Business Practice

Think Small: Rapid Innovation

March 9th, 2010 by Andrew Swenson in Business Practice

image credit: Feliciano Guimarães

In my most recent post, I asked if enterprise should think small. But as a close friend said to me, it’s one thing to suggest that enterprise should change; it’s another to lay out a clear path for it.

I won’t pretend I have all the answers (or any really), but I do think that with a little critical thinking, together we can talk about practical, actionable steps that translate some of the advantages of small business/startup culture into enterprise business processes.

Applying Startup Speed and Flexibility

Given that key to rapid innovation is the ability to fail fast and fail cheap (a concept that applies to your career too), perhaps two of the most beneficial elements of startup culture are speed and flexibility.

Because of sheer size, some elements of that speed and flexibility just won’t fit into the enterprise.

And probably for good reason. Imagine an enterprise CEO calling everyone at 3 AM to tell them that s/he’s had a breakthrough and that you’re going to completely change your business model.

Doesn’t work. Especially not after that silly IPO.

But at the same time, in a recent interview for the Ask Summit, Emily Jasper suggested that, when it comes to organizational culture, there’s a a spectrum between what we would typically deem “startup culture” and “enterprise culture.” She went on to articulate that it may be possible for enterprise organizations to emulate pieces of startup culture.

I think a responsible and appropriate way to mirror startup speed and flexibility when it comes to innovation is through targeted and fractal development teams.

Fractal Development

Last fall, Terry Weaver wrote about failing fast and cheaply within the context of a quote from Ravi Sastry: “You’ve got to play to win—not play to decide.” Wever writes,

…If you’re considering something new and non-traditional, go flat out. No reservations, no limitations, take no prisoners. And, at the same time, bound your risk. Determine in advance how much time, how much effort and how much money you’re going to risk before making a “go/no-go” decision. Bet an amount that should be sufficient for success, but not enough to swamp the company if it doesn’t work.

The road to responsible risk management, in my opinion, is to remove the layers of approval that often choke off the life of innovation teams.

Once a team is taksed with developing a product, leadership should give them the tools they need to make decisions, to bend rules–in essence to worry about how their plans will fit within the organizational process later. Forcing innovation teams into approval channels often causes the reservation and limitation Wever warns against.

In terms of structure, it’s my opinion that this team should be a fractal of your organization, made up of as few people as possible.

Successful SaaS provider 37Signals recommends orgs use only three people for version 1.0 of any software development project. The point?

Talented people… thrive on the challenge of working within restraints and using their creativity to solve problems. Your lack of manpower means you’ll be forced to deal with tradeoffs earlier in the process — and that’s alright. It will make you figure out your priorities earlier rather than later. And you’ll be able to communicate without constantly having to worry about leaving people out of the loop.

The same logic, I think, applies to projects in other areas—depending on your organization, it could be the development of a new FMCG, a brand new social network-based customer service program, or even a breakout marketing tactic.

Empower fractal development teams

In the end, no matter what the task is, leaders should let the small, fractal team to sort out all of the details. Let them lock themselves in your conference room over the weekend if they want to. Let them work in the park if the want to. Give them the flexibility to be. To create. In short…

Trust the team.

Sure, leadership should make it clear they expect the team to provide something that will address the task at hand; however, the ultimate success or failure of the project should be secondary. After all, this is about trying new things. Some will fail.

But if version 1.0 fails, the organization is out significantly less time and energy than if they would have subjected the initial development to layers of approval and everyone’s scrutiny.

But if it succeeds, that’s when the project can move into a more formal development stage. More hands will be needed to develop version 2.0 as the organization plugs innovation into their current organizational processes.

Your thoughts?

So does this have legs? Could you see this implemented into enterprise culture? Why/why not?

I’d love to continue the conversation.

-Andrew

Image credit: Jsome1 on Ficker; see original for copyright info


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  • http://twitter.com/tasmijn Bas Helderman

    I'm putting my veto on the table. Project teams are just the thing an enterprise – or any organization – doesn't need.

    There are two scenarios:
    1. You have a great idea & a project group has to work on it.
    2. You assign a project group to do something great.

    In both scenarios, the project groups are bound to do something that's for 90% not what you wanted. Most ideas and unvoluntary innovations aren't documented well, and even if they were… Somewhere down the (production) line, the team will discover things you hadn't before, add functionalities you hadn't foreseen and eventually use your smart innovation or assignment to create something that's their own. And innovation can't be executed well without the original spin doctor.

    That aside, you probably had a good idea for a certain cause, for a certain group of people. Now the team probably would want to please more than just one group of people. They want to go large and doing so, bypass the purpose of your great spirit.

    But again, that's my experience :)

    • http://wordpost.org Andrew Swenson

      Alright Bas, as promised: my anti-veto.

      You bring up two great points: (1) lack of consistent vision, and (2) scope creep. Both of which, I think, are avoidable.

      If executives give teams the task to innovate, but have a clear vision of where the project should go—then they should be involved in guiding the project. If a project group is assigned, patted on the head, and sent along, there's no way that leadership can reasonably expect that they'll come up with something that fits their original vision. That said though, sometime the point isn't conforming to the vision, but coming up with an innovation that works and was inspired by the initial charge.

      But more specifically about scope creep: strong project management, and more specifically, project leadership has to be present throughout the process. I agree that one of the most difficult tasks is maintaining the original vision of a project from alpha to beta to public release. The task at hand is to be prepared to defend why version 1.0 decisions were made. I'm thinking stuff like

      Why the target market was selected (and justification for why it's big enough).

      Why certain features were included.

      Why certain features were excluded.

      (in the case of products) how it's going to make money, etc.

      I guess this is a long way of saying that I think with some careful project management, we can head off scope creep that often kills innovation.

      What do you think? Am I being naive here?

      • http://twitter.com/tasmijn Bas Helderman

        Topnotch project management can secure almost anything, I'm with you on that. But how often will an enterprise put their best project manager on an innovation programme that hasn't proven itself yet? Let alone hire a great project manager for that sole purpose.

        The project manager on an innovation project often is someone that – if they even are a PM – has no experience with that specific sort of innovation. I.e. a project manager that earned their stripes in retail shouldn't manage online usability innovations.

        • http://wordpost.org Andrew Swenson

          Hmm, but do you think that innovation stems from great leadership (within teams), and that leadership requires some level of good PM?

          I'm not sure, but I get your point about HR. Although it's still not a very good excuse in my estimation :)

          What's the alternative in your experience? Innovation by committee? (Not being flip, just curious)

  • http://twitter.com/tasmijn Bas Helderman

    I'm putting my veto on the table. Project teams are just the thing an enterprise – or any organization – doesn't need.

    There are two scenarios:
    1. You have a great idea & a project group has to work on it.
    2. You assign a project group to do something great.

    In both scenarios, the project groups are bound to do something that's for 90% not what you wanted. Most ideas and unvoluntary innovations aren't documented well, and even if they were… Somewhere down the (production) line, the team will discover things you hadn't before, add functionalities you hadn't foreseen and eventually use your smart innovation or assignment to create something that's their own. And innovation can't be executed well without the original spin doctor.

    That aside, you probably had a good idea for a certain cause, for a certain group of people. Now the team probably would want to please more than just one group of people. They want to go large and doing so, bypass the purpose of your great spirit.

    But again, that's my experience :)

  • http://www.blackbeltguide.com/ Marc Winitz

    It totally has legs. I don't really agree with Bas here. I run a wireless SaaS inside a large org. We are a startup inside BigCo. and use Agile development methodologies with small teams. If you are not familiar with the concept, read about it here: http://en.wikipedia.org/wiki/Agile_software_dev…

    Interestingly you can use the identical process for virtually anything, not just software. It is ideal for small teams.

    • http://wordpost.org Andrew Swenson

      Marc,

      I've heard of Agile development before, but I've never really looked into it. Thanks for bringing it up!

      Your observation that it could work for virtually anything is interesting. I started walking down that path when I used 37singals' software development advice to apply to innovation in general. I think Agile provides one framework within which my initial thesis could actually function (because it's an established org process and because there's data that backs up the fact that it works…which tends to make senior leaders much more comfortable).

      Were you there when this was initially implemented? I'm really interested in learning more about how this works.

      • http://www.blackbeltguide.com/ Marc Winitz

        I am unfamiliar with 37 Signals but it looks like it is easy to use, so probably ideal for smaller environments and small business. Agile development is typically used for more complex software creation but the part that you can extract and use anywhere is a personal commitment each team member makes to each other. The process basically puts the pressure on all the participants to create quickly and get back together quickly to see the results. If you are slacking off, everyone sees it. It does work, especially in a technical environment. You would think it wouldn't but software dev is a creative process in a sense.

        The part that is more relevant for this conversation is that it is very much about the team and making commitments, rapid prototyping, etc…and less about the complexity of software development.

        • http://wordpost.org Andrew Swenson

          Thanks for drawing those distinctions Marc. I'm really interested in learning more about Agile development (my experience is limited to a few conversations and Wikipedia…). I'm all clear now on where you were going with the metaphor.

          If I wanted to learn more about agile development, what resources would you recommend?

  • emilyjasper

    What I like here is that it identifies the people who might be the strategic force of an organization aren't the people who get things done. Great leaders acknowledge that and have a strong team to help with execution. Additionally, a small team like that can help reduce “too many cooks in the kitchen.” I know that once you need a long series of approvals to get anything done, nothing gets done. If there's a group ID'd to do the job, and the strategic leader handles some of the issues around buy-in, you can actually accomplish something.

    • http://wordpost.org Andrew Swenson

      “You can actually accomplish something.” Right on.

      I think it's interesting that we often equate approval processes as non-accomplishments—they don't make revenue, but serve only to support the organizational structure. So they aren't evil, but I think if they're too heavy, they prevent us from accomplishing anything profitable in any reasonable amount of time.

      I'm all for lightweight processes that enable rather than restrict.

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