Startups and Beyond: Building Enduring Organizations

2 | STARTUPS AND BEYOND
PREFACE:
ENVISION
AND ACHIEVE
AN EXCITING
FUTURE
FOR YOUR
ENTERPRISE.
During my consulting career, I witnessed many corporate executives
struggle with questions such as: How do we achieve sustainable
growth? What are the best ways to develop entrepreneurial
leaders? How do we become an admired employer of choice? How
to innovate for new markets while retaining the existing ones? As
an entrepreneur, I was often confronted with similar challenges.
Later in my career, when I became a startup investor and mentor,
I was often asked: How to design products and services that will
delight customers? What are the best practices to launch successful
startups? How do we go from being a fledgling startup to a large
enterprise?. As I reflected on these conversations, I realized that
while each of these questions (and many others like them) was
asked with respect to a specific concern, they were all related to one
common organizational need to pursue lasting success. Essentially,
these questions can be combined into one: How do we build an
enduring organization that is profitable, innovative and resilient?
My responses to my colleagues’ questions, while based on available
information and my best judgment at the time, were perhaps
incomplete. Thus, began my quest to find a holistic and effective
approach for building enduring organizations. While specific
nomenclature varies from “excellent” to “great”, and from “lasting”
to “agile”, the principles associated with organizational endurance
are well-established: an exciting and shared vision, humanistic
values, customer focus and continuous innovation. Industry
stalwarts like IBM 1 and General Electric 2 , and new-age corporations
like Google 3 , Facebook 4 and Uber 5 have been working tirelessly
to systems and cultures that help build enduring organizations.
Additionally, thought leaders such as Jim Collins 6 , Stephen Covey 7
and Tom Peters 8 have researched extensively on the characteristics
of such organizations.
Most business leaders are keen to learn about building enduring
organizations; however, they are unsure of how to translate the
associated principles into meaningful everyday actions, especially
considering the global socio-economic turmoil. This is where

3
the book comes in. It is the outcome of my fascinating and
educational journey to discover the culture, processes and
leadership skills that enable enduring organizations. The book
elaborates on what sets enduring organizations apart from
others, and more importantly, it presents the readers with an
actionable framework, which I hope will move the discussions
away from the realm of the theory, and closer to real-world
implementation.
Unlike the prevalent literature that addresses either the startup
or the growth phase of an enterprise, this book covers both: it
delves deep into the discipline of launching successful startups,
while describing the methods of scaling up existing businesses.
The journey of building an enduring enterprise is long-term and
non-linear; consisting of a series of decisions, actions, learnings
and pivots. While the specific steps vary from one business
context to another there are five critical stages that each
organization must cross. These stages are presented as Five
Maturity Levels in the book through a unique framework called
the Maturity Model for Building Enduring Organizations © . This
framework is a global first in balancing the art, science and
practice of building viable and sustainable organizations. In the
upcoming chapters, view the unfolding of this framework as
it seamlessly stitches various disciplines together – to offer a
clear roadmap for building an enduring organization.
The book’s focus on startups is self-evident as they are
important catalysts of economic and social transformation.
Startups bring the promise of innovation to solve some of
the world’s most pressing problems in areas like education,
health, agriculture, ecology and transportation. Usually
aided by technology, startups offer agile and cost-effective
solutions with far-reaching impact. They create jobs and spur
healthy competition in the ecosystem. From Silicon Valley
to New York, and from Tel Aviv to Bangalore, global interest
in entrepreneurship 9 continues to grow. Venture capital
investments in startups grew by 61% from 2013 to 2014
globally 10 . In India alone, venture investments made in first
nine months of 2015 crossed the previous historical high of
$2 billion recorded in the whole of 2014 11 . For the first time in
India’s history, a separate government ministry 12 for promoting
entrepreneurship has been created. A plethora of academic
and private incubators and accelerators are acting as strong
catalysts in this entrepreneurial ecosystem.
Economic downturn and challenges in the availability of risk
capital in 2016-17 have only reinforced the fact that startups
need to work with game-changing vision and sound business
models for long-term sustenance 13 . With high startup mortality
rates 14 , it is clear that it takes painstaking effort and extreme
passion to take an idea to launch. Yet, many startups face
existential issues right after their launch as they scramble to
acquire and retain mainstream customers and to serve them
well. Additional challenges in the form of building the right
team and managing operations accrue as their identity evolves
from that of a startup to that of an operational organization.
Not many founders realize that launching a startup is only the
beginning and early funding only provides inceptive validation.
The real measure of success lies in how well the startup scales
to deliver consistently superior value. In an environment of
hyper-competition, market advantage built mostly on new
products is easily lost. Over-focus on valuations, without viable
business models, creates huge risks for startups. It is clear
that startups need to think beyond the “launch”; and work on
creating viable long-term businesses.
Given the power of startups, and the lessons learned from

4 | STARTUPS AND BEYOND
various startups that have excelled or failed, one would
expect a substantial body of knowledge on how to build
successful ventures. Unfortunately, there is a shortage of
codified knowledge and skills (particularly in our educational
institutions) that are essential to initiate and succeed as
startups. But from a few evangelists like Steve Blank 15 , Eric
Reis 16 , Bill Aulet 17 and Peter Thiel 18 , effective guidance is hard
to come by. Moreover, there is a sheer lack of processes
and practical tools (with the notable exception of Alexander
Osterwalder’s 19 and Ash Maurya’s 20 work) that startups can
leverage to make their journeys more effective and less riskprone.
Existing small-to-medium-sized enterprises have weathered
some of the early storms to find sustainable business models
and operations. Their challenges have thus shifted from the
existential to the aspirational. Many such enterprises (including
family-owned ones) desire to take their businesses to the next
level, but lack the management capacity and systems to scale.
Yet another category of enterprises consists of yesterday’s
startups, which are experiencing hyper-growth (usually fanned
by venture funding), and are gearing-up to be tomorrow’s
leading enterprises. For all such enterprises, an effective orbital
jump to the next level requires an intense focus on growth,
execution, empowerment and leadership development.
Unfortunately, many firms are ill-equipped to handle these
multi-dimensional challenges. To make matters worse, limited
practical advice is available to such firms on handling issues of
scalability, profitability and innovation.
On the other hand, large domestic and multi-national
corporations are often handicapped by their legacy and
size. Their work cultures are not nimble enough to change,
exposing them to competition from disruptive startups.
Due to organizational complacency, these corporations are
mostly content with making incremental changes or efficiency
improvements. They struggle to create sustainable engines of
breakthrough innovation and intrapreneurship. While thought
leaders like Jim Collins 21 , Ram Charan 22 , Stephen Covey 23 , Dave
Ulrich 24 , Bill Curtis 25 and Robert Kaplan 26 have contributed
significantly to make the journeys of such enterprises easier,
contemporary learnings are difficult to find. Once again, what
is missed most on the ground are not conceptual postulations,
but practical and actionable insights.
The book fills the current gaps in the theory and practice
of building enduring organizations - offering a broad canvas
of actions for organizations of all types. Yet, it cannot be
a panacea for all issues that enterprises or startups face.
Specific functional experts in various domains like Human
Resources, Finance, Marketing and Sales are needed to
interpret, expand and apply the practices of this book to each
organizational context. As you might already have observed,
this book is different from most books on entrepreneurship and
management in its style and substance. It is distinctly actionoriented
and visual, taking a cue from contemporary learning
theories and the infographics movement.
From sweeping economic changes to the new rules of global
competition; from life-altering trends in technology to the war
for talent , Chapter 1 describes the new reality in which all
organizations must learn to succeed and endure. In Chapter 2,
learn about enduring organizations that have an in-built ability
to innovate, adapt and convert challenges into opportunities.
Enduring organizations go beyond financial performance, and
consistently deliver great value to their customers, employees,
investors, partners and communities.
An enduring organization is not built overnight. Instead, it is

5
the fruits of a long-term and disciplined approach. The building
blocks of this approach require a smooth alignment between
strategy, execution and human capital management. In Chapter
3, examine how these building blocks help in shaping the future,
while delivering great results in the present. In Chapters 4 to
9, best practices, examples and case studies bring an enduring
organization to life. Use them for an effective implementation
of the framework. One Maturity Level at a time, these
chapters offer practical advice on critical strategic, cultural
and operational changes that organizations need to initiate
and sustain. Because varying organizational contexts call for a
customized usage of the book’s practices, in Chapter 10 and
Appendix A, various Use Cases are shared. For aspiring startup
founders, a special section in Appendix C has been added to
provide a granular roadmap towards a successful launch, and
beyond.
Startups and Beyond: Building Enduring Organizations is
for visionary startup founders and business leaders who
are keen to transform current business challenges into
perennial opportunities. If the journey of building an enduring
organization such as IBM, General Electric or Google sounds
alluring, then you must act now. As Karen Lamb said, “A year
from now, you may wish you had started today.”
I wish you success in your endeavours.
Ajay Batra
New Delhi
October 19, 2017
“Just Be”

TABLE
OF
CONTENTS
01. 02. 03.
INTRODUCTION
// defining enduring organizations, 14
// overview of maturity model for building
enduring organizations (MMEO), 18
// benefits for startups and others, 20
ENDURING ORGANIZATIONS
// VUCA is here to stay, 24
// the challenging VUCA environment, 26
// VUCA as an opportunity, 27
// about organizations, 29
// gains of building enduring organizations, 30
// key attributes of enduring organizations, 32
THE MATURITY FRAMEWORK
// need for MMEO, 35
// what is MMEO?, 38
// relationship with other CMMs®, 40
// architecture of MMEO, 41
// the five maturity levels, 42
// key process areas, 53
// structure of each KPA, 65
// three pillars of MMEO, 69
-----
Acknowledgments, 4
Preface, 6
Notes, 284
References, 287
Index, 289
Author Bio, 293

04.
LEVEL ONE
// personal leadership, 76
// opportunity analysis, 88
// viability analysis, 100
// solution development, 110
// launch management, 116
05. 06.
LEVEL TWO
// commitment planning, 126
// commitment monitoring, 138
// communication and engagement, 144
// mentoring, 154
// talent transitioning, 160
LEVEL THREE
// process foundation, 174
// organization capability improvement, 184
// performance management, 194
// learning and development, 202
07. 08.
09.
LEVEL FOUR
// integrated business management, 212
// collaborative solution development, 220
// career development, 228
LEVEL FIVE
// continuous business innovation, 240
// continuous organization learning, 250
ADAPT AND APPLY
// the CAPIL approach, 260
// assessment guidelines, 263
// assessment use cases, 264
10.
APPENDIX
// navigating the book, 271
// critical fits for a startup, 276
// startup field guide, 278

8 | STARTUPS AND BEYOND
Launch your idea as a
successful Startup?
WOULD YOU LIKE TO:
Transform a Startup
into a high-performing
enterprise?
Profitably scale-up an
existing business?
Cultivate an
organizational culture
of continuous learning
and innovation?

INTRODUCTION | 9
If you answered any of these
questions in the affirmative,
then this book holds promise
for you.
Entrepreneurs will discover a structured roadmap for
launching successful Startups and for building market
traction.
Founders and executives at bootstrapped, or venturebacked
enterprises, will find insights to achieve
profitable growth by evolving a culture of flawless
execution, team-work and customer-centricity.
Executives at large corporations will unearth
practices to make their organizations more agile and
innovative.
The purpose of this book is to help startup founders and business
executives succeed: founders at all stages of taking their idea to
fruition and executives at varying stages of leading and growing
their organizations. In a volatile business environment plagued with
hyper-competition, discover how select startups like AirBnB 1 and
Ola 2 scale and become dominating forces, while others languish
or fade into oblivion. Also, observe how some large enterprises,
like Google 3 and General Electric 4 , continue to innovate and grow,
while others, like Nokia 5 and Eastman Kodak 6 , stagnate or falter in
challenging times.
At the core of this book is the view that the long-term success of new
or existing enterprises is not governed by breakthrough products or
marketing brilliance alone. Contrary to what is frequently shared in
the popular media, high valuations and charismatic leaders are also
not sufficient. Wholesome success is achieved by implementing
a long-term and disciplined approach that promotes customercentricity,
financial prudence, continuous innovation and talent
engagement. This book is devoted to describing such an approach.
The following chapters systematically present the practices needed
to deliver exceptional results in the present, while growing and
preparing the organization for the future. Together, these chapters
illuminate the path for an organization to become an enduring one.

10 | STARTUPS AND BEYOND
A human enterprise that
consistently delivers
distinctive results and
practices self-renewal
to become a respected
institution in society.
def.i.ni.tion: Enduring Organization (n.)

INTRODUCTION | 11
There are many approaches to building an enduring organization. While some emphasize
strategy, others focus on execution. Some insist on understanding customers, others
on engaging the hearts and minds of the employees. Some believe in the Balanced
Scorecard 7 , others in innovation and Lean Startups 8 .
The practice of
building enduring
organizations is a
discipline that can
be learned and
mastered.
Our experience across a variety of industries and organization types has shown that
while each of these approaches brings useful lessons and perspectives, no one method is
singly sufficient. Unfortunately, in the absence of a clear roadmap, founders and leaders
often pursue multiple approaches—many running in parallel—for building organizational
capacity. These are usually perceived as “flavours of the month”, and are met with muted
enthusiasm by the organization’s stakeholders. Consequently, the organization gets
drowned in the din of a hodgepodge of initiatives while showing little or no improvement
in internal efficiency or market effectiveness.
This book nudges leaders away from the temptation of making ad hoc fixes, and
instead supports them in taking a systemic and long-term view of building innovative
enterprises. This is achieved through a unique framework called the Maturity Model
for Building Enduring Organizations © (MMEO). This maturity framework is a global
first in balancing the art, science and practice of building enduring organizations.
It offers a 5-level roadmap that seamlessly integrates practices related to Design
Thinking, Entrepreneurship, Operations and Human Capital Management - enabling an
organization to:
Develop an outside-in and customer-centric perspective
Plan and achieve profitable growth
Continuously innovate business models, products and services
Build a culture of empowerment and teamwork
Attract, develop and retain talent

12 | STARTUPS AND BEYOND
MATURITY MODEL FOR
BUILDING ENDURING
ORGANIZATIONS ©
5. INNOVATING
Focus:
Continuous innovation
4. SCALE
Focus:
Diversification and growth
3. DEFINE
Focus:
Systemic efficiency
2. MANAGE
Focus:
Disciplined execution
1. LAUNCH
Focus:
Successful launch of products/services

INTRODUCTION | 13
5. INNOVATING
Build a culture of continuous learning and innovation
Pro-actively seek product/service/process ideas from within and
outside the organization. Evaluate ideas, develop prototypes and
implement innovations. This Maturity Level takes the organization to an
enduring state of being agile and creative.
4. SCALE
Explore opportunities for business expansion and diversification
Pursue hyper growth with support from inter-disciplinary teams.
This Maturity Level enables the organization to explore new business
frontiers by leveraging qualitative and quantitative insights on
products, services, processes and customers.
3. DEFINE
Create systems to deliver great customer value consistently
Build the brand, improve business processes, identify key competencies
and enhance individual capabilities. This Maturity Level is critical for
developing a culture of high-performance and predictability.
2. MANAGE
Excel in customer acquisition and product/service quality
Increase market traction, manage resources, delight customers and
develop talent. This Maturity Level instills management discipline to
provide a stable and outcome-oriented base to the business
1. LAUNCH
Introduce innovative products and services in the market
Discover opportunities, validate customer needs, build a cohesive initial
team and evolve robust business models. A power-packed Maturity
Level for getting Startups off the ground, as well as for introducing new
products or services within an existing company.
Each Maturity Level introduces new
organizational activities while strengthening
those of the previous levels. An organization’s
journey across these levels entails effective
implementation of key practices, and their
disciplined assimilation in the organization’s
culture.

14 | STARTUPS AND BEYOND
STARTUPS
WIIFM * ?
ACHIEVE
Develop an entrepreneurial mind-set of action and
reflection | Evaluate business ideas from customers’
perspective | Build products or services that address
validated customer needs | Discover robust business
models for the venture | Build a cohesive and
dedicated initial team | Launch with limited resources
| Focus not just on starting-up, but on achieving
lasting success
* WHAT IS IN IT FOR ME?
AVOID
Having a solution-looking-for-a-problem approach |
The frustration of not understanding customer needs
well | The confusion of starting-up with many untested
assumptions about the product, customers or
partners | Friction between co-founders | The anxiety
associated with pursuing ideas with poor revenue and
growth potential | Either taking too long to launch or
launching in haste without adequate preparations |
Over-focusing on the product or service development,
at the cost of market development

INTRODUCTION | 15
EXISTING ENTERPRISES
ACHIEVE
Develop organizational systems to support growth and to
monitor progress | Focus on a few well-defined business
goals, and deliver well against them | Manage and grow
customer relationships | Develop and launch new products
or services | Find and induct the right talent and empower
them to execute flawlessly | Develop workforce that is
aligned to the organization’s mission and culture | Proactively
explore improvements and breakthrough innovations
INVESTORS
Determine investment risks and opportunities | Mentor each
portfolio company with a clear and unique roadmap | Develop
deeper insights into founding team’s motivation and capabilities
for building a long-term business | Evaluate venture’s readiness
to scale
AVOID
Pursuing growth that de-stabilizes or breaks the organization
| The confusion of pursuing conflicting priorities and/or too
many business goals | Getting lost in the daily grind, and
losing track of the strategic picture | Ad-hoc or ineffective
people hiring processes | The shock of being disrupted
by agile new businesses | The pain associated with high
employee attrition rates | The frustration of slow and/or
centralized decision making | Lack of visibility into financial
and non-financial progress
BUSINESS CONSULTANTS
Understand the factors that enable high-performance in
organizations | Advise clients on mindset and strategies needed
to build enduring organizations | Assess client organization’s
current maturity | Support client organizations in practice
implementation and cultural changes needed to move up the
maturity levels
EDUCATORS
Enhance existing curriculum on management and
entrepreneurship with MMEO’s practical offerings | Educate
students about the virtue of building long-term enduring
organizations | Mentor and guide student startups | Build
experiential learning opportunities

16 | STARTUPS AND BEYOND
VUCA
2007 2008 2009 2010 2011
iPhone launched.
Dow reaches an alltime
high of 14,164.
DaimlerChrysler
offloads Chrysler to a
private equity firm
The price of petroleum
hits $100 per barrel for
the first time in history.
Stock markets around
the world crash.
Lehman Brothers files
for bankruptcy
Gaza War ends. Sri
Lankan Civil War ends.
BRICS economic bloc
formed. Dow drops to
6,594
Financial crisis in
Greece and Ireland.
The largest oil spill in
US history occurs in the
Gulf of Mexico. Dow
Jones unexpectedly
plunges by 1000 points
5
Arab Spring reaches
Tunisia, Egypt, Libya,
Yemen and Bahrain.
Occupy movement
triggers worldwide
protests. LinkedIn,
Groupon and Pandora
go public. World
population reaches 7
billion

ENDURING ORGANIZATIONS | 17
IS HERE TO STAY. 1,2,3
7
8
2012 2013 2014 2015 2016
The Higgs boson is
discovered. Hurricane
Sandy hits North
America. Facebook
reaches 1 billion users
and goes for its IPO
Croatia becomes
a member of the
European Union.
Twitter goes public.
Bitcoin price surges
Landslide victory for
BJP-led NDA in India’s
Lok Sabha elections.
Microsoft buys Nokia.
Oil prices plunge.
Facebook closes $19
billion WhatsApp deal
Lithuania adopts the
Euro as its currency.
BRICS bank launched.
Dow reaches an alltime
high. Greece faces
bankruptcy. China’s
markets crash
Outbreak of the Zika
virus. North Korea
conducts nuclear tests.
India demonetizes highvalue
currency notes.
Microsoft buys LinkedIn.
UK votes to leave the
European Union. Donald
Trump wins the US
Presidential election