Lessons from Silicon Valley FREEDOM TO FAIL Encourage all levels of management to try new ideas with no penalty for failure--that's how the Valley stays on the cutting edge. CHAOS TOLERANCE Develop a culture that's built for change. The most successful companies have done about-faces and cannibalized their own products before rivals could eat into their markets. SKILLS FOR THE LONG HAUL Don't stick with an entrepreneur past his or her time. In the Valley, there are few founders still running their billion-dollar babies. When a company grows past $1 billion, get seasoned help. READY MONEY Compensation plans should reward success fast. Stock options may be the ticket for employees to work at Net speed. Watch out, though. They may retire young or use their bankroll to fund a startup. GENEROSITY BEGETS PROSPERITY Use the Internet to distribute your products free to millions. That gets them to market fast and builds a customer base. Great for feedback and brand recognition. BUYING INTO IDEAS Stay in the vanguard by investing in startups. Valley giants do this to stay plugged into what's cooking in new labs. Return to main story

Updated Aug. 7, 1997 by bwwebmaster
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