Here’s 3 popular principals that could help you (your company) to adapt fast to changing business environment.
Choose incremental risk
No risk = no return. But for most people risk provoke hidden fears to come out. Let’s first figure out what’s incremental risk. Every new venture or even new task require acceptance of risk and people aren’t willing to risk. Because of that much needed innovations not happening in appropriate timeline. As result more fearless competitors overtake well established companies.
Incremental change allow smaller changes but more regularly. Step change based on one big change. When individual company rely on incremental change that gives chance to track the result after each small innovation.
Prototyping is an experimental process of doing business. When ideas turned into real products or services. This provides opportunity to correct the product before it hit the market. Also it’s an efficient way to find out what’s working and what’s not.
Prototyping helps you save time and money. But the real trouble starts when prototyping process reach “The mood curve”.
The error budget
How much money and time can you loose? Do you keep aside budget for covering mistakes and unsuccessful projects? I do believe it’s not common to allocate particular amount of money for this type of budget but it gives peace of mind.
Let me know in comments if you use any of these principles in your business or career.