Tom Peters

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Tom Peters Re-Imagine2006!Business
Excellence in a Disruptive AgeInvestec/LONG/Ma
uritius/10March2006
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Slides at tompeters.comshort, long
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Re-imagine! Not Your Fathers World I.
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THREE BILLION NEW CAPITALISTS Clyde Prestowitz
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1 Houston/Month/15
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WE ARE BEGINNING TO ACQUIRE DIRECT AND
DELIBERATE CONTROL OVER THE EVOLUTION OF ALL
LIFE FORMS ON THE PLANET.Source Juan
Enriquez, As The Future Catches You
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the metabolically dominant soldierSource
Radical Evolution The Promise and Peril of
Enhancing Our Minds, Our Bodiesand What It Means
to Be Human, Joel Garreau
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New Economy?Sergey, Larry gt Harvard
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New Economy?Genentech, Amgen gt Merck
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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
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H5N1
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December 9, 2005 Ogre to Slay? Outsource It to
Chinese (New York Times, page 1news section).
The factory Fuzhou, China. The workers
youngsters logging 12-hour shifts. Their
clientele youngsters from Seoul to San
Francisco. The work The Chinese youngsters
are playing the early levels of video games for
their affluent clients, who want to avoid the
pain and time associated with those annoying
first few levels.
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Re-imagine! Not Your Fathers World II.
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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
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The Generals Story. (And Darwins)
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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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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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1. Re-imagine Permanence The Naked Emperor
Problem!
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Pathetic!
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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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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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Lessons Learned. GE. Me.
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4/40
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De-cent-ral-iz-a-tion!
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Ex-e-cu-tion!
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Ac-count-a-bil-ity!
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615A.M.
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2. Re-imagine Innovateor Die!!
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Brilliant!
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Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting,
efficiency and deal-making. What mattered was the
continual improvement of operations, and that
mindset helped the 152 billion industrial and
finance behemoth become a marvel of earnings
consistency. Immelt hasnt turned his back on the
old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above
all, innovation. BW/2005
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Resist!
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Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
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When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
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Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the
same company six times and everybody makes money,
but Im not sure were actually innovating.
Our challenge is to take nanotechnology into the
future, to do personalized medicine Jeff
Immelt/2005
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Theres A and then theres A.
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Scale?
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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The slumping giant needs to put more pep in its
funds. But size remains a handicap. Fortune
on Fidelity Magellan/1128.05 (Theres a
practical limitation to running a fund of that
size.Chris Traulsen, analyst, Morningstar)
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Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
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Op-ed. Wall Street Journal. 2 March 2006
Boutique vs. Behemoth Upstarts Steal Market
Share from the Investment Banks. 3 March 2006
Adidas announces crappy s, thanks to its
acquisition of Reebok.
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TOO BIG TO GROW Why Wall Street has soured on
many of corporate Americas most admired and
feared companies headline, Newsweek, 0313.06
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Spinoffs perform better than IPOs track record,
profits freed from the confines of the parent
more entrepreneurial, more nimble Jerry
Knight/Washington Post/08.05
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Focus!
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Scales Limitations All Strategy Is Local True
competitive advantages are harder to find and
maintain than people realize. The odds are best
in tightly drawn markets, not big, sprawling
ones Title/Bruce Greenwald Judd
Kahn/HBR09.05
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Market Share, Anyone? 240 industries
Market-share leader is ROA leader 29 of the
time Source Donald V. Potter, Wall Street
Journal
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Market Share, Anyone? 240
industries market-share leader is ROA
leader 29 of the time Profit / ROA leaders
aggressively weed out customers who
generate low returns
Source Donald V. Potter, Wall Street Journal
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Big WinnersLousy industry Specialty
(Ignored/No competition) Smaller than
competitors4 Traits Sweet spot Agility
Discipline FocusSource Alfred Marcus, Big
Winners and Big Losers The 4 Secrets of
Long-term Business and Failure
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Big WinnersLousy industry Specialty
(Ignored/No competition) Smaller than
competitors4 Traits Sweet spot Agility
Discipline FocusSource Alfred Marcus, Big
Winners and Big Losers The 4 Secrets of
Long-term Business and Failure
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The Benefits of FOCUSED EXCELLENCE
Shouldice/Hernia Repair 30 min, 1
recurrence. Avg 90 min, 10-15
recurrence.Source Complications, Atul Gawande
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FBR Fundamental Intrinsic Value AnalysisFocus
(You know what youre doing)Difference (You
know how
youre doing it)Culture (You
understand the roots)
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Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
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Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
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Beyond the Pension Problem Sedan, Less Than
20,000. Sedan, 20,000-30,000. Sedan,
30,000-40,000. Luxury Sedan. SUV, Less Than
30,000. SUV, More Than 30,000. Pickup Truck.
Minivan. Green Car. Fun To Drive.
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This is not a mature category.
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This is an undistinguished category.
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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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To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/2003
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Value innovation is about making the
competition irrelevant by creating uncontested
market space. We argue that beating the
competition within the confines of the existing
industry is not the way to create profitable
growth. Chan Kim Renée Mauborgne (INSEAD),
from Blue Ocean Strategy (The Times/London)
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, former CEO, Reuters

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Immelt is now identifying technologies with GE
will systematically set out to build entirely
new industries StrategyBusiness, Fall 2005
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Great Companies SET THE AGENDA. (Period.)
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AGENDA SETTERS Set the Table/ Pioneers/
Questors/ AdventurersUS Steel Ford Macys
Sears Litton Industries ITT The Gap
Limited WalMart Tesco PG 3M Intel
IBM Apple Nokia Cisco Dell MCI Sun
Oracle Microsoft Google Enron Schwab GE
Southwest Laker People Express Ogilvy
Chiat/Day Virgin eBay Amazon Sony
Genentech BMW CNN
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Easy!
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FLASH! Innovation is easy!
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Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
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CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
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COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid
of is some ignorant antagonist who has never had
a sword in his hand before he doesnt do the
thing he ought to do, and so the expert isnt
prepared for him he does the thing he ought not
to do and often it catches the expert out and
ends him on the spot. Mark Twain
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How do dominant companies lose their position?
Two-thirds of the time, they pick the wrong
competitor to worry about. Don Listwin, CEO,
Openwave Systems/WSJ/06.01.2004 (commenting on
Nokia)
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Kodak . FujiGM . FordFord . GMIBM .
Siemens, FujitsuSears KmartXerox . Kodak, IBM
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Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributed William Gibson
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Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
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We become who we hang out with!
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Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
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Hard!
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The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma? At the top!
Gary Hamel/Harvard Business Review
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1 RD spending, last 25 years?
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More than GMSource Michael Schrage, FT,
11.05
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Bold!
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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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Five Myths About Changing BehaviorCrisis
is a powerful impetus for changeChange is
motivated by fearThe facts will set us
freeSmall, gradual changes are always easier
to make and sustainWe cant change because our
brains become hardwired early in lifeSource
Fast Company/05.2005
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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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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Speed/ Tempo!
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We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
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He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
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Action!
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TP/BW on BigCo Sin 1 too much talk, too little
do
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
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This adolescent incident of getting from
point A to point B is notable not only because
it underlines Grants fearless horsemanship and
his determination, but also it is the first known
example of a very important peculiarity of his
character Grant had an extreme, almost phobic
dislike of turning back and retracing his steps.
If he set out for somewhere, he would get there
somehow, whatever the difficulties that lay in
his way. This idiosyncrasy would turn out to be
one the factors that made him such a formidable
general. Grant would always, always press
onturning back was not an option for him.
Michael Korda, Ulysses Grant
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Relentless!Churchill, Grant, Patton, Welch,
Bossidy, Nardelli (GE execs), UPS, FedEx,
Microsoft/Gates-Ballmer, Eisner, Weill, eBay,
Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong
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Measurable!
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/
Profundity/ Wow/ Gasp-worthy/
Game-changer Scale?
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Personal!
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Step 1 Buy a Mirror!
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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Summary/The SE22 Origins of Sustainable
Entrepreneurship
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SE22/Origins of Sustainable
Entrepreneurship 1. Genetically disposed to
Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab,
Starbucks, Oracle, Sun, Fox, Stanford
University, MIT) 2. Perpetually determined to
outdo oneself, even to the detriment of
todays winners (Apple, Cirque du Soleil,
Nokia, FedEx) 3. Treat History as the Enemy
(GE) 4. Love the Great Leap/Enjoy the Hunt
(Apple, Oracle, Intel, Nokia, Sony) 5. Use
Strategic Thrust Overlays to Attack Monster
Problems (Sysco, GSK, GE, Microsoft) 6. Establish
a Be on the COOL Team Ethos. (Most PSFs,
Microsoft) 7. Encourage Vigorous
Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as
well as organizationally Decentralized
(GE, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
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HPs Big Duh!Decentralize (90B)Undo
MatrixAccountabilitySource HP Says
Goodbye To Drama/BW/09.05/re Mark Hurds first
5 months
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SummaryWallopWalMart16Or Why its so
unbelievably easy to beat a GIANT Company
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798
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415/SqFt/WalMart798/SqFt/Whole Foods
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7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
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The Small Guys Guide Wallop
WalMart16 Niche-aimed. (Never, ever all
things for all people, a mini-WalMart.) Never
attack the monsters head on! (Instead steal niche
business and lukewarm customers.) Dramatically
Different (La Difference ... within our
community, our industry regionally, etc is as
obvious as the end of ones nose!) (THIS IS WHERE
MOST MIDGETS COME UP SHORT.) Compete on
value/experience/intimacy, not price. (You aint
gonna beat the behemoths on cost-price in 9.99
out of 10 cases.) Emotional bond with Clients,
Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!
)
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3. Re-imagine Organizing I IS/IT as Disruptive
Tool!
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We all live in Dell-WalMart-eBay-Google World!
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the FedEx Economy headline/New York
Times/10.08.05
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Any3 Anything/ Anywhere/ Anytime
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UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes
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Power Tools for Power Solutions/ Strategies!
TP
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4. Re-imagine Organizing II What Organization?
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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TP In Nagano Revenue 10BFTE 1Maybe
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Not out sourcingNot off shoringNot near
shoringNot in sourcingbut Best Sourcing
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global innovation networks vs research in
large monolithic companies Source George
Colony/Forrester Research
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5. Re-imagine Organizing III The White-Collar
Tsunami and the Professional Service Firm (PSF)
Imperative.
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Disintermediation is overrated. Those who
fear disintermediation should in fact be afraid
of irrelevancedisintermediation is just another
way of saying that youve become irrelevant to
your customers. John Battelle/Point/Advertisin
g Age/07.05
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Answer Professional Service Firm/PSF!Departmen
t Head to Managing Partner, IS HR, RD,
etc. Inc.
120
AnswerPSF
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Game-changing Solutions Core MechanismPSF
(Professional Service Firm model)Wow
Projects (Different vs Better)Brand
You(Distinct or Extinct)
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The PSF35 Thirty-Five Professional Service
Firm Marks of Excellence
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The PSF35 The Work The
Legacy1. CRYSTAL CLEAR POINT OF VIEW (Every
Practice Group If you cant explain
your position in eight words or less, you dont
have a positionSeth Godin)2. DRAMATIC
DIFFERENCE (We are the only ones who do what
we doJerry Garcia)3. Stretch Is Routine
(Never bite off less than you can
chewanon.)4. Eye-Appetite for Game-changer
Projects (Excellence at Assembling Best
TeamFast) 5. Playful Clients (Adventurous
folks who unfailingly Aim to Change the
World)6. Small Uneconomic Clients with Big
Aims 7. Life Is Too Short to Work with Jerks
(Fire lousy clients)8. OBSESSED WITH LEGACY
(Practice Group and Individual Dent the
UniverseSteve Jobs)9. Fire-on-the-spot Anyone
Who Says, Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a
commodity 10. Consistent with 9 above DO
NOT SHY AWAY FROM THE WORD (IDEA)
RADICAL
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Best is not good enough!
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?????Do good (excellent?!) workMake a lot of
money
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Point of View!
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R.POV8Remarkable Point Of View/8 Words or
less/If you cant state your position in eight
words or less you dont have a position.SG
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Gasp-worthy!
129
The PSF35 The Client
Experience11. Always team with client full
partners in achieving memorable results
(Wanted Chimeras of Moonstruck
Minds!)12. We will seek assistance Anywhere to
assemble the Best-in- Planet Team for the
Project13. Client Team Members routinely declare
that working with us was the Peak
Experience of my Career14. The jobs not done
until implementation is 100.00 complete
(Those who dont get it must go)15.
IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT
HAS EXPERIENCED CULTURE CHANGE16.
IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT
TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT
(Teach a man to fish )17. The Final
Exam DID WE MAKE A DRAMATIC, LASTING,
GAME-CHANGING DIFFERENCE?
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The business of selling is not just about
matching viable solutions to the customers that
require them. Its equally about managing the
change process the customer will need to go
through to implement the solution and achieve the
value promised by the solution. (E.g. CRM
failure rate/Gartner 70) Jeff Thull, The
Prime Solution Close the Value Gap, Increase
Margins, and Win the Complex Sale
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The PSF35 The People The
Leadership18. TALENT FANATICS (Best-Coolest
place to work) (PERIOD)19. EYE FOR THE PECULIAR
(Hiring Go beyond same old, same old)
20. Early Opportunities (vs. Wait your turn)
21. Up or Out (Based on Legacy/Mentoring as
much as Billings/Rainmaking)22. Slide
the Old Aside/Make Room for Youth (Find oldsters
new roles?)23. TALENT IS OBSESSED WITH
RENEWAL FROM DAY 1 TO DAY R R
Retirement24. Office/Practice Leaders Evaluated
Primarily on Mentoring-Team Building
Skills 25. A PROPRIETARY TALENT DEVELOPMENT
PROCESS (GE) 26. Team Leadership Skills Valued
Early27. Partner with B.I.W. Best In World
Outsiders as Needed and to Infuse Different
Views
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The PSF35 The Firm The
Brand28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My
life is my messageGandhi) 29. Excellence
in EXECUTION 100.00 of the Time (No such
thing as a small sins/World Series Ring to
the Batboy!) 30. Drop everything/Swarm to
Support a Harried-On The Verge Team31.
SPEND AS AGGRESSIVELY ON RD AS A TECH FIRM OR
CIRQUE DU SOLEIL 32. A PROPRIETARY
METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old
EDS)33. Web (Technology) Obsession 34.
BRAND/LOVEMARK MANIACS (Organize Around a
Point of View Worth BROADCASTING You must
be the change you wish to see in the
worldGandhi) 35. PASSION! ENTHUSIASM! (Passion
Enthusiasm have as much a place at the
Head Table in a PSF as in a widgets
factory You cant behave in a calm, rational
manner. Youve got to be out there on the
lunatic fringeJack Welch)
133
Static/ImitativeIntegrity.Quality.Excellence.
Continuous Improvement.Superior Service (Exceeds
Expectations.)Completely Satisfactory
Transaction.Smooth Evolution.Market
Share.Dynamic/DifferentDramatic
Difference!Disruptive!Insanely Great!
(Quality)Life-(Industry-)changing
Experience!Game-changing!WOW!Surprise!Delight!
Breathtaking!Punctuated Equilibrium!Market
Creation!
134
The Pursuit of Unassailable Value-AddedTom
Peters/07March06
135
PSF BY WP VA
136
PSF BY WP DD E UVA
137
PSF (Professional Service Firm) BY (Brand You)
WP (WOW Projects) DD (Dramatic Difference)
E (Excellence) UVA (Unassailable
Value-Added)
138
The WOW! Project.
139
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.
140
Insanely Great
141
Astonish me! /S.D.Build something great!
/H.Y.Immortal! /D.O.
142
6. Re-imagine Businesss Fundamental Value
Proposition PSFs Unbound, or Fighting
Inevitable Commoditization via The
Gamechanging Solutions Imperative.
143
Up, Up, Up, Up the Value-added Ladder.
144
Big Idea Corporation as Mega-PSF
Virtual Collection of Entrepreneurially-minded
Professionals (Talent/Roster) Creating/
Applying Intellectual Capital (Work Product)
145
55B
146
And the M Stands for ?Gerstners IBM
Systems Integrator of choice./BW (Lou, help
us turn all this into that long-promised
revolution. ) IBM Global Services
(Integrated Systems Services Corp.) 55B
147
Planetary Rainmaker-in-Chief!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
148
Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/2004
149
And MasterCard Advisors
150
Bear In Mind Customer Satisfaction versus
Customer Success
151
The Value-added Ladder/Stuff n ThingsGoods
Raw Materials
152
The Value-added Ladder/Stuff TransactionsServ
icesGoods Raw Materials
153
The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions/Business
AdvantageServicesGoods Raw Materials
154
Game-changing Solutions Core MechanismPSF
(Professional Service Firm model)Wow
Projects (Different vs Better)Brand
You(Distinct or Extinct)
155
What Isnt Matter Is What Matters section
title, Branded Nation The Marketing of
Megachurch, College Inc., and Museumworld, James
Twitchell
156
Gas ... 1.75 per gallonLipton Iced Tea ..
9.52 per gallonOcean Spray ... 10.00Gatorade
.. 10.17Diet Snapple ... 10.32STP brake
fluid .. 33.60Pepto-Bismol .. 123.20Vicks
NyQuil ... 178.13Evian water . 21.19
(50B-200B)Source Branded Nation The
Marketing of Megachurch, College Inc.,
and Museumworld, James Twitchell (2004)
157
Fleet ManagerRolling Stock Cost Minimization
Officervs/orChief of Fleet Lifetime Value
Maximization Strategic Supply-chain Executive
Via drivers Customer Experience Director
158
7. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
159
Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
160
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
161
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
162
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
163
The Value-added Ladder/Memorable
ConnectionScintillating Experiences
Gamechanging Solutions/Business
AdvantageServicesGoods Raw Materials
164
8. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
165
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
166
The Value-added Ladder/EmotionDreams Come
TrueScintillating Experiences Gamechanging
Solutions/Business AdvantageServicesGoods Raw
Materials
167
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
168
Six Market Profiles1.
Adventures for Sale2. The Market for
Togetherness, Friendship and Love3. The
Market for Care4. The Who-Am-I Market5. The
Market for Peace of Mind6. The Market for
Convictions Rolf Jensen/The Dream Society
How the Coming Shift from Information to
Imagination Will Transform Your Business
169
Six Market Profiles1.
Adventures for Sale/IBM-UPS-GE2. The Market for
Togetherness, Friendship and
Love/IBM-UPS-GE3. The Market for
Care/IBM-UPS-GE4. The Who-Am-I
Market/IBM-UPS-GE5. The Market for Peace of
Mind/IBM-UPS-GE6. The Market for
Convictions/IBM-UPS-GE Rolf Jensen/The Dream
Society How the Coming Shift from
Information to Imagination Will Transform Your
Business
170
IBM, UPS, GE Dream Merchants!
171
9. Re-imagine the Fundamental Selling
Proposition It all adds up to (THE
BRAND.) (THE STORY.)(THE DREAM.)The Love.
172
WHO ARE WE?
173
Brand? Its all about Character!
174
WHATS OUR STORY?
175
Storytelling is the core of culture.
Branded Nation The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
176
WHATS THE DREAM?
177
Nothing Is ImpossibleTo Be Revered As A
HothouseFor World-changing CreativeIdeas That
TransformOur Clients Brands,Businesses, and
ReputationsSource Kevin Roberts/Lovemarks/on
Saatchi Saatchi
178
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
179
Brands have run out of juice. Theyre dead.
Kevin Roberts/Saatchi Saatchi
180
Kevin Roberts Lovemarks!
181
Brand . LovemarkRecognized by
consumers . Loved by PeopleGeneric
PersonalPresents a narrative
.. Creates a Love storyThe promise of
quality A touch of SensualitySymbolic
.. IconicDefined
.. InfusedStatement
.. StoryDefined attributes
... Wrapped in MysteryValues
. SpiritProfessional
... Passionately CreativeAdvertising
agency .. Ideas companySource Kevin
Roberts, Lovemarks
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Tattoo Brand What of users would tattoo the
brand name on their body?
187
Top 10 Tattoo BrandsHarley . 18.9Disney
.... 14.8Coke . 7.7Google .... 6.6Pepsi ....
6.1Rolex . 5.6Nike . 4.6Adidas .
3.1Absolut . 2.6Nintendo . 1.5BRANDsense
Build Powerful Brands through Touch, Taste,
Smell, Sight, and Sound, Martin Lindstrom
188
Up, Up, Up, Up the Value-added Ladder.
189
Lovemark Dreams Come True Awesome
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
190
10. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
191
Women are the majority market Fara
Warner/The Power of the Purse
192
?????????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 consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
193
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
194
FemaleThink/ Popcorn MarigoldMen 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.
195
The Perfect Answer
Jill and Jack buy slacks in black
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Women come out better on almost every count as
investors They are less likely to hold a losing
investment too long, and less likely to wait too
long to sell a winner theyre also less likely
to put too much money into a single investment or
to buy a reputedly hot stock without doing
sufficient research. The Merrill report When
It Comes to Investing, Gender A Strong Influence
on Behavior./Atlantic
198
Women poker players More cautious. More patient.
More disciplined. Bluff with more attention to
the odds. More notes on-line. Learn more and
improve faster. Less emotional, less ego. Know
more about men than men do about them more
effective at exploiting mens attitudes.Source
Ante Up, Ladies As poker mania grips the
nation, more women are mastering the game,
applying their own life lessons to poker and the
lessons of poker to life, Time, 11.05
199
1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
200
10. Womens Market Opportunity No. 1.
201
Why?
202
Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
203
2005
204
11. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
205
2000-2010 Stats18-44 -155 21(55-64
47)
206
B78/60
207
44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
208
The New Customer 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
209
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
210
Mother of All Equations Boomer Geezer Women
Many, Many, Many People Major-Primary Market
for Everything Primary Market For Everything
Expensive In Their Prime And Gathering Steam
Seriously Cool Dudettes Money, All Of.
211
LOVE THOSE BOOMERS Their New Attitudes and
Lifestyles Are a Marketers Dream Cover
story, BW, 10.24.05
212
Sixty Is the New Thirty Cover/AARP/11.03
213
HealthCentury21.Job 1(HC21.J1)Tom
Peters/0206.2006
214
Quality (100K deaths)Evidence/Outcomes-based
medicineIS/IT-in-health(care) revolutionWellness
/PreventionHealthcare to Health
transformationWash your hands!Home-care (as the
population rapidly ages)Med-school
re-orientation Public health emphasis
Mind-boggling (15 years?) social-moral-technologi
cal impact of life sciences (the
Singularity?)H5N1/WMDs/Environmental
degradationRisk assessment (private,
public)Market opportunityPublic vs/ Private
responsibilities partnerships Africa!
(Unconscionable failure to attend to/staggering
Health consequences for all)
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12. Re-imagine the Individual I Welcome to a
Brand You World Distinct or Extinct
216
Globalization1.0 Countries globalizing
(1492-1800)Globalization2.0 Companies
globalizing (1800-2000)Globalization3.0
(2000) Individuals collaborating competing
globallySource Tom Friedman/The World Is Flat
217
One of the defining characteristics of the
change is that it will be less driven by
countries or corporations and more driven by real
people. It will unleash unprecedented creativity,
advancement of knowledge, and economic
development. But at the same time, it will tend
to undermine safety net systems and penalize the
unskilled. Clyde Prestowitz, Three Billion New
Capitalists
218
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
219
26.3
220
Its always showtime. David DAlessandro,
Career Warfare
221
Getting to WOW Through Mastery of The
Sales25.
222
GE (more or less)89 Ridiculously Obvious
Thoughts About Selling StuffTom
Peters/24January2006
223
Getting Things Done The Power
Implementation34.
224
Presentation Excellence The PresX56
225
The Interviewing Excellence The IntX31
226
13. Re-imagine Excellence I The Talent Obsession.
227
The Creative Age is a wide-open game.
Richard Florida, The Rise of the Creative Class
228
Brand Talent.
229
THE FUTURE BELONGS TO SMALL POPULATIONS
WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE
THE TEMPTATION OFOR DO NOT HAVE THE OPTION
OFEXPLOITING NATURAL RESOURCES.Source Juan
Enriquez/As the Future Catches You
230
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
231
Leaders do people. Period. Anon.
232
Les Wexner From sweaters to people!
233
PARCs Bob Taylor Connoisseur of Talent
234
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
235
Hire very good people!
236
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
237
We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years. Ed
Michaels, War for Talent
238
Did We Say Talent Matters?The top software
developers are more productive than average
software developers not by a factor of 10X or
100X, or even 1,000X, but 10,000X. Nathan
Myhrvold, former Chief Scientist, Microsoft
239
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
240
DD21M
241
A review of Jack and Suzy Welchs Winning claims
there are but two key differentiators that set GE
culture apart from the herd First Separating
financial forecasting and performance
measurement. Performance measurement based, as it
usually is, on budgeting leads to an epidemic of
gaming the system. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance ie its
about how you actually do in the context of what
happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Second Putting HR on a par with finance and
marketing.
242
HR doesnt tend to hire a lot of independent
thinkers or people who stand up as moral
compasses. Garold Markle, Shell Offshore HR
Exec (FC/08.05)
243
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
244
Omnicom's acquisitions not for size per se
buying talent deepen a relationship with a
client. (Advertising Age/07.05)Omnicom very
simply is about talent. Its about the
acquisition of talent, providing the atmosphere
so talent is attracted to it. (John Wren)
245
Re-imaginePeople Power The Talent50
246
The Talent501. People
first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE
We are in an Age of Talent/ Creativity/
Intellectual-capital Added.4. Talent
excellence in every part of the
organization.5. P.O.T./Pursuit Of Talent
Obsession.6. HR sits at The Head Table.7. HR is
cool.
247
14. Re-imagine Excellence II Meet the New Boss
Women Rule!
248
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
249
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. Judy B. Rosener, Americas
Competitive Secret Women Managers
250
????????8/500
251
For all the myths of equality that Europe tells
itself, the Continent is by and large a woeful
place for a woman who aspires to lead.
Newsweek/0227.06
252
Her socialist colleagues wont give her an easy
time, but womens time has come. In future there
will be more and more women giving orders to men.
It may be tough on them men , but thats the
way it is. Bernadette Chirac, on French
presidential candidate Segolene Royal
253
15. Re-imagine Leadership for Totally Screwed-Up
Times The Passion Imperative.
254
Lead It Loud!
255
Create a Cause!
256
G.H. Create a cause, not a business.
257
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
258
Think Legacy!
259
In 1933, Thomas J. Watson Sr. gave a speech at
the Worlds Fair, World Peace through World
Trade. We stood for something, right? Sam
Palmisano
260
To win this race, Kerry needs to stop focusing
on Election Day and start thinking about his
would-be presidencys last day. What does he want
his legacy to be? When sixth-graders in the year
2108 read about the Kerry presidency, what does
he want the one or two sentences that accompany
his photo to say? Kenneth Baer/Washington
Post/092604
261
Ah, kids What is your vision for the future?
What have you accomplished since your first
book? Close your eyes and imagine me
immediately doing something about what youve
just said. What would it be? Do you feel you
have an obligation to Make the world a better
place?
262
Find em!
263
The Secret Jack didnt have a vision!
264
Respect em!
265
Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
266
Make It a Grand Adventure!
267
Quests!
268
I dont know.
269
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.
270
Leaderships Mount Everest allow its members
to discover their greatness.
271
The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
272
Trumpet an Exhilarating Story!
273
Leaders dont just make products and make
decisions. Leaders make meaning. John Seely
Brown
274
A key perhaps the key to leadership is
the effective communication of a
story.Howard Gardner/Leading Minds An
Anatomy of Leadership
275
Live Your Story!
276
You must be the change you wish to see in the
world.Gandhi
277
You Your calendarCalendars NEVER lie!!
278
Try It!
279
Sams Secret 1!
280
Insist on Speed!
281
If things seem under control, youre just not
going fast enough. Mario Andretti
282
Demand Action!
283
We have a strategic plan. Its called doing
things. Herb Kelleher
284
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
285
Cut the Crap!
286
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
287
robust dialogue Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
288
Dispense Enthusiasm!
289
BZ I am a Dispenser of Enthusiasm!
290
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
291
Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
292
Excellence. Always.
293
Leader Job No.1Paint Portraits of Excellence!
294
Cirque du Soleil!
295
And the Winner is 1.
Audacity of Vision2. Innovation/RD/Design3.
Talent Acquisition Development4. Resultant
Experience5. Strategic Alliances6.
Operations7. Financial Management8.
Overall/Sustaining Excellence9. Wow!10.
Lovemark!
296
ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Excellence Index/Basket of 32 publicly traded
stocks
297
RadiatePassion!
298
Never apologize for showing feeling. When you
so, you apologize for the truth. Disraeli
299
Charles Handy on the Alchemists Passion was
what drove these people, passion for their
product, passion for their cause. If you care
enough, you will find out what you need to know.
Or you will experiment and not worry if the
experiment goes wrong. Passion as the secret to
learning is an odd secret to propose, but I
believe that it works at all levels and at all
ages. Sadly, passion is not a word often heard
in the elephant organizations, nor in schools,
where it can seem disruptive.
300
Keep It Simple!
301
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
302
JWs 4EsEnergyEnthusiasmEdgeExecutionSp
eed, RFA, Competitive
303
Avoid Moderation!
304
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!
305
Nelsons secret Other admirals more
frightened of losing than anxious to win
306
Free the Lunatic Within!
307
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
308
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
309
!