I had the opportunity to do a workshop recently with a group of senior executives where we spent some time thinking about this question: “what has changed to make the process of getting growth and change programs done in firms so difficult?”
The narrow road to breakout growth has two ditches. These ditches are formed by the mindset of how growth is commissioned within a firm.
The first ditch is one we’ve talked about here and here, where the firm is operationally oriented and expects organic growth without a deliberate investment in the work of establishing how that new event is going to happen. What we found was the siren call of the main business keeps attention and resources locked in and quickly consumes any “excess” resources devoted to new growth projects. At best, we see small spurts of new thinking. And at worst, we see heads down conformity.
The second ditch, and the subject of today’s article, takes place when the culture of the firm is to suggest the leader that came up with the idea to a “proof of concept.” The committed leader then does significant work to find promising candidates, and undertakes the textbook work of creating a “proof of concept” prototype. When they do, they socialize it with the internal team and outside clients, hoping that the validation will provide the rocket fuel to get it through the “dip” (see here and here), and into commercial production.
The issue with the second kind of firm is that there is massive internal inertia that needs to be overcome to get through the handoff from the proof of concept team to operations. This “dog and pony show” stage can last a long time. In fact, quite often teams will share a worn out, scratched up demo with me that they’ve been doing for months and months.
How do we avoid the “science fair” that creates great buzz, then winds up in the back closet with dust bunnies?
Move with Dispatch
One of the main mistakes I see growth firms take is to run at the cadence of their core firm. This leaves new projects at deep risk of being shut down to do any number of reprioritization events. It is essential that the proof of concept, de-risking and first pilots be done in short springs at something approaching twice the cadence of the regular product development activity.
Action Step: Fast cycles are your friend. In my client work we use an 18/180 tool to assure that we have a tight cadence and deadline. Each piece of work should be no more than 18 calendar days, with a major outcome planned at 180 days.
Build a Pipeline – Not a Wall
A second key is to make sure that there is a pipeline of valuable new ideas under consideration. There are a variety of tools to see around corners and keep the pipeline full, but one of the most vulnerable positions a firm can find itself in is flat footed chasing an emerging competitor.
Action Step: Set up twice annual “foresight” sessions using a facilitator to draw out the firm’s best thinking around a core topic. For example, a workshop around designing a fictional perfect competitor can be completed in six hours and always creates a mountain of new insight.
Keep it a Meritocracy
We see a lot of “bake offs” and project contests put together, ala shark tank and other shows that are based on VC-startup processes. These may have some merit, but if there is any hint of favoritism or the bosses pet project being selected, all the juice comes out of the system very quickly.
Action Step: Daylight is the best tool here. If you are planning this type of event take three actions to keep it fact based. First, invite outside panelists. Second, make the review materials available early enough so each panelist can do their homework. Lastly, video the dialogue, as teams learn as much from how the panelists think as they do from who “wins.”
No Hall Passes
When commissioning projects, it is very important to do it with rigor with only enough funding to get to the next milestone. There is no permanent life support – every project needs to re-up for every cycle. I have gone into firms where zombie projects roamed the halls and absorbed all the potential funding for new projects.
Action Step: Set up an annual review of every “pre-revenue” investment. Be sure to include all four “Growth Leader” styles of thinking in the meeting to assure balanced decision making.
I hope these four tips will help incubator teams avoid the dreaded science fair syndrome. It’s a place where none of us intend to go, but many have arrived at.
If you’d like to talk about the deeper work of doing new things in larger, more complex firms, we should connect. Zip me a note at scott@scottpropp.com and ask to get more articles like this delivered weekly.
I’m also always happy to discuss projects and ideas. Feel free to set an appointment with this link or please give me a call at 847-651-1014.
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