Large companies like Rippling and TripActions maintain innovation velocity by creating "carved out" teams for new, "zero to one" initiatives. This organizational strategy provides singular focus, empowering a small group to execute with the intensity and speed of an early-stage startup without corporate distractions.
To reignite growth, Supercell created two distinct operating models. Teams managing existing hit games adopted a 'scale-up' playbook, focusing on iteration with larger teams. Teams developing new titles operated like independent 'startups,' focused on high-risk innovation with small, agile teams.
Pendo's CPO warns that scaling isn't just about replicating processes for more teams. Leaders must simultaneously build coordination systems (design reviews, clear communication) while fighting to maintain the "maniacal focus on the customer" and rapid innovation that characterize small teams.
While traditionally creating cultural friction, separate innovation teams are now more viable thanks to AI. The ability to go from idea to prototype extremely fast and leanly allows a small team to explore the "next frontier" without derailing the core product org, provided clear handoff rules exist.
To innovate quickly without being bogged down by technical debt, portfolio companies should ring-fence new AI development. By outsourcing it and treating it as a separate "skunk works" project, the core tech team can focus on existing systems while the new initiative succeeds or fails on its own merits.
Afeyan advises against making breakthrough innovation everyone's responsibility, as it's unsustainable and disruptive to daily jobs. Instead, companies should create a separate group with different motivations, composition, and rewards, focused solely on discontinuous leaps.
To manage innovation and stability simultaneously, the company designates teams based on product maturity. 'Pre-PMF' teams have a six-month mandate to ship rapidly to find a market or be cut. 'Post-PMF' teams focus on long-term reliability and testing, creating distinct operational speeds within the organization.
To launch new products and compete with agile startups, embed a small "incubation seller" team directly within the technology organization. This model ensures tight alignment between product, engineering, and the first revenue-generating efforts, mirroring the cross-functional approach of an early-stage company.
Stripe's Experimental Projects Team discovered that embedding its members directly within existing product and infrastructure teams leads to higher success rates. These "embedded projects" are more likely to reach escape velocity and be successfully adopted by the business, contrasting with the common model of an isolated R&D or innovation lab.
To maintain agility while scaling, A16Z models itself after the original Hewlett-Packard, operating as a series of small, autonomous groups (e.g., crypto, infra). This structure blends the power and resources of a large organization with the speed and ownership of a small one.
To avoid bureaucratic bloat, organize the company into small, self-sufficient "pods" of no more than 10 people. Each pod owns a specific problem and includes all necessary roles. Performance is judged solely on the pod's impact, mimicking an early-stage startup's focus.