Re-imagine

1
Re-imagines RequisitesThe Leadership11Tom
Peters/06.18.04
2
Slides at tompeters.com
3
Montgomery Ward Kmart Sears Macys
Hutzlers Wanamakers DEC Wang Compaq
Chase Manhattan American Motors Chrysler
U. S. Steel Bethlehem Steel ATT Soviet
Union
4
WalMart Dell Microsoft U.S.A.
5
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
6
Its no longer enough to be a change agent.
You must be a change insurgentprovoking,
prodding, warning everyone in sight that
complacency is death. Bob Reich
7
Biases
8
Importance of Success Factors by Various
Gurus/Estimates by Tom Peters
Strategy Systems Passion Execution
Porter 50 20 15
15Drucker 35 30
15 20Bennis 25
20 30 25Peters
15 20 35
30
9
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 the power of a Good Story
(Brand Power).
10
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!
11
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source
Fortune/10.03
12
In Toms world, its always better to try a
swan dive and deliver a colossal belly flop than
to step timidly off the board while holding your
nose. Fast Company /October2003
13
Purpose
14
It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public. from the back cover,
Re-imagine!
15
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
16
Re-imagine! Do we rest on our laurels or
re-invent our corners of the world?T.I.B. In
the end we are uniquely responsible for using our
power and resources to leave the world a better
place than when we arrived.This I Believe
17
60 30 90 6090 60 gt 60 30 (??)
18
One Person, Not So Senior!LCDR Charles Swift,
Guantanamo Bay defense attorneySPC Joe Darby
19
Context The Change TsunamiJobs
TechnologyGlobalization War, Warfighting
Security
20
Jobs New TechnologyGlobalization War,
Warfighting Security
21
The Perfect (Jobs) StormOff-shoringWC
AutomationReluctance to hire
22
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
23
14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
24
Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.04
25
People 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)Analytic
reasoning (legal assts, 66/159K electronic
engs, 28/147K computer operators,
55/367K)Source Where the Jobs
Are/NYT/05.13.2004/data 1994-2004
26
-Formulaic 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
27
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/08.18.03
28
The proper role of a healthily functioning
economy is to destroy jobs and to put labor to
use elsewhere. Despite this truth, layoffs and
firings will always sting, as if the invisible
hand of free enterprise has slapped workers in
the face. Joseph Schumpeter
29
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
30
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.)
31
We erect walls to foreign trade and even
discourage job-displacing innovations. But time
and again through our history, we have discovered
merely to preserve the comfortable features of
the present, rather than reaching for new levels
of prosperity, is a sure path to stagnation.
Alan Greenspan/03.12.2004
32
Jobs TechnologyGlobalization War, Warfighting
Security
33
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
34
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
35
Productivity!McKesson 2002-2003 Revenue 7B
Employees 500Source USA Today/06.14.04
36
A bureaucrat is an expensive microchip.Dan
Sullivan, consultant and executive coach
37
I genuinely believe we are living through the
greatest intellectual moment in history.Matt
Ridley, Genome
38
In 25 years, youll probably be able to get the
sum total of all human knowledge on a personal
device.Greg Blonder, VC was Chief Technical
Adviser for Corporate Strategy _at_ ATT Barrons
11.13.2000
39
A California biotechnology company has put the
entire sequence of the human genome on a single
chip, allowing researchers to conduct a single
experiment on the complex relationships between
the 30,000 genes that make up a human being.
Page 3, Financial Times/10.03.2003
40
Jobs TechnologyGlobalization War, Warfighting
Security
41
Asias rise is the economic event of our age.
Should it proceed as it has over the last few
decades, it will bring the two centuries of
global domination by Europe and, subsequently,
its giant North American offshoot to an end.
Financial Times (09.22.2003)
42
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
43
China Roars!
44
Chinese Industrial Growth Rate Slows!April 03
to April 04 19.1May 03 to May 04
17.5Source NYT/06.11.04
45
1990-2003 Exports 8X (380B) 6 global exports
2003 vs. 3.9 2000 16 of Total Global Growth in
2002.Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
46
1998-2003 45,000,000 layoffs in state sector
offset by 450B in foreign investment foreign
companies account for 50 of exports vs. 31 in
Mexico, 15 in Korea.Source China Takes
Off, David Hale Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
47
50 of output from private firms, 37 from
state-owned firms 80 of workforce (incl. rural)
now in private employ.Source China Takes
Off, David Hale Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
48
Population growth 1 two-thirds of housing
privately owned, 90 of urban Chinese own a home
(vs. 61 in Japan)Source China Takes Off,
David Hale Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
49
200 cities with gt1,000,000 population.Source
China Takes Off, David Hale Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
50
Shanghai. 17 million people. 10,000 p.c. (10X
China). 2000-2003 30 p.a. growth.Source
Washington Post / 06.13.04
51
2003 China-Hong Kong leading producer in 8 of 12
key consumer electronic product areas (gt50
DVDs, digital cameras gt33.33 DVD-ROM drives,
personal desktop and notebook computers gt25
mobile phones, color TVs, PDAs, car
stereos).Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
52
Going Global Flush with billions in foreign
reserves, China is embarking on a buying spree
Cover/ Newsweek/ 03.01.04/ on Chinas aggressive
offshore acquisition activity (buying brands,
technology, etc.)
53
World economic output U.S.A., 21 EU, 16
China, 13 (2X since1991)Source New York
Times/12.14.2003
54
America, like everyone else, must get used to
being a loser as well as a gainer in the global
economy. In the end, the 21st century is
unlikely to be the American Century. When the
Chinese Consumer Is King/New York
Times/12.14.2003. The notion that God
intended Americans to be permanently wealthier
than the rest of the world, that gets less and
less likely as time goes on. Robert Solow,
Nobel laureate in economics/New York
Times/12.14.2003
55
In Store International Equality, Intranational
InequalityThe new organization of society
implied by the triumph of individual autonomy and
the true equalization of opportunity based upon
merit will lead to very great rewards for merit
and great individual autonomy. This will leave
individuals far more responsible for themselves
than they have been accustomed to being during
the industrial period. It will also reduce the
unearned advantage in living standards that has
been enjoyed by residents of advanced industrial
societies throughout the 20th century.James
Davidson William Rees-Mogg,The Sovereign
Individual
56
Indian GDP/1990-2002 Ag, 34 to 21 services,
40 to 56Source The Economist / 02.04
57
Level 5 (top) ranking/Carnegie Mellon Software
Engineering Institute 35 of 70 companies in
world are from IndiaSource Wired/02.04
58
No Limits?Short on Priests, U.S. Catholics
Outsource Prayer to Indian Clergy New York
Times/06.13.04 (Special intentions, .90 for
Indians, 5.00 for Americans)
59
Forget India, Lets Go to Bulgaria Headline,
BW/03.04, re SAP, BMW, Siemens et al.
near-shoring
60
Jobs TechnologyGlobalization War, Warfighting
Security
61
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
62
The worlds new dimension (computers, Internet,
globalization, instantaneous communication,
widely available instruments of mass destruction
and so on) amounts to a new metaphysics that, by
empowering individual zealots or agitated tribes
with unappeasable grievances, makes the world
unstable and dangerous in radically new ways.
Lance Morrow/Evil
63
The new century risks being overrun by both
anarchy and technology. The two great destroyers
of history may reinforce each other. Both the
spread of terrorism and that of weapons of mass
destruction point to a world in which Western
governments are losing control. The spread of the
technology of mass destruction represents a
potentially massive redistribution of power away
from the advanced industrial (and democratic)
states and toward smaller states that may be less
stable and have less of a stake in an orderly
world or more dramatically still, it may
represent a redistribution of power away from the
state itself and towards individuals, that is to
say terrorists or criminals. In the past to be
damaging, an ideological movement had to be
widespread to recruit enough support to take on
authority. Henceforth, comparatively small groups
will be able to do the sort of damage which
before only state armies or major revolutionary
movements could achieve. A few fanatics with a
dirty bomb or biological weapons will be able
to cause death on a scale not previously
envisaged. Emancipation, diversity, global
communicationall of the things that promise an
age of riches and creativitycould also bring a
nightmare in which states lose control of the
means of violence and people lose control of
their futures.Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
64
Before we can talk about the security
requirements for today and tomorrow, we have to
forget the security rules of yesterday. Robert
Cooper, The Breaking of Nations Order and Chaos
in the Twenty-first Century
65
All Bets Are Off!
66
There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
67
Lets competeby training the best workers,
investing in R D, erecting the best
infrastructure and building an education system
that graduates students who rank with the worlds
best. Our goal is to be competitive with the best
so we both win and create jobs. Craig Barrett
(Time/03.01.04)
68
The Ownership Society (GWB) This is a bundle
of proposals that treat workers as self-reliant
pioneers who rise through several employers and
careers. To thrive, these pioneers need survival
tools. They need to own their own capital
reserves, their retraining programs, their own
pensions and their own health insurance. David
Brooks/NYT/12.20.03
69
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.
70
The Leadership11
71
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
72
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
73
Steel 75,000,000 tons in 82 to 102,000,000 tons
in 02. 289, 000 steelworkers in 82 to 74,000
steelworkers in 02. Source Fortune/11.24.03
74
WHERE IS YOUR JOB GOING writing software,
designing chips, reading MRIs, processing
mortgages, preparing tax returns, managing
computer networks (etc GE Capitals 15,000 in
Delhi), preparing PP slides for McKinsey (350 in
Chennai), equity analysis of U.S. companies
(Morgan Stanley) Source Fortune/11.24.03
75
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.)
76
Unless mankind redesigns itself by changing our
DNA through altering our genetic makeup,
computer-generated robots will take over the
world. Stephen Hawking, in the German magazine
Focus
77
The Leadership11Talent Management
78
In an age of value-added through imagination,
creativity and intellectual capital the
leaders Job One is the recruitment, development
and retention of awesome talent.
79
Brand Talent.
80
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
81
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
82
The Creative Class derives its identity from its
members roles as purveyors of creativity.
Because creativity is the driving force of
economic growth, in terms of influence the
Creative Class has become the dominant class in
society. Richard Florida, The Rise of the
Creative Class (38M, 30)
83
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
84
PARCs Bob Taylor Connoisseur of Talent
85
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
86
T.A. 3
87
Model 25/8/53 Sports Franchise GM
88
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
89
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
90
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)
91
DD21M
92
Where do good new ideas come from? Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
93
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
94
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
95
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.Source Judy B. Rosener, Americas
Competitive Secret Women Managers
96
Are men obsolete? Headline, USNWR/06.03.03
97
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent IBP/Internal Brand Promise per TP
98
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
99
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
100
Talents Big Two RulesGREAT Finance Dept.
GREAT Football TeamDIFFERENCES Among Cello
Players DIFFERENCES Among Hotel GMs
101
The Top 5 RevelationsBetter talent
wins.Talent management is my job as
leader.Talented leaders are looking for the
moon and stars.Over-deliver on peoples dreams
they are volunteers.Pump talent in at all
levels, from all conceivable sources, all the
time.Source Ed Michaels et al., The War for
Talent
102
Talents Rules1. Talent
25/8/53 2. Some people are better than other
people. Some people are a helluva lot better
than other people3. Think Roster4. Think
V.C.5. Talent Brand6. Talent is what
leaders do.
103
Talent Department
104
People DepartmentCenter for Talent
ExcellenceSeriously Cool People Who Recruit
Develop Seriously Cool PeopleEtc.
105

• Firms will not manage the careers of their
  employees. They will provide opportunities to
  enable the employee to develop identity and
  adaptability and
• thus be in charge of his or her own career.
• Tim Hall et al., The New Protean Career
  Contract

106
Quests!
107
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
108
I dont know.
109
Distinct or ExstinctIf 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
110
better material welfare vs. maximize the
opportunity of its people Philip Bobbitt, The
Shield of Achilles War, Peace, and the Course of
History
111
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
112
Country Guarantee No One Is in Need Provide
Freedom to Pursue GoalsU.S.A.
35
58Germany 58

38France 61
36UK
61
35Italy
65
22 Source
Economist/11.08.2003
113
My ancestors were printers in Amsterdam from
1510 or so until 1750, and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
114
Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
115
26.3
116
Prep 1 hour per 1 minute (WSC) Forget
practice makes perfect. Substitute perfect
practice makes perfect. (TT) Major
difference between best and average? Best
get as much pleasure from practice as
performance. Ben Zander
117
Edward Jones Training Machine146
hours/employee/yearNew hires 4X avg.3.8 of
payroll 1, The 100 Best Companies To Work
For/Fortune/01.2003
118
T.T.D./AssignmentConstruct a 1/8-page or
1/4-page ad for Brand You for the Yellow Pages
119
You are the storyteller of your own life, and
you can create your own legend or not.Isabel
Allende
120
For Marx, the path to social betterment was
through collective resistance of the proletariat
to the economic injustices of the capitalist
system that produced such misshapenness and
fragmentation. For Emerson, the key was to jolt
individuals into realizing the untapped power of
energy, knowledge and creativity of which all
people, at least in principle, are capable. He
too hated all systems of human oppression but
his central project, and the basis of his legacy,
was to unchain individual minds. Lawrence
Buell, Emerson
121
I AM A TALENT FANATIC. I STACK UP WITH THE BEST
FOOTBALL COACHES. OUR TALENT IS ON QUESTS TO
RE-IMAGINE TOMORROW. THE TALENT I RECRUIT AND
DEVELOP IS MY PREMIER LEGACY. (Scale of 1 to 10?)
122
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
123
The Leadership11Metabolic Management
124
The metabolism of enterprise-competition-inventi
on has speeded up remarkably. It is the leaders
mission to increaseand managethe Metabolic Rate
of her or his organization.
125
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition? Do
we value stability and control or evolution and
learning? Do we think that progress requires a
central blueprint, or do we see it as a
decentralized, evolutionary process?? Do we see
mistakes as permanent disasters, or the
correctable byproducts of experimentation? Do we
crave predictability or relish surprise? These
two poles, stasis and dynamism, increasingly
define our political, intellectual and cultural
landscape. Virginia Postrel, The Future and Its
Enemies
126
If things seem under control, youre just not
going fast enough.Mario Andretti
127
Im not comfortable unless Im
uncomfortable.Jay Chiat
128
We are in a brawl with no rules.Paul Allaire
129
S.A.V.
130
Strategy meetings held once or twice a year to
Strategy meetings needed several times a week.

Source New York Times on Meg Whitman/eBay
131
Rate of Leaving F5001970-1990 4XSource
The Company, John Micklethwait Adrian
Wooldridge (1974-200 One-half biggest 100
disappear)
132
Far from being a source of comfort, bigness
became a code for inflexibility. John
Micklethwait Adrian Wooldridge, The Company
133
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
134
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
135
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!)
136
We have a strategic plan. Its called doing
things. Herb Kelleher
137
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
138
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

139
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
140
If it works, its obsolete. Marshall McLuhan
141
Boyd
142
OODA Loop/Boyd CycleUnraveling the
competition/ Quick Transients/ Quick Tempo (NOT
JUST SPEED!)/ Agility/ So quick it is
disconcerting (adversary over-reacts or
under-reacts)/ Winners used tactics that caused
the enemy to unravel before the fight (NEVER
HEAD TO HEAD)BOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
143
Blitzkrieg is far more than lightning thrusts
that most people think of when they hear the
term rather it was all about high operational
tempo and the rapid exploitation of
opportunity. BOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
144
Float like a butterfly. Sting like a bee. Ali
145
ManeuveristsBOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
146
Erics ArmyFlat.Fast.Agil
e.Adaptable.Light But Lethal.Talent/ I Am
an Army of One.Info-intense.Network-centric.
147
The New Infantry Battalion/New York
Times/12.01.2002Pentagons Urgent Search for
Speed. 270 soldiers (1/3rd normal complement)
140 robotic off-road armored trucks. Every
soldier is a sensor. Revolutionary
capabilities. Find-to-hit 45 minutes to 15
minutes in just one year.
148
Rather than have massive armies that people can
go along and inspect, it is now about having
rapidly deployable expediency forces that can be
dropped by land, sea or air and with full
support. MoD official, on Defense Secretary
Geoff Hoons defense white paper (12.2003)
149
WE ARE ON A PERMANENT HIGH. WE LIVE ON SPEED. WE
TACK AND JIBE ON A NANOSECONDS NOTICE.
RECRIMINATION IS MINIMAL. ACTION RULES. I AM
PROACTIVE AROUND THE CAUSE OF URGENCY. (Scale
of 1 to 10?)
150
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
151
The Leadership11Technology Management
152
The Internet and other associated technologies
are changing everything. The leader must take
direct charge of the full-bore implementation of
the new technologies. The wise leader is his own
CIO.
153
E-commerce is happening the way all the hype
said it would. Internet deployment is happening.
Broadband is happening. Everything we ever said
about the Internet is happening. And it is very,
very early. We cant even glimpse ITs potential
in changing the way people work and live. Andy
Grove (BusinessWeek/August 2003)
154
100 square feet
155
Our entire facility is digital. No paper, no
film, no medical records. Nothing. And its all
integratedfrom the lab to X-ray to records to
physician order entry. Patients dont have to
wait for anything. The information from the
physicians office is in registration and vice
versa. The referring physician is immediately
sent an email telling him his patient has shown
up. Its wireless in-house. We have 800
notebook computers that are wireless. Physicians
can walk around with a computer thats
pre-programmed. If the physician wants, well go
out and wire their house so they can sit on the
couch and connect to the network. They can review
a chart from 100 miles away. David Veillette,
CEO, Indiana Heart Hospital (HealthLeaders/12.2002
)
156
Dawn Meyerreicks, CTO of the Defense Information
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
157
The mechanical speed of combat vehicles has not
increased since Rommels day, so the difference
is all in the operational speed, faster
communications and faster decisions. Edward
Luttwak, on the unprecedented pace of the move
toward Baghdad
158
Erics ArmyFlat.Fast.Agil
e.Adaptable.Light But Lethal.Talent/ I Am
an Army of One.Info-intense.Network-centric.
159
Hyperlinks subvert hierarchy!The Cluetrain
Manifesto
160
Words to Live By Hierarchy is an
organization with its face toward the CEO and
its ass toward the customer.Kjell Nordstrom
and Jonas Ridderstrale, Funky Business
161
WebWorld Everything Web as a way to run your
businesss innardsWeb as connector for your
entire supply-demand chain Web as spiders web
which re-conceives the industryWeb/B2B as
ultimate wake-up call to commodity
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
162
Theres no use trying, said Alice. One cant
believe impossible things. I daresay you
havent had much practice, said the Queen. When
I was your age, I always did it for half an hour
a day. Why, sometimes Ive believed as many as
six impossible things before breakfast.Lewis
Carroll
163
Inet allows you to dream dreams you could
never have dreamed before!
164
Case CRM
165
Amen!The Age of the Never Satisfied
CustomerRegis McKenna
166
CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
167
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.
168
DIM/Self-service Rules!ATMsCheckoutPhonesSpee
dpassThe Web (eBay, Amazon,Travelocity,
Mapquest, banking et al.)HR, Project management,
etc.Minus 1.3M secretaries
169
CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
170
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
171
TECHNOLOGY CHANGES EVERYTHING. I AM A TRUE
BELIEVER. NOW IS THE MOMENT FOR INSANELY BOLD
INVESTMENT AND TOTAL CORPORATE RE-IMAGINATION.
(Scale of 1 to 10?)
172
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
173
The Leadership11Barrier Management
174
The corporate metabolism cannot be speeded up
and the new technologies cannot be fully
exploited unless all barriers to X-functional
communication (throughout the entire supply and
demand chain) are destroyed. The leader must
leadget directly involved in the minutiae of
this STRATEGIC task.
175
IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY
BEGAN ON SEPTEMBER 11, 2001. Al-Qaeda
represents a new and profoundly dangerous kind of
organizationone that might be called a virtual
state. On September 11 a virtual state proved
that modern societies are vulnerable as never
before.Time/09.09.2002
176
The deadliest strength of Americas new
adversaries is their very fluidity, Defense
Secretary Donald Rumsfeld believes. Terrorist
networks, unburdened by fixed borders,
headquarters or conventional forces, are free to
study the way this nation responds to threats and
adapt themselves to prepare for what Mr. Rumsfeld
is certain will be another attack. Business
as usual wont do it, he said. His answer is to
develop swifter, more lethal ways to fight. Big
institutions arent swift on their feet in
adapting but rather ponderous and clumsy and
slow. The New York Times/09.04.2002
177
From Weapon v. Weapon To
Org structure v. Org structure
178
Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
179
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.
180
In an era when terrorists use satellite phones
and encrypted email, US gatekeepers stand armed
against them with pencils and paperwork, and
archaic computer systems that dont talk to each
other.Boston Globe (09.30.2001)
181
Dawn Meyerreicks, CTO of the Defense Information
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
182
Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
183
Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
184
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
185
The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0
186
BARRIERS MUST GO. PERIOD. I AM INTIMATELY
INVOLVED WITH THE GRUBBY DETAILS OF TOTAL PROCESS
RE-DESIGN. WE WILL NOT PARTNER WITH THOSE THAT
DONT GET IT. (Scale of 1 t0 10?)
187
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
188
The Leadership11Forgetful Management
189
The new competitive realities demand that we turn
our backs on the ones who brung us. Every leader
needs a FORMAL forgetting strategy.
190
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
191
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
192
Cortez!
193
Leaders dump the ones who brung em Nokia, HP,
3M, PerkinElmer, Corning, etc.
194
Its just a fact Survivors underperform.
Dick Foster
195
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
196
Success Kills!The more successful a company,
the flatter its forgetting curve. Gary Hamel
and C.K. Prahalad
197
FORGET IT IS MY MISSION AND MANTRA. WE MUST
SEVER MANY/MOST OF OUR TIES TO THE PAST AND
IMAGINE COMPLETELY NEW WORLDS. EVERYONE KNOWS
THAT FORGETTING IS MY PASSION. (Scale of 1 to
10?)
198
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
199
The Leadership11Metaphysical Management
200
A brand new value proposition is emerging. We are
moving toward more and more ethereal products
and services. The leader must oversee this
processbecome the Metaphysician-in-Chief.
201
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
202
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
203
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
204
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
205
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
206
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
207
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
208
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).
209
Sam Palmisanos strategy is to expand techs
borders by pushing usersand entire
industriestoward radically different business
models. The payoff for IBM would be access to an
ocean of revenuePalmisano estimates it at 500
billion a yearthat technology companies have
never been able to touch. Fortune/06.14.04
210
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)
211
E.g. UTC/Otis Carrier boxes to integrated
building systems
212
Leased AC Units of Coolth
213
Omnicom 57 (of 6B) from marketing services
214
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
215
IBM/Q3/10.15.03/Rev 5Services/Consulting
11Software 5Hardware -5PCs
-2Technology/Chips -33
216
Turnkey NationHP Sun Farmers Group
Northwestern Mutual Financial Network IBM
ATT Ericsson GE Power Systems GE
Industrial Systems Ford Siemens Home Depot
Deere UTC Otis UTC Carrier UPS
Springs Industries RCI Equity Office
Properties Omnicom India Etc.
217
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
218
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
219
Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
220
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
221
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
222
WHAT CAN BROWN DO FOR YOU?
223
The Experience LadderExperiences
ServicesGoods Raw Materials
224
Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
225
Lexus sells its cars as containers for our sound
systems. Its marvelous.Sidney Harman/ Harman
International
226
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
227
Moving CompaniesWSJ/08.2003 In Texas, Theyll
fill your empty fridge with brie and wine. An
outfit in New York promises quick high-speed
Internet hookup. And when Allied Van Lines
finishes unloading your couch, theyll have a
feng shui expert figure out the right spot.
228
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
229
1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
230
Clients want either the best or the least
expensive there is no in between. John
Dijulius, Secret Service
231
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
232
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
233
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
234
Trustmarks come aftere 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
235
(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
Materials
236
And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
237
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
238
Design is treated like a religion at
BMW.Fortune
239
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
240
The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. The Dream Society
is emerging this very instantthe shape of the
future is visible today. Right now is the time
for decisionsbefore the major portion of
consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will
have to appeal to our hearts, not to our heads.
Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
241
A shipping clerk earning 25,000 a year treats
herself to silk pajamas at Victorias Secret. A
dual-income couple earning 125,000 orders a
4,000 Viking range for their townhouse even
though the developer offered to throw in a
perfectly serviceable generic range at no extra
charge. These purchases reflect an important
worldwide behavioral shift. Consumers today are
willing to pay a significant premium for goods
and services that are emotionally important to
them and that deliver the perceived values of
quality, performance and engagement. But in
other categories that arent emotionally
important, they become bargain hunters a
passionate Mercedes driver will shop at Target
every weekend a construction worker who splurges
on a 3,000 set of Callaway golf clubs will buy
store brand groceries. Trading Up The New
American Luxury/Michael Silverstein Neil Fiske
242
Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, Unique Now ... or Never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
243
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer 2002
244
New Market RealitiesSelling Dreams How to
Make Any Product Irresistible, Gian Luigi
Longinotti-BuitoniThe Dream Society How the
Coming Shift from Information to Imagination Will
Transform Your Business, Rolf JensenTrading Up
The New American Luxury, Michael Silverstein
Neil Fiske
245
I FULLY COMPREHEND THAT THE BASIC VALUE PREMISE
IS SHIFTING DRAMATICALLY AND RAPIDLY. I AM
WHOLLY COMMITTED TO BECOMING MASTER
METAPHYSICIAN. (Scale of 1 to 10?)
246
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
247
The Leadership11Opportunity Management
248
The two biggest (by far) trends are ignoredor
at least not treated as Strategic Priority Oneby
most. Women! Boomers Geezers! Why? (And what
does the leader plan to do about it?)
249
Women the Marketspace.
250
?????????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 c