Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeMasterCard Advisors
Leadership Meetingv16December2005
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Slides at tompeters.com
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The Generals Story. (And Darwins.)
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Everything you thought you knew about everything
is absolutely positively wrong. (Economics,
geopolitics, technology, etc, etc)
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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 Emperor Has No
Clothes!
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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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2. Re-imagine Innovate or Die!
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No Option!
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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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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/032805
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Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
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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/08.11.03
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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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Point of View!/Point of Dramatic Difference!
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You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do.Jerry Garcia
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Insanely Great
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Bold!
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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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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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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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Power Tools for Power Solutions/ Strategies!
TP
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4. Re-imagine Organizing II 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/Advertising
Age/07.05
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Answer PSF!Professional Service
FirmDepartment Head to Managing
Partner, HR IS, RD, etc. Inc.
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Big Idea Corporation as Mega-PSF
(Professional Service Firm) Virtual
Collection of Entrepreneurially-minded
Professionals (Talent/Roster)
Creating/Applying Intellectual Capital (Value
added) to Develop Gamechanging Solutions for
Clients (Gasp-worthy Projects)
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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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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. One of the key
differentiators of our position in the market is
our attention to managing change and making
change stick in our customers organization.
(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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Era 1/Obvious Value Our it works, is
delivered on time (Close)Era 2/Augmented
Value How our it can add valuea useful it
(Solve)Era 3/Complex Value Networks How
our system can change you and deliver business
advantage (Culture-Strategic
change)Source Jeff Thull, The Prime Solution
Close the Value Gap, Increase Margins, and Win
the Complex Sale
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If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the gameit is the game. Lou Gerstner, Who Says
Elephants Cant Dance
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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)
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5. Re-imagine Businesss Fundamental Value
Proposition PSFs Unbound Fighting
Inevitable Commoditization via The Solutions
Imperative.
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Up, Up, Up, Up,Up the Value-added Ladder.
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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 Corporation) 55B
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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
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/07.19.
2004
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Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them?Bob Nardelli, GE Power Systems
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Bear In Mind Customer Satisfaction versus
Customer Success
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New York-Presbyterian 7-year, 500M
enterprise-systems consulting and equipment
contract with GE Medical SystemsSource
NYT/07.18.2004
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Consulting-addedGE Commercial Finance (233B
assets). Gratis advisory service called At the
customer, for the Customer (E.g., GE disciplines
such as Six Sigma, JIT, succession planning,
leadership development) GE Mentor.Source
Michael Neal runs GEs biggest profit engine.
His secret free advice for the clientele,
Forbes, 11.05
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The Value-added Ladder/Stuff TransactionsServ
icesGoods Raw Materials
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The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions ServicesGoods Raw
Materials
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6. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
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The Experience LadderExperiences
Gamechanging Solutions ServicesGoods Raw
Materials
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7. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
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DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
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Experience Ladder/TPDreams Come True Awesome
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
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The Ritz-Carlton experience enlivens the
senses, instills well-being, and fulfills even
the unexpressed wishes and needs of our guests.
from the Ritz-Carlton Credo
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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
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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
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IBM, UPS, GE Dream Merchants!
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8. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
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Women are the majority market Fara Warner/The
Power of the Purse
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Business Purchasing PowerPurchasing mgrs.
agents 51HR gtgt50Admin officers
gt50Source Martha Barletta, Marketing to Women
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The Perfect Answer
Jill and Jack buy slacks in black
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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.
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Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
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9. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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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
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10. Re-imagine the Individual Welcome to a Brand
You World Distinct or Extinct
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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
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Distinct or Extinct
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New Work
SurvivalKit2005 1. Mastery! (Best/Absurdly Good
at Something!)2. Manage to Legacy (All Work
Memorable/Braggable WOW Projects!) 3. A
USP/Unique Selling Proposition (R.POV8
Remarkable Point of View captured in 8 or
less words) 4. Rolodex Obsession (From
vertical/hierarchy/suck up loyalty to
horizontal/colleague/mate loyalty)5.
Entrepreneurial Instinct (A sleepless Eye for
Opportunity! E.g. Small Opp for Independent
Action beats faceless part of Monster
Project)6. CEO/Leader/Businessperson/Closer
(CEO, Me Inc. Period! 24/7!)7. Mistress of
Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber)8.
Sense of Humor (A willingness to Screw Up Move
On) 9. Comfortable with Your Skin (Bring
interesting you to work!)10. Intense Appetite
for Technology (E.g. How Cool-Active is your
Web site? Do you Blog?)11. Embrace Marketing
(Your own CSO/Chief Storytelling Officer)12.
Passion for Renewal (Your own CLO/Chief Learning
Officer) 13. Execution Excellence! (Show up on
time! Leave last!)
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Presentation Excellence The PresX56
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The only reason to give a speech is to change
the world. JFK
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In classical times when Cicero had finished
speaking, the people said, How well he spoke,
but when Demosthenes had finished speaking, they
said, Let us march. Adlai Stevenson
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The Interviewing Excellence The IntX31
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11. Re-imagine Excellence The Talent Obsession.
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Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
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Brand Talent.
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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
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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
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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
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12. Re-imagine Leadership Lead It Loud.
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Create a Cause!
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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
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Find em!
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The Secret Jack didnt have a vision!
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Les Wexner From sweaters to people!
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Leaders do people. Anon.
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Make It a Grand Adventure!
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Quests!
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Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
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Yes!!!!!!!!!!!!!!!!!free to do his or her
absolute best allow its members to discover
their greatness.
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Live Your Story!
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MBWA
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You must be the change you wish to see in the
world.Gandhi
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Demand Action!
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We have a strategic plan. Its called doing
things. Herb Kelleher
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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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Dispense Enthusiasm!
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
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Avoid Moderation!
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Free the Lunatic Within!
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
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BonusExcellence! The Basics/1982-2005
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Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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• Excellence2005 The Bedrock
  Bakers Dozen
• 1. A Bias For Action Is Job One! (Construct a
  Discipline/Culture of EXECUTION!)
• 2. DECENTRALIZATION! ACCOUNTABILITY! (Toms Top
  Two, 1965-2005.)
• 3. Fail. Forward. Fast. (Reward Excellent
  Failures, Punish Mediocre Successes.)
• 4. Metabolic Management Matters! (Hustle!
  Adapt! EAT CHANGE! Win the
• O.O.D.A. Loop WarConfuse Your
  Competitors!)
• 5. INNOVATE or Die. (Game-changers or Bust!
  Lead the Customer! Just Shout NO to
  Immitation!)
• 6. A Damn Good Product. (Pursue Dramatic
  Difference.)
• 7. A Damn Cool Product. (Design Rules!)
• 8. Ride the Value Added Curve to the Sky! (Sell
  GamechangerSolutions Provide Scintillating
• Experiences Become a Dream Merchant
  Strive to Be a Lovemark.)
• 9. Relentlessly Pursue the Big Two Markets.
  (WOMEN Buy Everything
• BOOMERS GEEZERS Have All the Money!)
• 10. Best Talent/Roster Wins! (HR Rules!
  Everyone a Leader! Women Lead Best!
• Weird Matters Most! A Workplace to Brag
  About! Educate for Creativity!)