Loading...
Answers
MenuHow do you best get your large corporate to behave like a startup?
Takes ages to develop anything at our large corporation...How do we start behaving like a startup?
Answers
One idea that's worked well for my clients has been to create a Skunk Works, which is effectively an autonomous, outside-the-bureaucracy, kinda-sorta-secret R&D team.
I've been on these teams before, and if they're truly left alone with a pile of ideas and resources, they can accomplish incredible things. (This is how Lockheed Martin developed some of its most incredible tech, and how Google takes its "moon shots".)
But it will be a challenge to management, because they'll have to stay out of it after the initial specs are delivered. If you can get buy-in, though, you'll bring back startup-level development speeds to your organization.
I'd be happy to discuss some of the processes I've followed and the structure of the teams I've been part of — just drop me a line.
Good luck!
Here's the critical factor: Willingness to fail. And with that comes Lack of blame.
Corporate cultures often have a "play it safe" mentality and a "blame game" process. Why would anyone want to risk their career?
A culture in which risks are encouraged and failure does not mean blame and firing is necessary.
Establish the team. Get the right people on board--people who already have a risk-taking personality. Set up resources for this team that you are willing to lose entirely, and provided the project was not truly mismanaged, no one will be blamed for losing.
One of the top issues with corporate execs and success or failure is their willingness or lack thereof to give total commitment to an outcome--"We're going to do this no matter what it takes." They need to see that from you. If they see you trying to play it safe, they're not going to stick their necks out.
We deal with this issue at The Economist and in the past couple years, we've been able to implement some lean thinking to move things along faster.
At the core, what you're trying to change is the culture.
Culture has 4 components that a group of people (people in your org) share:
1. Value system (what they consider important)
2. Belief system (how the believe things work)
3. Behavior (habits, rituals)
4. Artifacts (manifestation of the above)
You need to start addressing the first 2, then you'll see the progress (or lack thereof) in the last 2.
Here's an example: a bad approval process that makes product development move really slow. We discovered this happen because the stakeholders want to show that they're contributing to the project. Because of this, they want to make sure they get to review the project and give feedback. This way, they can show their contribution for the product's success and this would be good for their performance review.
From this example, the value for these stakeholders is recognition. Their belief : giving feedback (even if it's superficial and immaterial) shows that they're contributing. The behavior: blocking process in order to get a chance to give feedback. The artifact: feedback for the product in email, request to do reviews, meeting invites.
How to start:
1. Find your allies. These are people who also want to move faster. Ideally people who work in your team
2. Show real value. The reason why you want to work fast like a startup is so you can deliver value to your customers faster and more often. What can you do to give other people around you (who you want to influence) a taste of what that's like? One thing that we did was to do rapid prototyping (without code) and do usability test, then shared the video highlights with the stakeholders.
I'll be happy to share with you the way we did this at The Economist mobile team and offer some actionable ideas to help you move forward with the transformation.
Related Questions
-
What is a normal churn rate for b2b saas company with an average monthly revenue of $850 per customer? Is 10% of the total monthly sales high or low?
10% of the total monthly sales churning on an absolute basis is near fatal. That means that within 5 months, you have 50% absolute churn per year, which reveals fundamental flaws with the service itself. Anything above small single digit churn is telling you and your team that customers are not seeing enough value in your product. I'd start by doing as many exit interviews as you can with those that have churned out, including, offers to reengage at a lower price-point while you fix the issues that matter to them. Happy to talk through this in more detail in a call.TW
-
how to start earning on clarity.fm
Most of the earnings come from the people you are in contact with. The platform is not that big at the moment but it can be earned. My recommendation is to create content on your private page web, facebook, instagram ... and leave a clarity link through your work. If you need extra help call me for 15 minutes.DB
-
What is the average series A funding round at pre revenue valuation for a enterprise start up w/cutting edge tech on verge of our first client.
With all respect to Dan, I'm not seeing anything like that. You said "pre-revenue." If it's pre-revenue and enterprise, you don't have anything proven yet. You would have to have an insanely interesting story with a group of founders and execs on board with ridiculous competitive advantage built in. I have seen a few of those companies. It's more like $3m-$5m pre. Now, post-revenue is different. I've seen enterprise plays with $500k-$1m revenue/yr, still very early (because in the enterprise space that's not a lot of customers yet), getting $8m-$15m post in an A-round. I do agree there's no "average." Finally, you will hit the Series A Crunch issue, which is that for every company like yours with "cutting edge tech" as-yet-unproven, there's 10 which also have cutting edge tech except they have customers, revenue, etc.. So in this case, it's not a matter of valuation, but a matter of getting funded at all!JC
-
How much equity should I ask as a CMO in a startup?
Greater risk = greater equity. How likely is this to fail or just break even? If you aren't receiving salary yet are among 4-6 non-founders with equivalent sweat investment, all of whom are lower on the totem pole than the two founders, figure out: 1) Taking into account all likely outcomes, what is the most likely outcome in terms of exit? (ex: $10MM.) Keep in mind that 90%+ of all tech startups fail (Allmand Law study), and of those that succeed 88% of M&A deals are under $100MM. Startups that exit at $1B+ are so rare they are called "unicorns"... so don't count on that, no matter how exciting it feels right now. 2) Figure out what 1% equity would give you in terms of payout for the most likely exit. For example, a $10MM exit would give you $100k for every 1% you own. 3) Decide what the chance is that the startup will fail / go bankrupt / get stuck at a $1MM business with no exit in sight. (According to Allman Law's study, 10% stay in business - and far fewer than that actually exit). 4) Multiply the % chance of success by the likely outcome if successful. Now each 1% of equity is worth $10k. You could get lucky and have it be worth millions, or it could be worth nothing. (With the hypothetical numbers I'm giving here, including the odds, you are working for $10k per 1% equity received if the most likely exit is $10MM and the % chance of failure is 90%.) 5) Come up with a vesting path. Commit to one year, get X equity at the end. If you were salaried, the path would be more like 4 years, but since it's free you deserve instant equity as long as you follow through for a reasonable period of time. 6) Assuming you get agreement in writing from the founders, what amount of $ would you take in exchange for 12 months of free work? Now multiply that by 2 to factor in the fact that the payout would be far down the road, and that there is risk. 7) What percentage share of equity would you need in order to equal that payout on exit? 8) Multiply that number by 2-3x to account for likely dilution over time. 9) If the founders aren't willing to give you that much equity in writing, then it's time to move on! If they are, then decide whether you're willing to take the risk in exchange for potentially big rewards (and of course, potentially empty pockets). It's a fascinating topic with a lot of speculation involved, so if you want to discuss in depth, set up a call with me on Clarity. Hope that helps!RD
-
What does it mean to 'grandfather you in' in the tech world?
It stands for allowing someone to continue doing or use something that is normally no longer permitted (due to changing regulations, internal rules etc.)OO
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.