Tom Peters

1
Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgePearson/New York/05.10.2004
2
Slides at tompeters.com
3
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
4
Montgomery Ward Kmart Sears Macys DEC
Wang Compaq Chase Manhattan American Motors
Chrysler U. S. Steel Bethlehem Steel
ATT Soviet Union
5
WalMart Dell Microsoft U.S.A.
6
All Bets Are Off.
7
14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
8
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
9
lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 10 years
for paradigm shift 21st century 1000X tech
change than 20th century (the Singularity, a
merger between humans and computers that is so
rapid and profound it represents a rupture in the
fabric of human history)Ray Kurzweil
10
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
11
The world has arrived at a rare strategic
inflection point where nearly half its
populationliving in China, India and Russiahave
been integrated into the global market economy,
many of them highly educated workers, who can do
just about any job in the world. Were talking
about three billion people. Craig
Barrett/Intel/01.08.2004
12
This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
13
All Bets Are Off!
14
We are in a brawl with no rules.Paul Allaire
15
S.A.V.
16
Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the Bullshit that Marks Normal
Industry Behavior.5. A Maniacal Bias for
Execution and Utter Contempt for Those Who
Dont Get It.6. Speed Demons.7. Up or Out.
(Meritocracy Is Thy Name. Sycophancy Is Thy
Scourge.)8. Passionate Hatred of Bureaucracy.9.
Willingness to Lead the Customer and Take the
Heat Associated Therewith. (Mantra Satan
Invented Focus Groups to Derail True
Believers.)10. Reward Excellent Failures.
Punish Mediocre Successes. 11. Courage to Stand
Alone on Ones Record of Accomplishment
Against All the Forces of Conventional
Wisdom.12. A Crystal Clear Understanding of
Brand Power.
17
2. The Destruction Imperative.
18
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
19
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
20
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
21
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
22
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
23
2A. Yo, Jim Collins . OrThe Case for
Technicolor!
24
I. Good to GreatII. Quiet, Humble Leaders
25
Good to Great Fannie Mae Kroger Walgreens
Philip Morris Pitney Bowes Abbott
Kimberly-Clark Wells Fargo
26
Great Companies SET THE AGENDA. (Period.)
27
AGENDA SETTERS Set the Table/ Pioneers/
Questors/ AdventurersUS Steel Ford Macys
Sears Litton Industries ITT The Gap
Limited WalMart PG 3M Intel IBM
Apple Nokia Cisco Dell MCI Sun Oracle
Microsoft Enron Schwab GE Southwest
Laker People Express Ogilvy Chiat/Day
Virgin eBay Amazon Sony BMW CNN
28
I. Good to GreatII. Quiet, Humble Leaders
29
Huh?Humility The Surprise Factor in
Leadership bosses with Gung-ho Qualities and
Charisma May Be Out of Fashion Headline/FT/re
JCollins/10.03 (TP scribble Nelson,
Wellington, Montgomery, Disraeli, Churchill,
Thatcher)
30
WellingtonNelsonDisraeliChurchillMontgomeryTh
atcher
31
Humble Pastels?T. Paine/P. Henry/A.
Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S.
Grant/W.T. ShermanTR/FDR/LBJ/RR/JFKPatton/Monty/
HalseyM.L. King/C. de Gaulle/M. Gandhi/W.
ChurchillPicasso/Mozart/Copernicus/Newton/Einstei
n/Djarassi/Watson H. Clinton/G. Steinem/I.
Gandhi/G. Meir/M. Thatcher E. Shockley/A.
Grove/J. Welch/L. Gerstner/L. Ellison/B.
Gates/S. Jobs/S. McNealy/T. Turner/R. Murdoch/W.
Wriston A. Carnegie/J.P. Morgan/H. Ford/S.
Honda/J.D. Rockefeller/T.A. Edison
Rummy/Norm/Henry/Wolfie Elizabeth Cady
Stanton/Susan B. Anthony/Martha Cary
Thomas/Carrie Chapman Catt/Alice Paul/Anna
Elizabeth Dickinson/Arabella Babb
Mansfield/Margaret Sanger
32
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
33
In Italy for 30 years under the Borgias they had
warfare, terror, murder, bloodshedand produced
Michelangelo, da Vinci and the Renaissance. In
Switzerland they had brotherly love, 500 years of
democracy and peace, and what did they
producethe cuckoo clock.Orson Welles, as
Harry Lime, in The Third Man
34
3. The Heart of the Value Added Revolution The
Solutions Imperative.
35
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
36
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
37
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
38
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
39
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
40
Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
41
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
42
Keep In Mind Customer Satisfaction versus
Customer Success
43
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves
represent.ecompany.com/06.01 (E.g., UPS
Logistics manages the logistics of 4.5M Ford
vehicles, from 21 mfg. sites to 6,000 NA dealers)
44
Omnicom 60 (of 7B) from marketing services
45
And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
46
4. A World of Scintillating Experiences.
47
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
48
The Experience LadderExperiences
ServicesGoods Raw Materials
49
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
50
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
51
WHAT CAN BROWN DO FOR YOU?
52
5. Boss Job One The Talent Obsession.
53
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
54
Brand Talent.
55
Model 25/8/53 Sports Franchise GM48 500M
56
In most companies, the Talent Review Process is
a farce. At GE, Jack Welch and his two top HR
people visit each division for a day. They review
the top 20 to 50 people by name. They talk about
Talent Pool strengthening issues. The Talent
Review Process is a contact sport at GE it has
the intensity and the importance of the budget
process at most companies.Ed Michaels
57
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
58
PARCs Bob Taylor Connoisseur of Talent
59
Les Wexner From sweaters to people!
60
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
61
Talent (Not) on His MindNorman Pearlstine,
Editor-in-Chief, Time Inc., asked a magazines
managing editor to name 10 people outside Time
that the magazine should pursue He said, I
cant think of any. Source New York
Times/05.12.2003
62
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
63
6. Leading in Totally Screwed-Up Times The
Passion Imperative.
64
33 Division Titles. 26 League Pennants. 14 World
Series Earl Weaver0. Tom Kelly0. Jim
Leyland0. Walter Alston1AB. Tony LaRussa132
games, 6 seasons. Tommy LasordaP, 26 games.
Sparky Anderson1 season.
65
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
66
I dont know.
67
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.
68
The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
69
If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
70
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
71
Im not comfortable unless Im
uncomfortable.Jay Chiat
72
He wasnt one who went along with his peers
SPC Joe Darbys history teacher
73
the wildest chimera of a moonstruck mind The
Federalist on Jeffersons Louisiana Purchase