Corporate revolution amid dreams of lean

The lean start-up approach, which involves experimentation with fast development of so-called “minimal viable products” launched early into the public domain, which are tested through iterations, in contrast to a carefully perfected product launch, is being thrust front and centre by those peddling innovation at the world’s corporations.

Widespread talk of such a corporate revolution – which in theory could see a far more enjoyable working environment in corporations, akin to the febrile experimentation of start-ups – was perhaps the most noticeable trend at the IBF Corporate Venturing and Innovation Partnering Conference in Newport Beach this week, beyond the obvious that corporate venturing is genuinely hot at present.

Sue Siegel, of General Electric, in a powerhouse presentation, effectively said GE employees were taking up lean start-up style experimentation, with what sounded from her speech, almost a religious fervor. The company is working with Eric Ries, author of the popular Lean Start-up book, to implement the programme, with numerous employees getting involved.

Siegel responded when asked whether General Electric would respond well to “failing fast”, a phrase she says has been popularised at GE, if it actually generated some serious write-offs, that this was the “first question” she had asked when she took the job from her role at venture capital firm Mohr Davidow.

She quipped if “I am not here in a few years, you know the answer.” 

Siegel said she had been reassured by the company’s chief executive, Jeff Immelt,  that there was a strong commitment to the programme, meaning that initial failure through such experimentation would not lead to her “being out of a job.”

She was followed in the speaker line-up by Intuit’s Eileen Fagan, who explained in a persuasive fashion what the company had achieved by such experimentation, walking through an early test case the company had pursued long ago, also under the mentorship of Ries.     

Such thinking was also being talked about by others at the event including consultant Patty Burke, whose company has recently rebranded as Accelevate, to emphasise its focus on fast innovation at corporations, and Trevor Owens, whose company Lean Startup Machine, has a software designed to help users launch their own lean start-up programmes.

Lean start-up guru Steve Blank said last year “lean has gone mainstream”. The mood at the IBF conference suggests he may well be right.