Why a top Manager with MBA or degree can “kill” your company or startup

Why a top Manager with MBA or degree can "kill" your company or startup

Examine the question in detail and tell about the book of Nathan Ferra and Jeff Daer “Creating innovations. Creative methods from Netflix, Amazon and Google”
How do you think, do company or startup is an ultra-skilled managers with an academic degree or MBA (master of business administration)?


At first glance, the answer is obvious. Of course, we need. The more employee knowledge and experience, the more he can do for the company.
However, it is not so simple. Elon Musk, founder of Tesla, Space X and PayPal, says:
To the extent possible, avoid hiring MBAs. MBA programs don’t teach to create the company. The position of my companies to hire MBA not because, but in spite of it.


Scott cook, the founder of the world renowned innovative company producing business products Intuit, agree with Elon:
When we come to the MBA graduates, we have to retrain them — nothing of what you have learned will help them succeed in innovation.


Nathan Ferret and Jeff Dyer, co-author of international best seller “the DNA of innovators”, decided to examine closely the question in his new book, “Creating innovations. Creative methods from Netflix, Amazon and Google,” and to understand why scientific degree, and MBA, very often hinder the implementation of innovations in companies and why leaders of companies have to retrain such employees.


There are several reasons:
1. Business schools teach mostly classical school of management.
2. This knowledge is sharpened to a greater extent for the implementation of managerial activities in large corporations, products which are already understandable to the audience does not require the implementation of any innovation.
3. Employees with an MBA degree feel great wherever you need to manage staff, collect data, analyze, study company strategy for years to come. But they are absolutely powerless when a company faces the need for innovation, work in the markets in which the product has not yet formed, so-called “blue oceans”.
4. Plays a role also the human factor. People who received MBA, elevate yourself to the level of gods. To them it is very difficult to get through and they very often are closed to new knowledge. Maybe that’s why the introvert and the optimizer of your time Elon Musk is trying to hire managers with MBA degree.


It is obvious that too many resources will be spent on retraining these people and “fight” with them.
Nathan Ferret and Geoff Dyer write that traditional school management is not suitable for startups and companies in which innovation plays a big role. In such companies should prevail flexible management approach. For example, in the same company with a world name Intuit not long ago began to implement the principles of design thinking and methodology of sprint (the method they write about Jake Knapp John Zeratsky in his book “Sprint: How to Solve Big Problems and Test New Ideas in Just Five Days”, printcatalogue have in our library) that gave spectacular results.


The company has empowered many employees to develop ideas and their subsequent verification in the field. To understand how it all works, here is a small example.
As usual make a decision in many companies? The Director assembles a meeting with top managers and they begin to offer their ideas for improvements in the company.
One says: “Let’s do it now, it will allow you to sell our product even better.” The Director thinks and says, “No, it’s all nonsense, it seems to me that it wouldn’t work. Who still has something to offer?”. Another Manager suggests, then a third, then fourth time they get a waiver from the Director: there is no money for implementation of the idea, then this idea seems the Director of “sheer nonsense”. Finally, the Director says, “let’s do this, I think, it will make our company better.” And all agree.


If you are familiar with this situation, then you understand how exhausting such meetings and how they are useless in terms of efficiency.
Companies that apply the principles of design thinking, methodology and Sprint methodology Lean Startup (written by Eric Rice), hold their meetings in a slightly different format.


Imagine the same situation as in the first example. Going staff and the Director and begin to offer their ideas for improving the product or service. The Director and each member of the team is very carefully listening to suggestions. In the result I come to the conclusion that it is necessary to test ideas.


Testing ideas is by creating a minimal product versions and focus groups of potential customers that respond to objective questions and give his assessment of the innovation. It takes quite a short time and the company understands, to continue her work on these products and new ideas are needed.


Someone will say that this is a waste of company resources. However, using similar methods Intuit, Amazon, company, Elon musk, has created numerous innovative, disruptive and, most importantly, profitable products.
So going back to our very first question: is there a place employees with an MBA degree in innovative companies or not? The answer is “Yes”, if you stick to the four principles, which explain in detail Nathan Ferret and Jeff Dyer in his book “Creating innovation”:


1. You must be the chief experimenter, not the person making the decision.
2. You must eliminate all bureaucratic and other barriers to ensure rapid experimentation and create minimal versions.
3. You should be able to set large and ambitious goals.
4. You have to form broad and deep skills innovator’s method: continuous training of employees and giving them rights to make decisions and test their ideas.


About the book “Creating innovations”
It should be noted that the book of Nathan Ferra and Jeff Daera is a tutorial for managers and founders of companies that are engaged in the development and implementation of innovative products. In addition to the important role of the leader-innovator of the company and the principles which he should follow, the book covers almost all aspects of innovative companies. Based on the experience of such world famous companies like Amazon, Netflix, Intuit, Google, eBay, PayPal and many others, the authors talk about how:
— create insights, applying the 5 key skills;
— to work out the idea and prototype and what tools will contribute to this;
— create a business model, and which components need to be identified before a full launch of the product;
— to refocus the company from one product to the opposite, and what “the pivot”;
— motivate the team to innovate and make the method innovator to work in an environment where bureaucracy and conservatism.
The book is filled with case studies and real-world examples of successful application all methods. Reading is a pleasure, and to apply in life — joy.


Note to the printed edition
The book “Creating innovations” is a series of Top Business Awards from the publishing house “Eksmo”. This global bestseller, which the editors of “Eksmo” make with special love and recommend reading for anyone interested in the business literature in the first place.


The cover design and the quality with which the book is printed, causing the most positive emotions. However, be ready that this book is not just another decoration on your bookshelf, and become a real business ideas, to which you will refer again and again.


Why a top Manager with MBA or degree can "kill" your company or startup

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