5 Lessons Big Corporations Can Learn from Startups

5 Lessons Big Corporations Can Learn from Startups

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Lessons Big Corporations Can Learn from Startups.

This wouldn’t be wrong to say that under the glass frontage of every corporate’s exterior beats the heart of a startup. So they would like you to believe.

And you can’t blame them because, in the past few years (especially since the global recession of 2008), startups are leading from the front of innovation and disruptive changes.

Just think about it.

“The US-based startup ‘Airbnb’ could be one of the fastest-growing companies in the hospitality industry. And they do not own a single property of their own. The second startup, Uber, is debatably the largest taxi aggregator in the world, and they don’t own a single taxi of their own.”

Both of these companies are examples of startups that have become conglomerates in the last few years. However, their think tank always looks for the next big idea.

Here’s our list of top 5 business lessons big organizations or established companies should take from startups.

Lesson 1. Adaptation & Flexibility

Lesson 2.  Make Processes Faster

Lesson 3. Less Bureaucracy

Lesson 4. Brainstorming

Lesson 5. Speed of Problem-Solving Process


Fasten your seatbelts. Let’s go! 

Lesson 1. Adaptation & Flexibility

The change will originate whether you want it or not, and the only thing left to do is adapt. But when you operate a large-scale or a big company, adjusting your strategy is one of the most challenging parts or, we can say, one heck of a challenge.

We’re talking about numerous omnidirectional departments that have to hold new rules. With startups, though, things are easy and fluid. They’re great at attacking problems instantly and effectively and capable of adjusting to the changing conditions.

Analyze and adjust your current approach to make it more flexible on every level of management. By all means, make flexibility a part of your corporate culture.

Lesson 2.  Make Processes Faster

Executing and implementing quickly is one of the most crucial processes in the success of a company. To achieve this, you have to make the processes faster within your organization. Startups are known for their quick decision-making ability; their decision-making process has few checks and approvals. This doesn’t mean that there is no accountability. On the contrary, there is greater accountability since each person’s decision counts towards the final goal.

Large-scale companies need to implement and speed up the process of everything they do in the organization. Higher authority should also co-operate in the process to give pace in the whole process. Doing this will empower them since they will be able to make decisions faster, but they will also be able to improve accountability amongst employees.

And greater responsibility means more motivated employees. This, in turn, maximizes employee retention, making the company a great place to work in.

Lesson 3. Less Bureaucracy

Bureaucracy is creativity’s greatest enemy. Yes, you can’t completely wipe it out, but there are ways to minimize it. Like startups do. Yes, you heard it right.

In startups, employees and founders work together, share innovative ideas, and brainstorm on every aspect of the business, from product to customer experience. Such good collaboration gives employees the liberty to express their thoughts. A fantastic way to promote innovation, right?

Here’s what we suggest to minimize strict hierarchy and encourage creativity in a large company:

  • Optimize all processes and inner communication.
  • Carry out short questionnaires (to get ideas & feedback).
  •  Develop a friendly atmosphere where every employee feels safe and respected.
  • Find a leader in every department who will convey creative notions to management.

 Remember: Your company can grow only if you make the best out of each employee’s capabilities.

Lesson 4. Brainstorming

Companies have the reputation of avoiding failure and going down a similar road that they followed before. They are scared to make a mistake; therefore, they usually take the same path. Startups, on the other hand, accept failure and grow by learning from their past mistakes. So should corporations.

During brainstorming, a team hatches new ideas and eventually finds a suitable solution to the problem. This way, brainstorming eliminates the fear of failing. A successful company is a combination of thousands of days of trial and failure — always keep that in mind.

Lesson 5. Speed of Problem-Solving Process

When a problem arises in a large company, the following process occurs: you discover it, discuss it in a group, consult with the manager, ask the department head for approval, solve it and then report effectiveness. These processes take a lot of time and effort to correct one problem. In contrast, problem-solving processes are shorter in startups.

They don’t have a large team or the department; this saves a lot of time. In turn, it accelerates the sales cycle and brings you more profit.

So, check your work-process strategy. Try to minimize or fix some time-consuming work and then speed up the problem-solving process. You can divide the process into multiple stages and shorten them as much as possible. Trust us; time management works wonders!

Wrapping Up

It all starts with a mindset. Startups are the future of business. They’re intelligent, creative, and quick, effective — everything a modern market demands. However, to catch up with these “newcomers,” large corporations must learn and follow new strict rules. So stay open to new opportunities, never stop learning, innovation, create a friendly atmosphere in your workplace, and profit will follow your company.

We hope you have understood those five startup lessons an established company can learn from startups.


Also Read: 7 Innovative Startups Tackling Climate Change

 

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