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"A startup is a temporary organization designed to search for a repeatable and scalable business model" "A company is a permanent organization designed to exec
by gz5 12y ago
"A startup is a temporary organization designed to search for a repeatable and scalable business model"
"A company is a permanent organization designed to execute a repeatable and scalable business model"
With modern rates of change, I would argue there are very few repeatable and scalable business models (over long time periods, especially in technology driven businesses).
Meaning many "companies" would be better off acting as a "startup" (scared not to innovate), constantly seeking to replace themselves...before another startup does.
- wpietri 12y agoThis is true, but possibly irrelevant to the problem. If you ask people in large companies about the need to innovate and the risks of competition, I'm sure you'll get most people to agree verbally. But the practical matter is that any company (and most of the individuals within those companies) will do better in the short term if they invest in more efficient execution of the existing model. This is compounded by modern American business culture, which is very focused on short-term numbers and local efficiency. And those are probably economically rational behaviors given that CEO tenure is dropping while compensation has gotten more tied to stock market performance. Trading short-term profits for long-term investment only makes financial sense if you'll be around to reap the rewards.
- jackweirdy 12y agoDoes this imply that the Intel-style Tick-Tock model is most effective - where you divide your time on a calendar between doing the current thing better, and building the next thing?