Protecting New Ventures from the Core Business

The rapid growth of successful new ventures has created a challenge for CEOs: protecting them from the core business. With AI-powered tools, companies can now build and scale new ventures at an unprecedented rate, reaching $10 million in revenue within 31 months on average, compared to 38 months previously.

However, this accelerated growth also brings its own set of problems. The systems that power the core business can get in the way of scaling, making it harder for successful ventures to thrive.

To mitigate this risk, CEOs need to be proactive and prepared to step in when necessary. This involves identifying scalable ideas, choosing where to play and how far to go, and making strategic bets on promising ventures.

Companies like Honeywell and Saudi Telecom Company Group have successfully leveraged the portfolio approach, launching multiple ventures simultaneously and achieving higher revenue growth as a result.