4 August Managing the New Venture (...nursery.)

[Paul Terlemezian]

A healthy mature business is likely to have a business model and a leadership style that differs from the needs of a new business - much like an adult has different needs than an infant.

 

Drucker's assertion is that by blending innovations with mature businesses that the "infant" is not likely to get either the attention it needs or the maturity to stand on its own.

 

In the early days of career as a P&L manager in DEC Educational Services the organization was actually structured this way. It allowed for innovation to be introduced, develop and then blend into the mature organization.

 

What would it take for this approach to take hold in existing training organizations?

 

Here are some of the factors that madke this possible at DEC.

1. Training was a profit center
2. Separate "cost centers" were established for innovation and the P&L expectations differed
3. As the innovation matured it blended into the mature operating centers
4. The innovations were linked to a source of funding outside of the traditional P&L

How have you seen innovations implemented?