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In the last few years we’ve recognized that a startup is not a smaller version of a large company. There’s been lots written about how companies need to be more innovative, but very little on what stops them from doing so. Companies looking to be innovative face a conundrum: Every policy and procedure that makes them efficient execution machines stifles innovation. This first post will describe some of the structural problems companies have; follow-on posts will offer some solutions.
Facing continuous disruption from globalization, China, the Internet, the diminished power of brands, changing workforce, etc., existing enterprises are establishing corporate innovation groups. Every large company, whether it can articulate it or not, is executing a proven business model(s). For example, the Boston Consulting Group 2 x 2 growth-share matrix was an easy to understand strategy tool – a market selection matrix for companies looking for growth opportunities.

Strategy Maps are a visualization tool to translate strategy into specific actions and objectives, and to measure the progress of how the strategy gets implemented. What Does this Mean?Every time another execution process is added, corporate innovation dies a little more. The conundrum is that every policy and procedure that makes a company and efficient execution machine stifles innovation. While companies intellectually understand innovation, they don’t really know how to build innovation into their culture, or how to measure its progress. What to Do?It may be that the current attempts to build corporate innovation are starting at the wrong end of the problem. Corporations that want to build continuous innovation realize that innovation happens not by exception but as integral to all parts of the corporation. Some diabetics are intimidated by the amount of medication they need to take to control the condition.

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design. These tools brought clarity to corporate strategy, product line extension strategies, and made product management a repeatable process.
Although medical treatment with medicines is quite effective in treating these problems, there are several side effects of using these medicines.

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