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

by Eric Ries

WordPress has structured incentives this way since its founding in 2003. But at more established organizations, it’s necessary to change the way people are rewarded. This can be incredibly difficult, especially in a place that has had the same systems in place for a long time. When I talk to corporate executives, they often claim they wish they could provide their employees with “equity” tied directly to the long-term success of their current project. For an internal startup, this is clearly logical. And yet, they claim, the mysterious forces of “finance” would never allow it. But when I speak to the leaders of finance functions around the world, they universally agree the mechanics of how to build this kind of “internal equity” are not especially complicated. What’s missing is the willingness of general managers to commit to specific milestones for valuing the project’s success. Working together in a cross-functional way shows a possible path forward: a stake in the outcome for internal startups designed by finance, backed by the conviction of senior leadership.