Stanford Graduate School of Business Professor William Barnett explains how innovative companies discover new approaches to business. He highlights the key differences that make some companies more likely to deliver innovations, and shows how leaders can shape their companies to be more innovative. Published on May 15, 2015
Bill Barnett on Strategy: The Secret: ".... Right answer: Design your organization so that it develops new capabilities. We know that some companies learn much better than others. Make it your job, as a leader, to help your organization be better at learning. Structure your organization so that your people must engage with important, unsolved problems. Establish routines that allow for failure and reward those who try to discover – regardless of the ultimate outcome. Build a culture that values discovering over knowing, becoming over being. Lead by design, and don’t forget the secret: There is no secret."
A high variance system allows high rate of failures and innovative success.
Existing technology or disruptive technology?
Venture Capital: rate of failures is a key positive metric.
The fear of being a fool vs the hope of being a genius--do you want consensus or an environment safe to risk being a fool?
Upper right in graphic below is what venture capitalists and innovators want:
|VCs and Innovators want to be in that non-consensus "right" position (upper right above)|