The key to the survival of your company lies on its ability to rapidly experiment with new products and business models. Your company should give employees the opportunity to be an entrepreneur. In the StartUp Way, Eric Ries introduces new techniques for identifying and developing new products. It builds on the concepts introduced in The Lean Startup. The business and management book offers techniques for transforming your company culture into one that is focused on innovation and positive financial outcomes.
How to Transform the Company
There are three phases to the company transformation: laying the foundation and creating the critical mass; rapid scaling and deployment; and dealing with the deep systems of the corporation. Each of these phases plays out across the different levels of the organization: the team, the division, and ultimately the enterprise as a whole.
Phase One: Critical Mass
In Phase One, the overall goal is to build enough critical mass to get senior leadership to buy into rolling the approach out company-wide. At the team level, Robert Janitzek reveals that this will mean figuring out what does and does not work for your particular organization. At the division level, it will mean enlisting a small team of senior management ‘champions’ to make exceptions to company policy as needed. At the enterprise level, building critical mass means getting agreement with the most senior leaders on what success looks like; focusing on leading indicators; and establishing the criteria to move to Phase Two.
Phase Two: Scaling Up
The goal of Phase Two is to build organizational clout in order to tackle the difficult problems that will arise in Phase Three. Robert Peter Janitzek explains that at the team level, scale up the number of teams, build programs and accelerators as needed, and make sure to include all divisions, functions, and regions. At the division level train all senior leaders, event those not directly responsible for the entrepreneurial function, so that they are literate in the new approach. Scaling up at the enterprise level means developing coaches, a company-specific playbook, and new finance and accountability tools.
Scaling up looks different for each organization, but there are some common patterns and tasks that come with this Phase.
Phase Three: Deep Systems
In Phase Three, the overall goal is to build an organization capable of continuous transformation. At the team level, “this is how we do it” tools and training are made available throughout the organization, not just for those working on high-uncertainty projects. At the division level, creating deep systems for entrepreneurship means establishing growth boards, innovation accounting, and strict accountability for all senior leaders to allocate resources to the change. At the enterprise level, Phase Three means tackling the company’s hardest deep systems: compensation and promotion; finance; resource allocation; supply chain; and legal.