Brady Brim-DeForest, CEO of Formula.Monks, leads agile product development and transformation for global enterprises. He is also the acclaimed author of “Smaller is Better,” advocating for small, empowered teams to drive innovation. In the first of a three-part interview, Brady explains why small teams are ideal for fostering innovation.
Our opening keynote speaker in Berlin is Brady Brim-DeForest, a distinguished entrepreneur, technologist, and the CEO of Formula.Monks. He is also the author of the acclaimed book ‘Smaller is Better: Using Small Autonomous Teams to Drive the Future of Enterprise,’ where he shares powerful insights on how lean, focused teams can solve complex challenges and spark lasting change in large organisations.
In this first instalment of a three-part interview, we began by asking Brady what inspired him to write Smaller is Better, a work that has been hailed as one of the most influential business titles of 2024.
He replies that after many years of consulting with large corporations, the realisation dawned that, “meaningful outcomes stem from cultural shifts and transforming the way work is done, not just from pursuit of quantifiable outcomes”.
He adds, “The book is my way of democratising the knowledge and strategies I’ve developed, and enable organisations everywhere to harness the power of small autonomous teams, making work more meaningful and efficient, and accelerating humanity’s evolution.”
We continued by asking Brady what were the key challenges that he observed within these large, siloed organisations?
He responds by saying that the disconnect between departments typically leads to inefficiencies, underscoring the need for teams to collaborate closely and have the necessary autonomy to make decisions quickly, “In my consulting work, I often encountered a strong tendency for information to be siloed. For example, an entertainment company struggling with its acquisition strategy illustrated this issue vividly. The siloed structure led to critical information being lost between departments, resulting in costly mistakes and inefficiencies. A catalogue acquisition turned into a multi-million dollar oversight because the technical requirements were not fully understood across departments.”
He adds, “This situation could have been avoided with a single change to their operating model: creating a cross-functional acquisition team. Such a team would have identified and addressed the issue early, demonstrating the power of cross-functional collaboration to overcome the dysfunction inherent in siloed organisations.”
The power of small
The question then turns to what Brady defines as a ‘small, empowered team’? He replies that in the context of his model it is between five and eight team members that are, “cross-functional, autonomous, and have everything they need to fully achieve their mission, from initial decisions to generating a return on investment.”
For instance, a team tasked with launching a software product would require roles like sales or marketing being embedded in the team in order to ensure the team could actually bring the product to market.
The bottom line, he says is the, “importance of tailoring the team’s composition to its mission, ensuring it’s equipped with diverse skills covering every aspect necessary for success, while maintaining an ideal size to foster efficient collaboration and communication.”
But where is the evidence that his theories hold up in practice? Brady replies that he knows of several companies that have successfully implemented the small teams approach with significant benefits, “AT&T, as one example, reduced their product-realisation life cycle from three years to less than three months, showcasing the speed of innovation.”
“Caterpillar removed over $1 billion of slack from their supply chains, demonstrating the efficiency gains possible. Large healthcare companies like Mission Health created best-in-class internal benefit plans based on tight loops of employee feedback, which they then successfully marketed to other organisations, underscoring the versatility and applicability of small teams across different sectors.”
He concludes, “The key outcomes from adopting small teams include increased productivity, decreased risk, reduced management overhead, enhanced collaboration, improved retention, and a boost in innovation.”
Resistance to change
We wrapped up by asking Brady that if his approach doesn’t require any special tools or additional headcounts, and if the only primary investment is the actual time spent transitioning to his model, what possibly could be the resistance to implementing it?
He replies that it is primarily due to the fear of change and, “The perceived risk of altering established workflows. Resistance can also stem from concerns about the loss of control, the disruption of hierarchical structures, and the uncertainty about the new model’s effectiveness.
Leaders might worry about the initial slowdown in productivity as teams adjust to the new model, fearing that it could reflect poorly on short-term performance metrics.
Brady says that it’s crucial to emphasise the importance of gradual, well-managed change and that highlighting successful case studies can help alleviate fears. He also says that, “Engaging sceptics in the planning and implementation process can also foster a sense of ownership and reduce resistance.”
“Ultimately, demonstrating the long-term gains in efficiency, innovation, and competitiveness can help win over doubters and pave the way for a successful transition.“
You can meet Brady as well as your peers tasked with monetising media at Revenue Europe summit in Berlin on Tuesday, 1st October. Just a few tickets remain – sign up here. See you there!
