Wednesday, October 27, 2010

EPIC 2010 - Venture Selection: Hitting the Bull’s-eye Requires a T-E-A-M-S Approach

John B. Riggs, Vice President, Bell Labs, Head, Alcatel-Lucent Ventures

During his time at Alcatel-Lucent Ventures, John Riggs made sure that every investment decision made by the company always went through the criteria T-E-A-M-S. This is the reason why their ventures were so successful.

1. T= TEAM. The first principle is to focus on the people to determine if they have the tenacity and perseverance to achieve their goal.
2. E=Extractability. The venture must have little or no interdependencies with other company products.
3. A=Adjacency. Does the venture align with the company strengths and strategy.
4. M=Money. Does the venture have significant positive business impact
5. S=Secret Sauce. Does the venture have the potential to create competitive advantage through innovation?

This is the criteria that Bell Labs followed religiously behind every venture. What is the criteria your company follows before investing in a business venture?

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