Tom Peters

1
Tom Peters Seminar Y2KLeading
Minds/IIRIstanbul01 June 2000
2
BiasesAmericanCalifornianSilicon Valley
Resident 29 years
3
An Age of Passion1 Year 1.5
WalMarts27.03.99 167B27.03.00
555BP.S. WalMart 8 in 2000
4
Pentium III 800MHz 42,893.00/Hermes Scarf
1,964.29Saving Private Ryan on DVD
874.75Mercedes-Benz 18.98Hot-rolled steel
0.19Source Fortune (20.03.00)
5
Researchers say they have found a way to mate
human cells with circuitry in a bionic chip
The tiny device smaller and thinner than a
strand of hair combines a healthy human cell
with an electronic circuitry chip.AP/AOL/02-00
6
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
7
Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
8
It means nothing less than the total reinvention
of this company.
9
Jacques New New FordFord MSN CarPointFord
Yahoo!Ford OracleFord HP/MCIWorldcomEtc.Et
c.
10
Theres going to be a fundamental change in
the global economy unlike anything we have had
since the cavemen began bartering.Arnold
Baker, Chief Economist, Sandia National
Laboratories
11
We are in a brawl with no rules.Paul Allaire
12
Forget gt LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
13
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Seminar Y2K Brand EverythingDistinct or
Extinct!
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Q What do you do when you are a big, dopey
company and out of ideas?
16
A You merge with another big, dopey company
that doesnt have any ideas either.
17
R An incredibly big, incredibly dopey company
going nowhere.
18
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
19
Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product.
John Chambers, Cisco
20
Steve Ross had a wonderful philosophy People
get fired for not making mistakes.Bob Pittman
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R DIntels venture fund 275 investments,
8BSource Fast Company , eCompany
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Net World!Act now. Analyze later.Avram
Miller
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C.E.O. to C.D.O.
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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Brand InsideBrand Org!
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108 X 5vs. 8 X 1 540 vs. 8
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And Now the Equivalent White Collar
Revolution!
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The Pincer 5Destructive entrepreneurs/ Global
CompetitionWhite Collar RobotsTHE INTERNET!
E.g. GM Ford DaimlerChryslerGlobal
Outsourcing E.g. India, MexicoSpeed!!
29
RR on Assetless J.B. Sara LeeThe most
profitable businesses in the future will act as
knowledge brokers, linking insights into whats
available with insights into the customers
individual needs and preferences.
30
The -!! in the middleJim Clark on
Healtheon/WebMD twixt docs, patients,
insurers and providers 275B of 400B in waste
source Michael Lewis, The New New Thing
31
Incidentally CEO Jeff ArnoldAge 30First
Start-up Age 24
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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Buzzsaw.comBuilders, Owners, Architects,
Contractors, Suppliers4T industry5,300
commercial bldg. projects specs on-line 70 per
day
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12/31/00 (per Newsweek 04.24.00)75 of U.S.
universities will have on-line offerings/ 5.8
million studentsUnbundling profs jobs (star
lecturer, facilitator)/ Repackage content as
multi-media eventAAUP is angry! (Good
news!)355 studies Equal results! (and one
teachers union study that disagrees!)
35
These are L.A.D.T.I.R.S.Life-and-death-to
tal-industry-reinvention-struggles
36
Brand InsideBrand Work!
37
So what will be the Basic Building Block of the
New Org Unit?
38
Why are there no books on how to create a Cool,
Rocking, WOW-producing Finance Department?
39
support function / cost center /
bureaucratic dragor Rock Stars of the
Age of Talent
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PSF 1.0 Department Head to Managing
Partner, HR IS, etc. Inc.
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PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
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The 7Ps of PSF 1.0Projects!Passion!Provocati
on!Partnership!Politics!Professionalism!Perfor
mance!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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But Does It Matter ????On time, on budget
who cares? anon. seminar participant (4/99)
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You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
47
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
49
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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Epitaph from Hell Joe T. Jones 1942 - 2000
HE WOULDA DONE SOME REALLY COOL STUFF BUT
HIS BOSS WOULDNT LET HIM!
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Characteristics of the Also Rans

• minimize risk
• respect the chain of command
• support the boss
• make budget

Source Fortune on most admired
global corporations (26/10/98)
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1) Turn ignition key.2) Shift into drive.3)
Press foot firmly on the throat of
mediocrity.Source Mercedes ad
53
Brand InsideBrand You!
54
The fundamental unit of the new economy is not
the corporation, but the individual. Tasks arent
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.
Thomas Malone and Robert Laubacher

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DISTINCT OR EXTINCT!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
56
Personal Brand Equity Evaluation

• I am known for 2 to 3 things next year at this
  time Ill also be known for 1 more thing.
• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• Additions to my Rolodex in the last 90 days
  include
• My resume is discernibly different from last
  years at this time

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Icon Woman

• Totally turned on by her work!
• It matters / a WOW Project!
• It is COOL!
• It is BEAUTIFUL!
• She is in your face!
• She is an adventurer!
• She is CEO of her own life!

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Icon Woman

• - She is at least a little funky!
• Her curiosity is insatiable!
• She thinks screwups are as normal as
  breathing!
• She hangs out with some seriously rad Dudes!
• She is not God. She is not Bionic Woman. She is
  determined to make a damned difference!

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Well-behaved women rarely make history.Anita
Borg, Institute for Women and Technology
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Icon Woman Meets the Web

• submits resume on the Web
• recruited on the Web
• hired on the Web
• trained on the Web
• creates and conducts projects with virtual teams
  on the Web
• manages project and client follow-up on the Web
• manages career/reputation-building on the Web

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R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
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Seminar Y2K/Brand InsideMessage Distinct or
Extinct!
63
Brand InsideBrand Talent!
64
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
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Issue Y2KThe Great War for Talent!
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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Talent war, Web-speed!Every resume or
employment question that comes to Lucent via the
Web gets answered in 30 minutes or less.
24/7.Red Herring 06.00, on Lucent Director
of Recruitment Jim Baughman
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Our 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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What Do We Do With Him?He grew his hair long,
played guitar in a rock band, chased girls, got
into trouble. At age 17 he was flogged by his
house master, who described him as the most
difficult boy Ive ever had to deal with.
70
Elect Him Prime Minister!Tony Blair
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Conformity is the enemy of freedom and the
jailer of growth.J.F.K.
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Talent Brand
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Brand OutsideContextNo Commodities!
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Quality Not Enough!Quality as defined by few
defects is becoming the price of entry for
automotive marketers rather than a competitive
advantage.J.D. Power
75
Quality Not Enough!While everything may be
better, it is also increasingly the same.Paul
Goldberger on retail, The Sameness of Things,
The New York Times
76
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
77
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 Nordstrom and
Jonas Ridderstrale, Funky Business
78
The 10X/10X Phenomenon10 Times Better/10
Times Less Different
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When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
80
TPs Mega-marketing-trendsRapidly aging
population!Health fanaticism!Environmental
concerns!Freaky independence!Women rule!
81
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
82
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
83
Brand OutsideStrategy 1Lead the Customer!
84
The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
85
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
86
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
87
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! (and the
elderly)S5 Design Rules! (too)S6 Its the
Experience!Net Glorious Age of the BRAND!
88
Brand OutsideStrategy 2Use E-Commerce to
Re-invent the Business!
89
????35,000,000.
90
Dells Web sales daily
91
2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
92
Web World/05.001B pages/7B hotlinks/1M per
dayFor the first time in history, people
everywhere have access to the thoughts, products
and writings of a large and growing percentage
of the earths population.The New
Yorker/29.05.00
93
Tomorrow Today Cisco!90 of 14.4BSave 500M
(service and tech support)C.Sat e gtgt C.Sat
HCustomer Engineer Chat Rooms (1B?)
94
B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 26.01.00)
T
95
GM/Ford/DaimlerChrysler (02-27)Covisint240B
(500B)I.P.O.
96
B2B No.1CarStation (auto-body shops),
ChemConnect (chemicals), Collabria (commercial
printing), DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical supplies),
Portera (knowledge workers), Etc., Etc., Etc.,
Etc.
97
Goal?Drive profits to zero!Remember AMR
and dynamic pricing.
98
Welcome to D.I.Y. Nation!Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service goes
up because customers are conducting it
themselves. Ray Lane, Oracle
99
Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
100
The Supply Side The Age of the ChoiceboardThe
War of the ChoiceboardsSource Adrian
Slywotzky, HBR 1-2/2000 lt1
101
In the network economy, the Website becomes the
companys primary interface to the customer. The
user interface becomes the marketing materials,
store front, store interior, sales staff and
post-sales support all rolled into one.Jakob
Nielsen, Designing Web Usability
102
Even if executives of established businesses
grasp the impact of new technologies they still
face a massive competitive disadvantage precisely
because they are incumbents. They do complex
financial calculations and get bogged down in
internal political debates. Insurgents have no
such inhibitions. Philip Evans Thomas
Wurster, Blown to Bits
103

• if they set up a completely independent
  organization and let that organization attack the
  parent.
• Clayton Christensen, The
  Innovators Dilemma

104
Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

105
There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
106
Banking is necessary. Banks are not.Dick
Kovacevich, Norwest/ Wells
107
No Room for Competent SortsBeer
WholesalersPersonal Trainers FitLinxxFinancial
PlannersCar Dealers LVA, MVA vs.
HVA Web-enhanced
108
Message The distributor is dead. Long live the
value-added, knowledge-intensive business
partner.
109
Web Strategy GE Power SystemsLaunch and
Learn(4 sites in 30 days)
110
Its better to be first with less than last with
more. Success on the Web isnt just about time
to market, its also about time to learning.
Jeff Levy, eHatchery
111
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
112
Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
113
Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
114
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
115
Brand OutsideStrategy 3Think Global!
116
Rule 1 Theres no such thing as too small to
be global.
117
Rule 2If it is truly good then its good
enough for THE WORLD.
118
Rule 3When?Now.
119
Rule 4Hang out vigorously!
120
Rule 5 Latch onto a modest-sized partner
who loves/ gets you!
121
Rule 6Tailor!! But dont give away the store.
122
Rule 7Quality Guru Phil Crosby Do it right
the first time! notwithstanding, youll not
likely get it right the first time!
123
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
124
Brand OutsideStrategy 4Women Rule!
125
?????????Home Furnishings 94Vacations
92Houses 91Bank Account 89Health Care
75Etc.
126
3.3T 1.5T 4.8T Larger than Japan!
127
Most Under-reported story!9M/28M(1 of 4)/3.6T
gt Germany 400K in 72 132 since
92Sources NFWBO, Cognetics, Business Wire
(06.03.00)
128
Women 49 of Web users 6 of 10 new users 83
of wired women are primary decision makers for
family healthcare, finances, education.Source
Business Week (11-99)
129
Yeow!1970 12000 50
130
OPPORTUNITY NO. 1!
131
FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply wants
the transaction to take place. Shes interested
in creating a relationship. Every place women go,
they make connections.
132
Women and HealthcareWomen are more
dissatisfied, frustrated by the way they are
treated and spoken down to by physicians, seek
more information, are more pressed for time and
make 75 of health care decisions and control
2/3 of health care and constitute 2/3 of
health care employees.Source Patricia Braus,
Marketing Healthcare to Women
133
Women and Financial AdvisorsWomen want a
plan, to be listened to, to be taken seriously,
to read about it, to think about it.Women do
not want an in-your-face sales pitchSource
Kathleen Boyle, Wheat Boyle Butcher Singer
134
How Many Gigs You Got, Man?Hard to believe
Different criteria Every research study weve
done indicates that women really care about the
relationship with their vendor. Robin
Sternbergh/ IBM
135
Its Simple Women are more thoughtful and
more deliberate than men!
136
Not!!Year of the Woman
137
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/ PromotingStructure ProcessesMeasurementStr
ategyCulture VisionLeadershipTHE BRAND ITSELF!
138
What kind of car does Mommy want?
139
I didnt know company were giving company cars
to secretaries.Source UK financial services
CEO, 12/99
140
Not a Morality Play!It is critical that we all
understand that IBM is not marketing to women
entrepreneurs because it is the thing to do, or
even the right thing to do. We are marketing to
women entrepreneurs because it is a huge
opportunity.Cherie Piebes
141
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
142
Brand OutsideStrategy 5Design Rules!
143
Sometimes I have episodes of wild fury in rental
cars. Its not road rage. Its more like design
rage.Susan Casey, www.ecompany.com
144
And Tomorrow Fifteen years ago companies
competed on price. Now Its quality. Tomorrow
its design.Robert Hayes
145
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
Ogha
146
Design is treated like a religion at
BMW.Fortune (10/98)
147
Drop-dead Charm!The new Beetle fails at most
categories. The only thing it doesnt fail in is
drop-dead charm.Jerry Hirshberg, Nissan Design
International
148
Design as SoulWe 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
149
Unconventional Design MessagesNot about ...
Lumpy Objects!Not about ... 79,000 objects
150
Design SIMPLICITY HONESTY ACCESSIBILITY
ENJOYMENTJonathan Ive (iMac)
151
Design There are three basic principles
behind any well-designed product truth,
humanity, and simplicity.Sohrab Vossoughi,
Ziba Design
152
Clarity!Simplicity!Functionality!Focus!Beauty!
Surprise!Quirkiness!Humane-ness!
153
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
154
Brand OutsideStrategy 6Its the Experience!
155
Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theater
Every Business a Stage
156
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
157
Whats the plot?Freeman Thomas, designer
158
This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
159
Marketing Aestheticsmanaging aesthetics
experiences aesthetics strategy marketing
of sensory experiences that contribute to the
organizations or brands identity mapping
strategic vision to sensory stimuliSource
Marketing Aesthetics, Bernd Schmitt Alexander
Simonson
160
Look Feel Taste Touch Sound Smell
Texture Color Typeface Etc. EXPERIENCE
Bernd Schmitt Alexander Simonson,
Marketing Aesthetics
161
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
162
Brand OutsideBRAND POWER!
163
Brand DefinedDistinctionExcellenceEmotional
SignatureTrustworthinessConsistencyShorthand
164
Brand It! Now, More Than Ever!The increasing
difficulty in differentiating between products
and the speed with which competitors take up
innovations will assist in the rise and rise of
the brand.Gillian Law and Nick Grant,
Management New Zealand
165
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
166
Brand Trust!Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but Intel Inside has become a
trust mark - a trademark that consumers put
their faith in.The Economist
167
Consumers dont simply buy products, they buy
attitudes as well. When confronted with
proliferation and diversity, choices become
increasingly informed by belief. Consumers want
to know who is behind the products that they buy.
They want to know the company. They want to know
what you think.Jesper Kunde, Corporate
Religion
168
Brand You Must Care!Success means never
letting the competition define you. Instead you
have to define yourself based on a point of view
you care deeply about. Tom Chappell, Toms of
Maine
169
Brand Special Passion Connection
Caring (Way) beyond market research
170
We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
171
Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be insanely True
to the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
172
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
173
Brand LeadershipPassion Rules!
174
Brand Leadership!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner Leading Minds An
Anatomy of Leadership
175
Leadership is a performance. You have to be
conscious of your behavior, because everybody
else is. Carly Fiorina
176
Brand LeadershipENTHUSIASM RULES!I am a
dispenser of enthusiasm/ Ben Zander
177
I dont care how old you are. I focus on energy
level.David Beirne, VC/Headhunter, on Dotcom
recruiting
178
Talent War, Marketplace WarThe successful
company has to create an environment that imbues
its employees with a sense of passion.Joe
Nocera, eCompany, on David Pottruck
179
The challenge for IBM, ATT and other mainstream
companies is to re-instill a sense of adventure
in recruits.Burke Stinson, ATT
180
Message to NAPM You are Re-invention
Evangelists!
181
Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK EVERY DAY!
182
(Personal) Accountability?!WHERE WERE YOU
DURING THE GREAT ENTERPRISE REVOLUTION OF Y2K?
183
If you ask me what I have come to do in this
world, I who am an artist, I will reply, I am
here to live my life out loud.Emile Zola
184
If things seem under control, youre just not
going fast enough.Mario Andretti