What if you could incubate the energy and talent that fuels so many startups, inside a big company?
Prehype, a product innovation company with offices in New York City, London, Copenhagen, and Rio, is doing just that, providing an infrastructure of collaboration in which big company executives and their team members willingly play on equal ground. The result? Companies retain more talent, and entrepreneurial employees get the chance to remake their day jobs into their dream jobs.
Capturing the Startup Spirit
In the not-so-distant past, every business school graduate’s dream was to get an offer from a Fortune 500 company, thanks to the promise of a good salary, competitive benefits, and a strong foothold on the corporate ladder. But these days, new MBAs are increasingly forming their own ventures instead. And often, the startups they create are the result of collaboration.
At the Wharton School, 5 percent of graduating MBAs started their own business rather than looking for jobs; that means more Wharton MBAs are becoming entrepreneurs than hedge fund managers. At Stanford, a whopping 12 percent of 2012 MBAs started their own businesses rather than going to work for someone else.
Big companies are scared by this trend — and they should be. The talented employee who tenders her resignation in order to start her own company often inspires others to follow suit. This exodus lowers morale at a big company and causes a drain on the talent pipeline that such companies have long taken for granted.
Enter Prehype, which brings the creativity and exhilaration of a startup venture into big company structures. Prehype founder Henrik Werdelin, a Danish digital dynamo, has designed his career around turning conventional business wisdom on its head. Watch a video of Henrik talking about innovation:
He and partners Philip Petersen and Steven Dean all have deep product experience working for and with big companies and startups alike, so they speak both cultures’ languages. And they believe the two cultures have much to learn from one another — and a lot to gain by collaborating.
Cultivating Internal Stars
Traditionally, when a big company wants to expand into a new line of business or target a new customer segment, it scrambles to hire outside talent. Prehype helps break this paradigm, focusing instead on finding entrepreneurial talent inside a company’s ranks.
Prehype then helps these internal entrepreneurs — or “Entrepreneurs in Residence” — develop their new product ideas and pitch them to company executives. When execs give the green light, they give the employees the freedom, investment (of time and money), and opportunity to bring the idea to life.
Since a product’s fate ultimately lies with customers’ willingness to buy it, Prehype helps companies get customer feedback as early as possible in the life of the product — namely, within 100 days.
Leveraging a company’s existing human resources to develop innovative products comes with a host of advantages:
- Employees want to be happy, appreciated, intellectually challenged, and engaged. Prehype believes the best way to achieve this is to help employees execute their own ideas in an effort to support the company where they work.
- Companies develop a stronger spirit of collaboration, and employees feel a renewed sense of pride in their work and loyalty to the company.
- The 100-day launch timeline instigates a high level of camaraderie. It leaves no time for office politics, power plays, and the dreaded corporate silo mentality. To get a product off paper and into the hands of customers in 100 days, everyone involved needs to roll up their sleeves and work together.
- Though working for a startup sounds like nirvana to many a corporate employee, the truth is that it is a lot of work and success takes time to build. For people who have hefty financial obligations (such as mounting student loan debt, a mortgage, or a spouse or children who depend upon a stable income and benefits), leaving a corporate job for a startup can be difficult to near impossible. Prehype’s method gives employees a way to keep the stability of their corporate jobs while increasing the satisfaction they get from their work.
- It’s far cheaper for companies to fail and learn with their existing teams than it is to do an external talent search that may bring forward a candidate who doesn’t understand, like, or fit into the company culture.
Making Big Companies Better
Prehype focuses on bringing together companies, entrepreneurs, and freelancers with world-class technical chops to help large companies capitalize on opportunities and minimize threats.
Of course, that doesn’t always work. The bigger the company, the more complex its politics. And when a big company has been successful for a long time, it can be difficult to get its management to realize that what made them successful in the past will not necessarily make them successful in the future. Plus, in the current economic downturn, even the boldest corporate employees can be reticent about suggesting new ways of doing things, for fear of losing their jobs.
Given these challenges, why not just help entrepreneurial-minded people get out of Dodge, ditch their companies, and start their own business independently? The Prehype team certainly has the skills and connections to make that happen. Steven Dean offered one answer.
“Companies have interesting problems to solve,” he said. “They have an enormous impact on society because they are deeply entrenched in our everyday living, and they have been for a long time. If we can help them succeed, then we all win.”
Though they are open to working with a wide variety of companies in a whole host of industries, the Prehype team has found that certain company characteristics are more likely to predict success with the Prehype model than others. Midsize companies, with a demonstrated ability to change with the times, are much more open to the Prehype methodology. It also helps if a company’s back is up against the wall and it has no choice but to change or fall off the map. Desperate times call for unprecedented measures, which can be just what’s needed to allow a company to embrace the change it needs.
Prehype is currently on the hunt for new markets and partners who want to reinvent the way business innovates. Given the number of frustrated corporate employees and big companies that desperately need creative solutions to stay alive, I’d say Prehype has a lot of potential ahead of it, indeed.
Christa Avampato is a product developer, freelance writer, and yoga and meditation teacher based in New York City. She blogs daily about the art of creative living at Christa In New York: Curating a Creative Life. Learn more about the things that light her up by visiting her company website Chasing Down the Muse and very-often-updated Twitter feed.Related