BONUS: Why Large Organizations Struggle to Innovate With Elliott Parker

BONUS: Why Large Organizations Struggle to Innovate With Elliott Parker

BONUS: Elliott Parker on Breaking The Illusion of Innovation and Why Large Organizations Struggle to Innovate

In this BONUS episode, we dive deep into the paradox of modern corporate innovation with Elliott Parker, CEO of Alloy Partners. Elliott shares his insights on why well-managed organizations often struggle with innovation, the critical difference between execution and learning challenges, and how venture studios can bridge the gap between corporate resources and startup agility.

In this episode, we explore Elliott’s book The Illusion of Innovation.

The Golden Gate Bridge Paradox

"It took 7 years to add a safety net to a bridge that took 3 years to build."

Elliott opens with a striking example that illustrates the central thesis of his work. Large organizations today are paradoxically less capable of handling opportunities and challenges despite being better managed than ever before. The irony lies in their very efficiency—modern corporations have become so optimized for capital efficiency and short-term profits that they've inadvertently sacrificed their capacity for future innovation. This focus on Return on Invested Capital (ROIC) creates organizations that excel at managing existing assets but struggle with the uncertainty required for breakthrough innovation.

The Corporate Innovation Anti-Pattern

"The more the innovation team borrows from the business, the more the innovation team starts to look like the original organization."

Elliott reflects on a belief he once held and now completely disagrees with—that corporate innovation teams could successfully drive disruptive innovation from within. Having worked in corporate innovation focused on IP licensing and later in venture capital, he discovered that these internal teams, while excellent at expanding existing business models, inevitably become constrained by the very organization they're meant to transform. The solution he advocates is funding startups outside larger organizations, where there's nothing to preserve or perpetuate, allowing for true disruptive thinking.

In this segment, we talk about Clayton Christensen’s Disruption Theory which he explored in the now famous book: The Innovator’s Dilemma.

Execution vs. Learning Challenges

"Moving slow is a feature of corporations, not a bug."

One of Elliott's key frameworks distinguishes between execution challenges and learning challenges. Corporations are brilliantly designed for execution—when the problem and solution are known, they excel. However, learning problems, where the problem is clear but the solution unknown, require a fundamentally different approach. Elliott suggests marrying the best of both worlds: leveraging the funding and market research capabilities of large organizations with the disruptive ideas and solution-seeking agility of startups. He provocatively suggests treating communication around innovation as something to be avoided until solutions are proven, advocating for working in silos until innovation actually works.

The Controlled Burn Philosophy

"The only way to get data about the future is to collect data by running experiments."

Elliott introduces the concept of "controlled burn" using forest fire management as a metaphor for corporate innovation. Just as western US forests have become dangerously dense from aggressive fire suppression, corporations have become fragile by avoiding all risk and experimentation. We can't predict the future, and there's no existing data about what's coming—the only way to generate future insights is through deliberate experimentation. However, managers are typically incentivized to avoid experiments and minimize risk, creating the organizational equivalent of dense forests prone to devastating fires when disruption eventually arrives.

Creating Safe-to-Fail Environments

"In corporates we focus on frequency of correctness. In startups we focus on magnitude of correctness."

After initially believing he could change organizations from within, Elliott learned that creating truly safe-to-fail environments within established companies is nearly impossible. This realization led him to focus on creating startups as the perfect vehicle for business model experimentation. The fundamental difference in mindset is crucial: corporations optimize for being right most of the time, while startups optimize for the size of their wins when they are right, embracing a venture capital-like approach to innovation where occasional big wins compensate for frequent small failures.

Shifting from Wealth to Knowledge Generation

"Civilizations fail because they don't innovate fast enough."

Drawing on insights from David Deutsch's work on learning and innovation, Elliott argues that long-term resilience comes from learning, not just wealth generation. He advocates for shifting corporate conversations from immediate wealth generation to knowledge and learning, positioning companies as explorers of innovation and business models. This requires different funding mechanisms—moving away from operational budgets managed through traditional Excel-based metrics toward "patient capital" that can sustain the uncertainty inherent in true innovation. Traditional management approaches lack the passion needed for breakthrough innovation.

In this segment, we refer to David Deutsch’s book The Beginning of Infinity: Explanations that Transform The World.

About Elliott Parker

Elliott Parker is CEO of Alloy Partners, where he helps corporations and universities launch startups through a venture studio model. A former Innosight consultant and entrepreneur, he's passionate about bridging big companies with startup ecosystems to unlock real innovation and long-term growth in an increasingly distributed world.

You can link with Elliott Parker on LinkedIn.

Jaksot(200)

When Process Becomes a Prison, Breaking Free from Over-Rigid Agile Team Practices | Mateusz Komander

When Process Becomes a Prison, Breaking Free from Over-Rigid Agile Team Practices | Mateusz Komander

Mateusz Komander: When Process Becomes a Prison, Breaking Free from Over-Rigid Agile Team Practices Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Working with an airline scheduling tool development team, Mateusz encountered a situation where rigid processes became a self-imposed prison. Instead of adapting to challenges, the team's response to missed deadlines was to add more process layers, particularly around testing.  The daily standups became status reports rather than collaboration opportunities, with team members focused on appearing busy rather than supporting each other. Through careful intervention, Mateusz helped transform their daily meetings to focus on future collaborations and mutual support needs. Self-reflection Question: How can you identify if your team's processes are serving as protective measures or becoming barriers to effective collaboration? Featured Book of the Week: Managing for Happiness by Jurgen Appelo Mateusz recommends "Managing for Happiness" by Jurgen Appelo as an essential read for Scrum Masters. This book stands out for its practical combination of tools and real-life examples, helping create better environments for teams' daily work. Its inspirational approach makes it particularly valuable for Scrum Masters looking to introduce new practices and ideas to their teams. In this segment, we also refer to Emotional Intelligence, by Daniel Goleman.  [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Mateusz Komander  Mateusz, is a Scrum Master at Heineken, and brings expertise from biotech and airline industries, excelling in Agile delivery and transformations. Skilled in Management 3.0, he fosters self-managed, innovative teams. Mateusz just launched a podcast on organizational transformation, Mateusz highlights how understanding team dynamics beyond the Scrum framework enhances collaboration and effectiveness. You can link with Mateusz Komander on LinkedIn.

11 Helmi 14min

The True Purpose of Scrum, Enabling Individuals And Interactions | Mateusz Komander

The True Purpose of Scrum, Enabling Individuals And Interactions | Mateusz Komander

Mateusz Komander: The True Purpose of Scrum, Enabling Individuals And Interactions Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. In this insightful episode, Mateusz shares a valuable learning experience from his early days as a Scrum Master in a biotech company. With a small team of five people, he initially believed he could improve upon existing practices by modifying the Scrum framework. However, by skipping crucial ceremonies like daily standups, planning sessions, and retrospectives, hidden team conflicts emerged.  This experience led Mateusz to a crucial realization: Scrum isn't merely about process management, but rather about facilitating meaningful connections and interactions between team members while enabling empirical management. Self-reflection Question: How might your current understanding of Scrum's purpose be limiting your effectiveness as a Scrum Master? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Mateusz Komander  Mateusz, is a Scrum Master at Heineken, and brings expertise from biotech and airline industries, excelling in Agile delivery and transformations. Skilled in Management 3.0, he fosters self-managed, innovative teams. Mateusz just launched a podcast on organizational transformation, Mateusz highlights how understanding team dynamics beyond the Scrum framework enhances collaboration and effectiveness. You can link with Mateusz Komander on LinkedIn.

10 Helmi 15min

BONUS The Evolution of Agile Leadership: Embracing the Therapeutic Turn with Ari-Pekka Skarp

BONUS The Evolution of Agile Leadership: Embracing the Therapeutic Turn with Ari-Pekka Skarp

BONUS: Beyond Process, How Psychology is Reshaping Modern Leadership with Ari-Pekka Skarp In this BONUS episode, we dive deep into the evolving landscape of Agile leadership with Ari-Pekka Skarp, an experienced Agile Coach, Psychotherapist, and Organizational Psychologist. Drawing from his unique blend of expertise, Ari-Pekka shares his lessons learned on how leadership has transformed over the past decades and what the future holds for Agile organizations. The Evolution of Agile and Social Complexity "We replaced authority with collaboration, this was revolutionary." The journey of Agile adoption over the past 16 years has been marked by two significant developments: technological advancement and increasing social complexity. Ari-Pekka reflects on how Scrum introduced a revolutionary "shared" aspect of collaborative work, fundamentally changing how hierarchies are established in modern organizations. This shift represents a departure from traditional command-and-control structures towards more collaborative approaches. The Therapeutic Turn in Leadership "Nowadays we are almost talking about the leaders as some sort of therapist." One of the most significant shifts in organizational dynamics has been the "therapeutic turn" in leadership. Where leaders were once expected to be commanders, today's leaders must embody the qualities of a therapist - demonstrating empathy, emotional intelligence, and a deep understanding of their team members' well-being. This transformation reflects broader societal changes, with mental health awareness becoming increasingly central to workplace dynamics. The Rise of Humanistic Leadership "We need a more humanistic leadership, but what does that look like in practice?" As organizations become more networked and complex, the need for humanistic leadership approaches becomes evident. Ari-Pekka shares his experience as an organizational psychologist, highlighting how traditional role definitions often fall short in addressing modern workplace challenges. The integration of tools from family therapy and other psychological disciplines is becoming crucial for effective leadership. The Future of Organizations "In order to compete you have to have a very well functioning organization!" Looking ahead, Ari-Pekka emphasizes the importance of viewing organizations through a psychological lens. He argues that organizational mental health culture and the psychological aspects of work are becoming critical competitive advantages. This perspective extends beyond processes and tools to encompass the holistic growth and well-being of people within organizations. A New Paradigm for Work "The biggest change was from a mechanistic world-view to a more humanistic world-view." As Agile evolves beyond its origins as a protest movement, Ari-Pekka explores how organizations are increasingly forming around purposes rather than just profits. He advocates for generative planning processes that foster creativity and human flourishing, suggesting a shift toward viewing work and organizations as social processes rather than mechanical systems. Leading Through Conversations "Why don't we look at work, organizations as social processes?" The conversation concludes with a powerful metaphor of leaders as gardeners, nurturing growth and development through meaningful conversations. This approach represents a fundamental shift in how we think about leadership and organizational development, emphasizing the importance of creating environments where people can thrive. In this segment, we refer to the work of Esko Kilpi, a thought leader and business philosopher who helped introduce complexity to the Agile community. About Ari-Pekka Skarp Ari-Pekka is a highly experienced Agile Coach, Psychotherapist, and Organizational Psychologist with over 20 years of experience working with organizations. As an author of several books on topics such as Complexity, the mind, and Mindfulness, Ari-Pekka blends deep psychological insight with practical expertise to help leaders and teams navigate the evolving landscape of work. You can link with Ari-Pekka on LinkedIn and connect with Ari-Pekka on Twitter.

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The Pressure Conduit, aka The Tornado Product Owner | Chrissy Fleming

The Pressure Conduit, aka The Tornado Product Owner | Chrissy Fleming

Chrissy Fleming: The Pressure Conduit, aka The Tornado Product Owner Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. The Great Product Owner: Customer Advocate and Team Partner A great Product Owner brings customer insights directly to the team and shares access to customers, fostering deeper understanding of user needs. They maintain transparency about their knowledge limits and involve the team in both problem and solution spaces, ensuring comprehensive understanding before diving into solutions. The Bad Product Owner: The Pressure Conduit, aka The Tornado This anti-pattern emerges when Product Owners simply transmit leadership's volatility to the team, becoming mere messengers of pressure rather than true product leaders. They fall into "tornado mode," acting as order takers without questioning the "why" behind requests or protecting the team's ability to deliver value each sprint. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Chrissy Fleming  Chrissy came to Scrum-Mastering via Product Management and a deep love of seeing teams work together. She spent 15 years in the New York tech scene and is currently an Associate Principal in Business Agility with Turnberry Solutions. She also has her own company where she coaches and helps businesses and technologists with their development. You can link with Chrissy Fleming on LinkedIn.

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The Role of Trust and Fun in High-Performing Agile Teams | Chrissy Fleming

The Role of Trust and Fun in High-Performing Agile Teams | Chrissy Fleming

Chrissy Fleming: The Role of Trust and Fun in High-Performing Agile Teams Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. For Chrissy, success as a Scrum Master means fostering high-performing teams that solve valuable problems. She emphasizes that while this sounds simple, it requires building trust, establishing accountability, and maintaining a commitment to continuous improvement. A key indicator of success is when teams naturally have fun together, reflecting their comfort and psychological safety. Featured Retrospective Format for the Week: Simple and Team-Led Chrissy advocates for simple retrospective formats that encourage team participation, particularly those led by team members rather than the Scrum Master. She recommends using tools like Easy Retro and MURAL for remote sessions, emphasizing the importance of individual reflection time before group discussion and creating a safe space by acknowledging personal mistakes. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Chrissy Fleming  Chrissy came to Scrum-Mastering via Product Management and a deep love of seeing teams work together. She spent 15 years in the New York tech scene and is currently an Associate Principal in Business Agility with Turnberry Solutions. She also has her own company where she coaches and helps businesses and technologists with their development. You can link with Chrissy Fleming on LinkedIn.

6 Helmi 18min

From Tasks to Outcomes, An Agile Cultural Transformation Story | Chrissy Fleming

From Tasks to Outcomes, An Agile Cultural Transformation Story | Chrissy Fleming

Chrissy Fleming: From Tasks to Outcomes, An Agile Cultural Transformation Story Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Chrissy shares her experience transforming a sales-led organization from task orientation to outcome focus. By partnering with the head of tech and implementing OKRs, they created meaningful conversations about team goals and progress. Through initiatives like Demo Days and the creation of team "houses," they successfully shifted the organizational culture while ensuring teams felt ownership of their future. Self-reflection Question: How can you create meaningful opportunities for your teams to shape their own identity and future? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Chrissy Fleming  Chrissy came to Scrum-Mastering via Product Management and a deep love of seeing teams work together. She spent 15 years in the New York tech scene and is currently an Associate Principal in Business Agility with Turnberry Solutions. She also has her own company where she coaches and helps businesses and technologists with their development. You can link with Chrissy Fleming on LinkedIn.

5 Helmi 15min

The Impact of Unaddressed Conflict on Agile Team Health | Chrissy Fleming

The Impact of Unaddressed Conflict on Agile Team Health | Chrissy Fleming

Chrissy Fleming: The Impact of Unaddressed Conflict on Agile Team Health Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Chrissy shares a compelling story about a newly formed team working on retention that struggled with toxic behavior. The presence of a hostile team member created an environment where healthy conflict became impossible, leading to either unhealthy confrontations or complete avoidance. Despite attempts to address the situation, the lack of trust prevented team members from addressing the destructive behavior, ultimately resulting in the team's dissolution. Self-reflection Question: How do you currently handle toxic behavior in your team, and what steps could you take to build the psychological safety needed for addressing conflicts openly? Featured Book of the Week: How Toddlers Thrive by Tove Klein How Toddlers Thrive by Tove Klein explores brain function and human behavior, drawing surprising parallels between toddler development and adult interactions. Chrissy recommends it for its valuable insights into emotional intelligence and human nature, reminding us that in Agile environments, we're fundamentally dealing with human beings and their emotions. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Chrissy Fleming  Chrissy came to Scrum-Mastering via Product Management and a deep love of seeing teams work together. She spent 15 years in the New York tech scene and is currently an Associate Principal in Business Agility with Turnberry Solutions. She also has her own company where she coaches and helps businesses and technologists with their development. You can link with Chrissy Fleming on LinkedIn.

4 Helmi 16min

The Hidden Cost of Combined Scrum Master and Product Owner Roles | Chrissy Fleming

The Hidden Cost of Combined Scrum Master and Product Owner Roles | Chrissy Fleming

Chrissy Fleming: The Hidden Cost of Combined Scrum Master and Product Owner Roles Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. In this episode, Chrissy shares a critical learning moment from her career when she attempted to juggle both Product Owner and Scrum Master roles simultaneously. This dual role led to a situation where the team began "sandbagging" their estimates due to underlying conflicts with leadership. The situation culminated when a team member completed a supposedly two-month project in just two days, destroying team credibility and ultimately leading to the team's dismissal. Self-reflection Question: How do you ensure you maintain your authentic voice as a Scrum Master while balancing multiple stakeholder needs? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Chrissy Fleming  Chrissy came to Scrum-Mastering via Product Management and a deep love of seeing teams work together. She spent 15 years in the New York tech scene and is currently an Associate Principal in Business Agility with Turnberry Solutions. She also has her own company where she coaches and helps businesses and technologists with their development. You can link with Chrissy Fleming on LinkedIn.

3 Helmi 13min

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