InnoTac/Act: Innovation Tactics/ A Bias for Action Tom Peters/InnoTac+Act.0622.06

1. InnoTac/Act:Innovation Tactics/A Bias for ActionTom Peters/InnoTac+Act.0622.06

2. PART ONE:INNOVATION 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.S&P 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 $$$$#1R&D 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] don’t workScale is over-ratedStrategic planning is the last refuge of scoundrelsFocus groups are counter-productive“Built to last” is a chimera (stupid)Success kills“Forgetting” is impossibleRe-imagine is a charming idea“Orderly 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 good“Facts” aren’tAll information making it to the top is filtered to the point of danger and hilarity“Success stories” are the illusions of egomaniacs (and “gurus”)If you believe the memoirs of CEOs you should be institutionalized“Herd behavior” (XYZ is “hot”) is ubiquitous … and amusing“Top teams” are “Dittoheads”CEOs have little effect on performance“Expert” 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 you’re finding it when you’re 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 didn’t 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, we’re 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 plan—for months.” —Bloomberg by Bloomberg

17. “The secret of fast progress is inefficiency, fast and furious and numerous failures.”—Kevin Kelly

18. Culture of Prototyping“Effective 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. “Rewardexcellent failures. Punishmediocre successes.”Phil Daniels, Sydney exec

28. Read This!Richard Farson & Ralph Keyes:Whoever Makes the Most Mistakes Wins: The Paradox of Innovation

29. Sam’s Secret #1!

30. “Tom, very simple. Sam was not afraid to fail.”—David Glass to TP, on the occasion of Sam’s 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 it—eg, 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!“We’re 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. 2/50**Scott Bedbury/Starbucks/<1%/<4 of 400/ grabbed best/all wanted to be there/2%-50%

43. Shell“Game Changer”10% 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. “I’m not comfortable unless I’m 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)