Pivot: How Top Entrepreneurs Adapt and Change Course to Find Ultimate Success

322 Pages·2014·2.66 MB·English

by  Remy Arteaga

PPIIVVOOTT

PPIIVVOOTT
How Top Entrepreneurs Adapt
and Change Course to
Find Ultimate Success
REMY ARTEAGA AND
JOANNE HYLAND
(With academic perspectives by
Dr. Gina O’Connor and
Dr. Lois Peters)
CoverDesign:PaulMcCarthy
C
CoverImage: GettyImages/PaulTaylor
C
Copyright 2014byRemyArteagaandJoanneHyland.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Arteaga,Remy,1962-
Pivot:howtopentrepreneursadaptandchangecoursetofindultimatesuccess /
RemyArteagaandJoanneHyland.
pagescm
Includesbibliographicalreferencesandindex.
ISBN978-1-118-55971-0(cloth);ISBN978-1-118-55997-0(ebk);
ISBN978-1-118-55984-0(ebk)
1. Newproducts. 2. Newbusinessenterprises. 3. Creativeabilityin
business. 4. Entrepreneurship. I.Hyland,Joanne,1960-II. Title.
HF5415.153.A772014
(cid:2)
658.4063–dc23
2013020676
PrintedintheUnitedStatesofAmerica
10987654321
To all of those who have shared my dream of making a difference
in our companies and the world, this book is for you—our collective
wisdom of what innovation is and will be. I could not have written it
without all the valuable learning experiences we have shared together
for over 30 years. You are not just colleagues but friends, and I thank
you. This book is also for Monique, my partner in business and in
life, and Tara, our very much loved dog whom we almost lost in the
final days of writing this book. Their love and support throughout
the process have been unconditional; and, of course, I cannot forget
Nikita, seizing every opportunity to be the center of attention. And
for Dad, whom we did lose on July 31st, 2013. You are far better off
where you are now. I know how proud you would have been to see
the final product.
Joanne Hyland
To my beautiful wife, Barbi Bistrowitz, you inspire me every day
with your smarts, and you have partnered with me on so many
startups—this book could not have been written without your love
and support. This book is also for my mom, Hilda, who instilled the
entrepreneurship bug in me with crackers and cheese. I don’t think
I could have gotten through this book, much less this life, without my
pets past and present; you will always have a space in my heart and
mind. Not to be forgotten, to my dad, Pepe—this one’s for you.
Remy Arteaga

CCOONNTTEENNTTSS
List of Trademarks xiii
Acknowledgments xv
Introduction: Is There a Better Way? xix
PART I THE TALE OF TWO
ENTREPRENEURIAL WORLDS 1
CHAPTER 1:Pedal to the Metal 3
A Little History 3
Traditional Management Tools Fail Entrepreneurs 4
Why Startups Fail 7
Origins of the Pivot Methodology 8
Notes 10
CHAPTER 2:Innovation is Bringing Discipline to Chaos 11
Plant = Discovery; Pivot = Incubation; Propel = Acceleration 11
IntroductiontotheD-I-AModel 13
IfOnlyIHadKnownThenWhatIKnowNow... 15
Innovation Defined in the Corporate Setting 17
BeyondInventionandCreativity 18
EmergingManagementDiscipline 19
InnovationDefinitions 21
CommonLanguageandMind-Set 23
NavigatingtheCultureDivide 24
vii
viii CONTENTS
It’s All about Uncertainty 25
UncertaintyversusRisk 25
UncertaintyTypes:Technical,Market,Resource,Organization 26
InnovationContinuumandUncertainty 27
TheABCsofInnovationUncertainty 27
Notes 29
CHAPTER 3:The Corporate Entrepreneur 31
An Examination of the Definition 31
An In-Depth Look at Corporate Entrepreneurship Models 33
ModelOne:Intrapreneurship 34
ModelTwo:Arm’s-LengthApproaches—CorporateVentureCapitaland
ExternalCorporateIncubators 35
ModelThree:InternalVenturing—Spin-InsandSpin-Outs 36
ModelFour:NewBusinessCreation—InsideCorporate/R&Dor
EstablishedDivisions 38
ModelFive:OpenInnovationHybridApproach 39
ModelSix:AnInnovationFunction—InstitutionalizingCorporate
Entrepreneurship 40
A Brief Look at Academic Research 42
A Look at Corporate Culture 43
Personal Experiences 46
Notes 52
AdditionalNotes 53
CHAPTER 4:So, You Want to Be an Entrepreneur? 55
Swinging for the Fences 56
The Academic Side 59
Personal Experiences 63
Notes 67
CHAPTER 5:EntrepreneurandCorporateEntrepreneur:Framing
the Perspectives 69
Comparing Entrepreneurs 71
DifferencesbetweenEntrepreneursandCorporateEntrepreneurs 71
DifferencesintheOperatingContexts 72
ProgressinUnderstandingandEffectivelyExecutingtheTwoDifferent
TypesofEntrepreneurship 74
Notes 76