12 differences between corporates and startups for innovators to tune into
Why it is so hard for corporates and startups to work together?
As a founder and investor, I have collaborated with corporates for 20 years. Understanding our differences is key to unlocking advantage. “Situational logic” exposes the profound differences in how we think in each camp.
In 2017, Paul Jackson and Nancy Richter published their research studying these differences.
Here are the 12 big ideas that I use in my work every day.
#1: ON POWER
Corporates: Power is positional. If there is disagreement, your role gives way to mine.
Startups: Power is personal. If there is disagreement, we have it out.
#2: ON THE FUTURE
Corporates: The future is like the past. We get advice from experts.
Startups: The future is different. We get advice from everywhere.
#3: ON RISK
Corporates: Risk is to be avoided. We need a safe route.
Startups: Risk is important and necessary. We’ll take any route to solve the problem.
#4: ON CONFLICT
Corporates: Conflict to be avoided. If I disagree, I activate my network to undermine my opponent.
Startups: Conflict is productive. If I disagree, I say so.
#5: ON VELOCITY
Corporates: We do what the plan says. We will not push to save time.
Startups: Fast! I get annoyed if I need to wait.
#6: ON TIME
Corporates: Time must match the plan. Success must be predictable to get sustained funding.
Startups: Success takes time to materialise. Be patient.
#7: ON COMMUNICATION
Corporates: Defined by reporting lines. I follow the process to find out.
Startups: Simple and direct. If I need to know something, I call that person and find out.
#8: ON SUCCESS
Corporates: Must have. Failure stops funding. Failure indicates incompetence
Startups: Success is rare. We continue. Failure is a learning opportunity.
#9: ON ASPIRATION
Corporates: Comply with KPIs. Resist actions that risk KPI.
Startups: Excel. I resist actions that get in the way of my aspiration.
#10: ON CONTROL
Corporates: I have limited control. Failure is only partially mine.
Startups: I control success. Failure is my personal failure.
#11: ON OWNERSHIP
Corporates: I play a role. I will give it some of what I have but need. to balance other priorities.
Startups: I own it. I will give it everything I have.
#12: ON ACCOUNTABILITY
Corporates: I will give it some of what I have.
Startups: Success is on me. It is part of my normal duty.
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