While processes are essential for scaling, excessive rigidity stifles the iterative and experimental nature of innovation. Organizations must balance operational efficiency with the flexibility needed for creative breakthroughs, as too much process kills new ideas.
As startups hire and add structure, they create a natural pull towards slower, more organized processes—a 'slowness gravity'. This is the default state. Founders must consciously and continuously fight this tendency to maintain the high-velocity iteration that led to their initial success.
Corporate creativity follows a bell curve. Early-stage companies and those facing catastrophic failure (the tails) are forced to innovate. Most established companies exist in the middle, where repeating proven playbooks and playing it safe stifles true risk-taking.
As a company grows, its old operational systems and processes ('plumbing') become obsolete. True scaling is not about addition; it's about reinvention. This involves systematically removing outdated processes designed for a smaller scale and replacing them entirely.
If a company creates a siloed "innovation team," it's a sign the main product organization is stuck in "business as usual" maintenance. Innovation should be a mindset embedded across all teams, not an isolated function delegated to a select few.
As companies scale, the "delivery" mindset (efficiency, spreadsheets) naturally pushes out the "discovery" mindset (creativity, poetry). A CEO's crucial role is to act as "discoverer-in-chief," protecting the innovation function from being suffocated by operational demands, which prevents the company from becoming obsolete.
To maximize creativity and dynamism, Netflix operates with minimal process, managing as "loosely" as possible without falling into actual chaos. Unlike manufacturing, which seeks to reduce variance, creative organizations should embrace high variance to foster innovation.
Frame process management like a portfolio. Processes exist solely to lower 'beta' (volatility and unpredictability). The tradeoff is they also suppress 'alpha' (creativity and outperformance). The key is applying rigid processes where you need low beta (e.g., payroll) while allowing freedom where you need high alpha (e.g., new product discovery).
The 'move fast and break things' mantra is often counterproductive to scalable growth. True innovation and experimentation require a structured framework with clear guardrails, standards, and measurable outcomes. Governance enables scale; chaos prevents it.
As a creative business scales, its operational needs and existing structure can start dictating strategy, stifling the original vision. Founders must actively resist this inertia to avoid simply servicing the machine they've built.
Leaders often frame innovation as a monumental, revolutionary act, which can stifle progress. A more practical approach is to define it as incremental improvement. Fostering a culture where teams focus on making small, consistent enhancements to existing processes makes innovation a daily, achievable habit rather than a rare, intimidating event.