Driven (nuts!) (Brutal?) Competitiveness. Entrepreneurial

1
InnoTac/ActInnovation Tactics/A Bias for
ActionTom Peters/InnoTacAct.0622.06
2
PART ONEINNOVATION TACTICS
3
Tom Peters on Innovation tactics
4
Premises I
5
A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
6
Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
7
I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
8
More than 1 RD spending, last 25 years?
9
GM
10
I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
11
Premises II
12
What We Know For Sure About InnovationBig
mergers by large dont workScale is
over-ratedStrategic planning is the last refuge
of scoundrelsFocus groups are counter-productive
Built to last is a chimera (stupid)Success
killsForgetting is impossibleRe-imagine is a
charming ideaOrderly innovation process is an
oxymoronic phrase ( Believed only by morons
with ox-like brains)Tipping points are easy to
identify long after they will do you any
goodFacts arentAll information making it to
the top is filtered to the point of danger and
hilaritySuccess stories are the illusions of
egomaniacs (and gurus)If you believe the
memoirs of CEOs you should be institutionalizedH
erd behavior (XYZ is hot) is ubiquitous and
amusingTop teams are DittoheadsCEOs have
little effect on performanceExpert prediction
is rarely better than rolling the dice
13
Try It
14
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter (80)
15
While many people big oil finds with big
companies, over the years about 80 percent of the
oil found in the United States has been brought
in by wildcatters such as Mr Findley, says Larry
Nation, spokesman for the American Association of
Petroleum Geologists. WSJ, Wildcat Producer
Sparks Oil Boom in Montana, 0405.2006
16
We made mistakes. Most of them were omissions we
didnt think of when we initially wrote the
software. We fixed them by doing it over and
over, again and again. We do the same today
While our competitors are still sucking their
thumbs trying to make the design perfect, were
already on prototype version No. 5. By the time
our rivals are ready with wires and screws, we
are on version No. 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by
Bloomberg
17
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
18
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

19
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
20
We are in a brawl with no rules. Paul Allaire
21
S.A.V.
22
Screw Around Vigorously
23
Screw It Up
24
Fail faster. Succeed sooner.David Kelley/IDEO
25
Fail. Forward. Fast. High-tech Exec/PA
26
FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
27
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
28
Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
29
Sams Secret 1!
30
Tom, very simple. Sam was not afraid to fail.
David Glass to TP, on the occasion of Sams
induction into The Sales Marketing Hall of Fame
31
Plan B
32
"I think it is very important for you to do two
things act on your temporary conviction as if it
was a real conviction and when you realize that
you are wrong, correct course very quickly.
Andy Grove
33
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
34
Parallel Universe
35
Build a School on top of a school (The Parallel
Universe Strategy)
36
B.School Innovation Strategies Exec
Ed/Continuing Ed (fewer restraints). Web (fewer
restraints). Parallel Universe approach
(JKC/Bob S)! Recruit weird (in places you can
get away with iteg, students, continuing ed
faculty lesser admin jobs)! Message LOOK
FOR/EXPLOIT THE WEAK (Unregulated) SPOTS!
37
JKC
38
Jill Ker Conway/Smith1. Scour for
renegades wine dine.2. Go outside for
funds.
39
Change? Ha! Try End Run! Build Your Own!
Period!Were never going to persuade the
conservatives to accept our view. We need to
build our own institutions. anon.
40
Parallel Universe/Venture Fund
41
Venture fund (E.g. Gerstner/Amex,
Dow/Marriott, Grove/Intel, Bedbury/Starbucks)
42
2/50Scott Bedbury/Starbucks/lt1/lt4 of 400/
grabbed best/all wanted to be there/2-50
43
ShellGame Changer10 of technical budget
set aside and used to fund promising but
nontraditional ideas through a staged funding
process similar to that used by venture
capitalists Source Financial Times/08.2003
44
We Are What We Eat
45
We become who we hang out with!
46
Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
47
Requirement Discomfort
48
Im not comfortable unless Im
uncomfortable.Jay Chiat
49
Find em
50
Some people look for things that went wrong and
try to fix them. I look for things that went
right, and try to build off them. Bob Stone (Mr
ReGo)
51
Somewhere in your organization, groups of people
are already doing things differently and better.
To create lasting change, find these areas of
positive deviance and fan the flames. Richard
Tanner Pascale Jerry Sternin, Your Companys
Secret Change Agents, HBR
52
Sing Them
53
Demos! Heroes! Stories!
54
REAL Org Change Demos Models (Model
Installations, ReGo Labs)/ Heroes (mostly
extant burned to reinvent govt)/ Stories
Storytellers (Props!)/ Chroniclers (Writers,
Videographers, Pamphleteers, Etc.)/ Cheerleaders
Recognition (PosgtgtNeg, Volume)/ New Language
(Hot/Emotional/WOW)/ Seekers (networking mania)/
Protectors/ Support Groups/ End RunsPull
Strategy (weird alliances, weird customers,
weird suppliers, weird alumnae-JKC)/ Field Real
People Focus (3 COs) (long way away)/ Speed
(O.O.D.A. Loopsact before the bad guys can
react)C.f., Bob Stone, Lessons from an Uncivil
Servant
55
Stories Paint me a picture Story
infrastructure Demos Quick prototypes
Experiments Heroes Renegades Skunkworks
Demo Funds V.C. G.M. Roster Portfolio
Stones Rules JKCs Rules
56
My mission is that of a molemy existence only
to be known by upheavals. Jan Morris, Fishers
Face, Or, Getting to Know the Admiral
57
Org Structure
58
Core MechanismGame-changing Solutions PSF
(Professional Service Firm model/The
Organizing Principle) Brand You(Distinct or
Extinct/The Talent) Wow! Projects
(Different vs Better/The Work)
59
Band of Brothers ( Sisters!)
60
Never doubt that a small group of committed
people can change the world. Indeed it is the
only thing that ever has. Margaret Mead
61
Hard is soft.Soft is hard.
62
First-level Scientific SuccessThe smartest guy
in the room winsOr
63
First-level Scientific SuccessFanaticismPersist
ence-Dogged TenacityPatience (long
haul/decades)-Impatience (in a hurry/do it
yesterday)PassionEnergyRelentlessness
(Grant-ian) EnthusiasmDriven (nuts!) (Brutal?)
CompetitivenessEntrepreneurialPragmatic
(R.F!A.)Scrounge (gets the logistics-infrastruc
ture bit)Master of Politics (internal-external)T
actical GeniusPursuit of (Oceanic)
Excellence!High EQ/Skillful in Attracting
Keeping Talent/MagneticProlific (ground up more
pig brains)EgocentricSense of
History-DestinyFuturistic-In the
MomentMono-dimensional (Work-life balance?
Ha!)Exceptionally IntelligentExceptionally
Clever (methodological shortcuts/methodological
genius)Luck
64
Hard is soft.Soft is hard.
65
Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
66
4/40
67
4/40
68
De-cent-ral-iz-a-tion!
69
Ex-e-cu-tion!
70
Ac-count-a-bil-ity!
71
615A.M.
72
Inno64 Innovation Strategies Tactics
73
Parallel universe /Exec Ed v res MBA End run
regnant powers/JKC Find done deals-practicing
mavericks/Stone-ReGo Bell curves2016 in
2006 Non-industry benchmarking Everything
Portfolio V.C.s all! Hot language/Wow-Astonish
me-Insanely great-immortal-Make something
great Lead customers/PW-Embraer Lead suppliers
/Top decile RD Weird alliances Mottos/Paul Arden
(Whatever You Think Think the Opposite) Hire
freaks/Enough weird people? Weird Boards!!!
74
CEO track record of Innovation (nobody starts at
45!) System/GE-Immelt Strategic thrust
overlay Calendar Big Delta easier than
Small MBWA with freaks-weirdos/JKC MBWA/Boonies
labs V.C.-formal/Intel Acquire weird Childrens
crusade Old farts crusade Go Global at any
size Stop listening to customers Talent!/Unusual
sources-Hire innovators-V.C.s Eschew giant mergers
75
Remember scale economies max out early Assisted
suicide! (Built to last Chimera-snare-delusion
) Burn your press clippings Forgetting
strategy Fire all strategic planners Tempo! Fina
l product bears little relation to starting
notion Design! Design! Design! (culture, not
program) All innovation Pissed-off people Gut
feel rules! Focus groups suck Weird focus groups
okay Be-Do philosophy
76
Celebrations Culture-little as well as big Inno
(everyone-an-innovator) Life Wow
Projects Acknowledge messiness-pursue serendipity
(Blitzkrieg-Containers-Science-Jim
Utterback) R.F.A. Culture of execution 4/40
decentralization, execution, accountability,
615AM EVP (S.O.U.B.)/Systems-process
un-design Diversity for diversitys
sake Women-Women-Women/customers (they are the
market, not a segment)-leaders Boomers-Geezers
(all the money)
77
CRO (Chief Revenue Officer) culture/top-line
obsessed CIO (Chief INNOVATION Officer) Laughter F
acility-space configuration Experiments-prototypes
Reward excellent failures. Punish mediocre
successes. Bizarrely high incentives (
penalties) We are what we eat/We are who we hang
out with (E.g. Staff-Consultants-Vendors-Out-sour
cing Partners/, Quality-Innovation Alliance
Partners-Customers-Competitors/who we benchmark
against -Strategic Initiatives -Product
Portfolio/LineEx v. Leap-IS/IT Projects-HQ
Location-Lunch Mates-Language-Board)
78
PART TWOA BIAS FOR ACTION
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TP/BW/circa 1982 on BigCo Sin 1 too much talk,
too little do
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TP circa 2006 on BigCo Sin 1 too much talk,
too little do
81
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
82
Tom Peters on A Bias for Action
83
CONTEXT
84
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
85
Pathetic!
86
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
87
Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
88
I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
89
A BIAS FOR ACTION
90
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
91
Never forget implementation boys. In our work
its what I call the missing 98 percent of the
client puzzle. Al McDonald/McKinsey
92
We have a strategic plan. Its called doing
things. Herb Kelleher
93
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter (80)
94
We made mistakes. Most of them were omissions we
didnt think of when we initially wrote the
software. We fixed them by doing it over and
over, again and again. We do the same today
While our competitors are still sucking their
thumbs trying to make the design perfect, were
already on prototype version No. 5. By the time
our rivals are ready with wires and screws, we
are on version No. 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by
Bloomberg
95
"I think it is very important for you to do two
things act on your temporary conviction as if it
was a real conviction and when you realize that
you are wrong, correct course very quickly.
Andy Grove
96
S.A.V.
97
Screw Around Vigorously
98
Sams Secret 1!
99
Fail faster. Succeed sooner.David Kelley/IDEO
100
Fail. Forward. Fast. High-tech Exec/PA
101
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
102
Boyd on TEMPO
103
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
104
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act./Col. John
Boyd
105
OODA Loop/Boyd CycleUnraveling the
competition Quick Transients/Quick Tempo
(NOT JUST SPEED!) Agility So quick it is
disconcerting adversary over-reacts or
under-reacts Winners used tactics that
caused the enemy to unravel before the fight
(NEVER HEAD TO HEAD)BOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
106
The stuff has got to be implicit. If it is
explicit, you cant do it fast enough. John
BoydBOYD The Fighter Pilot Who Changed the
Art of War (Robert Coram)
107
Tempo!70-10Boyd/O.O.D.A. Loops/Mike
Leach/Texas Tech
108
70-10/Nebraska/Unk QB 643 yards K.State/ Linemen
spread wide/All legals go out for pass/Defenders
confused tire (Boyd/Tempo is not
speed/Re-arrange the mind of the enemyT.E.
Lawrence)/ By changing the geometry of the game,
and pushing the limits of space and time on the
gridiron, Mike Leach is taking Texas Tech to some
far out places. Michael Lewis (NY Times
Magazine, 12.04.05, on Mike Leach/Texas Tech)
109
In war, delay is fatal. Napoleon The only
way to whip an army is to go out and fight it.
Grant demonstrating the tactic that would
become his hallmark the immediate move to seek
out the enemy and attack him John Mosier, on
Grant A good plan executed right now is far
preferable to a perfect plan executed next
week. Patton
110
Relentless!Churchill, Grant, Patton, Welch,
Bossidy, Nardelli (GE execs), UPS, FedEx,
Microsoft/Gates-Ballmer, Eisner, Weill, eBay,
Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong
111
This adolescent incident of getting from
point A to point B is notable not only because
it underlines Grants fearless horsemanship and
his determination, but also it is the first known
example of a very important peculiarity of his
character Grant had an extreme, almost phobic
dislike of turning back and retracing his steps.
If he set out for somewhere, he would get there
somehow, whatever the difficulties that lay in
his way. This idiosyncrasy would turn out to be
one the factors that made him such a formidable
general. Grant would always, always press
onturning back was not an option for him.
Michael Korda, Ulysses Grant
112
METABOLIC MANAGEMENT
113
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
114
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
115
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
116
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control or evolution
and learning? Do we think that progress requires
a central blueprint, or do we see it as a
decentralized, evolutionary process?? Do we see
mistakes as permanent disasters, or the
correctable byproducts of experimentation? Do we
crave predictability or relish surprise? These
two poles, stasis and dynamism, increasingly
define our political, intellectual and cultural
landscape. Virginia Postrel, The Future and
Its Enemies
117
If things seem under control, youre just not
going fast enough. Mario Andretti
118
Im not comfortable unless Im
uncomfortable.Jay Chiat
119
If it works, its obsolete. Marshall McLuhan
120
Bossidy on EXECUTION
121
I saw that leaders placed too much emphasis on
what some call high-level strategy, on
intellectualizing and philosophizing, and not
enough on implementation. People would agree on a
project or initiative, and then nothing would
come of it. Larry Bossidy Ram
Charan/Execution The Discipline of Getting
Things Done
122
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
123
Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
124
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
125
robust dialogue Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
126
GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
127
The person who is a little less conceptual but
is absolutely determined to succeed will usually
find the right people and get them together to
achieve objectives. Im not knocking education or
looking for dumb people. But if you have to
choose between someone with a staggering IQ and
an elite education whos gliding along, and
someone with a lower IQ but who is absolutely
determined to succeed, youll always do better
with the second person. Larry
Bossidy/Execution The Discipline of Getting
Things Done
128
Duct Tape Rules!Andrew Higgins, who built
landing craft in WWII, refused to hire graduates
of engineering schools. He believed that they
only teach you what you cant do in engineering
school. He started off with 20 employees, and by
the middle of the war had 30,000 working for him.
He turned out 20,000 landing craft. D.D.
Eisenhower told me, Andrew Higgins won the war
for us. He did it without engineers. Stephen
Ambrose/Fast Company
129
The Leaders Seven Essential
BehaviorsKnow your people and your
businessInsist on realismSet clear goals and
prioritiesFollow throughReward the
doersExpand peoples capabilitiesKnow
yourself Source Larry Bossidy Ram Charan,
Execution The Discipline of Getting Things Done
130
Action8/VPMR/Peters on BossidyExternal Focus
(Competitors/Customers)Realism/Truth-tellingVi
sion Projects (Must add up to Vision)
MilestonesCommitment/EnergyRapidReviewCons
equences (/-)
131
M P V
132
TACTIC 1
133
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

134
EXCELLENCE. 4/40.
135
4/40
136
De-cent-ral-iz-a-tion!
137
Ex-e-cu-tion!
138
Ac-count-a-bil-ity!
139
615A.M.
140
K.I.S.S.
141
450/8
142
I wanted GE to operate with the speed,
informality, and open communication of a corner
store. Corner stores often have strategy right.
With their limited resources, they have to rely
on laser-like focus on doing one thing very
well. Jack Welch/Fortune/04.05
143
Lees Rule Run It off a Blackberry!
144
The art of war does not require complicated
maneuvers the simplest are the best, and common
sense is fundamental. From which one might wonder
how it is generals make blunders it is because
they try to be clever. Napoleon on Simplicity,
from Napoleon on Project Management by Jerry
Manas.
145
BIAS
146
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
147
Importance of Success Factors by Various
Gurus/ Estimates
(Unreliable) by Tom Peters
Strategy Systems Passion/
Execution
Leadership
Porter
45 20 20
15Drucker 35 30 15
20Bennis 20 20
35 25Peters 15
20 30 35
148
MBWA
149
MBWA
150
25
151
Mark McCormack 5,000 miles for a 5 min. meeting!
152
The first and greatest imperative of command is
to be present in person. Those who impose risk
must be seen to share it. John Keegan, The
Mask of Command
153
LET US MARCH
154
A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope. JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed-upon
25,000.
155
1. Every morning, write a list of
the things that need to be done that
day.2. Do them. Source Hugh
MacLeod/tompeters.com/NPR
156
Do them!
157
In classical times when Cicero had finished
speaking, the people said, How well he spoke,
but when Demosthenes had finished speaking, they
said, Let us march. Adlai Stevenson
158
Let us march.
159
Nelsons secret Other admirals more
frightened of losing than anxious to win
160
A year from now you may wish You had
started today. Karen Lamb
161
You only find oil if you drill wells. T he
Hunters, by John Masters, Canadian O G
wildcatter
162
TP/Chile I dont know if it is possible. I
do know its necessary.