The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses
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The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

Like many entrepreneurs, I was caught between constant evangelizing for my ideas and constantly entertaining suggestions for ways they could be improved. My employees faced the same incentive I had exploited years before: the more radical the suggestion is, the more likely it is that the compromise will move in the direction they desire. I heard it
... See moreA common practice is for the inventor of a new product or feature to manage the subsequent resources, team, or division that ultimately commercializes it. As a result, strong creative managers wind up getting stuck working on the growth and optimization of products rather than creating new ones.
Whenever possible, the innovation team should be cross-functional and have a clear team leader, like the Toyota shusa.
My suggested solution is to create a sandbox for innovation that will contain the impact of the new innovation but not constrain the methods of the startup team. It works as follows:
Consider it from the point of view of the managers who have the innovation sprung on them. They are likely to feel betrayed and more than a little paranoid. After all, if something of this magnitude could be hidden, what else is waiting in the shadows? Over time, this leads to more politics as managers are incentivized to ferret out threats to
... See moreWe often frame internal innovation challenges by asking, How can we protect the internal startup from the parent organization? I would like to reframe and reverse the question: How can we protect the parent organization from the startup? In my experience, people defend themselves when they feel threatened, and no innovation can flourish if
... See moreEventually, one batch will become the highest-priority project, a “bet the company” new version of the product, because the company has taken such a long time since the last release. But now the managers are incentivized to increase batch size rather than ship the product. In light of how long the product has been in development, why not fix one
... See moreBecause moving the batch forward often results in additional work, rework, delays, and interruptions, everyone has an incentive to do work in ever-larger batches, trying to minimize this overhead. This is called the large-batch death spiral because, unlike in manufacturing, there are no physical limits on the maximum size of a batch.