Burt Rutan Quotes

Testing leads to failure, and failure leads to understanding

The Secrets of Skunk: Part Two At the Lockheed skunk works, Kelly Johnson ran a tight ship. He loved efficiency. He had a motto—“be quick, be quiet, and be on time”—and a set of rules.6 And while we are parsing the deep secrets of skunk, it’s to “Kelly’s rules” we must now turn. Wall the skunk works off from the rest of the corporate bureaucracy—that’s what you learn if you boil Johnson’s rules down to their essence. Out of his fourteen rules, four pertain solely to military projects and can thus be excluded from this discussion. Three are ways to increase rapid iteration (a topic we’ll come back to in a moment), but the remaining seven are all ways to enforce isolation. Rule 3, for example: “The number of people with any connection to the project should be restricted in an almost vicious manner.” Rule 13 is more of the same: “Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.” Isolation, then, according to Johnson, is the most important key to success in a skunk works. The reasoning here is twofold. There’s the obvious need for military secrecy, but more important is the fact that isolation stimulates risk taking, encouraging ideas weird and wild and acting as a counterforce to organizational inertia. Organizational inertia is the notion that once any company achieves success, its desire to develop and champion radical new technologies and directions is often tempered by the much stronger desire not to disrupt existing markets and lose their paychecks. Organizational inertia is fear of failure writ large, the reason Kodak didn’t recognize the brilliance of the digital camera, IBM initially dismissed the personal computer, and America Online (AOL) is, well, barely online. But what is true for a corporation is also true for the entrepreneur. Just as the successful skunk works isolates the innovation team from the greater organization, successful entrepreneurs need a buffer between themselves and the rest of society. As Burt Rutan, winner of the Ansari XPRIZE, once taught me: “The day before something is truly a breakthrough, it’s a crazy idea.” Trying out crazy ideas means bucking expert opinion and taking big risks. It means not being afraid to fail. Because you will fail. The road to bold is paved with failure, and this means having a strategy in place to handle risk and learn from mistakes is critical. In a talk given at re:Invent 2012, Amazon CEO Jeff Bezos7 explains it like this: “Many people misperceive what good entrepreneurs do. Good entrepreneurs don’t like risk. They seek to reduce risk. Starting a company is already risky . . . [so] you systematically eliminate risk in those early days.

less than five years after Burt Rutan spent $26 million beating the aerospace giants at their own game, DIY Drones took them down with volunteer labor, a few toys, and a couple hundred dollars’ worth of spare parts. “It’s radical demonetization,” says Anderson, “a true DIY story about using open-source design to reduce costs a hundredfold while keeping ninety percent functionality.

Demonstrating great ideas involves a considerable amount of risk. There will always be naysayers. People will resist breakthrough ideas until the moment they’re accepted as the new norm. Since the road to abundance requires significant innovation, it also requires significant tolerance for risk, for failure, and for ideas that strike most as absolute nonsense. As Burt Rutan puts it, “Revolutionary ideas come from nonsense. If an idea is truly a breakthrough, then the day before it was discovered, it must have been considered crazy or nonsense or both—otherwise it wouldn’t be a breakthrough.

A true creator researches how to have confidence in nonsense.