Tom Peters

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Tom PetersVision21 We Are In A Brawl With No
RulesEY/Bermuda/11.21.2002
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We are in a brawl with no rules.Paul Allaire
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There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
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All slides at tompeters.com
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1. All Bets Are Off.
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IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY
BEGAN ON SEPTEMBER 11th, 2001. Al-Qaeda
represents a new and profoundly dangerous kind of
organizationone that might be called a virtual
state. On September 11th a virtual state proved
that modern societies are vulnerable as never
before.Time/09.09.2002
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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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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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The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0 (08.00)
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2. Destruction Rules!
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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.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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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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C.E.O. to C.D.O.
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The New Ge WayDYB.com
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
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RM A lot of companies in the Valley fail.RN
Maybe not enough fail.RM What do you mean
by that?RN Whenever you fail, it means
youre trying new things.Source Fast Company
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The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.Newsweek/ Paul Saffo
(03.02)
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Jim Tom. Joined at the hip. Not.
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But what if former head of strategic planning
at Royal Dutch Shell Arie De Geus is wrong in
suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is
fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a
business organization, an artist, an athlete or a
stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of
time, rather than to live forever.Kjell
Nordström and Jonas Ridderstråle, Funky Business
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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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Conglomerates dont work James Surowiecki, The
New Yorker (07.01,2002)
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
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TP on
Acquisitions1. Big Big Disaster.
(Statistically.) (There are exceptions e.g.,
Citigroup.)2. Big (GE, Cisco, Omnicon) acquires
small/specialist Good if you can
retain Top Talent.3. Odds on achieving
projected synergies among Mixed Big
cultures 10.4. Max Scale Advantages are
achieved at a smaller size than imagined.5.
Attacked by Big, Mediocre Medium marries
Mediocre Medium to bulk up. Result Big
Mediocrity or worse.6. Any sizeif Great
Focusedcan win, locally or globally.7.
Increasingly, alliances deliver more value than
mergers and clearly abet flexibility.
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3. Kaizen Is an Abomination.
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Incrementalism is innovations worst enemy.
Nicholas Negroponte
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4. Technicolor Times Call For Technicolor
Responses.
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Dont rebuild. Reimagine.The New York Times
Magazine on the future of the WTC space in Lower
Manhattan/09.08.2002
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5. Forget It! (Learning Easy. Forgetting
Almost Impossible.)
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ForgetgtLearnThe 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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6. Action ALWAYS Takes Precedence.
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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!)
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7. Screw-ups are the Mark of Excellence.
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
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8. Innovation Is Easy Hang Out with Freaks
(Employees, Board Members, Customers, Suppliers,
Alliance Partners, Consultants.)
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Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
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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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Employees 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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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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Alliances Alliances are the best way to stat
both fresh and agile.Lab Director, giant pharma
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Boards I took a look around, as if for the
first time. What a bunch of tired old souls. I
could have kicked myself for letting them stay
on.Retiring CEO, on his Board
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9. Charge Up the Value-added Ladder Sell
Solutions/ Success/ Experiences/Dream
Fulfillment/Design Soul/Brand ALL!
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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 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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The Value-added 5-Step
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Step 1. Satisfaction to Solutions Success
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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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Omnicom 57 (of 6B) from marketing services
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Step 2. Solutions Awesome 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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Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
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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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Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
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WHAT CAN BROWN DO FOR YOU?
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Step 3.Experiences Dream Fulfillment
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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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The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
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Getting Beyond Lip Service!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
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Step 4.The Bedrock Design Soul
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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
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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
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Step 5.The Bottom Line Brand Power
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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
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10. SHE Is the Customer!
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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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4.8T gt Japan9M/27.5M/3.6T gt Germany
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Business Purchasing PowerPurchasing mgrs.
agents 51HR gtgt50Admin officers
gt50Source Martha Barletta, Marketing to Women
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91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
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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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Women dont buy brands. They join
them.EVEolution
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F.Y.I.
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Women Beat Men at Art of InvestingSource
Miami Herald, reporting on a study by Profs.
Terrance Odean and Brad Barber, UC Davis (Cause
Guys are in and out of stocks more often women
choose carefully and hold on for the long term)
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Investment Club ReturnsWomen-only clubs 1997
17.9Mixed 17.3Men-only 15.6Source
National Assoc. Investors
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Value Line Top State Investment Clubs 20008
All male19 Coed22 All FEMALE VT Maine
not included D.C. included
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Notes to the
CEO--Women are not a niche so get this out
of the Specialty Markets group.--The
competition is starting to catch on. (E.g.
Nike, Nokia, Wachovia, Ford, Harley-Davidson,
Jiffy Lube, Charles Schwab, Citigroup,
Aetna.)--If you dip your toes in the water,
what makes you think youll get splashy
results?--Bust through the walls of the
corporate silos.--Once you get her, dont let
her slip away.--Women ARE the long run!
Source Martha Barletta, Marketing to Women
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11. TALENT TIME! (He/She Who Has the Best
Roster Rules!)
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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 (05.17.00)
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25/8/53
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12. SHE Is the Best Leader!
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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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
diversitySource Judy B. Rosener, Americas
Competitive SecretWomen Managers
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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

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63 of 2,500 top earners in F5008 Big 5
partners 14 partners at top 250 law firms43
new med students 26 med faculty 7
deansSource Susan Estrich, Sex and Power
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Diversity defines the health and wealth of
nations in a new century. Mighty is the mongrel.
The hybrid is hip. The impure, the mélange, the
adulterated, the blemished, the rough, the
black-and-blue, the mix-and-match these people
are inheriting the earth. Mixing is the new norm.
Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic growth
and empowers nations.G. Pascal Zachary, The
Global Me New Cosmopolitans and the Competitive
Edge
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13. eALL. (IS/IT Half-way No Way.)
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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 Rene
Tissen, Zero Space Moving Beyond Organization
Limits.
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100 square feet
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Impact No. 1/ Logistics Distribution
WalMart Dell Amazon.com Autobytel.com
FedEx UPS Ryder Cisco Etc. Etc. Ad
Infinitum.
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Autobytel 400. WalMart 13.Source
BW(05.13.2002)
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The Real News X1,000,000TowTruckNet.com
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WebWorld Everything Web as a way to run your
businesss innardsWeb as connector for your
entire supply-demand chain Web as spiders web
which re-conceives the industryWeb/B2B as
ultimate wake-up call to commodity
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
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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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Supposejust supposethat the Web is a new world
were just beginning to inhabit. Were like the
earlier European settlers in the United States,
living on the edge of the forest. We dont know
whats there and we dont know exactly what we
need to do to find out Do we pack mountain
climbing gear, desert wear, canoes, or all three?
Of course while the settlers may not have known
what the geography of the New World was going to
be, they at least knew that there was a
geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It
has nothing natural in it. It has few rules of
behavior and fewer lines of authority. Common
sense doesnt hold here, and uncommon sense
hasnt yet emerged. David Weinberger, Small
Pieces Loosely Joined
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Dawn Meyerreicks, CTO of the Defense
Intelligence 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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Eric Shinsekis (New) ArmyFlat.Fast.Ag
ile.Adaptable.Light But Lethal.Info-intense.
Network-centric. Talent/ I AM AN ARMY OF ONE.
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14. The WHITE-COLLAR REVOLUTION Will
Devour Everything in Its Path.
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108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
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E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
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IBMs Project eLiza! Self-bootstrapping/
Artilects
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Unless mankind redesigns itself by changing our
DNA through altering our genetic makeup,
computer-generated robots will take over the
world. Stephen Hawking, in the German magazine
Focus
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lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 10 years
for paradigm shift 21st century 1000X tech
change than 20th century (the Singularity, a
merger between humans and computers that is so
rapid and profound it represents a rupture in the
fabric of human history)Ray Kurzweil
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15. Take Charge of Your Destiny! 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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I AM AN ARMY OF ONE
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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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16. YOUR CALENDAR KNOWS ALL. (You Calendar.)
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To Dont List
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Danger S.I.O. (Strategic Initiative Overload)
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JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(Throughout) TALENT JACK!
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17. SHOW UP! (If You Care, Youre There.)
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Rudy!
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18. Management Role 1 GET OUT OF THE WAY. (Clear
the Way.) (Manager Hurdle Removal
Professional.)
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Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
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19. WHAT MATTERS IS STUFF THAT MATTERS.
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I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
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G.H. Create a cause, not a business.
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20. Dispense ENTHUSIASM!
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BZ I am a Dispenser of Enthusiasm!
132
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
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21. Shoot for the Stars!
134
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
135
Thank You!