Marc Andreessen on Group Genius

Marc Andreesen, the Silicon Valley investor, has just published a free e-book containing his blog posts from 2007 to 2009. This excerpt from the book was just published in the Wall Street Journal–titled “retaining great people”. It’s really advice about how to build an innovative organization:

Don’t create a new group or organization within your company whose job is “innovation”. This takes various forms, but it happens reasonably often, and it’s hugely damaging. It sends the terrible message to the rest of the organization that you think they’re the B team. Instead, focus on boosting the innovation culture of the entire company.*

How do you get the whole company to innovate? I give the answer in my 2007 book, Group Genius:

Many companies say that they believe in empowering their employees through participation. But too often, participation is little more than a strategy to increase employee job satisfaction or to get their buy-in for senior management decisions. Real participatory companies are collaborative, improvisational, emerging from the bottom up. It’s a radical rethinking of the organization, and most companies aren’t willing to go there just yet. But as innovation becomes ever more important, there won’t be any other choice. (p. 155)

The reason you have to spread innovation throughout the organization is because innovation today isn’t linear. That’s why you can’t separate out the “idea stage” from the “execution stage”:

The skunk works model places all its hopes on one big flash of inspiration that must come from a select group of special people. In fact, successful innovative companies keep these small sparks coming from individuals throughout the organization, each spark inspiring the next one. (p. 159)

In Group Genius, I tell you the ten features of the most innovative organizations, grounded in this emergent, up bottom approach to innovation. That’s why Andreesen is right; not (only) because the skunk works approach damages morale, but because it never actually generates innovation.

*Andreeasen, The Pmarca Blog Archives.

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