This week I just wanted to draw your attention to an old article on Harvard Business Review about budgeting in established companies for innovation.
Here, on average, is what they estimated they were currently spending: 85% of their resources on day-to-day operations 5% on incremental improvements that produced faster, cheaper, better sameness 5% on small sustaining innovations 5% on big, disruptive innovations When we asked the managers what a better proportion might be, their answers were: 75% on day-to-day operations 5% on incremental improvements 10% on sustaining innovations 10% on big, disruptive innovations.
Personally, I find this intuitive, because of asset allocation is part of my background in finance. In situations of partial randomness, like in the financial markets, the amount you allocate defines your expose to particular risks and profit drivers.
Landing Pages for your Lean Startup
Leave a Reply