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World Innovation Forum EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG Tom Peters/New York/0524.2006/ Inno.NEW.short.0524. World Innovation Forum: Alt Title YOU ONLY FIND OIL IF YOU DRILL WELLS. - PowerPoint PPT Presentation
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World Innovation Forum
EVERYTHING YOU THOUGHT YOU KNEW
ABOUT INNOVATION IS WRONG
Tom Peters/New York/0524.2006/Inno.NEW.short.0524
World Innovation Forum: Alt Title
YOU ONLY FIND OIL IF YOU
DRILL WELLS
“In Italy for 30 years under the Borgias they
had warfare, terror, murder, bloodshed—and produced Michelangelo,
da Vinci and the Renaissance. In
Switzerland they had brotherly love,
500 years of democracy and peace, and what did they
produce—Source: Orson Welles, as Harry Lime, in The Third Man
—the cuckoo clock.”
Case: Perceived
Rommel invents Blitzkrieg.Germans kick the crap out of
the French in two weeks.Q.E.D.
Case: Lesson Learned
Planned innovation (P.I., not C.I.) is possible, is cool, is
effective. (Write it up. Publish.)
Case: RealityGermans cross Meuse into France.
Whoops: French intelligence completely drops the ball. (Loses track of the Germans—no kidding.)
Germans keep advancing; outrun supply lines; no land-air co-ordination.
Hitler orders advance stopped.General Guderian never gets the word.
Guderian marches to Paris, virtually unopposed.
Germans as shocked as French at what transpired.
After the fact, Germans label it “Blitzkrieg.”
Case: Lesson Learned
Do something.Get lucky.
Attribute luck to superior planning.
Get medals.*
*P-E-A-S-E read Fooled By Randomness: The Hidden Role Of Chance In Life And Markets, by Nassim Taleb
TP “Lessons Learned”
Innovation = DisDis (Disciplined Disorganization)
Luck is a very good thing.* **
(*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and try a lot of weird stuff, the odds of getting lucky go up remarkably.) (**Career success depends on convincing others that you knew what the hell you were doing all along. Good news: Say it long enough and you—and “they”—will believe it. Great news:
Keep saying it and you, too, can become a “guru.”)
Smashing Conventional Wisdom
“Blitzkrieg in fact emerged in a rather haphazard way from the experience of the French campaign,
whose success surprised the Germans as much as the French. Why otherwise did the High Command try on various occasions, with Hitler’s backing, to slow the panzers down? The victory in France* came about
partly because the German High Command temporarily lost control of the battle. The decisive moment in this process was Guderian’s decision to move immediately westward on 14 May, the day
after the Meuse crossing, wrenching the whole of the rest of the army along behind him.”
*messed up traffic, little close air support, random heroics by some small bits of Guderian’s forces, Guderian not a disciple of
the WWI-derived “strategy of indirect approach”
Source: Julian Jackson, The Fall of France
Lessons: Containerization
Need-drivenA thousand “parents”
MessyEvolutionary
“Trivial”Experimentation
Trial & ERRORLoooong time for systemic adaptation/s
(many innovations) (bill of lading, standard time)
Not …
“Plan-driven”The product of “Strategic Thinking/Planning”
The product of “focus groups”
First-level Scientific Success
FanaticismPersistence-Dogged Tenacity
Patience (long haul/decades)-Impatience (in a hurry/”do it yesterday”)
PassionEnergy
Relentlessness (Grant-ian)
EnthusiasmDriven (nuts!)
(Brutal?) CompetitivenessEntrepreneurialPragmatic (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-DestinyFuturistic-In the Moment
Mono-dimensional (“Work-life balance”? Ha!)
Exceptionally IntelligentExceptionally Clever (methodological shortcuts/methodological genius)
Luck
PREVIEW.
“It is not the strongest of the
species that survives, nor the most intelligent, but the one most
responsive to change.” —Charles Darwin
“The most successful
people are those who
are good at plan B.”
—James Yorke, mathematician, on chaos theory in The New Scientist
“We are in a brawl with
no rules.” —Paul Allaire
S.A.V.
Sam’s Secret
#1!
“Reward excellent failures.
Punish mediocre
successes.”Phil Daniels, Sydney exec
What “We” Know “For Sure” About Innovation
Big mergers [by & large] don’t workScale is over-rated
Strategic planning is the last refuge of scoundrelsFocus 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’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 “cause & effect” memoirs of CEOs you should be institutionalized
“Herd behavior” (XYZ is “hot”) is ubiquitous … and amusing“Top teams” are “Dittoheads”
Statistically, CEOs have little effect on performance“Expert” prediction is rarely better than rolling the dice
Pathetic!
“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 myself?’ The
answer seems obvious: Buy a very large one and just wait.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“Not a single company that qualified as having made a sustained transformation ignited its leap with a big
acquisition or merger. Moreover, comparison companies—those that failed to
make a leap or, if they did, failed to sustain it—often tried to make themselves great with a
big acquisition or merger. They failed to grasp the simple truth that while you can buy
your way to growth, you cannot buy your way
to greatness.” —Jim Collins/Time/2004
“Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes
money, but I’m not sure we’re actually
innovating. … Our challenge is
to take nanotechnology into the future, to do
personalized medicine …” —Jeff Immelt/2005
“I don’t believe in
economies of scale. You don’t get better by being bigger. You get worse.” —
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%;
J.P. Morgan Chase, 0.9%)
Scale?
“Microsoft’s Struggle With
Scale” —Headline, FT, 09.2005
“Troubling Exits at Microsoft” —Cover Story, BW, 09.2005
“Too Big to Move Fast?” —Headline, BW, 09.2005
More than $$$$
#1 R&D spending,
last 25 years?
GM
“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a business organization, an
artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space
of time, rather than to live forever.” —Kjell Nordström and Jonas Ridderstråle, Funky Business
EXCELLENCE.
4/40.
4/40
De-cent-ral-iz-a-tion!
Ex-e-cu-
tion!
“Ninety percent of what we call
‘management’ consists of making
it difficult for people to get
things done.” – Peter Drucker
“Execution is the job of
the business leader.” —Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“Execution is a
systematic process of rigorously
discussing hows and whats, tenaciously following through, and
ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
“We have a ‘strategic plan.’ It’s
called doing things.” — Herb Kelleher
“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
“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
Ac-count-a-bil-ity!
“GE has set a standard of candor.
… There is no puffery. … There isn’t an ounce of
denial in the place.” —
Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)
6:15A.M.
????????
Work Hard > Work Smart
FLASH!
Innovation
is easy!
“The ‘surplus society’ has a surplus
of similar companies,
employing similar people,
with similar educational backgrounds, coming up with
similar ideas, producing
similar things, with
similar prices and
similar quality.” —Kjell Nordström and
Jonas Ridderstråle, Funky Business
We become who we hang
out with!
Measure “Strangeness”/Portfolio Quality
StaffConsultants
VendorsOut-sourcing Partners (#, Quality)
Innovation Alliance PartnersCustomers
Competitors (who we “benchmark” against)
Strategic Initiatives Product Portfolio (LineEx v. Leap)
IS/IT ProjectsHQ LocationLunch Mates
LanguageBoard
“The Bottleneck
Is at the Top of the
Bottle”“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry dogma:
At the top!”
— Gary Hamel/Harvard Business Review
“Beware of the tyranny of making
Small Changes to Small
Things. Rather,
make Big Changes
to Big Things.”
—Roger Enrico, former Chairman, PepsiCo
Five MYTHS About Changing Behavior
*Crisis is a powerful impetus for change*Change is motivated by fear*The facts will set us free
*Small, gradual changes are always easier to make and sustain*We can’t change because our brains become “hardwired” early in life
Source: Fast Company/05.2005
Line Extensions:
86 percent of new
products. 62 percent of revenues.
39 percent of profit.
Source: Blue Ocean Strategy, Chan Kim and Renee Mauborgne
Innovation Index: How many of your Top 5 Strategic
Initiatives/Key Projects score 8 or higher (out of 10) on a
“Weird”/ “Profound”/ “Wow”/“Game- changer”
Scale?
EXCELLENCE. THE WORD.
Synonyms
PurityTranscendence
VirtueEleganceMajesty
Antonyms
Mediocrity
ExIn*: 1982-2002/Forbes.com
DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050
*Excellence Index /Basket of 32 publicly traded stocks
EXCELLENCE.
ALWAYS.
“Why in the world did you go to Siberia?”
The Peters Principles: Enthusiasm.
Emotion. Excellence. Energy. Excitement. Service. Growth.
Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design.
Quality. Entrepreneurialism. Wow.
Business* ** (*at its best): An emotional, vital, innovative, joyful,
creative, entrepreneurial endeavor that elicits
maximum concerted human potential in the
wholehearted service of others.***
**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
Business: The Ultimate Creative
Endeavor.
Business: The Ultimate Personal
Development-Growth
Experience.
Business: The Ultimate
Transcendent Service
Opportunity.
EXCELLENCE.
BEDROCK.
Brand =
Talent.
Organizing Genius / Warren Bennis and Patricia Ward Biederman
“Groups become great only when everyone in them, leaders and
members alike, is free to do his or her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to discover their
greatness.”
Leadership’s Mt Everest/Mt Excellence
“free to do his or her absolute best” …
“allow its members to discover their
greatness.”
“The role of the Director is to create a
space where the actor or actress can become more than they’ve ever been before, more than
they’ve dreamed of being.” —Robert Altman, Oscar
acceptance
Our Mission
To develop and manage talent;
to apply that talent,throughout the world,
for the benefit of clients;to do so in partnership;
to do so with profit.
WPP
EXCELLENCE.
LEADING.
Leadership23
Leadership23
1. Enthusiasm. Energy. Exuberance.2. Action. Execution.3. Tempo. Metabolism.4. Relentless.5. Master of Plan B.6. Accountability.7. Meritocracy.8. Leaders “do” people. Mentor. (“Success creation business.”)9. Women. Diversity.10. Integrity. Credibility. Humanity. Grace.11. Realism.12. Cause. Adventures. Quests.13. Legacy.14. Best story wins.15. On the edge. (“Wildest chimera of a moonstruck mind.”)16. “Reward excellent failures. Punish mediocre successes.”17. Different > Better. (“Only ones who do what we do.”)18. MBWA. Customer MBWA.19. Laughs.20. Repot. Curiosity. Why?21. You = Calendar. “To Don’t.” Two.22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)
EXCELLENCE.
TRANSCENDENCE.THRILLS.
Insanely Great Language!
“Insanely Great.”
—Steve Jobs
Radically Thrilling Language!
“Radically Thrilling.”
—BMW Z4 (ad)
CTO**Chief Thrills Officer
Synonyms
PurityTranscendence
VirtueEleganceMajesty
Antonyms
Mediocrity
CTO**Chief Transcendence Officer
Gaspworthy!
CGM**Chief Gasp Master
CRO*
*Chief Revenue Officer
Inno.0524.06
What “We” Know “For Sure” About Innovation
Big mergers [by & large] don’t workScale is over-rated
Strategic planning is the last refuge of scoundrelsFocus 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’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 “cause & effect” memoirs of CEOs you should be institutionalized
“Herd behavior” (XYZ is “hot”) is ubiquitous … and amusing“Top teams” are “Dittoheads”
Statistically, CEOs have little effect on performance“Expert” prediction is rarely better than rolling the dice
Parallel universe/Exec Ed v res MBAEnd run regnant powers/JKCFind done deals-practicing mavericks/ Stone-ReGoBell curves/2016 in 2006Non-industry benchmarkingEverything = PortfolioV.C.s all!Hot language/Wow-Astonish me-Insanely great-immortal-Make something greatLead customers/PW-EmbraerLead suppliers /Top decile R&DWeird alliancesMottos/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”CalendarBig Delta easier than Small DeltaMBWA with freaks-weirdos/JKCMBWA/Boonies’ labsV.C.-formal/IntelAcquire weirdChildren’s crusadeOld farts crusadeWomen’s crusadeGo Global at any sizeStop listening to customers Talent!/Unusual sources-Hire innovators-V.C.sEschew giant mergers
Remember: scale economies max out earlyAssisted suicide! (“Built to last” = Chimera-snare-delusion)Burn your press clippings“Forgetting” “strategy”Fire all strategic plannersTempo!Final product bears little relation to starting notionDesign! Design! Design! (“culture,” not program)All innovation: Pissed-off peopleGut feel rules!Focus groups suckWeird focus groups okayBe-Do philosophy
CelebrationsCulture-little as well as big Inno (“everyone-an-innovator”)Life = Wow ProjectsAcknowledge messiness-pursue serendipity (Blitzkrieg-Containers-Science-Jim Utterback)R.F.A.Culture of execution4/40: decentralization, execution, accountability, 615AMEVP (S.O.U.B.)/Systems-process “un-design”Diversity for diversity’s sakeWomen-Women-Women/customers (they “are the market,” not a “segment”)-leadersBoomers-Geezers (“all the money”)
CRO (Chief Revenue Officer) “culture”/top-line obsessedCIO (Chief INNOVATION Officer)LaughterFacility-space configurationExperiments-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)
Stay Hungry.
Stay Foolish.
Steve Jobs