1
Chinas size does not merely enable low-cost
manufacturing it forces it. Increasingly, it is
what Chinese businesses and consumers choose for
themselves that determines how the American
economy operates. Ted Fishman/The Chinese
Century/The New York Times Magazine /07.04.04
2
One Monday this spring, a forty-three-year-old
sales clerk at the Home Depot in Plano, Texas,
scribbled some updates onto an old resume and
took it to his local copy shop. To his education
and work historya bachelors degree in
industrial engineering and technology, service in
the U.S. Marine Corpshe added a recent
moonlighting job as a handyman and a new career
objective. Ten minutes later, in southern India,
a middle-age Hindu man in a cavernous workplace
began to type the Home Depot clerks words. The
New Yorker /07.05.2004
3
The Ultimate Luxury Item Is Now Made in China
Headline/p1/The New York Times/
07.13.2004/Topic Luxury Yachts made in Zhongshan
4
Chinese Industrial Growth Rate Slows!April 03
to April 04 19.1May 03 to May 04
17.5Source NYT/06.11.04
5
Re-imagine! Tom Peters/15July2004
Motorola/The Breakers
6
Slides at tompeters.com
7
All Bets Are Off!
8
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
9
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
10
Rule 1 A Bias for Action!
11
The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
12
We have a strategic plan. Its called doing
things. Herb Kelleher
13
Fail. Forward. Fast.
14
Sams Secret 1!
15
Fail. Forward. Fast. High-tech Exec
16
Weird Wins!
17
Huh?Quiet, workmanlike, stoic leaders bring
about the big transformations. JC
18
WellingtonNelsonDisraeliChurchillMontgomeryTh
atcher
19
Humble Pastels?T. Paine/P. Henry/A.
Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S.
Grant/W.T. ShermanTR/FDR/LBJ/RR/JFKPatton/Monty/
HalseyM.L. King/C. de Gaulle/M. Gandhi/W.
ChurchillPicasso/Mozart/Copernicus/Newton/Einstei
n/Djerassi/Watson H. Clinton/G. Steinem/I.
Gandhi/G. Meir/M. Thatcher E. Shockley/A.
Grove/J. Welch/L. Gerstner/L. Ellison/B.
Gates/S. Jobs/S. McNealy/T. Turner/R. Murdoch/W.
Wriston/S. Weill A. Carnegie/J.P. Morgan/H.
Ford/S. Honda/J.D. Rockefeller/T.A. Edison
Elizabeth Cady Stanton/Susan B. Anthony/Martha
Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna
Elizabeth Dickinson/Arabella Babb
Mansfield/Margaret Sanger
20
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
21
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
22
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
23
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
24
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
25
How do dominant companies lose their position?
Two-thirds of the time, they pick the wrong
competitor to worry about. Don Listwin, CEO,
Openware Systems/WSJ/06.01.2004 (commenting on
Nokia)
26
Kodak . FujiGM . FordFord . GMIBM .
Siemens, FujitsuSears KmartXerox . Kodak, IBM
27
This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Game Boy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to follow
the leader is this The leader is the leader
precisely because he did something remarkable.
And that remarkable thing is now takenso its no
longer remarkable when you decide to do it.
Seth Godin, Fast Company/02.2003
28
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
29
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, Strategy or Revolution/ Harvard
Business Review
30
Best Talent Wins!
31
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
32
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
33
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
34
Les Wexner From sweaters to people!
35
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
36
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
37
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
38
Women Rule!
39
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
40
Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversity.Source Judy B. Rosener, Americas
Competitive Secret Women Managers
41
Opportunity!

• U.S.
  G.B. E.U. Ja.
• M.Mgt. 41 29 18
  6
• T.Mgt. 4 3 2 lt1
• Peak Partic. Age 45 22 27
  19
• Coll. Stud. 52 50 48 26
• Source Judy Rosener, Americas Competitive
  Secret

42
Leaders Lead!
43
Whoops Great speech, Tom, but you missed the
most important point.
44
Warren, I know you want to be president. But
do you want to do president?
45
33 Division Titles. 26 League Pennants. 14 World
Series Earl Weaver0. Tom Kelly0. Jim
Leyland0. Walter Alston1AB. Tony LaRussa132
games, 6 seasons. Tommy LasordaP, 26 games.
Sparky Anderson1 season.
46
Clarity!
47
To Dont List
48
Challenge!
49
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
50
I dont know.
51
Quests!
52
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.
53
WOW!
54
Language matters! Wow! BHAG! Takes your breath
away!
55
Astonish me! / S.D.Build something great! /
H.Y.Immortal! / D.O.
56
Lets make a dent in the universe.
Steve Jobs
57
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
58
Make Dreams Come True!
59
A Sea of Sameness
60
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
61
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
62
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
63
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
64
From Products and Services to Solutions
65
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
66
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
67
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).
68
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)
69
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
70
IBM/Q3/10.15.03/Rev 5Services/Consulting
11Software 5Hardware -5PCs
-2Technology/Chips -33
71
Solutions Nation/sHP Sun Farmers Group
Northwestern Mutual Financial Network IBM
Flextronics GE Power Systems GE Industrial
Systems Ford Siemens Home Depot Deere
UTC/Otis UTC/Carrier UPS Springs
Industries RCI Equity Office Properties
Omnicom India Singapore Thailand Etc.
72
From Solutions to Scintillating Experiences
73
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
74
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
75
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
76
WHAT CAN BROWN DO FOR YOU?
77
From Scintillating Experiences to Dream Marketing
78
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
79
The Marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and
entertaining.Dreamketing Promote the dream,
not the product.Dreamketing Build the brand
around the main dream.Dreamketing
Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
80
(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
Materials
81
No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
82
The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. The Dream Society
is emerging this very instantthe shape of the
future is visible today. Right now is the time
for decisionsbefore the major portion of
consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will
have to appeal to our hearts, not to our heads.
Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
83
In Denmark, eggs from free-range hens have
conquered over 50 percent of the market.
Consumers do not want hens to live their lives in
small, confining cages. They are willing to pay
15 percent to 20 percent more for the story about
animal ethics. This is classic Dream Society
logic. Both kind of eggs are similar in quality,
but consumers prefer eggs with the better story.
After we debated the issue and stockpiled 50
other examples, the conclusion became evident
Stories and tales speak directly to the heart
rather than the brain. After a century where
society was marked by science and rationalism,
the stories and values are returning to the
scene. Rolf Jensen/The Dream Society How the
Coming Shift from Information to Imagination Will
Transform Your Business
84
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
85
Dreamketings Bedrock Great Design!
86
And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
87
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
88
Design is treated like a religion at
BMW.Fortune
89
We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation.Steve Jobs
90
Catch22 More than a Great Designer!
91
Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
92
Westins Heavenly Bed
93
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer 2002
94
Trends Worth Trillion Pursue the BIG 2
Underserved Markets!
95
Women!
96
?????????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
97
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
98
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
99
FemaleThink/ PopcornMen 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.
100
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
101
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
102
Women dont buy brands. They join
them.EVEolution
103
Purchasing PatternsWomen Harder to convince
more loyal once convinced.Men Snap decision
fickle.Source Martha Barletta, Marketing to
Women
104
2.6 vs. 21
105
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.
106
Boomers Geezers
107
Subject Marketers StupidityIts 18-44,
stupid!
108
Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
109
2000-2010 Stats18-44 -155 21(55-64
47)
110
44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
111
The New Consumer 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
112
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
113
Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly
understood.Peter Francese, founding publisher,
American Demographics
114
No Target MarketingYes Target Innovation
Target Delivery Systems
115
Brand It!
116
WHO ARE WE?
117
WHATS OUR STORY?
118
We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
119
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
120
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
121
Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be Insanely True
to the Brand!Source Sam Hill Glenn Rifkin,
Radical Marketing (e.g., Harley, Virgin, The
Dead, HBS, NBA)
122
Get the Vision Thing Right!
123
G.H. Create a cause, not a business.
124
A key perhaps the key to leadership is
the effective communication of a story.Howard
Gardner Leading Minds An Anatomy of Leadership
125
Leaders Deal in Hope!
126
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
127
Ronald Reagan radiated an almost transcendent
happiness.Lou Cannon, George (08.2000)
128
Im not sure about his politics, but thats not
what made him great. He inspired people. He made
us all feel better about ourselves. bystander,
California, during RR funeral
129
BZ I am a Dispenser of Enthusiasm!
130
Boil It Down!
131
Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the Bullshit that Marks Normal
Industry Behavior.5. A Maniacal Bias for
Execution and Utter Contempt for Those Who
Dont Get It.6. Speed Demons.7. Up or Out.
(Meritocracy Is Thy Name. Sycophancy Is Thy
Scourge.)8. Passionate Hatred of Bureaucracy.9.
Willingness to Lead the Customer and Take the
Heat Associated Therewith. (Mantra Satan
Invented Focus Groups to Derail True
Believers.)10. Reward Excellent Failures.
Punish Mediocre Successes. 11. Courage to Stand
Alone on Ones Record of Accomplishment
Against All the Forces of Conventional
Wisdom.12. A Crystal Clear Understanding of
Brand Power.
132
All You
Need to Know About Strategy1. Do you have
awesome Talent everywhere? (We are the Yankees
of home improvement here in Omaha.) Do you push
that Talent to pursue audacious Quests?2. Is
your Talent Pool loaded with wonderfully peculiar
people who others wouldcall problems?3. Is
your Board of Directors as cool as your product
offerings and does it have50 (or at least
one-third) Women Members?4. Are Innovation and
Entrepreneurship your primary aims?5. Do you
routinely use hot, aspirational words-terms like
Excellence and B.H.A.G. (Big Hairy Audacious
Goal, per Jim Collins) and Lets make a dent in
the Universe (the Word according to Steve
Jobs)?6. Do you subscribe to Jerry Garcias
dictum We do not merely want to be the best of
the best, we want to be the only ones who do what
we do?7. Do you embrace the new technologies
with child-like enthusiasm/revolutionary zeal?8.
Do you serve customers or go berserk
attempting to provide every customer with an
awesome experience that automatically turns
her/him into a raving fan?9. Are your leaders
accessible? Do they wear their passion on their
sleeves? Is yours a hot place to hang out and
learn cool stuff?10. Does integrity ooze out
of every pore of the enterprise? Is We care
your implicit motto?11. Do you understand
business mantra 1 of the 00s DONT TRY TO
COMPETE WITH WALMART ON PRICE OR CHINA ON COST?
(And if you get this last idea, then see the 10
above!)
133
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!
134
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source
Fortune/10.03
135
Technicolor Rules!
136
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
137
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
138
Its no longer enough to be a change agent.
You must be a change insurgentprovoking,
prodding, warning everyone in sight that
complacency is death. Bob Reich
139
In Toms world, its always better to try a
swan dive and deliver a colossal belly flop than
to step timidly off the board while holding your
nose. Fast Company /October2003
140
The Re-imagineers Credo or, Pity the Poor
BrownTechnicolor Times demand Technicolor
Leaders and Boards who recruit Technicolor
People who are sent on Technicolor Quests to
execute Technicolor (WOW!) Projects in
partnership with Technicolor Customers and
Technicolor Suppliers all of whom are in
pursuit of Technicolor Goals and Aspirations
fit for Technicolor Times.WSC
141
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
142
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
143
the wildest chimera of a moonstruck mind The
Federalist on Jeffersons Louisiana Purchase
144
!