BONUS: Why Large Organizations Struggle to Innovate With Elliott Parker
Scrum Master Toolbox Podcast: Agile storytelling from the trenches9 Aug

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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Product Owner Patterns – The Great and the Bad | Ellen Grove

Product Owner Patterns – The Great and the Bad | Ellen Grove

Ellen Grove: The Messenger Anti-Pattern, When Product Owners Lack Authority 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. The Great Product Owner: Building Shared Understanding, The Collaborative Product Owner Pattern Ellen describes an exemplary Product Owner (PO) who actively engaged with customers, often bringing the team along to meet users. This practice fostered a shared understanding of customer needs and amplified creativity within the team. A great PO promotes collaboration and ensures that the team is aligned with the product vision, enabling innovative solutions and meaningful outcomes. The Bad Product Owner: The Messenger Anti-Pattern, When Product Owners Lack Authority A poor PO, Ellen explains, is one who lacks decision-making authority. In one case, a PO served merely as a messenger for the CEO, repeatedly deferring to higher-ups for answers. This lack of empowerment hindered team progress and frustrated the development process. Ellen underscores that Scrum Masters play a crucial role in supporting POs to ensure they can fulfill their responsibilities effectively. Self-reflection Question: How can you support Product Owners to strengthen their ability to make informed decisions? [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 Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

10 Jan 16min

The Power of "Why", Modeling Coaching Behavior for Agile Teams | Ellen Grove

The Power of "Why", Modeling Coaching Behavior for Agile Teams | Ellen Grove

Ellen Grove: The Power of "Why", Modeling Coaching Behavior for Agile Teams 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. Ellen defines success for Scrum Masters as the team developing a stronger sense of agency and self-sufficiency. When teams begin asking better questions and demonstrate ownership of their processes, it indicates growth and maturity. Scrum Masters must model this behavior by being thoughtful, curious, and consistently asking "why" to encourage a coaching mindset. This approach enables teams to think critically and solve problems collaboratively. Self-reflection Question: How can you model the behavior you want to see in your team during retrospectives and beyond? Featured Retrospective Format for the Week: Retromat Ellen recommends using Retromat, a versatile online tool that provides a variety of retrospective formats to match the specific needs of your team. Ellen values mixing up retrospective formats to keep sessions engaging and contextually relevant. She stresses the importance of paying attention to all steps of a retrospective process, ensuring teams reflect, ideate, and act effectively. [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 Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

9 Jan 16min

The Dual Work of Agile, Managing Projects and Change Simultaneously | Ellen Grove

The Dual Work of Agile, Managing Projects and Change Simultaneously | Ellen Grove

Ellen Grove: The Dual Work of Agile, Managing Projects and Change Simultaneously 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. Ellen shares her insights on managing organizational change effectively. She explains how Scrum and Lean Change Management offer tools to make the "change work" visible alongside project work. By putting infrastructure in place to support this dual focus, stakeholders and teams can gain transparency and clarity. Ellen emphasizes that lasting change requires collaboration and visibility, not isolation. Self-reflection Question: How can you make the "change work" more visible in your organization? [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 Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

8 Jan 15min

Why Feedback Loops Are Essential for Agile Teams | Ellen Grove

Why Feedback Loops Are Essential for Agile Teams | Ellen Grove

Ellen Grove: Why Feedback Loops Are Essential for Agile Teams 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. Ellen shares a story about coaching a team in a public sector enterprise working on a website project. Despite their commitment to Agile, the team’s disconnect from user feedback led them to build features that missed critical functionality. This stealthy anti-pattern—assuming "what should be done and why" without user input—resulted in wasted effort and budget. Ellen emphasizes the importance of direct feedback loops with real users, even for internal products. Self-reflection Question: How can you ensure your team receives continuous feedback from real users to avoid building the wrong product? Featured Book of the Week: Humble Inquiry by Edgar Schein Ellen highlights "Humble Inquiry," a transformative book that stresses the importance of relationships over tasks in solving problems. The book encourages leaders to build trust and respect through better questioning techniques. It challenges readers to rethink their interactions and adopt a stance of curiosity, fostering collaboration and understanding. [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 Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

7 Jan 14min

Managing Change in Complex Organizational Cultures | Ellen Grove

Managing Change in Complex Organizational Cultures | Ellen Grove

Ellen Grove: Managing Change in Complex Organizational Cultures 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. Ellen reflects on her early experiences as a Scrum Master, facing challenges in an environment that resisted the introduction of Scrum. She shares valuable lessons about handling external resistance, managing personal expectations, and avoiding emotional burnout when navigating organizational change. Ellen emphasizes the importance of focusing on what can be influenced and detaching from outcomes beyond one’s control. Self-reflection Question: How do you maintain focus and resilience when dealing with resistance to Scrum in your organization? [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 Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

6 Jan 14min

Throwing Features Over the Fence, The Disconnected PO | Robert Finan

Throwing Features Over the Fence, The Disconnected PO | Robert Finan

Robert Finan: Throwing Features Over the Fence, The Disconnected PO 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. The Great Product Owner: Fostering Quick Feedback Loops With Story Mapping Robert describes a great Product Owner as someone who immerses themselves in the team, fostering collaboration and ensuring quick market feedback.  By using tools like Story Mapping, these POs help teams focus on value while staying engaged and open to learning. The Bad Product Owner: Throwing Features Over the Fence, The Disconnected PO Bad Product Owners remain distant, throwing requirements “over the fence” without participating in the team’s efforts. This disconnect often leads to misalignment and poor outcomes.  For Scrum Masters and Agile Coaches, Robert suggests investigating the root cause of this distance and addressing it collaboratively. [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 Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

3 Jan 14min

Promoting Agile Team Growth Through Experiments And Small Focused Changes | Robert Finan

Promoting Agile Team Growth Through Experiments And Small Focused Changes | Robert Finan

Robert Finan: Promoting Agile Team Growth Through Experiments And Small Focused Changes 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. Robert defines Scrum Master success as driving impactful team improvements through small, focused changes.  By maintaining a backlog of improvement ideas and encouraging teams to experiment, Robert highlights the importance of measurable progress in both behavior and collaboration. Featured Retrospective Format for the Week: Sailboat Retrospective Robert recommends the Sailboat format, especially when working with new teams. By exploring current realities, future goals, and risks, this format provides rich insights and fosters alignment. The focus on improvement ensures actionable outcomes that resonate with team members. [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 Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

2 Jan 14min

Flexible Change Processes, How To Adopt Agile With An Agile Approach | Robert Finan

Flexible Change Processes, How To Adopt Agile With An Agile Approach | Robert Finan

Robert Finan: Flexible Change Processes, How To Adopt Agile With An Agile Approach 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. Robert discusses how top-down, project managed Agile transformations often fail to account for the complexity of change. By focusing on flexibility, inspect/adapt cycles, and bringing comfort to the change process, Scrum Masters can guide organizations away from one-size-fits-all solutions and toward the sustainable improvement that is the hallmark of Agile. Self-reflection Question: How can you bring comfort to the change process in your organization? [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 Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

1 Jan 12min

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