# The Start-Up Organization within an Organization By:: [[Brian Heath]] 2024-09-24 Here is a recipe for disaster: try to change the fate of an organization by creating an internal team to operate like a start-up and deliver innovative change. This strategy looks good from far away but quickly falls apart upon closer examination. Consider why one would implement such a strategy instead of just changing the organization. Obviously, change is going to be hard. One can either face it directly or ignore it entirely. Sitting on the fence by creating an internal start-up organization shows no understanding of organizational realities and very short-sighted, bad, and inauthentic organizational leadership. The start-up organization will eventually shut down and fail, but there are two primary failure modes. The first is that the start-up organization goes way off the rails, lives off the endless stream of money, and delivers nothing because most start-ups fail regardless, but start-ups within the organization have very little motivation to succeed. There is no large upside or downside. Sit back, play table tennis, and drink beer in the cool offsite offices while thinking innovative thoughts. Eventually, the CFO looks at the bill and insists that it ends. The other failure mode is that the start-up organization gets sucked into the black hole that is the organizational culture and processes. Start-ups are more innovative because they are often free to exist outside these constraints. Most organizations and managers have difficulty letting go of their power and do not look kindly on outsiders who can break the spoken and unspoken rules. So, these start-up organizations also end up doing nothing. So, for an internal start-up organization to be successful, one must find a way to orbit the black hole. We think maintaining orbit is easy and abundant because we exist on a rock in a fairly stable orbit. It isn't. Maintaining a stable orbit is nearly impossible in the long run and extremely rare. In all likelihood, one will come crashing into the black hole or be flung off into the void of nothingness. It might be a fun ride while it lasts, but the start-up within an organization to change the organization is nothing more than a poorly thought-out distraction. Smart leaders who see this happen declare victory early and depart immediately. #### Related Items [[Organization]] [[Strategy]] [[Business]] [[Change]] [[Leadership]] [[Start-Ups]] [[Failure]]