Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeGlobal Salon Business
Awards/ London/01June2004
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Slides at tompeters.com
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Montgomery Ward Kmart Sears Macys DEC
Wang Compaq Chase Manhattan American Motors
Chrysler U.S. Steel Bethlehem Steel
ATT Soviet Union
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WalMart Dell Microsoft U.S.A.
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All Bets Are Off.
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14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
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E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
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WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?
Headline/ Fortune/ 11.03 (We should finally
admit that we do not and cannot know, and regard
that fact with serenity rather than anxiety.)
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Jobs LostFormulaic intelligence (health record
clerks, 63/36K secretaries typists, 30/1.3M
bookkeepers, 13/247K)Manual dexterity (sewing
machine ops, 50/347K lathe ops, 49/30K
butchers, 23/67K)Muscle power (timber cutters,
32/25K farm workers, 20/182K) Source Where
the Jobs Are/NYT/05.13.2004/data 1994-2004
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Jobs GainedPeople skills emotional
intelligence (financial service sales, 78/248K
RNs, 28/512K lawyers, 24/182K)Imagination
creativity (architects, 44/60K designers,
43/230K photographers, 38/50K hair stylists
and cosmetologists, 19/146K)Analytic reasoning
(legal assts, 66/159K electronic engineers,
28/147K)Source Where the Jobs
Are/NYT/05.13.2004/data 1994-2004
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We are in a brawl with no rules.Paul Allaire
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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 BS 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.
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2. The Destruction Imperative.
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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
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ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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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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3. IS/ IT/ WebOn the Bus or Off the Bus.
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Case CRM
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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A seismic shift is underway in healthcare. The
Internet is delivering vast knowledge and new
choices to consumersraising their expectations
and, in many cases, handing them the controls.
Healthcare consumers are driving radical,
fundamental change.Deloitte Research, Winning
the Loyalty of the eHealth Consumer
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DIM/Self-service Rules!ATMsCheckoutPhonesSpee
dpassThe Web (eBay, Amazon,Travelocity,
Mapquest, banking et al.)HR, Project management,
etc.Minus 1.3M secretaries
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e-piphanyepicurious.com
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4. The Heart of the Value Added Revolution The
Solutions Imperative.
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
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When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
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Fight til Death!I thought, What a dreadful
mission I have in life. Id love to get
six-thousand restaurants up to spec, but when I
do its Ho-hum. Its bugged me ever since. Its
one of the great paradoxes of modern business. We
all know distinction is key, and yet in the last
twenty years we have created a plethora of ho-hum
products and services. Just go fly in an
airplane. It could be such an enlightening
experience. Ho-hum. We swim in an ocean of
ho-hum, and Im going to fight it. Im going to
die fighting it. Barry Gibbons
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Funky Business To succeed we must stop being so
damn normal. In a winner-takes-all world, normal
nothing.
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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
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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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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
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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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).
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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
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Keep In Mind Customer Satisfaction versus
Customer Success
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Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
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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)
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No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
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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
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FEES! FEES! FEES!Cover Story, BW/09.29.03
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5. A World of Scintillating Experiences.
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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
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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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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
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WHAT CAN BROWN DO FOR YOU?
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The Experience LadderExperiences
ServicesGoods Raw Materials
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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
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1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
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Clients want either the best or the least
expensive there is no in between. John
Dijulius, Secret Service
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From Service to Cause7X. 730A-800P.
F12A.Plus WOW Department Kill a Stupid
Rule contests, etc. 2001R 34 P 29
90-00 2,048. Commerce Bank/NJ (10B).
Source FC05.02.
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Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
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Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
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First Step (?!) Hire a theater director, as a
consultant or FTE!
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Experience Cirque du Soleil
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DO YOU MEASURE UP?If not, why not?
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Words Magician of
Magical Moments Maestro of Moments of Truth
Recruiter of Raving Fans Impresario of First
Impressions Wizard of WOW Captain of
Brilliant Comebacks Director of Electronic
Customer Experiences Conductor of Customer
Intimacy King of Customer Community Queen of
Customer Retention CEO of Ownership
Experience Managing Director of After-sales
Experience
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6. Experiences 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 marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
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(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
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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HORCHOW.COMFurniture. Accessories. Dreams.
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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
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7. It all adds up to THE BRAND.
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The Heart of Branding
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WHO ARE WE?
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WHATS OUR STORY?
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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
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DO THE HOUSEKEEPERS CLERKS BUY IT? ARE YOU
V-E-R-Y SURE?
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EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
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A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
75
You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do.Jerry Garcia
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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
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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)
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Trustmarks come after brands Lovemarks come
after Trustmarks. Think about how you make the
most money. You make it when loyal users, heavy
users, use your product all the time. So having a
long-term Love affair is better than having a
trusting relationship Kevin Roberts, Saatchi
Saatchi, The Future Beyond Brands Lovemarks
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8. Trends Worth Trillion Boomer Bonanza/
Godzilla Geezer.
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Subject Marketers StupidityIts 18-44,
stupid!
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Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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The New Consumer 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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Aging/ElderlyIm in charge!
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Sixty Is the New Thirty Cover/AARP/11.03
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507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury cars610B
healthcare spending/74 prescription drugs5
of advertising targetsKen Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
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Households headed by someone 40 or older enjoy
91 (9.7T) of our populations net worth. The
mature market is the dominant market in the U.S.
economy, making the majority of expenditures in
virtually every category. Carol Morgan Doran
Levy, Marketing to the Mindset of Boomers and
Their Elders
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Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly
understood.Peter Francese, founding publisher,
American Demographics
90
Women 65 and older spent 14.7 billion on
apparel in 1999, almost as much as that spent by
25- to 34-year-olds. While spending by the older
women increased by 12 from the previous year,
that of the younger group increased by only 0.1.
But who in the fashion industry is currently
pursuing this market? Carol Morgan Doran
Levy, Marketing to the Mindset of Boomers and
Their Elders
91
Possession Experiences /Desires for
things/Young adulthood/to 38Catered
Experiences/ Desires to be served by
others/Middle adulthoodBeing
Experiences/Desires for trancendaing
experiences/Late adulthoodSource David Wolfe
and Robert Snyder/Ageless Marketing
92
Age Power will rule the 21st century, and we
are woefully unprepared.Ken Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
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Addenda
94
The baby-boom generation is the first wellness
generation. Paul Zane Pilzer/The Wellness
Revolution The Next Trillion Dollar Industry
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Wellness Currently 200B, 1T by 2013
(Source Paul Zane Pilzer, The Wellness
Revolution The Next Trillion Dollar Industry)
96
9. Toward Work that Matters The WOW Project.
97
Your Current Project?1. Another
days work/Pays the rent.4. Of value.7.
Pretty Damn Cool/Definitely subversive.10.
WE AIM TO CHANGE THE WORLD.
(Insane!/Insanely Great!/WOW!)
98
Astonish me! / S.D.Build something great! /
H.Y.Immortal! / D.O.
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Lets make a dent in the universe.
Steve Jobs
100
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
101
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
102
10. Boss Job One The Talent Obsession.
103
Brand Talent.
104
Talent!Tina Brown The first thing to do is to
hire enough talent that a critical mass of
excitement starts to grow.Source
Business2.0/12.2002-01.2003
105
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
106
Les Wexner From sweaters to people!
107
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
108
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
109
Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
110
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
111
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
112
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent IBP/Internal Brand Promise per TP
113
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
114
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
115
11. Leading in Totally Screwed Up Times The
Passion Imperative!
116
Leadership Is a Mutual Discovery Process.
117
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
118
I dont know.
119
Quests!
120
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.
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Whoops Jack didnt have a vision!
122
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
123
To Dont List
124
Fail. Forward. Fast. High-tech Exec
125
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
126
Leaders Make Their Mark / Leaders Do Stuff
That Matters
127
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
128
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 DePree, Herman
Miller
129
Leaders Dont Create Followers THEY CREATE
LEADERS!
130
I start with the premise that the function of
leadership is to produce more leaders, not more
followers.Ralph Nader
131
PJ Coaching is winning players over.
132
G.H. Create a cause, not a business.
133
Vision is a love affair with an idea.Boyd
Clarke Ron Crossland, The Leaders Voice
134
BZ I am a Dispenser of Enthusiasm!
135
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
136
Im looking for insane commitment. Twyla
Tharp, The Creative Habit
137
Leaders Focus on the SOFT STUFF!
138
Soft Is Hard- ISOE
139
Message Leadership is all about love! Passion,
Enthusiasms, Appetite for Life, Engagement,
Commitment, Great Causes Determination to Make
a Damn Difference, Shared Adventures, Bizarre
Failures, Growth, Insatiable Appetite for
Change. Otherwise, why bother? Just read
Dilbert. TPs final words CYNICISM SUCKS.
140
Ph.D. in leadership. Short course Make a short
list of all things done to you that you abhorred.
Dont do them to others. Ever. Make another list
of things done to you that you loved. Do them to
others. Always. Dee Hock
141
Leaders Give RESPECT!
142

• 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

143
Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
144
Leaders Say Thank You.
145
The deepest human need is the need to be
appreciated.William James
146
We look for ...... listening, caring,
smiling, saying Thank you, being warm.
Colleen Barrett, President, Southwest Airlines
147
Leadership Is a Performance.
148
It is necessary for the President to be the
nations No. 1 actor.FDR
149
You cant lead a cavalry charge if you think you
look funny on a horse. John Peers, President,
Logical Machine Corporation
150
Leaders Are The Brand
151
You must be the change you wish to see in the
world.Gandhi
152
Leaders Have a GREAT STORY!
153
A key perhaps the key to leadership is
the effective communication of a story.Howard
Gardner Leading Minds An Anatomy of Leadership
154
Leaders dont just make products and make
decisions. Leaders make meaning. John Seely
Brown
155
Leaders Enjoy Leading.
156
Warren, I know you want to be president. But
do you want to do president?
157
Leaders ???
158
Leadership is the PROCESS of ENGAGING PEOPLE in
CREATING a LEGACY of EXCELLENCE.
159
Its only business, not personal IT ALWAYS
IS PERSONAL.
160
LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON
ROLLER BLADES
161
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. Émile Zola
162
Have you changed civilization today?Source HP
banner ad
163
Sir Richards RulesFollow your
passions.Keep it simple.Get the best people
to help you.Re-create yourself.Play.Source
Fortune/10.03
164
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!
165
HTSH Engage!Commit! Engage! Try! Fail! Get up!
Try again! Fail again! Try again! But never, ever
stop moving on! Progress for humanity is
engendered by those who join and savor the fray
by giving one hundred percent of themselves to
their dreams! Not by those timid souls who remain
glued to the sidelines, stifled by tradition, and
fearful of losing face or giving offense to the
reigning authorities.Key words Commit! Engage!
Try! Fail! Persist!
166
HTSH You Must CareMake the time each day to
offer an expression of appreciation to just one
of your fellow human beings. It is the
accumulation of such small kindnesses and acts
of recognition that add up to a life worth having
been lived. In short you must care. You must
wear your passion and compassion on your sleeve,
and attend assiduously to the moment. It will not
come round again.Key word Care
167
Thank You!