There is a great framework (developed by Clayton Christensen) on when to spin-off a new venture - or whether to integrate a new acquisition. The framework focuses on "RPV" - Resources, Processes, Values. If the new venture differs on the P and V axis from the old one, you need different people and different mindsets - that would suffer if staying within the old one. Hence, to spin-off Arc makes a lot of sense and should probably have been done much sooner.
I agree. Especially the last part (for me) where he mentions that his analysis of Arc XP’s potential wasn’t wrong, but maybe misguided. Media analysis is difficult work, and Simon does it really well.
There is a great framework (developed by Clayton Christensen) on when to spin-off a new venture - or whether to integrate a new acquisition. The framework focuses on "RPV" - Resources, Processes, Values. If the new venture differs on the P and V axis from the old one, you need different people and different mindsets - that would suffer if staying within the old one. Hence, to spin-off Arc makes a lot of sense and should probably have been done much sooner.
Great stuff as usual Simon! Lots to think about here. Thank you.
I agree. Especially the last part (for me) where he mentions that his analysis of Arc XP’s potential wasn’t wrong, but maybe misguided. Media analysis is difficult work, and Simon does it really well.