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Spin-in. How to get your smartest employees to quit and generate shareholder value!

Spin-in. Where companies invest with employees who believe in their ideas and who quit with an equity and buyback deal. If anyone knows what Spin-in really means and executes well, its Cisco.  Remember what is possibly the greatest Spin-in which saved Apple and created one of the greatest possible disruptions, corporate change and wealth creation seen in the history of capitalism. The headline says it all.

Apple acquires Next, Jobs
In a stunning move, Apple Computer (AAPL) said tonight that it will purchase Next Software in a $400 million deal that will bring former Apple CEO Steve Jobs back to the company he cofounded.
http://news.cnet.com/Apple-acquires-Next,-Jobs/2100-1001_3-256914.html

There are tons of companies out there where disgruntled employees who believed in their ideas went out and did what they believed in. Here’s a random small sample below.

Climate Corporation

  • NEXT
  • Android
  • Twitter
  • Climate Corporation
  • Pinterest
  • FourSquare
  • Salesforce
  • LinkedIn
  • YouTube
  • Tesla
  • RealNetworks, et al.

The list is pretty big, disruptive and a great example of employees who often disrupted their previous employer!  These startups have gone on to create billions of dollars in value for consumers, investors and their founders.

Look at what founders and ex-employees did in the valley. Created a social network that works together that are brilliant and execute to disrupt.
PayPal Mafia” is a term used to indicate a group of former PayPal employees and founders who have since founded and developed additional technology companies such as Tesla MotorsLinkedInPalantir TechnologiesSpaceXYouTubeYelp Inc., and Yammer.
http://en.wikipedia.org/wiki/PayPal_Mafia

 

Why London lacks a PayPal Mafia of its own -PayPal spawned a whole ecosystem of entrepreneurs and investors, but that hasn’t happened in London
http://vator.tv/news/2013-11-04-here-is-why-london-lacks-a-paypal-mafia-of-its-own#AkoQky2QDHo7OWCj.99

Cisco Spins Tale of New “Spin-in” Products
http://blogs.wsj.com/digits/2013/11/06/cisco-spins-tale-of-new-spin-in-products/?mod=WSJBlog&mod=
Cisco SystemsCSCO +0.93% has once again turned to its unusual “spin-in” tradition to try to leapfrog network-equipment competitors, resulting in a deal that could be worth up to $863 million to a group of longtime Cisco engineers.

http://en.wikipedia.org/wiki/List_of_acquisitions_by_Cisco_Systems

10 Greatest Startups Founded by Ex-Apple Employees

http://www.quora.com/What-startups-have-been-started-by-former-PayPal-employees
http://www.quora.com/Microsoft/What-startups-have-been-formed-by-former-Microsoft-employees
Startups Started By Former Yahoo Employees [Graphic]
http://www.quora.com/Google/What-startups-have-been-founded-by-ex-Googlers-since-2004
http://www.businessweek.com/articles/2012-04-26/insieme-ciscos-latest-spin-in

Spin-in could be the greatest strategic leverage and Human Resources tool. Get your smartest people to quit and then go buy their companies back for millions or billions of dollars. This way you get to disrupt your own company, stay relevant, attract the best talent and continuously stay ahead of the curve.

Emerging Corporate Venturing Strategies: Spin-In, Spin-Out and Spin-Along
http://voices.yahoo.com/emerging-corporate-venturing-strategies-spin-spin-12050296.html

Spin-in, Spin-off or just Spin-along. This could be one of the best ROI for social. Keeping ex-employees as alumni and current employees all linked as social networks, each one trying to disrupt the other. The result. Win-Win for all. Isn’t it ironic that Android software was an ex Apple employee Andy Rubin. Andy went on to the found Android as a open-source mobile software company that was later acquired by Google. Now Android is the greatest competitor to Apple.  What if Steve Jobs bought Android?

The BIG QUESTION IS. Do boards, CEOs, CFOs, managers and HR chiefs see it this way. What is certain the smartest, creative, disruptive employees do. The rest stay back and watch their friends and colleagues come back or have tons of fun and get to change the world. Is anyone listening?

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