Goal
This paper proposes a new approach to help large companies innovate and operate like startups while growing at an enterprise scale, enhancing employee self-actualization.
Problem Statement
Traditional hierarchical structures in large corporations are ineffective, leading to silos, politics, and inefficient execution. Employees desire meaningful work and proportional rewards, but current models result in mid-management self-optimization and resistance to innovation.
Solution
Create a startup incubator within corporations, governed by a mix of the corporation's Board of Directors and leaders from an external practice. Key elements include:
Investment Thesis: Focus on narrowly defined business problems. Measurable Success: Set ambitious financial goals so that there is enoug reward to go around. Runway and Milestones: Define clear milestones with funding. Equity-like Rewards: Offer substantial rewards tied to success. Resource Sharing Agreement: Share corporate resources with the startup. Audit System: Ensure compliance through independent auditors.
Implementation Steps
The Problem: Identify and frame the critical business problem. The Pitch: Develop a practical solution with clear success metrics. The Gambit: Allow the corporation to create necessary APIs and resources. The Hiring: Recruit internal and external talent with equity incentives. The Audits: Expedite resource control through independent auditors. Success and Compensation: Reward equity holders at each milestone. Rinse, Wash, Repeat: Scale the model to address other critical business areas.
Conclusion
Transform work within large corporations to enable employees to engage in meaningful projects, achieving significant success and self-actualization while fostering a startup-like culture.