{"id":1198,"date":"2017-05-01T11:26:00","date_gmt":"2017-05-01T10:26:00","guid":{"rendered":"http:\/\/silta.es\/juantatay\/2017\/05\/01\/why-companies-are-not-startups-by-steve-blank\/"},"modified":"2017-05-01T11:26:00","modified_gmt":"2017-05-01T10:26:00","slug":"why-companies-are-not-startups-by-steve-blank","status":"publish","type":"post","link":"https:\/\/silta.es\/juantatay\/why-companies-are-not-startups-by-steve-blank\/","title":{"rendered":"Why Companies Are Not Startups, by Steve Blank"},"content":{"rendered":"<p>&nbsp;The Enterprise: Business Model Execution<\/p>\n<p><a href=\"https:\/\/medium.com\/startup-grind\/why-companies-are-not-startups-41e5785e0b4e\">Why Companies Are Not Startups \u2013 Startup Grind \u2013 Medium<\/a><\/p>\n<p>an enterprise is:<br \/>A company is a permanent organization designed to execute a repeatable and scalable business model.<br \/>Once you understand that existing companies are designed to execute then you can see why they have a hard time with continuous and disruptive innovation.<\/p>\n<p>Driven by Key Performance Indicators (KPI\u2019s) and Processes<br \/>Once the business model is known, the company organizes around that goal and measures efforts to reach the goal, and seeks the most efficient ways to reach the goal.<br \/>Paradoxically, these very KPIs and processes, which make companies efficient, are the root cause of corporations\u2019 inability to be agile, responsive innovators.<\/p>\n<p>Finance<br \/>The goals for public companies are driven primarily by financial Key Performance Indicators (KPI\u2019s).<br \/>A consequence of using these corporate finance metrics like RONA and IRR is that it\u2018s a lot easier to get these numbers to look great by:<br \/>Outsourcing everything.<br \/>Getting assets off the balance sheet.<br \/>Only investing in things that pay off fast.<\/p>\n<p>HR Process<br \/>The incentive system for a company focused on execution is driven by the goal of meeting and exceeding \u201cthe (quarterly\/yearly) plan.\u201d<\/p>\n<p>What Does this Mean?<br \/>Every time another execution process is added, corporate innovation dies a little more.<br \/>Innovation is chaotic, messy and uncertain. It needs radically different tools for measurement and control. It needs the tools and processes pioneered in Lean Startups.<\/p>\n<p>What to do<br \/>Because internal culture applies execution measures\/performance indicators to the output of these incubators and allocates resources to them same way as to executing parts of company.<br \/>Corporations that want to build continuous innovation realize that innovation happens not by exception but as integral to all parts of the corporation.<br \/>To do so they will realize that a company needs innovation KPI\u2019s, policies, processes and incentives. (Our Investment Readiness Level is just one of those metrics.)<\/p>\n<p>Lessons Learned<\/p>\n<ul>\n<li>Innovation inside of an existing company is much harder than a startup<\/li>\n<li>KPI\u2019s and processes are the root cause of corporations\u2019 inability to be agile and responsive innovators<\/li>\n<li>Every time another execution process is added, corporate innovation dies a little more<\/li>\n<li>Intellectually companies understand innovation, they don\u2019t have the tools to put it into practice<\/li>\n<li>Companies need different policies, procedures and incentives designed for innovation<\/li>\n<li>Currently the data we use for execution models the past<\/li>\n<li>Innovation metrics need to be predictive for the future<\/li>\n<li>These tools and practices are coming\u2026<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp;The Enterprise: Business Model Execution Why Companies Are Not Startups \u2013 Startup Grind \u2013 Medium an enterprise is:A company is a permanent organization designed to execute a repeatable and scalable business model.Once you understand that existing companies are designed to execute then you can see why they have a hard time with continuous and disruptive  [&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-1198","post","type-post","status-publish","format-standard","hentry","category-start-it-up"],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts\/1198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/comments?post=1198"}],"version-history":[{"count":0,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts\/1198\/revisions"}],"wp:attachment":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/media?parent=1198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/categories?post=1198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/tags?post=1198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}