Blog

August 2012

One of my core purposes behind BarnyardManagement.com is to help businesses of any size successfully launch new product lines or units within their enterprises. Over 50% of companies today have an ‘innovation’ or ‘new product’ initiative as a part of their strategic plan or goals.  Most have no real idea how much fortitude is really required to succeed or what the key ingredients really are. This is no different than an arrogant, successful wheat farmer thinking it is no big deal to move into the grass seed market. There are many case studies on the subject of incubator businesses, and those that have lived the experience are the best people to consult for support.  This topic is the subject of my next book, and part of a current speaking module. Below is one key excerpt:

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8 Requirements for a Starting a Successful New Business Inside a Larger Business

1.  The new product/service actually serves an unmet need with clear value (obvious, but often missed)

2.  There is some loose strategic plan tie to at least one company core competency (again obvious, but missed)

3.  A focused, battle-proven, driven leader heads the unit (arguably the single most important requirement)

4.  Very top management supports the unit and its differences (air cover is critical)

5.  A fast and flexible go-to-market plan (expect and welcome one or two pretty big mistakes)

6.  Twice the time and money versus the original commitment in order to hit the first big milestone

7.  Acceptance of different metrics and definitions of success (so hard for most companies)

8.  Good luck