InnoTac/ Innovation Tactics Tom Peters/InnoTac.0621.06 Premises I “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only.
Download ReportTranscript InnoTac/ Innovation Tactics Tom Peters/InnoTac.0621.06 Premises I “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only.
InnoTac/ Innovation Tactics Tom Peters/InnoTac.0621.06 Premises I “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only the constant pursuit of innovation can ensure long-term success.” render them obsolete. —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) “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 “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics More than $$$$ #1 R&D spending, last 25 years? GM “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics Premises II 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 Try It “This is so simple it sounds stupid, but it is amazing you only find oil if you drill wells. how few oil people really understand that 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%) “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 “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 “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” Michael Schrage Think about It!? Innovation = Reaction to the Prototype Michael Schrage “We are in a brawl with no rules.” —Paul Allaire S.A.V. Screw Around Vigorously Screw It Up “Fail faster. Succeed sooner.” David Kelley/IDEO Fail. Forward. Fast. –High-tech Exec/PA “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Sam’s Secret #1! “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 Plan B "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 “The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist Parallel Universe Build a “School on top of a school” (The Parallel Universe Strategy) 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! JKC/Smith 1. Scour for renegades; wine & dine. 2. Go outside for funds. 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. Parallel Universe/ Venture Fund “Venture” fund (E.g. Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks) 2/50* *Scott Bedbury/Starbucks/<1%/<4 of 400/ grabbed best/all wanted to be there/2%-50% 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 We Are What We Eat We become who we hang out with! 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 Requirement: Discomfort “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat Find ’em “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) “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 Sing Them Demos! Heroes! Stories! 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 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 “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 Org Structure 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) Band of Brothers (& Sisters!) “Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead Hard is soft. Soft is hard. First-level Scientific Success The smartest guy in the room wins” Or … 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 Hard is soft. Soft is hard. “Most important, upped the energy level at he Motorola.” —Fortune on Ed Zander/08.05 4/40 De-central-iza-tion! Ex-ecu-tion! Ac-counta-bil-ity! 6:15A.M. Inno64: Innovation Strategies & Tactics 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 greatimmortal-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!!! 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 Remember: scale economies max out early Assisted suicide! (“Built to last” = Chimerasnare-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 Celebrations Culture-little as well as big Inno (“everyonean-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”) CRO (Chief Revenue Officer) “culture”/topline 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 PartnersCustomers-Competitors/who we “benchmark” against -Strategic Initiatives -Product Portfolio/LineEx v. LeapIS/IT Projects-HQ Location-Lunch Mates-LanguageBoard)