2. BIONIC’S CONTRARIAN VIEW
WE BELIEVE LARGE ENTERPRISES
CAN GROW LIKE STARTUPS
(VC + Entrepreneurship is a Form of Management)
3. GE 2012 Shareholder Letter 2013 HBR on Lean Enterprise
“I have found two books—The Lean Startup and
The Startup Playbook—to be particularly useful”
(Jeff Immelt, CEO)
4. Grow @ Will Optimize @ Will
NEW TO BIG BIG TO BIGGER
ENTERPRISES HAVE SYSTEMATICALLY ERADICATED
NEW TO BIG GROWTH CAPABILITIES
VS
Top Line: .01 = .10
(discovery to growth to scale)
Bottom Line: .01 = .01
(efficiency + yield)
5. Rack + Stack ROI
EXPENSIVE FAILURE
Internal Success Theater
TRUMPS CUSTOMERS
Total Address Market Mindsets
“KNOWABLE” RISK TAKING
Intellectual Dishonesty
TRUTHINESS
Stakeless Stakeholders
REVIEW HELL
Focus on Can
VS. SHOULD
Answers vs Questions
LEADERSHIP ADDICTION
Administrator Degrees
FEW CREATORS
Low Variation Culture
PAID TO STOP GROWTH
In Two Wars
BIG TO BIGGER DESTROYS NEW TO BIG
Entrepreneurial Exodus
LOST TALENT
Lack of Pipeline
BIASES OPTIMIZATION
BIG TO BIGGER “INNOVATION”
IS FAILING AT A DNA LEVEL
Limited Boundaries + Permissions
DESTRUCTIVE BIASES
Inside Out Market View
TRUMPS OUTSIDE IN
Voice of Customer
TRUMPS CUSTOMER BEHAVIOR
Zinger Questions Kills
ACTION, EXPERIMTANTION & NEW LEARNING
6. New-to-Big
Outside-in
Power-Law outcome
Opaque markets
Dominate share
“What we can become”
What Customers Do: New Behavior
Big-to-Bigger operations
Inside out
Incremental outcome
Visible markets
% Share
“What we can make”
What Customers Say: Existing Behavior
TO: Total Addressable (customer) Problem:
FROM: Total Addressable (existing) Market:
T.A.P.
Discoverable
T.A.M.
Knowable
MISSINGTHE MINDSETSHIFT:
FROM TAMTO TAP
7. DO vs.SAY
Customers don't tell the truth (Your Baby’s Ugly!)
Watch customer actions, not words
VOC most often validates enterprise bias
Drive experiments that reveals high fidelity truth
8. TURN OUTSIDE IN
Restored instinct: Engage customer first
The truth is outside the building, in
unbiased customer behavior
9. 2030: FROM SHAREHOLDER TO CUSTOMER
THE FINK EFFECT
2016 2020 2025 2030
MARKETS
MODELS
TECH
TRADITIONAL
BLUEPRINT PLANNING
THE GROWTH OS
DISCOVERY
KNOWABLE
KNOWABLE
KNOWABLE KNOWABLE
UNKNOWABLE
UNKNOWABLE UNKNOWABLE
UNKNOWABLE
UNKNOWABLE
10. THEREARE NO
MOONSHOTS
YOU NEED TO CREATE A LADDER TO THE MOON
Enterprise unfair advantage vs.
Venture: Multiple category bet
Experimentation > Learning
velocity = Truth = Growth
Scale is created in validating
“rungs” to power law outcome
11. RIGHT, ON TIME:
A “POSITIONED CAPITAL” PORTFOLIO
1 YEAR 10 YEARS
MEET THE FUTURE
DISCOVER + EXPERIMENT FASTER:
TECH DISRUPTION
MODEL DISRUPTION
12. THE BIONIC GROWTH OS (4.0)
INSTALL
DISCOVER + GENERATE
SCALE:TALENT+ORG
ECOSYSTEM
Model Install
Diagnostics
Talent + Org
Culture
Mindset + Mech.
Funding Thesis
Decision Arch.
Metrics
Labs
Coaching
Testing
Metrics
Opportunity Areas
Recon
Ideation
GROWTH BOARD
VC PORTFOLIO + INVESTMENT PORTFOLIO + METRICS
▲
TAP 1 2
VALIDATE
LEAN EXPERIMENTATION + METRICS
TAP 1 2
13. THE GROWTH BOARD: A GROWTH DECISION ARCHITECTURE
GROWTH BOARDS SOLVE
3 COMMON + FATAL
“INNOVATION”
PROBLEMS:
Talent
(Super Administrator vs.
Super Commercializer)
Product or Technology
“In Search of Problem”
(R+D, Inside Out)
Premature Scale (Too
Much Money, Too Fast)
MANAGE
GROW
a
LAUNCHSEED
Co-Founders Cross-functional Team Full Growth Team
I I III I III
Validate
Problem
Identify +
Optimize KPIs
Scale Across Segments + Customers
Fight for TRACTION Drive to SCALE
Sell to One
Segment
Validate
Solution
Validate
Model
DISCOVER & GENERATE: Map Future State of Market, Select Opportunity Areas, Generate Solutions
VALIDATE
MINDSET
+
MECHANICS
CEO CFO CMO CTO CIO Pres., BU
VC/CD
(Internal)
EIR
(External)
II III
Search for SHOULD
14. VALIDATE:
PRODUCTIVE FAILURE
Validate (Lean) is enterprise speak for lean
startup (MVP)
Enterprise rigor, custom signals + metrics
Productive failure = cheap, fast failure: Growth
The only way to get the truth; lower the price
15. NET NEW LEARNING:
EXPIREYOUR DATA
Put an expiration date on data
Reset all old assumptions + data
(>12 Months)
Revalidate data on 1st principles logic
16. WE DEFEAT BIG TO BIGGER DECISION BIASES
“Make Better Decisions” - Harvard Business Review, May 2015
Confirmation Bias
NOT IMPARTIAL
Anchoring Bias
BELIEF IN CORE FACT
Planning Fallacy Bias
VAST UNDERESTIMATION
Consensus Bias
GROUP THINK
Status Quo Bias
PREFER WHAT IS,
IN ABSENCE OF CHANGE
Controllability Bias
BELIEF IN INDIV CONTROL
Loss Aversion Bias
OVERVALUE LOSSES
Ego Bias
EXPERIENCE INSTINCT
Optimism Bias
OVERCONFIDENCE
Sunk Cost Fallacy
NON RECOVERABLE COSTS
Commitment Escalation Bias
GOOD MONEY AFTER BAD
Present Bias
VALUE IMMEDIATE vs. LONG TERM
Vividness Bias
OVERVALUE FLASHY
Stability Bias
BELIEF THAT EMORY IS STABLE
Cognitive Rigidity Bias
FOCUS ON ONE SOLUTION
17. Opportunistic
Ideas
ROADMAP TO POSITIONED CAPITAL PORTFOLIO
TAP OPPORTUNITY AREAS GENERATED SOLUTIONS VALIDATION DOWNSELECTION POSITIONED CAPITAL
PORTFOLIO
Opportunity
Area 1
Opportunity
Area 2
Opportunity
Area 3
Internal
Ideation
Campaigns
SMEs
Extreme
Follower
Model
Bionic
Network
& EIRs
SEED LAUNCH GROW
18. GE GROWTH OS: FASTWORKS
Better Results
Growth Boards & Teams
Thinking Differently
Leadership & Training
~3,000+ leaders reached through
Crotonville-level three day leadership
training
300 + GE coaches trained
170,000 employees began self-guided
learning & exploration
GROWTH BOARDS implemented to help
focus investment on things that matter to our
customers.
100’s SEED to LAUNCH projects using
external coaches & entrepreneurs to solve
gritty customer problems.
~100+ business-wide projects underway
focused on NPIs, Comm Ops, ERPs, etc.
1 2
19. CORE IMPACT: APOSTIONED CAPITALPORTFOLIO
NewtoWorldNewtoMarketNewtoCompany
SEED LAUNCH GROW
P&L1 P&L2 P&L3 P&L4 P&L5
102 COs
$5 B Est.
$64M Exp
121 COs
$5 B Est.
$84M Exp
76 COs
$2 B Est.
$26M Exp
51 COs
$4 B Est.
$55M Exp
68 COs
$3 B Est.
$96M Exp
21 COs
$1 B Est.
$15M Exp
9 COs
$.5 B Est.
$4M Exp
24 COs
$1.2 B Est.
$17M Exp
18 COs
$.7 B Est.
$14M Exp
213 COs
$9.2 B Est.
$197M Exp
115 COs
$3.7 B Est.
$55M Exp
162 COs
$9.5 B Est.
$123M Exp
FORTUNE 10 Portfolio Distribution
20. CORE IMPACT: $22B FORTUNE 10 DIVISION
300% Increase in NPI Speed
80% decrease in NPI Cost
IMPACT:
• ‘12 – ’13
• ‘13 – ’14
• ’14 – ‘15
2012 – 13: July to July
Average: 750 Days
2013 – 14: July to July
Average: 500 Days
2014 – 15: July to July
Average: 250 Days
22. LEAD BULLETS ONLY
M+A won't work forever
The BIONIC GROWTH OS is not a Beat-
the-Quarter solution
The BIONIC GROWTH OS is a
permanent Win-the-Future capability
23. THE NEW CEO JOB:
OPERATOR +VC
The ambidextrous leader thesis
Must be super administrator +
super creator
No longer keeping up with
competitors, it's customers
The CEO who learns the fastest, wins
Wishful thinking is the enemy (Musk)
24. NEW BOUNDARIES
+
Often more valuable than money
Unlock or block model innovation
Have very deep impact into organization/speed
25. ENDTHE ADDICTION
TO BEING RIGHT
Questions, not answer-driven leadership
Answers stop learning, perpetuate biases
Ask questions that drive to new truths
What did you learn? How do you know?
26. END SUCCESS THEATER:
GO ZOMBIE HUNTING
Your growth capital + talent is trapped
Near misses are failures masquerading as success
Stop promoting intellectual dishonesty
Allow teams to sell, unsell the dream
Prevent premature scale, reduce price of failure
28. END VALLEY ENVY:
GO ONTHEATTACK
Valley has glass jaw and capitalization
crisis (Powerball tickets)
Now part of the global startup
revolution
Install. Growth. Go. Compete.
Attack the startups
No more Hail Marys vs 50:1
29. SOLVETHE LENNIE CRISIS:
LOVED TO DEATH
Large enterprises have a way of
squeezing great opportunities to death
Big to bigger “de-risking” skill create
incremental outcome
Stakeless stakeholders syndrome
31. LENS 1:
PROPRIETARY GIFTS
Know Thy Company
Outside In Market Truths
Quit Weaknesses
INSTINCT:
SEEK UNFAIR ADVANTAGES
Fearlessly Leverage Gifts
Expand Aggressively from Core Gifts
Entangle Analog + Digital
32. LENS 2:
EXTREME FOCUS
Takes the greatest courage
Experiment, fail, find light
Accept “good enough” answers
Live vs. Die decision tree
Speed over confidence (seed)
INSTINCT:
ELIMINATE OPTIONS
Startups don’t die, they run out of
money when they lose focus
Rarely outside proprietary gifts
33. LENS 3:
PAINKILLERS
Vitamins are elective, Painkillers are
indispensable
Create addictive drugs for lifelong
chronic pain (kill biased pet,
entitlement projects)
INSTINCT:
SEEK CHRONIC PAIN
Pain defines true revenue origins –
the need you truly serve
Pain reveals proprietary customer
insights & secrets
34. LENS 4:
10x
IMPACT
Incrementalism is a Path to Nowhere
Forget Benchmarking, New Metrics
Over-index investment in 10X drivers
INSTINCT:
CREATE RADICAL
DIFFERENTIATION
Don’t Chase Competitors,
Press Releases or Features
Search for Lynchpin Insights
You Need First Person Evidence
Get Back to the Shop Floor
35. LENS 5:
CREATE PERMANENCE
You must aggressively design in
Customer Dependence
Design in permanence –
explicit + implicit
Entangle analog + digital assets and
user experiences (hard to replicate)
Create 1 of 1
INSTINCT:
SEEK TRUTH NOT HOPE
Commit to Commercial Truths
Seek Productive Failure, Success is a
Bad Educator
Embrace Aggressive Darwinian
Learning
Destroy ‘Success Theater’
37. QUESTIONS (OR SKEPTICISM)?
“Sow a Thought and you reap an Action;
sow an Act and you reap a Habit; sow a
Habit and you reap a Character; sow a
Character and you reap a Destiny”
- Emerson
4 COLUMBUS CIRCLE
NEW YORK, NEW YORK
David Kidder, Co-founder
Dkidder@bionicsolution.com
38. WHAT IS YOUR ROLE?
EVANGELIST / EXAMPLE FOR A NEW WAY OF THINKING
PROVIDE AIR-COVER / RESOURCES / REASSURANCE
LEAD THROUGH QUESTIONS, NOT SUGGESTIONS
REWARD VALIDATED OUTCOMES, EVEN IF THEY ARE FAILURE
SPOT ENTREPRENEURIAL TALENT AND LEADERSHIP
INVEST BASED ON THE RIGHT CRITERIA
39. WHAT ARE THE MECHANICS?
STRUCTURE: CROSS FUNCTIONAL LEADERSHIP TEAM + BIONIC EIR
FOCUS: NEW TO BIG INVESTMENT DECISIONS + PORTFOLIO MANAGEMENT
OUTCOMES: FUNDING DECISIONS; BOUNDARIES AND PERMISSION FOR
TEAMS; EVOLUTION OF GROWTH OS
FREQUENCY: QUARTERLY MEETINGS; INTERIM UPDATES AS NEEDED
GOVERNANCE: NO ATTENDANCE, NO VOTE
41. DO:
Be open and flexible
Fight the “addiction to being right”
Evaluate the opportunity by a new set of metrics
Focus on the customer validation not your own biases
DON’T:
Be open and flexible
Fight the “addiction to being right”
Evaluate the opportunity by a new set of metrics
Focus on the customer validation not your own biases
42. EXECUTIVE SPONSOR
THE EXECUTIVE SPONSOR ROLE IS SIMILAR TO THE GENERAL PARTNER IN A
VENTURE CAPITAL FIRM:
1. Executive Sponsors build the Growth OS capability and manage the portfolio for their opportunity area.
2. Act as internal startup sponsors who offer advice, introductions, leverage, protection and support to
their teams
43. ROLE OF EXECUTIVE SPONSOR
MINDSET &
ADVANTAGE
BUILD OS
CAPABILITY
ONGOING PORTFOLIO
MANAGEMENT
SUPPORTING
Activate venture mindset
Eyes on, hands off
Question driven
Empower commercial truth
(evidence / do – bust biases)
Serve + Protect Teams
Hypothesis driven
experimentation (MVP)
Enable productive failure
Create single point of
reporting to board /org
Defeat enterprise frictions
Enable productive failure
BUILDING
Tap driven: framed
opportunity areas
Drive expanded permissions
and boundaries
Drive learning velocity (build
strong outside in network)
Identify + unlock talent
(install enabling tools,
training, platforms, services
to scale
EXECUTING
Expand portfolio
Drive volume of bets
Assist in developing
entrepreneur networks in
their IOA
Support metrics & portfolio
management
Guide learning agenda
(results, benchmarks, what
stages teams belong in)
Capture + synthesize key
learnings across portfolio
44. HOW TO SUPPORT TEAMS
STAGE
Invest in stages to ensure that
teams have clearly identified a
problem worth solving and
driven by experiment driven
commercial truth
OBSESS
Focus team into obsession with
customer problem first, then
solution, then model. Order
matters.
SIMPLIFY
Remove common frictions and
barriers , find the resources that
accelerate learning (success +
failure)
NETWORK
To internal teams and external
contacts, companies, networks
the create learning velocity and
unfair advantage
PROTECT
Create direct reporting
relationship to defeat stakeless
stakeholder frictions + capture
teams full focus
GARDENER
Not general. Eyes on, hands off.
Testing obsessions and
resourcefulness of teams.
45. EXECUTIVE SPONSOR MECHANICS
One (1) customer facing SVP (level) per opportunity area
Must have a level of tenure/seniority/respect in organization to take action
Dedicate one (1) hour/week to teams (as required)
Identify/leverage additional supporting sponsors as needed from HR, IT,
Comms/Legal, Finance, etc.
Participation in Accelerator Board meetings (as required)
47. Opportunistic
Ideas
ROADMAP TO POSITIONED CAPITAL PORTFOLIO
TAP OPPORTUNITY AREAS GENERATED SOLUTIONS VALIDATION DOWNSELECTION POSITIONED CAPITAL
PORTFOLIO
Opportunity
Area 1
Opportunity
Area 2
Opportunity
Area 3
Internal
Ideation
Campaigns
SMEs
Extreme
Follower
Model
Bionic
Network
& EIRs
SEED LAUNCH GROW
Mapped investment areas
determined by partner’s current
pipeline, proprietary gifts,
disruptive technologies, and
customer needs
Portfolio of potential solutions by
investment area to send through
Validate
Customer-validated solutions to
launch in-market Validated Winners
48. DECISIONS
KILL: Customer problem invalidated
ADVANCE: Customer problem & solution validated
RE-VALIDATE: Customer validation inconclusive
PIVOT: Customer problem validated and solution invalidated
PAUSE: Customer problem validated, solution validated and market inconclusive
RETURN TO CORE: Incremental problem and/or solution validated
50. SEED I: PROBLEM VALIDATION
What insight from the customers surprised you most?
Would you personally invest in this solution or another solution to this problem?
Are you telling the commercial truth?
What is the customer problem hypothesis?
How has talking to customers changed your understanding of the problem?
Can you define a target customer with this problem?
How painful is this problem for this customer?
How did you measure the painfulness of the problem?
How do customers solve for this problem today?
How will your solution address the customer problem?
What metrics show that you validated the problem?
What do you want to learn next?
What are you asking for today?
51. SEED II: SOLUTION VALIDATION
Do you feel your solution has qualities that create "radical differentiation?"
Do you feel the team had boundaries around the experiments that limited their learning?
Why will we win?
What new information have you learned about the customer problem?
Did the target customer change or become more refined?
Were you surprised by which assumptions were validated or invalidated?
Why does your solution solve the customer problem?
What features of the potential solution resonated the most?
What features of the potential solution resonated the least?
Do you believe your solution solves their problem significantly better than current solutions?
What was the “ask” of your customers? What percentage of customers took action?
What do you want to learn next?
What are you asking for today?
52. SEED III: BUSINESS MODEL VALIDATION
What new functions are needed to create this new economic model?
Does the unit of revenue align with a new or current value (outcome) for the customer?
What leverage can we bring to bear on this solution?
How did your solution change as you were validating the business model?
Which assumptions about your business model were validated and invalidated?
How will customers buy this solution and will they pay for it with new or existing budget?
What are your initial customer acquisition strategies?
What channels will you use to deliver your solution to paying customers?
Do you think we should, partner or buy this solution?
How do you plan to launch the solution? What is the timeframe?
What kind of technical investment is required for launch?
What do you want to learn next?
What are you asking for today?
54. HOW TO SUPPORT TEAMS
CURIOUS
Open to learning and exploring
new information and practices;
interested in understanding how
things work
INNOVATIVE
Not afraid to challenge the
status quo, question
assumptions and generate new
ideas by looking at issues from
multiple angles
COURAGEOUS
Takes calculated risk and
purposefully puts self in
challenging situations where
success is not always
guaranteed
FLEXIBLE
Remains engaged during
stressful situations brought by
ambiguity and conflict
CONNECTOR
Takes time to reflect on
experiences; spends focused
energy processing information,
gaining deeper insights intro
problems, themselves & others
as a result
55. TEAM WORKSHEET
SCORECARD
Extreme Focus: Is there an extreme focus on a single
Customer Problem?
Painkiller vs. Vitamin: Does the concept / solution address a
critical customer problem?
10X: Is this solution significantly better than current solutions?
Proprietary Gift: Does this idea have the potential to
leverage core assets and strengths?
Permanence: Will this solution create customer dependence?
Extreme FocusBroad
PainkillerVitamin
10XIncremental
ProprietaryIndependent
PermanenceTemporary
