Aubrey Smith, early member of GE’s FastWorks initiative, will leverage her experience working with large, F500s on innovation transformation to talk through what it takes to drive a large-scale change within a complex enterprise. During this session, the audience will have the chance to work with expert coaches on exercises focusing on Portfolio Management (believe it or not, everyone has an innovation “portfolio” to govern) and Cultural change.

1. Lean Startup in the Enterprise
Becoming A Responsive Organization
Aubrey Smith | aubrey@sparkedadvisory.com

2. 2
$300,000
3D Printer
Zach Smith and Bre Pettis

3. 3

4. 4
Strategys MakerBot
Focus
Strategy
Market, Problems,
Solutions
People
Products
Process
Accountability
Culture
Tomorrow
Grow
Unknown
Entrepreneurs
Disruptive
Iterative and Responsive
Innovation Account and Funding
Discover
Today
Optimize
Known
MBAs
Core Focused
Linear Command & Control,
Rules, Efficient
Traditional Accounting
Execution

5. 5
The Big vs. The Small
SCALE DISTRIBUTION NETWORK PROCESS EXPERITSE
FOCUS SIMPLICITY TALENT SPEED TRUTH
Recreate

6. 6
Growth is…hard.

7. 7
Management is…hard.

8. 8
Growth management is…
the hardest.

9. Enterprise Growth DesertEnterprise Growth Desert
Companies
are dying
faster than
ever before.
Technology
has changed
the playing
field.
Competitors
are from new
places and
unfamiliar
industries.
Lean Startup in the Enterprise | Aubrey Smith 9

10. 10
Externalities
Easy to Blame
Companies
can’t afford to
innovate
Innovation may
require future
borrowing
needs
Regulation
won’t let us
Good ideas
are hard to
come by

11. 11
Biases Working Against Us
Psychological
Confirmation Bias
Recency Bias & Human Cognitive Limits
Winners’ Curse

12. 12
Biases Working Against Us
Social / Political Biases
Execution Obsessed

13. 13
Biases Working Against Us
Social / Political Biases
Crave Predictability

14. 14
Typical Organization Chart

15. 15
Stop. Wasting. Time.

16. 16
Question becomes…
Should vs Can.

17. 17Lean Startup in the Enterprise | Aubrey Smith
From Linear to Responsive
Linear Command and Control Control Through Learning Loops
Specification
Output
Build
Learn Measure
Task

18. 18Lean Startup in the Enterprise | Aubrey Smith
…But In Enterprise, Nothing’s Simple
Linear Command and Control Control Through Learning Loops
Specification
Output
Task

19. 19
Step 1
Build
Learn Measure

20. 20
Step 2
20
2
Portfolio
Vision
3
Portfolio
Management
1
Executive
Vision
Executive
Leadershi
p
Opportunity/
Portfolio Team
PMO
Actionable
Thin Slice
5
Market Opportunity
Technology Commercial
6
Measure
Metrics
Product Architecture
Loop 1
Vision
Loop
Loop 2
Portfolio
Loop
Loop 3
Market
Opportunity
Loop
Loop 4
Performance
Loop

21. 21
This is very hard.

22. 22
Begin with “Thin Slices”

23. 23
Start small to get big.

24. 24
…
24
2
Portfolio
Vision
3
Portfolio
Management
1
Executive
Vision
Executive
Leadership
Opportunity/
Portfolio Team
PMO
Actionable
Thin Slice
6
Measure
Metrics
Product Architecture
5
Market Opportunity
Technology Commercial
Loop 3
Market
Opportunity
Loop

25. 25
Lean Startup
Transformation
Incubate
& Disrupt
“Learn by
doing”
Accelerate
& Grow
“Build the
mechanism
to scale”
Transform
“Implement
Scaling”

26. 26Lean Startup in the Enterprise | Aubrey Smith
Incubate TransformAccelerate
People
Process
Product
Accountability
Culture
Small teams
Learning Loop:
Limited
H3 - Key technology
“breakthroughs”
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Portfolio teams;
Cross-portfolio teams
Learning Loop:
Portfolio Management
H2 - Cross-portfolio bets;
Extensions from the core
Executive teams; Portfolio
teams; P&L teams
Learning Loop:
Entire Organization
H1 - Core driven
product lines

27. 27
Incubate

28. 28
Teams: Learn in 90 Days
The Startup within Enterprise
- Builds organization learning
- Evidence-building for scaling
- Small, co-founder led
- Incubation
- Typically, technology-led
- Housed in R&D or Labs
Potential Team Cadence
• Week 1 – Kick off
• Problem, Solution, Business Model
• Week 2- Launch MVP 1
• Week 3 – Collect Metrics
• Week 4 – Pivot or Persevere
• Week 5-9 – Launch MVP 2
• Week 10 – Collect Metrics
• Week 12 – Pivot or Persevere

29. 29
The Tesla Problem
Lab:
Fertile ground for test & learn
Will they ever leave?

30. 30
Accelerate

31. 31Lean Startup in the Enterprise | Aubrey Smith
Growth Curves We Like
Value
Time

32. 32Lean Startup in the Enterprise | Aubrey Smith
WHERETOPLAY
HOW TO WIN
TRANSFORMATIONAL
Developing breakthroughs and inventing
things for markets that don’t yet exist
ADJACENT
Expanding from existing
business into “new to the
company” business
CORE
Optimizing existing
products for existing
customers
Serveexisting
markets&
customers
Enteradjacent
markets,serve
adjacentcustomers
Createnew
markets,target
new
customerneeds
Use existing products & assets Add incremental products & assets Develop new products & assets

33. 33Lean Startup in the Enterprise | Aubrey Smith
TRANSFORMATIONAL
ADJACENT
CORE
A Leading Consumer
Goods Company
A Diversified
Industrials Company
A Midstage
Technology Firm
80%
18%
2%
70%
20%
10%
45%
40%
15%
What’s the right portfolio mix?

34. Add: Intuit’s Mix
Lean Startup in the Enterprise | Aubrey Smith 34

35. 35
Industry
Competition
Maturity

36. 36
The Executive
Vision

37. The vision should be….
Be aspirational
Be defined from the customer’s
perspective
Allow room for optionality or pivots
Define what’s in and what’s out of
scope
Avoid ambiguous financial targets
37

38. 38Lean Startup in the Enterprise | Aubrey Smith
H3
H2
H1
What does your
portfolio look
like today?
What should
your portfolio
look like?
Describe factors impacting your portfolio
Portfolio - Exercise
1.Industry
2.Competition
3.Maturity
Where are you in the progression?
(Incubate, Accelerate, Transform)
How does the company progress from one
stage to another?

39. 39
Tools & Support
Incubate
& Disrupt
“Learn by
doing”
Accelerate
& Grow
“Build the
mechanism
to scale”
Transform
“Implement
Scaling”

40. Aubrey Smith | aubrey@leanstartup.co

41. Appendix
41