Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
Interpretation
Innovation often starts with ideas that seem poor or unviable, especially in large companies.
This quote emphasizes that the path to true innovation is often littered with ideas that may initially appear to be bad. In large companies, the bureaucratic structures can stifle creative thinking, making it harder for unconventional ideas to emerge and be explored, which is critical for true innovation.
In practice
This quote can be used in a corporate training session on fostering a culture of creativity.
As a company gets big, the information that informs decision-making gets massive. Depending upon the prism through which you view the business, your perspective will vary. If two people are in charge, this variance will cause conflict and delay.
You read these management books that say, 'These are the hard things about running a company.' But those aren't really the hard things. The hard things are when you have to layoff half your company, or you have to fire your best friend. Or you have to figure out a way not to go bankrupt.
Look - this is the terror of being a founder & CEO. It is all your fault. Every decision, every person you hire, every dumb thing you buy or do - ultimately, you're at the end.
Nobody knows how to be a CEO. It's something you have to learn. It's a very lonely job.
As long as people are clear on what they need to do and what's going on, you're very likely to succeed. When nobody is clear, then you're guaranteed to fail.
I emphasize to C.E.O.s, you have to have a story in the minds of the employees. It's hard to memorize objectives, but it's easy to remember a story.
Accounting is the language of business.
The buyer is entitled to a bargain. The seller is entitled to a profit. So there is a fine margin in between where the price is right. I have found this to be true to this day whether dealing in paper hats, winter underwear or hotels.
Merchandising, merchandising, where the real money from the movie is made.
Business is what concerns us. If you care about something enough to do something about it, you're in business
The business world worships mediocrity. Officially we revere free enterprise, initiative and individuality. Unofficially we fear it.
Mastering the paradox of star brands is very difficult and rare - fortunately.
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