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)?

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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.

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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. […].

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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.

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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.

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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.

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

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?

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.

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.”

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Why Business Leaders Need to Read More Science Fiction

Harvard Business

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.

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

Harvard Business

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.

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

Harvard Business

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.

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.

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

Harvard Business

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.

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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.&#

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Uber Is Finally Realizing HR Isn’t Just for Recruiting

Harvard Business

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.

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.

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. What about innovation?

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.

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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.

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.

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

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.

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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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.

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

Harvard Business

Innovate products, services, and processes. Hedge funds and used car dealers use such data to create and leverage asymmetries. Important prongs of Kirscher’s approach include innovating by using artificial intelligence to better screen resumes; informationalizing by using the Hogan score to better understand “grit” (a predictor of success at Morningstar); and making better decisions, bringing greater transparency to the measurement of hiring success and failure.

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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. 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.

Even Senior Executives Need a Side Hustle

Harvard Business

Hedge against uncertainty. Intrigued by technology and innovation, Achan took the initiative to develop two iPhone apps. Indeed, the Center for Talent Innovation’s research on sponsorship shows that one of the best ways to attract a coveted senior-level sponsor is to develop a strong personal brand. Being an entrepreneur is a sign of ambition and innovation — two traits that most leaders love to be associated with. Gary John Norman/Getty Images.

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?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).

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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.

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Warren Buffett Is Betting the Airline Oligopoly Is Here to Stay

Harvard Business

” Some of that profit is the result of innovative pricing models. One example would be activist hedge funds, which are known to push for and successfully implement product market strategies that increase the market share of a target firm at the expense of its competitors. Warren Buffett got burned with an airline investment in the 1990s.

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

To Build Your Resilience, Ask Yourself Two Simple Questions

Harvard Business

Her team had found ingenious ways to shave costs and innovative ways to add value for the client. Failure is sometimes lauded as a key to successful innovation, but it takes a psychic toll on the manager. One of my students at London Business School joined a hedge fund and was bummed when he was laid off at the start of the financial crisis. In an era where business keeps moving faster, it is no small wonder that resilience has become the new must-have executive skill.

Companies That Do Right by Their Workers Start by Elevating Their Definition of Success

Harvard Business

Those employees work at two of Britain’s most-admired retailers, John Lewis department stores and Waitrose supermarkets, each of which has carved out a powerful bond with customers, both of which have unveiled big innovations in terms of branding, merchandising, and e-commerce. There are no public shareholders clamoring for higher dividends, no hedge funds gorging on management fees. Evening Standard/Stringer/Hayon Thapaliya/Getty Images.

3 Ways to Get Your Own Digital Platform

Harvard Business

However, this may have been a hedging strategy as Starbucks built up its own digital capability, including a popular app and payment system. So you want to have a digital platform. It’s only natural — all the cool kids do.

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.

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. Innovation in mechanical and electrical systems. Innovation in workplace systems. It is not a hedge.

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.

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7 Skills That Aren’t About to Be Automated

Harvard Business

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. 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.