1 The … Innovation 24 Innovation 24 Tom Peters/Joinville BRAZIL/19 June 2009

1 Innovation 24 Innovation 24 **XFX/Cross-functional excellence (physical, lunch, project structure, transparency, “emergent project structure, transparency, “emergent leadership,” “facebook,” etc) leadership,” “facebook,” etc) **Prototype mania (“action bias,” “serious play,” “most tries wins,” “execution is strategy”) tries wins,” “execution is strategy”) **Portfolio management (Score every project) **Celebrate failures (“most mistakes wins,” “Fail. Forward. Fast.”, mining pissed off customers) “Fail. Forward. Fast.”, mining pissed off customers) **Decentralization (“attitude,” budgetary control/30% to 80%, accountability, “spontaneous discovery to 80%, accountability, “spontaneous discovery process”) process”) **Centralization (once in a blue moon—“culture change”/HP-Fiorina; “Centers of Excellence”-GSK) change”/HP-Fiorina; “Centers of Excellence”-GSK) **Targeted-small acquisitions (need a strong retention process) process) **Alternate structures (“Skunkworks,” 1% “play money,” “parallel universe,” internal “venture funds,” money,” “parallel universe,” internal “venture funds,” partnership with lead vendors-customers, partnership with lead vendors-customers, “adhocracy” in general) “adhocracy” in general)

1 Innovation 24 Innovation 24 **Weed the portfolio (Wave “bye-bye” to old friends, mastering “organizational forgetting”) mastering “organizational forgetting”) **Acknowledge-revel in the mess (logic behind “try it” culture, champion inefficiency) culture, champion inefficiency) **Fight for simplicity, war on complexity (Drucker: “90% of what we call ‘management, consists …”) of what we call ‘management, consists …”) **“We are what we eat”/ “hang out factor” (lead customers, vendors, board, consultants, diversity customers, vendors, board, consultants, diversity per se, mentor “freaks,” “crowdsourcing”—carefully per se, mentor “freaks,” “crowdsourcing”—carefully managed!) managed!) **R&D equal all functions (e.g. systems innovation = new product innovation) product innovation) **100% innovators (“What do you think?”, “culture” of respect, HR’s lead role) respect, HR’s lead role) **Practice “nudgery” (bigger cart, +50% purchases) **“Gandhi’s rule” (“You must be the change you wish to see in the world,” “timid begets timid”) see in the world,” “timid begets timid”)

1 Innovation 24 Innovation 24 **Diverse “team at the top”! **“Enthusiasm ‘machine’” (“I am a dispenser of enthusiasm,” extreme language-“insanely great”) enthusiasm,” extreme language-“insanely great”) **Passion for “cool” (“design mindfulness”) **MBWA (Managing By Wandering Around—in touch with the “coal face”) the “coal face”) **Women (“the market,” not a “market segment;” micro-lending/Yunus-Cemex) micro-lending/Yunus-Cemex) **“Boring” as well as/more than “sexy” (Jim’s Group, Basement Systems Inc) Basement Systems Inc) **Big stinks/SMEs rule (Mittelstand, Foster’s stats: 0 for 1,000) 0 for 1,000) **Infrastructure (eg, research universities, venture capital, national initiatives such as Korea and design, capital, national initiatives such as Korea and design, primary education) primary education)