Get Your Organization to Behave Like a Startup - Part 4

This is the last part in the series on AC2T and how to implement it.  In this last article, I provide the key steps to implementing this innovation initiative in your organization.

Once the decision has been reached to use an AC²T to address a problem, the first step is to write the charter statement.  The true test of a strong charter statement is if a candidate solution the team may develop has the potential to substantially change the game for the company if implemented.  If a charter is likely to result in evolutionary change, then the charter is not sufficient.

Next, select the team members.  Keeping in mind the principles outlined in the previous article, ensure your team members have the capacity, skills, and confidence to address the problem with a high degree of creativity.  In most organization, AC²T members are drawn from a group of ‘high potential’ employees with a reputation for delivering results, are self-starters, and possess high motivation.

The team kick-off is an important step in the process.  Wherever possible, members of the senior executive team should be present to lend sponsorship and support to the team.  Team members are briefed on the charter and the expectations that leadership has established for their efforts.  They are informed of the resources to be provided and they are given an overview of the problem to be addressed.  It is important that the team not be provided with internal information that would be likely considered proprietary to the company.  Keep in mind that the team is to operate as a start-up.  Therefore, it is unlikely that the members would have knowledge of how the company may have attempted to address the problem.  The team can be provided information available through open sources such as client solicitation materials, but any previous alternatives considered by the company should not be discussed.

At this point, the team begins its work.  Successful AC²T efforts are constrained with respect to time and money.  Like a start-up, members have tight resources on which to draw.  Typical AC²T efforts are given 30-45 days to complete their work and given no more than 1-2 man-months of financial budget.  This forces the team to start quickly and work smart.  Such tight constraints are often counter-cultural to the way the company routinely operates and therefore forces the team into a different operating model.  Keep in mind that the executive sponsor’s role during execution is to remove obstacles and ensure the team has the resources it needs within the constraints outlined earlier.  Even if members of the team reach out to the sponsor or others for advice or affirmation, any such advice should be avoided.  It is permissible for the team to engage outside resources for information such as academia, competitors, and other industries.  This type of help would be expected in a new business start-up environment.  The team should evaluate the technology alternatives as well as business models, pricing, and other business factors that could be applied to the problem.

At the end of the team’s allotted time, they are asked to brief the executive team on their proposed solution(s).  This briefing should be structured as if the team was soliciting start-up capital.  It should clearly describe the proposed solution, discuss alternatives considered including reasons why they were/were not selected, and address implementation strategy.  This is the first time the executive team will have actively engaged with the AC²T team since its kick-off.  Executive team members should explore the team’s work with sufficient depth to begin drawing conclusions as to the viability and market attractiveness of the proposed approach.  Like a venture capital board, the executive team needs to be convinced that the solution before them has disruptive potential, could be implemented, and addresses the problem to be solved.

Once the executive team has been briefed, the proposed solution is then internally evaluated to determine if further action is warranted.  This is the point at which the proposed solution is evaluated in the context of the company and its strategy.  Also during this phase, the proposed solution is compared against the company’s own approach and comparisons are made.  In addition, the competition is brought into the picture to determine if the AC²T team’s approach could represent a highly disruptive play if implemented by a competitor.  Often during the analysis phase, the team’s solution is decomposed and selected elements of it are introduced into the company’s approach to create one or more hybrid solutions.

The final phase is where the executive team reaches a decision and initiates action.  The executive team may select the AC²T team’s solution outright, may reject it altogether, may apply insight or lessons from their approach, or may opt to use one or more hybrid solutions.  Where the AC²T developed solution is selected all or in part, it is very typical that one or more of the team members are asked to participate in the implementation phase.  A key step in this phase often overlooked is feedback to the AC²T team members.  Should their proposed solution be rejected, it’s critical that the team be briefed on the reasons for not selecting their approach.  Missing this step can have a detrimental affect on future AC²T efforts if employees believe their efforts are not valued nor deemed important.  In addition, institutional learning opportunities are lost if AC²T team efforts are not considered seriously and feedback not provided.

Duane Grove is founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.