If you think there is no room in large corporations for entrepreneurs, just ask Jennifer Van Buskirk.
While working as my chief strategist at AT&T Mobility a few years ago, she developed a strategy to reach what she thought was an underserved wireless segment: people who wanted no-annual-contract (prepaid) service without compromising quality. She built a strong business plan, persuaded our senior leaders all the way to the chairman of AT&T, and received the green light to launch a new brand, Aio Wireless, which became Cricket Wireless as a result of our acquisition of Leap Wireless. Today she runs a business with over 5 million customers, leading all prepaid competitors in net customer additions during the first half of 2015.
Jennifer’s example is only one of several success stories we’ve had creating growth businesses by using a startup mentality, putting entrepreneurial leaders in charge, and letting them #BETHEBOSS, if you will, over that P&L.
Long before he was named President and CEO of AT&T Mobility, Glenn Lurie ran an incubator-like organization for AT&T we called Emerging Devices. We gave him all the tools he needed to work at startup speed and he began to connect e-readers, pill-bottles and watches to the Internet. Next thing you know, AT&T is a U.S. leader in connected devices in the Internet of Things.
And then there’s Chris Penrose, who suggested we build a lab inside a company garage where his team could work hand-in-hand with car manufacturers to create connected car platforms for their future vehicles. Two years later, the AT&T Drive Studio has signed agreements with nine automobile manufacturers and is poised to connect 50 percent of all new connected cars in the U.S. in 2015.
Finally, there is Kevin Petersen, who leads Digital Life, our home security and automation business. Kevin and his team developed an all-digital, all-IP (Internet Protocol) home security and automation service. Digital Life was a leader in the U.S.[i] home security industry in terms of net additions from 2014 to the first half of 2015.
What does it take?
If you ask me what it takes to achieve that kind of success in a large company, I would say that, generally, it takes two things:
- It takes a leader with an entrepreneurial mindset, who can spot an emerging growth area that a large corporation may not typically focus on, and who is able to develop a solid startup approach to tackle it.
- And it takes a large company that is willing to try a new approach and provide the tools for the startup to succeed — without weighing it down.
I saw the potential of the startup mentality inside a large corporation when I led BellSouth Latin America. Our international team launched or acquired startup wireless companies in 11 countries and ran them successfully, blending the knowledge of the parent company with the fire of the startup.
I believe running a startup inside a large corporation is one of the greatest developmental assignments an organization can provide for a leader. The leader of a startup has to be able to build the product or service that forms their vision, get it funded and then get customers to use the product in sufficient quantities and at the right price to make it financially viable over the long term.
Five Keys for Successful Startups
In my experience there are five keys to launching successful startups inside large corporations:
- Select entrepreneurial leaders of high integrity who are not afraid to challenge the status quo and are passionate about the mission.
- Create a compelling vision and a fun culture which allows for fast failure and course corrections on the path to success.
- Clearly “define the win” and develop a plan to get there. Know that it will take several iterations, pivots, and corrections but stay focused on the “win.”
- Protect the startup from the established bureaucracy. The startup does not need to follow the same rules and procedures of the parent organization in most cases.
- Recognize employees who take risks by choosing the startup path.
Cultivate Startups to Grow Your Business and Your Leaders
I truly believe that large corporations can innovate and grow by cultivating startups that are consistent with their core vision and mission. Not only does this approach help the corporation develop new growth engines, it also helps it grow new leaders to ensure the organization’s long-term success.
Jennifer van Buskirk is one of those new leaders that we are cultivating. Here is her perspective on what leading a startup has meant to her career.
Starting Aio and building Cricket has been the most challenging and rewarding experience of my career. You learn to take smart risks and pivot often when starting a business. The key is to create a purposeful vision, select a fearless team, and foster a vibrant culture. Our people and culture have been the keys to Cricket’s success.
— Jennifer van Buskirk
Growing leaders is as critical as growing your business. Developing a start-up culture, a culture of innovation, and smart risk-taking is critical to an organization’s future success, especially for a large organization.
