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The Hello Bar is a simple web toolbar that engages users and communicates a call to action. The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers' hands faster. The lack of a tailored management process has led many a start-up or, as Ries terms them, "a human institution designed to create a new product or service under conditions of extreme uncertainty", to abandon all process.
The Lean Startup methodology has as a premise that every startup is a grand experiment that attempts to answer a question.
The startup will also utilize an investigative development method called the "Five Whys"-asking simple questions to study and solve problems along the way. A startup is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context. To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: how to measure progress, how to setup milestones, how to prioritize work. The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. In the last few years we’ve recognized that a startup is not a smaller version of a large company. There’s been lots written about how companies need to be more innovative, but very little on what stops them from doing so. Companies looking to be innovative face a conundrum: Every policy and procedure that makes a them efficient execution machines stifles innovation. This first post will describe some of the structural problems companies have; follow-on posts will offer some solutions.
Facing continuous disruption from globalization, China, the Internet, the diminished power of brands, changing workforce, etc., existing enterprises are establishing corporate innovation groups. But paradoxically, in spite of all their seemingly endless resources, innovation inside of an existing company is much harder than inside a startup. We know that a startup is a temporary organization designed to search for a repeatable and scalable business model.


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 innovation.
Every large company, whether it can articulate it or not, is executing a proven business model(s).
It’s worth looking at the tools companies have to support successful execution and explain why these same execution policies and processes have become impediments and are antithetical to continuous innovation.
In the 20th century business schools and consulting firms developed an amazing management stack to assist companies to execute.
For example, the Boston Consulting Group 2 x 2 growth-share matrix was an easy to understand strategy tool – a market selection matrix for companies looking for growth opportunities.
Strategy Maps are a visualization tool to translate strategy into specific actions and objectives, and to measure the progress of how the strategy gets implemented. Product management tools like Stage-Gate® emerged to systematically manage Waterfall product development. 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. This systematic process of execution needs to be repeatable and scalable throughout a large organization by employees with a range of skills and competencies.
Finance  The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s).
HR Process  Historically Human Resources was responsible for recruiting, retaining and removing  employees to execute known business functions with known job spec’s. One of the least obvious but most important HR Process, and ultimately the most contentious, issue in corporate innovation is the difference in incentives. The conundrum is that every policy and procedure that makes a company and efficient execution machine stifles innovation. While companies intellectually understand innovation, they don’t really know how to build innovation into their culture, or how to measure its progress. It may be that the current attempts to build corporate innovation are starting at the wrong end of the problem. Corporations that want to build continuous innovation realize that innovation happens not by exception but as integral to all parts of the corporation.


To do so they will realize that a company needs innovation KPI’s, policies, processes and incentives.
More than 350 UC Berkeley scholars share their perspectives on local, national and global issues. The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration.
They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer.
The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible.
These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost.
For most companies it feels like innovation can only happen by exception and heroic efforts, not by design. These tools brought clarity to corporate strategy, product line extension strategies, and made product management a repeatable process. Staff functions in finance, human resources, legal departments and business units developed Key Performance Indicators, processes, procedures and goals to measure, control and execute.
This learning can be validated scientifically, by running experiments that allow us to test each element of our vision. It represents where employees fit in an execution hierarchy; showing command and control hierarchies – who’s responsible, what they are responsible for, and who they manage below them, and report to above them.



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