7 Lessons Corporations Can Learn from Startups When Managing the Lifecycle of Products

My career has been evenly split between riding the corporate train for over a decade and diving into the entrepreneurial craze for the last 14 years. I've always been fascinated by the energy that radiates from a startup's office. There's a certain buzz—a mix of optimism, urgency, and unbridled creativity—that propels these young companies forward at breakneck speeds. In contrast, walking into a large corporation often feels like stepping into a well-oiled machine: efficient, yes, but sometimes lacking that spark of spontaneity.

One moment stands out vividly in my memory—a late-night brainstorming session in a "basement" office at the first WeWork unit in Toronto, with a team of five at the early days of NEOJETS, fueled by Red Bull, pizza, and an audacious dream. We were on the brink of launching a new product that we believed could disrupt the business aviation market. Resources were scarce, but our determination was boundless. That was the beauty of the startup environment: a relentless pursuit of innovation unencumbered by bureaucracy.

So different from an experience years earlier, sitting in a sleek corporate boardroom at Wunderman Dubai temporary headquarters in Media City, surrounded by experts in their fields, trying to create a launch campaign for a product from a giant tech company. Both the agency where I worked and the client had everything—a global presence, substantial capital, a wealth of data—yet launching a new product felt like steering a massive ship through molasses. Layers of approval, risk assessments, and a fear of tarnishing the established brand slowed progress to a crawl.

The problem was, it felt normal to me at the time.

It was only after I embraced the startup ecosystem that I realized why corporations move so slowly. But what if these large companies could capture the entrepreneurial spirit of startups without sacrificing their strengths? How could they ignite the same passion, agility, and innovative drive within their vast structures?

Yes, there's a growing trend of companies setting up venture studios and corporate venture capital initiatives. But are they enough? Do they move the needle at the corporate level, or do they keep initiatives at bay and inadvertently slow their startup portfolios' progress?

Having navigated both worlds, I've come to realize that startups and corporations aren't as different as they seem. They share common goals but approach them differently. Startups are like speedboats—fast, flexible, and able to change direction quickly. Corporations are like cruise ships—stable and powerful but slow to turn.

In this journey of exploration, I've distilled seven lessons that corporations can learn from startups when launching new products. These insights are woven from personal experiences, challenges faced, and stories of transformation. They're about bridging the gap between agility and scale, infusing the dynamism of startups into the robust frameworks of corporations.

1. Curiosity Drives Transformation

Curiosity is the engine that drives innovation. It pushes individuals to ask "Why?" and "What if?"—questions that challenge existing paradigms and open the door to novel solutions. In my time working with both startups and large organizations, I've seen how a simple question can spark a chain reaction of ideas leading to significant breakthroughs.

Overcoming Barriers to Curiosity

In many corporations, employees may hesitate to express curiosity due to fear of failure, rigid hierarchies, or a culture that prioritizes efficiency over innovation. Overcoming these barriers requires deliberate action:

• Redefine Failure: Encourage a mindset where failures are seen as learning opportunities. Share stories within the organization where initial setbacks led to significant successes.
• Recognize and Reward Curiosity: Acknowledge employees who demonstrate inquisitiveness and contribute innovative ideas, regardless of their role or seniority.
• Continuous Learning: Curiosity thrives in an environment of continuous learning. Providing resources for professional development, such as workshops, courses, and access to industry research, can stimulate employees' desire to explore new concepts.

Building a Sustainable Culture of Curiosity

Creating a culture of curiosity isn't a one-time initiative but an ongoing commitment. It requires:

• Embedding Curiosity into Core Values: Make curiosity a foundational aspect of the company's identity, reflected in its mission statement and values.
• Integrating into Performance Metrics: Include innovation and idea contribution as criteria in performance evaluations to signal their importance.
• Providing Time and Space: Allow employees dedicated time to explore ideas outside of their immediate responsibilities, similar to Google's "20% time."

Embracing a culture of curiosity and innovation is essential for corporations aiming to stay competitive in today's rapidly changing business landscape. By encouraging employees to ask questions, challenge assumptions, and explore new ideas, organizations can unlock creative potential and drive meaningful innovation.

It's about shifting from a mindset of "This is how we've always done it" to one of "What if there's a better way?" This cultural transformation requires commitment from leadership, alignment of incentives, and a supportive environment that values inquiry over conformity.

2. Speed vs Perfection vs Brand Reputation

In the world of startups, there's an adage that goes, "If you're not embarrassed by your first product release, you've launched too late." I vividly recall the early days at NEOJETS when we were racing against time to bring our innovative platform to market. We had big dreams but limited resources, and perfection was a luxury we couldn't afford. So, we focused on getting a functional product into the hands of users quickly, knowing we could iterate and improve based on real feedback.

However, when it comes to established corporations with well-known brands, the stakes are higher. Releasing a product that's not up to par can damage brand reputation and erode customer trust built over years, if not decades. But does that mean corporations should move slowly? Not necessarily. The key is to find a balance between speed and quality—prioritizing swift action while safeguarding the brand's integrity.

Balancing Act: Speed vs. Perfection

Corporations often fall into the trap of seeking perfection before launching a new product. Extensive internal reviews, multiple approval layers, and an aversion to risk can delay time-to-market significantly. In contrast, startups thrive by embracing a test-and-learn approach, understanding that customer feedback is invaluable for refining their offerings.

Introducing the Minimum Lovable Product (MLP)

While startups can afford to launch Minimum Viable Products (MVPs) to test the waters, corporations might benefit more from focusing on Minimum Lovable Products (MLPs). An MLP is a product that not only functions but also resonates deeply with customers, delivering delight from the outset. It strikes a balance between being lean and meeting the high expectations associated with an established brand.

• Identify Core Features That Delight: Focus on essential features that will have the most significant impact on customers. These should align with brand values and customer expectations.
• Adopt a Test-and-Learn Approach: Roll out the product to a select group of customers or a specific market segment to gather feedback and make necessary adjustments while limiting exposure.

When Adobe transitioned from selling boxed software to offering Creative Cloud subscriptions, they faced significant risks. Their professional user base expected high-quality, reliable tools. Adobe launched the initial version of Creative Cloud as an MLP—fully functional with key features that professionals loved, but with plans to add more over time. They communicated openly about the new direction and actively engaged with their community for feedback. This approach allowed them to move swiftly into the SaaS model without alienating their core customers.

Prioritizing speed over perfection doesn't mean lowering your standards; it means being strategic about what you launch and how you launch it. By focusing on creating Minimum Lovable Products, corporations can enter the market more rapidly while still delivering exceptional value that aligns with their brand promise.

3. Reduce Bureaucracy

In my years working with startups, one aspect that always struck me was how quickly decisions could be made and acted upon. Again, referencing NEOJETS, we identified a sudden market opportunity during COVID, which had greatly impacted our growth almost instantly. Within a week, we assembled a team with representatives of each department, assessed the potential, made a decision, and began executing a plan. There were no endless meetings or layers of approval—just swift, decisive action.

In contrast, during my "big agency" years, even minor decisions, like changing the background gradient of a campaign for a famous chocolate bar, often required numerous meetings, sign-offs from multiple departments, and adherence to rigid protocols. This difference isn't just about speed; it's about mindset. Agile decision-making empowers teams to act decisively, fostering innovation and responsiveness.

Overcoming Barriers to Agile Decision-Making

In many corporations, bureaucracy and complex processes hinder swift action. Hierarchical structures, excessive documentation, and fear of making mistakes can paralyze progress. To cultivate an agile mindset, organizations need to address these obstacles:

• Simplify Processes: Identify and remove unnecessary steps that slow down decision-making. Focus on what's essential.
• Flatten Structures: Where possible, reduce hierarchical layers. Empower teams by delegating authority, allowing decisions to be made closer to the action.
• Cultivate Trust: Build an environment where employees feel trusted to make decisions within their scope. When people aren't second-guessing themselves or fearing retribution for mistakes, they act more confidently.
• Adopt Agile Methodologies: Utilize frameworks like Scrum or Design Sprints that promote iterative development, continuous feedback, and adaptability.
• Set Clear Goals: When teams understand overarching objectives, they can make informed decisions without constant oversight.
• Provide Resources: Equip teams with the skills and tools necessary to make effective decisions quickly.

In a rapidly changing business environment, the ability to adapt quickly is crucial. Companies that can make informed decisions promptly are better positioned to seize opportunities, respond to challenges, and stay ahead of the competition. It's about shifting from a mindset of caution and control to one of trust and agility. This approach not only accelerates growth but also enhances employee satisfaction by creating a more engaging and empowering workplace.

4. Cross-Pollination of Ideas

It's widely known that cross-functional teams can accelerate innovation and product success. In the startup world, that is the native set! It's common for teams to be small, nimble, and composed of individuals with diverse skill sets working closely together.

Cross-functional teams are more than just a collaboration between departments; they are a fusion of perspectives, expertise, and ideas that drive innovation. However, it's a beautiful word to put on paper that rarely becomes efficient. And one of the main reasons is that we still have these departments run independently. However there's a new position being created in some companies to address that integration deficit: The Go-to-Market professional.

This role is crucial for steering the team towards shared objectives. The GTM "Maestro" acts as a central point of coordination, ensuring that every aspect of the product launch—from development to marketing to sales—is aligned and executed cohesively. It's a role that keeps teams accountable and help define KPIs to ensure that each member understands their responsibilities. Clarity prevents overlap and confusion, enabling the team to function efficiently.

Spotify revolutionized its organizational structure by implementing the "Squad" model—a system where small, cross-functional teams that are GTM-oriented are empowered to work autonomously on specific aspects of the product. Each squad includes members from different disciplines, such as developers, designers, and product owners, all focused on a shared mission. This structure has enabled Spotify to innovate rapidly and respond effectively to user feedback, maintaining a competitive edge in the dynamic music streaming industry.

Harnessing the power of cross-functional teams led by a GTM product owner can significantly enhance a corporation's ability to innovate and succeed in launching new products. By fostering collaboration and breaking down departmental barriers, organizations tap into a richer pool of ideas and expertise.

In today's complex market landscape, no single department can navigate the challenges alone. It requires a concerted effort where marketing understands product nuances, sales aligns with marketing strategies, and customer service provides insights back into product development. A unified team approach ensures that all facets of the organization are moving in the same direction, creating a more cohesive and effective operation.

5. Authentic Vision

A vision isn't just a statement hung on a wall; it's the guiding star that aligns the efforts of everyone in the organization. In startups, this vision is often palpable—you can feel it in every conversation, every late-night brainstorming session, and every decision made. It's what keeps the team motivated through the inevitable challenges and setbacks.

Communicating a Compelling Vision

To harness the collective energy of an organization, leaders need to articulate a vision that is clear, inspiring, and authentic. This involves:

• Aligning with Core Values: The vision should reflect the company's fundamental beliefs and values. When employees see that the vision aligns with their own values, they're more likely to be engaged and committed.
• Making It Tangible: Abstract statements don't inspire action. A compelling vision paints a vivid picture of the future that employees can relate to and strive toward. It should answer the question, "What change are we creating in the world?"
• Communicating Consistently: The vision needs to be woven into every aspect of the organization—from strategic planning to daily operations. Consistent messaging reinforces the vision and keeps it at the forefront of everyone's mind.

Authenticity is crucial. People can sense when a vision is merely lip service. Leaders must genuinely believe in and embody the vision themselves. A powerful example of this is Tesla. Elon Musk's vision of accelerating the world's transition to sustainable energy isn't just a tagline; it's the driving force behind every product and initiative. This clear and compelling vision attracts talent, motivates employees, and resonates with customers.

For the vision to truly impact an organization, it needs to be integrated into the daily work of every team member. This can be achieved by:

• Setting Aligned Goals: Ensure that team and individual objectives directly contribute to the overarching vision. This creates a line of sight between daily tasks and the bigger picture.
• Celebrating Milestones: Recognize and celebrate progress toward the vision. This reinforces its importance and keeps momentum going.
• Providing Resources and Support: Equip teams with the tools, training, and support they need to contribute effectively. This demonstrates the organization's commitment to turning the vision into reality.

Communicating a compelling vision with transparency and authenticity is a powerful way to unite and energize an organization. It provides direction, inspires action, and creates a shared sense of purpose. When people understand and believe in the vision, they're more motivated, more innovative, and more committed to overcoming obstacles. It's not just about what the company does, but why it does it. And when that "why" resonates, it can transform not just the organization, but the market it serves.

With the advent and "normalization" of a remote culture, most companies will need to rethink how they tackle this problem. Bombardier has recently rebranded, not because they needed a new logo or visuals, but they had to reset their teams' mindsets and make sure that every stakeholder understood the long-term vision of the company and this new workplace dynamic.

6. Customer Intimacy

In the startup world, success often hinges on a deep understanding of the customer. Startups live and breathe their customers' needs, pain points, and desires because their survival depends on it. This relentless focus allows them to create products and services that resonate on a personal level, fostering loyalty and advocacy.

In the other hand, large corporations can sometimes become detached from their customers. Layers of management, complex hierarchies, and an over-reliance on data can create a disconnect between the company and the people it serves. Decisions are made based on reports and statistics rather than real human interactions, leading to products that may miss the mark.

Cultivating a Customer-Centric Mindset

To bridge this gap, corporations need to reorient their approach to put the customer at the heart of everything they do. This involves:

• Listening Actively to Customers: Go beyond surveys and focus groups. Engage with customers directly through social media, community events, and customer service interactions. Encourage teams at all levels to spend time understanding customer experiences firsthand, not only through engagement reports.
• Empowering Frontline Employees: Those who interact with customers daily often have the most valuable insights. Empower them to share feedback and contribute ideas for improvement. Recognize and act on their observations to enhance the customer experience.
• Personalizing the Experience: Use data intelligently to tailor products and services to individual needs. Personalization can create a stronger connection and increase customer satisfaction. AI has made great leaps in allowing analysis that are more qualitative than quantitative, and this will definitely boost customization of experiences.

Learning from Startups' Customer Intimacy

Startups excel at building close relationships with their customers. They often involve early adopters in the development process, creating a sense of community and co-creation. This not only leads to better products but also fosters loyalty and word-of-mouth promotion.

For example, a startup developing a new app might release a beta version to a select group of users and actively solicit their feedback. This direct engagement allows them to refine the product based on real user experiences, ensuring that the final version meets actual customer needs.

Staying close to the customer is not just a strategy; it's a philosophy that should permeate every aspect of a corporation. By embracing a customer-centric approach, companies can create products and services that truly resonate, leading to increased loyalty and competitive advantage.

7. Intrapreneurship

One characteristic that sets startups apart is the entrepreneurial mindset that permeates every level of the company. This isn't limited to the founders or top executives; everyone, from the newest intern to the seasoned manager, is encouraged to think like an entrepreneur. They're empowered to take initiative, challenge the status quo, and contribute ideas that drive the company forward. In my experience, this collective ownership fuels innovation and propels startups beyond their limited resources.

Employees in large corporations often feel confined to their specific roles, hesitant to step outside established boundaries. Hierarchical structures and rigid processes can stifle creativity and discourage individuals from voicing new ideas. And there's the fiercest killer of innovation: the comfort zone.

To unlock the full potential of their workforce, corporations need to foster an environment where entrepreneurial thinking is not just allowed but actively encouraged.

An entrepreneurial mindset involves taking calculated risks. Cultivate a culture where intelligent risk-taking is accepted, and failures are viewed as learning opportunities rather than reasons for reprimand. Encourage teams to experiment, iterate, and learn from outcomes—both good and bad.

Cultivating an entrepreneurial mindset within a corporation can unleash creativity, drive innovation, and enhance employee engagement. It's about empowering individuals to take ownership of their work, encouraging them to think beyond their job descriptions, and providing the support they need to bring their ideas to fruition.

In my journey, I've witnessed how organizations that embrace this mindset become more agile and competitive. Employees feel more connected to the company's mission and are more motivated to contribute to its success.

The business landscape is evolving at an unprecedented pace. Companies that cling to traditional hierarchies and rigid processes risk being left behind. But those willing to adapt—embracing the speed and flexibility of a startup while leveraging their established strengths—can chart new courses to success.

Bridging the gap between agility and scale isn't merely a competitive advantage; it's becoming a necessity. By integrating these seven lessons, corporations can transform from slow-moving giants into dynamic innovators. They can rekindle the spark that leads to groundbreaking products, fosters deeper customer connections, and creates a more fulfilling workplace for their employees.

In the end, it's about more than just adopting new strategies; it's about cultivating a culture that values curiosity, agility, and authenticity. It's about remembering that every industry titan was once a startup with a bold idea. By reigniting that entrepreneurial flame, corporations can not only keep pace with the changing world but also lead the way into uncharted territories of innovation.

It's easier said than done, but those who embrace this challenge may find themselves not just keeping up with change, but shaping the future of their industries.