“Special Forces” Innovation: How DARPA Attacks Problems

Over the past 50 years, the Pentagon’s Defense Advanced Research Projects Agency (DARPA) has produced an unparalleled number of breakthroughs. Arguably, it has the longest-standing, most consistent track record of radical invention in history. Its innovations include the internet; RISC computing; global positioning satellites; stealth technology; unmanned aerial vehicles, or “drones”; and micro-electro-mechanical systems (MEMS), which are now used in everything from air bags to ink-jet printers to video games like the Wii. Though the U.S. military was the original customer for DARPA’s applications, the agency’s advances have played a central role in creating a host of multibillion-dollar industries.

What makes DARPA’s long list of accomplishments even more impressive is the agency’s swiftness, relatively tiny organization, and comparatively modest budget. Its programs last, on average, only three to five years. About 100 temporary technical program managers and a vibrant mix of contract “performers”—individuals or teams drawn from universities, companies of all sizes, labs, government partners, and nonprofits—do the project work. The support staff comprises only 120 people in finance, contracting, HR, security, and legal. The annual budget for the roughly 200 programs that are under way at any given time is about $3 billion. With its unconventional approach, speed, and effectiveness, DARPA has created a “special forces” model of innovation.
Not surprisingly, in recent decades there have been many attempts to apply the DARPA model in other organizations in the private and public sectors. All those efforts—or at least the ones with which we’re familiar—have had mixed results or failed. These disappointments have led people to conclude that the successes of this extraordinary agency simply can’t be replicated outside the Department of Defense.
We disagree. We led DARPA from mid-2009 until mid-2012. Since then, we have been implementing the agency’s model of innovation in a new organization—the Advanced Technology and Projects (ATAP) group at Motorola Mobility, which was acquired by Google in May 2012. We believe that the past efforts failed because the critical and mutually reinforcing elements of the DARPA model were not understood, and as a result, only some of them were adopted. Our purpose is to demonstrate that DARPA’s approach to breakthrough innovation is a viable and compelling alternative to the traditional models common in large, captive research organizations.
The DARPA model has three elements:
Ambitious goals. The agency’s projects are designed to harness science and engineering advances to solve real-world problems or create new opportunities. At Defense, GPS was an example of the former and stealth technology of the latter. The problems must be sufficiently challenging that they cannot be solved without pushing or catalyzing the science. The presence of an urgent need for an application creates focus and inspires greater genius.
Temporary project teams. DARPA brings together world-class experts from industry and academia to work on projects of relatively short duration. Team members are organized and led by fixed-term technical managers, who themselves are accomplished in their fields and possess exceptional leadership skills. These projects are not open-ended research programs. Their intensity, sharp focus, and finite time frame make them attractive to the highest-caliber talent, and the nature of the challenge inspires unusual levels of collaboration. In other words, the projects get great people to tackle great problems with other great people.
Independence. By charter, DARPA has autonomy in selecting and running projects. Such independence allows the organization to move fast and take bold risks and helps it persuade the best and brightest to join.
first appeared on hbr.org

How Being Both the Chief Executive and Chief Shareholder Doesn't Always Mix


How Being Both the Chief Executive and Chief Shareholder Doesn't Always Mix
Image credit: Indochino
Small business owners normally lead what are the most efficient and effective organizations ever designed by human hands: profit-seeking businesses where the chief executive also happens to be the chief (as in, largest) shareholder, too.
This has its benefits, chief among them that it avoids the agency problem, where the interests of the professional managers do not always synch and align with those of the shareholders.
In most circumstances, what is best for the managers of a small business is what is best for its shareholders, as they are normally one and the same.
But there are three scenarios where this is decidedly not the case:

1. When Contemplating Raising Outside Capital. 
For far too many small business owners, when they think about raising capital, they think too much about "control."
As in: "I don't want anyone looking over my shoulder." Or, more to the point, “I don't want anyone telling me what to do."
When I hear comments like this, the first thought I usually have is that it might be a very good thing to have someone looking over your shoulder and telling you what to do!

Why? Because usually the advice given is in the interest of the businesses’ shareholders, even if the largest shareholder – the CEO – doesn't realize it.
2. When Contemplating Selling the Business. 
More often than not, owners of businesses capable of attracting a buyer and being sold love what they do, and they especially love being the boss.
So the prospect of selling out and no longer being the boss can be emotionally difficult.
Now, from the perspective of the chief shareholder, the right response to this should be, “Who cares?”
With the risk of sounding harsh, this decision should be made solely on the strategic and financial merits -- lifestyle and heartstrings considerations be damned!
3. Contemplating Investing More of One’s Own Money in One’s Own Business.
As I have discussed before, when one is lucky enough to have capital to invest, the chief shareholder hat needs to be worn far more tightly than the chief executive one.
As the chief executive, it is just too easy to overlook portfolio diversification considerations, as it is not possible to “diversify” from the huge time and energy investments necessary to be an effective CEO of a growing company.
From this perspective, the right decision is to almost always to try to invest as much as one possibly can away from and outside of one's own business.
I know, this is extremely hard to do, as more often than not every instinct screams out to just pour more time, energy and treasure into it – to the exclusion of everything else.
That is the chief executive talking and is the kind of “irrational” commitment to success that is at the heart of what makes being a small business owner and an entrepreneur so intoxicating and admirable.
BUT when the three scenarios and opportunities above present themselves, take a pause and listen to Mr. and Mrs. Chief Shareholder, too.
If nothing else, your wallet will thank you. 


first appeard on: http://www.entrepreneur.com

9 Things That Separate Great Leaders from the Rest

The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant. —Max DePree

The greatest CEO’s and business leaders perform better, hire smarter to transform the world.

The very best CEO’s of our time who are changing the face of business and building strong brands have lots of things in common. They transform their worlds, change the people around them, create systems and build empires. They commit to something bigger than themselves but stick to the vision long enough to see it grow to become a global empire. Extraordinary leaders do more than good leaders to get to the very top.

Most of the best CEOs are known to be great at hiring smart.

Selling other people on your dream or your business is a crucial trait for building and growing a great business. You should be able to convince smart people  about your vision and why they should follow you and work with you to achieve that dream. In the words of General George Patton -Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.

The best leaders encourages and cultivates the culture of creativity

Building  a comfortable culture that gives everyone a sense of belonging and reason to come back to the same office for a number of years is an invaluable trait. Great CEOs focus on creating an environment that attracts and retains talent. The best leaders cultivates the culture of creativity and encourage it among  teams in the companies.
Great CEOs do not just hire smart individuals but built innovative teams that can work together and successfully deliver on internal projects, tasks or duties  and most importantly flourish in the  absence of the leader.

Great leaders are good at motivating others to accomplish a goal.

They know not only how to sell their idea and vision, but also how to charge people with energy and drive to pursue them. Great CEO’s do not achieve success alone, hence the need to get others on the journey to greatness. They are able to motivate their employees to greatness and to give their best. A great person attracts great people and knows how to hold them together. —Johann Wolfgang Von Goethe
The courage  to pursue an idea or dream regardless of conventional wisdom has taking lots of extraordinary leaders to higher heights.  Most great leaders face lots of opposition about what they intend to do, how they intend to do it and when those dreams need to be realized. A great leader’s courage to fulfill his vision comes from passion, not position. —John Maxwell
Perseverance and tenacity of purpose cannot be overemphasized.  Most great leaders including Steve Jobs- Apple,  Jeff Bezos- Amazon,  Howard Schultz- Starbucks, Larry Page-Google, Richard Branson-Virgin Group never gave up but kept pushing the envelope! They knew what they wanted, how to get it and with whom to do it for maximum achievement.
Great leaders build products that matters to millions not just in their locality but globally. Most outstanding and extraordinary brands consumers use today were started by people who had visions to change the way people live and what they use. The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet.”-Theodore M. Hesburgh
An indispensable trait is the ability to listen and take honest feedback from employees and customers. In as much as as you are the bearer of the torch, it’s important to keep an open mind and remain open to feedback on our ideas, products and your style of leadership.
If your actions inspire others to dream more, learn more, do more and become more, you are a leader. —John Quincy Adams
first appeared on altostartups.com