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Start-Up or Stop: When Innovation Means Knowing How to Let Go
Companies need to update their products, develop new ones and break into
fresh markets. But equally important is the ability to cull projects
that aren’t working. Dan Levinthal, the Michael J. Crouch Visiting
Professorial Fellow at the Australian School of Business, describes it
as a “difficult balance of being tough on resource allocation, but at
the same time you can’t make it stigmatising and career-ending” for
those whose ideas don't go forward. Controlled micro-failures are part
of innovation for start-ups in the tech sector, where the knowledge
gained from unsuccessful initiatives is known as “flearning”.
View all episodes
By theBoxCompanies need to update their products, develop new ones and break into
fresh markets. But equally important is the ability to cull projects
that aren’t working. Dan Levinthal, the Michael J. Crouch Visiting
Professorial Fellow at the Australian School of Business, describes it
as a “difficult balance of being tough on resource allocation, but at
the same time you can’t make it stigmatising and career-ending” for
those whose ideas don't go forward. Controlled micro-failures are part
of innovation for start-ups in the tech sector, where the knowledge
gained from unsuccessful initiatives is known as “flearning”.
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