Menu
Free Pack
Buy Now

Why Fortune 500s Don’t Invest In Growth

  1. Home
  2. /
  3. Blog
  4. /
  5. Why Fortune 500s Don’t Invest In Growth

This blog post visualizes an idea that I heard from Roger Martin at the Drucker Forum in Vienna last year. Traditional shareholders expect predictable growth without risk. Growth requires a venture capital type investment philosophy. Let me explain.

Alex_Strategyzer_Exploit_Explore


The stock market invests in certainty, efficiency and predictability. However, growth requires a more venture capital (VC) type of investment that deals with uncertainty, unpredictability and failure.

It comes back to this dichotomy that we’ve referred to a few times on the blog: the tension between exploit and explore in established organizations. The ambidextrous organization is not just an organizational design challenge, it’s also a financial challenge because it requires two substantially different types of investments.

Stock market type investments improve the efficiency of proven business models. VC type investments will be very different because it’s about investing in potentially new growth engines. If you invest in 10 potential business ideas, 2 might make it big; 4 will be mediocre; and 4 will fail outright.

Alex_Osterwalder_Strategyzer-2

Masterclass for Business Model Innovators

Find the Masterclass closest to you

Learn more

You May Also Like

courses-index-bmc-865fd1e85c814803cb9e4086d3a0601920a53c1f4c7cbc66a53b3c50606a19f2

Mastering Business Models

A practical and convenient way to learn how to design successful business models.

Learn more

No Comments Yet

Let us know what you think