1. InnoTac/ Innovation Tactics Tom Peters/InnoTac.0621.06

2. Premises I

3. “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/ )

4. “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 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

5. “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

6. More than $$$$ #1 R&D spending, last 25 years?

7. GM

8. “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

9. Premises II

10. What “We” Know “For Sure” About Innovation Big mergers [by & large] don’t work Scale is over-rated Strategic planning is the last refuge of scoundrels Focus groups are counter-productive “Built to last” is a chimera (stupid) Success kills “Forgetting” is impossible Re-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’t All 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

11. Try 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 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%)

13. “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,”

14. act from day one; others plan how to plan—for months.”
“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 It gets back to planning versus acting: We
act from day one; others plan how to plan—for months.”
—Bloomberg by Bloomberg

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

16. Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” Michael Schrage

17. Think about It!? Innovation = Reaction to the Prototype Michael Schrage

18. “We are in a brawl with no rules.” —Paul Allaire

19. S.A.V.

20. Screw Around Vigorously

21. Screw It Up

22. “Fail faster. Succeed sooner.” David Kelley/IDEO

23. Fail. Forward. Fast. –High-tech Exec/PA

24. “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett

25. “Reward excellent failures. Punish mediocre successes
“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

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

27. Sam’s Secret #1!

28. “Tom, very simple. Sam was not afraid to fail
“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

29. Plan 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

31. “The most successful people are those who are good at plan B
“The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist

32. Parallel Universe

33. Build a “School on top of a school” (The Parallel Universe Strategy)

34. 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—e.g., students, continuing ed faculty lesser admin jobs)! Message: LOOK FOR/EXPLOIT THE “WEAK” (Unregulated) SPOTS!

35. JKC

36. JKC/Smith 1. Scour for renegades; wine & dine. 2. Go outside for funds.

37. Change. Ha. Try: End Run. Build Your Own. Period
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.

38. Parallel Universe/ Venture Fund

39. “Venture” fund (E.g. Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks)

40. 2/50* *Scott Bedbury/Starbucks/<1%/<4 of 400/ grabbed best/all wanted to be there/2%-50%

41. 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/

42. We Are What We Eat

43. We become who we hang out with!

44. Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing 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

45. Requirement: Discomfort

46. “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat

47. Find ’em

48. “Some people look for things that went wrong and try to fix them
“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)

49. “Somewhere 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 Company’s Secret Change Agents,” HBR

50. Sing Them

51. Demos! Heroes! Stories!

52. REAL Org Change: Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors/ Support Groups/ End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant

53. Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules

54. “My mission is that of a mole—my existence only to be known by upheavals.” —Jan Morris, Fisher’s Face, Or, Getting to Know the Admiral

55. Org Structure

56. Core Mechanism: “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle) + Brand You (“Distinct” or “Extinct”/The Talent) + Wow! Projects (“Different” vs “Better”/The Work)

57. Band of Brothers (& Sisters!)

58. “Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead

59. Hard is soft. Soft is hard.

60. First-level Scientific Success The smartest guy in the room wins” Or …

61. First-level Scientific Success Fanaticism Persistence-Dogged Tenacity Patience (long haul/decades)-Impatience (in a hurry/”do it yesterday”) Passion Energy Relentlessness (Grant-ian) Enthusiasm Driven (nuts!) (Brutal?) Competitiveness Entrepreneurial Pragmatic (R.F!A.) Scrounge (“gets” the logistics-infrastructure bit) Master of Politics (internal-external) Tactical Genius Pursuit of (Oceanic) Excellence! High EQ/Skillful in Attracting + Keeping Talent/Magnetic Prolific (“ground up more pig brains”) Egocentric Sense of History-Destiny Futuristic-In the Moment Mono-dimensional (“Work-life balance”? Ha!) Exceptionally Intelligent Exceptionally Clever (methodological shortcuts/methodological genius) Luck

62. Hard is soft. Soft is hard.

63. “Most important, he upped the energy level at Motorola
“Most important, he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05

64. 4/40

65. 4/40

66. De-cent-ral-iz- a-tion!

67. Ex-e- cu-tion!

68. Ac-count-a-bil-ity!

69. 6:15A.M.

70. Inno64: Innovation Strategies & Tactics

71. Parallel 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 R&D
Weird alliances
Mottos/Paul Arden (“Whatever You Think Think the Opposite”)
Hire freaks/Enough weird people?
Weird Boards!!!

72. CEO 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
Children’s crusade
Old farts crusade
Go Global at any size
Stop listening to customers
Talent!/Unusual sources-Hire innovators-V.C.s
Eschew giant mergers

73. 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!
Final 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

74. 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 diversity’s sake
Women-Women-Women/customers (they “are the market,” not a “segment”)-leaders
Boomers-Geezers (“all the money”)

75. CRO (Chief Revenue Officer) “culture”/top-line obsessed
CIO (Chief INNOVATION Officer)
Laughter
Facility-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-sourcing 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)