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Jim Stengel - Unleashing the Innovators: How Mature Companies Find New Life with Startups

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Todays established companies must find new ways to reignite their entrepreneurial DNA and jumpstart revenues--or risk losing their way. By working with startup companies, Jim Stengel, renowned consultant to Fortune 500 companies and the former global marketing officer for Procter & Gamble, says that legacy companies can renew themselves: by acquiring new technology and creating new business lines; relearning the need for speed; sparking innovation; and learning from failures.
At P&G, Stengel saw the importance of establishing partnerships with the startup world in order to learn how to better innovate. Relying on extensive interviews with innovation leaders at enterprise companies and startups, Stengels Unleashing the Innovators takes readers inside such storied companies as GE and Wells Fargo, IBM and Target, Motorola Solutions and Toyota to see what they are learning from their alliances with entrepreneurs. Stengel also explores how even 20- and 30-year-old startups like Amazon, Google, and Facebook can reinvent themselves--and what managers at legacy companies everywhere can learn from them.
Drawing on a specially commissioned global study of over 200 established corporations and startups, conducted by research consultancy OgilvyRED, Stengel found that companies with successful startup partnerships are three times more likely to change their culture to be more innovative.
Filled with indepth stories from the front lines of todays most forward-looking companies, Unleashing the Innovators shows how companies of all sizes can better navigate todays changing landscape, accelerate innovation, increase revenues, and improve their customer relationships.

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ADDITIONAL PRAISE FOR UNLEASHING THE INNOVATORS Innovation and the ability to - photo 1
ADDITIONAL PRAISE FOR UNLEASHING THE INNOVATORS

Innovation and the ability to challenge the status quo are what ensures the long-term success of any company. The bigger, the more successful the enterprise, the tougher the challenge, and the greater the need. Jim Stengel and Unleashing the Innovators offers critical insight into how to evolve a companys culture to constantly innovate, disrupt accepted thinking, and actually benefit from the accelerating change we are all experiencing. Plus, Stengels lessons will help any individual personally challenge themselves to improve.

Dawn Hudson, CMO, the National Football League, and Board of Directors, Nvidia and Interpublic Group

Jim takes us beyond the benefits of partnerships with startups. He forces us to understand two essential human truths critical to innovationthe humility to recognize that no one organization or individual has all the answers and the courage to act on that.

Salman Amin, COO, SC Johnson

Jim Stengel aims the invaluable lessons of Unleashing the Innovators squarely at the leaders of legacy companies who labor to stay fresh and innovative. Stengel shows how to invite startup innovators into the tent to shock incumbents into new thinking; how outsidersor insiders who think like renegadesare essential to the longevity of established companies; and a set of how tosto avoid failure, and to make these unconventional and often uncomfortable partnerships with upstarts work.

Judy Olian, dean, and John E. Anderson Chair in Management, UCLA Anderson School of Management

In todays digital, customer-first world, businesses must disrupt or be disrupted. Jim Stengels fresh perspectives on leadership and purpose are an inspiring call to action for business transformation. Unleashing the Innovators is the established companys playbook for how to reignite passion and innovation within corporate culture to survive and thrive.

Karen Quintos, Chief Customer Officer, Dell

Copyright 2017 by Jim Stengel All rights reserved Published in the United - photo 2Copyright 2017 by Jim Stengel All rights reserved Published in the United - photo 3

Copyright 2017 by Jim Stengel

All rights reserved.

Published in the United States by Crown Business, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC, New York.

crownbusiness.com

CROWN BUSINESS is a trademark and CROWN and the Rising Sun colophon are registered trademarks of Penguin Random House LLC.

Library of Congress Cataloging-in-Publication data is available upon request.

ISBN9780451497239

Ebook ISBN9780451497246

Cover design by Dan Donohue

v4.1

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Contents

For my wife, Kathleen, who fosters the innovative spirit in me, our children, Claire and Trevor, and in so many others.

PLAYBILL
A List of Major Characters in the Book (in Order of Appearance)

Zackery Hicks, CIO of Toyota Motor North America and CEO of Toyota Connected. Hicks is not just studying human behavior to transform the automobile but also trying to push the limits of mobility into completely new areas with the help of partnerships with startups.

Tim Armstrong, CEO of Oath, a Verizon division that includes AOL and Yahoo brands, and former president of Google Americas operations. Having served at small and large companies and been on both sides of acquisitions, Armstrong has seen the good, the bad, and the ugly at startups and enterprise companies.

Steve Ellis, executive vice president and head of the Innovation Group at Wells Fargo, oversees the banks partnerships with startups.

Reese Schroeder, managing director of Motorola Solutions Venture Capital. Betting on more than two hundred startups over two decades, Schroeder has achieved a great ROI by focusing less on money than on how investments can help Motorola.

Joanna Seddon, president of global brand consulting at OgilvyRED. A keen observer of human nature as well as a brilliant researcher, Seddon has overseen the first quantitative study of global partnerships between enterprises and startups.

Ben Kaufman, founder and CEO of Quirky, a now-defunct startup that crowdsourced new products and teamed up with GE in a venture that tried to do too much, too fast.

Beth Comstock, vice chair of GE, who oversees GE Business Innovations. More entrepreneur than executive, Comstock has helped reinvent the industrial giant by embracing the lean-startup practices of Eric Ries and partnering with dozens of startups.

David S. Rose, founder of New York Angels and CEO of Gust, an online platform that connects investors with startups. An entrepreneur since adolescence, Rose believes legacy companies are headed to annihilation unless they enact radical changes.

Tina Sharkey, a Bay Area entrepreneur and venture capitalist who has a long history of putting together startups and large enterprises, helping to sort out and reconcile their differences, and putting them on a path to growth.

Brian Tockman, principal at 301 INC, the venture group at General Mills, tasked with finding new companies that can vault the old food company into exciting new areas.

John Haugen, VP and general manager of 301 INC and Brian Tockmans boss. A long-serving veteran of General Mills, Haugen now spends his time with progressive, young food companies.

Jeffrey Immelt, chairman of GE. Although hes held the office since 2001, Immelt has lately behaved much more like an outsider than a long-serving insider. He has spearheaded FastWorks and given active support to partnerships with startups.

Viv Goldstein, global director of innovation acceleration at GE. As cofounder of FastWorks, a multiyear effort to make the industrial giant leaner, faster, and smarter, she has overseen the FastWorks engagement with thousands and thousands of employees.

Janice Semper, leader, GE Culture. Few people know the people who work at the digital industrial giant as well as she. An HR specialist, Semper has been an indispensable player in making GEs epic makeover, FastWorks, meaningful to executives and the rank and file.

Zain Jaffer, founder and CEO of Vungle, which inserts highly targeted, entertaining ads into short videos. An immigrant from the United Kingdom, Jaffer has rapidly built a company devoted to serving smartphone addicts and the brands that support the apps.

Aaron Levie, cofounder and CEO of Box, which allows users to store, manipulate, and share digital files. Partnering with giants like IBM and Procter & Gamble, Levie has found a new role beyond technical services: helping these companies rethink their processes.

Sue Siegel, CEO of GE Ventures and healthymagination. A seasoned venture capitalist and corporate executive, Siegel oversees GEs expanding portfolio of investments and partnerships with startups.

Braden More, head of partnerships and industry relations for Wells Fargos payments business. Reporting to innovation guru Steve Ellis, More created an accelerator that works with just a handful of targeted startups each year.

Brian Cornell, CEO of Target. Coming in soon after the failure of the Canadian expansion, the hacking of credit cards, and a slow embrace of the digital age, Cornell has pushed innovative practices and partnerships on many fronts .

Gene Han, head of the San Francisco Innovation Center for Target. Arriving in the United States as a boy from South Korea, Han has harnessed his engineering and business smarts to Targets embrace of the Internet of Things. Han oversees its Open House, where walk-ins can try out new gizmos.

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