Start-Ups, Scale-Ups & Schizophrenia: CEO Of Slingshot On Disruption

Start-Ups, Scale-Ups & Schizophrenia: CEO Of Slingshot On Disruption
SHARE
THIS



Corporate lifespans are getting shorter. In ten years almost 50 per cent of companies on today’s s&p500 index will not be here. “They’ll be oblierated. We’re losing one company every two weeks,” that’s the doomsday scenario facing incombuents according to Karen Lawson CEO of Slingshot.

Speaking at this mornings Daze of Disruption conference at the Art Gallery of NSW, Lawson helped delegates understand the innovators dilemmma and how partnering with start-ups can help a company survive into the future.

Lawson name checked several past incumbents that had opportunities to disrupt and evolve but didn’t; including Yahoo, Monster and Nokia. “There’s a famous quote from Stephen Elop (Nokia CEO in 2013) about the burning platform which he shared with all of his staff. It’s famous because he talked about feeling like he’s on an oil rig and the flames are taking over; he had two choices to stay on the rig and burn or jump overboard into the darkness below.”

Part of the memo Elop sent to all Nokia staff:

“We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven’t been delivering innovation fast enough. We’re not collaborating internally. Nokia, our platform is burning.” 

The problem is companies can jump into the unknown, but 85 per cent of new products fail. “How do you survive and innovate as a corporate when you know it’s really challenging?

“I recommend that people should work for that rare CEO, a CEO that has schizophrenia. What I mean is they need to be able to manage and sustain the business as it is today, but also be working on disrupting technologies that effectively make your business today redundant.”

Step one: Partner with start-ups.

Slingshot’s recommendation is you start devloping relationships and experiments with hundreds of start-ups. “The fact is corporates don’t have infinite resources, so you have to make sure you partnering with different start-ups so you run hundreds of expeiments at one time.

“Then like the X-Factor elminiation process, you take it down to 10 serious engagements with a number of start-ups and scale-ups. Then move down again to three to six investments, and one or two major acquistions. All of the companies that we work with from NRMA to ING have used this process.”

Once companies have gone through this process, which Lawson describes as ‘not an easy process’, a number of things start to happen within the company.

“First of all your employer brand starts to change, people see you as a brand that’s doing really cool things with start-ups and all of a sudden you start to attract new talent into the organisation. Second, the processes and agility inside the organisation changing. Lastly, you have more fun.”

Step two: invest in scale-ups

Scale-ups are high growth start-ups. “The terminology of scale-ups is consistent, it happens when a start-up has been growing 20 per cent year on year growth- revenue or people.

If you look across the globe, the companies that have been responsible for more jobs and job growth are actually scale-ups. Here in Australia 3.2 per cent of high growth start-up businesses are responsible for 73 per cent of all new job creation.

Not only do these scale-up businesses already have products to go in market, but they have a higher success rate. According to Lawson and Slingshot: “Normally start-ups have a failure rate of around 90 per cent, but scale-ups that have gone through programs and partnered with businesses have a succes rate of 81 per cent.”

The lesson here is partnering with start-ups will help put out the flame of your company’s burning platform.

Latest News

THIS
  • Advertising
  • Marketing
  • Media

Meet Your Judges For The 2018 B&T Awards!

B&T is calling this year's awards judges probably the finest ever assembled. As a chamber choir, arguably less so.

by B&T Magazine

B&T Magazine
CBS Snares Format Rights For Quiz Show ‘Have You Been Paying Attention?’
  • Media

CBS Snares Format Rights For Quiz Show ‘Have You Been Paying Attention?’

CBS Studios International has announced an agreement with Working Dog Productions for the exclusive, worldwide format rights to comedy quiz show Have You Been Paying Attention? Now in its sixth season, HYBPA? is broadcast on the CBS-owned Network Ten in Australia, and is the number one quiz show and the third-highest-rated overall show on the […]

Delacon Appoints Kenshoo Sales Chief As Director Of Operations
  • Marketing
  • Technology

Delacon Appoints Kenshoo Sales Chief As Director Of Operations

Call analytics provider Delacon has appointed Ezri Lerba to the newly created position of director of operations to manage partnerships and business development. Lerba joins Delacon after more than eight years with marketing technology company Kenshoo where he most recently held the role of director of sales across Australia and New Zealand. As first boots […]

Abstract spherical technology network background.
  • Advertising
  • Marketing
  • Media
  • Opinion
  • Technology

Why Tech Is The Best Thing That Happened To Agencies

In this opinion piece, Schedugram CEO Hugh Stephens (pictured) tackles the complexity of agency business models. Agency models are high touch, human resource heavy and require the constant balancing and correcting of clients to account managers. With too many clients, staff will struggle under the workload (a big part of high agency attrition rates) or […]

Opinion

by B&T Magazine

B&T Magazine
Weet-Bix Celebrates 90 Years Of Aussie Kids Being Weet-Bix Kids
  • Advertising
  • Campaigns
  • Media

Weet-Bix Celebrates 90 Years Of Aussie Kids Being Weet-Bix Kids

This year Sanitarium Weet-Bix via The Mix Agency, Shopitize and The Kanga Group, is celebrating 90 years of Australian breakfasts. Sanitarium is celebrating by inviting Aussie kids (young and young-at-heart) to help them celebrate with the release of limited edition birthday packs and personalised Weet-Bix bowls. From Kalgoorlie to Kiama, Bowen to Broome and Darwin […]

Admation Agency Management Software Integrates With Mediaocean Finance Software
  • Media
  • Technology

Admation Agency Management Software Integrates With Mediaocean Finance Software

Automaton integrates finance software with admation – its agency management and workflow solution to enhance productivity for ad agencies. Automaton is always evolving admation, its agency project management and approval workflow software, to enable ad agencies to better manage their creative projects and resources. The business recently completed phase one of its integration with Mediaocean’s […]

Indie Agency KWP! Snares Tourism NT’s Creative Account
  • Advertising

Indie Agency KWP! Snares Tourism NT’s Creative Account

Tourism NT has appointed KWP! as its lead strategic and creative agency. The independent agency, with offices in Darwin and Adelaide, has won the two-year contract following a competitive pitch in September this year. As the lead agency, KWP! is required to formulate sound strategic insights based on ongoing analysis of market research, consumer insights and […]

by B&T Magazine

B&T Magazine
McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game
  • Campaigns

McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game

Most army recruitment ads tend to steer clear of the blindingly obvious of military life – you get a gun to shoot the enemy or you get shot yourself. More so, agencies aren’t overly keen on promoting recruitment ads that are heavy on the guns or violence, preferring lifestyle or technical aspects of military life. Not so McCann’s new action-packed spot for the US […]

by B&T Magazine

B&T Magazine
Are You Dragging The Wrong People Into Pointless Meetings?
  • Opinion

Are You Dragging The Wrong People Into Pointless Meetings?

Donna McGeorge (pictured below) is a speaker and  mentor who helps people make their work work. McGeorge is also author of The 25-Minute Meeting: Half the Time, Double the Impact. In her latest guest post for B&T, McGeorge offers her tips on avoiding every workers’ hell- the pointless meeting… We all complain about having to attend too […]

Opinion

by B&T Magazine

B&T Magazine
Francis Leach Joins The New Daily As Sports Editor
  • Media

Francis Leach Joins The New Daily As Sports Editor

Famed sports reporter Francis Leach has joined online publisher The New Daily as sports editor. A prolific broadcaster, journalist and program host, Leach brings his encyclopedic knowledge of sport and no-holds-barred critical analysis to the role. “Let’s face it, sport these days is big business. I’m interested in connecting and contextualising sport with the big […]

AIME Appoints Eleven To Champion 2019 Vision
  • Advertising
  • Media

AIME Appoints Eleven To Champion 2019 Vision

Eleven has been appointed to manage all PR for the Asia Pacific Incentives Meetings & Event (AIME) 2019, the leading show for the business events industry. Selected by Talk2 Media & Events, Eleven will drive a global PR campaign, working with sister agency FleishmanHillard, to leverage international media networks across Asia Pacific, Europe, Middle East […]