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The Lean Enterprise: How Corporations Can Innovate Like Startups
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Product details
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Audible Audiobook
Listening Length: 8 hours and 12 minutes
Program Type: Audiobook
Version: Unabridged
Publisher: Audible Studios
Audible.com Release Date: May 14, 2014
Whispersync for Voice: Ready
Language: English, English
ASIN: B00KC0ATZ4
Amazon Best Sellers Rank:
The Lean Enterprise answers the question, "How can I drive corporate innovation by instilling the lean startup ethos in my organization?" The book answers this question incredibly well by advising executives to set up an innovation colony with the following conditions:1. physical, financial, & organizational autonomy2. equity incentives for employees as a trade-off for lower base compensation and the high risk of job loss3. Access to a large pool of potential projectsAt first, I really struggled with the authors' premise on two levels. First, I did not feel that companies would agree to the autonomy conditions. Second, I did not feel that many "regular" employees would agree to the high-risk, high-reward trade-off. However, it eventually dawned on me that the book is geared toward companies that do not want to lose the tiny but extremely valuable set of employees who would otherwise leave to start their own companies. If that keeps you up at night, this book is for you.I appreciated the case studies sprinkled throughout the book. As far as I could tell, none of the companies individually featured applied ALL of the authors' lessons. However, collectively they did and I think it is reasonable that the authors put a stake in the ground for what the ideal innovation colony looks like.Beyond that, you get a good survey of:a. lean startup principles: disruptive ideas, small cross-functional teams, customer development, minimum viable product, rapid experimentation, pivot or persevere decision making based premeditated success criteria, etc.b. entrepreneurial financing and venture-capital accountingc. innovation accounting (i.e. focus on metrics that matter)The book also does a good job of exploring different corporate innovation strategies including: incubating internally; acquiring early; and investing.Finally, the book does a good job of giving credit to Eric Ries for the principles he popularized in his 2011 book. However, I would have like to have seen credit given to Steve Blank and Bob Dorf who kicked the whole thing off in 2005 with their exceptionally valuable but admittedly textbook like "4 Steps to the Epiphany."
Although I must confess I was already a fan of LeanStartupMachine and Trevor Owens in particular, I was most impressed with “The Lean Enterprise.†The book presents a compelling solution using lean entrepreneurship techniques to the challenge all existing companies face: “Developing the capacity to conceive, develop, and sell products beyond the company’s existing business units is vital if enterprises hope to thrive in an increasingly fast-moving, hypercompetitive, and hyper-connected business environment. (pg. 150)â€Trevor gives ample credit to Steve Blank, Eric Reis and others for creating the lean startup movement and takes these concepts out of the startup world to tackle the problem of applying them to exiting companies. This big step requires creating unique corporate structures as well as defining new processes.The book does an excellent job of systematically describing the nature of the “lean approach†and how it will not work within a normal business organization. Trevor, therefore, introduces the concept of the “Innovation Colony†as a way to bring the efficiencies of the lean startup methodologies into the organization. The goal of the innovation colony is to create corporate innovation through incubation, acquisition and investment. By transplanting the functions of a Y Combinator, Techstars or Betaworks into the corporate structure, the challenges of commercialization disruptive technologies can be minimized.Trevor also introduces the concept of “Innovation Accounting†as an addition to the lean method. How to measure and monitor “financial performance†while a startup is dominated by an uncertain future has always been a challenge. Although the approach of using “actionable metrics†to monitor revenue acquisition has merits, I believe the model must also include the cost of acquiring that revenue stream to provide evidence the business model is actually working.Although Trevor’s book is intended to provide guidance to existing enterprises, it also contains a wealth of knowledge and direction for the conventional lean startup community.All in all, this is an excellent book that should be added to your library alongside “Invovator’s Delima†by C. Christensen, “The Lean Startup†by E. Ries, “Running Lean†by A. Maurya and “The Startup Owner’s Manual†by S. Blank
I've got an interesting problem - I've been a huge proponent of the Lean Startup movement (not quite an Eric Reis groupie like some folks, but I find a lot useful in there), and I moved to a medium size company - an independent lab funded as a consortium of some of the largest companies of the world. Part of my mission when hired was to put lean startup principles to use in our enterprise, and evangelize lean technology. I didn't find this exactly obvious to put in to place -- the "plate tectonics" of enterprise culture made it difficult to get traction on initiatives, it wasn't easy to tell what to measure in long term initiatives, the cross-functionalism found in startup culture didn't exist, etc. etc. This book (along with books by Douglas Hubbard and Reinertsen) gave me a starting place to get some of the ideas implemented. It's still going to be a long process, but with some immediately actionable techniques and a healthy dose of perspective this book is a great place to get started.
I met Trevor Owens when he was a kid in college and a colleague said "one to watch". I didn't watch closely enough or rather I blinked and suddenly he was on a meteoric rise. What distinguishes this book is the sort of attention to detail and passion for coaching and helping people deliver results for customers that characterizes Trevor's own career. It's a great introduction for people in the corporate enterprise to what the lean philosophy is about. One caution: the book is not for you if you're wondering how to get physical products from research out into prototyping. It doesn't focus on that research iteration cycle that physical products have to go through. It doesn't talking about lean manufacturing. It is very much media and IT-centric. If that's the focus you need, this book is one to consider.
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