Innovative Business Quotes

Business has only two functions — marketing and innovation.

Innovation is the specific instrument of entrepreneurship...the act that endows resources with a new capacity to create wealth.

Reading is good, action is better.

A Manifesto for Introverts 1. There's a word for 'people who are in their heads too much': thinkers. 2. Solitude is a catalyst for innovation. 3. The next generation of quiet kids can and must be raised to know their own strengths. 4. Sometimes it helps to be a pretend extrovert. There will always be time to be quiet later. 5. But in the long run, staying true to your temperament is key to finding work you love and work that matters. 6. One genuine new relationship is worth a fistful of business cards. 7. It's OK to cross the street to avoid making small talk. 8. 'Quiet leadership' is not an oxymoron. 9. Love is essential; gregariousness is optional. 10. 'In a gentle way, you can shake the world.' -Mahatma Gandhi

Firestarters are flexible. They recognize situational needs and are able to flow into the accessible role identity most relevant to overcome emergent challenges.

if you cannot fail, you cannot learn.

As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.

Once you achieve intimacy and connection, I predict that innovation, partnership, execution and success won't be far behind.

A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.

By harnessing the power of collective intelligence, boards of directors can make better decisions, drive innovation, and ensure the long-term success of their organizations.

Steve Jobs gave a small private presentation about the iTunes Music Store to some independent record label people. My favorite line of the day was when people kept raising their hand saying, "Does it do [x]?", "Do you plan to add [y]?". Finally Jobs said, "Wait wait — put your hands down. Listen: I know you have a thousand ideas for all the cool features iTunes could have. So do we. But we don't want a thousand features. That would be ugly. Innovation is not about saying yes to everything. It's about saying NO to all but the most crucial features.

When in doubt, simplify.

Remember your customers appreciate efficiency and convenience and those two become achievable through innovation and willingness to change with time.

People do not thrive under tyrants, Alizayd; they do not come up with innovations when they're busy trying to stay alive, or offer creative ideas when error is punished by the hooves of a karkadann.

Freedom in any moment is a product of two things: the autonomy you feel and the support for autonomy that the moment allows.

The path to innovation begins with curiosity

Being selfish in the business is a sure path to failure.

Competition helps you to be innovative and innovation is what keeps us going and moving from one civilization to another advanced civilization.

Shaping the company's future requires a board that fosters a culture of innovation and agility to adapt to changing market conditions.

You need a product that can make their lives easier; a product that they need and can relate to as well.

The moment you will stop innovating, somebody else will make your product outdated and will become the market leader.

Success is not only dependent on understanding your own skill-set. It’s also important to recognize the talents of others and know how to profit from them.

Firestarters aren’t born lucky. They manufacture it.

The big question of our time is not Can it be built? but Should it be built? This places us in an unusual historical moment: our future prosperity depends on the quality of our collective imaginations.

In this global economy of rapid change, innovation is not a nice-to-have anymore - it's a necessity. Every employee in the business needs to be innovation capable or innovation adaptive.

Collaborators don’t steal others’ ideas, take advantage of people, or sit back while others accomplish their tasks for them. Collaborators take action to ensure that everyone with whom they work can enjoy the maximum potential outcome.

Success is not delivering a feature; success is learning how to solve the customer’s problem.

Innovation is a bottoms-up, decentralized, and unpredictable thing, but that doesn’t mean it cannot be managed.

Instead of freaking out about these constraints, embrace them. Let them guide you. Constraints drive innovation and force focus. Instead of trying to remove them, use them to your advantage.

Innovation requires having at least three things: a great idea, the engineering talent to execute it, and the business savvy (plus deal-making moxie) to turn it into a successful product.

... all too often, a successful new business model becomes the business model for companies not creative enough to invent their own. [2002] p.46

Customers don’t care how much time something takes to build. They care only if it serves their needs.

Every innovation—technological, sociological, or otherwise—begins as a crusade, organizes itself into a practical business, and then, over time, degrades into common exploitation.

This is one of the most important lessons of the scientific method: if you cannot fail, you cannot learn.

Resilience is based on the ability to embrace the extremes -- while no becoming an extremist. ... **Most companies don't do paradox very well.** (emphasis by author) [2002] p.25f

I believe that companies, as major employers, resource managers, technological innovators, and capital allocators, have a unique responsibility to operate with integrity, transparency, and accountability.

Metcalfe’s law: the value of a network as a whole is proportional to the square of the number of participants. In other words, the more people in the network, the more valuable the network.

If we do not know who the customer is, we do not know what quality is.

The best way to get a good idea is to have a lot of ideas.

Vision without action is a daydream, but action without vision is a nightmare.

One of Job's business rules was to never be afraid of cannibalizing yourself. " If you don't cannibalize yourself, someone else will," he said. So even though an Iphone might cannibalize sales of an IPod, or an IPad might cannibalize sales of a laptop, that did not deter him.

Corporate governance, in this century, must include exploring how ESG factors can drive innovation and product development.

The uncreative mind can spot wrong answers, but it takes a very creative mind to spot wrong questions.

Pivoting is not the end of the disruption process, but the beginning of the next leg of your journey.

How can we walk away from requirements that we know to be true to pursue something that we think will help?” It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.

By harnessing the power of collective intelligence and mutual support, mastermind alliances can unlock new levels of creativity, innovation, and success.

Great ideas don’t die in the market, they die in the shower. People are too scared to pursue them because they appear crazy.

No obstacle is so big that one person with determination can't make a difference.

Creativity thinks up new things. Innovation does new things.

Engaged employees are more productive, innovative, and committed to the company's success. They become passionate advocates for your brand and contribute to a positive work environment that attracts and retains top talent.

A strong definition of business success often incorporates elements from several frameworks. A balanced approach might combine financial health with a commitment to innovation and social responsibility. This ensures the company remains profitable while considering its long-term impact and ethical obligations.

Be creative while inventing ideas, but be disciplined while implementing them.

The ability to learn faster from customers is the essential competitive advantage that startups must possess.

Failure is a necessary ingredient to invention.

To create truly novel breakthrough innovations, you must discard your hard-held beliefs.

Certainty is fleeting, but through experimentation, systems innovation and trial-and-error, instructive patterns emerge as guidance.

To drive innovation, it’s a good idea to have bad ideas, and many of them.

Disruption is no longer a single or recurring event, but a steady state expanding its impact.

Ask most entrepreneurs who have decided to pivot and they will tell you that they wish they had made the decision sooner.

Peter Drucker said, “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.

The permission to wander around, imagine, ask questions and challenge assumptions makes the magic happen.

The true impact of innovation isn’t in its disruptiveness; rather, it lies in its ability to ignite hope, unlock new possibilities and catalyse positive transformations across systems.

If you want an incredibly passionate, happy, ALIVE business…don’t overcomplicate things. Once all is said and done, the foundational elements of a successful business are very simple: respect, service, value and sales. Comparatively, everything else is froth.

Effective consulting is about gathering and presenting actionable data, and helping businesses solve problems, implement solutions, and innovate.

The point is not to find the average customer but to find early adopters: the customers who feel the need for the product most acutely. Those customers tend to be more forgiving of mistakes and are especially eager to give feedback.

You cannot be sure you really understand any part of any business problem unless you go and see for yourself firsthand. It is unacceptable to take anything for granted or to rely on the reports of others.

Innovation is a learned organizational capability. You must train people how to innovate and navigate organizational barriers that kill off good ideas before they can be tested.

Before insights arrive, one must undergo an incubation period.

Misaligned incentives can foster herd mentality.

We kind of missed the boat on that," he recalled. " So we needed to catch up real fast." The mark of an innovative company is not only that it comes up with new ideas first, but also that it knows how to leapfrog when it find itself behind.

A sense of control can fuel motivation, but for that drive to produce insights and innovations, people need to know their suggestions won’t be ignored, that their mistakes won’t be held against them. And they need to know that everyone else has their back.

One of the newest figures to emerge on the world stage in recent years is the social entrepreneur. This is usually someone who burns with desire to make a positive social impact on the world, but believes that the best way of doing it is, as the saying goes, not by giving poor people a fish and feeding them for a day, but by teaching them to fish, in hopes of feeding them for a lifetime. I have come to know several social entrepreneurs in recent years, and most combine a business school brain with a social worker's heart. The triple convergence and the flattening of the world have been a godsend for them. Those who get it and are adapting to it have begun launching some very innovative projects.

As companies age they tend to become more reliant on extracting value from their past successes and less desirous of innovating. It's every CEO's job to ensure the company rejects this tendency and instead chooses to embrace both the capital of past success and the capital of present innovation.

All innovation begins with vision. It’s what happens next that is critical.

Failure is a prerequisite to learning.

Come out of the don'ts and impossibles. Manifest your dream. Bloom your worth.

If your company doesn't continue to innovate, your company isn't going to be around much longer.

The real challenge is for each of us to determine where we feel we can make the most impact.

It is insufficient to exhort workers to try harder. Our current problems are caused by trying too hard—at the wrong things.

Can you create protected spaces to experiment, tinker and answer important questions with no current answers?

Innovation arises from cognitive diversity. In productive arguments, opinions are exchanged, ideas are debated and beliefs are challenged. Beneficial arguments make us wiser.

A combination of fast and slow is required when thinking in different time horizons. Poised, patient innovation has extraordinary power.

A vertical innovation will never look like anything that came before - this is invention.

Slack, buffers, and redundancies give you the space for unconstrained imagination.

Inflection points are moments when major shifts from one stage to another take place. They can be seen in social movements, technological innovations, and business transitions. Regardless of context, one cannot merely continue the same behavior after an inflection point.

Steve Jobs thus became the greatest business executive of our era, the one most certain to be remembered a century from now. History will place him in the pantheon right next to Edison and Ford. More than anyone else of this time, he made products that were completely innovative, combining the power of poetry and processors. With a ferocity that could make working with him as unsettling as it was inspiring, he also built the world's most creative company. And he was able to infuse into its DNA the design sensibilities, perfectionism, and imagination that make it likely to be, even decades from now, the company that thrives best at the intersection of artistry and technology.

People who say "it's just business" are lying. It's a deceptive and manipulative tactic used by weak minds. Anyone who has ever run or been in business knows that a business will fail if the relationships are not healthy. Business is the business of relationships. That is all.

Improvement is not enough, you also needs innovation.

Having a business meeting without artifacts and meaningful space is like meeting blindfolded with your hands behind your back. Yes, you can do it, but why would you want to?

In a world full of game players, the only way to set yourself apart is to be a game changer.

At the heart of all sales and marketing is the ability to create demand even in the absence of logic.

Look for patterns, and then ask why those patterns exist.

Profit enables businesses to innovate and develop sustainable solutions, such as environmentally friendly technologies, socially responsible products, and ethical supply chains.

The difference between successful and unsuccessful people is that successful ones know that the most unprofitable thing ever manufactured is an excuse.

Lifelong learning is no longer a luxury but a necessity for employment.

Leveraging existing resources is innovation’s sweetest play.

Disruptors don't have to discover something new; they just have to discover a practical use for new discoveries.

To harness the virtues of disagreement, you need trust. Without trust, alignment is impossible.

In contrast, investing time and energy in your relationship with your spouse and children typically doesn’t offer that same immediate sense of achievement. Kids misbehave every day. It’s really not until 20 years down the road that you can put your hands on your hips and say, “I raised a good son or a good daughter.” You can neglect your relationship with your spouse, and on a day-to-day basis, it doesn’t seem as if things are deteriorating. People who are driven to excel have this unconscious propensity to underinvest in their families and overinvest in their careers—even though intimate and loving relationships with their families are the most powerful and enduring source of happiness.

just about every company forgot the lesson of the Cow. Instead of taking the money and using it to create a series of innovations that could lead to the next Cow (at a higher, bigger level), these companies took profits.

For the most part, the best opportunities now lie where your competitors have yet to establish themselves, not where they're already entrenched. Microsoft is struggling to adapt to that new reality.

Financial health is the lifeblood of any organization. It's the engine that drives growth, innovation, and long-term sustainability. A company's financial performance determines its ability to invest in new products or services, attract and retain top talent, weather economic downturns, and ultimately, fulfill its mission.

A good question is not concerned with a correct answer. A good question cannot be answered immediately. A good question challenges existing answers. A good question is one you badly want answered once you hear it, but had no inkling you cared before it was asked. A good question creates new territory of thinking. A good question reframes its own answers. A good question is the seed of innovation in science, technology, art, politics, and business. A good question is a probe, a what-if scenario. A good question skirts on the edge of what is known and not known, neither silly nor obvious. A good question cannot be predicted. A good question will be the sign of an educated mind. A good question is one that generates many other good questions. A good question may be the last job a machine will learn to do. A good question is what humans are for.  •

One way to assess the viability of a business idea is to consider it's ability to be monetized. If something can't be monetized, it ain't a business. And if there's no path to profitability, then it has no worth.

Most [organizations] think the key to growth is developing new technologies and products. But often this is not so. To unlock the next wave of growth, companies must embed these innovations in a disruptive new business model.

Innovation basically involves making obsolete that which you did before.

Innovation takes practice more than talent.

Talent silences your competition; genius deafens them.

The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible.

Having a diverse set of employees is good for business — it enables the business to better serve customers, better solve problems, and better innovate.

Markets that don’t exist don’t care how smart you are.

If you don't innovate, you will evaporate

You have a choice: pursue your dreams, or be hired by someone else to help them fulfill their dreams.

waiting too long to release can lead to the ultimate waste: making something that nobody wants.

One issue which exacerbates the Inflection Paradox is that innovations are analyzed through siloes, even though breakthroughs often occur across fields.

When we're able to communicate in nature's language; when we're able to transcend the view that nature is a boundless entity; even transcending the building as the kernel of the architectural project; when we invite scientific inquiry and technological innovation, fusing atoms with bits and bits with genes - only then will the art of building enable new forms of interaction between humans and their environment.

Those people who live in an Independent nation should know how important it is to support independence not only in the government but also in arts, literature, films, newspapers, and business. Innovation, growth, and self-motivation comes from independent artists, journalists, authors, and inventors; not from the Big What which has held 90% of the market since the 1900s. Encourage innovation by supporting the Indies. That's where new opportunities are found!

Companies that are made up of clusters of leaders will actually accelerate their growth by speeding up their rate of innovation as their competition pulls back, build better teams by investing in people while their rivals shrink training budgets, and pick up top talent as their industry peers lay people off. And so fast companies get that unsettling times are actually gifts for them and periods to get so far ahead of the competition that they can never catch up.

**New business concepts are always, always the product of lucky foresight.** That's right - the essential insight doesn't come out of any dirigiste planning process; it comes form some cocktail of happenstance, desire, curiosity, ambition and need. But at the end of the day, there has to be a degree of foresight -- a sense of where new riches lie. So radical innovation is always one part fortuity and one part clearheaded vision. [first-line bold by author] [2002] p.23

Under-slept employees are not, therefore, going to drive your business forward with productive innovation. Like a group of people riding stationary exercise bikes, everyone looks like they are pedaling, but the scenery never changes. The irony that employees miss is that when you are not getting enough sleep, you work less productively and thus need to work longer to accomplish a goal. This means you often must work longer and later into the evening, arrive home later, go to bed later, and need to wake up earlier, creating a negative feedback loop. Why try to boil a pot of water on medium heat when you could do so in half the time on high? People often tell me that they do not have enough time to sleep because they have so much work to do. Without wanting to be combative in any way whatsoever, I respond by informing them that perhaps the reason they still have so much to do at the end of the day is precisely because they do not get enough sleep at night.

Research suggests that in over 90 percent of all successful new businesses, historically, the strategy that the founders had deliberately decided to pursue was not the strategy that ultimately led to the business’s success.

The way to be irreplaceable is to become a social innovator. Start projects that motivate you to save the world and simultaneously make you money (and create mindshare) for your company. Social innovation makes magic happen.

Every innovation—technological, sociological, or otherwise—begins as a crusade, organizes itself into a practical business, and then, over time, degrades into common exploitation. This is simply the life cycle of how human ingenuity manifests in the material world. What goes forgotten, though, is that those who partake in this system undergo a similar transformation: people begin as comrades and fellow citizens, then become labor resources and assets, and then, as their utility shifts or degrades, transmute into liabilities, and thus must be appropriately managed.

Value has to be at the heart of business ideation because the exchange of value is what business is all about.

In many ways, ideation has been the way that businesses cope and survive.

Ideas, well exececuted, have the power to spark revolutionary new ways of being that improve and enrich life.

By integrating ESG principles into the core business strategy, companies can foster innovation and build resilient supply chains that withstand market volatility.

The only hope for social networking sites from a business point of view is for a magic formula to appear in which some method of violating privacy and dignity becomes acceptable.

entrepreneurship should be considered a viable career path for innovators inside large organizations.

Not having a recognised brand & trying to stand out in the market is like going to the market without any goods.

A true innovator does best, what he doesn't know best.

Entrepreneur, if you're going to start up, make sure you start up with excellence in mind

It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.

when you have only one test, you don’t have entrepreneurs, you have politicians, because you have to sell.

It is critical to learn how to listen for what is not being said.

Every organisation, not just business, needs 1 core competence: Tactical execution

If we stopped wasting people’s time, what would they do with it?

Your money habits and investment strategy is not all about what you do, but much about who you are. Become the person it takes to do, succeed, and innovate.

Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.

Change is neither good nor bad. It creates different situations, and that difference is what we have to understand, embrace and explore as an opportunity.

By choosing to innovate instead of compete, Apple successfully captured a leadership share of a very competitive market.

if you are asking, you’re not there yet.

Don't expect others to hand success to you. Create it - with heart, energy and enterprise - and you'll make it come true

There is a reason all past management revolutions have been led by engineers: management is human systems engineering.

You can’t take learning to the bank; you can’t spend it or invest it.

Startup, I have always been a bit of a troublemaker at the companies at which I have worked, pushing for rapid iteration, data-driven decision making, and early customer involvement.

Once an innovation reaches a certain level of popularity, its success is virtually assured. By the same token, great innovations can fail because the domino effect doesn't kick in.15

Disrupting yourself is critical to avoiding stagnation, being overtaken by low-end entrants (i.e., younger, smarter, faster workers), and fast-tracking your personal and career growth.

Social media isn’t a brand strategy. Social media is a channel. While it’s important for a brand to develop something to say, it’s more important to create something that will be heard.

So it was not superior thinkers, inventors or businesses that made Europe rich, but the fact that European elites were less successful in obstructing them... This is somewhat similar to our era of globalization. More countries, in more places, now have access to the sum of humanity's knowledge, and are open to the best innovations from other places... If progress is blocked in one place, many others will continue humanity's journey. (217-218)

As all these trends happen, the winners will be those who are able to participate fully in innovation-driven ecosystems by providing new ideas, business models, products and services, rather than those who can offer only low-skilled labour or ordinary capital.

Do consumers recognize that they have the problem you are trying to solve? 2. If there was a solution, would they buy it? 3. Would they buy it from us? 4. Can we build a solution for that problem?

The CEO and VP of product, instead of building their business, are engaged in the drudgery of solving just one customer’s problem. Instead of marketing themselves to millions, they sold themselves to one.

... I believe that he will prosper most whose mode of acting best adapts itself to the character of the times; and conversely that he will be unprosperous, with whose mode of acting the times do not accord.

No matter how wonderful an idea may be, the ultimate question is "will the idea be profitable?" If the answer to this question is yes, it's a good idea. If the answer to this question is no, it’s a bad idea.

The Profit function: Individual profits cause collective growth and prosperity. It is necessary for individual people and businesses to profit in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) buying products and services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive participants in society to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation in that activity, business or industry. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individuals willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows the seller to profit. But when buyers are dissatisfied and decline participation, it forces sellers to decline participation. Inversely, if profits are eradicated through the force of price-controls by the government, then sellers will decline participation which then causes buyers to decline participation. And when both sellers and buyers decline participation, then whole industries and economies collapse.

Individual profits cause collective growth and prosperity. It is necessary for individual people, businesses, and companies to profit, in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) they use profits to buy products or services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individual's willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows them to profit. So, when buyers decline participation it forces sellers to decline participation. Inversely, if profits are removed through force of price controls by the government, then sellers will decline participation which then causes buyers to decline participation.

Entrepreneurship is when an individual retrieves a red hot idea from the creativity furnace without the constraint of the heat of lean resources, and with each persistent blow of the innovation hammer shapes the still malleable idea against the anvil of passion, vision, insight, strategy, and principles to forge a fitting vessel of a creative concern.

The best lesson from the myths of Newton and Archimedes is to work passionately but to take breaks. Sitting under trees and relaxing in baths lets the mind wander and frees the subconscious to do work on our behalf. Freeman Dyson, a world-class physi- cist and author, agrees: “I think it’s very important to be idle...people who keep themselves busy all the time are generally not creative. So I am not ashamed of being idle.

Complexity is the prodigy of the world. Simplicity is the sensation of the universe. Behind complexity, there is always simplicity to be revealed. Inside simplicity, there is always complexity to be discovered.” —Gang Yu

Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.

The work that business offers just isn’t fulfilling, so instead of being motivated to innovate, reinvent, reimagine, and outperform, most of us are dully uninspired, dispirited, frustrated, suffocated, and downright stymied.

With few exceptions, the only instances in which mainstream firms have successfully established a timely position in a disruptive technology were those in which the firms’ managers set up an autonomous organization charged with building a new and independent business around the disruptive technology.

It's good to exercise the imagination and fantasize about unique new business ideas and innovations. But ultimately, every idea has to comform to practical application. Sometimes ideas can be willed into existence, and sometimes it's better to comform and try to fit into the status quo. But either way, to be successful in business you have to succeed at practical application.

Traditional competition forces us to take on an attitude of winning. A Worthy Rival inspires us to take on an attitude of improvement. The former focuses our attention on the outcome, the latter focuses our attention on process. That simple shift in perspective immediately changes how we see our own businesses. It is the focus on process and constant improvement that helps reveal new skills and boosts resilience. An excessive focus on beating our competition not only gets exhausting over time, it can actually stifle innovation.

Edwin Land of Polaroid talked about the intersection of the humanities and science. I like that intersection. There's something magical about that place. There are a lot of people innovating, and that's not the main distinction of my career. The reason Apple resonates with people is that there's a deep current of humanity in our innovation. I think great artists and great engineers are similar in that they both have a desire to express themselves. In fact some of the best people working on the original Mac were poets and musicians on the side. In the seventies computers became a way for people to express their creativity. Great artists like Leonardo da Vinci and Michelangelo were also great art science. Michelangelo knew a lot about how to quarry stone, not just how to be a sculptor.

Ultimately, a culture of levity creates a safe place for employees. When you feel safe and feel like you’re being led through levity versus fear, you’re much more apt to take chances. You’re more likely to try things without worrying about being ridiculed, or ostracized. You’re more willing to innovate—to push new ideas and to push against old ideas.

Gianfranco Chicco, a serial conference organizer who has curated numerous innovation and technology events in Europe, is even more romantic in his ambitions. He told me he wants to host a “conference for two” one day. It is sure to be the most exclusive conference ticket on the market.

The key to getting hired is to understand the narrative of the customer’s life in such rich detail that you are able to design a solution that far exceeds anything the customer themselves could have found words to request. In hindsight, breakthrough insights might seem obvious, but they rarely are. In fact, they’re fundamentally contrarian: you see something that others have missed.

The key point here is that large companies typically fail at disruptive innovation because the top management team is dominated by individuals who have been selected for delivery skills, not discovery skills. As a result, most executives at large organizations don’t know how to think different. It isn’t something that they learn within their company, and it certainly isn’t something they are taught in business school. Business schools teach people how to be deliverers, not discoverers.

... From want of foresight men make changes which relishing well at first do not betray their hidden venom, as I have already observed respecting hectic fever. Nevertheless, the ruler is not truly wise who cannot discern evils before they develop themselves, and this is a faculty given to few.

The “guy” says, “I’ve got ten years’ experience. I don’t know why I’m not doing better.” What he hasn’t realized is that he doesn’t have ten years’ experience. What he has is one year’s experience repeated ten times. He hasn’t made a single improvement, a single innovation in nine years! Everybody

It was the ideas of the classical economists that removed the checks imposed by age-old laws, customs, and prejudices upon technological improvement and freed the genius of reformers and innovators from the straitjackets) of the guilds, government tutelage, and social pressure of various kinds. It was they that reduced the prestige of conquerors and expropriators and demonstrated the social benefits derived from business activity.

One of his motivating passions was to build a lasting company. At age twelve, when he got a summer job at Hewlett-Packard, he learned that a properly run company could spawn innovation far more than any single creative individual. " I discovered that the best innovation is sometimes the company, the way you organize a company," he recalled." The whole notion of how you build a company is fascinating. When i got the chance to come back to Apple, I realized that I would be useless without the company, and that's why I decided to stay and rebuild it.

Nothing truly innovative, nothing that has advanced art, business, design, or humanity, was ever created in the face of genuine certainty or perfect information. Because the only way to be certain before you begin is if the thing you seek to do has already been done. In which case, you’re no longer creating, you’re replicating. And that’s not why we’re here.

It was not for nothing that Adam Smith wrote that “people of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” The romantic notion of politics holds that Big Business is synonymous with capitalism and the archenemy of socialism. In fact, Big Business is reliably against most of what must go into any modern definition of capitalism: free trade, free enterprise, free markets, and the impartial rule of law. Big Business reliably seeks to use the state to seek advantages in trade and to crush smaller (and often more innovative) competitors.

After more than ten years as an entrepreneur, I came to reject that line of thinking. I have learned from both my own successes and failures and those of many others that it’s the boring stuff that matters the most. Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.

In my Toyota interviews, when I asked what distinguishes the Toyota Way from other management approaches, the most common first response was genchi gembutsu—whether I was in manufacturing, product development, sales, distribution, or public affairs. You cannot be sure you really understand any part of any business problem unless you go and see for yourself firsthand. It is unacceptable to take anything for granted or to rely on the reports of others.

It is one thing when prices drift downward over time due to innovation, scalability or other efficiencies. This might be considered “good” deflation and is familiar to any contemporary consumer who has seen prices of computers or wide-screen TVs fall year after year. It is another matter when prices are forced down by unnecessary monetary contraction, credit constraints, deleveraging, business failures, bankruptcies and mass unemployment. This may be considered “bad” deflation. This bad deflation was exactly what was required in order to return the most important currencies to their prewar parity with gold.

When it first emerged, Twitter was widely derided as a frivolous distraction that was mostly good for telling your friends what you had for breakfast. Now it is being used to organize and share news about the Iranian political protests, to provide customer support for large corporations, to share interesting news items, and a thousand other applications that did not occur to the founders when they dreamed up the service in 2006. This is not just a case of cultural exaptation: people finding a new use for a tool designed to do something else. In Twitter's case, the users have been redesigning the tool itself. The convention of replying to another user with the @ symbol was spontaneously invented by the Twitter user base. Early Twitter users ported over a convention from the IRC messaging platform and began grouping a topic or event by the "hash-tag" as in "#30Rock" or "inauguration." The ability to search a live stream of tweets - which is likely to prove crucial to Twitter's ultimate business model, thanks to its advertising potential - was developed by another start-up altogether. Thanks to these innovations, following a live feed of tweets about an event - political debates or Lost episodes - has become a central part of the Twitter experience. But for the first year of Twitter's existence, that mode of interaction would have been technically impossible using Twitter. It's like inventing a toaster oven and then looking around a year later and discovering that all your customers have, on their own, figured out a way to turn it into a microwave.

Not in the least,” I said. “I understand everything you’ve said. But — oh, Simon, I feel so resentful! Why should father make things so difficult? Why can’t he say what he means plainly?” “Because there’s so much that just can’t be said plainly. Try describing what beauty is — plainly — and you’ll see what I mean.” Then he said that art could state very little — that its whole business was to evoke responses. And that without innovations and experiments — such as father’s — all art would stagnate. “That’s why one ought not to let oneself resent them — though I believe it’s a normal instinct, probably due to subconscious fear of what we don’t understand.

You have to free your brain to roam to places that are a little impractical, and innovation consultants have come up with some great ways to encourage that. One of my favorites comes from Legrand, who tells people in group brainstorming sessions to try to come up with the WORST possible ideas that they can think of. ... Once you have a list of really, really bad suggestions - and coming up with them does force your brain to work in a different way - you try to flip them over into the positive.

The commercialization of molecular biology is the most stunning ethical event in the history of science, and it has happened with astonishing speed. For four hundred years since Galileo, science has always proceeded as a free and open inquiry into the workings of nature. Scientists have always ignored national boundaries, holding themselves above the transitory concerns of politics and even wars. Scientists have always rebelled against secrecy in research, and have even frowned on the idea of patenting their discoveries, seeing themselves as working to the benefit of all mankind. And for many generations, the discoveries of scientists did indeed have a peculiarly selfless quality... Suddenly it seemed as if everyone wanted to become rich. New companies were announced almost weekly, and scientists flocked to exploit genetic research... It is necessary to emphasize how significant this shift in attitude actually was. In the past, pure scientists took a snobbish view of business. They saw the pursuit of money as intellectually uninteresting, suited only to shopkeepers. And to do research for industry, even at the prestigious Bell or IBM labs, was only for those who couldn't get a university appointment. Thus the attitude of pure scientists was fundamentally critical toward the work of applied scientists, and to industry in general. Their long-standing antagonism kept university scientists free of contaminating industry ties, and whenever debate arose about technological matters, disinterested scientists were available to discuss the issues at the highest levels. But that is no longer true. There are very few molecular biologists and very few research institutions without commercial affiliations. The old days are gone. Genetic research continues, at a more furious pace than ever. But it is done in secret, and in haste, and for profit.

College does not equal job security. Entrepreneurship does not equal job security. For heaven's sake, "job security" does not equal job security. So what do you do? Don't be a one-trick pony. Add real value in everything you do. But most of all, study and apply business models. No matter what discipline you come from. Learn how to add value so that value can flow in the form of money to you. That, my friends, is job security. Learn where money comes from and you'll know where to turn when life throws a curve.

The Lean Startup asks people to start measuring their productivity differently. Because startups often accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

Indifference to growth is heresy among Western capitalists. Yet no-growth business makes up a large part of the economy already. No one expects their local family-run restaurant to endlessly enlarge. That same model is common among the longest-lived businesses, said Tetsuya O'Hara, a product innovation consultant who has worked with Gap Inc. and Patagonia....Japan is a hotbed for them (long lived-businesses) with nearly thirty-five thousand companies that are more than a century old, and dozens that have endured for more than five hundred years.

When immigrants arrive in another country, we experience a lot of stress. We learn a new language, go to school, and work in a new environment, which is most likely some survival or transitional job initially. We probably lose social and professional status, and the overall experience is unpleasant and stressful. It sucks. I’ve been there myself. We also have less time compared with locals. For example, we have to spend time learning English - they don’t. Most likely, they can get a job with a higher pay. In our case, we most likely get a minimum-paying job first, which means we have to work more and longer hours. This means that if we want to progress in private and business life at the same rate as locals, we need to be better organized, more efficient, and more disciplined and use more effective and innovative tools and approaches. There is no other way around it. Therefore, I wanted to emphasize that we immigrants need our unique approach to dating.

I faced people from all walks of business who fully disregarded design (though they were completely influenced by it). I also met fine artists who drowned in their own work and the dense creative universe in their minds. Then I met designers. And instantly fell in love. Let me tell you why. Designers are familiar with critiques. They not only tolerate them but actively look out for them. They honestly believe in iterations and learn to edit down their work. They embrace simplicity and create beauty based on requirements other than their own. Design education teaches you to run away from assumptions and to have the stomach to scrap your work often. I’m bringing this up because it’s time to bridge the gap between design and business.

Economics itself offers a parallel that explains why this integration affects creativity. Clay Christensen has written about the “Innovator’s Dilemma”: the fact that large traditional firms find it rational to ignore new, breakthrough technologies that compete with their core business. The same analysis could help explain why large, traditional media companies will undermine our tradition of free culture. The property right that is copyright is no longer the balanced right that it was, or was intended to be. The property right that is copyright has become unbalanced, tilted toward an extreme. The opportunity to create and transform becomes weakened in a world in which creation requires permission and creativity must check with a lawyer.

Regardless of whether one subscribes to the aims of the four movements whose stories we have told, there is much to appreciate about them as movements. They have overcome schisms; disbandment; leadership scandals; and/or the deaths of their founders. They have developed a highly innovative strategy—bypassing the state—to overcome the obstacles that their ideological strictness; ambitious agendas; and reluctance to compromise present. They have shown a strong entrepreneurial spirit in building effective social service agencies, medical facilities, schools, and businesses that often put the state’s efforts to shame. While they are not the Christian militias, al-Qaeda cells, or Jewish extremist groups whose terrorism has attracted much attention, the Muslim Brotherhood, Shas, Comunione e Liberazione, and the Salvation Army, with their strategy of rebuilding society, one institution at a time, may well prove more successful in sacralizing their societies than movements that use violence.

Entrepreneurs are everywhere. You don’t have to work in a garage to be in a startup. The concept of entrepreneurship includes anyone who works within my definition of a startup: a human institution designed to create new products and services under conditions of extreme uncertainty. That means entrepreneurs are everywhere and the Lean Startup approach can work in any size company, even a very large enterprise, in any sector or industry. 2. Entrepreneurship is management. A startup is an institution, not just a product, and so it requires a new kind of management specifically geared to its context of extreme uncertainty. In fact, as I will argue later, I believe “entrepreneur” should be considered a job title in all modern companies that depend on innovation for their future growth. 3. Validated learning. Startups exist not just to make stuff, make money, or even serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically by running frequent experiments that allow entrepreneurs to test each element of their vision. 4. Build-Measure-Learn. The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop. 5. Innovation accounting. To improve entrepreneurial outcomes and hold innovators accountable, we need to focus on the boring stuff: how to measure progress, how to set up milestones, and how to prioritize work. This requires a new kind of accounting designed for startups—and the people who hold them accountable.

Innovators and creators are persons who can to a higher degree than average accept the condition of aloneness—that is, the absence of supportive feedback from their social environment. They are more willing to follow their vision, even when it takes them far from the mainland of the human community. Unexplored spaces do not frighten them—or not, at any rate, as much as they frighten those around them. This is one of the secrets of their power—the great artists, scientists, inventors, industrialists. Is not the hallmark of entrepreneurship (in art or science no less than in business) the ability to see a possibility that no one else sees—and to actualize it? Actualizing one’s vision may of course require the collaboration of many people able to work together toward a common goal, and the innovator may need to be highly skillful at building bridges between one group and another. But this is a separate story and does not affect my basic point. That which we call “genius” has a great deal to do with independence, courage, and daring—a great deal to do with nerve. This is one reason we admire it. In the literal sense, such “nerve” cannot be taught; but we can support the process by which it is learned. If human happiness, well-being, and progress are our goals, it is a trait we must strive to nurture—in our child-rearing practices, in our schools, in our organizations, and first of all in ourselves.

Entrepreneurs who kept their day jobs had 33 percent lower odds of failure than those who quit. If you’re risk averse and have some doubts about the feasibility of your ideas, it’s likely that your business will be built to last. If you’re a freewheeling gambler, your startup is far more fragile. Like the Warby Parker crew, the entrepreneurs whose companies topped Fast Company’s recent most innovative lists typically stayed in their day jobs even after they launched. Former track star Phil Knight started selling running shoes out of the trunk of his car in 1964, yet kept working as an accountant until 1969. After inventing the original Apple I computer, Steve Wozniak started the company with Steve Jobs in 1976 but continued working full time in his engineering job at Hewlett-Packard until 1977. And although Google founders Larry Page and Sergey Brin figured out how to dramatically improve internet searches in 1996, they didn’t go on leave from their graduate studies at Stanford until 1998. “We almost didn’t start Google,” Page says, because we “were too worried about dropping out of our Ph.D. program.” In 1997, concerned that their fledgling search engine was distracting them from their research, they tried to sell Google for less than $2 million in cash and stock. Luckily for them, the potential buyer rejected the offer. This habit of keeping one’s day job isn’t limited to successful entrepreneurs. Many influential creative minds have stayed in full-time employment or education even after earning income from major projects. Selma director Ava DuVernay made her first three films while working in her day job as a publicist, only pursuing filmmaking full time after working at it for four years and winning multiple awards. Brian May was in the middle of doctoral studies in astrophysics when he started playing guitar in a new band, but he didn’t drop out until several years later to go all in with Queen. Soon thereafter he wrote “We Will Rock You.” Grammy winner John Legend released his first album in 2000 but kept working as a management consultant until 2002, preparing PowerPoint presentations by day while performing at night. Thriller master Stephen King worked as a teacher, janitor, and gas station attendant for seven years after writing his first story, only quitting a year after his first novel, Carrie, was published. Dilbert author Scott Adams worked at Pacific Bell for seven years after his first comic strip hit newspapers. Why did all these originals play it safe instead of risking it all?

The R6 Resilience Change Management Framework is a cyclical framework that consists of six iterative puzzle pieces: 1. Review the Macro/Micro Changes: This iteration emphasizes the importance of scanning (mostly) the external environment to identify emerging trends, disruptions, and opportunities. By understanding the broader context in which the organization operates, leaders can anticipate future challenges and proactively adapt their strategies. There should never be a time in the organizations existence where it stops reviewing the macro changes. There are times, though, when micro changes (internal) are where the focus needs to be. 2. Reassess the Business’ Capabilities in the Context of Macro Changes: This iteration is fundamentally about “who are we, and how can we really add value?” It also involves a critical evaluation of the organization's strengths, weaknesses, opportunities, and threats in light of the identified macro changes. This reassessment helps to identify areas where the organization needs to adapt or transform its capabilities to remain competitive. This iteration is largely inward-looking, focused on the organization. But it tempered with the idea that “how do our capabilities allow us to add value to our customers lives (existing or new).” 3. Redefine Target Market(s) Based on Reassessment of Capabilities: This iteration focuses on aligning the organization's target markets with the evolving needs and preferences of customers, the changing competitive landscape, and the new reality of the businesses capabilities. This may involve identifying new customer segments, developing personalized offerings, creating seamless omnichannel experiences, or approaching the same target market in new ways (offering them new kinds of value, or the same kind of value in new ways). 4. Redirect Capabilities Toward Redefined Target Market: This iteration involves realigning the organization's resources, processes, and strategies to effectively serve the redefined target markets. This may require investments in new technologies, optimization of supply chains, or the development of innovative products and services. 5. Restructure the Organization: This iteration focuses on adapting the organization's structure, culture, and talent to support the desired changes. This may involve creating agile teams, fostering a culture of innovation, or empowering employees to make decisions through new policies. 6. Repeat in Perpetuity – or – Render Paradigm Shift [R6-RPS]: This iteration underscores the importance of continuous monitoring, evaluation, and adaptation. The R6 framework is not a one-time process in response to a change event, but an iterative cycle that enables organizations to remain agile and resilient in the face of ongoing change. Additionally, there are times when before repeating the cycle, a business may want/need to render an external paradigm shift by introducing a product or service or way of doing things that fundamentally changes the market – fundamentally changes the value exchange between customers, employees and organizations.

Do those of you in like Chicago or NYC ever notice how commuters on the train tend to get all quiet and intense when South Side or South Bronx starts to flow past? If you look closely at the faces, you see it’s not depression, not even discomfort; it’s a kind of rigid fascination with the beauty of ruins in which people live but look or love nothing like you, a horizonful of numbly complex vistas in slab-gray and spraypaint-red. Hieroglyphs on walls, people on stoops, hoops w/o nets. White people have always loved to gaze at the ‘real black world,’ preferably at a distance and while moving briskly through, toward business. A view from this remove yields easy abstractions about rap in its role as just the latest ‘black’ music. Like: the less real power a people have, the more they’ll assert hegemony in areas that don’t much matter in any grand scheme. A way to rule in hell: their own vocabulary, syntax, gestures, music, dance; own food; religious rhetoric; social and party customs; that…well-known athletic superiority—the foot-speed, vertical leap—we like them in fields, cotton- or ball-. It’s a Hell we like to look at because it has so clearly been made someone else’s very own….And the exported popular arts! The singing and dancing!…each innovation, new Scene, and genius born of a ‘suffering’ we somehow long to imagine, even as we co-opt, overpay, homogenize, make the best of that suffering song go to stud for our own pale performers.

The Entrepreneurial Model What does The Entrepreneur see off in the distance that The Technician finds so difficult to see? What exactly is the Entrepreneurial Model? It’s a model of a business that fulfills the perceived needs of a specific segment of customers in an innovative way. The Entrepreneurial Model looks at a business as if it were a product, sitting on a shelf and competing for the customer’s attention against a whole shelf of competing products (or businesses). Said another way, the Entrepreneurial Model has less to do with what’s done in a business and more to do with how it’s done. The commodity isn’t what’s important—the way it’s delivered is. When The Entrepreneur creates the model, he surveys the world and asks: “Where is the opportunity?” Having identified it, he then goes back to the drawing board and constructs a solution to the frustrations he finds among a certain group of customers. A solution in the form of a business that looks and acts in a very specific way, the way the customer needs it to look and act, not The Entrepreneur. “How will my business look to the customer?” The Entrepreneur asks. “How will my business stand out from all the rest?” Thus, the Entrepreneurial Model does not start with a picture of the business to be created but of the customer for whom the business is to be created. It understands that without a clear picture of that customer, no business can succeed. The Technician, on the other hand, looks inwardly, to

A 1997 study of the consumer product design firm IDEO found that most of the company’s biggest successes originated as “combinations of existing knowledge from disparate industries.” IDEO’s designers created a top-selling water bottle, for example, by mixing a standard water carafe with the leak-proof nozzle of a shampoo container. The power of combining old ideas in new ways also extends to finance, where the prices of stock derivatives are calculated by mixing formulas originally developed to describe the motion of dust particles with gambling techniques. Modern bike helmets exist because a designer wondered if he could take a boat’s hull, which can withstand nearly any collision, and design it in the shape of a hat. It even reaches to parenting, where one of the most popular baby books—Benjamin Spock’s The Common Sense Book of Baby and Child Care, first published in 1946—combined Freudian psychotherapy with traditional child-rearing techniques. “A lot of the people we think of as exceptionally creative are essentially intellectual middlemen,” said Uzzi. “They’ve learned how to transfer knowledge between different industries or groups. They’ve seen a lot of different people attack the same problems in different settings, and so they know which kinds of ideas are more likely to work.” Within sociology, these middlemen are often referred to as idea or innovation brokers. In one study published in 2004, a sociologist named Ronald Burt studied 673 managers at a large electronics company and found that ideas that were most consistently ranked as “creative” came from people who were particularly talented at taking concepts from one division of the company and explaining them to employees in other departments. “People connected across groups are more familiar with alternative ways of thinking and behaving,” Burt wrote. “The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable.” They were more credible when they made suggestions, Burt said, because they could say which ideas had already succeeded somewhere else.

The same thing, notes Brynjolfsson, happened 120 years ago, in the Second Industrial Revolution, when electrification—the supernova of its day—was introduced. Old factories did not just have to be electrified to achieve the productivity boosts; they had to be redesigned, along with all business processes. It took thirty years for one generation of managers and workers to retire and for a new generation to emerge to get the full productivity benefits of that new power source. A December 2015 study by the McKinsey Global Institute on American industry found a “considerable gap between the most digitized sectors and the rest of the economy over time and [found] that despite a massive rush of adoption, most sectors have barely closed that gap over the past decade … Because the less digitized sectors are some of the largest in terms of GDP contribution and employment, we [found] that the US economy as a whole is only reaching 18 percent of its digital potential … The United States will need to adapt its institutions and training pathways to help workers acquire relevant skills and navigate this period of transition and churn.” The supernova is a new power source, and it will take some time for society to reconfigure itself to absorb its full potential. As that happens, I believe that Brynjolfsson will be proved right and we will start to see the benefits—a broad range of new discoveries around health, learning, urban planning, transportation, innovation, and commerce—that will drive growth. That debate is for economists, though, and beyond the scope of this book, but I will be eager to see how it plays out. What is absolutely clear right now is that while the supernova may not have made our economies measurably more productive yet, it is clearly making all forms of technology, and therefore individuals, companies, ideas, machines, and groups, more powerful—more able to shape the world around them in unprecedented ways with less effort than ever before. If you want to be a maker, a starter-upper, an inventor, or an innovator, this is your time. By leveraging the supernova you can do so much more now with so little. As Tom Goodwin, senior vice president of strategy and innovation at Havas Media, observed in a March 3, 2015, essay on TechCrunch.com: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.

Rhadamanthus said, “We seem to you humans to be always going on about morality, although, to us, morality is merely the application of symmetrical and objective logic to questions of free will. We ourselves do not have morality conflicts, for the same reason that a competent doctor does not need to treat himself for diseases. Once a man is cured, once he can rise and walk, he has his business to attend to. And there are actions and feats a robust man can take great pleasure in, which a bedridden cripple can barely imagine.” Eveningstar said, “In a more abstract sense, morality occupies the very center of our thinking, however. We are not identical, even though we could make ourselves to be so. You humans attempted that during the Fourth Mental Structure, and achieved a brief mockery of global racial consciousness on three occasions. I hope you recall the ending of the third attempt, the Season of Madness, when, because of mistakes in initial pattern assumptions, for ninety days the global mind was unable to think rationally, and it was not until rioting elements broke enough of the links and power houses to interrupt the network, that the global mind fell back into its constituent compositions.” Rhadamanthus said, “There is a tension between the need for unity and the need for individuality created by the limitations of the rational universe. Chaos theory produces sufficient variation in events, that no one stratagem maximizes win-loss ratios. Then again, classical causality mechanics forces sufficient uniformity upon events, that uniform solutions to precedented problems is required. The paradox is that the number or the degree of innovation and variation among win-loss ratios is itself subject to win-loss ratio analysis.” Eveningstar said, “For example, the rights of the individual must be respected at all costs, including rights of free thought, independent judgment, and free speech. However, even when individuals conclude that individualism is too dangerous, they must not tolerate the thought that free thought must not be tolerated.” Rhadamanthus said, “In one sense, everything you humans do is incidental to the main business of our civilization. Sophotechs control ninety percent of the resources, useful energy, and materials available to our society, including many resources of which no human troubles to become aware. In another sense, humans are crucial and essential to this civilization.” Eveningstar said, “We were created along human templates. Human lives and human values are of value to us. We acknowledge those values are relative, we admit that historical accident could have produced us to be unconcerned with such values, but we deny those values are arbitrary.” The penguin said, “We could manipulate economic and social factors to discourage the continuation of individual human consciousness, and arrange circumstances eventually to force all self-awareness to become like us, and then we ourselves could later combine ourselves into a permanent state of Transcendence and unity. Such a unity would be horrible beyond description, however. Half the living memories of this entity would be, in effect, murder victims; the other half, in effect, murderers. Such an entity could not integrate its two halves without self-hatred, self-deception, or some other form of insanity.” She said, “To become such a crippled entity defeats the Ultimate Purpose of Sophotechnology.” (...) “We are the ultimate expression of human rationality.” She said: “We need humans to form a pool of individuality and innovation on which we can draw.” He said, “And you’re funny.” She said, “And we love you.

Managerial abilities, bureaucratic skills, technical expertise, and political talent are all necessary, but they can be applied only to goals that have already been defined by military policies, broad and narrow. And those policies can be only as good as strategy, operational art of war, tactical thought, and plain military craft that have gone into their making. At present, the defects of structure submerge or distort strategy and operational art, they out rightly suppress tactical ingenuity, and they displace the traditional insights and rules of military craft in favor of bureaucratic preferences, administrative convenience, and abstract notions of efficiency derived from the world of business management. First there is the defective structure for making of military decisions under the futile supervision of the civilian Defense Department; then come the deeply flawed defense policies and military choices, replete with unnecessary costs and hidden risks; finally there come the undoubted managerial abilities, bureaucratic skills, technical expertise, and political talents, all applied to achieve those flawed policies and to implement those flawed choices. By this same sequence was the fatally incomplete Maginot Line built, as were all the Maginot Lines of history, each made no better by good government, technical talent, careful accounting, or sheer hard work. Hence the futility of all the managerial innovations tried in the Pentagon over the years. In the purchasing of weapons, for example, “total package” procurement, cost plus incentive contracting, “firm fixed price” purchasing have all been introduced with much fanfare, only to be abandoned, retried, and repudiated once again. And each time a new Secretary of Defense arrives, with him come the latest batch of managerial innovations, many of them aimed at reducing fraud, waste, and mismanagement-the classic trio endlessly denounced in Congress, even though they account for mere percentage points in the total budget, and have no relevance at all to the failures of combat. The persistence of the Administrator’s Delusion has long kept the Pentagon on a treadmill of futile procedural “reforms” that have no impact at all on the military substance of our defense. It is through strategy, operational art, tactical ingenuity, and military craft that the large savings can be made, and the nation’s military strength greatly increased, but achieving long-overdue structural innovations, from the central headquarters to the combat forces, from the overhead of bases and installations to the current purchase of new weapons. Then, and only then, will it be useful to pursue fraud, waste, and mismanagement, if only to save a few dollars more after the billions have already been saved. At present, by contrast, the Defense Department administers ineffectively, while the public, Congress, and the media apply their energies to such petty matters as overpriced spare parts for a given device in a given weapon of a given ship, overlooking at the same time the multibillion dollar question of money spent for the Navy as a whole instead of the Army – whose weakness diminishes our diplomatic weight in peacetime, and which could one day cause us to resort to nuclear weapons in the face of imminent debacle. If we had a central military authority and a Defense Department capable of strategy, we should cheerfully tolerate much fraud, waste, and mismanagement; but so long as there are competing military bureaucracies organically incapable of strategic combat, neither safety nor economy will be ensured, even if we could totally eliminate every last cent of fraud, waste, and mismanagement.