Particularly liked this post from Kyle Tibbitts on Rate-of-Learning.
Definition: Rate-of-learning is the velocity at which you are aggregating new insights and deploying them in ways that build value.
While that post focuses on ways for individuals to approach startup career choices, this kind of thinking applies equally well to corporations approaching innovation and new business initiatives. Just replace “Normal jobs” with “Existing lines of business” and “Startup jobs” with “New lines of business” in the below.
When starting out in new, non-core areas, learning should be the primary objective. Those that learn fastest and can deploy that new found knowledge most effectively into the market stand the best chance of winning. This is particularly true in markets marked by rapid change and dynamism. It’s like a gyroscope – the speed of the internal spin rate keeps it orientated when forces try to knock it off-kilter. Companies with higher ROL’s have faster spin rates and can withstand greater disruptions.
This is one reason why corporate venture arms could and should be a source of great value. They allow established companies to significantly expand and accelerate their learning capabilities at comparatively lower cost.