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Title: Tom Peters


1
Tom Peters Re-Imagine2006!Business
Excellence in a Disruptive AgeMadrid/21-22Fe
bruary2006(LONG/Talent50)
2
China!
3
China!
4
China!
5
China
6
Ch
7
THREE BILLION NEW CAPITALISTS Clyde Prestowitz
8
Re-imagine! Not Your Fathers World I.
9
26m
10
Vaunted German Engineers Face Competition From
China Headline, p1/WSJ/07.15.2004
11
U.S. manufacturers and retailers are shifting
their domestic warehouses and distribution
facilities to China as they seek to make supply
chains more efficient Headline, page 1,
Financial Times, 11.07.2005
12
THE CUSTOMER IS GOD AND THE MARKET DECIDES
EVERYTHINGSource Banner, Hua Xin Dress Co,
Ltd., Rongcheng Industry Zone
13
43h
14
Chinas Next Export Innovation McKinsey
Quarterly (Cover Story)
15
2003 98 U.S.2005 U.S. 150 Shanghai
500
16
168/18,500/51,000
17
Chinas share of global consumption/2005Cement
47Cotton 37Coal 30 Steel
26Source BusinessWeek/08.05
18
Savings, internal investment, external
investment gt 50 GDP
19
2.5M vs 7.1M40/40
20
Suddenly, China is the No. 3 consumer of
high-end goodsSource BusinessWeek, 0206.06
(from To Get Rich Is Glorious)
21
35/70
22
600,000350,00070,000
23
600,000/engineering degrees/2004/China350,000/en
gineering degrees/2004/India70,000/engineering
degrees/2004/U.S.A.Source Rising Above the
Gathering Storm/National Academies of
Science/Presidential report/October 2005
24
Beijing Rushes to Build World-class
Universities Headline, International Herald
Tribune, 1028.05Headline, same day China
Bank Becomes a Giant Worth 470 Billion
25
Re-imagine! Not Your Fathers World II.
26
Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.2004
27
There is no job that is Americas God-given
right anymore. Carly Fiorina/HP/January2004
28
No Limits?Short on Priests, U.S. Catholics
Outsource Prayer to Indian Clergy Headline,
New York Times/06.13.04 (Special intentions,
.90 for Indians, 5.00 for Americans)
29
December 9, 2005 Ogre to Slay? Outsource It to
Chinese (New York Times, page 1news section).
The factory Fuzhou, China. The workers
youngsters logging 12-hour shifts. Their
clientele youngsters from Seoul to San
Francisco. The work The Chinese youngsters
are playing the early levels of video games for
their affluent clients, who want to avoid the
pain and time associated with those annoying
first few levels.
30
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
31
Re-imagine! Not Your Fathers World III.
32
A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
33
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control? Or evolution
and learning? Do we think that progress
requires a central blueprint? Or do we see it as
a decentralized, evolutionary process? Do we
see mistakes as permanent disasters? Or the
correctable byproducts of experimentation? Do
we crave predictability? Or relish surprise?
These two poles, stasis and dynamism,
increasingly define our political, intellectual
and cultural landscape. Virginia Postrel, The
Future and Its Enemies
34
The Generals Story. (And Darwins)
35
If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
36
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
37
My Story. (And Charles.)
38
In Toms world, its always better to try a
swan dive and deliver a colossal belly flop than
to step timidly off the board while holding your
nose. Fast Company /October2003
39
Excellence! The Basics, 1982-2006
40
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
41
Hardball Are You Playing to Play or Playing to
Win? by George Stalk Rob Lachenauer/HBS
PressThe winners in business have always
played hardball. Unleash massive and
overwhelming force. Exploit anomalies.
Threaten your competitors profit sanctuaries.
Entice your competitor into retreat.Approximat
ely 640 Index entries Customer/s (service,
retention, loyalty), 4. People (employees,
motivation, morale, worker/s), 0. Innovation
(product development, research development, new
products), 0.
42
ExIn 1982-2002/Forbes.comEI 10,000 yields
140,050DJIA 10,000 yields 85,000Basket of
32 publicly traded stocks
43
  • Excellence2006 The Bedrock
    Bakers Dozen
  • 1. A Bias For Action Is Job One! (Construct a
    Discipline/Culture of EXECUTION!)
  • 2. DECENTRALIZATION! ACCOUNTABILITY! (Toms Top
    Two, 1965-2005.)
  • 3. Fail. Forward. Fast. (Reward Excellent
    Failures, Punish Mediocre Successes.)
  • 4. Metabolic Management Matters! (Hustle!
    Adapt! EAT CHANGE! Win the
  • O.O.D.A. Loop WarConfuse Your
    Competitors!)
  • 5. INNOVATE or Die. (Game-changers or Bust!
    Lead the Customer! Just Shout NO to Imitation!)
  • 6. A Damn Good Product. (Pursue Dramatic
    Difference.)
  • 7. A Damn Cool Product. (Design Rules!)
  • 8. Ride the Value Added Curve to the Sky! (Sell
    GamechangerSolutions Provide Scintillating
    Experiences Become a Dream Merchant Strive
    to Be a Lovemark.)
  • 9. Relentlessly Pursue the Big Two Markets.
    (WOMEN Buy Everything
  • BOOMERS GEEZERS Have All the Money!)
  • 10. Best Talent/Roster Wins! (HR Rules!
    Everyone a Leader! Women Lead Best!
  • Weird Matters Most! A Workplace to Brag
    About! Educate for Creativity!)
  • 11. Demanded Radical Technology Strategies!
    (Incrementalism Is for Wimps!)

44
Re-imagine! Speech Story Line in 100 Words or
Less Tom Peters/2006
45
  • Re-imagine! Speech Story Line
    in 100 Words or Less
  • Wildly altered context (technology, China-India,
  • global terrorism, etc)
  • Only answer adaptive skills and
    bold-breathtaking innovation
  • (top-line focus rather than cost-cutting
    focus)
  • 3. Race way, way up the value-added curve
    (implemented game-altering solutions rather
    than services, experiences rather than
    transactions, and much more)
  • 4. As part of value-added exercise, pursue Ripe
    Enormous new marketsWomen, Boomers Geezers
  • 5. Radical (!!!) use of IS-IT
  • A Roster of Weird Wondrous Entrepreneurial
    Talent engaged in Wow Projects
  • Metabolic Leadership (Passionate-Radical
    Leaders who instill a Discipline of Execution, a
    Quick Tempo-Adaptive Culture and
  • an appetite to Eat Radical Change for
    Breakfast)

  • (96 words by my count)

46
13. Do you understand Business Mantra 1 of the
00s DONT TRY TO COMPETE WITH WALMART ON PRICE
OR CHINA ON COST?
47
Point of View!/Point of Dramatic Difference!
48
Everybodys Story.
49
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
50
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
51
Thaksinomics (after Thaksin Shinawatra, PM)/
Bangkok Fashion City managed asset reflation
(add to brand value of Thai textiles by
demonstrating flair and design excellence)Sourc
e The Straits Times/2004
52
Better By Design A National StrategyNZ
Design Excellence
53
What an Evolving-Bizarre Story E.g., Life
Sciences
54
WE ARE BEGINNING TO ACQUIRE DIRECT AND
DELIBERATE CONTROL OVER THE EVOLUTION OF ALL
LIFE FORMS ON THE PLANET.Source Juan
Enriquez, As The Future Catches You
55
We face the biggest change in tens of thousands
of years in what it means to be human. In
just 20 years the boundary between fantasy and
reality will be rent asunder. (Rodney Brooks,
AIL/MIT) We are at an inflection point in
history. It is about the defining cultural,
social, and political issue of our age. It is
about human transformation. Source Radical
Evolution The Promise and Peril of Enhancing Our
Minds, Our Bodiesand What It Means to Be Human,
Joel Garreau
56
GRIN Genetics, Robotics (nanotech), Information,
NanotechSource Radical Evolution The Promise
and Peril of Enhancing Our Minds, Our Bodiesand
What It Means to Be Human, Joel Garreau
57
415-page doc, Department of Commerce/NSF
Converging Technologies for Increasing Human
Performance Source Radical Evolution The
Promise and Peril of Enhancing Our Minds, Our
Bodiesand What It Means to Be Human, Joel Garreau
58
Gregory Stock, Director, Program on Medicine,
Technology and Society, UCLA Redesigning Humans
Our Inevitable Genetic FutureSource Radical
Evolution The Promise and Peril of Enhancing Our
Minds, Our Bodiesand What It Means to Be Human,
Joel Garreau
59
I. NEW BUSINESS. NEW CONTEXT.
60
1. Re-imagine Permanence The Naked Emperor
Problem!
61
Pathetic!
62
Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
63
I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
64
Never Home Free Sears, Macys WalMart,
Target, CostCoBankAmerica, Citigroup
Fidelity, Commerce Bank, Carlyle Group, Lending
Tree, PayPalIBM/O MicrosoftIBM/N Infosys
Microsoft Google US Steel, Bethlehem
NucorHoward Johnsons McDonalds,
StarbucksGM, Ford Honda, Hyundai,
TataATT/Western Electric Avaya, CiscoRCA
Sony, Nintendo, Nokia, Samsung
65
Exit, Stage Right CEO departure rate,
1995-2004 300Source Booz Allen Hamilton
(per USA Today/06.13.05)
66
The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically. Peter Drucker
67
Lessons Learned. GE. Me.
68
4/40
69
De-cent-ral-iz-a-tion!
70
Ex-e-cu-tion!
71
Ac-count-a-bil-ity!
72
615A.M.
73
2. Re-imagine Innovate or Die!
74
No Option!
75
Innovateor Die!!
76
Brilliant!
77
Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting,
efficiency and deal-making. What mattered was the
continual improvement of operations, and that
mindset helped the 152 billion industrial and
finance behemoth become a marvel of earnings
consistency. Immelt hasnt turned his back on the
old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above
all, innovation. BW/2005
78
Resist!
79
Huff. Puff. Consolidate or else! This is it!
Macys, Kmart, Xerox, IBM, Microsoft,
TimeWarnerAOL
80
When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
81
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
82
Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the
same company six times and everybody makes money,
but Im not sure were actually innovating. Our
challenge is to take nanotechnology into the
future, to do personalized medicine Jeff
Immelt/Fast Company/07.05
83
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
84
Theres A and then theres A.
85
Winning the Merger Game Is Possible--Lots of
deals--Little deals--Friendly deals--Stay
close to core competence--Strategy is easy to
understandSource The Mega-merger Mouse
Trap/Wall Street Journal/02.17.2004/David
Harding Sam Rovit, Bain Co./re Comcast-Disney
86
Scale?
87
I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
88
The slumping giant needs to put more pep in its
funds. But size remains a handicap. Fortune
on Fidelity Magellan/1128.05 (Theres a
practical limitation to running a fund of that
size.Chris Traulsen, analyst, Morningstar)
89
Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
90
Spinoffs perform better than IPOs track record,
profits freed from the confines of the parent
more entrepreneurial, more nimble Jerry
Knight/Washington Post/08.05
91
Market Share, Anyone? 240 industries
Market-share leader is ROA leader 29 of the
time Source Donald V. Potter, Wall Street
Journal
92
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.Clayton Christensen,
The Innovators Dilemma
93
Focus!
94
Scales Limitations All Strategy Is Local True
competitive advantages are harder to find and
maintain than people realize. The odds are best
in tightly drawn markets, not big, sprawling
ones Title/Bruce Greenwald Judd
Kahn/HBR09.05
95
Hedge funds are leading a demand for companies
to sharpen their focus or break themselves up.
Headline, Financial Times, 1028.05
96
Sony and the iPod. Not.
97
Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
98
Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
99
This is not a mature category.
100
This is an undistinguished category.
101
When we did it right it was still pretty
ordinary. Barry Gibbons on Nightmare No. 1
102
The surplus society has a surplus of similar
companies, employing similar people, with
similar educational backgrounds, coming up with
similar ideas, producing similar things, with
similar prices and similar quality. Kjell
Nordström and Jonas Ridderstråle, Funky Business
103
Just Say No to Imitation!
104
To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/2003
105
Value innovation is about making the
competition irrelevant by creating uncontested
market space. We argue that beating the
competition within the confines of the existing
industry is not the way to create profitable
growth. Chan Kim Renée Mauborgne (INSEAD),
from Blue Ocean Strategy (The Times/London)
106
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, former CEO, Reuters

107
Immelt is now identifying technologies with GE
will systematically set out to build entirely new
industries StrategyBusiness, Fall 2005
108
This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Game Boy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to
follow the leader is this The leader is the
leader precisely because he did something
remarkable. And that remarkable thing is now
takenso its no longer remarkable when you
decide to do it. Seth Godin, Fast
Company/02.2003
109
Choose!
110
Duet Whirlpool washing machine to fabric
care system white goods a sea of
undifferentiated boxes 400 to 1,300 the
Ferrari of washing machines consumer They
are our little mechanical buddies. They have
personality. When they are running efficiently,
our lives are running efficiently. They are part
of my family. machine as aesthetic showpiece
laundry room to family studio / designer
laundry room (complements Sub-Zero refrigerator
and home-theater center)Source New York Times
Magazine/01.11.2004
111
1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
112
The mass market is dead. Consumers look for
either price or quality. The middle is
untenable. Walter Robb/COO/Whole
Foods/Investors Business Daily/06.20.05
113
Cheap vs Cool The OptionsCheap Nowhere to
go except more cheap! Problem the inevitable
next Dell/next /WalMart arrives with new biz
model meanwhile you drift toward more
complexity/ sluggishness, especially if undertake
sizeable mergers.Cool From Cool (with
reasonable costs) to Stay Cool/Better vs
Different. Continue/ Accelerate charge Up the
VA Ladder. Tactics (1) Up the experience
ladder, (2) Gamechanger Innovation. If not
Cool drifts/staggers toward untenable Middle.
114
Easy!
115
FLASH! Innovation is easy!
116
Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
117
CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
118
Suppliers There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
119
Axiom Never use a vendor who is not in the top
quartile (decile?) in their industry on RD
spending!Inspired by Hummingbird
120
COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid of
is some ignorant antagonist who has never had a
sword in his hand before he doesnt do the thing
he ought to do, and so the expert isnt prepared
for him he does the thing he ought not to do
and often it catches the expert out and ends him
on the spot. Mark Twain
121
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/06.01.2004 (commenting on
Nokia)
122
Kodak . FujiGM . FordFord . GMIBM .
Siemens, FujitsuSears KmartXerox . Kodak, IBM
123
Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributedWilliam Gibson
124
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
125
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.)
126
We become who we hang out with!
127
Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
128
Somewhere in your organization, groups of people
are already doing things differently and better.
To create lasting change, find these areas of
positive deviance and fan the flames. Richard
Tanner Pascale Jerry Sternin, Your Companys
Secret Change Agents, HBR
129
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)
130
The Ten Faces of Innovation/Tom
Kelley The Anthropologist. Master of human
behavior gets the user. The Experimenter.
Mr/Ms Fast Prototyper. The Cross-pollinator.
Explores odd connections. The Hurdler. Master
remover of B.S. roadblocks. The Collaborator.
Brings intriguing combinations of people
together. The Director. Brings out the creative
best from an odd mix of talents. The Experience
Architect. Turns products into
performances. The Set Designer. Creates
fabulous office environments that foster
constant innovation. The Caregiver. Anticipates
customer needs like a magician. The Storyteller.
Creates narratives that capture the spirit of the
group and its products/services/experiences.
131
Hard!
132
The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma? At the top!
Gary Hamel/Harvard Business Review
133
Bold!
134
No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas Negroponte
135
Just Say No I dont intend to be known as
the King of the Tinkerers. CEO, large
financial services company
136
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
137
Five Myths About Changing BehaviorCrisis is a
powerful impetus for changeChange is motivated
by fearThe facts will set us freeSmall,
gradual changes are always easier to make and
sustainWe cant change because our brains
become hardwired early in lifeSource Fast
Company/05.2005
138
Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown. Kevin Kelly,
New Rules for the New Economy
139
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
140
Speed/ Tempo!
141
Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
142
Strategy meetings held once or twice a year to
Strategy meetings needed several times a week
Source New York Times on Meg Whitman/eBay
143
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
144
Action!
145
TP/BW on BigCo Sin 1 too much talk, too little
do
146
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
147
I saw that leaders placed too much emphasis on
what some call high-level strategy, on
intellectualizing and philosophizing, and not
enough on implementation. People would agree on
a project or initiativeand then nothing would
come of it. Larry Bossidy Ram
Charan/Execution The Discipline of Getting
Things Done
148
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
149
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
150
The Leaders Seven Essential
BehaviorsKnow your people and your
businessInsist on realismSet clear goals and
prioritiesFollow throughReward the
doersExpand peoples capabilitiesKnow
yourself Source Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
151
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
152
Action8/VPMR/Peters on BossidyKnowledge/Extern
al Focus (Competitors/Customers)Realism/Truth-te
llingVision Projects (Must add up to Vision)
MilestonesCommitment/EnergyRapidReviewCons
equences (/-)
153
We have a strategic plan. Its called doing
things. Herb Kelleher
154
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think 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
155
Measurable!
156
Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/
Profundity/ Wow/ Gasp-worthy/
Game-changer Scale?
157
Immelt on Innovation breakthroughs Pull out
and fund ideas in each business that will
generate gt100M in revenue find best people to
lead (80 throughout GE)Source Fast
Company/07.05
158
Strategic Thrust OverlaySyscoMicrosoft
(Inet, Search)GE (6-Sigma, Workout, etc.)GSK
(7 CEDDs)Apple (Mac)Hyundai (et al.)
(Electronics, etc.)Different from Skunkworks
159
Personal!
160
Step 1 Buy a Mirror!
161
The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
162
Summary/The SE22 Origins of Sustainable
Entrepreneurship
163
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, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
164
HPs Big Duh!Decentralize (90B)Undo
MatrixAccountabilitySource HP Says
Goodbye To Drama/BW/09.05/re Mark Hurds first
5 months
165
DePuySpine/JJ70/350game-changers!Still
decentralized after all these years!
166
Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
167
SE22/Origins of Sustainable
Entrepreneurship 10. Keep decentralizingtireles
s in pursuit of wiping out Centralizing
Tendencies (JJ, 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, JJ, 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/Intrapreneurs (3M, Microsoft) 17.
Ferret out Talent anywhere and everywhere/No
limits approach to retaining top talent
(Nike, Virgin, GE, PepsiCo)
168
SE22/Origins of Sustainable
Entrepreneurship 18. Unmistakable Results
Accountability focus from the get-go to the
grave (GE, New York Yankees, PepsiCo) 19. Up or
Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios
in general) 20. 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-no
sed about a very few Core Values,
Open-minded about everything else (Virgin)
169
Productivity Could We Have It
All Wrong (vs China, etc)?Forget GM,
GEConsider Car dealerships, Fast-food outlets,
Tanning salons, Laundromats, Insurance agencies,
Body shops, Contractors Employing 80 of us
170
SummaryWallopWalMart16Or Why its so
unbelievably easy to beat a GIANT Company
171
The Small Guys Guide Wallop
WalMart16 Niche-aimed. (Never, ever all
things for all people, a mini-WalMart.) Never
attack the monsters head on! (Instead steal niche
business and lukewarm customers.) Dramatically
Different (La Difference ... within our
community, our industry regionally, etc is as
obvious as the end of ones nose!) (THIS IS WHERE
MOST MIDGETS COME UP SHORT.) Compete on
value/experience/intimacy, not price. (You aint
gonna beat the behemoths on cost-price in 9.99
out of 10 cases.) Emotional bond with Clients,
Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!
)
172
The Small Guys Guide Wallop
WalMart16 Hands-on, emotional leadership.
(We are a great cool intimate joyful
dramatically different team working to transform
our Clients lives via Consistently Incredible
Experiences!) A community star! (Sell
local-ness per se. Sell the hell out of it!) An
incredible experience, from the first to last
momentand then in the follow-up! (These guys
are cool! They get me! They love me!) DESIGN
DRIVEN! (Design is a premier weapon-in-pursuit-o
f-the sublime for small-ish enterprises,
including the professional services.)
173
The Small Guys Guide Wallop
WalMart16 Employer of choice. (A very cool,
well-paid place to work/learning and growth
experience in at least the short term marked by
notably progressive policies.) (THIS IS EMINENTLY
DO-ABLE!!) Sophisticated use of information
technology. (Small-ish is no excuse for small
aims/execution in IS/IT!) Web-power! (The Web
can make very small very big if the
product-service is super-cool and one
purposefully masters buzz/viral
marketing.) Innovative! (Must keep renewing and
expanding and revising and re-imagining the
promise to employees, the customer, the
community.)
174
The Small Guys Guide Wallop
WalMart16 Brand-Lovemark (Kevin Roberts)
Maniacs! (Branding is not just for big folks
with big budgets. And modest size is actually a
Big Advantage in becoming a local-regional-niche
lovemark.) Focus on women-as-clients. (Most
dont. How stupid.) Excellence! (A small player
per me has no right or reason to exist unless
they are in Relentless Pursuit of Excellence. One
earns the rightone damn day and client
experience at a time!to beat the Big Guys in
your chosen niche!)
175
II. NEW BUSINESS. NEW TECH.
176
3. Re-imagine Organizing I IS/IT as Disruptive
Tool!
177
We all live in Dell-WalMart-eBay-Google World!
178
WalMart (!) Katrina
179
the FedEx Economy headline/New York
Times/10.08.05
180
Any3 Anything/ Anywhere/ Anytime
181
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes
182
Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
183
The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organizational
Limits.
184
Power Tools for Power Solutions/ Strategies!
TP
185
5 F500 have CIO on Board While some of the
worlds most admired companiesTesco, WalMart
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
186
4. Re-imagine Organizing II What Organization?
187
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
188
TP In Nagano Revenue 10BFTE 1Maybe
189
Not out sourcingNot off shoringNot near
shoringNot in sourcingbut Best Sourcing
190
global innovation networks vs research in
large monolithic companies Source George
Colony/Forrester Research
191
In the 21st century well see a rise of
invention companies earning licensing fees.
Nathan Myhrvold, Forbes, 11.05
192
THE NEW INSTANT COMPANIES Cheap Design Tools.
Offshore Factories. Free Buzz Marketing. How
Todays Startups Are Going from Idea to 30
Million HitOvernight Business 2.0/June 2005
(Mary Janes)
193
The networked model is a conversation. Eric
SchmidtSergey Brin and Larry Page have
created a corporate organism that tackles most
big projects in small, tightly focused teams,
setting them up in an instant and breaking them
down weeks later without remorse. Forbes,
11.05
194
III. NEW BUSINESS. NEW VALUE PROPOSITION.
195
Re-imagineUp, Up, Up, Up the Value-added
Ladder.
196
6. Re-imagine Organizing IV The White-Collar
Tsunami and the Professional Service Firm (PSF)
Imperative.
197
Disintermediation is overrated. Those who
fear disintermediation should in fact be afraid
of irrelevancedisintermediation is just another
way of saying that youve become irrelevant to
your customers. John Battelle/Point/Advertising
Age/07.05
198
HR doesnt tend to hire a lot of independent
thinkers or people who stand up as moral
compasses. Garold Markle, Shell Offshore HR
Exec (FC/08.05)
199
Product Design Outsourcing Set For Big Rise
Headline/FT/06.05
200
Sarah Mom, what do you do?Mom
Im overhead.
201
Sarah Mom, what do you
do?Mom I manage a cost
center.
202
Answer Professional Service Firm/PSF!Departmen
t Head to Managing Partner, IS HR, RD,
etc. Inc.
203
DD21M
204
The PSF35 Thirty-Five Professional Service
Firm Marks of Excellence
205
The PSF35 The Work The
Legacy1. CRYSTAL CLEAR POINT OF VIEW (Every
Practice Group If you cant explain
your position in eight words or less, you dont
have a positionSeth Godin)2. DRAMATIC
DIFFERENCE (We are the only ones who do what
we doJerry Garcia)3. Stretch Is Routine
(Never bite off less than you can
chewanon.)4. Eye-Appetite for Game-changer
Projects (Excellence at Assembling Best
TeamFast) 5. Playful Clients (Adventurous
folks who unfailingly Aim to Change the
World)6. Small Uneconomic Clients with Big
Aims 7. Life Is Too Short to Work with Jerks
(Fire lousy clients)8. OBSESSED WITH LEGACY
(Practice Group and Individual Dent the
UniverseSteve Jobs)9. Fire-on-the-spot Anyone
Who Says, Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a
commodity 10. Consistent with 9 above DO
NOT SHY AWAY FROM THE WORD (IDEA)
RADICAL
206
Point of View!
207
The PSF35 The Client
Experience11. Always team with client full
partners in achieving memorable results
(Wanted Chimeras of Moonstruck
Minds!)12. We will seek assistance Anywhere to
assemble the Best-in- Planet Team for the
Project13. Client Team Members routinely declare
that working with us was the Peak
Experience of my Career14. The jobs not done
until implementation is 100.00 complete
(Those who dont get it must go)15.
IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT
HAS EXPERIENCED CULTURE CHANGE16.
IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT
TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT
(Teach a man to fish )17. The Final
Exam DID WE MAKE A DRAMATIC, LASTING,
GAME-CHANGING DIFFERENCE?
208
The PSF35 The People The
Leadership18. TALENT FANATICS (Best-Coolest
place to work) (PERIOD)19. EYE FOR THE PECULIAR
(Hiring Go beyond same old, same old)
20. Early Opportunities (vs. Wait your turn)
21. Up or Out (Based on Legacy/Mentoring as
much as Billings/Rainmaking)22. Slide
the Old Aside/Make Room for Youth (Find oldsters
new roles?)23. TALENT IS OBSESSED WITH
RENEWAL FROM DAY 1 TO DAY R R
Retirement24. Office/Practice Leaders Evaluated
Primarily on Mentoring-Team Building
Skills 25. A PROPRIETARY TALENT DEVELOPMENT
PROCESS (GE) 26. Team Leadership Skills Valued
Early27. Partner with B.I.W. Best In World
Outsiders as Needed and to Infuse Different
Views
209
The PSF35 The Firm The
Brand28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My
life is my messageGandhi) 29. Excellence
in EXECUTION 100.00 of the Time (No such
thing as a small sins/World Series Ring to
the Batboy!) 30. Drop everything/Swarm to
Support a Harried-On The Verge Team31.
SPEND AS AGGRESSIVELY ON RD AS A TECH FIRM OR
CIRQUE DU SOLEIL 32. A PROPRIETARY
METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old
EDS)33. Web (Technology) Obsession 34.
BRAND/LOVEMARK MANIACS (Organize Around a
Point of View Worth BROADCASTING You must
be the change you wish to see in the
worldGandhi) 35. PASSION! ENTHUSIASM! (Passion
Enthusiasm have as much a place at the
Head Table in a PSF as in a widgets
factory You cant behave in a calm, rational
manner. Youve got to be out there on the
lunatic fringeJack Welch)
210
Static/ImitativeIntegrity.Quality.Excellence.
Continuous Improvement.Superior Service (Exceeds
Expectations.)Completely Satisfactory
Transaction.Smooth Evolution.Market
Share.Dynamic/DifferentDramatic
Difference!Disruptive!Insanely Great!
(Quality)Life-(Industry-)changing
Experience!Game-changing!WOW!Surprise!Delight!
Breathtaking!Punctuated Equilibrium!Market
Creation!
211
PSF, damn it!
212
Game-changing Solutions Core MechanismPSF
(Professional Service Firm model)Wow
Projects (Different vs Better)Brand You
213
7. Re-imagine Businesss Fundamental Value
Proposition PSFs Unbound Fighting
Inevitable Commoditization via The Solutions
Imperative.
214
Up, Up, Up, Up the Value-added Ladder.
215
While everything may be better it is also
increasingly the same. Paul Goldberger on
retail, The Sameness of Things, The New York
Times
216
Companies have defined so much best practice
that they are now more or less identical.
Jesper Kunde, Unique Now ... or Never
217
And the M Stands for ?Gerstners IBM
Systems Integrator of choice./BW (Lou, help
us turn all this into that long-promised
revolution. ) IBM Global Services
(Integrated Systems Services Corp.) 55B
218
Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/07.19.
2004
219
Instant Infrastructure GE Becomes a General
Store for Developing Countries headline/
NYT/07.16.05
220
And MasterCard Advisors
221
Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them? Bob Nardelli, GE Power Systems
222
Bear In Mind Customer Satisfaction versus
Customer Success
223
The Value-added Ladder/Stuff n ThingsGoods
Raw Materials
224
The Value-added Ladder/Stuff TransactionsServ
icesGoods Raw Materials
225
The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions /Business
AdvantageServicesGoods Raw Materials
226
What Isnt Matter Is What Matters section
title, Branded Nation The Marketing of
Megachurch, College Inc., and Museumworld, James
Twitchell
227
Gas ... 1.75 per gallonLipton Iced Tea ..
9.52 per gallonOcean Spray ... 10.00Gatorade
.. 10.17Diet Snapple ... 10.32STP brake
fluid .. 33.60Pepto-Bismol .. 123.20Vicks
NyQuil ... 178.13Evian water . 21.19
(50B-200B)Source Branded Nation The
Marketing of Megachurch, College Inc.,
and Museumworld, James Twitchell (2004)
228
Fleet ManagerRolling Stock Cost Minimization
Officervs/orChief of Fleet Lifetime Value
Maximization Strategic Supply-chain Executive
Via drivers Customer Experience Director
229
IV. NEW BUSINESS. NEW GAME.
230
8. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
231
Experiences are as distinct from services as
services are from goods. Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
232
Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
233
The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
234
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
235
The Value-added Ladder/Memorable
ConnectionScintillating Experiences
Gamechanging Solutions/Business
AdvantageServicesGoods Raw Materials
236
Beyond the Transaction/ Satisfaction
MentalityGood hotel/ Happy guest/ Exceeded
Expectationsvs. Great Vacation/ Great
Conference/ Operation Personal Renewal/
Good to Be Home
237
Warren Goes Shopping
238
Q Why did you buy Jordans Furniture?A
Jordans is spectacular. Its all
showmanship.Source Warren Buffet
interview/Boston Sunday Globe/12.05.2004
239
Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, Unique Now ... or Never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
240
Extraction Goods Male dominanceServices
Experiences Female dominance
241
9. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
242
DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
243
The Marketing of Dreams (Dreamketing)Dreamket
ing Touching the clients dreams.Dreamketing
The art of telling stories
and entertaining.Dreamketing Promote the dream,
not the product.Dreamketing
Build the brand around
the main dream.Dreamketing Build the buzz,
the hype, the
cult.Source Gian Luigi Longinotti-Buitoni
244
The Value-added Ladder/EmotionDreams Come
TrueScintillating Experiences Gamechanging
Solutions/Business AdvantageServicesGoods Raw
Materials
245
The Ritz-Carlton experience enlivens the
senses, instills well-being, and fulfills even
the unexpressed wishes and needs of our guests.
from the Ritz-Carlton Credo
246
Furniture vs. DreamsWe do not sell furniture
at Domain. We sell dreams. This is accomplished
by addressing the half-formed needs in our
customers heads. By uncovering these needs, we,
in essence, fill in the blanks. We convert
needs into dreams. Sales are the inevitable
result. Judy George, Domain Home Fashions
247
Six Market Profiles1.
Adventures for Sale2. The Market for
Togetherness, Friendship and Love3. The
Market for Care4. The Who-Am-I Market5. The
Market for Peace of Mind6. The Market for
Convictions Rolf Jensen/The Dream Society
How the Coming Shift from Information to
Imagination Will Transform Your Business
248
Six Market Profiles1.
Adventures for Sale/IBM-UPS-GE2. The Market for
Togetherness, Friendship and
Love/IBM-UPS-GE3. The Market for
Care/IBM-UPS-GE4. The Who-Am-I
Market/IBM-UPS-GE5. The Market for Peace of
Mind/IBM-UPS-GE6. The Market for
Convictions/IBM-UPS-GE Rolf Jensen/The Dream
Society How the Coming Shift from
Information to Imagination Will Transform Your
Business
249
IBM, UPS, GE Dream Merchants!
250
The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. Future products
will have to appeal to our hearts, not to our
heads. Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
251
10. Re-imagine the Soul of New Value Design
Rules!
252
Designs place in the universe.
253
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
254
Design is treated like a religion at
BMW.Fortune
255
We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation.Steve Jobs
256
SAMSUNG DESIGN THE KOREAN GIANT MAKES SOME OF
THE COOLEST GADGETS ON EARTH. NOW ITS
REINVENTING ITSELF TO GET EVEN COOLER.
Cover/BusinessWeek/11.29.2004
257
Samsung By Design 5
IDEA in 2004 (Industrial Design Excellence
Awards)/1st Asian company to win more than top
European or American company 1993/LA Chmn
Why are our products lost, while Sonys are
out front? Design staff/470 (120 in last 12
months) design budget 20 to 30 p.a. Design
Centers in London, LA, SF, Tokyo Designers
often dictate to engineers, not vice versa
258
Design coda.
259
Having spent a century or more focused on other
goalssolving manufacturing problems, lowering
costs, making goods and services widely
available, increasing convenience, saving
energywe are increasingly engaged in making our
world special. More people in more aspects of
life are drawing pleasure and meaning from the
way their persons, places and things look and
feel. Whenever we have the chance, were adding
sensory, emotional appeal to ordinary function.
Virginia Postrel, The Substance of Style
How the Rise of Aesthetic Value Is Remaking
Commerce, Culture and Consciousness
260
With its carefully conceived mix of colors and
textures, aromas and music, Starbucks is more
indicative of our era than the iMac. It is to the
Age of Aesthetics what McDonalds was to the Age
of Convenience or Ford was to the Age of Mass
Productionthe touchstone success story, the
exemplar of all that is good and bad about the
aesthetic imperative. Every Starbucks store is
carefully designed to enhance the quality of
everything the customers see, touch, hear, smell
or taste, writes CEO Howard Schultz.
-Virginia Postrel, The Substance of Style How
the Rise of AestheticValue Is Remaking Commerce,
Culture and Consciousness
261
Marketing MagicThe Missing 95 The
Unconscious!E.g. ZMET/Zaltman Metaphor
Evaluation Technique
262
Design at Apple/ Starbucks/BMW is a state of
mind , not a program. Tom Kelley/IDEO
263
Better By DesignThe Design49Tom
Peters/Auckland/30March2005
264
Better By Design Toms
Design491. There are only 2 rules.2. Rule 1
You cant beat WalMart on price or China on
cost.3. Rule 2 See Rule 1.4. Econ Survival
Innovate and Sprint Up the Value-addedChain OR
DIE!5. DESIGN (WRIT LARGE) (DESIGN
MINDFULNESS) IS THE SOUL/ENGINE OF THE NEW
VALUE-ADDED IMPERATIVE.6. Design as Soul-Core
Competence 1 is a cultural imperative, not a
programmatic or process orthrow at it
issue!7. CDEs (Culturally Design-driven
Enterprises) use Design-Experiences-Dream
Merchantry-Lovemarks as the LeadDog(s) in the
Olympian Innovation-Strategy-ValueProposition
Struggle. 8. Dream Merchant makes as much
sense for IBM or GE or UPS as for Starbucks!
265
Better By Design Toms
Design499. At CDEs, Design is the Heart of the
Emotional Branding Process.10. CDEs
wholeheartedly embrace ideas such as mystery,
surprise, sensuality.11. CDEs love WOW! and
B.H.A.G. and Insanely Greatand Gasp-worthy
and Passion and Love! (Axiom Extreme
language breeds extreme products and
services.)12. Staff at CDEs laugh and cry a lot!
(Axiom Calm enterprise Crappy
enterprise.)13. CDEs love strange and
weird.14. CDEs scour the earth for strange
and weird people. (CDEs know FREAKS RULE!)15.
CDEs are extremists. (KR Avoid
moderation.)16. CDEs know that EXCELLENCE IS
NOT GOOD ENOUGH!(We must use non-linear
measures!)
266
Better By Design Toms
Design4917. CDEs seek Discontinuities. (JG We
dont want to be the best of the best, we want to
be the only ones who do what we do.) 18. CDEs
are respectful of their customers, but not
slaves to their customers! CDEs LEAD THEIR
CUSTOMERS! (Axioms Listening to customers is
over-rated! Focus groups suck!)19. But Lead
customers are an entirely differ
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