Skip to main content

The Improvisational Startup

  • Chapter
  • First Online:
Spinning into Control
  • 672 Accesses

Abstract

When undertaking to incubate a startup, many founders find adaptive “lean” planning difficult to initialize, unhelpful or simply contrary to their management style. They struggle to uncover a novel seed idea or hypothesis. Or they struggle to envision an attractive solution or profitable enterprise that might realize their mission. Planning may feel unnatural. These venture craftsmen prefer to collapse planning, design, execution and learning into a single creative act. Instead of thoughtfully iterating, they prefer to spin.

Entrepreneurial improvisation upends the adaptive model of continuous planning, experimentation and learning . Hypotheses become less critical, as does the scientific method. When mastered, a founder using improvisation to incubate her startup behaves more like a jazz musician, artisan, software hacker, or even a battlefield warrior than a manager or engineer.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Notes

  1. 1.

    Parks, B, Olson, P D, and Bokor, D W (1991), “Don’t Mistake Business Plans For Planning (It May Be Dangerous To Your Financial Health),” Journal of Small Business Strategy, Vol. 1(2), 15–24.

  2. 2.

    Bartlett, S (October 2002), “Seat of the Pants,” Inc. magazine, at http://www.inc.com/magazine/20021015/24772.html

  3. 3.

    Leybourne, S, and Sadler-Smith, E (2006), “The Role of Intuition and Improvisation in Project Management,” International Journal of Project Management, Vol. 24(6), 483–492.

  4. 4.

    Singhvi, S S (2000), “Business Planning Practices in Small Size Companies: Survey Results,” The Journal of Business Forecasting Methods & Systems, Vol. 19(2), 3–8.

  5. 5.

    Allred, A T, and Addams, H L (2006), “After Receiving Financing, Do Inc. 500 Companies Continue to Utilize Their Business Plan?,” Journal of Small Business Strategy, Vol. 17(1), 17–26.

  6. 6.

    Becherer, R C, and Helms, M M (Fall 2009), “The Value of Business Plans for New Ventures: Company and Entrepreneur Outcomes,” Journal of Small Business Strategy.

  7. 7.

    Goldfarb, Kirsch, and Gera (2009), “Form or Substance? The Role of Business Plans in Venture Capital Decision Making,” Strategic Management Journal.

  8. 8.

    Bhidé, A (2000), The Origin and Evolution of New Businesses, Oxford University Press.

  9. 9.

    Liao, J , and Gartner , W B (Fall 2007/Winter 2008), “The Influence of Pre-venture Planning on New Venture Creation,” Journal of Small Business Strategy.

  10. 10.

    Botha, M, and Robertson, C L (August 2013), “Potential Entrepreneurs’ Assessment of Opportunities Through the Rendering of a Business Plan,” SAJEMS, (3), 249–265.

  11. 11.

    Moltke, Helmuth, Graf von, Militarische Werke. vol. 2, part 2, 33–40. Found in Hughes, Daniel J (Ed.) (1993) Moltke on the Art of War: Selected Writings, Presidio Press, New York, pp. 45–47 (source: Wikipedia).

  12. 12.

    Livingston, J (2007), Founders at Work: Stories of Startups’ Early Days, Apress (Springer Nature), New York, p. 28.

  13. 13.

    de Geus, A (1997), The Living Company: Habits for Survival in a Turbulent Business Environment, Harvard Business School Press.

  14. 14.

    Parks, B, Olson, P D, and Bokor, D W (1991), “Don’t Mistake Business Plans for Planning (It May Be Dangerous to Your Financial Health),” Journal of Small Business Strategy, Vol. 1(2), 15–24.

  15. 15.

    Lidow, D (2016), “How to Find Customers for Your Startup”, Entrepreneur Magazine, February 18, 2016, at https://www.entrepreneur.com/article/253573

  16. 16.

    Magretta, J (May 2002), “Why Business Models Matter,” Harvard Business Review, at https://hbr.org/2002/05/why-business-models-matter

  17. 17.

    Osterwalder, A, and Pringeur, Y (2010), Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers, Wiley.

  18. 18.

    Blank, S (May 6, 2015), “Why Build, Measure, Learn Isn’t Just Throw Things Against the Wall to See If They Work – the Minimally Viable Product”, blog at www.steveblank.com

  19. 19.

    Hmieleski, K (2009), “Entrepreneur Improvisational Behavior and New Venture Performance,” Frontiers of Entrepreneurship Research, Vol. 29(5), p. 4.

  20. 20.

    Leone, L (2010), “A Critical Review of Improvisation in Organizations: Open issues and Future Research Directions.” In Opening up Innovation: Strategy, Organization and Technology. London Business School: Druid paper, 16–18.

  21. 21.

    Moorman, C, and Miner, A S (October 1998), “Organizational Improvisation and Organizational Memory,” The Academy of Management Review, Vol. 23(4), 698–723.

  22. 22.

    Which evolved later into Kleiner, Perkins, Caufield & Byers.

  23. 23.

    Thomas J. Perkins, “Kleiner Perkins, Venture Capital, and the Chairmanship of Genentech, 1976–1995,” an oral history conducted in 2001 by Glenn E. Bugos for the Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 2002, p. 7 (at Calisphere).

  24. 24.

    Lebret, H (2009), “Bob Swanson & Herbert Boyer : Genentech”, Startup: What We May Still Learn from Silicon Valley, June 11, 2009, at http://www.startup-book.com/2009/06/11/bob-swanson-herbert-boyer-genentech/

  25. 25.

    “Venture Capitalist Tom Perkins,” Interview with Knowledge@Wharton, December 5, 2012.

    Note: Although Wharton article states KP invested $250,000 in seed capital, IPO cap table shows only $200K. Accessed at http://knowledge.wharton.upenn.edu/article/venture-capitalist-tom-perkins-if-there-is-no-risk-you-have-already-missed-the-boat/

  26. 26.

    Swiss Pharmaceutical Giant Roche Bought 56% of Genentech for $2.1 Billion in 1990 and in 2009 Bought the Remaining Shares for $46.8 Billion. Source: “Anatomy of a Merger”, Knowledge@Wharton, September 1, 2010. Accessed at http://knowledge.wharton.upenn.edu/article/anatomy-of-a-merger-hostile-deals-become-friendly-in-the-end-right/

  27. 27.

    Robert A. Swanson , “Co-founder, CEO, and Chairman of Genentech, Inc., 1976–1996,” an oral history conducted in 1996 and 1997 by Sally Smith Hughes, Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 2001. p. 95 at http://content.cdlib.org/view?docId=kt9c6006s1&&doc.view=entire_text

  28. 28.

    Robert A. Swanson , “Co-founder, CEO, and Chairman of Genentech, Inc., 1976–1996,” an Oral History, p. 62.

  29. 29.

    Firstly, the command-and-control model typical of large pharmaceutical companies—needed to wring efficiency out of multi-year clinical trials required for regulatory approval and costly marketing to doctors and hospitals—was too slow-moving and cumbersome for a startup engaged in a high risk search for breakthroughs that could be licensed to industrial partners. Secondly, the publish-or-perish, intellectually driven academic model, with its skepticism of commercial applications, would have failed to deliver proprietary intellectual property and a focus on profit-making enterprise. And lastly, the emerging high tech model born in Silicon Valley and typified by pioneers Hewlett-Packard and Fairchild Semiconductor, relied on rapid engineering and release of innovative, sales-generating products.

  30. 30.

    Powell, W, and Sandholtz, K (January 2010) “Chance, Necessité, et Naïveté: Ingredients to Create a New Organizational Form,” Stanford University Working Paper, 16–17 at http://web.mit.edu/iandeseminar/Papers/Woody%20Powell%20-%20Book%20Chapter.pdf

  31. 31.

    Powell, W, and Sandholtz, K (January 2010), “Chance, Necessité, et Naïveté: Ingredients to Create a New Organizational Form”, p. 29.

  32. 32.

    First published in French as La Pensée Sauvage, Librairie Plon; and in an English translation as The Savage Mind, University of Chicago Press, 1966.

  33. 33.

    Duymedjian, R, and Rüling, C-C (2010), “Towards a Foundation of Bricolage in Organization and Management Theory,” Organization Studies.

  34. 34.

    Senyard, J, Baker, T, and Davidsson, P (2009), “Entrepreneurial Bricolage: Towards Systematic Empirical Testing,” Frontiers of Entrepreneurship Research, Vol. 29(5), Article 5. Available at http://digitalknowledge.babson.edu/fer/vol29/iss5/5

  35. 35.

    Senyard, J, Baker, T, Steffens, P, and Davidsson, P (2014), “Bricolage as a Path to Innovativeness for Resource-Constrained New Firms,” March 2014, Journal of Product Innovation Management, Vol. 31(2), 211–230.

  36. 36.

    Schumpeter, J A (1947). “The Creative Response in Economic History,” The Journal of Economic History, 7, 149–159.

  37. 37.

    “Work examining the first e-mail system, Henry Ford’s production line, much of Edison’s work, the success of product design company IDEO , the polymerase chain reaction innovations that fueled the biotechnology revolution, and many other examples demonstrate that the processes of recombination of existing elements are fundamental to explaining many successful innovative outcomes.” Source: Senyard, J, Baker, T, Steffens, P, and Davidsson, P (March 2014), “Bricolage as a Path to Innovativeness for Resource-Constrained New Firms”.

  38. 38.

    0.558 with p < 0.01.

  39. 39.

    Archer, G R, Baker T, and Mauer, R (2009). “Towards an Alternative Theory of Entrepreneurial Success: Integrating Bricolage, Effectuation and Improvisation,” Paper Presented at the Frontiers of Entrepreneurship Research Conference, Babson College.

  40. 40.

    Research completed while at Carnegie Mellon University in Pittsburgh, PA.

  41. 41.

    Sims, P (2001), Little Bets: How Breakthrough Ideas Emerge from Small Discoveries. Simon & Schuster, p. 10.

  42. 42.

    Sarasvathy, S (2001), What Makes Entrepreneurs Entrepreneurial?, Darden Business Publishing, p. 2. Accessible at http://www.effectuation.org/sites/default/files/documents/what-makes-entrepreneurs-entrepreneurial-sarasvathy.pdf

  43. 43.

    Sarasvathy, S (2001), What Makes Entrepreneurs Entrepreneurial?, Darden Business Publishing, p. 2.

  44. 44.

    “How Design Thinking Transformed Airbnb from a Failing Startup to a Billion Dollar Business,” First Round Review, published by First Round Capital at http://firstround.com/review/magazines/

  45. 45.

    https://blog.ycombinator.com/paul-graham-startup-school-radio-interview/

  46. 46.

    https://www.quora.com/For-how-much-was-Reddit-sold-in-the-transaction-with-Conde-Nast

  47. 47.

    So-called growth hackers are a special breed, combining data analysis, creativity and a curiosity about human behavior to pump up the number of monthly active users of their Internet venture’s websites or mobile apps.

  48. 48.

    I use the word “materials” loosely to mean any of the building blocks of startup incubation.

  49. 49.

    National Public Radio (US) interview, “All Things Considered,” March 19, 2011.

  50. 50.

    Turkle, S (1995), Life on the Screen, Simon & Schuster, p. 57.

  51. 51.

    Turkle, S, and Papert, S (Autumn 1990), “Epistemological Pluralism: Styles and Voices Within the Computer Culture,” Signs, University of Chicago Press, Vol. 16(1), From Hard Drive to Software: Gender, Computers, and Difference, p. 136.

  52. 52.

    Defined as “dependence on pre-existing contact networks as the means at hand.” Baker, T, Miner , A, and Eesley, D (2003), “Improvising Firms: Bricolage, Account Giving and Improvisational Competencies in the Founding Process,” Research Policy (Elsevier Science) Vol. 32, p. 270.

  53. 53.

    Baker, T, Miner, A, and Eesley, D (2003), “Improvising Firms: Bricolage, Account Giving and Improvisational Competencies in the Founding Process”, p. 265.

  54. 54.

    Livingston, J, Founders at Work, p. 64.

  55. 55.

    Livingston, J, Founders at Work, p. 153.

  56. 56.

    “How Entrepreneurs Come Up with Great Ideas,” Wall Street Journal, April 29, 2013, at http://www.wsj.com/articles/SB10001424127887324445904578283792526004684

  57. 57.

    Livingston, J, Founders at Work, p. 154.

  58. 58.

    Honig, B, Karlsson, T, and Hägg, G (2013), “The Blessing of Necessity and the Advantages of Newness.” In Corbett and Katz (Ed.), Entrepreneurial Resourcefulness: Competing with Constraints (Emerald Group Publishing).

  59. 59.

    Duxbury, T (2014), “Improvising Entrepreneurship,” July 2014, Technology Innovation Management Review, p. 25.

  60. 60.

    von Clausewitz, C. (originally published in 1832), On War. Ed. and Trans. Howard, M, and Paret, P (1984) Princeton University Press.

  61. 61.

    Duggan, W (2004), Napoleon’s Glance: The Secret of Strategy, Nation’s Books.

  62. 62.

    Emerson, R W (1850), “Napoleon; Or, the Man of the World” from Representative Men, public domain, p. 274.

  63. 63.

    Packwood, A (Winter 2012–13), “A Tale of Two Statesmen,” Finest Hour magazine, issue 157, The International Churchill Society, p. 14.

  64. 64.

    US Marine Corps Doctrinal Publication 1, “WarFighting”, 1997, p. 11.

  65. 65.

    US Marine Corps Doctrinal Publication 1, “WarFighting”, 1997, p. 18.

  66. 66.

    He reportedly wrote: “Nobody has conceived anything great in our century: it falls to my lot to give the example.” Andrew Roberts, Napoleon and Wellington, p. 59; Source: Packwood, A (Winter 2012–13), “A tale of two statesmen”, Finest Hour magazine, issue 157, The International Churchill Society, p. 14.

  67. 67.

    Alberts, D S, and Hayes, R E (2003), “Power to the Edge,” DoD Command and Control Program, p. 217.

  68. 68.

    Caldicott, S M (November 28, 2012), Midnight Lunch: The 4 Phases of Team Collaboration Success from Thomas Edison’s Lab, John Wiley & Sons, Hoboken (NJ).

  69. 69.

    Alberts, D S, and Hayes, R E (2003), Power to the Edge: Command and Control in the Information Age, p. 208.

  70. 70.

    Sabourin, R, and Pratt, R (September 2013), “Attentional and Interpersonal Characteristics of Improvisation Professionals vs. Business Executives,” blog at www.anderson-sabourin.com

  71. 71.

    A concept well described in Harvard Business Essentials: Managing Creativity and Innovation, Harvard Business School Press, 2003.

  72. 72.

    Duxbury , T (2014), “Improvising Entrepreneurship,” July 2014, Technology Innovation Management Review, p. 25.

Author information

Authors and Affiliations

Authors

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Kornel, A. (2018). The Improvisational Startup. In: Spinning into Control. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-51356-4_5

Download citation

Publish with us

Policies and ethics