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.

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)?

Hedge 15

Nick Gogerty: Part 1 of an interview by Bob Morris

First Friday Book Synopsis

Nick is the author of The Nature of Value: How to Invest in the Adaptive Economy (Columbia University Press 2014) and involved in a technical confidential project with one of the world’s largest global macroeconomic hedge funds. He lectures in Columbia University’s MBA value investing program on innovation, macro-economic portfolio, and scenario risk management.

Hedge 85

Nick Gogerty: Part 2 of an interview by Bob Morris

First Friday Book Synopsis

Nick is the author of The Nature of Value: How to Invest in the Adaptive Economy (Columbia University Press 2014) and was involved in a technical confidential project with one of the world’s largest global macroeconomic hedge funds. He lectures in Columbia University’s MBA value investing program on innovation, macro-economic portfolio, and scenario risk management. […].

Hedge 76

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. Here are a selection of tweets from April 2019 that you don't want to miss: You Are the Captain of Your Ship by @FSonnenberg. VIDEO SHORT: April 29, 2019 Monday Motivation @HighPointU @NidoQubein The more you celebrate your life the more there is to in your life to celebrate.

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? Our instinct for determinism may well have been an evolutionary innovation. O NE OF the unfortunate side effects of living in an age of accelerating technology is having to deal with increased uncertainty.

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. Innovation & Entrepreneurship Book. Box 1 cannot execute Box 3 innovations.

Hedge 16

The Future of Cities Depends on Innovative Financing

Harvard Business Review

Investors from hedge funds to insurance companies are operating in an environment of low yields, near-zero interest rates, and a glut of savings. Innovation in Cities. Social impact bonds could be one of the most innovative and effective.

Bond 16

What Markets Do and Don’t Get About Innovation

Harvard Business Review

In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. The idea was to transform his theory of disruptive innovation into an investment thesis. Disruptive innovation can take several forms, and the market understands some types better than others. Why the market values some kinds of innovation better than others. This is when disruption theory can inform investors on the value of innovative companies.

Five Rules for Innovating in a Shaky Economy

Harvard Business Review

When stock markets gyrate and growth prospects darken, it's tempting to rein in innovation programs and hoard cash. Companies can do five things to hedge their bets in turbulent times while opening up options for the future: 1. Re-visit big, inflexible projects — The 80/20 rule often applies to corporate innovation portfolios; a few projects consume the lion's share of cash. The company has invested in this brand's innovation in many ways. Innovation

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. More than ever, it truly is learn or die. Learning is impacted by our “reflexive ways of thinking, the rigidity of our mental models, and the strength of our ego defense systems.”

Hedge 310

The “Next Practices” of Strategy-Setting

N2Growth Blog

Be Innovative and engaging, not flat and uninspired – countless management consultants employ the same old, tired planning processes that generate little interest or energy. By including a Culture By Design perspective in your planning approach you hedge the bet that the organization can succeed in the execution of its plans. Are your strategic planning practices flat and uninspired? Have you reduced your planning process to a once per year, budgeting exercise?

Sustainable Leadership and Organizations: The Ideas of Martin Seligman

Michael Lee Stallard

2 Comments so far william czander on May 31st, 2010 Happiness coaches are part of the great conspiracy that began some 20 years ago when CEO’s , hedge fund managers and bankers discovered if they outsourced jobs to China and India it would increase the bottom line and they would all get rich.

Purpose Point of View

Strategy Driven

It animates us as people and fuels organizational innovation, value creation, and growth. No matter which way you turn, the focus on ‘purpose’ is everywhere.

Hedge 118

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.&#

Blog 400

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.

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.

Hedge 28

Kill Your Business Model Before It Kills You

Harvard Business Review

Still the agency drags on with its year-old push to end Saturday delivery , the most powerful innovation they can muster — which to be implemented would still take 2 years. Intuit had many failures as part of their innovation process. Innovation Managing uncertainty Strategy

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

Harvard Business Review

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. They are supply-side architectural innovations.

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

Harvard Business Review

Most major producers with large balance sheets will likely hedge their bets and attempt both. These trends will require oil producers to shift their focus away from transportation and diversify towards innovative petrochemical products to capture market share in diverse end uses such as clothing and construction materials. Economy National competitiveness Disruptive innovation International business Digital Articlehbr staff/bettmann/Getty Images.

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.

Hedge 17

Is Apple Losing its Creative Mojo?

Harvard Business Review

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 We now have a date: September 9, the day that iPhone6 is expected to be launched. While there is a still a month to go , the iPhone launch circus and its usual cast of characters are all already in town.

Why Business Leaders Need to Read More Science Fiction

Harvard Business Review

Singapore has overtaken Silicon Valley as the world’s innovation hub after FDA regulation prompts a brain drain from California. Rising sea levels flood Manhattan in Kim Stanley Robinson’s New York 2140 , prompting hedge fund managers and real estate investors to create a new intertidal market index. Leadership Innovation Creativity Digital ArticleAt the end of the 19th century, New York City stank.

How the Carl Icahns of the World Benefit Firms but Not Workers

Harvard Business Review

” Both stories contain some truth, as a forthcoming study of activist hedge funds demonstrates. The early activists were pension funds, but starting in the 1990’s some hedge funds adopted the strategy. There are two stories you can tell about finance in America.

Hedge 16

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. Global enterprises and entrepreneurs alike will be able to use big datasets to generate business hypotheses around innovation and new value creation. The breakthrough innovator’s hypothesis doesn’t have to come from a human.

Hedge 10

The Real Reason CEOs Don’t Like Activist Investors

Harvard Business Review

When executives complain about activist hedge funds, it’s often under the cover of short-termism. Keusch looked at the impact of activist hedge funds from 1994 to 2012, to see what impact they had on management.

Hedge 16

?Numbers Show Apple Shareholders Have Already Gotten Plenty

Harvard Business Review

9, armed with about 1% of Apple’s outstanding stock, the hedge-fund activist published an open letter to Apple CEO Tim Cook, urging him to accelerate the company’s stock repurchases by making a tender offer. Another hedge-fund activist, David Einhorn, was then playing that role).

EPS 16

Kill Your Business Model Before It Kills You

Harvard Business Review

Still the agency drags on with its year-old push to end Saturday delivery , the most powerful innovation they can muster — which to be implemented would still take 2 years. Intuit had many failures as part of their innovation process. Innovation Managing uncertainty Strategy

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?". How should companies hedge against the practice of copying your products as you go into those markets? The other part of the equation (which I didn't mention) was to use an integrated business model as a hedge.

Hedge 17

Why Social Mobility Is Crucial to America's Economy

Harvard Business Review

We need energetic innovators to turn the magic of artificial intelligence into benefits for a great many people. That's going to be difficult, as innovators will look at strapped governments and consumers and see an uncertain payoff. Economy Entrepreneurship Innovation

Hedge 16

Why GE’s Jeff Immelt Lost His Job: Disruption and Activist Investors

Harvard Business Review

Innovation at GE was on a roll. Since then Flannery has replaced Immelt’s vice chairs responsible for innovation. ” Instead of lean innovation programs, there is a mandate to cut $2 billion in expenses by the end of next year, lift profits, and raise the dividend. Are lean innovation and the startup way a failure in large companies? The first things to go are R&D centers and innovation initiatives. YASUYOSHI CHIBA/Getty Images.

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

Parting Ways with Public Trading

Harvard Business Review

It is far more likely that the hard work of restructuring will be the task of private equity firms, leveraged buyout firms or hedge funds, all of whom have a financial motivation to make whatever disengagement decisions are necessary to profit from the eventual re-sale of a healthier company.

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. 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. On January 3, Kahn Academy announced that Vi Hart would be moving to Mountain View and joining its team.

Video 17

Three Ways to Succeed by Breaking Convention

Harvard Business Review

But by offering stripped down samples (sometimes called "Model T" versions) to gather direct and unbiased customer input, organizations can innovate around unanticipated answers, especially when conventional data is not available or is not useful. The company then dedicated engineering resources to add that quirky feature, a more cost-effective approach than engineering a complex suite of features as a hedge that at least one of them might address a real customer need.

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. Doyne Farmer , a Los-Alamos-National-Laboratory-scientist-turned-hedge-fund-manager-turned-Santa-Fe-Institute-professor, has bent over backwards not to be ignorant and arrogant about economics. Disruptive innovation Economy Finance

End the Religion of ROE

Harvard Business Review

And functionally, there is no longer a need to ration financial resources; there's more money available than can be productively invested—which is why the financial industry is only minimally about investing, and all about flipping, swapping, hedging, engineering, and other forms of lever-pressing. So here's our candidate: we believe that corporations would do better for all their stakeholders and avoid the risks of runaways by focusing on Return on Innovation.

ROE 13

Uber Is Finally Realizing HR Isn’t Just for Recruiting

Harvard Business Review

That is like setting up a finance organization to do exotic risk hedging before putting in place basic reporting and compliance. No board would allow a finance function to focus exclusively on investor reporting or risk hedging, but this type of mistake is all too common when it comes to HR. Research by i4cp suggests that in higher-performing organizations, leaders more often see diversity and inclusion strategically, as supporting organizational culture and innovation.

“Trust Me, I’m a Leader”: Why Building a Culture of Trust Will Boost Employee Performance – and Maybe Even Save Your Company

Strategy Driven

And when they don’t feel safe, they don’t take risks – and where there is no risk taken, there is less innovation, less ‘going the extra mile,’ and therefore, very little unexpected upside. Do your employees trust you? The brutal truth is probably not.

Clinton’s Proposals on Stock Buybacks Don’t Go Far Enough

Harvard Business Review

But that will not in any way deter hedge-fund activists from demanding that companies do stock buybacks so that they can time their stock sales to take advantage of short-term, buyback-induced, stock-price boosts. HBR STAFF.

Hedge 17

How Amazon Trained Its Investors to Behave

Harvard Business Review

Well, he's a hedge fund veteran who has always taken a skeptical view of Wall Street, treating it more as a loopy rich uncle than the efficient information processor of standard finance theory. Clayton Christensen has long complained that standard financial metrics can be enemies of innovation and growth. Finance Innovation StrategyIn March 2000, Barron's reported that 51 Internet companies were burning cash so fast that they'd be broke by the end of the end of the year.

EPS 12

Monitor, Libya, and the Perils of a Blurred-Line World

Harvard Business Review

In times of change, businesses have to adapt and innovate. hedge funds? Disruptive innovation Ethics Public relationsThe headline in the Guardian last week read: The Monitor Group: Gaddafi's PR firm used academics. I think it's safe to say that the Monitor Group would prefer not to be known as "Gaddafi's PR firm." (And And not just because, at Monitor, they appear to prefer the spelling "Qhadafi.") The Cambridge, Mass.,

PR 14

Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business Review

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.