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


Two types of innovation Continuous


Two types of innovation Continuous “The ability to combine operational effectiveness and strategic flexibility”



Two types of innovation Disruptive


Two types of innovation 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 [email protected] 501.231.5554



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