Title: InnoTac/ Innovation Tactics Tom Peters/InnoTac.0621.06
1InnoTac/Innovation TacticsTom
Peters/InnoTac.0621.06
2Premises I
3A 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)
4Forbes100 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
5I 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
6More than 1 RD spending, last 25 years?
7GM
8I 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
9Premises II
10What 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
11Try It
12 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)
13While 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
14We 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
15The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
16Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage
17Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
18We are in a brawl with no rules. Paul Allaire
19S.A.V.
20Screw Around Vigorously
21Screw It Up
22Fail faster. Succeed sooner.David Kelley/IDEO
23Fail. Forward. Fast. High-tech Exec/PA
24FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
25Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
26Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
27Sams Secret 1!
28Tom, 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
29Plan B
30"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
31The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
32Parallel Universe
33Build a School on top of a school (The Parallel
Universe Strategy)
34B.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!
35JKC
36 JKC/Smith1. Scour for
renegades wine dine.2. Go outside for
funds.
37Change? 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.
38Parallel Universe/Venture Fund
39Venture fund (E.g. Gerstner/Amex,
Dow/Marriott, Grove/Intel, Bedbury/Starbucks)
402/50Scott Bedbury/Starbucks/lt1/lt4 of 400/
grabbed best/all wanted to be there/2-50
41ShellGame 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
42We Are What We Eat
43 We become who we hang out with!
44Measure 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
45Requirement Discomfort
46Im not comfortable unless Im
uncomfortable.Jay Chiat
47Find em
48Some 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)
49Somewhere 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
50Sing Them
51Demos! Heroes! Stories!
52REAL 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
53Stories 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
54My mission is that of a molemy existence only
to be known by upheavals. Jan Morris, Fishers
Face, Or, Getting to Know the Admiral
55Org Structure
56Core 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)
57Band of Brothers ( Sisters!)
58Never doubt that a small group of committed
people can change the world. Indeed it is the
only thing that ever has. Margaret Mead
59Hard is soft.Soft is hard.
60First-level Scientific SuccessThe smartest guy
in the room winsOr
61First-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
62Hard is soft.Soft is hard.
63Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
644/40
654/40
66De-cent-ral-iz-a-tion!
67Ex-e-cu-tion!
68Ac-count-a-bil-ity!
69615A.M.
70Inno64 Innovation Strategies Tactics
71Parallel 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!!!
72CEO 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
73Remember 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
74Celebrations 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)
75CRO (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)