General Catalyst’s Post

🚀🔍 Explore the game-changing insights from a recent Leap by McKinsey study! Discover how business leaders are redefining innovation within established organizations. 📈💡 📊 58% of leaders are doubling down on innovation, prioritising new products, services, or businesses. Dive into our article to unravel the secrets fueling this strategic shift! https://lnkd.in/dAdH9afn #BusinessInnovation #LeadershipInsights #LeapByMcKinsey #InnovationStrategies #BusinessGrowth"

Founders. CEO’s. Advisors. Do you have insights or resources that can help? Moving from leader to advisor, the biggest surprise has been how much easier it is to identify the crux of an issue as an advisor. This is counterintuitive to my thinking as a CEO. I believed deep contextual knowledge put me in the best position to understand what’s critical. I haven’t abandoned that position but in hindsight, I had similar challenges then as my clients today. This is a challenge I’m looking to better help clients overcome however I don’t feel confident I’ve nailed the root causes. My current best attempt at articulating the root causes is: Biases from Proximity and Emotional Attachment Sunk cost fallacy, inside view, confirmation bias, availability bias all contribute to either not seeing issues clearly/not weighting considerations objectively. Different Lenses Advisors work on solutions with a pure problem solving lens. Leaders are balancing various internal implementation considerations/barriers that can cloud the view of the issue. Breadth v Depth at the Strategic Level Advising across businesses gives greater breadth, leading execution within a business gives greater depth. The diversity of the advisors viewpoint at the strategic level (where most hairy problems that advisors are hired for exist) allows faster pattern recognition. Cognitive Load and Context Switching CEO’s constantly context switch. While advisors do too, advising is an easier world to go deeper on a smaller number of critical client issues. Founders/CEO’s/Advisors; what’s missing or not quite nailing it above? Do you know of any insightful resources on this topic? #leadership #startups #scaling #advice #decisionmaking #founders

part 2 SCALLING UP HOW FOUNDER'S CEOS AND TEAMS CAN GO BEYOND ASPIRATION TO ASCENT The scaling challenge comes not just from the nature of the company or the products themselves: behind every failed attempt to turn around an outdated business model, capture the benefits of an important acquisition, or scale a tantalizing start-up, there is probably some mismanagement of some aspect of talent, organizational culture, or operating model.This is evident from a quick look at the numbers: Investors have attributed 65 percent of portfolio company failures to people and organizational issues. Companies that have operating models that enable multidirectional growth (outside the core business, for instance, or in different geographies) are 97 percent more likely to outperform those that don’t. Organizations that reallocate talent frequently are more likely to outperform their peers.3 Putting one foot in front of the other The business terrain is tough, with high inflation, high interest rates, a tight talent market, and fragile supply chains—and investors are increasingly demanding profitable growth. As founder CEOs set out on their hyperscaling journeys, they will need to constantly track economic conditions and consider the company’s strategy, its sources of value creation, and its tolerance for risk amid changing winds. Hyperscalers need an operating model with fluid elements that allow leaders to mobilize quickly as new opportunities emerge, and stable elements that provide the guardrails for getting things done. To hedge against these shifts, scaling organizations should aim to create a deliberate balance between stability and dynamism within their operating models that is, hyperscalers need an operating model with fluid elements that allow leaders to mobilize quickly as new opportunities emerge, and stable elements that provide the guardrails and norms for making decisions and getting things done. To become ‘scaled innovators,’ founder CEOs need to rethink their ways of working. An extensive tesearch and experience show that six factors in particular are important for achieving this balance and scaling a product or business up successfully: a structure especially built for growth, effective ways of working, a strong talent development engine, a distinctive culture, leadership capabilities at scale, and an aligned founder CEO and top team that set clear direction

❓In 5 years from now, will you look back in your business and wish you have been more or less innovative? More or less creative in your thinking? More or less promotional of unique and skilled talent? The Infinite CXO team of Fractional C-Suite Executives have a common belief. Great leadership is more important in business today than its ever been. 💯We have On Demand Executives ready to help you foster a growth culture, solve complex problems and bring a track record of success that scales your company. #management #leadership #FractionalExecutives #innovation #humanresources

𝐓𝐡𝐞 𝐏𝐚𝐫𝐚𝐝𝐨𝐱 𝐨𝐟 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐌𝐚𝐤𝐢𝐧𝐠: 𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 𝐍𝐞𝐰𝐜𝐨𝐦𝐛'𝐬 𝐁𝐫𝐢𝐥𝐥𝐢𝐚𝐧𝐭 𝐓𝐡𝐨𝐮𝐠𝐡𝐭 𝐄𝐱𝐩𝐞𝐫𝐢𝐦𝐞𝐧𝐭 As business leaders, we are constantly faced with complex decisions that can have far-reaching consequences. Sometimes, even the most rational lines of thought can lead us to contradictory conclusions, leaving us grappling with paradoxes that challenge our understanding of decision-making. This is precisely what the brilliant Newcomb's Paradox illustrates. Imagine you're the CEO of a tech company, and an investor with an uncanny ability to predict market trends presents you with an opportunity. They offer you two options: 𝘖𝘱𝘵𝘪𝘰𝘯 𝘈: 𝘈 𝘴𝘦𝘢𝘭𝘦𝘥 𝘣𝘰𝘹 𝘤𝘰𝘯𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘢𝘯 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘦𝘢𝘭, 𝘵𝘩𝘦 𝘥𝘦𝘵𝘢𝘪𝘭𝘴 𝘰𝘧 𝘸𝘩𝘪𝘤𝘩 𝘢𝘳𝘦 𝘶𝘯𝘬𝘯𝘰𝘸𝘯 𝘵𝘰 𝘺𝘰𝘶. 𝘖𝘱𝘵𝘪𝘰𝘯 𝘉: 𝘈 𝘵𝘳𝘢𝘯𝘴𝘱𝘢𝘳𝘦𝘯𝘵 𝘣𝘰𝘹 𝘤𝘰𝘯𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘢 𝘮𝘰𝘥𝘦𝘴𝘵 $1 𝘮𝘪𝘭𝘭𝘪𝘰𝘯 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵. Here's the catch: If the investor predicted that you would choose Option B, they have already placed a highly lucrative $100 million investment deal in the sealed box (Option A). However, if they predicted you would choose both options, the sealed box (Option A) is empty. The paradox arises because both choices seem rational, yet they lead to contradictory conclusions: If you reason that the investor has already made their prediction, and the sealed box's contents are fixed, then it's logical to take both options, securing the modest $1 million investment while potentially gaining the larger deal. However, if you have faith in the investor's almost perfect predictive abilities, then it's better to choose Option B alone, as this will likely result in the sealed box containing the highly lucrative $100 million investment deal. This paradox highlights the conflict between causal reasoning (the idea that the sealed box's contents are fixed) and evidential reasoning (the belief that the investor's predictions are highly accurate), and it has no universally agreed-upon resolution. In the world of business, we often face similar paradoxical situations where rational lines of thought seem to contradict one another. The Newcomb's Paradox serves as a powerful reminder that decision-making is not always straightforward, and that we must be prepared to grapple with complex paradoxes that challenge our understanding. What's your take on this paradox? How would you approach such a situation in the business world? Share your thoughts and let's explore the fascinating world of decision-making paradoxes! #DecisionMaking #Reasoning #CriticalThinking #BusinessStrategy

🔭 – What is a Teal Company? A 2-Minute Explanation If you’re like us, you’ve probably heard or read the term “teal company” at some point over the last five years. At a glance, it seems most relevant to executives and founders, but is there any relevance for the average professional?s Here’s the short explanation – in the 1950s, a psychologist and statistician named Jane Loevinger developed an early model of lifespan development based on a tremendous amount of data. In the decades following, a number of scholars further developed that model and extended it to both consciousness and groups. What does this mean? Essentially, that we have discovered human consciousness grows over time. This growth of consciousness is reflected in things like language, problem-solving ability, and approach to relationships, as well as leadership capacity. Now, back to “teal companies”. Ten years ago, in 2014, Frederic Laloux released a book where he tied trends in corporate organization to the stages outlined in the work that had been done on individual development. Crucially, he observed that “forward-thinking” organizations like Patagonia and Buurtzorg Nederland, which emphasized autonomous teams over top-down management, represented an evolution of business or perhaps even “business consciousness”. This means that a “teal company” is a company that fits the profile of an organization driven as much by self-organization as it is by management or executives. If you look at some of the examples of such companies online, you’ll see it is a radically different way of working that emphasizes the autonomy and responsibility of front-line and execution-level employees. If you’re planning to start your own company one day, Laloux’s book is certainly worth a read. But, if you’re a professional who wants to get to the next stage in your career, the best thing you could do is read this HBR article. https://lnkd.in/gs6EkBy #respiainsights #bcorp #CSR #entrepreneurship #professionaldevelopment

There are any number of ways businesses can transform into a force for good. At a massive scale are the 'REs'-- rethinking, reengineering, retooling, reimagining--to reduce the impact of your operations on the environment. But what about on a smaller scale? In an article I wrote for MinuteHack I outlined where value resides and, therefore, can be nurtured, by businesses of any size (https://lnkd.in/dR8WWbHD). That includes connecting with the local community wherever you have locations. While it might seem self-evident that to be a good corporate and societal citizen you need to be considered a trusted member of your local community, it helps to understand the downside of not being a steward of value at a local level: "When your company is absent from the local community’s life, “us-vs-them” tensions are exacerbated, making reputation building far harder, and damaging your relationships with stakeholders. A laser focus on societal value is good for investors. 73% say being socially responsible positively contributes to their ROI. However, only 36% of consumers trust business leaders to do what is right. This is both a problem and opportunity. The problem is evident: you aren’t trusted. The opportunity is also clear: get deeply engaged in the community by demonstrating that you care." Doing well creates meaningful and measurable societal value. Seems easy enough. So today is as good a day as any to demonstrate why you are a valued community member. #sustainability #sustainablebusiness #business #doingwellbydoinggood #leadbyexample #leadership #leaders

 Business Transformation Business transformation is becoming an increasingly relevant topic in today's world. Every entrepreneur today faces the necessity to adapt quickly to the rapidly changing environment, new technologies, and dynamic markets. To understand the essence of business transformation, it is essential to delve into the depth of this process and comprehend its roots. Through this, we will be able to uncover the key mechanisms behind the success or failure of business transformation and provide valuable insights for entrepreneurs in today's competitive era. Let's together immerse ourselves in the world of business transformation and explore what awaits us on our journey to understanding this important issue. Now, let's look at several main aspects of business transformation that may be key to success in the modern business environment. One of the key elements of transformation is the ability to adapt and innovate. Businesses that cannot respond to changes and innovate their products or services have little chance of surviving in today's competitive landscape. Another important aspect is digitization and technological transformation. Digital technologies have an increasing impact on businesses, and companies that efficiently utilize digital tools and analyze data can gain a competitive advantage. An essential part of business transformation is also the change in corporate culture and mindset. Entrepreneurs and employees must be open to changes, learning, and new approaches to work. A culture of innovation and support for creativity can lead to better results and company growth. These aspects of business transformation are just a few of many that can influence the success of the transformation. It is important to remember that each company is unique, and understanding specific needs and challenges is crucial for a successful business transformation. With a proper understanding of the roots of transformation, we can better navigate changes and achieve success in today's dynamic business landscape. Another important element of business transformation is strategic planning and management. Entrepreneurs need to have a clear vision and strategy that will guide their company to success in the long term. Analyzing the market, competition, and their own strengths and weaknesses is essential for formulating an effective strategy that will lead to growth and sustainable competitive advantage. Another key element of business transformation is engaging the entire team and building strong leadership. Company leadership must be able to inspire, motivate, and guide their employees through changes and new challenges. Building a strong team and culture of collaboration is crucial for successful transformation and achieving common goals.  Josef Anger, the CEO, Owner, and Board Member of #CNBC #Transformationtuesday #Transformyourself #Transformationchallenge #Transformationjourney #Transforminglives #Transformandgrow #Leadership

In both human and animal behavior, responses to danger often manifest as fight, flight, freeze, or fawn reactions. Interestingly, these same strategies are applicable within the realm of business. The conventional fight-flight-freeze reaction is widely recognized. When fighting, one confronts the danger head-on, akin to battling an adversary. Flight involves distancing oneself from the threat, while freezing entails halting and seeking concealment, anticipating a passing of the danger. Lesser-known is the fourth strategy, fawn, which involves ingratiating oneself to others to circumvent conflict. Rather than engaging in confrontation, avoidance, or passivity, individuals seek to alleviate the danger by garnering approval from the opposing party. In the context of business, these strategies manifest as follows: Fight: This entails the traditional approach of vying for market dominance by outperforming competitors. It involves striving to surpass rivals in size and strength and seizing opportunities to attack them. Flight: This strategy involves differentiation, targeting market segments where competitors are absent. It lies at the core of Michael Porter’s theories as well as the principles of Blue Ocean Strategy. Freeze: Here, the focus is on maintaining a modest, stable presence, operating within a niche market to achieve success without drawing undue attention. This approach is commonly adopted by smaller enterprises and startups. Fawn: Contrary to confrontation, this strategy emphasizes collaboration, aligning with competitors or striving to appease them to maintain harmony. It is most prevalent in less fiercely competitive environments. Reflecting on these strategies prompts two critical questions for organizations: 1. What strategy is currently being employed by our organization? 2. Which strategy should our organization adopt moving forward? [Originally featured in The Strategic Leadership Playbook, April 2023]