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Saturday, October 27, 2012

Other Side of Innovation: Post#4--Cooperation

Cooperate to Graduate: Some companies think that just breaking the rules—a kind of cultural “us” (innovators) against “them” (performance engine/PE folks) approach—works. The authors would caution against such us-vs-them thinking for several reasons. 1) The PE pays the rent! Without partnering with the PE side of the house, you could run out of money; 2) A break-all-the-rules mantra wakes the sleeping giant of PE and antagonizes it. Fighting the establishment is a bad idea; 3) A break-it attitude feels like arrogance to the PE, and you will get massive pushback and eventually a push out. Mutual respect is what the authors suggest—good for any negotiation. The innovative team has to respect the power of the incumbent PE, and the PE team has to respect the long-term  effect of innovation on corporate’s adaptation and survival.

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