Siphoning off cutting-edge work to a separate 'labs' group demotivates core teams and disconnects innovation from those who own the customer. Instead, foster 'innovating teams' by making innovation the responsibility of the core product teams themselves.

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Instead of a traditional product roadmap, give engineers ownership of a broad "problem space." This high-agency model pushes them to get "forward deployed" with customers, uncover real needs, and build solutions directly. This ensures product development is tied to actual pain points and fosters a strong sense of ownership.

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.

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.

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 prevent its new mobile app from simply replicating its existing web platform, Irembo framed the mobile team's goal as competing with the web team. Their key metric was shifting user traffic from web to mobile for the same services. This created a competitive dynamic that forced innovation and differentiation.

Large corporations can avoid stagnation by intentionally preserving the "scrappy" entrepreneurial spirit of their early days. This means empowering local teams and market leaders to operate with an owner's mindset, which fosters accountability and keeps the entire organization agile and innovative.

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 avoid choosing between deep research and product development, ElevenLabs organizes teams into problem-focused "labs." Each lab, a mix of researchers, engineers, and operators, tackles a specific problem (e.g., voice or agents), sequencing deep research first before building a product layer on top. This structure allows for both foundational breakthroughs and market-facing execution.

Forcing innovations to "scale" via top-down mandates often fails by robbing local teams of ownership. A better approach is to let good ideas "spread." If a solution is truly valuable, other teams will naturally adopt it. This pull-based model ensures change sticks and evolves.

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.