NOTE: To appreciate this presentation, you need MicrosoftWord FONTS Showcard Gothic, Ravie, Chiller and Verdana Master* Excellence part one (of 3) introduction to excellence. Innovate. Or. die.
Bias for action. 25 May 2007 Tom Peters X25* EXCELLENC E. ALWAYS. MASTER/0525.2007/Part One *In Search of Excellence 1982-2007
Slides at tompeters.com All you need to know 2
You = Your calendar* *Calendars never lie The one thing you need to know about
sustained individual success: Discover what you dont like doing and stop doing
it. Marcus Buckingham, The One Thing You Need to Know 20minute rule Craig Johnson/30 yrs
>70 * a blinding flash of the obvious Manny Garcia
All you need to know except for Conrad Hilton, at a gala celebrating his life,
on the most important lesson youve learned in you long and distinguished career: remember to tuck the shower curtain inside
the bathtub This is it: All you need to know Thank you, Ann!!!
Thank you!!! FLOWER POWER Cause Space
(worthy of commitment) (room for/encouragement for initiative) Decency humane)
(respect, The Managers Book of Decencies: How Small /gestures Build Great Companies.
Steve Harrison, Adecco Leaders SERVE people. Period. Anon.
THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
Relationships (of all varieties) : Bonus
If God spoke to me by saying, Mark, youre down to your last three words: What would you want to say to your fellow humans that would make the most positive impact? It would be a close call between Love Wash Your Hands . Thy Neighbor and
Mark Pettus, M.D., The Savvy Patient The most important thing you can do to keep wash your hands. from getting sick is to
CDC/ National Center for Infectious Diseases Whats Really Propping Up the Economy: Healthcare has added 1.7 million jobs since 2001.
The rest of the private sector? None. Source: Title, cover story, BusinessWeek, 0925.2006 Bonus New Economy?! Sergey +
Larry > Harvard/370 Truly All you need to know 80,000,00 0*
Truly, truly All you need to know Forget China, India and the Internet: Economic Growth Is Driven
by Women. Headline, Economist, April 15, 2006, Leader, page 14 All you need to know
New Zealand 2007 Ho hum: 2+ weeks in New Zealand Pfizer Ford Gap Chrysler Yahoo
microsoft wal*mart ??? ??? The last word: There is no last word.
Wal*Mart Dell Intel Home Depot Microsoft We may not be interested in
chaos but chaos is interested in us. Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century It is not the strongest of the species that survives,
nor the most intelligent, but the one most responsive to change. Charles Darwin The Creative Age is wide
open game. a Richard Florida, The Rise of the Creative Class Better By Design: A National Strategy
NZ = Design Excellence Taiwan, Your Partner in InnoValue Poster/Bucharest/03.06
All you need to know 24 5 /42 (Years) Airports)
(New 1 Houston/ Month/15 Let China sleep, for when she awakes she will
shake the world. Source: Napoleon S & P 500, circa 2007: >50% of
revenue from outside the U.S., first time All you need to know 0/80 0
0/800: normal! F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats)
Intelligent people can always come up with intelligent reasons to do nothing. Scott Simon All you need
to know Game plan: The unvarnished Basics Excellence. Always. Soft is Hard. Hard is soft.
Innovate. Or die. Up, up, up the value added ladder./ New markets. Talent time! Brand you! Creative age! Leadership. Excellence! Always! Soft is hard. Hard is soft. (People, customers hard, #s soft)
25 (Blinding flash of the obvious) Wow! (Passion! Enthusiasm! Hot language! Insanely greatSteve Jobs) Wow EVERYWHERE (Jims Group, Basement Systems Inc) Innovate. Or die. Top line obsession!!! (CR (CRO/Chief Revenue Officer; Sales>Marketing; cost cutting = death spiralVH) Innovation = Mess (What makes God laugh? People making plans.) 1/100 (Big over-rated/Mega-mergers destroy value/Built to last chimera Built to last v Built to rock the world (TPs love affair with Netscape)
Last word = There is no last word! 0/800 (We are who we hang out with/Weird for weird times) Lead the customer! Whacky Wild WikiWorld! (Electronic planetary scrum.) Try stuff!!!!!!!!! (R.F.A., S.A.V.) (Ready. Fire. Aim. Screw Around Vigorously.) Fail. Forward. Fast. (Reward excellent failures. Punish mediocre successes.) Try MORE stuff!!! (You miss 100% of the shots you dont take.) Parallel Universe (Jill Ker Conway, Starbucks 1%, Intel V.C. fund, China!) 4/40 (4 learnings in 40 years: Decentralization, Execution, Accountability, 6:15AM)
Lord Nelson (Other admirals more afraid of losing ) Up, Up, Up the VA Ladder (Solutions/PSF, Experience; Dreamketing; Lovemark) Women rule! (Buy all ! Control all wealth! Better leaders!) $15,000,000,000,000/7 of 13 (Boomers. Geezers. Wealth. Half of life still to go) Brand You (Or else!) PSF!!! (All) Talent = Brand (Leaders do people, connoisseur of talent, Send em on bold Quests, HR rules!
195,000 (Healthcare: Quality-Safety/EMR/DSS, Prevention-Wellness, Public Health #1!) Teach to test = Evil! (The . Richard Florida) (The Creative Age is a widewide-open game game. Leadership/12Ps (Purpose. Passion. Potential. Presence. Personal. Pissed off. Playful. Persistence. People. Peculiar. Potent. Positive.) Do one thing every day that scares you. (Eleanor Roosevelt) Basics! (Decency. Flowers. Grace. Respect. Servant. Host. Etc.)
Honestly, All you need to know You do not merely want to be the best of the best. You want to be
considered the only ones who do what you do. Jerry Garcia All you
need to know Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical;
... expect more than others think is possible. Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) EXCELLE ALWAYS. Tom Peters X25*
EXCELLENC E. ALWAYS. *In Search of Excellence 1982-2007 *Context/5/42/500/900. *Weeks of Whoops! *Built to Flop: Pitiful
Performance! *Innovate. Or. die. *Value-added Ladder/ raw materials to lovemarks. *BEDROCK: MODEL PSF. *New Markets/ women. Boomers-geezers. * aside: Eternal Basics.
*Talent. BRAND YOU. Education. The Irreducible209 A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter, What, if anything, he asked,
do you believe for sure? Gary Hamel, Jim Collins, etc. Finally, hed had enough. I mumbled something, but his query started rumbling around in my mind. Three days later, wandering on a Sunday in London, the idea of the irreducibles occurred to meand I started jotting down notes on stuff I do indeed believe for sure. Before
209 items. Hence The I knew it, a few days later, the list had grown to Irreducible209 that follows. Tom Peters 1.
2. 3. 4. Hare 1, Tortoise 0. (Hare-y times.) Tempo. (O.O.D.A.) MBWA. Appreciation. (Motivator #1.) (Cant be faked. Good.)
5. Decency. 6. Hurry. 7. Time out. 8. One matters. 9. Big change. Short time. (Alt not work.) 10. Excellence. Always. 11. Passion. Energy. Hustle. Enthusiasm. Exuberance. (Move mountains. No alt.) 12. You must care.
13. Emotion. 14. Hard is soft. (Soft is hard.) EXCELLE ALWAYS. PART ONE. ONE EXCELL
ENCE?? Axiom: We have met the enemy and he is us. Axiom: The adaptive capabilities of big corporations taken as a whole is problematic [read: pathetic]. Antidote: The answer is 75%+
internal. To sustain/win, we must first and foremost and in perpetuity beat back the insidious forces of darknesssize and inertia and fear and timidity and 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 Buy a very large one and just wait. answer seems obvious: Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics S&P Stability Ratings* 1985 Low Risk 13% Average Risk
High Risk 73% *Likelihood of 2006 41% 24%
14% 35% stable long-term earnings growth Uncertainty is the only thing to be
sure of. Anthony Muh, head of investment in Asia, Citigroup Asset Management : 39 members of the Class of 17 were alive in 87; 18 in 87
F100; 18 F100 survivors significantly underperformed the market; Forbes100 from 1917 to 1987 2 GE
Kodak, just (2%), & outperformed the market from 1917 to 1987. S&P 500 from 1957 to 1997: in 97;
74 members of the Class of 57 were alive 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 Welcome to the Club of Shattered Dreams:
Of Koreas Top 100 companies in 1955, only 7 were still on the list in 2004. The 1997 crisis destroyed half of Koreas 30 largest conglomerates.
Source: KET Issue Report, Kim Jong Nyun (14.05.2005) GM25/5075: Built to last???? The problem is never how to get new, innovative thoughts into your
but how to get the old mind, Wanted* ** : Corporate Senility! *Desperately!
** The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock It is generally much easier to kill an
organizati on than change it substantially. C.E.O. to C.D.O.
(Practical) Implication? Implication Go for it! (Why not alternative is slow death, at best) Joe J. Jones
1942 2006 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET HIM! Hmmmmm Do one
thing every day that scares you. Eleanor Roosevelt BIAS. BUILT. TO.
LAST. NOT. Built to Last vs Built to Change/ Rock the World
TP#1*: Netscape ! RMcK: RN:
Maybe not enough fail. RMcK: RN: A lot of companies in the Valley fail.
What do you mean by that? Whenever you fail, it means youre trying new things. Source: Fast Company
SET THE AGENDA.* Great Companies * disturb the sleep of EXCELLENCE.
CIRCA 1982. Excellence1982: The Bedrock Eight Basics 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting
7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties The older I get the less boring the basics become!
ExIn*: 1982-2002/Forbes.com $85,000 EI: $10,000 yields $140,050 DJIA: $10,000 yields *Forbes/Excellence Index /Basket of 32 publicly traded stocks
Importance of Success Factors by Various Gurus/(Unreliable) Estimates by Tom Peters Strategy Systems People
Passion 20 20 10
Porter 50% Drucker 25% 35
25 15 Bennis 25%
20 30 25 Peters 15%
20 35 30 Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press
The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat. Approximately 640 Index entries: Customer/s
(service, retention, loyalty), worker/s), 4. People ( 0. Innovation (
employees, motivation, morale, product development, research & development, new products), 0. EXCELLENCE. CAUSES.
ADVERSARIES. Causes/1966-2006 Women/Market opportunity Women/Leaders (right for the times) Design/Design-as-soul Wow! (Hot language) Weird! Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1)
Brand You (or else) PSF = Bedrock (add value or bustevery group must demonstrate economic viability) PSF + Brand You + WOW Projects = New Biz Logic Sales/+R > -C (increasing revenue more important than cutting cost) HealthCare/Wellness-Safety-H5N1 Brand = Talent (best roster wins) New VA Ladder/Products-Services-SOLUTIONSEXPERIENCES-DREAMKETING (Dream Marketing)-LOVEMARK
Different > > Better Boomers & Geezers/marketing to new megasegment Adversaries B-schools (crappy at soft skills, implementation, leadership) Strategy-is-all By-the-numbers management Dis-passionate management Focus groups
Intuition discounted Leading as an intellectual task Leading without passion Cool language in Hot times Dilbert (accepting cubicle slavery) Bigness per se (severe scale limitationseven at Microsoft) White guys! (not really, but enough already) 18-44 emphasis in marketing (geezers > youth for foreseeable future) -Cost > +Revenue (cost cutting more important than organic revenue
growth) CI (continuous improvement in an age of discontinuous world) LESS THAN THE NO-HOLDS-BARRED PURSUIT OF EXCELLENCE good words. Bad words. words
Words that may NOT be used in my presence: Motivate In the end, management doesnt
change culture. Management invites the workforce itself to change the culture. Lou Gerstner
Words that may NOT be used in my presence: Marketing Sell Sell
Words that may NOT be used in my presence: Motivate Market MBA Plan (mostly) Worker Job Task Exceeds expectations HR Employee evaluation Man (mostly)
Shareholder Value Words that MAY be used in my presence: Invite (v. Motivate) Sell (v. Market) People (wed like to serve) (v. Market segment) Client (v. Customer) OJT/MFA (v. MBA) Act/ Execute (v. Plan) Talent (v. Worker)
Quest/Adventure-in-EXCELLENCE (v. Job) Wow Project (v. Task) Rockin (profit-makin) PSF (v. Department) Theater (v. Office) Breathtaking Experience (v. Transaction that Exceeds expectations) Talent Fanatics Inc (v. HR) Brand You adventure (v Career development) Annual Report development session (v. Employee evaluation) Woman (v. Man) Words that MAY be used in my
presence: Wow! (v. Nice) Bloody- minded (v. Committed) Thank you! (v. ____) Attack/Innovate (v. defend/Entrench) Great stuff. Great people. Do it fanatics. (v. shareholder value) EXCELLENCE.
ALWAYS. (v. Good work) (v. shareholder value) Radically Thrilling Language! Radically Thrilling.
BMW Z4 (ad) Astonish me! (SD). Build something great! (HY).
Make it immortal! Insanely great (SJ) (DO) In-sane-
y-great You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.
Jerry Garcia EXCELLENCE . 1982. Hard is soft.
Soft is hard. Hard Is Soft Soft Is Hard Hard Is Soft (#s) Soft Is Hard (people) Hard Is Soft (Plans,
# s) Soft Is Hard (people, customers, values, relationships)) R.O.I. R. Measure #1:
R.O.I.R.* R.O.I.R. *Return On Investment In Relationships Axiom #65: (1) Its
always about relationships. (2) Sweat the small stuffand the big stuff will take care of itself. A man without a smiling face
must not open a shop. Chinese Proverb If I could have chosen not to tackle the IBM culture head-on, I probably wouldnt have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of
[Yet] I came to see in my time at IBM that culture isnt just one aspect of the gameit is the game. people is very, very hard. Lou Gerstner, Who Says Elephants Cant Dance
The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into beingan entity which is more than the sum of the fish plus the fisherman. The only way to count the spines of the sierra
unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailedprobably the least important reality concerning the fish or yourself,. It is good to know what you are doing . The man with this pickled fish has set down one truth and recorded in his experience many
lies. The fish is not that color, that texture, that dead, nor does he smell that way. John Steinbeck Soft Skills, Hard Dollars Source: Headline, BigBuilder, September 2006 The 6Es
Exuberance! Energy! Empathy! Empowerment! Execution! Excellence! EXCELLENCE.
ASPIRATION. 2006. Why in the World did Synonyms Purity
Transcendence Virtue Elegance Majesty Antonyms Mediocrity 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! An emotional, vital, innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum concerted human potential in the wholehearted service of others. others *** **Excellence. Always. Enterprise* ** (*at its best):
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners The Ultimate Creative Endeavor. Business: The
Ultimate Personal DevelopmentGrowth Experience. Business: The Ultimate Transcendent
Service Opportunity. Business: BUSINESS IS ABOUT POWER. Joanne
Lipman, editor, on Portfolio Make sure your executive team includes top talent in design, engineering and manufacturing, because thats
your only! to build! Cars! People! Want! to buy!. Hot styling sells them and quality priority
keeps them sold. Lee Iacocca, Where Have All the Leaders Gone? enterprises that Matter & change the game offer solutions & experiences that surprise , amaze, and transform perceptions of whats possible and
stick like super-glue in customers minds.* such offerings are brilliantly conceived and flawlessly delivered by unconventional, creative, hypercommitted, energetic talent from within & outside the organization. Tom Peters E.g.: Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jims Group, The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wanamakers (circa 1880)
To me business isnt about wearing suits or pleasing stockholders. Its about being true to yourself, your ideas and focusing on the essentials. Richard Branson
No leader sets out to be a leader per se, but rather to express him- or herself freely and fully. That is leaders have no interest in proving themselves, but an abiding interest in expressing
themselves. Warren Bennis, On Becoming a Leader EXCELLENCE. ASPIRATION. Every time we come to a comfort zone, we will find a way out. No Cloning.
Reinvent the brand with each new show. A typical day at the office for me begins by asking, What is impossible that I am going to do today? Daniel Lamarre, president,
Cirque du Soleil Do one thing every day that scares you. Eleanor Roosevelt Strive for
Excellence. Ignore success. Bill Young, PR driver (courtesy Andrew Sullivan)
all you need to know Cause Space (worthy of commitment)
(room for/encouragement for initiative) Decency humane) (respect,
Cause Space (worthy of commitment) (room for/encouragement for initiative-adventures)
Decency (respect, grace, integrity, humane) service (worthy of our clients &
extended familys continuing custom) excellence (period)
Cause Space (worthy of commitment) (room for/encouragement for initiative- adventures)
Decency service (respect, grace, integrity, humane) (worthy of our clients & extended familys continuing custom)
excellence servant leadership (period) Respect. Decency. Wee
Gestures. Its not people who arent credit-worthy. Its banks that arent people worthy. Muhammad Yunus Excellence
defined E.G.: An amazing performance A sunrise, a bloom, a smile Thank you (a gesture, an act of Grace) Extraordinary performance in an odd place (by an unlikely personEWR) (unlikely marketJims Group) X small (Small Giants) X med (Mittelstand) X large
Sets the agenda One at bat (Bobby Thompson, Kurt Gibson) A career (Roger Clemens) A novel, a short story, a sentence An Olympian (any) Loser with a great story (Rutgers, George Mason) Stuff (any sort) that makes you go wow / insanely great/gaspworthy (The lives of others)
EXCELLENCE. ASPIRATION. UNIVERSAL. Jims Group Jims Mowing Canada Jims Mowing UK
Jims Antennas Jims Bookkeeping Jims Building Maintenance Jims Carpet Cleaning Jims Car Cleaning Jims Computer Services Jims Dog Wash Jims Driving School Jims Fencing
Jims Floors Jims Painting Jims Paving Jims Pergolas [gazebos] Jims Pool Care Jims Pressure Cleaning Jims Roofing Jims Security Doors Jims Trees
Jims Window Cleaning Jims Windscreens Note: Download, free, Jim Penmans book: What Will They Franchise Next? The Story of Jims Group Jims Group: Jim Penman.* 1984: Jims Mowing. 2006: Jims Group. 2,600 franchisees (Australia, NZ, UK).
Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. People first. Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006 Basement
Systems Inc. *Basement Systems Inc. *Larry Janesky *Dry Basement Science (115,000!) *1993: $0; 2003: $12M; 2006:
$50,000,000+ EXCELLENCE. ASPIRATION. 14 MAY 2007. EUGENE OR. You do not merely want to
be the best of the best. You want to be considered the only ones who do what you do. Jerry
Garcia EXCELLENCE. REVENUE. MATTERS. MOST. TOP LINE TOM.
Our whole story is growing revenue. Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting) Analysts preferred cost cutting, cutting
as long as they could see two or three years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now revenue is in because so many got caught, and They said, Oh my gosh, you need revenues to grow earnings over
time. Well, Duh! earnings went to hell. Dick Kovacevich, Wells Fargo Piersons entire focus
was making airplanes. airplanes Forgeards focus was blurred by ambition. He wanted to move up and become co-chairman of EADS. Newsweek, 1023.06 Radio City Music Hall/2006:
Franchise Lost! TP: How many of you [3,000]
really crave crave a new
Chevy R C *Chief O*
Revenue Officer P=R C Everyone
lives by selling something. . Robert Louis Stevenson Sell Sell
If you want to gain competitive advantage fast, the best place to do it is in sales.
Larry Webb, John Laing Homes Make sure your top team includes top talent in design, engineering and manufacturing, because thats your only priority to build cars people want
to buy. Hot styling sells them and quality keeps them sold. Lee Iacocca, Where Have All the Leaders Gone? WE ARE ALL IN Fred Reichhelds The Ultimate Question : Customer satisfaction is
best measured* by one simple how likely are you to recommend ______ to a friend? question, * Net Promoter Score
Incidentally TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who
has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
GE : (more or less) The Sales122: 122 Ridiculously
Obvious Thoughts About Selling Stuff Tom Peters/0402.2006 Part two innovation EXCELLENCE. INNOVATE.
OR. DIE. To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.
W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times Characteristics of the Also rans* Minimize risk
Respect the chain of command Support the boss Make budget *Fortune, article on Most Admired Global Corporations EXCELLENCE. INNOVATION. THE REAL
STORY. Tom Peters/03.29.2007 The Perils of Conservatism/ Industry Leadership Good management was the most powerful reason [leading firms] failed to stay
atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital
to innovations that promised the best returns, they lost their positions of leadership. What We Know For Sure About Innovation Big mergers [by & large] dont 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 arent 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
The Mess Is The Message! Period! What makes God laugh? People
making plans! What makes tom laugh? Gurus (and once-famous CEOs) giving LLLs (logical linear lectures) on
systems* of innovation! *especially with lots of charts and graphs and Greek mathematical symbols and little tiny numbers 21C = 1c The Rise and Fall of
Strategic Planning Trip #1: Recently I asked several corporate executives what decisions they had made in the last year that would not have been made were it not for their
All had difficulty identifying one such decision. Since all of the plans are marked corporate plans. secret or confidential, I asked them how their competitors might benefit from possession of their Each answered with
embarrassment that their competitors would not benefit. Russell Ackoff (from Henry plans. Mintzberg, The Rise and Fall of Strategic Planning) The Mess Is the Message! Period!
An Economic Interpretation of the Constitution of the United States Charles Beard (1913) The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger Marc Levinson Tube: The Invention of Television David & Marshall Fisher Empires of Light: Edison, Tesla, Westinghouse,
and the Race to Electrify the World Jill Jonnes The Soul of a New Machine Tracy Kidder Rosalind Franklin: The Dark Lady of DNA Brenda Maddox The Blitzkrieg Myth John Mosier Containerization is a remarkable achievement. No one foresaw how the box would transform everything it touchedfrom ships and ports to
patterns of global trade. Containerization is a monument to the most powerful law in economics, that of unanticipated consequences. This history ought to be humbling to fans of modern management methods. Careful planning and thorough analysis, those business school basics, may have their place, but they provide little guidance in the face
of disruptive changes that alter an industrys very fundamentals. Marc Levinson, FT, 0425.06 (author of The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger) Lessons Need-driven A thousand parents
Messy Evolutionary Trivial Relentless Experimentation Trial & many, many eRRORs Real heroes seldom around when the battle is won Loooong 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 Discover, by accident, blue ocean [womens financial needs]! Ignore your
[Dean Witter] boss! Sell 750,000 copies of your latest book to Wells Fargo Home Mortgage! Source: the David Bach story, including
Smart Women Finish Rich, per IBD (01.08.07) What We Know For Sure About Innovation Big mergers [by & large] dont 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 arent 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 We are in a
brawl with no rules. Paul Allaire S.A.V First-level Scientific Success:
Beyond Brains 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
Utterback+ A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to
understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death. Jim Utterback, Mastering the Dynamics of Innovation
Apparently our society, not unlike the Greeks with their Delphic oracles, takes great comfort in believing that very talent seers removed from the hurlyburly world of reality can tell foretell coming events. Len Sayles/Columbia
The Perils of Conservatism/ Industry Leadership Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely
because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of
leadership. Hard Stuff/ Science: 20% Soft Stuff/ Politics: 80% Hard Stuff/Analysis &
planning: 25% Soft Stuff/people & Politics & Passion & execution: 75% Peters is the Michel Foucault of the management world: a scourge of the rationalist
tradition and a celebrant of the creative necessity of chaos and craziness. Financial Times, 09.23.2003, review of Reimagine! (You Should Be Bonkers in a Bonkers Time) Toms source code: The eight iconic books which are the
Wellsprings of my operating values and core assumptions 05.22.07 Fooled by Randomness: The Hidden Role of Chance in Life and the Markets, Nassim Nicholas Taleb The Black Swan: The Impact of the Highly Improbable , Nassim Nicholas Taleb
Expert Political Judgment: How Good Is It? How Can We know? Philip Tetlock The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies, Scott Page The Wisdom of Crowds, James Surowiecki
Full House: The Spread of Excellence from Plato to Darwin, Stephen Jay Gould Judgment Under Uncertainty: Heuristics and Biases , Daniel Kahneman, Paul Slovic, and Amos Tversky A Mind of Its Own: How Your Brain Distorts and Deceives, Cordelia Fine This
book is about luck disguised and perceived as non-luck (that is, skills) and more generally randomness disguised and perceived as non-randomness. It manifests itself in the shape of the lucky fool, defined as a person who benefited from a disproportionate share of luck but attributed his success to some other, generally precise reason. Fooled by Randomness: The Hidden Role of Chance in Life and the Markets, Nassim Nicholas Taleb The Black Swan: The Impact of the Highly Improbable, Improbable, Nassim Nicholas Taleb
A fox, the thinker who knows many little things, draws from an eclectic array of disciplines, and is better able to improvise in response to changing events, is more successful in predicting the future than the hedgehog, who knows one big thing, toils devotedly within one tradition, and imposes formulaic solutions on ill defined problems. Expert Political Judgment: How Good Is It? How Can We know? know? Philip Tetlock
The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies, Societies, Scott Page . Diverse groups of problem solversgroups of people with diverse tools consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. Diversity trumped ability. The Wisdom of Crowds,
Crowds, James Surowiecki Full House: The Spread of Excellence from Plato to Darwin, Darwin, Stephen Jay Gould Judgment Under Uncertainty: Heuristics and Biases, Biases, Daniel Kahneman, Paul Slovic, and Amos Tversky Your brain has some shifty habits that leave the truth distorted and disguised. Your brain is vainglorious. Its emotional and immoral. It deludes you. It is pigheaded, secretive and weak willed.
Oh, and its also a bigot. A Mind of Its Own: How Your Brain Distorts and Deceives, Deceives, Cordelia Fine The (Strange) Case of Peter Drucker & Michael Porter vs. The Non-linearists HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The
Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* (*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA,
MOST POLITICAL SCIENTISTS. SILICON Computers, Military History, Etc.) An Economic Interpretation of the Constitution of the United States Charles Beard (1913) The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger Marc Levinson
Tube: The Invention of Television David & Marshall Fisher Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World Jill Jonnes The Soul of a New Machine Tracy Kidder
Rosalind Franklin: The Dark Lady of DNA Brenda Maddox The Blitzkrieg Myth John Mosier Fooled by Randomness: The Hidden Role of Chance in Life
and the Markets Nassim Nicholas Taleb This book is about luck disguised and perceived as non-luck (that is, skills) and more generally randomness disguised and perceived as non-randomness. It manifests itself in the shape of the lucky fool, defined as a person who benefited from a disproportionate share of luck but attributed his success to some other,
generally precise reason. We underestimate the share of randomness in just about everything, a point that might not merit a bookexcept when it is the specialist who is the fool of all fools. Mild success can be explainable by skills and labor. Wild success is attributable to variance. Source: Fooled by Randomness: The Hidden Role of Chance in Life and the Markets Nassim Nicholas Taleb
[Eisenhower] chafed miserably as General MacArthurs aide in the Philippines, and in the end was promoted to lieutenant colonel only because General George C. Marshall remembered him, from years of inspecting dreary peacetime army bases, as the best
bridge player in the U.S. Army. Ulysses S. Grant, Michael Korda EXCELLENCE. INNOVATE. OR. DIE. More than $$$$
#1 R&D spending, last 25 years? G
BIG? ?? dont get better by being bigger. You
Scale? Microsofts 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 [Dells] predicament may be intractable. Dell
remained slavishly loyal to its core idea of ultra-efficient supply-chain management and direct sales to customers, even as rivals have stepped up their game. Instead of adapting, critics say, Dell cut costs in ways that compromised customer service and, possibly, product quality. BW, 0904 Theyre a one-trick pony. It was a great trick for over 10 years. tech exec/BW
Dells culture is not inspirational or aspirational. This is when they need to be imaginative, but [Dells] culture only wants to talk about execution. Geoffrey Moore There are some organizations where people think theyre a hero if they invent a new thing. Being a hero at Dell means saving money. Kevin Rollins, CEO
Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals. Financial Times, 0329, on possible Barclays-ABN Amro merger (When it comes to asking the stock market whether bigger banks are better, the current answer is
a resounding no. Citigroup analysis, 2006) The frugal times forced [BA] to focus on being profitable rather than big. TP/Duh:
Economist, 04.28.07 Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften 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 When asked to name just one big merger that had lived up to
expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee, Im sure there are success stories out there, but at this moment I draw a blank. Mark Sirower, The Synergy Trap
answered: 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 but Im not sure were actually innovating. Our challenge is
money, to take nanotechnology into the future, to do personalized medicine Jeff Immelt/2005 Schrempp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring assets and
building empires that just didnt work. Arndt Ellinghorst/ analyst/Dresdner Kleinwort Wasserstein Conglomerates dont work. James Surowiecki, The New Yorker Did one of em ever turn to
the other and say: Wow, I wonder what unimaginable new tools, otherwise not possible, will be brought forth for my daughter Alice, age 17, because
of this deal? Did one of em ever turn to the other and say: Wow I wonder what unimaginable new tools, otherwise not possible, will be
quickly brought forth for our customers because of this deal? These days, everybody wants to merge. Too often theyre just blindly gobbling up as many players as they can, in the false belief that bigger has to be better. It kind of makes
you wonder if merger-mania isnt really egomania. Or something even more destructive. If you look at it objectively, most mergers do not revitalize companies. Rather, they provide short-term gains for a relatively small group of people, usually Wall Street bankers and lawyers. Lee Iacocca, Where Have All the Leaders Gone? Spinoffs
systematically perform better than IPOs track record, profits freed from the confines of the parent more entrepreneurial, more nimble nimble Jerry Knight/ Washington Post/ 08.05 Market Share, Anyone?
240 industries: Marketshare leader is ROA leader 29% of the time Profit /ROA leaders: aggressively weed out customers who generate low returns Source: Donald V. Potter, Wall Street Journal
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.
Peter Job, former CEO, Reuters Theres A and then theres A. Winning the Merger Game Is
Possible --Lots of deals --Little deals --Friendly deals --Stay close to core competence --Strategy is easy to understand Source: The Mega-merger Mouse Trap/Wall Street
Journal/02.17.2004 / David Harding & Sam Rovit, Bain & Co./re ComcastDisney Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, skin in the game
*CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight *Worst case: Rape & Pillage Daimler. And Dumb. Both Start with
d. Marriage in heaven Daimler-Benz and Chrysler exchange vows, circa 1998 (Jrgen Schrempp)
the divorce on earth Daimler exec, Schrempp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring
assets and building empires that just didnt work. Arndt Ellinghorst, analyst, Dresdner Kleinwort Wasserstein His bets went sour one by one. WSJ on Jrgen Schrempps conglomeration (05.15.2007) Obviously, we overestimated the potential for synergies. Dieter Zetsche, CEO, Daimler
DaimlerChrysler/98-07: Duh, Duh, Duh, Duh and Duh Manifold Synergies/No Severe Scale limits/Yes Culture clashes/Yes Rushmorean ego issues/Yes Customer acceptance /
$36B/98 minus $675M/ InnoTacs We become
who we hang out with 1 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
Futuredefining customers may account for only 2% to 3% of your total, CUSTOMERS: but they represent a crucial window on the future.
Adrian Slywotzky, Mercer Consultants Portfol-io Think-ing Portfolios/Weirdness Index V.C. Micro-acquisitions Wee J.V.s
Butterflies Behavior Levers small wins Parallel Universe/s Skunkworks F.F.F.F. B.F.A. R.F.A. f.r.a.
R.F.F.F. F.F.F.R. f.f.f. Prototype Mania Portfolios/Weirdness Index V.C. Micro-acquisitions Wee J.V.s
Butterflies Behavior Levers small wins Parallel Universe/s Skunkworks F.F.F.F. [Find a Fellow Freak Far away] B.F.A. [bias for action] R.F.A. [ready. Fire. aim,.] f.r.a. [fire. Ready. Aim.]
R.F.F.F. [ready. Fire. Fire. Fire.] F.F.F.R. [fire. Fire. Fire. Ready.] f.f.f. [fail. Forward. Fast.] Prototype Mania The Hang Out Axiom: At its core, every (!!!) relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision about: Innovate, Yes or No Why Do I love Freaks?
(1) Because when Anything Interesting happens it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky
timessee immediately above.) (5) Freaks are the only (ONLY) ones who succeedas in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.) Get mad. Do
something about it. Now. Dreaming, necessary, or not? TP, personal: dream = concrete, practical imaginings about the opposite of things that
piss me off (TP advantages: low boiling point, long memory) Ive been thinking Michael Porter: Im mad as hell, and Im not
going to take it anymore TP: F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats)
Pissed Off* *Innovation is Initiated by Irritation. 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 Diverse groups of problem solvers groups of people with diverse tools consistently outperformed groups of the
best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. Diversity trumped ability.
Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity GSK: 7 CEDDs Centers of Excellence for Drug Discovery
Normal = o for 800 Semmelweis Lister ECS SBA Stokely MLKjr (TJP RHWjr)
fa C O* *Chief freaks acquisition Officer
Youre either going to be a millionaire or going to jail. Richard Bransons Headmaster* (* He did both.New Yorker) Innovations Saviors-in-Waiting Disgruntled Customers
Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees Keep Austin Weird
futuremark To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.
W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/2003 How do dominant companies lose their position? Two- thirds of the time,
they pick the wrong competitor to worry about. Don Listwin, CEO, Openwave Systems/WSJ Kodak . Fuji GM . Ford
Ford . GM IBM . Siemens, Fujitsu Sears . Kmart Xerox . Kodak, IBM futuremark To grow, companies need to break out of a
vicious cycle of competitive benchmarking and imitation. W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/2003
Dont benchmark, futuremark! Impetus: The future is already here; its just not evenly distributed William Gibson We become who we hang
out with 1A The Jay Team * *Allen Pucketts University of Weird Tp caves
: Thinkers/ Thinkers Tank not Strategic Planners (a little) We become who we hang
out with 2 To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.
W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times How do dominant companies lose their position? Two- thirds of the time, they pick the wrong competitor to worry
about. Don Listwin, CEO, Openwave Systems/WSJ Dont benchmark futuremark! Impetus: The future is already here; its just
not evenly distributed William Gibson We become who we hang out with 3 WhackyW ikiWorld Wow
Wikinomics: How Mass Collaboration Changes Everything Don Tapscott & Anthony Williams The Billion-man
Research Team: Companies offering work to online communities are reaping the benefits of crowdsourcing. Headline, FT, 0110.07 Wikinomics
WikiWorld Weapons of Mass collaboration CrowdSourcing smart mobs Linux Human genome project InnoCentive YouTube Second Life
Wikipedia Myspace Rob McEwen/CEO/ Goldcorp Inc./ Red Lake gold
Source: Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams A New C-Level? C Ww
O* *Chief WikiWorld Officer Theres a fundamental shift in power happening. Everywhere, people are getting together and, using the Internet,
disrupting whatever activities theyre involved in. Pierre Omidyar, founder, eBay Planners vs Searchers
Where planners * raise high expectations but take no responsibility for meeting them, searchers prefer to work case-by-case, using trial and error to tailor solutions to individual problems, fully aware that most remedies must be homegrown. WSJ, WSJ, 0822.06 (on malaria eradication,
and hedge fund manager Lance Laifer) [*Planners [WHO, World Bank, etc] see poverty as a technical engineering problem that their answers will solve. William Easterly] All sorts of approaches need to be tried and we need feedback. Roger Bate Find em!
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 Pascale & Jerry Sternin,
Your Companys Secret Change Agents, HBR 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) Stories Paint me a picture Story infrastructure Demos Quick prototypes Experiments Heroes Renegades Skunkworks
Demo Funds V.C. G.M. Roster Portfolio Stones Rules JKCs Rules Demos! Heroes! Stories!
The Sri Lanka Stratagem Forward, march: Never doubt that a small group of committed people can change the
world. Indeed it is the only thing that ever has. Margaret Mead futuremark To grow, companies need to break out of a
vicious cycle of competitive benchmarking and imitation. W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/2003
Portfolio Thinking G.M. V.C. M.B.S.A. (Brand Yous)
(Wow Projects!) (Demos. Heroes. Stories.) Find em! Innovation Tool/Source # 1: Pissed Off
Person/ People A fury that the future was always being hijacked by people with smaller ideas by his first partners who did not want What drove Trippe?
to expand airmail routes; by nations that protected flag carriers with subsidies; by the elitists who regarded flight, like luxury liners, as a privilege that could only be enjoyed by the few; by the cartel operators who rigged prices. The democratization he effected was as real as Henry Fords. Harold Evans on Juan Trippe, the PanAm boss who brought the B747 to life (WSJ/02.24.2005)
F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats) invite em!
In the end, management doesnt change culture. Management invites the workforce itself to change the culture.
Lou Gerstner send em on a quest! 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.
Leaderships Mt Everest/Mt Excellence free to do his or her absolute best allow its members to discover their greatness.
Where to look for Playmates: F.F.F.F. (Find a Fellow Freak Faraway) Playmate!* Playpen! Prototype! *Can be Client, supplier as well as Insider
Demos! Heroes! Stories! Women as innovation force!
Women are the majority market Women dont buy
They join them. brands. EVEolution 10.6
94% of loans to women* *Microlending; Banker to the poor; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner
Women: Principal Change Agents/ Health, family & Finance Concoct a Parallel
universe! Venture fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks SkunkWorks/ ParallelUniverse
the 1% solution Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC) SkunkWorks/
Skunks (!!!) [CEO A.G.] Lafley has shifted P&Gs focus on inventing all its own products to developing others inventions at least half the time. One successful example Mr. Clean Magic Eraser, based on a product found in an
Osaka market. Fortune, 12.18.06 Build a School on top of a school (The Parallel Universe Strategy) Parallel Universe China!!!!!!!
Strategic Thrust Overlay* Sysco Microsoft (Inet, Search) GE (6-Sigma, Workout, etc.) GSK (7 CEDDs) Apple (Mac) Hyundai (et al.) (Electronics, etc.) *Different from Skunkworks
Multipliers: Broken Windows Multipliers, science of/butterflies/Rat Psych 101: Broken Windows/safe city
Small plates/empty shelves/remote parking lot/ distant food court/slow elevator Geologists/geophysicists Contiguous offices/Office layout-location power casual gathering places renegade buildings Hang out factor/inno #1 hero galleries/great art welcoming reception area (Insta-smell culture)
b.P.d. decals on glasses/12.31.06 beyond escape: Bike at the door/ Running shoes next to the bed etc etc Speed/ Tempo/ is-it
FedEx Economy Economy the headline/New York Times Anything/
Anywhere/ Anytime Any3: Power Tools For Power Strategies
UPS used to be a trucking company with technology. Now its a technology company with trucks. Forbes 5% F500 have
CIO on Board: While some of the worlds most admired companies Tesco, Wal*Mart are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value. Source: Burson-Marsteller
Speed/ Tempo/ o.o.d.a. loops Messin with their minds: He who has the
quickest O.O.D.A. Loops* wins! Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity. Robert Coram, Boyd
Re-arrange the mind of the enemy T.E. Lawrence Float like a butterfly, sting like a bee Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Try it. Try it. Try it. ry it. Try it. Screw
up. Try it. Try it. Try . Try it. Try it. Try i ry it. Screw it up. i Try it. Try it. try it. do things. things
We have a strategic plan. Its called doing things. Herb Kelleher drill. This is so simple it sounds stupid, but it is
amazing how few oil people really you only find oil if you drill wells. understand that You may
think youre finding it when youre drawing maps and studying logs, but you have to drill. Source: The Hunters, by John Masters, Canadian O & G wildcatter try things. things
We made mistakes, of course. Most of them were omissions we didnt 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, were already on prototype version
#5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to
planning versus acting: We act from day one; others plan how to planfor months. Bloomberg by Bloomberg Experimen t fearlessly Source: BW0821.06, Type A Organization Strategies/ How to Hit a Moving Target
Tactic #1 We ground up more pig brains! SERIOUS PLAY
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
Source: Michael Schrage You cant be a serious innovator unless and until you are ready, willing and able to seriously play. Serious play is not an oxymoron; it is the essence of innovation.
Michael Schrage, Serious Play Learn not to be careful. Photographer Diane Arbus to her students (Careful = The sidelines, sidelines from Harriet Rubin in The Princessa)
The key to a great painting is the nerve, after weeks of effort, to bet the painting on the next brush stroke, Master musician,
San Francisco Screw. things. Up. FAIL, FAIL AGAIN. FAIL BETTER.
Samuel Beckett Fail . Forward. Fast. High Tech CEO, Pennsylvania Fail faster. Succeed
Sooner. David Kelley/IDEO Sams Secret #1! 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 try. Miss. try.
READY. FIRE! S.A. Paul Allaire: We are in a brawl with no rules. TP: Theres [literally] only
one possible answerScrew Around Vigorously! RAF RFA RFFFA RFFFA FFFFA RAAAAAAAAAAA
IID INID DSS* DSS** *If In Doubt Do Some S$%^ (stuff) **If Not In Doubt Do Some S%*&
No try. No deal. deal You miss 100%
of the shots you never take. Intelligent people can always come up with intelligent reasons to do nothing.
Scott Simon Try. Try. Try. Try. try. Try.
Try. Try. Try. try. Try. Try. Try. Try. try.
Try. Try. Try. Try. try. Try. Try. Try. Try.
Focus. Miss Anthony has one idea and she has no patience with anyone who has two. ECS*
*TP: Why SBA is on the coin? Ready. Fire! Fire! Aim. The Milken model, in a nutshell, is to stimulate research by drastically cutting the waiting time for grant money, to flood the field with fast cash, to fund therapy-driven ideas rather than basic
science, to hold researchers he funds accountable for results, and to demand collaboration across disciplines and among institutions, private industry, and academia. Fortune/The Business, The Man Who Changed Medicine The Benefits of FOCUSED EXCELLENCE Shouldice/Hernia Repair:
1% recurrence. Avg: 90 min, 10%-15% 30 min, recurrence. Source: Complications, Atul Gawande
Conscious measurement 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? personal Buy a Mirror! Step #1:
The First step in a dramatic organizational change program is obvious dramatic personal change! RG To change minds
effectively, leaders make particular use of two stories that they tell and the lives tools: the
that they lead. Changing Minds Howard Gardner, Work on me first.
Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations leader like _____ be so out of touch with the truth about himself? Its more common than you would imagine. In fact, the
higher up the ladder a leader climbs, the less accurate his selfassessment is likely to be. The problem is an acute lack of feedback Inno64: Innovation Strategies
& Tactics What We Know For Sure About Innovation Big mergers [by & large] dont 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 arent 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 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!!! 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 Childrens 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 diversitys 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) Pause: Case Study Elizabeth Cady Stanton, Womens
Rights/sufferage, relentlessness, and movements that rock the world I have very serious objections to being called Henry. Why are the slaves nameless
unless they take that of their master? Simply because they have no independent existence. They are mere chattels, with no civil or social rights. Even so with women. The custom of calling women Mrs. John This and Mrs. Tom That and colored men Sambo and Zip C___ is founded on the principal that white men are the lords of all. I cannot acknowledge this principle as just; therefore I cannot bear the name of another. Elizabeth Cady Stanton
Source: In Her Own Right: The Life of Elizabeth Cady Stanton, Elisabeth Griffith ECS: She was defeated again and again and again, but she continued the struggle with
passionate impatience. Source: In Her Own Right: The Life of Elizabeth Cady Stanton, Elisabeth Griffith 72 years, 1 month, 5 days
She had survived her husband, outlived most of her enemies, and exhausted her allies. Her mind remained alert, her mood optimistic, and her manner combative. Source: Self Sovereign 1889-1902, In Her Own Right: The
Life of Elizabeth Cady Stanton, Elisabeth Griffith (50 years down, 25 to go) Driven by anger!! (not focus groups) Great vision, no strategic plan Whoops: conflicting vision/s Execution (& vision) (Dreamers with deadlines) Opportunistic Insane optimism
Failure after failure; disappointment after disappointment (secret to staying power: Stay pissed off!!) Plan B rules Changing cadres Opportunistic alliances (here today, gone tomorrow) The enemy of my enemy is my friend Creating events and groups to serve a momentary need Warring leaders (Freud-Jung) Petulance (human frailty amidst a Great Struggle)
Agile re goal w/o sacrificing Vision Go underground for long stretches Patience (72 years) & impatience Relentless!!!!!!!!!!!!!!! (WSC: Success stems from the ability to go from failure without losing your enthusiasm) Hustle (Seneca Falls, 48: 5 days) Fits & starts
Traitors-deserters Radicals (goodMLKjr) Radicals (disruptiveStokely) Moderates Mentors Schisms Setbacks (again & again & againincl lost ground) (2-9 = Great record) Get off on the politics (TP: Life is politics
the rest is details.) Managing the goal down to get to the doable (but not losing sight of the main game in the process) Small wins Externalities (Civil War) Small Band of Sisters (<10; Seneca Falls 1848) Coherent, factual, emotional story Story altered at the margin to attract specific adherents Story tellers (superb, relentless public communicators)
Elizabeth Cady Stanton (more or less) (circa 0331.2007) Elizabeth Cady Stanton (more or less) (circa 0331.2007) Agility (Plan B) Relentless
Resilient Optimistic (Unreasonably so) Pissed Off Visionary Try It. Try it. Try it. Action > Plans Virus Small Wins Demos-Heroes-Stories
Wee Gestures of Decency-Thoughtfulness Politics >> Science (Get over it!) Think: R.O.I.R. (Networker) Sales Rules! Passion (incl. speaking skills) Women (Lead Local Change Agents) Women Leaders (Woman to Woman) Success = 72.1.5 = Elizabeth Cady Stanton (1815-1902),
Lucretia Mott, Martha Wright, Mary Ann McClintock, Jane Hunt (07.13.1848/Seneca falls ny) + 72 years, 1 month, 5 days (08.18.1920/nashville tn)
End Pause CHANGE MANAGEMENT. Toms Change Rules Cause. (Pissed off.) RELENTLESS!!!!!!!!!!!!!!!!!!!!!!!!!!!! Try it. (S.A.V.) (r.f.a.) (hustle.)
project. Project. Project. Wow! (hot language.) fun. (growth opportunities.) Sky-high aspirations. Fail. Forward. Fast. SMALL WINS. MOMENTUM. INEVITABILITY. Quests. Demos. Heroes. Stories. STATISTICAL INDEPENDENCE. (DIVERSITY.) Boonies. (Parallel universe. Test stuff. Buy WeeCo)
V.C.: Roster = portfolio. everything = portfolio. Roster = brand yous. PARTNER WITH WIERDOS. (everywhere.) Diversity @ top. Buy a mirror. FRUSTRATED GODFATHER. <12. ALREADY IN PLACE/find em. JUST Say No: NORMAL. wikiWorld. Attitude > Ability. Wow. Insanely great. Sell! Sell! Sell! (master-appreciate politics) (r.o.i.r.) What We Know For Sure About Innovation Big mergers [by & large] dont 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 arent 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 EXCELLENCE. 4/40. 4/40 De-central-iza-tion!
Decentralizatio n is not a piece of paper. Its not me. Its either in your heart, or not. Brian Joffe/BIDvest If if feels
painful and scarythats real delegation Caspian Woods, small biz owner The True Logic* of Decentralization: 6 divisions = 6 tries 6 divisions = 6 DIFFERENT
leaders = 6 INDEPENDENT tries = Max probability of win 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT tries = Max probability of far out/3-sigma win *Driver: Law of Large #s Best practice =
ZERO Standard Deviation Decentralization vs Centralization = Thats All There Is (from
childrearing 101 to the Federalist Papers to Org.2007) The Earls & Dukes vs King John (The Magna Carta) The Continental Congress vs the Constitution Jefferson vs Adams Sloan vs Ford
GE vs All comers HP vs HP Peters vs Hammer Mintzberg vs Porter Ex-ecution! 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 = (1) sum of Projects Goal (Vision)
(2) sum of Milestones = project (3) rapid Review + Truth-telling = Costco figured out the big, simple things and executed with
total fanaticism. Charles Munger, Berkshire Hathaway .0004 * Never forget implementation , boys. In our work, its what I
call the last 98 percent of the client puzzle. Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP Recently I asked three corporate executives what decisions they had made
in the last year that would not have been made were it not for their corporate plans. All had difficulty identifying one such decision. Since all of the plans are marked secret or confidential, I asked them how their competitors might benefit from possession of their plans. Each answered with
embarrassment that their competitors would not benefit. Russell Ackoff (from Henry Mintzberg, The Rise and Fall of Strategic Planning) Ac-counta-bil-ity! 30% MH: 80% CF:
(no salesfolk) (salesfolk) Monkeys cant live in
midair! Bob Townsend GE has set a standard of candor. There is no puffery. There isnt an ounce of
denial in the place. Kevin Sharer, CEO Amgen, on the GE mystique (Fortune) Walter Reed SECDEF
6:15A.M . But its only 2am! Where are you going? But its only 2am. You see, you can live
your life at 120 miles an hour, and thats pretty impressive. But its not good enough. Unless you live at 150 miles an hour, the world will pass you by, HRH Prince Alwaleed* *1 day: 573 people met separately, 200 phone calls, 100 text messages, etc Source: Prince Alwaleed, Inside the private world of the Middle Easts most powerful investor cover story, The Business, 0519.07
DECENTRALIZATIO N. EXECUTION. ACCOUTABILITY. 6:15A.M. (2a.m.) Excellence: The SE22: ORIGINS OF
SUSTAINABLE ENTREPRENEURSHI P SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT)
2. Perpetually determined to outdo oneself, even to the detriment of todays $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use Strategic Thrust Overlays to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a Be on the COOL Team Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
HPs Big Duh! Decentralize ($90B) Undo Matrix Accountability Source: HP Says Goodbye To Drama/ BW/09.05/re Mark Hurds first 5 months
30% MH: 80% CF: (no salesfolk) (salesfolk)
GSK: 7 CEDDs Centers of Excellence for Drug Discovery DePuySpine/J&J* 70/3 game-changers!
*Still decentralized after all these years! SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizingtireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners especially exciting start-ups (Pfizer)
12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Dont overdo pursuit of synergy (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it dont obsess on how it fits the business model. (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/No limits approach to retaining top talent (Virgin, GE, PepsiCo)
SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up 20. or Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios in general) Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. Bi-polar Top Team, with Unglued Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron)
22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin) HOW THE COAST GUARD GETS IT RIGHT Headline, Time, 10.31.2005
*Autonomy *Flexibility *Perhaps the most important distinction of the Coast Guard is that it trusts itself Itinerant. Potential. Machines.
TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal if youre stretching. Want to make their bones in the revolution. Love the new technologies. Well rewarded. Dont plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with worlds best as needed (its often needed). We aim to change the world, and we need gifted colleagueswho well may not be on our payroll. BRASSY-BUT-GROUNDEDLEADERSHIP. Say I dont knowand then unleash the TALENT. Have a vision to
be DRAMATICALLY DIFFERENTbut dont expect the co. to be around forever. Will scrap pet projects, and change course 180 degreesand take a big write-off in the process. NO REGRETS FROM SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT REGRETS AT TIME & $$$ WASTED ON ME TOO PRODUCTS AND PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.) Visionary leaders matched by leaders with shrewd business sense: HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA? Appreciate market creation as much as or more than market share growth. ARE INSANELY AWARE THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN
TODAYS VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR. (Gates. Ellison. Venter. McNealy. Walton. Case. Etc.) ALLIANCE MANIACS. Dont assume that the best resides within. WORK WITH A SHIFTING ARRAY OF STATEOF-THE-ART PARTNERS FROM ONE END OF THE SUPPLY CHAIN TO
THE OTHER. Including vendors and consultants and who especially PIONEERING CUSTOMERS will pull us into the future. TECHNOLOGY-NETWORK FANATICS. Run the whole-damncompany, and relations with all outsiders, on the Internet at Internet speed. Reluctant to work with those who dont
share this (radical) vision. Crazy Times Call for Crazy Organizations Subtitle, The Tom Peters Seminar (1993) Pause
Tom Peters Action Chronicles. EXCELLENCE. ALWAYS. Think-Do.ACTION.0329.2007 The (necessary)
war on linearity: One engineers (unusual) lifes work. tom peters Apparently our society, not unlike the Greeks with their Delphic oracles, takes
great comfort in believing that very talented seers removed from the hurlyburly world of reality can tell foretell coming events. Len Sayles/Columbia (from Henry Mintzberg, The Rise and Fall of Strategic Planning) is more dangerous
in war than theoreticia This book is about luck disguised and perceived as non-luck (that is, skills) and more generally randomness disguised and perceived as nonrandomness. It manifests itself in the shape of the lucky fool, defined as a
person who benefited from a disproportionate share of luck but attributed his success to some other, generally precise reason. Fooled by Randomness: The Hidden Role of Chance in Life and the Markets, by Nassim Nicholas Taleb EXCELLE ALWAYS.
End Pause EXCELLE ALWAYS. PART TWO