The Startup Way: How Modern Companies Use Entrepreneurial Management to Transform Culture and Drive Long-Term Growth

by Eric Ries

Traditionally, the power of managers in most organizations is measured by the number of their direct reports (or the number of people they influence via matrix management). This creates a tremendous drive for savvy managers to increase their power by arguing for ever-larger budgets and ever-more personnel. But this is a dangerous thing for an initiative that is attempting to be cross-functional. In the early days of transformation, there tends to be resistance from many functional leaders. But once the initiative has experienced its aha moment and shifts into Phase Two, many former resisters change their tune. Now they insist that the transformation can logically proceed only if it is located within their specific department!