Why You Should Encourage Bad Ideas In Your Organization
As I was watching this I couldn’t stop thinking about a great video I saw a few years back by Ben Horowitz from a16z on how large companies can innovate, specifically he was explaining some of the challenges... why they have a hard time innovating. And he starts with a wonderful explanation of the business that Venture Capitalists are actually in. The model that he describes was something that one of the partners at a16z, Chris Dixon, came up with up, and it’s truly insightful!
Contrary to what most people think, VCs aren’t in the business of looking for Good ideas. They are in the business of looking for Good Ideas that seem like Bad Ideas. That is not to say that Good Ideas that look like Good Ideas aren’t great to pursue.... There are things like longer battery life in a cell phone, faster relational databases, etc. they’re great things, they’re just not breakthrough innovations, they aren’t things that create new product cycles... because good ideas are obvious, everyone is chasing them. So that is not what we want to be chasing.