The attraction is understandable. Who wouldn’t adore to work in an organization where you combine years of legacy experience with new working and leadership methods? Where you create the room for a twin organization to grow side by side with a classic well-driven company. For many C-suits members a start-up unit kind of sounds like the solutions to the stagnation, the standard operation procedures, the corporate processes that just has become to heavy and disturbing. Like a little (well-controlled of course) revolution right there in their midst. A moment of entertainment. And we all know what happens when you release the energy to an uncontrolled level - it doesn’t always come out as you would expect, and the mess totally exceeds what you can handle.
In essence it is the split between exploration and exploitation that is the key - and that is so important to keep in mind. Why? ´Cause what often happens when a legacy organisation decides on the start-up-journey is that they tend to forget that the rest of the organisation is still alive and still in a development process, however in a different manner. And sometimes the legacy organization then end up being the abandoned child instead of being recognized as the backbone of the corporate business. So someone need to realize that that part of the organisation do not go hibernating, just because there is a new kid on the block. They still have a market that needs to be developed, products that needs to be renewed, redesigned and to be sold. The corporate business still need to deliver a surplus to the stakeholders or who ever is benefitting, but most importantly the traditional core business must earn the profit needed to finance the start-up or the explorative unit, that potentially will not have a revenue for a long time.
So what to do? is it possible to create the perfect set-up for the new organisational design?
Well, first - there is no such thing as perfect, and all decisions must be seen in the context they are arising in. But from my experience what failed bitterly was communication. That you forget to tell that all the fun and games at the start up come at a price. That the people in the start-up e.g. don’t get the same incentives as the corporate people, but the money instead is spend on geeks and parties. Or that the silly coffee machine they get that differs enormously from the corporate ditto, also is a pay-off for missing overtime payment. Be sure not to underestimate the stories that is floating at all management level in the organisation, and among employees as well. And recognize that envy and disappointment are poison in a process of transformation.
Another thing that is often forgotten is the patience and the stamina needed to be in this transformation for the long run. The expectation for delivering magic in a very short time can be overwhelming. The C-suite team have invested a shitload of money in the unit, and is therefore keen to see the ROI appear quickly. But it does take time, and if you really want this explorative unit to deliver, be patient, be their guard while challenging them in the shadows.
In my perspective the learning is quite clear: narratives, storytelling - what ever you call it, is essential and the patience and the insights into why building the explorative unit is important. And to realize that you can not have one with out the other. Sponsorships from C-level is essential and need to be continued for a long time.
If you need help in building your ambidextrous organisation, or for a start to share thoughts on possibilities - just reach out
Laila ;O)
