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.

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Achieving Productive Serenity - Sign of Scrum Master Success | Antti Horelli

Achieving Productive Serenity - Sign of Scrum Master Success | Antti Horelli

Antti Horelli: Achieving Productive Serenity - Sign of Scrum Master Success 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. Antti describes success for Scrum Masters through the concept of "productive serenity" - a state where teams maintain high productivity while remaining calm and focused. This is characterized by frequent small discussions, excited but not stressed team members, and the ability to address challenges with serious calmness. The team operates with the mindset of "be quick, but don't hurry," demonstrating maturity in problem-solving and collaboration. Featured Retrospective Format for the Week: The Timeline Retrospective The Timeline Retrospective format is particularly effective for longer deliveries or projects, serving as an excellent reflection tool. Antti emphasizes keeping participants active and encouraging them to share "fuzzy" observations that could be early signals for better decision-making. The format helps teams identify patterns and insights that might otherwise go unnoticed. Self-reflection Question: How can you help your team achieve a state of productive serenity? [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 Antti Horelli  Antti is an experienced Agile Coach from Finland, dedicated to empowering teams. With a systems-oriented, empathetic approach, he fosters collaboration and effective communication. With decades in IT, Antti transitioned from technical roles to methodology, where he passionately helps people and teams reach their full potential. You can link with Antti Horelli on LinkedIn.

30 Jan 13min

Balancing Delivery Pressure with Agile Transformation | Antti Horelli

Balancing Delivery Pressure with Agile Transformation | Antti Horelli

Antti Horelli: Balancing Delivery Pressure with Agile Transformation 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. Antti shares his experience leading an agile transformation across three siloed organizations: development, QA/testing, and support. The transformation involved establishing cross-functional teams and implementing visual management through a comprehensive planning wall. Despite initial progress with joint planning days and rolling wave planning, the pressure to deliver led to reverting to traditional project management approaches. This story highlights the challenge of maintaining agile principles while under delivery pressure and the importance of focusing on reliable delivery rather than agile for agile's sake. Self-reflection Question: How do you balance the need for immediate results with long-term agile transformation goals? [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 Antti Horelli  Antti is an experienced Agile Coach from Finland, dedicated to empowering teams. With a systems-oriented, empathetic approach, he fosters collaboration and effective communication. With decades in IT, Antti transitioned from technical roles to methodology, where he passionately helps people and teams reach their full potential. You can link with Antti Horelli on LinkedIn.

29 Jan 15min

The Challenge of Breaking Silos, And Building Collaborative Teams Remotely | Antti Horelli

The Challenge of Breaking Silos, And Building Collaborative Teams Remotely | Antti Horelli

Antti Horelli: The Challenge of Breaking Silos, And Building Collaborative Agile Teams Remotely 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. Antti shares a story about a team of solo workers who struggled to collaborate effectively. Despite having technical expertise, the team faced challenges in delivering value due to conflicting views on "good tech work" and communication issues. The remote working environment further complicated their interactions, ultimately leading to the team's dissolution. This experience emphasizes the importance of focusing on team cohesion and establishing clear ways of working, especially in distributed teams. Featured Book of the Week: "Lean, Resolving the efficiency paradox" Antti recommends "This is Lean: Resolving the Efficiency Paradox” by Modig et al., an approachable book for its clear explanation of flow efficiency versus resource efficiency in Scrum and Kanban. The book helped him understand the counterintuitive benefits of optimizing for one-piece flow and completing single value-delivering items, offering valuable insights for process improvement. Self-reflection Question: How can you help your team transition from individual work patterns to effective collaboration? [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 Antti Horelli  Antti is an experienced Agile Coach from Finland, dedicated to empowering teams. With a systems-oriented, empathetic approach, he fosters collaboration and effective communication. With decades in IT, Antti transitioned from technical roles to methodology, where he passionately helps people and teams reach their full potential. You can link with Antti Horelli on LinkedIn.

28 Jan 14min

The Three-Day Sprint Planning Nightmare - Learning from Failure | Antti Horelli

The Three-Day Sprint Planning Nightmare - Learning from Failure | Antti Horelli

Antti Horelli: The Three-Day Sprint Planning Nightmare - Learning from Agile Failure 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, Antti shares a critical learning moment from his early Scrum Master days when a sprint planning session extended to three days due to poor preparation. The team discovered that backlog items were much larger and different than expected, while unexpected background decisions further complicated the planning. This experience highlighted the vital importance of proper refinement work and maintaining clear communication channels about decisions affecting the team. Self-reflection Question: How do you ensure your team has sufficient context about upcoming decisions while avoiding information overload? [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 Antti Horelli  Antti is an experienced Agile Coach from Finland, dedicated to empowering teams. With a systems-oriented, empathetic approach, he fosters collaboration and effective communication. With decades in IT, Antti transitioned from technical roles to methodology, where he passionately helps people and teams reach their full potential. You can link with Antti Horelli on LinkedIn.

27 Jan 14min

BONUS: Gojko Adzic on Optimizing Products for Long-Tail Users (Agile Online Summit 2024 Replay)

BONUS: Gojko Adzic on Optimizing Products for Long-Tail Users (Agile Online Summit 2024 Replay)

BONUS: Gojko Adzic on Optimizing Products for Long-Tail Users (Agile Online Summit 2024 Replay) In this BONUS episode, we revisit Gojko Adzic’s insightful interview at the Agile Online Summit 2024. Gojko, an award-winning author and software expert, unpacks the principles behind his latest book, Lizard Optimization, offering a fresh perspective on improving product usability by addressing the needs of long-tail users. From learning from unexpected user behaviors to refining products with a systematic approach, this episode is filled with practical tips for product teams and Agile practitioners. What is Lizard Optimization? Drawing from his experiences as a product developer, Gojko introduces the idea of Lizard Optimization. He discusses how observing unexpected user behaviors led him to refine his SaaS tools like Narakeet and MindMup. By focusing on usability challenges and unusual patterns, he has turned serendipity into actionable insights. “Users aren’t stupid—they’re just finding creative ways to get value from your product. Listen to them.” Gojko explains the inspiration behind the metaphor of the “Lizardman constant,” a concept from a Scott Alexander blog post. He describes how this principle applies to product optimization: understanding and addressing the 4% of surprising, unexplainable behaviors can uncover opportunities for innovation. “The job isn’t to judge users—it’s to explore why they’re doing what they’re doing and how we can help them succeed.” The High-Level Process of Lizard Optimization Gojko outlines the systematic process described in his book to leverage unexpected user behavior: Observe Misuse: Identify how users deviate from expected patterns. Extract Insights: Focus on one unexpected behavior as a signal. Remove Obstacles: Help users achieve their goals more easily. Monitor Impacts: Detect and adjust for unintended consequences. “Start monitoring for the predictable but unexpected—those hidden gems can unlock your next big feature.” Practical Advice for Product Teams For teams ready to apply these concepts, Gojko emphasizes the importance of expanding observability tools to include product metrics and not just technical ones. He shares how tracking unpredictable user actions can inspire impactful changes. “About a third of what we do delivers value—focus on finding where unexpected value lies.” Recommended Resources To dive deeper into these ideas, Gojko recommends: Trustworthy Online Controlled Experiments by Ron Kohavi Evidence Guided by Tim Herbig LizardOptimization.org “Experimentation and evidence-based decision-making are the keys to building better products.” Closing Thoughts: “Look for the Unexpected” Gojko’s parting advice for Agile practitioners is simple yet powerful: Look for the unexpected. By embracing surprises in user behavior, teams can transform minor inconveniences into major opportunities for growth. “The unexpected is where innovation begins.” About Gojko Adzic Gojko Adzic is an award-winning author, speaker, and product creator. His books, including Lizard Optimization, Impact Mapping, and Specification by Example, have become essential reads for Agile practitioners and product teams worldwide. Gojko is a 2019 AWS Serverless Hero, the winner of the 2016 European Software Testing Outstanding Achievement Award, and the 2011 Most Influential Agile Testing Professional Award. He has also co-founded several successful SaaS tools, including Narakeet, MindMup, and Votito. You can link with Gojko Adzic on LinkedIn.

25 Jan 40min

Overcoming the Part-Time Product Owner Trap | Ville Reijonen

Overcoming the Part-Time Product Owner Trap | Ville Reijonen

Ville Reijonen: Overcoming the Part-Time Product Owner Trap The Bad Product Owner: The Part-Time PO Disaster Ville describes a scenario where a company assigned a part-time Product Owner (PO) to manage software development. The PO’s inconsistent availability led to poor communication and a lack of feedback loops. Ville explains how this anti-pattern can derail a project and shares tips, such as scheduling regular meetings to ensure that the PO remains actively involved in supporting the team. A strong PO presence is crucial for maintaining alignment and driving product success, and Ville discusses some possible mitigating actions we can take to make sure that even part-time PO’s are available for the team. Reflection Question: How can you support a Product Owner who struggles with availability to ensure your team gets the guidance they need? The Great Product Owner: The Master Communicator In contrast, Ville shares an example of an exceptional PO who excelled at communication and collaboration. This PO consistently collected and shared feedback, held regular one-on-one meetings, and fostered a culture of transparency and understanding. Ville emphasizes that a great PO proactively builds relationships and maintains a consistent cadence of interactions to stay informed and guide the team effectively. Self-reflection Question: How can you support your PO so that they learn to communicate and engage with the team better?  [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 Ville Reijonen Ville is a seasoned Agilist and pattern enthusiast. He has co-authored two books—one on distributed machine control system patterns and another on Scrum patterns. Ville is passionate about discovering patterns in various contexts and currently works as a freelance coach, empowering individuals and teams by fostering focus and understanding. You can link with Ville Reijonen on LinkedIn.

24 Jan 15min

How To Use Agile Retrospectives To Help Teams Focus On Continuous Growth | Ville Reijonen

How To Use Agile Retrospectives To Help Teams Focus On Continuous Growth | Ville Reijonen

Ville Reijonen: How To Use Agile Retrospectives To Help Teams Focus On Continuous Growth For Ville, true success as a Scrum Master is achieved when the team and the PO can independently manage their development process. He shares how he tracks team progress, conducts one-on-ones to provide tailored support, and uses subtle nudges to guide the team toward autonomy. Ville emphasizes the importance of understanding where individuals are in their learning journey and helping them achieve their goals by continuously assessing and adjusting support strategies. Self-reflection Question: What steps can you take to help your team become more self-sufficient? Featured Retrospective Format for the Week: Spider Web Games Ville highlights the use of spider web graphs (aka radar graphs) as a way for teams to reflect on their progress in different areas. This format creates a visual representation of strengths and areas for improvement. Ville explains how role-playing and simulation games can foster team cohesion and help teams identify behaviors that can be applied to their daily work. By engaging in playful yet insightful activities, teams can foster collaboration and enhance retrospectives. [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 Ville Reijonen Ville is a seasoned Agilist and pattern enthusiast. He has co-authored two books—one on distributed machine control system patterns and another on Scrum patterns. Ville is passionate about discovering patterns in various contexts and currently works as a freelance coach, empowering individuals and teams by fostering focus and understanding. You can link with Ville Reijonen on LinkedIn.

23 Jan 16min

Why Organizational And Scrum Patterns Are Essential for Leading Change | Ville Reijonen

Why Organizational And Scrum Patterns Are Essential for Leading Change | Ville Reijonen

Ville Reijonen: Why Organizational And Scrum Patterns Are Essential for Leading Change Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Ville shares how patterns provide a structured approach to implementing change in organizations. During informal chats with colleagues before the pandemic, Ville would share useful patterns to build common understanding. He explains how patterns create a shared language that helps teams internalize concepts like Scrum roles and processes. Ville recommends ScrumBook.org as a resource for sharing patterns and insights with colleagues. By using patterns, Scrum Masters can foster more effective change processes and create a cohesive vision for their teams. Self-reflection Question: How do you use patterns to enhance your team’s approach to change? [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 Ville Reijonen Ville is a seasoned Agilist and pattern enthusiast. He has co-authored two books—one on distributed machine control system patterns and another on Scrum patterns. Ville is passionate about discovering patterns in various contexts and currently works as a freelance coach, empowering individuals and teams by fostering focus and understanding. You can link with Ville Reijonen on LinkedIn.

22 Jan 15min

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