Vadim Kotelnikov    

The Need for Managing Radical Innovation Separately

Insulate new ventures from the established business


Business e-Coach     


The need for managing radical innovation separately Innovation Project Management: 2 Routes Radical Project Management Spinouts Innovation Management VK on Innovation Internal Startups Who Can Implement a Radical Innovation Project How to implement an innovation project


  10 Commandments of Innovation Download PowerPoint presentation, pdf e-book


Features of Established Companies that Prevent Successful Implementation of Entrepreneurial Ideas Internally

  • Policies, people, and practices built along set lines

  • Lack of motivation due to highly structured rewards schemes

  • Return-on-investment targets

  • Lack of clear accountability for the venture

Corporate Venture Strategies

Technology Commercialization: Venture Options    Radical Innovation

Managing New Ventures

Venture Management versus Corporate Management

Radical Project Management  >>  7 Challenges  >>  Improvisation-driven Model

Who Can Implement a Radical Innovation Project  >>  Internal Startups

Implementing Projects through Spinouts

Lessons from Leaders

Thermo Electron    Bunsha

"In the existing business, it is the existing that is the main obstacle to entrepreneurship...
If an entrepreneurial business is placed inside an established management system,
it is more than likely to fail." 
Peter Drucker

A New Product Download PowerPoint presentation, pdf e-book or service may be launched either from within an established management system or from a brand-new operation. In both cases, autonomy is a precondition of success however.



Innovation needs to be managed separately as the established company would load insupportable burdens on the new venture: burdensome examples include highly structured reward schemes, return-on-investment targets, and lack of clear accountability for the venture.

There is the fundamental difficulty in converting a large and/or non-flexible organization, which has built up policies, people, and practices along set lines, into the anarchic modes of the entrepreneur. To picture the problem, just imagine you forcing your right leg to run while your left leg and the rest of your body keep walking.

The Jazz of Innovation  Download PowerPoint presentation, pdf e-book

The Jazz of Innovation: 11 Guiding Principles Download PowerPoint presentation, pdf e-book

"The most important caveat is not to mix managerial units and entrepreneurial ones" in any way.

Venture values are different from established corporate values.

Entrepreneurial management of the venture-building process is also fundamentally different  from corporate management that is focused on delivering the annual operating plan. Not only must "the entrepreneurial, the new" be organized completely separately from "the old and existing", but "there has to be a special locus for the new venture within the organization, and it has to be pretty high up".

7 Routes to High Profits

Freedom to Fail

Managing Innovation through Spin-outs

Technology spinouts are designed to provide independence and space for action and allow management to enhance market capitalization... More




Sun Tzu: The Art of War

Victory comes from

having a capable commander and

 the government leaving him alone.

Sun Tzu

The Art of War

Peter Drucker advice

For in-company ventures in an established business, insulate the new venture from the main business... More

Peter Drucker

Thought Leader