Smart CEOs are doing this with their corporate venture units — and watching them thrive as a result

Disruption is at an all-time high, but CEOs who engage their business with innovation ecosystems are thriving. The most successful corporate venture units share a common pattern: business unit leaders are involved in the venture process early, creating ownership that drives real adoption.

Key points in this article: Disruption is at an all-time high. But CEOs who engage their business with unique innovation ecosystems thrive. Corporate venture units are often created for this purpose. The CEOs who do a few key things find the most success with their CVC units. One is that they involve business unit leaders in the venture process early, and in a way that challenges the status quo of day-to-day operations. Another is that they incentivize business units (financially and in other ways) to help CVCs succeed. Certain corporate leaders are adapting (and thriving) in an age of disruption. They’re doing so by engaging a larger ecosystem of ventures and innovators . They involve their senior leadership teams, including business unit heads, early in the process. They challenge the status quo of day-to-day operations and go beyond the immediate quarterly aspects that their corporations live by. Traditionally, corporate venturing has been the mode by which they do this. CVC arms are often created as an offshoot of finance or as the strategic arm of the organization — positioned in the C-suite above the business units. Smart CEOs give their CVC units the proper mandate. Too often, CVC units are set up with a mandate to be financially oriented, rather than strategically focused. And to be properly strategically focused, business unit heads must be part of the conversation. They’re the ones who will strategize, implement, and integrate what the investments will do for the corporation — specifically as it relates to the product output. But getting business unit heads involved in early-stage ventures is not a simple task, as they’re primarily focused on pushing out products within the next 30, 60, 90, or 120 days. This is fundamental to their operation, but this focus can run counter to thinking big picture about a corporation’s future. Smart CEOs bridge the gap between their business unit leaders and CVC units. Here’s an all-too-common scenario: a business unit lead

By Fred Hoch at TechNexus Venture Collaborative