Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeQAD/Explore/Orlando/05.19.200
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Slides at tompeters.com
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All Bets Are Off.
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Uncertainty is the only thing to be sure of.
Anthony Muh, head of investment in Asia,
Citigroup Asset management (FT/03.27.2003)
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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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2. The Destruction Imperative.
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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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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
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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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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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3. IS/ IT/ Web On the Bus or Off the Bus.
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The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organizational
Limits.
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100 square feet
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Dawn Meyerreicks, CTO of the Defense
Intelligence Systems Agency, made one of the most
fateful military calls of the 21st century. After
9/11 her office quickly leased all the
available transponders covering Central Asia. The
implications should change everything about U.S.
military thinking in the years ahead. The U.S.
Air Force had kicked off its fight against the
Taliban with an ineffective bombing campaign, and
Washington was anguishing over whether to send in
a few Army divisions. Donald Rumsfeld told Gen.
Tommy Franks to give the initiative to 250
Special Forces already on the ground. They used
satellite phones, Predator surveillance drones,
and GPS- and laser-based targeting systems to
make the air strikes brutally effective.In
effect, they Napsterized the battlefield by
cutting out the middlemen (much of the militarys
command and control) and working directly with
the real players. The data came in so fast that
HQ revised operating procedures to allow
intelligence analysts and attack planners to work
directly together. Their favorite tool,
incidentally, was instant messaging over a secure
network.Ned Desmond/Broadbands New Killer
App/Business 2.0/ OCT2002
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Impact No. 1/ Logistics Distribution
WalMart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad
Infinitum.
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Autobytel 400. WalMart 13.Source
BW(05.13.2002)
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Case CRM
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CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
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No! No! No! FT The aim of CRM is to make
customers feel as they did in the pre-electronic
age when service was more personal.
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CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
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Here We Go Again Except Its Real This
Time!Bank online 24.3M (10.2002) 2X
Y2000.Wells Fargo 1/3rd 3.3M 50 lower
attrition rate 50 higher growth in balances
than off-line more likely to cross-purchase
happier and stay with the bank much
longer.Source The Wall Street
Journal/10.21.2002
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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4. The PSF SolutionThe Professional Service
Firm Model.
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Sarah Daddy, what do you do?Daddy Im a
cost center.
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Every job done in W.C.W. is also done outside
for profit!
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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TP to NAPM You are the Rock Stars of the
B2B Age!
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Typically in a mortgage company or financial
services company, risk management is an
overhead, not a revenue center. Weve become more
than that. We pay for ourselves, and we actually
make money for the company.Frank Eichorn,
Director of Credit Risk Data Management Group,
Wells Fargo Home Mortgage (Source sas.com)
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5. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
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The Big Day!
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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.
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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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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John Deere Landscapes This is our future.
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6. A World of Scintillating/ Awesome/ WOW
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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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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Its All About EXPERIENCES Trapper to
Wildlife Damage-control ProfessionalTrapper
lt20 per beaver pelt.WDCP 150/problem
beaver 750-1,000 for flood-control piping
so that beavers can stay.Source
WSJ/05.21.2002
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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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7. The Passion Imperative Leading in Totally
Screwed- Up Times
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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!)
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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
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If things seem under control, youre just not
going fast enough.Mario Andretti
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To Dont List
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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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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
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TP If you dont LOVE SALES find another life.
(Dont pretend youre a leader.) (See TPs
The Project50.)
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TP If you dont LOVE POLITICS find another
life. (Dont pretend youre a leader.)
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BZ I am a Dispenser of Enthusiasm!
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G.H. Create a cause, not a business.
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo