Beyond the Lean Startup: Eric Ries on Why Good Companies Go Bad and How Great Ones Stay Great,

“I took it for granted that we were trying to make the world a better place. But I think in retrospect that was naïve. What kind of change? For whom? We kind of forgot to specify what the purpose of all this disruption was.” — Eric Ries

In 2011, Eric Ries published The Lean Startup, a book that reflected the optimistic zeitgeist about disruptive Silicon Valley companies. Fifteen years later, in Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great, Ries reflects today’s totally different zeitgeist about the value of companies inside and outside Silicon Valley.

Back in 2011, everybody loved tech. Ries, creator of the Lean Startup method and founder of the Long-Term Stock Exchange, admits he was naïve in his positive view of disruptive corporations. In Incorruptible, Ries argues that corporate corruption is structural, rather than a problem of bad actors. As organisations grow (ie: become more disruptive), the systems that govern them — ownership, incentives, charters, accountability — quietly reshape behaviour. Success itself becomes a form of financial gravity, diverting companies away from their original purpose.

Ries proposes that we design organisations to be incorruptible from the beginning. It’s the Patagonia model. When the outdoor clothing company almost went bankrupt in the 1990s, their bank agreed to restructure their loans if they would suspend their charitable donations for a couple of years. No deal, the CEO said. The bank blinked and Patagonia remained Patagonia. Now, Ries argues, every corporation should try to emulate Patagonia and become the incorruptible corporation. We must all join Eric Ries in getting beyond the lean startup.

Five Takeaways

•       Corporate Corruption Is Structural, Not Ethical: For decades, we’ve explained corporate failures as problems of bad actors, moral weakness, or isolated scandals. Ries’ argument: that story doesn’t match reality. Again and again, companies founded with strong ideals drift toward short-term thinking, extractive behaviour, and mission abandonment — often despite the best intentions of people inside them. The failure is structural. As organisations grow, the systems that govern them — ownership structures, incentives, charters — quietly reshape behaviour. Success becomes financial gravity, bending companies away from their purpose.

•       The Patagonia Model: Organisational Strength, Not Moral Righteousness: When Patagonia nearly went bankrupt in the 1990s due to outsourcing to poor-quality foreign factories, their lead lender agreed to restructure the loans on one condition: suspend charitable donations during the restructuring. Reasonable request — any other company would have said yes. Patagonia said no. The bank blinked. Ries’ reading: this is not moral righteousness. It is organisational strength. The ability to resist external pressure and stay true to a core principle. That is what makes a company not just good but great. Also: Black Wednesday, the day of their layoffs, is still referred to by name inside the company.

•       The Wrong Distinction: For-Profit vs Non-Profit: Ries argues that the distinction between for-profit and non-profit is fundamentally a tax code distinction that has come to define how we think about organisations in ways that are misleading and harmful. He proposes a reframe: if profit means the maximisation of human flourishing, then the Smithsonian is very for-profit and Philip Morris is very non-profit. This reframe changes what we should demand of governance, of accountability, of what organisations are for. It is simultane