Bend the rules but don't break the system.

What's the key to successful corporate venturing?

Learn how to bend the rules without breaking your organization's system.

There is always a lot of discussion on what makes the best corporate venturing teams. The startup myth to founding teams is that teams can’t be purposely-built because the founders must have worked together before and they bonded through some magical experience, preferably in a garage or at Burning Man.

I don’t believe in this myth.

Because if it’s true, how come many teams in some of the most high-demanding environments are purposely-built? Look at the military, sports and politics. How come teams in these setups become successful? 

They all share a form of external leadership that navigates them through the battlefield (in some cases literally). So which battlefields do corporate venturing teams need to navigate?

In my experience a corporate venturing team has three challenges to solve:

1) Building an impactful new business in a place that doesn’t always feel accommodating

2) Becoming an amazing team of misfits at the party

3) Don’t alienate the corporate in the process

It can feel like an impossible task but how can your captain steer you through these muddy waters? Of course it starts with having a great ‘shit umbrella’ AKA someone who keeps all the company bullshit out and who navigates the team around all the obstacles (this is not a team member!) 

Let’s zoom in…

Challenge 1: Build an impactful new business in a place nobody really wants you to step foot it

Building a corporate venture means that you face many explicit and implicit forces working against you. The best teams keep their eye on the prize and work on solving a problem that they deeply care about on a personal level. Customer interviews and insights give them the energy to unleash their superpowers on the world. These superpowers help them to fight the pushback and it strengthens their belief that they are on the right track. 

Challenge 2: Become an amazing team of misfits at the party

Becoming a team is a challenge on its own. Every successful player reached his/her greatest successes when they were part of great teams. And guess what? Somebody created these teams! This is why the ‘coach’ plays such a vital role. He or she needs to keep everybody aligned and focused on successfully completing their mission. The mission is different from everyone else who is at the party so the coach has to nurture and forge this misfit culture as best as he/she can.

A great team accepts that the team will change. Customer needs change, the product’s maturity changes and the organization’s context changes. Teams are required to constantly adapt. It’s like what Alex Ferguson (13x Premier League, 2x Champions League winner) said: “Ever change a winning team”. 

Challenge 3: Don’t alienate the corporate in the process

Successful corporate innovation teams have people on board who know how to bend the rules while not breaking the corporate system. A team of rebels who only fight the system will not succeed nor will a team with only yes-men. You need people who are rebellious and compliant enough at the same time.

When you are recruiting people for your innovation program, look at how much your candidates are willing and able to color outside the lines. Cutting corners or ‘playing’ the system is fine, as long as they don’t break it. 

What do you think? Do you recognize some of these challenges?

Thank you for reading this and until next time,

-Leonard

PS: This post was originally featured in my bi-weekly newsletter "The Co-Founder" in which I share personal stories about corporate innovation. If you want to receive it, please subscribe here.