I recently had an insightful chat with Tendayi Viki, author of "The Corporate Startup" “Pirates In The Navy” and expert on innovation. We discussed the differences between startups and large companies when it comes to innovation, and key strategies for enabling innovation inside organizations.
Here are some top takeaways:
Opening Up Space for Ideation
Companies don't lack ideas, they lack processes that allow those ideas to surface and be tested.
Innovation theaters with lots of ideation don't create value. Focus on building and validating value propositions.
Open up space for small experiments, not just ideation. Track progress with innovation accounting.
Avoid Premature Scaling
Startups used to mimic big cos, preparing full business plans and giving out executive titles. This "fake it" approach fails.
Startups must find product-market fit before scaling. Corporates face this uncertainty when disrupting core business or creating something entirely new.
Innovation teams shouldn't build like a large company when there are still major unknowns.
Adopt a Portfolio Approach
Leaders can't pick the winning idea upfront. Make multiple small bets based on a thesis.
Pay attention to which teams show traction based on innovation accounting, then double down on those.
Legacy systems are designed for big bets, not managing a portfolio. Processes need reconfiguring.
Enable Dedicated Innovation Teams
Surround innovation teams with coaching for methodology mastery and accountability.
Make innovation its own function, not just a part time job. This "entrepreneurial function" is becoming a best practice.
Pirates In The Navy