World Innovation Forum* (*Modesty is everything) EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG* (*Except, of course, what the other presenters have said/will say) Tom Peters/New York/0524.2006

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World Innovation Forum(Modesty is
everything)EVERYTHING YOU THOUGHT YOU KNEW
ABOUT INNOVATION IS WRONG(Except, of course,
what the other presenters have said/will
say)Tom Peters/New York/0524.2006
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World Innovation ForumYOU ONLY FIND OIL IF YOU
DRILL WELLSTom Peters/New York/0524.2006
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Case PerceivedRommel invents
Blitzkrieg.Germans kick the tar out of the
French in two weeks.Q.E.D.
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Case Lesson LearnedPlanned innovation (P.I.,
not C.I.) is possible, is cool, is effective.
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Case RealityGermans cross Meuse into France.
Whoops French intelligence completely drops the
ball. (Loses track of the Germansliterally.)Germ
ans keep advancing outrun supply lines no
land-air co-ordination. Hitler orders advance
stopped.General never gets the word. General
marches to Paris, virtually unopposed.Germans
shocked.After the fact, Germans label it
Blitzkrieg.
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Case Lesson LearnedDo something.Get lucky.
Attribute luck to superior planning.Get medals.
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TP Lessons LearnedInnovation DisDis
(Disciplined Disorganization)Luck is a very
good thing. (More lessons later E.g., If
you hire a bunch of disciplined weirdos and try
a lot of weird stuff, the odds of getting lucky
go up remarkably) (Career success depends on
convincing others that you knew what the hell you
were doing all along. Good news Say it long
enough and loud enough and you will believe it.
Great news Keep saying it and you, too, can
become a guru.)
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Lessons ContainerizationNeed-drivenA
thousand parentsMessyEvolutionaryTrivialEx
perimentationTrial ERRORLoooong time for
systemic adaptation/s(many innovations) (bill of
lading, standard time)Not Plan-drivenThe
product of Strategic Thinking/PlanningThe
product of focus groups
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Slides _at_tompeters.comAlso EVERYTHING.LONG
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PREVIEW.
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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The most successful people are those who are
good at plan B. James Yorke, mathematician,
chaos theory specialist, in The New Scientist
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We are in a brawl with no rules. Paul Allaire
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S.A.V.
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Axioms.
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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 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
cause effect memoirs of CEOs you should be
institutionalizedHerd behavior (XYZ is hot)
is ubiquitous and amusingTop teams are
DittoheadsStatistically, CEOs have little
effect on performanceExpert prediction is
rarely better than rolling the dice
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Pathetic!
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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
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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
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Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
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More than 1 RD spending, last 25 years?
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GM
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10,000,000,000,0002,000,000,000
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EXCELLENCE. 4/40.
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4/40
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De-cent-ral-iz-a-tion!
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Ex-e-cu-tion!
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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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
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We have a strategic plan. Its called doing
things. Herb Kelleher
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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
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Ac-count-a-bil-ity!
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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)
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615A.M.
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FLASH! Innovation is easy!
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The surplus society has a surplus of similar
companies, employing similar people, with
similar educational backgrounds, coming up with
similar ideas, producing similar things, with
similar prices and similar quality. Kjell
Nordström and Jonas Ridderstråle, Funky Business
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We become who we hang out with!
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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
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The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma At the top!
Gary Hamel/Harvard Business Review
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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Line Extensions 86 percent of new products. 62
percent of revenues. 39 percent of
profit.Source Blue Ocean Strategy, Chan Kim
and Renée Mauborgne
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weird/ Profound/
Wow/Game- changer Scale?
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OPPORTUNITY.
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Women are the majority market Fara
Warner/The Power of the Purse
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1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
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Cases!McDonalds (mom-centered to majority
consumer not via kids)Home Depot (Do it
everything! Herself)PG (more than house
cleaner) DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of the
Purse
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10. Womens Market Opportunity No. 1.
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10.6
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Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline,
Economist, April 15, Leader, page 14
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????????Weenie of the year, 2006
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????????6/44
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OPPORTUNITY.
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2000-2010 Stats18-44 -155 21(55-64
47 )
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
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BEDROCK.
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Brand Talent.
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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EXCELLENCE. TRANSCENDENCE.THRILLS.
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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Why in the world did you go to Siberia?
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The Peters Principles Enthusiasm. Emotion.
Excellence. Energy. Excitement. Service. Growth.
Creativity. Imagination. Vitality. Joy.
Surprise. Independence. Spirit. Community.
Limitless human potential. Diversity. Profit.
Innovation. Design. Quality. Entrepreneurialism.
Wow.
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Business (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum concerted human
potential in the wholehearted service of
others.Excellence. Always.Employees,
Customers, Suppliers, Communities, Owners,
Temporary partners
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Radically Thrilling Language! Radically
Thrilling. BMW Z4 (ad)
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CTOChief Thrills Officer
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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CTOChief Transcendence Officer
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CROChief Revenue Officer
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Inno.0524.06
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Parallel universe/Exec Ed v resident MBA End run
regnant powers/JKC Find done deals-practicing
mavericks/ Stone-ReGo Bell curves/2016 in
2006 Non-industry benchmarking Everything
Portfolio V.C.s all! Hot language/Wow-Astonish
me-Insanely great-immortal-Make something
great Crazy customers/PW-Embraer Crazy suppliers
/Top decile RD Weird alliances Mottos/Paul Arden
(Whatever You Think Think the Opposite) Hire
freaks/Enough weird people? Weird Boards!!!
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CEO track record of Innovation (nobody starts
at 45!) System/GE-Immelt Strategic thrust
overlay Calendar Big Delta easier than Small
Delta MBWA with freaks-weirdos/JKC MBWA/Boonies
labs V.C.-formal/Intel Acquire weird Childrens
crusade Old farts crusade Womens crusade Go
Global at any size Stop listening to customers
Talent!/Unusual sources-Hire innovators-V.C.s Esc
hew giant mergers
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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
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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)
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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)
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Drill more wells!