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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BONUS: Never Stop Experimenting—Building a Culture of Continuous Discovery | Stavros Stavru

BONUS: Never Stop Experimenting—Building a Culture of Continuous Discovery | Stavros Stavru

BONUS: Never Stop Experimenting—Building a Culture of Continuous Discovery with Stavros Stavru In this BONUS episode, we dive deep into the world of continuous experimentation with Stavros Stavru, Ph.D. in Organizational Transformations and founder of EdTech ventures AhaPlay and The Caringers. Stavros shares insights from his latest book "Never Stop Experimenting" and reveals how teams can maintain their discovery mindset while balancing the pressures of delivery. The Exploration-Exploitation Dilemma "What would we choose? What we know, and try to exploit? Or go for something new, and better than we currently have?" Stavros introduces us to one of the fundamental challenges facing modern teams: the tension between exploration and exploitation. He explains how teams often start with an exploration mindset, focused on solving real problems through discovery. However, over time, there's a natural shift from discovery to delivery, and teams forget the importance of continued exploration. The title "Never Stop Experimenting" serves as an anchor for teams to remember the value of maintaining their experimental approach even when delivery pressures mount. Born from a Decade of Practice "All the techniques that I describe in the book were born during 10 years of practice." The book isn't theoretical - it's grounded in real-world application. Stavros shares how every technique and framework in "Never Stop Experimenting" emerged from his extensive hands-on experience working with teams over a decade. This practical foundation ensures that readers get battle-tested approaches rather than untested concepts. Software Development as Incremental Experiments "Experimentation requires a creative process." Stavros addresses a common challenge: while teams understand the benefits of experimentation and want to experiment, they often face management resistance that ultimately demotivates the team. He emphasizes that viewing software development as a series of incremental experiments isn't just beneficial - it's absolutely necessary for teams to remain innovative and responsive to changing needs. The Fatware Matrix: Putting Products on a Diet "The challenge: how do you convince the business that you need to spend some time removing features?" One of the book's standout concepts is "The Fatware Matrix," which helps Product Managers recognize when their product is becoming bloated. Stavros introduces a practical tool combining the Kano framework with maintenance cost analysis to illustrate the true cost and impact of maintaining old features. This approach helped one team successfully remove features from their software, with stakeholders later commenting, "Now this is more transparent for us." The key is managing feature creep and software bloat before they become overwhelming. The NSE Ratio: Optimizing Experimentation Rhythm "It's when we try something new that we learn what works. We need to change something on a regular basis." The NSE (Never Stop Experimenting) Ratio measures how long teams wait before introducing new approaches or experimenting with their processes. Stavros explains how teams should define their NSE ratio as part of their team agreements, establishing a regular cadence for trying new things. This systematic approach ensures that learning and adaptation become embedded in the team's rhythm rather than happening sporadically. Building a Safe-to-Fail Culture "Speak of your own failures. When we show our failures as leaders, we show the team that they can run their own experiments." Creating a truly safe-to-fail environment requires leaders to model vulnerability and transparency about their own mistakes. Stavros emphasizes that leaders must give the example by sharing their failures openly, which gives permission for the rest of the organization to take risks and learn from their own experiments. This leadership modeling is crucial for establishing psychological safety around experimentation. About Stavros Stavru Stavros is a Ph.D. in Organizational Transformations and a leading voice in Agile coaching, leadership, and soft skills. Founder of EdTech ventures AhaPlay and The Caringers, he has delivered over 800 trainings and authored Never Stop Experimenting, a powerful toolkit for continuous improvement across teams and organizations. You can connect with Stavros Stavru on LinkedIn, and check his book site at Neverstopexperimenting.com.

21 Juni 31min

The Product Owner Mindset in Construction | Luca Cotta Ramusino

The Product Owner Mindset in Construction | Luca Cotta Ramusino

Agile in Construction: Why Construction Teams Need Product Owner Thinking with Luca Cotta Ramusino 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: The Customer Value Detective Luca discovered that applying the Product Owner role in construction requires thinking like a customer and understanding that "it's the customer that defines what value is." The great Product Owner in construction acts as a customer value detective, constantly asking "which task out of these is going to move the yardstick?" They ensure that work always serves a customer—if you can't identify your customer, you should stop and find one. This mindset transforms how construction teams approach their daily huddles and project planning, viewing everything through the lens of customer value rather than just task completion. The Bad Product Owner: The Waste Accumulator The bad Product Owner in construction fails to eliminate waste from processes, allowing non-value-adding activities to persist simply because "that's how we've always done it." They struggle to have candid conversations with customers and fail to tease out real requirements. Instead of transforming language into customer reality, they ask customers directly "what they want" without understanding that customers are better at identifying what they don't want than articulating what they need. This approach leads to projects that complete tasks without delivering real value. In this segment, refer to The Last Planner Method. Self-reflection Question: Can you clearly identify the customer for every piece of work your team performs, and how do you ensure that work truly moves the project toward completion? [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 Luca Cotta Ramusino  Luca is a passionate Lean advocate with roots in the construction industry, now guiding teams through agile transformation. He thrives on exploring uncharted territory, then helping clients navigate it with confidence. Ask him how Lean and agile methods can unlock your team's potential in today's fast-paced, ever-evolving work environment. You can link with Luca Cotta Ramusino on LinkedIn.

20 Juni 17min

Managing The Network of Promises in Lean Construction | Luca Cotta Ramusino

Managing The Network of Promises in Lean Construction | Luca Cotta Ramusino

Agile in Construction: Managing The Network of Promises in Lean Construction, with Luca Cotta Ramusino 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. Luca defines success in Lean construction through two critical metrics from the Last Planner Method: PPC (Percentage of Plan Complete) and RNC (Reasons for Not Completing). Success means creating reliable promises in what he describes as construction's "network of promises." The Last Planner Method removes layers of management by having those closest to the work do the planning themselves. PPC measures how reliable your promises are—similar to Scrum's definition of "done"—while RNC identifies where problems concentrate, typically in 2-3 areas. Both the work provider and receiver must agree on what "complete" means for these metrics to be meaningful. Featured Retrospective Format for the Week: Reflect and Disinfect Luca developed this daily retrospective practice where people share what was interesting about their work day without formal meetings. Inspired by both Scrum retrospectives and Toyota's focus on reflection and introspection, this 15-minute format answers three questions: what should we continue doing, what should we stop doing, and what should we start doing? The practice emphasizes that teams need moments to stop and think back in order to improve how they work. The informal nature makes it accessible to construction crews who might resist traditional meeting formats. Self-reflection Question: How reliable are the promises your team makes, and what patterns do you see in the reasons they're not kept? [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 Luca Cotta Ramusino  Luca is a passionate Lean advocate with roots in the construction industry, now guiding teams through agile transformation. He thrives on exploring uncharted territory, then helping clients navigate it with confidence. Ask him how Lean and agile methods can unlock your team's potential in today's fast-paced, ever-evolving work environment. You can link with Luca Cotta Ramusino on LinkedIn.

19 Juni 18min

The Parade of Trades—Teaching Flow in Construction | Luca Cotta Ramusino

The Parade of Trades—Teaching Flow in Construction | Luca Cotta Ramusino

Agile in Construction: The Parade of Trades—Teaching Flow in Construction, With Luca Cotta Ramusino 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. Luca learned the hard way that you can't just parachute consultants into construction sites and expect Lean methods to stick. His change strategy focuses on getting buy-in from crews by showing them "what's in it for them." He starts with exercises that provide insight into how Lean ideas apply to their specific jobs, like the "Parade of Trades" simulation that demonstrates how one crew moving at twice the speed still gets stuck behind slower crews ahead. This reveals that predictability of progress matters more than speed of progress. Once teams become familiar with these concepts, Luca transitions from directive teaching to facilitating meetings and conversations, moving into the background to help teams become more sustainable in their Lean practices. In this segment, Luca refers to the movie Karate Kid from 1984, and to Theory of Constraints. Self-reflection Question: How do you ensure that change initiatives show clear value to the people who must actually implement them? [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 Luca Cotta Ramusino  Luca is a passionate Lean advocate with roots in the construction industry, now guiding teams through agile transformation. He thrives on exploring uncharted territory, then helping clients navigate it with confidence. Ask him how Lean and agile methods can unlock your team's potential in today's fast-paced, ever-evolving work environment. You can link with Luca Cotta Ramusino on LinkedIn.

18 Juni 13min

The Culture Shock of Applying Agile and Lean to Construction | Luca Cotta Ramusino

The Culture Shock of Applying Agile and Lean to Construction | Luca Cotta Ramusino

Agile in Construction: The Culture Shock of Applying Agile and Lean to Construction, With Luca Cotta Ramusino 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. Luca experienced a culture shock when first applying Lean thinking to construction, struggling to see how methods designed for cars and assembly lines could work in one-off construction projects. However, he discovered that collaboration in construction isn't about boss relationships—it's about people coming together to deliver value from the customer's perspective. The key insight: when multiple contractors compete for their share of income, the real goal becomes finding ways to complete "the work" efficiently. Competition exists, but the ultimate focus must remain on delivering what the customer truly needs, not just what individual trades want to accomplish. In this segment, we refer to the concept of an Andon Cord, and Swarming from Lean. Featured Book of the Week: The Machine That Changed the World & The Toyota Way These two books provided Luca with his "aha!" moment in understanding Lean construction. The Toyota Way, available in both English and Italian (with additional Italian company case studies), initially created a culture shock as Luca struggled to apply automotive methods to construction's one-off projects. However, these books revealed how Lean thinking could transform construction through visual management to surface problems quickly and swarming practices to fix issues faster. The books taught him that Lean principles transcend industries when properly adapted to different contexts. The Machine That Changed The World, by Womack, Jones, and Roos. Self-reflection Question: What industry practices have you dismissed too quickly without considering how they might adapt to your unique context? [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 Luca Cotta Ramusino  Luca is a passionate Lean advocate with roots in the construction industry, now guiding teams through agile transformation. He thrives on exploring uncharted territory, then helping clients navigate it with confidence. Ask him how Lean and agile methods can unlock your team's potential in today's fast-paced, ever-evolving work environment. You can link with Luca Cotta Ramusino on LinkedIn.

17 Juni 18min

Tackling the Specialist-silo Problem in Agile Construction | Luca Cotta Ramusino

Tackling the Specialist-silo Problem in Agile Construction | Luca Cotta Ramusino

Agile in Construction: Tackling the Specialist-silo Problem in Construction With Luca Cotta Ramusino 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. Luca shares a critical insight from his 20+ years in construction: crews often obsess about the wrong problem. While everyone knows a drywall crew can hang drywall, the real challenge isn't about individual abilities—it's about having work ready to perform. Construction sites are messy, crowded environments where multiple trades work simultaneously, not in splendid isolation. Luca emphasizes that completing work depends not just on your crew's skills, but on having the area prepared and ready for your specific trade. He explains how he gains buy-in from tradespeople by showing them "what's in it for them" and helping them understand the difference between how they think they're working versus what's actually happening on site. Self-reflection Question: How often do you focus on your team's capabilities while overlooking whether the work is actually ready for them to execute? [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 Luca Cotta Ramusino  Luca is a passionate Lean advocate with roots in the construction industry, now guiding teams through agile transformation. He thrives on exploring uncharted territory, then helping clients navigate it with confidence. Ask him how Lean and agile methods can unlock your team's potential in today's fast-paced, ever-evolving work environment. You can link with Luca Cotta Ramusino on LinkedIn.

16 Juni 15min

The Ghost Product Owner vs. The Storytelling Master | Stuart Tipples

The Ghost Product Owner vs. The Storytelling Master | Stuart Tipples

Stuart Tipples: The Ghost Product Owner vs. The Storytelling Master 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: The Storytelling Master Stuart describes an exceptional Product Owner who worked with an API team on what could have been a dry, unsexy product. This PO excelled by maintaining clear availability through established office hours, showing up consistently for the team, and avoiding micromanagement. The standout quality was their ability to tell compelling stories that created clarity and got the team onboard with the vision. Through storytelling, this PO helped the team communicate the value of their work, transforming a potentially mundane product into something meaningful and engaging for both the team and stakeholders. The Bad Product Owner: The Ghost with the Most Stuart encountered a problematic Product Owner working with a customer-portal team dealing with edge cases, legacy systems, and messy code. This PO earned the nickname "The Ghost with the Most" because they were never available when needed. They would miss sprint planning sessions, delay or skip backlog refinement entirely, and leave team members to fill the gap while juggling their own responsibilities. Stuart learned to address this directly by outlining how the PO's behavior affected the team and delivery, asking "Can I help you?" The PO initially reacted defensively but eventually admitted they weren't happy in the role. Self-reflection Question: How effectively does your Product Owner use storytelling to create clarity and help the team understand the value of their work? [Scrum Master Toolbox Podcast Recommends] 🚀 Global Agile Summit 2025 Join us in Tallinn, Estonia, from May 18th – 20th, 2025, for an event that will inspire, challenge, and equip you with real-world Agile success stories. 🌍 Connect with global Agile leaders. 💡 Learn practical strategies for impact. 🔥 Break free from Agile fatigue and become a Pragmatic Innovator Check Full Program [Scrum Master Toolbox Podcast Recommends] About Stuart Tipples  Stuart is an Agilista, a coach, Scrum Master, agile delivery. A husband, Dog Dad, and as Star Wars nerd. Positive disruptor. Passionate about helping teams and individuals build and ship awesome products to their customers. Stuart also blogs at www.yourebelscrum.com You can link with Stuart Tipples on LinkedIn.

13 Juni 17min

Happy Teams Embrace Obstacles—Building Psychological Safety Through Retrospectives | Stuart Tipples

Happy Teams Embrace Obstacles—Building Psychological Safety Through Retrospectives | Stuart Tipples

Stuart Tipples: Defining Scrum Master Success and the 4L's Retrospective 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. Stuart redefines success for Scrum Masters, moving beyond organized JIRA boards and well-structured stories to focus on team dynamics and behavior. True success means seeing healthy conflict that leads to insight, having transparent priorities, and watching teams call out their own behavior through self-checking mechanisms. Stuart emphasizes that happy teams aren't just content - they're energized by embracing obstacles and challenges. He stresses the importance of reinforcing great behaviors when you see them, creating an environment where teams can thrive independently. Featured Retrospective Format for the Week: 4L's The 4L's retrospective format is Stuart's favorite because it strikes the perfect balance between warmth and honest feedback. The format covers four areas: Liked (appreciation), Learned (growth opportunities), Lacked (identifying gaps), and Longed for (dreaming big). This structure prevents people from freezing up while uncovering golden moments and building psychological safety. As a bonus, the format allows facilitators to bring fun elements and themes, making retrospectives more engaging while maintaining their effectiveness in driving team improvement. Self-reflection Question: Does your team demonstrate healthy conflict that leads to insight, or are disagreements avoided and issues left unresolved? [Scrum Master Toolbox Podcast Recommends] 🚀 Global Agile Summit 2025 Join us in Tallinn, Estonia, from May 18th – 20th, 2025, for an event that will inspire, challenge, and equip you with real-world Agile success stories. 🌍 Connect with global Agile leaders. 💡 Learn practical strategies for impact. 🔥 Break free from Agile fatigue and become a Pragmatic Innovator Check Full Program [Scrum Master Toolbox Podcast Recommends] About Stuart Tipples  Stuart is an Agilista, a coach, Scrum Master, agile delivery. A husband, Dog Dad, and as Star Wars nerd. Positive disruptor. Passionate about helping teams and individuals build and ship awesome products to their customers. Stuart also blogs at www.yourebelscrum.com You can link with Stuart Tipples on LinkedIn.

12 Juni 14min

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