In two recent posts I have speculated about what I see as distinct styles of execution in digital media – one based on velocity and the other on incumbency – drawing a contrast between the two in terms of the pace of, and focus on, innovation. In this way of seeing things, a velocity culture is one in which growth by rapid development is not only fostered but to a large extent defines an organization, whereas an incumbency culture emphasizes defense and the protection of territory. Implicit in this perspective, and the use of the word culture, is the idea that distinct ways of doing business are a matter of character, of enterprise “DNA”, rather than something which is turned on for a while and then off again.
Reflecting on these ideas further, I am coming around to an even more general perspective, also based on the velocity/incumbency contrast: In digital media, a sector perpetually in transition, the long term prospects of any investment – whether public or private, large or small, early-stage or evolved – can be assessed on the basis of management’s velocity. And velocity, in turn, is the product of an ingrained growth character, (lacking a better term).
By this I mean not only a constant push to evolve, to seek out, to increase, solidify, pursue, perfect, and in short, to always advance, but just as importantly, to remain nimble and prepared to change course immediately. The larger the enterprise, or the more any enterprise or entrepreneur is set in a particular incumbency, the more difficult it may be to behave in the fashion described. Should this be the case, the situation may (at least from a shareholder value perspective) call for an exit – financial, strategic, or otherwise – and a change of control. In the case of small enterprise, and especially startups, such options may not exist, and it becomes the responsibility of the entrepreneur to activate the exit from within, as it were, by finding ways to develop growth character and instill a velocity culture.
It’s always tough to judge and value potential in a landscape as dynamic as media. But if judgments must be made, then these must be in the context of dynamism. More than a product, let alone an idea, it is this growth character, as described, that becomes a key value driver. Ideas come and go, and are often improved by competitors. Products, especially in a quickly evolving field, are prone to obsolescence sooner than imagined. The thing that stays, and that which gives a platform of any size its lasting value, is consistency and rapid execution. Here are a couple of examples: click and click.
