Tom Peters

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Tom Peters Re-Imagine!Leading Change,
Driving Innovation,Achieving ExcellenceAERCE/Ma
drid/21March2006
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Slides at tompeters.com
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Re-imagine! Not Your Fathers World I.
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THREE BILLION NEW CAPITALISTS Clyde Prestowitz
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Re-imagine! Not Your Fathers World II.
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Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.2004
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There is no job that is Americas God-given
right anymore. Carly Fiorina/HP/January2004
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Sydney Morning Herald/ 25October2005Qantas.Lay
off thousands of mechanics.Maintenance to China.
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There is no job that is Australias God-given
right anymore. Tom Peters/10.26.2005
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Re-imagine! Not Your Fathers World III.
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A focus on cost-cutting and efficiency has
helped many organizations survive, 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
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The commitment to speede.g., Nissan 10 months
is being driven by a new innovation imperative.
Competition is more intense than ever because of
the rise of the Asian powerhouses and the spread
of disruptive new Internet technologies and
business models. Companies realize that all of
their attention to efficiency in the past
half-decade was finebut its not nearly enough.
If they are to thrive in this hyper-competitive
environment, they must innovate more and faster.
BW cover story, Speed Demons, 27March2006
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The Generals Story. (And Darwins)
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If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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Everybodys Story.
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
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Thaksinomics (after Thaksin Shinawatra, PM)/
Bangkok Fashion City managed asset reflation
(add to brand value of Thai textiles by
demonstrating flair and design
excellence)Source The Straits Times/2004
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Better By Design A National StrategyNZ
Design Excellence
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New ZealandThailandSpainPortugalIrelandSingap
ore Taiwan PhilippinesUAEChile
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MADE IN TAIWAN From Cheap Manufacturing to
Chic Branding Headline/Advertising Age/06.05
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Taiwan, Your Partner in InnoValuePoster/Buchares
t/03.06
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1. Re-imagine Permanence The Emperor Has No
Clothes!
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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
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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
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Lessons Learned. GE. Me.
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4/40
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De-cent-ral-iz-a-tion!
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Ex-e-cu-tion!
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Ac-count-a-bil-ity!
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615A.M.
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2. Re-imagine Innovateor Die!!
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No Option!
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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
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Resist!
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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
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Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
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Companies have defined so much best practice
that they are now more or less identical.
Jesper Kunde, Unique Now ... or Never
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Immelt is now identifying technologies with
which GE will systematically set out to build
entirely new industries StrategyBusiness, Fall
2005
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SummaryWallopWalMart16Or Why its so
unbelievably easy to beat a GIANT Company
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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!!
)
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Focus!
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Focus 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
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Big WinnersLousy industry Specialty (No
competition) Smaller than competitors4
Traits Sweet spot Agility Discipline
FOCUSSource Alfred Marcus, Big Winners and Big
Losers The 4 Secrets of Long-term Business and
Failure
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We will not, I repeat not, pretend to be all
things to all people. CEO, Investec (03.06)
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Easy!
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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
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We become who we hang out with!
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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
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Hard!
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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
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BOLD!
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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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
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Action !
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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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
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Speed/ Tempo!
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We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
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Measurable!
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/
Profundity/ Wow/ Gaspworthy/
Game-changer Scale?
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Personal!
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Step 1 Buy a Mirror!
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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3. Re-imagine Organizing I IS/IT as Disruptive
Tool!
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We all live in Dell-WalMart-eBay-Google World!
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Power Tools for Power Solutions/ Strategies!
TP
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4. Re-imagine Businesss Fundamental Value
Proposition Fighting Inevitable
Commoditization via The Gamechanging
Solutions Imperative.
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Up, Up, Up, Up the Value-added Ladder.
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55B
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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
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/2004
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Huge Customer Satisfaction versus Customer
Success
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The Value-added Ladder/Stuff n ThingsGoods
Raw Materials
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The Value-added Ladder/Stuff TransactionsServ
icesGoods Raw Materials
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The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions/Business
AdvantageServicesGoods Raw Materials
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5. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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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
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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
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The Value-added Ladder/Memorable
ConnectionScintillating Experiences
Gamechanging Solutions/Business
AdvantageServicesGoods Raw Materials
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Beyond the Transaction/ Satisfaction
MentalityGood hotel/ Happy guest/ Exceeded
Expectationsvs. Great Vacation/ Great
Conference/ Operation Personal Renewal
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One companys answer CXOChief eXperience
Officer
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6. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
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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
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The Value-added Ladder/EmotionDreams Come
TrueScintillating Experiences Gamechanging
Solutions/Business AdvantageServicesGoods Raw
Materials
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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
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IBM, UPS Dream Merchants!
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CDMChief Dream Merchant
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7. Re-imagine the Soul of New Value Design
Rules!
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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
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Design is treated like a religion at
BMW.Fortune
95
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
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Design at Apple/ Starbucks/BMW is a state of
mind , not a program. Tom Kelley/IDEO
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8. Re-imagine the Fundamental Selling
Proposition It all adds up to (THE
BRAND.) (THE STORY.)(THE DREAM.)The Love.
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Brands have run out of juice. Theyre dead.
Kevin Roberts/Saatchi Saatchi
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Kevin Roberts Lovemarks!
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Tattoo Brand What of users would tattoo the
brand name on their body?
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Top 10 Tattoo BrandsHarley . 18.9Disney
.... 14.8Coke . 7.7Google .... 6.6Pepsi ....
6.1Rolex . 5.6Nike . 4.6Adidas .
3.1Absolut . 2.6Nintendo . 1.5BRANDsense
Build Powerful Brands through Touch, Taste,
Smell, Sight, and Sound, Martin Lindstrom
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Up, Up, Up, Up the Value-added Ladder.
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Lovemark Dreams Come True Awesome
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
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CL OChief Lovemark Officer
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CROChief Revenue Officer
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9. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
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Women are the majority market Fara
Warner/The Power of the Purse
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 (66
home computers) Cars 68 (90)All consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
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The Perfect Answer
Jill and Jack buy slacks in black
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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Women dont buy brands. They join
them.EVEolution
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1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
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10. Womens Market Opportunity No. 1.
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Why?
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2005
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Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
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10. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats18-44 -155 21(55-64
47)
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B78/60
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
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11. Re-imagine the Individual I Welcome to a
Brand You World Distinct or Extinct
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Globalization1.0 Countries globalizing
(1492-1800)Globalization2.0 Companies
globalizing (1800-2000)Globalization3.0
(2000) Individuals collaborating competing
globallySource Tom Friedman/The World Is Flat
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If there is nothing very special about your
work, no matter how hard you apply yourself you
wont get noticed, and that increasingly means
you wont get paid much either. Michael
Goldhaber, Wired
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You are the storyteller of your own life, and
you can create your own legend or not. Isabel
Allende
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The Rule of PositioningIf you cant describe
your position in eight words or less, you dont
have a position. Jay Levinson and Seth Godin,
Get What You Deserve!
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Distinct or Extinct
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12. Re-imagine Excellence I The Talent Obsession.
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The Creative Age is a wide-open game.
Richard Florida, The Rise of the Creative Class
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Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
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Brand Talent.
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THE FUTURE BELONGS TO SMALL POPULATIONS
WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE
THE TEMPTATION OFOR DO NOT HAVE THE OPTION
OFEXPLOITING NATURAL RESOURCES.Source Juan
Enriquez/As the Future Catches You
138
The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others. Warren Bennis Patricia Ward
Biederman, Organizing Genius
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Hire very good people!
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From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent
141
We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years. Ed
Michaels, War for Talent
142
The Cracked Ones Let in the LightOur business
needs a massive transfusion of talent, and
talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.
David Ogilvy
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A review of Jack and Suzy Welchs Winning claims
there are but two key differentiators that set GE
culture apart from the herd First Separating
financial forecasting and performance
measurement. Performance measurement based, as it
usually is, on budgeting leads to an epidemic of
gaming the system. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance ie its
about how you actually do in the context of what
happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Second Putting HR on a par with finance and
marketing.
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DD21M
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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)
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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No Excuses!
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Wegmans 1100 Best Companies to Work for84
Grocery stores are all alike46 additional
spend if customers have an emotional connection
to a grocery store rather than are satisfied
(Gallup)Going to Wegmans is not just shopping,
its an event. Christopher Hoyt, grocery
consultantYou cannot separate their strategy
as a retailer from their strategy as an
employer. Darrell Rigby, Bain Co.
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Marcus Rules Marcus Buckingham The one Thing
You Need to Know
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No matter what the situation, the great
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
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The key difference between checkers and chess
is that in checkers the pieces all move the same
way, whereas in chess all the pieces move
differently. Discover what is unique about each
person and capitalize on it. Marcus
Buckingham, The One Thing You Need to Know
152
The mediocre manager believes that most things
are learnable and therefore that the essence of
management is to identify ach persons weaker
areas and eradicate them. The great manager
believes the opposite. He believes that the most
influential qualities of a person are innate and
therefore that the essence of management is to
deploy these innate qualities as effectively as
possible and so drive performance. Marcus
Buckingham, The One Thing You Need to Know
153
13. Re-imagine Excellence II Meet the New Boss
Women Rule!
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
155
Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversity. Judy B. Rosener, Americas
Competitive Secret Women Managers
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For all the myths of equality that Europe tells
itself, the Continent is by and large a woeful
place for a woman who aspires to lead.
Newsweek/0227.06
157
To be a leader in consumer products, its
critical to have leaders who represent the
population we serve. Steve Reinemund/PepsiCo
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14. Re-imagine Excellence III New Education
for a New World.
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My wife and I went to a kindergarten
parent-teacher conference and were informed that
our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in
art. We were shocked. How could any childlet
alone our childreceive a poor grade in art at
such a young age? His teacher informed us that
he had refused to color within the lines, which
was a state requirement for demonstrating
grade-level motor skills. Jordan Ayan,
AHA!
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15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer
2002Research by Thomas Lockwood
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15. Re-imagine Leadership for Totally Screwed-Up
Times The Passion Imperative.
162
Create a Cause!
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Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max De Pree,
Herman Miller
164
People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
165
Ah, kids What is your vision for the future?
What have you accomplished since your first
book? Close your eyes and imagine me
immediately doing something about what youve
just said. What would it be? Do you feel you
have an obligation to Make the world a better
place?
166
Find em!
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Leaders do people. Period. Anon.
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Respect em!
169

• It was much later that I realized Dads secret.
  He gained respect by giving it. He talked and
  listened to the fourth-grade kids in Spring
  Valley who shined shoes the same way he talked
  and listened to a bishop or a college president.
  He was seriously interested
• in who you were
• and what you had
• to say. Sara Lawrence-Lightfoot, Respect

170
Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
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Make It a Grand Adventure!
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Quests!
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Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
174
Yes!!!!!!!!!!!!!!!!!free to do his or her
absolute best allow its members to discover
their greatness.
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
176
We are a life Success Companyfounder,
RE/MAX
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Trumpet an Exhilarating Story!
178
Best Story Wins!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner/Leading Minds An
Anatomy of Leadership
179
Live Your Story!
180
MBWAHS/25
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You must be the change you wish to see in the
world.Gandhi
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You Your calendarCalendars NEVER lie!!
183
Im always stopping by our stores at least 25
a week. Im also in other places Home Depot,
Whole Foods, Crate Barrel. I try to be a
sponge to pick up as much as I can. Howard
SchultzSource Fortune, Secrets of
Greatness, 0320.2006
184
Try It!
185
Sams Secret 1!
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Insist on Speed!
187
If things seem under control, youre just not
going fast enough. Mario Andretti
188
Demand Action!
189
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
190
Cut the Nonsense!
191
GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
192
Dispense Enthusiasm!
193
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
194
Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
195
A man without a smiling face must not open a
shop. Chinese ProverbCourtesy Tom Morris,
The Art of Achievement
196
Engaged.
197
Tell me, what is it you plan to do with your one
wild and precious life? Mary Oliver
198
RadiatePassion!
199
Charles Handy on the Alchemists Passion was
what drove these people, passion for their
product, passion for their cause. If you care
enough, you will find out what you need to know.
Or you will experiment and not worry if the
experiment goes wrong. Passion as the secret to
learning is an odd secret to propose, but I
believe that it works at all levels and at all
ages. Sadly, passion is not a word often heard
in the elephant organizations, nor in schools,
where it can seem disruptive.
200
Keep It Simple!
201
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
202
JWs 4EsEnergyEnthusiasmEdgeExecutionSp
eed, RFA, Competitive
203
Avoid Moderation!
204
Kevin Roberts Credo1.
Ready. Fire! Aim.2. If it aint broke ... Break
it!3. Hire crazies.4. Ask dumb questions.5.
Pursue failure.6. Lead, follow ... or get out of
the way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. Avoid moderation!
205
Avoid Moderation!
206
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Free the Lunatic Within!
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch