1) Start small and demand early success (be impatient for profit, but patient for growth). Launch new growth initiatives when the core business is still thriving and the company will be able to be patient for growth.
2) Keep dividing the company into smaller units that will be more patient for growth and happy with smaller markets. If a business unit gets to big and then tries to innovate, it will only chase big markets that can actually move the needle for the business unit. But emerging growth markets are almost always start very small. Vast majority of corporate innovation successes have come from smaller, autonomous business units. Avoid being a monolithic business.
3) Develop a regular cadence to launch new growth businesses so you don’t get too comfortable and forget to launch in the good times.
4) Demand new growth ventures start generating profit relatively quickly. Be impatient for innovative efforts to pay for themselves quickly. This forces the teams to develop all of the right instincts, such as the need to test assumptions and get feedback. The bonus is being profitable quickly allows it to continue on if core business starts floundering.
These policy imperatives will allow you to develop wave after wave of disruptive growth
