How Big Companies Can (and do) Innovate Like a Start-Up

Leading Blog

T HE INNOVATION WE PRIZE at successful start-ups is a mindset that is brought into the start-up and not necessarily the inherent quality of every start-up. Innovation isn’t something that just happens; we create the conditions for it. Big organizations can innovate like small start-ups. While organizational size complicates innovation, “scale if properly exploited could actually be an advantage, not a liability, for innovation.” Creating an Innovation Strategy.

What If Google Had a Hedge Fund?

Harvard Business Review

Acutely aware of the competitive edges timely data offers sophisticated investors, the company's ever-entrepreneurial cofounder once proposed that Google launch a hedge fund. Google may not have a hedge fund, but it's unlikely that high IQ hedge funds aren't using Google's data to better manage their own situational awareness and risk. What kind of hedge funds might an Amazon set up (remember, Jeff Bezos actually came from a New York hedge fund)?

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How Women Can Develop — and Promote — Their Personal Brand

Harvard Business

We all know developing a personal brand is valuable, since a strong reputation can put you on the radar for exciting career opportunities. Research by Sylvia Ann Hewlett at the Center for Talent Innovation shows that cultivating your personal brand is one of the best ways to attract a sponsor — and professionals with sponsors are 23% more likely than their peers to be promoted. Your brand is also a powerful hedge against professional misfortune.

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5 Characteristics of Digital Giants that Enable Domination

Skip Prichard

What are the most innovative companies doing to position themselves? While they are focused on optimization, their shareholders continue to demand that they pay out greater dividends or engage in larger share buy backs instead of investing their profits for future innovation.

LeadershipNow 140: April 2019 Compilation

Leading Blog

CX’s Biggest Problem is Finding the RIGHT Problem via @customerthink How do we hedge against bad problem framing? How to Create a Culture of Innovation from @Ex2Lead. The Rise of Importance of Personal Development Education in Higher Education via @pulitzercenter. See more on Twitter. * * * Like us on Instagram and Facebook for additional leadership and personal development ideas.

Why Leaders Need to Think More Like Professional Gamblers

Leading Blog

Should they make a big bet, hedge their position, or just wait and see? Many years later, French mathematician Pierre-Simon Laplace developed Bayes’s idea into a powerful theory, which we now know as the Bayes Theorem. Bayes is relevant to modern leaders because it can help them develop an approach to uncertainty that is less deterministic and more probabilistic. Our instinct for determinism may well have been an evolutionary innovation.

Great Innovators Create the Future, Manage the Present, and Selectively Forget the Past

Harvard Business Review

But as anyone who has ever tried to lead innovation knows, the challenge goes beyond being ambidextrous enough to manage today’s business while creating tomorrow’s. To deal with this problem, over the course of thirty-five years of working with and doing research in corporations around the world, I have developed a simple, practical framework that recognizes all three competing challenges managers face when leading innovation.

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The Future of Cities Depends on Innovative Financing

Harvard Business Review

They are developing horizontally, not vertically, with vast areas of low sprawl reaching out for miles from Sao Paolo, Lagos, New Delhi, Guangzhou, Jakarta, and many others. As I travel to urban development conferences, I often hear people bemoan an infrastructure funding gap, but the hard truth is there is no funding gap. Investors from hedge funds to insurance companies are operating in an environment of low yields, near-zero interest rates, and a glut of savings.

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The Reciprocity Advantage

Leading Blog

Reciprocity and advantage will spark new business models for innovation and growth. In a VUCA World, partnerships are hedges against risk, but they will also be more attractive ways to innovate and grow scale. The authors have created a score card to direct your development efforts. G IVE TO GROW. Partner for greater value for more players.

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Learn or Die

Leading Blog

Our ability (and willingness) to learn impacts our personal and business growth, operational excellence, and our capacity to innovate. A particularly fascinating and eye-opening chapter is on Ray Dalio’s Bridgewater Associates, the largest hedge fund in the world. This book will show you how. * * * Like us on Facebook for additional leadership and personal development ideas.

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Understanding Private Equity: What You Need to Know

Strategy Driven

It primarily involves investing in mutual funds and hedge funds, which offer the opportunity to invest where you may not be able to meet the minimum capital alone. If you are looking for an alternative investment method, you might want to consider Private Equity investment.

Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

Unlike national oil companies and oil majors that typically take five to 10 years to develop conventional oil reserves, these independent and “unconventional” players have improved their drilling and fracturing technology to the point where they can respond within months to temporary spikes or dips in the market. Most major producers with large balance sheets will likely hedge their bets and attempt both. Developing new digital efficiencies.

If Ford Wants to Beat Tesla, It Needs to Go All In

Harvard Business

” [Ford Smart Mobility’s] role is to design, develop, build, invest, and grow these mobility services. Companies have traditionally gone the self-disruption route when they’ve wanted to develop products that their existing customers would value in the future. The idea is to create a new and separate division that meets competition while ensuring that new innovations are as minimally disruptive (in the old sense of the world) to the core business as possible.

Sustainable Leadership and Organizations: The Ideas of Martin Seligman

Michael Lee Stallard

Recent research from The Conference Board and the Corporate Executive Board make it clear that employee engagement is at dismal levels but eventually leaders will discover that embracing and behaving in ways that reflect the 24 character strengths creates Connection Cultures and develops the corporate character strengths necessary to produce sustainable organizations. (To

Uber Is Finally Realizing HR Isn’t Just for Recruiting

Harvard Business

All of this indicates that Uber leaders prioritized immediately useful services like recruitment over, for example, legal compliance systems, audits, and leadership development. As Pete Ramstad and I note in Beyond HR , leaders often have far better developed frameworks for the value proposition of the finance function than for HR. That is like setting up a finance organization to do exotic risk hedging before putting in place basic reporting and compliance.

Superbosses Aren’t Afraid to Delegate Their Biggest Decisions

Harvard Business

These “ superbosses ,” as I called them, spanned dozens of industries and included legendary figures such as fast casual restaurant magnate Norman Brinker, packaged foods titan Michael Miles, tech mogul Larry Ellison, hedge fund pioneer Julian Robertson, media icon Oprah Winfrey, and a host of others. Would you task a young protégé with generating the main strategy for a new real estate development — only two days before a big presentation with investors?

Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business

Innovation has the potential to transform the investment industry. Small startup firms are already developing proprietary technologies — such as machine vision, deep learning, and other innovations —– that could help large investors evaluate opportunities and risks with far greater accuracy and efficiency than was previously possible. Yet the world’s largest funds are closed off from these innovations.

Great Leaders Make Decisions | N2Growth Blog

N2Growth Blog

Walt Disney, one of the greatest creative talents and true innovators of our time realized the value of action when he said: “The way to get started is to quit talking and begin doing.&# It was Andy Grove the former Chairman and CEO of Intel and Time Magazine’s 1997 Man of the Year who said “You have to take action; you can’t hesitate or hedge your bets. A critical part of the talent management life-cycle is leadership development.

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The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business

Too many companies prioritize quarterly earnings over long-term innovation, human capital investment, and brand development, and many people believe short-term shareholders are to blame. Turning from evidence on liquidity to evidence on short-term investors, activist hedge funds are seen as the epitome of the latter – allegedly stripping assets and piling on debt to make a quick buck. Productivity also improves in plants sold by hedge funds. Tim Evans for HBR.

Michael Fraccaro, CHRO at Mastercard, on the value of business resource groups

HR Digest

I was at a conference recently and one of the speakers remarked that “Culture hedges against the risk of uncertainty.” It can help them innovate. Michael Fraccaro: Understanding the trends that are driving change for our business and making sure we innovate our people practices to address those changes is essential to how we compete, succeed and set ourselves apart as a company. That requires us to invest in developing both current and future skills.

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The Disruption of Venture Capital

Harvard Business Review

An organization's capabilities become its disabilities when disruption is afoot." – Clayton Christensen, The Innovator's Solution. Over the years, venture capitalists have been some of the most ardent students of disruptive innovation. Hedge fund investors who deploy capital in large and liquid markets can scale their time well. Bill Ackman's hedge fund Pershing Square, for example, has $9 billion in assets under management and fewer than ten investment professionals.

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3 Things Driving Entrepreneurial Growth in Africa

Harvard Business

Fatigue may be setting in for some Western investors’ interest in African innovation, particularly those that have yet to reap rewards to brag about. Here are three things that Western investors should want from African entrepreneurs: a focus on the top of the pyramid, control over factors of production, and innovation in distribution rather than in products. Innovation in Distribution.

Why Consensus Kills Team Building | N2Growth Blog

N2Growth Blog

Great leaders intrinsically understand that team building catalyzes collaboration, creates both disruptive and incremental innovation, facilitates a certainty of execution, and is one of the key foundational elements associated with creating a dynamic corporate culture. Team building, group dynamics, talent management, leadership development, and any number of other functional areas are much more about clarity, focus, aligning expectations, and defining roles than creating equality.

Is Apple Losing its Creative Mojo?

Harvard Business Review

Likely, Apple won’t enter all of the markets mentioned above, but it will perhaps wait to see which of these opportunities develops best in terms of Apple’s ability to offer a disruptively superior experience to the status quo. In this, we see a new approach to innovation at Apple, a risk driven approach where Apple sows many seeds, hedges its bets and will reap the most promising opportunity. Innovation Strategy

Even Senior Executives Need a Side Hustle

Harvard Business

Even senior executives who want to stay in their corporate jobs should strongly consider developing at least one side income stream, whether it’s consulting, speaking, coaching, or creating some other product or service. Hedge against uncertainty. Intrigued by technology and innovation, Achan took the initiative to develop two iPhone apps. Being an entrepreneur is a sign of ambition and innovation — two traits that most leaders love to be associated with.

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Three Ways to Succeed by Breaking Convention

Harvard Business Review

A unit of a company that sells janitorial supplies to industrial customers spent years trying to develop a new cleaning agent that was more effective and "better smelling" than its previous offering. By adding the compound to a product line that was already in development, the company was able to create more buzz and profits from a new category-defying line, scented household decorative products. Innovation Product development Research NPR

Does Your Company Know What to Do with All Its Data?

Harvard Business

A team of data scientists may employ a series of clever analyses to yield an important insight, but that insight will die on the vine if others in the organization don’t carry it forward by developing a deeper understanding of the implications, making a critical decision, building it into a product, or leveraging it in interactions with customers. Innovate products, services, and processes. Hedge funds and used car dealers use such data to create and leverage asymmetries.

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Let Data Ask Questions, Not Just Answer Them

Harvard Business Review

Innovators more intent on inventing the future than predicting it should look hard at how cutting-edge scientists now computationally massage their big data. AH, not AI, will increasingly inspire tomorrow’s breakthrough innovation. As The Economist recently observed : “More than 90 groups of scientists are now developing hypothesis-generation software. The breakthrough innovator’s hypothesis doesn’t have to come from a human.

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The Right Entry Point for Emerging Markets

Harvard Business Review

The topic — part of a series on innovation sponsored by Singapore's Economic Development Board and coordinated by Harvard Business Review — was "What's the Right Entry Point for Emerging Markets: Target Customers at the Bottom or the Middle of the Pyramid?". Global giants have to increasingly ask emerging markets branches to go from acting as local distributors to serving as local developers. Global business Innovation Procter & Gamble

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How to Get People to Collaborate When You Don’t Control Their Salary

Harvard Business

” People in industries as different as commercial real estate, pharma, biotech startups, hedge funds, and public school districts worried about how to transform a competitive, star-driven culture into a collaborative one when they had no power to juggle financial rewards and no influence over promotion decisions. The parallels with business are clear: Stars are a crucial but perhaps fragile source of innovation and competitive advantage.

Should Dual-Class Shares Be Banned?

Harvard Business

Comcast, DISH Network, AMC holdings, Liberty Media, News Corporation, and Viacom have traditionally had dual-class shares — arguably to maintain news independence — a more important recent development is the widespread adoption of dual-class structure by technology companies. For example, Pepsi’s transformation from a purveyor of sugary drinks toward healthy snacks would have been hindered had hedge funds succeeded in their demands. CAPTION TEXT HERE/Getty Images.

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3 Ways Your Online Side Gig Can Earn Customers’ Trust

Harvard Business

Vowing never to let that happen again, he developed an innovation that’s become standard in the online course development world: launching small pilot offerings first. For the new course he hoped to develop, Iny sent an email out to his list of a few thousand people, offering fifty slots in a pilot program. “It was just trying to hedge my bets, so if nobody bought, I could walk away from it.” Dorling Kindersley/Hayon Thapaliya/Getty Images.

7 Skills That Aren’t About to Be Automated

Harvard Business

Today’s young professionals grew up in an age of mind-boggling technological change, seeing the growth of the internet, the invention of the smartphone, and the development of machine-learning systems. This problem of extending the automatic reasoning of AI systems to understand the context of their decisions is highly complex, and creative innovation, like the one at Google, is usually needed to push the effort forward. John Fedele/Getty Images.

Why Apple’s New HQ Is Nothing Like the Rest of Silicon Valley

Harvard Business

Those collisions, as research (mine and others’) shows , increase learning, collaboration, and ultimately innovation. Today the almost finished project conveys Jobs’s aspirations through significant breakthroughs in the building systems of our time: Innovation in exterior building systems. Innovation in structural systems. To achieve the curvature of a perfect circle while minimizing landfill use, the project developed its own concrete plant.

Universities Are Missing Out on an Explosive Growth Sector: Their Own

Harvard Business Review

Education is on the brink of rapid change that will create a lot of value for innovators. One representative example: April’s Education Innovation Summit , where more than 2,000 people energetically discussed how technology and markets are charting the future of education globally. At the Education Innovation Summit the only university endowment in attendance was the University of Texas‘s UTIMCO. Disruptive innovation Education Information & technology

Learning on Speed

Harvard Business Review

The Kahn Academy, founded by Salman Kahn (a former hedge fund manager), is a not-for-profit, online venture that is currently revolutionizing K-12 education. And Hart is not the only one who has developed this skill. These developments stand in sharp contrast to what Apple has focused on. Education Innovation TechnologyApple recently got lots of press for its move into textbook publishing, but its move was secondary to another announcement made a few weeks earlier.

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Why Social Mobility Is Crucial to America's Economy

Harvard Business Review

As historians have increasingly appreciated, technology is usually a secondary cause in economic development. It requires a good many people willing to do the hard and risky work of developing early advances into something that truly works in the marketplace. A major reason was its failure to develop a deep-seated culture of entrepreneurship and technology. We need energetic innovators to turn the magic of artificial intelligence into benefits for a great many people.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business

By comparison, online lenders face capital costs that can be higher than 10%, sourced from potentially fickle institutional investors like hedge funds. For banks that choose to develop their own systems to compete head-on with new players, significant investment is required to automate routine aspects of underwriting, to better integrate their own proprietary account data, and to create a better customer experience through truly customer-friendly design.

What Initial Coin Offerings Are, and Why VC Firms Care

Harvard Business

Non-profits usually hold about 10-20% of the total cryptocurrency they issue; as Ethereum did in their ICO in 2014, with 20% going to the development fund and the remaining going to the Ethereum Foundation. ” Many of them are in China, but there are also hedge funds and bitcoin investment funds who hold massive amounts of bitcoin. We now have a way to easily fund open source software, housed under foundations rather than corporations, that can truly drive faster innovation.

Is Economics Ready for a New Model?

Harvard Business Review

The conviction spread that, thanks in part to financial innovation, the world's developed economies had become more resilient even as financial markets became more volatile. The hope, expressed in the piece mainly by William "Buz" Brock of the University of Wisconsin, was that economists would soon be able to use tools developed by physicists, biologists and other hard scientists to predict market behavior. Disruptive innovation Economy Finance

How Blockchain Is Changing Finance

Harvard Business

But the solution to this innovation logjam has emerged: blockchain. Blockchain was originally developed as the technology behind cryptocurrencies like Bitcoin. Menlo Park venture capital firm Andreessen Horowitz joined USV in investing in Polychain Capital , a hedge fund that only buys tokens. Our global financial system moves trillions of dollars a day and serves billions of people.

Parting Ways with Public Trading

Harvard Business Review

In the early stages, incubation and launch, historically venture capitalists and angels (in addition to the "friends, families and fools" beloved of the entrepreneurship literature) have provided seed funds for organizations to develop an idea. He plans to make significant R&D investments, hire lots of sales people to approach enterprise customers, expand in emerging markets and develop entirely new product categories. Competition Disruptive innovation Strategy

Research: Index Funds Are Fueling Out-of-Whack CEO Pay Packages

Harvard Business

This sweeping development known as “common ownership” – the same firms owning the competing firms in the same industry – is relatively new. They may choose it for other reasons, for example, to encourage cooperation or innovation. There’s evidence of this dynamic in the tension between smaller undiversified investors (such as hedge funds) and large asset management companies. CEOs get paid handsomely.