Most managers and politicians love systems—they are predictable and have the illusion of safety. Systems are similar to mathematical equations, promising if you work the formula, you will get a foreseeable result, like the proverbial 2+2=4. But what if “4” represents unrealized potential or worse, unequal access to opportunity? Smart companies and organizations encourage entrepreneurs and intrapreneurs to question the formula because eventually, companies and organizations who don’t question the formula will become DOA.
Giants of commerce like Blackberry, Sears, Borders, and Blockbuster had everything to succeed except curiosity and an organizational structure that encouraged questioning the formula. Along the way, they stopped being pioneers and became settlers who valued fences over unknown horizons. It's normal, it's expected, and it is a predictable formula for death.
Every first-year business student is shown the “Lifecycle of a Business” chart. It is not a mystery; it has happened again and again for thousands of years, not only with businesses, but with governments, religions, and organizations. There is one simple law: innovate or die.
The mantra for growth companies like Apple, Facebook, Amazon, and Netflix is, “Move fast and break things.” This axiom is the antithesis of most mature companies who live and die by their formulas, but the fact is, in today’s economy slow and steady doesn’t win the race, slow and steady results in Chapter 13.
Here are three questions to determine if your company or organization is a pioneer or a settler.
How often does senior leadership question the company formula?
- We have an entrepreneur/intrapreneur position
- Every meeting
- Once a month
- When the CEO brings it up
- Can I call my boss on my Blackberry to ask
How long does it take to go from ideation to the launch of a new product or service?
- Before lunch
- A Week
- A Month
- A Quarter
- We are about to release a new buggy whip next year
What happens if a person/team launches a loser?
- Our company culture celebrates Minimal Viable Products (MVP)
- We are always in the process of learning how to better serve our market
- A robust postmortem to find out where the process broke down
- They may only get a 2.5% salary increase at their next annual review
- Bye, Bye Miss American Pie
Add up your score of the three questions with the number next to your answer. If you have
- 3 to 7 points you are a very innovative company, be careful not to lose your core
- 8 to 10 points make sure your culture has a champion of innovation
- 11 or more points your company is in decline, and you need to hire an innovation consultant ASAP
An innovation culture has an unreasonable commitment to “move fast and break things.” Apple, Facebook, Amazon, and Netflix are unusual because they refuse to settle. Settling is normal, it is what humans do, just know by settling you are stamping an expiration date on your company. If you want to cheat death, you must innovate. This is easier said than done and you will most likely need help. I recommend reaching out to organizations like The Jim Moran Institute, your local Chamber of Commerce, or an innovation and organizational culture consultant like me.
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