Shaun Collins
McKinsey commentary
Associate Partner
This is our fifth annual survey, and it has given us the chance to build a solid foundation of insights into what it takes for corporations to build new ventures—something that just wasn’t available before. Over time, those insights, backed by experience in working with clients, have provided us with a clear view of which factors really matter for corporate venture building to succeed.
What’s interesting to me is how one particular factor has consistently stood out over that time in its influence on the outcome: the relationship between the new venture and the “mother ship” (the corporation). Even with all the changes in technology (such as generative AI), the entrepreneurial activity of the new venture, and the best of intentions, organizational factors—the people, the processes, and the politics—are a huge barrier. Companies are generally aware of this, yet still this hurdle trips them up. But time and experience has also shown us what really matters in combatting this issue:
Providing clear governance and having the right people involved to navigate the thorny issues, such as access and decision rights—this is really about having solid connective tissue between the two bodies
Ensuring sufficient incentive for leaders in the corporation to make the new venture a success
Evaluating the degree of independence and functional alignment between the new venture and the mother ship on an ongoing basis, typically starting with greater independence
It’s rarely easy, but these practices make all the difference.
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