Wednesday, June 30, 2004

Kissing too many frogs

As experienced venture capitalists point out, you have to kiss a lot of frogs to find a prince. In this month's HBR, Andrew Campbell and Robert Park do not agree with this saying for strategic innovation. Although many business books encourage managers to take more risks, fly more kites, and launch more ventures, the opposite is probably what’s needed. According to Campbell and Park, firms should institute much tougher processes for screening out wild ideas and new venture suggestions and companies may have to learn the skill of patience.
I'm not too sure this is the overall situation. Size matters here. In a very large company you can afford to and should kiss more frogs than in a small one. A bit of kissing doesn't hurt...


Blogger MLOGS said...

It's intersting to see that in this months HBR, Gary Hamel and Gary Getz are surfing similar waves, revealing five imperatives for dramatically boosting innovation efficiency, each of which can be encapsulated in a simple ratio:

• Raise the ratio of innovators to the total number of employees. The greater the percentage of employees who regard themselves as innovators, whatever their formal job descriptions may be, the greater the innovation yield.

• Raise the ratio of radical innovation to incremental innovation. The higher the proportion of truly radical ideas in a company’s innovation pipeline, the higher the innovation payoff.

• Raise the ratio of externally sourced innovation to internally sourced innovation. The better a company is at harnessing ideas and energies from outsiders, the better its return on innovation investments.

• Raise the ratio of learning over investment in innovation projects. The more efficient a company is at exploring new opportunities, learning much while risking little, the more efficient its innovation efforts will be.

• Raise the ratio of commitment over the number of key innovation priorities. A firm that is deeply committed to a relatively small number of broad innovation goals, and consistent in that commitment over time, will multiply its innovation resources.

3:52 PM  
Blogger Armand Rousso said...

Surely you cannot expect to find the prince in the first shot. There are very many screenings required to ultimately zero down to that company which we expect will be our cash cow.

After all, funding new involves a lot of risk and surprises! So i would back someone who has the experience to choose the prince amongst them all!

Armand Rousso

3:04 PM  
Anonymous Claudia H said...

Yes Armand Rousso is right and positive. I follow you in your way of thinking.

3:21 PM  

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