Lean Startup in Large Organizations

Lean Startup in Large Organizations

by James A. Euchner
Released February 2022
Publisher(s): Productivity Press
ISBN: 9780429783326

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Book description

Large corporations must become far more agile in implementing new products and new business models. The pace of technology change, the blurring of industry boundaries, and the agility and resources of startups in almost every industry segment demand it.

Many companies have begun to adopt the principles of Lean Startup in order to increase the pace and agility of their innovation initiatives, but most have had limited success in doing so. Although the principles seem intuitive and straightforward, there are challenges to using them inside an existing company, especially in a manufacturing environment. The biggest requirements, beyond those espoused for startups, are:

  • Developing a business model for the new venture that not only works in the marketplace but also works within the constraints of the corporation

  • Managing the conflicts that inevitably arise with the current operating business; every business that has operated over decades has well-established ways of doing things that may not fit the required pace and flexibility required of a new venture

  • Conducting business experiments with physical goods as well as with software offerings

  • Managing the risk of investing in a new domain for executives that are used to investing where the risks are more clearly understood

This book describes a systematic approach for implementing Lean Startup in large organizations. It builds on the principles of Lean Startup and adds additional practices required to manage the realities of the corporate context. The book describes how it is done, with examples from practice in companies that have successfully used the methods. It complements Lean Startup methods with elements of corporate innovation practices developed by leading academics and practitioners. It brings these practices together for the first time in a practical and integrated way.

Table of contents

  1. Cover
  2. Endorsements
  3. Half-Title
  4. Title
  5. Copyright
  6. Dedication
  7. Contents
  8. Preface: Why This Book
  9. Acknowledgments
  10. About the Author
  11. Chapter 1 Introduction
  12. Chapter 2 Lean Startup in a Nutshell: What Every Executive Should Know about Lean Startup
    1. The First Three Principles: How to Learn
      1. Lean Learning Loops
      2. Minimum Viable Product
      3. Pivot or Persist
    2. The Integrative Principle: Innovation Accounting
    3. The Last Three Principles: What to Learn
      1. The Value Hypothesis
      2. The Business Model Hypothesis
      3. The Growth Hypothesis
  13. Chapter 3 What’s Different in Large Organizations: Why Lean Startup Is Not Enough
    1. Yes … And
      1. 1. The Need to Contain the Chaos
      2. 2. The Need to Manage Disruptions to Operations
      3. 3. The Need for Strategic Alignment
      4. 4. The Need to Introduce a New Business Model
      5. 5. The Need to Protect the NewCo
      6. 6. The Need to Bet to Win
    2. Summary
  14. Chapter 4 Containing the Chaos: An Innovation Stage-Gate
    1. Lean Learning Loops and a Perception of Chaos
    2. The Innovation Stage-Gate
    3. Staffing the Innovation Stage-Gate
    4. Key Insights
  15. Chapter 5 Working with the Performance Engine: Graduated Engagement
    1. The Problem: Where You Stand Depends on Where You Sit
      1. Contracts 101
      2. The “Other” Category in Procurement
    2. The Root Causes of Resistance
    3. The Role of Game Theory
      1. The Samaritan Game
      2. The Watchdog Game
    4. Summary: Managing Resistance to Innovation
    5. Key Insights
  16. Chapter 6 Achieving Strategic Alignment: Asset-Based Opportunity Spaces
    1. Why Us?
    2. Asset-Based Opportunity Spaces
    3. John Rossman on Innovation the Amazon Way
    4. Key Insights
  17. Chapter 7 Introducing a New Business Model: The Business Model Pyramid
    1. The Problem: Business Model Inertia
    2. What Is a Business Model?
    3. How Do You Do Business Model Innovation?
      1. 1. Start with a Clear Understanding of Customer Value
      2. 2. Identify Business Model Options
      3. 3. Study Business Model Risks Broadly
      4. 4. Model the Risks to the Core Business
      5. 5. Reduce the Risks Using Business Experiments
      6. 6. Incubate the Business at Small Scale
    4. Key Insights
  18. Chapter 8 Organizing for Growth: The Separate-but-Connected Model
    1. The Separate-but-Connected Organizational Model for New Ventures
    2. Overcoming Resistance
    3. Vijay Govindarajan on Making Strategic Innovation Work
    4. Key Insights
  19. Chapter 9 Making the Bet to Win: Ambidextrous Leadership
    1. Michael Tushman on Ambidextrous Leadership
    2. Key Insights
  20. Chapter 10 Yes … And: Making Lean Startup Work in Large Organizations
    1. Complementary Practices for Lean Startup in Large Organizations
      1. 1. Innovation Stage-Gates: Reconciling Lean Learning Loops with the Need to Demonstrate Discipline
      2. 2. Graduated Engagement: Developing MVPs in the Context of the Performance Engine
      3. 3. Opportunity Spaces: The Value Hypothesis and the Need to Create Strategic Alignment
      4. 4. The Business Model Pyramid: The Business Model Hypothesis and the Need to Manage Internal Risks
      5. 5. Organizing for Growth: The Growth Hypothesis and the Separate-but-Connected Organizational Model
      6. 6. Making the Bet to Win: Ambidextrous Leadership
    2. Conclusion
  21. References
  22. Index

Product information

  • Title: Lean Startup in Large Organizations
  • Author(s): James A. Euchner
  • Release date: February 2022
  • Publisher(s): Productivity Press
  • ISBN: 9780429783326