Name: Insights: The Key Difference Between Old and Modern Corporations
Uploaded: 2020-01-15
Duration: 1 min 38 s
Description: According to 'The Lean Startup' author Eric Ries. (February 2018)

 In your book, The Startup Way, you talk about the difference between an old fashioned corporation and a modern corporation. Would you talk about that a little bit? Sure. A modern company is one where I can just randomly pick any person the organization, and I could ask them, if you had a good idea about how to move this company into the future, how would you get it implemented? How would you get it tested to find out if it actually is a good idea? I've done this exercise many times. And most companies today, people look at you like, I have no idea. I guess I'd ask my manager's manager's manager to ask their peer-wise subordinate-- by the time they've described to you the process, it's like, forget it. Obviously, this is never going to happen. So a modern company is one that views the creativity and talent of every employee as too precious a resource to waste. And so there's a system, a practice for doing it. Because most ideas are terrible. Mm-hmm, mm-hmm. Right? It's not that we can implement everybody's ideas. We have to have a fair and scientific way to test ideas. It has to be no big deal. And we go back to thinking about entrepreneurship as a corporate capability. That, to me, [? is ?] the defining attribute of a modern company. Entrepreneurship [? as ?] corporate capability means we want to make sure all the entrepreneurs in the organization are properly trained and literate in these concepts. But how are you going to identify the entrepreneurs in advance? The whole point of entrepreneurship is we never know where it's going to come from, right? I've met some of the most unlikely entrepreneurs over the years, where if you look at their resume before they became a-- you'd be like, this person never had a creative thought in their life, and boom, they're an amazing startup founder. So in order to actually address the entrepreneurs in the organization, you have to address everybody. 

Insights: The Key Difference Between Old and Modern Corporations

Leadership

According to 'The Lean Startup' author Eric Ries.

Key Difference Between Old and Modern Corporations

According to 'The Lean Startup' author Eric Ries. (February 2018)

in your book the startup way. You talk about the difference between an old fashioned corporation and a modern corporation. Would you would you talk about that a little bit? Sure, a modern company is one, or I can just randomly pick any person the organization I can ask them. If you had a good idea about how to move this company into the future, how would you get it implemented? How did you get it tested? To find out what actually is a good idea? I've done this exercise many times. Most companies today, people look at you like I have no idea. I guess I asked my manager's manager's manager to ask their peer wise subordinate that by the time they described to the process, it's like, Forget it. Obviously this is never gonna happen. So a modern companies one that views the creativity and talent of every employee is too precious of resource and waste. So there's a system of practice for doing it because most ideas are terrible. Most likely, it's not that we can implement everybody's ideas. We have to have a fair and scientific way to test idea that has to be no big deal and that we go back to thinking about entrepreneurship is a corporate capability that we had, like the defining attribute of a modern company controversy. The corporate capability means we want to make sure all the entrepreneurs, the organization, are properly trained and literate in these concepts. But how you gonna identify the entrepreneurs in advance? The whole point of entrepreneurship is we never know where it's gonna come from, Right? I've met some of the most unlikely entrepreneurs over the years where if you look at their resume before they became like, spurs never had a creative thought in their life and boom, they're an amazing startup founders. So in order to actually address theon towards the organization, have to address everybody.