World Innovation Forum EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG Tom Peters/New York/0524.2006/ Inno.NEW.short.0524

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World Innovation ForumEVERYTHING YOU THOUGHT
YOU KNEW ABOUT INNOVATION IS WRONGTom
Peters/New York/0524.2006/Inno.NEW.short.0524
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World Innovation Forum Alt TitleYOU ONLY FIND
OIL IF YOU DRILL WELLS
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In Italy for 30 years under the Borgias they had
warfare, terror, murder, bloodshedand produced
Michelangelo, da Vinci and the Renaissance. In
Switzerland they had brotherly love, 500 years
of democracy and peace, and what did they
produceSource Orson Welles, as Harry Lime, in
The Third Man
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the cuckoo clock.
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Case PerceivedRommel invents
Blitzkrieg.Germans kick the crap 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.
(Write it up. Publish.)
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Case RealityGermans cross Meuse into France.
Whoops French intelligence completely drops the
ball. (Loses track of the Germansno
kidding.)Germans keep advancing outrun supply
lines no land-air co-ordination. Hitler orders
advance stopped.General Guderian never gets the
word. Guderian marches to Paris, virtually
unopposed.Germans as shocked as French at what
transpired.After the fact, Germans label it
Blitzkrieg.
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Case Lesson LearnedDo something.Get lucky.
Attribute luck to superior planning.Get
medals.P-E-A-S-E read Fooled By Randomness
The Hidden Role Of Chance In Life And Markets,
by Nassim Taleb
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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 youand theywill believe it. Great
news Keep saying it and you, too, can become a
guru.)
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Smashing Conventional Wisdom Blitzkrieg in fact
emerged in a rather haphazard way from the
experience of the French campaign, whose success
surprised the Germans as much as the French. Why
otherwise did the High Command try on various
occasions, with Hitlers backing, to slow the
panzers down? The victory in France came about
partly because the German High Command
temporarily lost control of the battle. The
decisive moment in this process was Guderians
decision to move immediately westward on 14 May,
the day after the Meuse crossing, wrenching the
whole of the rest of the army along behind
him. messed up traffic, little close air
support, random heroics by some small bits of
Guderians forces, Guderian not a disciple of
the WWI-derived strategy of indirect
approach Source Julian Jackson, The Fall of
France
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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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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
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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,
on chaos theory 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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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
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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Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the
same company six times and everybody makes money,
but Im not sure were actually innovating.
Our challenge is to take nanotechnology into the
future, to do personalized medicine Jeff
Immelt/2005
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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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But what if former head of strategic planning
at Royal Dutch Shell Arie De Geus is wrong in
suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is
fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a
business organization, an artist, an athlete or a
stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of
time, rather than to live forever. Kjell
Nordström and Jonas Ridderstråle, Funky Business
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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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Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
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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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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
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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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????????Work Hard gt Work Smart
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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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Five MYTHS About Changing BehaviorCrisis
is a powerful impetus for changeChange is
motivated by fearThe facts will set us
freeSmall, gradual changes are always easier
to make and sustainWe cant change because our
brains become hardwired early in lifeSource
Fast Company/05.2005
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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 Renee 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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EXCELLENCE. THE WORD.
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Excellence Index /Basket of 32 publicly
traded stocks
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EXCELLENCE. ALWAYS.
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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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Business The Ultimate Creative Endeavor.
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Business The Ultimate Personal
Development-Growth Experience.
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Business The Ultimate Transcendent Service
Opportunity.
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EXCELLENCE. BEDROCK.
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Brand Talent.
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Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
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Leaderships Mt Everest/Mt Excellencefree to
do his or her absolute best allow its
members to discover their greatness.
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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. LEADING.
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Leadership23
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Leadership231. Enthusiasm. Energy.
Exuberance.2. Action. Execution.3. Tempo.
Metabolism.4. Relentless.5. Master of Plan
B.6. Accountability.7. Meritocracy.8. Leaders
do people. Mentor. (Success creation
business.)9. Women. Diversity.10. Integrity.
Credibility. Humanity. Grace.11. Realism.12.
Cause. Adventures. Quests.13. Legacy.14. Best
story wins.15. On the edge. (Wildest chimera of
a moonstruck mind.) 16. Reward excellent
failures. Punish mediocre successes.17.
Different gt Better. (Only ones who do what we
do.)18. MBWA. Customer MBWA.19. Laughs.20.
Repot. Curiosity. Why?21. You Calendar. To
Dont. Two.22. Excellence. Always. 23.
Nelsonian! (Other admirals more afraid of
losing than anxious to win.)
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EXCELLENCE. TRANSCENDENCE.THRILLS.
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Insanely Great Language! Insanely
Great. Steve Jobs
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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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Gaspworthy!
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CGMChief Gasp Master
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CROChief Revenue Officer
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Inno.0524.06
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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 (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
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
84
Parallel universe/Exec Ed v res 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 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!!!
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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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Stay Hungry. Stay Foolish. Steve Jobs