The lean start up approach, which involves experimentation with fast development of “minimal viable products” – those launched early into the public domain and tested through iterations, in contrast with a carefully perfected product launch – is being thrust front and centre by those peddling innovation at the world’s corporations.
Widespread talk of such a corporate revolution – which in theory could result in a far more enjoyable working environment in corporations, akin to the febrile experimentation of start ups – was perhaps the most noticeable trend at the IBF Corporate Venturing and Innovation Partnering Conference in Newport Beach last month, beyond the obvious that corporate venturing is genuinely hot at present.
Sue Siegel, of General Electric (GE), in a powerhouse presentation, effectively said GE employees were taking up lean-start up-style experimentation, with what sounded from her speech like an almost religious fervour. The company is working with Eric Ries, author of the popular Lean Start up book, to implement the programme and involve numerous employees.
When asked whether GE would respond well to “failing fast”, a phrase Siegel says has been popularised at GE, if it generated serious write-offs, she responded that this was the “first question” she had asked when she took the job following her role at venture capital firm Mohr Davidow.
She quipped: “If I am not here in a few years, you know the answer.”
Siegel said she had been reassured by GE CEO Jeff Immelt that there was a strong commitment to the programme, meaning that initial failure through such experimentation would not lead to her “being out of a job”.
She was followed in the speaker line-up by Intuit’s Eileen Fagan, who explained persuasively what Intuit had achieved through such experimentation, walking through an early test case the company had pursued, also under the guidance of Ries.
Such thinking was also being discussed by others at the event, including consultant Patty Burke, whose company has recently rebranded as Accelevate, to emphasise its focus on fast innovation at corporations, and Trevor Owens, whose company, Lean Start up Machine, has designed software to help users launch their own lean start up programmes.
Lean start up guru Steve Blank said last year “lean has gone mainstream”. The mood at the IBF conference suggests he may well be right.