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The Lean Enterprise: How Corporations Can Innovate Like Startups, by Trevor Owens, Obie Fernandez
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The first and most comprehensive book on bringing the startup mindset into large organizations. Forget vague notions of creating an "innovative culture". This book reveals the methodologies, tools, and incentive structures guiding the world's largest organizations to reclaim their innovation prowess.
Even in a tough economic climate, small startups have found ways to create innovative products in shockingly short timeframes. So why should larger, more established companies take notice? Because they have everything to gain when they examine and adopt the process, strategies, and mentality of high-growth startups. The guidelines in this book will help companies shake the lethargy, bureaucracy, and power struggles that plague large organizations.
At the heart of this comprehensive resource is a practical approach to innovation based on specific timetables, compensation structures, and financial investments. Respected thought leaders in lean startup methodologies, the authors cover successful enterprise development, development innovation labs, corporate venture arms, and acquisition and integration of startups.
- Essential listening for product managers, directors, senior executives, and even board members of Fortune 2000 companies
- Presents the tools and methodologies large businesses need to compete with a new generation of highly empowered startups
- Covers startup culture while identifying the forces that are stunting growth in large enterprises
- Offers a comprehensive, practical approach for developing exciting products and opening vast new markets
Don't be mystified by the success of startups. Master the methods of this new generation and compete on a level playing field.
- Sales Rank: #13789 in Audible
- Published on: 2014-05-14
- Format: Unabridged
- Original language: English
- Running time: 492 minutes
Most helpful customer reviews
16 of 16 people found the following review helpful.
Value can be created anywhere.
By Daniel James
The lean movement is new, but value creation is as essential to the human experience as consuming or learning. We all do it. Our businesses do it.
However, somewhere along the line, as firms scale, they tend to lose their mojo. The markets shift. Their teams get too big. They stop rewarding failure. And their pace of innovation grinds to a halt.
These organizations need a hand. A book. A handbook. This handbook.
Why? Because it is thoroughly prescriptive.
Skunkworks, intrapreneurship, innovation labs and innovation colonies breed innovation. Innovation requires funding. Funding is contingent upon metrics. Metrics are tied to accounting. This process begets success, but then what?
How should compensation work? Answered in this book.
Where does vision fit in? Answered in this book.
What is the Lean Enterprise process? Answered in this book.
Most importantly, multiple paths to innovation are explored: incubation, acquisition, investment, etc. Options for new value creation abound.
If you have been around innovation, or even if this is your first foray into the topic, this book is well worth the investment.
10 of 10 people found the following review helpful.
Bring Lean Startup Principles to Your Company
By Jeremey Donovan
The Lean Enterprise answers the question, "How can I drive corporate innovation by instilling the lean startup ethos in my organization?" The book answers this question incredibly well by advising executives to set up an innovation colony with the following conditions:
1. physical, financial, & organizational autonomy
2. equity incentives for employees as a trade-off for lower base compensation and the high risk of job loss
3. Access to a large pool of potential projects
At first, I really struggled with the authors' premise on two levels. First, I did not feel that companies would agree to the autonomy conditions. Second, I did not feel that many "regular" employees would agree to the high-risk, high-reward trade-off. However, it eventually dawned on me that the book is geared toward companies that do not want to lose the tiny but extremely valuable set of employees who would otherwise leave to start their own companies. If that keeps you up at night, this book is for you.
I appreciated the case studies sprinkled throughout the book. As far as I could tell, none of the companies individually featured applied ALL of the authors' lessons. However, collectively they did and I think it is reasonable that the authors put a stake in the ground for what the ideal innovation colony looks like.
Beyond that, you get a good survey of:
a. lean startup principles: disruptive ideas, small cross-functional teams, customer development, minimum viable product, rapid experimentation, pivot or persevere decision making based premeditated success criteria, etc.
b. entrepreneurial financing and venture-capital accounting
c. innovation accounting (i.e. focus on metrics that matter)
The book also does a good job of exploring different corporate innovation strategies including: incubating internally; acquiring early; and investing.
Finally, the book does a good job of giving credit to Eric Ries for the principles he popularized in his 2011 book. However, I would have like to have seen credit given to Steve Blank and Bob Dorf who kicked the whole thing off in 2005 with their exceptionally valuable but admittedly textbook like "4 Steps to the Epiphany."
10 of 11 people found the following review helpful.
Must read for Chief Innovation Officers
By Tristan L. Kromer
The most comprehensive work on the subject of applying Lean Startup methodology to large corporations to date. It covers a range of practical tactics for lean teams to investment approaches while keeping a consistent overall narrative.
This is not a typical coma inducing business books. It keeps you engaged to the last sentence. It's one of the most enjoyable business books I've read.
In addition to providing a great overview of different approaches, it's packed with the best interviews on the subject so far. The authors don't skimp and include interviews people who disagree with parts of their main innovation colony thesis.
It stays at a fairly high level, best suited to Innovation Officers and C-level execs. If you're a PM, team member, or accelerator manager looking for something about dealing with culture change and how to lead lean teams, you'll have to go back to Jeffrey Liker's The Toyota Way to Lean Leadership.
Overall, Lean Enterprise is a book that all large companies should steal liberally from when considering their strategy for innovation.
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