Tom Peters ReImagine Business Excellence in a Disruptive Age CSC09.16.2003

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeCSC/09.16.2003
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Slides at tompeters.com
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It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public from the Foreword, Re-imagine
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1. A Brawl with No Rules.
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We are in a brawl with no rules.Paul Allaire
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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
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From Weapon v. Weapon To
Org structure v. Org structure
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The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organizational
Limits.
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Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
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Eric Shinsekis
ArmyFlat.Fast.Agile.Adaptable.Light But
Lethal.Talent/ I Am an Army of
One.Info-intense.Network-centric.
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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
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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
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Boyd
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F86 vs. MiG/Korea/101Bubble canopy (360 degree
view)Full hydraulic controls (The F86 driver
could go from one maneuver to another faster than
the MiG driver)MiG faster in raw
acceleration and turning ability F86 quicker
in changing maneuversBOYD The Fighter Pilot
Who Changed the Art of War (Robert Coram)
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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)
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ManeuveristsBOYD The Fighter Pilot Who
Changed the Art of War (Robert Coram)
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Goal Adaptability, not perfection!Boyd
Hoist the 100 Against Zero Defects flag
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1A. The Destruction Imperative.
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
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Good management was the most powerful reason
leading firms failed to stay atop their
industries. Precisely because these firms
listened to their customers, invested
aggressively in technologies that would provide
their customers more and better products of the
sort they wanted, and because they carefully
studied market trends and systematically
allocated investment capital to innovations that
promised the best returns, they lost their
positions of leadership.Clayton Christensen,
The Innovators Dilemma
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Goal Destruction!
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2. IS/ IT/ Web On the Bus or Off the Bus.
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Goal Revolution!
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2A. The Solutions25.
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1. Its the (OUR!) organization,
stupid!2. Friction free! 3. No STOVEPIPES!4.
Stovepiping is a F.O.Firing Offense.5. ALL on
the web! (ALL ALL.)6. Open access!6. Project
Managers rule! (E.g. Control the purse
strings and evals.)7. VALUE-ADDED RULES!
(Services Rule.) (Experiences Rule.) (Brand
Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS.
Period. We sell PRODUCTIVITY
PROFITABILITY. Period.)9. Solutions Our
culture. 10. Partner with B.I.C.
(Best-In-Class). Period.
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Goal Brutality!
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2B. Beautiful Systems.
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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
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Fred S.s mediocre thesis. Herb K.s napkin.
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Goal BeautifulAesthetic TriumphBreathtaking
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3. The Heart of the Value Added Revolution The
Solutions Imperative.
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordström
and Jonas Ridderstråle, Funky Business
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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique now ... or never
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The Big Day!
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them?Bob Nardelli, GE Power Systems
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Keep In Mind Customer Satisfaction versus
Customer Success
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Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
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UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves
represent.ecompany.com/06.01 (E.g., UPS
Logistics manages the logistics of 4.5M Ford
vehicles, from 21 mfg. sites to 6,000 NA dealers)
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And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
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Goal Transformation! Seamless application of
Total Supply Chain Resources!
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3A. A World of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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WHAT CAN BROWN DO FOR YOU?
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Goal Transformation! Seamless application of
Total Supply Chain Resources!
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3B. Trends Worth Trillion Women Roar.
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (home projects)
80Consumer Electronics 51 Cars 60
(90)All consumer purchases 83 Bank Account
89Health Care 80
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2/3rds working women/50 working wives
5080 checks61 bills53 stock (mutual fund
boom)43 500K95 financial decisions/ 29
single handed
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4.8T Japan9M/27.5M/3.6T Germany
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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The Connection Proclivity in women starts
early. When asked, How was school today? a girl
usually tells her mother every detail of what
happened, while a boy might grunt, Fine.
EVEolution
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Men 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.EVEolution
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Women dont buy brands. They join
them.EVEolution
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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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Goal (Structural) transformation!
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4. THINK WEIRD Creating the High Standard
Deviation Enterprise.
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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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Aiming to beat the competition has the opposite
effect to the one intended. It keeps companies
focused on the competition. When asked to build
competitive advantage, managers typically rate
themselves against competitors, assess what they
do and try to do it better. W. Chan Kim Renée
Mauborgne, Think for YourselfStop copying a
rival/FT/08.11.03
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To grow, companies need to break out of a
vicious cycle of competitive benchmarking,
imitation and pursuit. W. Chan Kim Renee
Mauborgne, Think for Yourself stop copying a
rival, Financial Times/08.11.03
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The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
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SUPPLIERS There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
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EMPLOYEES Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
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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
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BOARDS Extremely contentious boards that
regard dissent as an obligation and that treat no
subject as undiscussable Jeffrey Sonnenfeld,
Yale School of Management
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WEIRD IDEAS THAT WORK (1) Hire slow learners (of
the organizational code). (1.5) Hire people who
make you uncomfortable, even those you dislike.
(2) Hire people you (probably) dont need. (3)
Use job interviews to get ideas, not to screen
candidates. (4) Encourage people to ignore and
defy superiors and peers. (5) Find some happy
people and get them to fight. (6) Reward
success and failure, punish inaction. (7)
Decide to do something that will probably fail,
then convince yourself and everyone else that
success is certain. (8) Think of some
ridiculous, impractical things to do, then do
them. (9) Avoid, distract, and bore
customers, critics, and anyone who just wants to
talk about money. (10) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas That Work 11½ Ideas for
Promoting, Managing, and Sustaining Innovation
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Jim Tom. Joined at the hip. Not.
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Huh?Quiet, workmanlike, stoic leaders bring
about the big transformations.--JC
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Jim Collins vs. Michael Maccobyquiet,
workmanlike, stoicvs. larger-than-life
leaders/ egoists, charmers, risk-takers with
big visions Carnegie, Rockefeller, Edison,
Ford, Welch, Jobs, Gates
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Intrepid, unprincipled, reckless, predatory,
with boundless ambition, civilized in externals
but a savage at heart.
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Herman Melville on JPJ intrepid, unprincipled,
reckless, predatory, with boundless ambition,
civilized in externals but a savage at heart.
from Evan Thomas, John Paul Jones Sailor, Hero,
Father of the American Navy
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Pastels?T. Paine/P. Henry/A. Hamilton/T.
Jefferson/B. FranklinA. Lincoln/U. S. Grant/W.
T. ShermanTR/FDR/LBJ/RR/JFKM.L. KingC. de
GaulleM. GandhiW. ChurchillM.
ThatcherPicassoMozartCopernicus/Newton/Einstein
J. Welch/L. Gerstner/L. Ellison/B. Gates/S.
Ballmer/S. Jobs/S. McNealyA. Carnegie/J. P.
Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
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Goal Adaptability, not perfection!
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5. Leadership2003 Thriving on Chaos.
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ForgetLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
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Im not comfortable unless Im
uncomfortable.Jay Chiat
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The lesson is the importance of relentless
readjustment. At Microsoft they never get it
right, but theyre constantly, relentlessly
adjusting. And somehow, through constant
readjustment practice over time, they gradually
weave their way to the right place. George
Colony, Forrester Research
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If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
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Leaders dump the ones who brung em Nokia, HP,
3M, PerkinElmer, Corning, etc.
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The Cortez Strategy!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
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Goal It is the foremost taskand
responsibilityof our generation to re-imagine
our enterprises, private and public from the
Foreword, Re-imagine Business Excellence in a
Disruptive Age