainentrepreneurial people?
  11. 11. Bytheendofthis presentationyouwillhave ananswer
  12. 12. Allstartupsand disruptiveproduct developmentfollowthe samepattern
  13. 13. The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Before Startup Source: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Reality Sets In Before Startup Source: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Experimenting & PivotingSource: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Starts Working Experimenting & PivotingSource: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Product/ Market Fit! Starts Working Experimenting & PivotingSource: Paul Graham; avc.com Time Happiness The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Product/ Market Fit! Scale Starts Working Experimenting & PivotingSource: Paul Graham; avc.com Time Happiness
  14. 14. Startupsarechaoticand experienceaperiodof extremeuncertainty,thisis theTroughofSorrow(ToS)
  15. 15. Moststartups& corporateinnovationprojects failintheTroughofSorrow(ToS)
  16. 16. It’seasiertonavigateToS outsideofcorporatecontext, howcanwefixthis?
  17. 17. Theanswerliesinthe motivationsofentrepreneurial individuals
  18. 18. ResearchshowsRisk Aversiondoesnotaffect decisiontostarta startup
  19. 19. Dr.TimButlerofHarvard studied27,000 individualsandfound entrepreneursvalue rewardsverydifferently
  20. 20. Entrepreneur 1. Power 2. Control Employee 1. Security 2. Recognition … 11. Power 13. Control … … 13. Security
  21. 21. Theproblemin corporationsisthatwetry torewardinnovatorswith thingstheydoNOTvalue
  22. 22. Entrepreneurswillingly giveupsalaryinexchange forequity.Thisformof ownershipisthepathto Power&Control
  23. 23. Inconversationwiththe FounderofInstagramon whytalentedpeopleleave Google,ChrisDixon said…
  24. 24. “Ownership is why you stay up all night. It’s why you think about this all day, every day.” ! -Chris Dixon Andreessen Horowitz
  25. 25. “Stock options in a 
 [large corporation] can 
 never feel like ownership.” ! -Chris Dixon Andreessen Horowitz
  26. 26. Ok,butcan’twetakethe peoplewhowantasalary andhelpthemdeliver innovativeproducts?
  27. 27. NO!
  28. 28. In environments of uncertainty Extrinsic Rewards lead to worse performance
  29. 29. Extrinsic Rewards lead to peak performance when the rules are simple and goal is clear
  30. 30. Startups live in the Trough of Sorrow, equity ownership is needed to succeed
  31. 31. 1.InnovationLabs 2.IntrapreneurPrograms 3.Skunkworks Corporationshavetriedeverything… Exceptgivingemployeesequity!
  32. 32. 1.InnovationLab 2.IntrapreneurProgram 3.Skunkworks Thesestructuresfailtoproduce repeatablesuccess
  33. 33. Disney INNOVATION COLONY
  34. 34. IntheColonialEra, establishedcountries sailedtodistantshoresin searchofeconomic advantage.
  35. 35. Colonieskeptaunique formofindependence whilebeingownedbythe mothercountryand benefitingfromits resources.
  36. 36. Citizenslefttheamenities ofhome,togainpowerand controlascolonistsofthe newworld.
  37. 37. Manydiedorreturned destitute,butthosewho stayedfoundednew nations.
  38. 38. Astructurethatenablesentrepreneurial employeestobecomeentrepreneursfor benefitoftheenterprise InnovationColony
  39. 39. Astructurethatenables ownershipandradicalautonomy yetlimitsriskfortheenterprise InnovationColony
  40. 40. RadicalAutonomytoNavigateUncertainty 1.AllocateResources 2.Changedirection(pivot) 3.Raisemoneyfromoutsideinvestors
  41. 41. Structure 2to3ManagingDirectors $1Mto$50MFund InnovationAccounting
  42. 42. 1,000TeamsApply 10AreSelected&FormOwnCompanies $50kto$300kinFunding 3MonthstoGettoMarket DoWhateverTheyWant,It’sTheirCompany How
  43. 43. Techstars“PoweredBy”Program, isafantasticexampleofthe InnovationColony
  44. 44. In3months,Metricshubgotto market,acquiredcustomers,and hadatermsheetfromaVC.
  45. 45. Microsoftdecidetobuythe companyoutright.
  46. 46. Results ofInnovationColonyteams raisemoneyorgetboughtback 75%
  47. 47. Fewcorporateinnovationprojects evenmakeittomarket…
  48. 48. Thecompaniesthatallow entrepreneurialminded employeestohaveequity intheirprojects,arethe oneswhowillprofitfrom theirgreatestinventions
  49. 49. LeanEnterpriseBook.com

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