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To avoid incrementalism when setting goals, organizations should use zero-based budgeting to define 'moonshots' from scratch. Additionally, internal innovation tournaments empower teams to set their own goals; passionate employees often set more ambitious targets for themselves than leadership would have imposed from the top down.
Instead of setting rigid goals, the OHL framework defines objectives as puzzles. Teams then form hypotheses on how to solve them and are measured on their learnings through a cycle of three questions: "How well did it work?", "What did you learn?", and "What will you try next?"
In ROI-focused cultures like financial services, protect innovation by dedicating a formal budget (e.g., 20% of team bandwidth) to experiments. These initiatives are explicitly exempt from the rigorous ROI calculations applied to the rest of the roadmap, which fosters necessary risk-taking.
Annual budgets lock capital into plans that quickly become obsolete. A better model uses 90-day cycles where teams re-evaluate priorities and re-allocate resources. This creates organizational agility and ensures money flows to the most important current initiatives, not outdated ones.
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.
Innovation leaders struggle to secure resources. A powerful tactic is to have VPs align on their long-term strategic goals, identify overlaps, and then dedicate cross-functional teams to these shared priorities. This creates executive buy-in and carves out protected capacity for innovation.
Contrary to keeping targets private to avoid failure, entrepreneur Mark Laurie advocates for announcing huge goals publicly. This act forces the team to reverse-engineer a plan, aligns stakeholders on the ultimate prize, and increases the probability of achievement—making the risk of public failure worth it.
A vision should be aspirational to inspire teams. To make it feel achievable, ground it with a product strategy that outlines concrete progress through testable hypotheses each year. The strategy translates the moonshot vision into actionable steps.
Don't just tweak last year's product plan. Start from a blank slate by defining business goals first, then allocate resources to the value propositions needed to win. This avoids getting stuck in maintenance mode and forces a focus on strategic priorities.
Chess.com's goal of 1,000 experiments isn't about the number. It’s a forcing function to expose systemic blockers and drive conversations about what's truly needed to increase velocity, like no-code tools and empowering non-product teams to test ideas.
Rewarding successful outcomes incentivizes employees to choose less risky, less innovative projects they know they can complete. To foster true moonshots, Alphabet's X rewards behaviors like humility and curiosity, trusting that these habits are the leading indicators of long-term breakthroughs.