There are multiple paths to Net-New, each with its own pros and cons, and risk and cost profiles. In the middle of the ‘extremes’ of incremental improvement and M&A is Incubation, where you have the most control, influence, and flexibility in regards to costs and outcomes – i.e. the most options. Unfortunately, this is often an area of underperformance, or else it stays too close to the core and delivers little to no net-new.
Venture-building is taking over the disruptive side of corporate incubation. It is conducted farther from the gravitational pull of the BUs, to create the ventures you wish you could invest in. By pulling it farther away, the Venture-Building process finds bigger opportunities, and gets them in-market faster. This is creating new revenues, not just strategic learning. Here’s a bit more about our approach, and ultimately there’s no perfect solution, but there are good-better-best alternatives based on what you’re trying to achieve.
If you feel there’s room for improvement in your quest for net-new, here are some starter questions to set the stage for action.
Questions to ask:
- Which of these paths to net-new revenues does your organization use today?
- Which have performed well historically for your org?
- Which ones has the org stayed away from? Why?
- If your org is growing into any of these, which? How are you managing the risks?
- How are net-new opportunities being resourced? How are they being treated differently from the core business?
If you’re keen to explore what to do with those answers and/or to see how venture-building might complement your growth portfolio, please reach out. No sales pitches on our end – we welcome the opportunity to think aloud with you about pathways you’re exploring.
