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Title: Tom Peters ReImagine2006 Business Excellence in a Disruptive Age REI. WorkingMaster..24February2006


1
Tom Peters Re-Imagine2006!Business
Excellence in a Disruptive AgeREI.
WorkingMaster..24February2006
2
True Title
3
The Incredible, Wild, Whacky, Scary, SuperCool
Future and Why Were Not Even Remotely
Prepared, and What We Can Do About It, for the
Sake of of Our Careers, Work and Organizations A
Musing on Strategies, Tactics, Attitudes, Tips,
and General Observations, Such as Why a CFO
Should Never Be Promoted to CEO, Why all Big
Mergers stink (except on Wall Street _at_ bonus
time), Why scale economies are over-rated, How to
beat WalMart, Why All MBA Programs Should Be
Closed, How the 2Bs (Bentonville and Beijing)
Became the Co-capitols of the Universe, Why Only
Freaks Get Things Done (in Freaky Times), Why
Outrageously Audacious Devotion to Game-changing
Innovation Is the Premier Survival Requisite,
Why Decentralization is still the most Potent
Medicine available, Why Women Are Better Leaders
Than Men (and They Also Buy Everything, Though
Just Try Telling That to the Worlds Advertising
Geniuses), Why Hospitals are The Killing
Fields, and How UPS IBM Are Actually All About
Love!
4
China!
5
China!
6
China!
7
China
8
Ch
9
THREE BILLION NEW CAPITALISTS Clyde Prestowitz
10
3,000,000,000
11
Re-imagine! Not Your Fathers World I.
12
26m
13
THE CUSTOMER IS GOD AND THE MARKET DECIDES
EVERYTHINGSource Banner, Hua Xin Dress Co,
Ltd., Rongcheng Industry Zone
14
The Ultimate Luxury Item Is Now Made in China
Headline/p1/The New York Times/
07.13.2004/Topic Luxury Yachts made in Zhongshan
15
A Return to Quotas Limits on Textiles Could
Push China Toward Making Upscale Goods
Headline, NYT, 11.05
16
Vaunted German Engineers Face Competition From
China Headline, p1/WSJ/07.15.2004
17
U.S. manufacturers and retailers are shifting
their domestic warehouses and distribution
facilities to China as they seek to make supply
chains more efficient Headline, page 1,
Financial Times, 11.07.2005
18
43h
19
Chinas Next Export Innovation McKinsey
Quarterly (Cover Story)
20
From Gunpowder to the Next Big Bang Modern
China Is Set to Get Creative Headline, NYT,
11.05
21
2007 CgtE
22
2003 98 U.S.2005 U.S. 150 Shanghai
500
23
168/18,500/51,000
24
1 Houston/Month/15
25
Chinas share of global consumption/2005Cement
47Cotton 37Coal 30 Steel
26Source BusinessWeek/08.05
26
Savings, internal investment, external
investment gt 50 GDP
27
2.5M vs 7.1M40/40
28
Suddenly, China is the No. 3 consumer of
high-end goodsSource BusinessWeek, 0206.06
(from To Get Rich Is Glorious)
29
35/70
30
600,000350,00070,000
31
600,000/engineering degrees/2004/China350,000/e
ngineering degrees/2004/India70,000/engineering
degrees/2004/U.S.A.Source Rising Above the
Gathering Storm/National Academies of
Science/Presidential report/October 2005
32
Beijing Rushes to Build World-class
Universities Headline, International Herald
Tribune, 1028.05Headline, same day China
Bank Becomes a Giant Worth 470 Billion
33
Re-imagine! Not Your Fathers World II.
34
Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.2004
35
There is no job that is Americas God-given
right anymore. Carly Fiorina/HP/January2004
36
Sydney Morning Herald/ 25October2005Quantas.Lay
off thousands of mechanics.Maintenance to China.
37
There is no job that is Australias God-given
right anymore. Tom Peters/10.26.2005
38
No Limits?Short on Priests, U.S. Catholics
Outsource Prayer to Indian Clergy Headline,
New York Times/06.13.04 (Special intentions,
.90 for Indians, 5.00 for Americans)
39
December 9, 2005 Ogre to Slay? Outsource It to
Chinese (New York Times, page 1news section).
The factory Fuzhou, China. The workers
youngsters logging 12-hour shifts. Their
clientele youngsters from Seoul to San
Francisco. The work The Chinese youngsters
are playing the early levels of video games for
their affluent clients, who want to avoid the
pain and time associated with those annoying
first few levels.
40
Developing Nations Lure Retirees, Raising Idea
of Outsourcing Boomers Golden Years Wall
Street Journal, November 14.2005
41
When I was growing up, my parents used to say
to me Finish your dinnerpeople in China are
starving. I, by contrast, find myself wanting to
say to my daughters Finish your homeworkpeople
in China and India are starving for your job.
Thomas Friedman/06.24.2004
42
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
43
Re-imagine! Not Your Fathers World III.
44
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)
45
Were now entering a new phase of business where
the group will be a franchising and management
company where brand management is central.
David Webster, Chairman, InterContinental Hotels
GroupInterContinental will now have far more
to do with brand ownership than hotel
ownership. James Dawson of Charles Stanley
(brokerage)Source International Herald
Tribune, 09.16, on the sacking of CEO Richard
North, whose entire background is in finance
46
Wall Street is starting to penalize stocks for
anything but organic growth. Advertising
Age/07.05
47
Mergers and acquisitions get the headlines, but
studies show they often end up destroying
shareholder value instead of creating it. Thats
one reason why organic growth is so prized by
corporations and investors. In fact, if you
compare the stock performance of a new index of
23 companies that are masters of organic growth
to the SP500, the Organic Growth Index beat the
SP500 handily, 31 vs. 22 over the year ending
January 2004. And looking further back at a
five-year period ending in 2002, the OGI walloped
the SP500, 25 vs. 3. Fortune.com/06.03.2004
(The OGI includes WalMart, Sysco,
Harley-Davidson, Bed, Bath Beyond, NVR)
48
Top Line, Anyone?Point
(Advertising Age), to Phil Kotler Who should
the CMO Chief Marketing Officerreport
to?Kotler Maybe a Chief Revenue Officer the
cost side has been squeezed, now companies have
to focus on top-line growthor maybe a Chief
Customer Officer. (TP Or maybe both!)
49
Analysts said we dont care about revenue, just
give us the bottom line. They preferred cost
cutting, as long as they could see two or three
years of EPS growth. I preached revenue and the
analysts eyes would glaze over. Now revenue is
in because so many got caught, and earnings
went to hell. They said, Oh my gosh, you need
revenues to grow earnings over time. Well,
Duh! Dick Kovacevich, Wells Fargo (in ABA
Banking Journal)
50
Get better vs Get different
51
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control? Or evolution
and learning? Do we think that progress
requires a central blueprint? Or do we see it as
a decentralized, evolutionary process? Do we
see mistakes as permanent disasters? Or the
correctable byproducts of experimentation? Do
we crave predictability? Or relish surprise?
These two poles, stasis and dynamism,
increasingly define our political, intellectual
and cultural landscape. Virginia Postrel, The
Future and Its Enemies
52
The Creative Age is a wide-open game. Richard
Florida, The Rise of the Creative Class
53
The Generals Story. (And Harrys) (And Darwins)
(And James Yorkes) (And the Admirals.)
54
If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
55
We eat change for breakfast! Harry Quadracci,
QuadGraphics
56
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
57
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
58
Nelsons secret Other admirals more
frightened of losing than anxious to win
59
My Story. (And Charles.)
60
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
61
Point of View!/Point of Dramatic Difference!
62
Importance of Success Factors by Various
Gurus/Estimates by Tom Peters
Strategy Systems Passion Execution
Porter 50 20 15
15Drucker 35 30
15 20Bennis 25
20 30 25Peters
15 25 25 35
63
Importance of Success Factors by
VariousGurus/ (Unreliable)
Estimates by Tom Peters
Strategy Systems People Passion
Porter 50 20 20
10 Drucker 30 35
20 15 Bennis
25 20 30 25
Peters 15 20
35 30
64
Charles Handy on the Alchemists Passion was
what drove these people, passion for their
product or their cause. If you care enough, you
will find out what you need to know. Or you will
experiment and not worry if the experiment goes
wrong. Passion as the secret to learning is an
odd secret to propose, but I believe that it
works at all levels and at all ages. Sadly,
passion is not a word often heard in the
elephant organizations, nor in schools, where it
can seem disruptive.
65
Excellence! The Basics, 1982-2006
66
X82/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
67
ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Excellence Index/Basket of 32 publicly traded
stocks
68
In Search of Excellence is all about People.
Emotion. Engagement. Empowerment. Caring.
69
Hardball Are You Playing to Play or Playing to
Win? by George Stalk Rob Lachenauer/HBS
PressThe winners in business have always
played hardball. Unleash massive and
overwhelming force. Exploit anomalies.
Threaten your competitors profit sanctuaries.
Entice your competitor into retreat.Approximat
ely 640 Index entries Customer/s (service,
retention, loyalty), 4. People (employees,
motivation, morale, worker/s), 0. Innovation
(product development, research development, new
products), 0.
70
My (Less) Dinner with HenriJUSTWHATIZZITUMAKE?
71
M.I.A. Talk. (Present.) Listen. (Interview.)
Connect. (EQ.) Sell. (Life Sales.) Do.
(Execution-Implementation.) Talent.
(Recruit-Develop-Retain.) Project Management.
(Create. Solicit support. Execution.
Adoption-Client Culture Change.) Product.
(It.) Innovation. (Design. Creativity.
Buzz-building. Politics.) Leadership.
(Management.) Diversity. (Cross-cultural
Effectiveness.) Career Creation. (Brand You
life-lifestyle.) Wellness.B.Schools (M.I.A.
or at most B.I.A.barely in action)
72
Noble BillThis is not to denigrate emphasis
on leadership, entrepreneurship, management and
global business WFSSource Brave New World,
Bold New B-School/Tim Westerbeck/BizEd/08.04
73
  • Excellence2006 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! Shout NO to Imitation!)
  • 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!)

74
Re-imagine! Speech Story Line in 100 Words or
Less Tom Peters/2006
75
  • Re-imagine! Speech Story Line
    in 100 Words or Less
  • Wildly altered context (technology, China-India,
  • global terrorism, etc)
  • Only answer adaptive skills and
    bold-breathtaking innovation
  • (top-line focus rather than cost-cutting
    focus)
  • 3. Race way, way up the value-added curve
    (implemented game-altering solutions rather
    than services, experiences rather than
    transactions, and much more)
  • 4. As part of value-added exercise, pursue Ripe
    Enormous new marketsWomen, Boomers Geezers
  • 5. Radical (!!!) use of IS-IT
  • A Roster of Weird Wondrous Entrepreneurial
    Talent engaged in Wow Projects
  • Metabolic Leadership (Passionate-Radical
    Leaders who instill a Discipline of Execution, a
    Quick Tempo-Adaptive Culture and
  • an appetite to Eat Radical Change for
    Breakfast)
  • (96
    words by my count)

76
Everything You Need to Know about
Strategy Toms Bakers Dozen Axioms 1. Do
you have awesome Talent everywhere? Do you push
that Talent to pursue Gaspworthy
Quests? 2. Is your Talent Pool loaded with
wonderfully peculiar people who others wouldcall
problems? And what about your Extended
Community of customers, vendors et al? 3. Is your
Board of Directors as cool as your product
offerings and does it have50 percent (or at
least one-third) Women Members? 4. Long-term,
its a Top-line World Is creating a culture
that cherishes above all things Innovation and
Entrepreneurship your primary aim? Remember
Innovation not Imitation! 5. Are the Ultimate
Rewards heaped upon those who exhibit an
unswerving Bias for Action, to quote the
co-authors of In Search of Excellence? 6. 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)?
Is Reward excellent failures, punish mediocre
successes your de facto motto? 7. 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? 8. Do you
elaborate on and enhance Jerry Gs dictum by
adding, We subscribe to Best Sourcingand only
want to associate with the best of the best.
9. Do you embrace the new technologies with
child-like enthusiasm and a revolutionarys
zeal? 10. Do you serve and satisfy customers
or go berserk attempting to provide every
customer with an awesome experience that does
nothing less than transform the way she or he
sees the world? 11. Do you understand to your
very marrow that the two biggest under-served
markets are Women and Boomers-Geezers? And that
to take advantage of these two Monster Trends
(FACTS OF LIFE) requires fundamental re-alignment
of the enterprise? 12. Are your leaders
accessible? Do they wear their passion on their
sleeves? Does integrity ooze out of every pore of
the enterprise? Is We care your implicit
motto?
77
13. Do you understand Business Mantra 1 of the
00s DONT TRY TO COMPETE WITH WALMART ON PRICE
OR CHINA ON COST?
78
This I Believe Toms
Super-TIB251. TECHNICOLOR Times.2. Passion!
Enthusiasm! Energy!3. Action/R.F.A./O.O.D.A.
Speed.4. Screw-ups. BIG SCREW-Ups!5. Mess!
Improv!6. Revolution! Re-imagine!7. INNOVATE OR
DIE! 8. Decentralize!9. Bulk is BULL! (Mergers
dont work. FOCUS Does!)10 Different gt
Better11. eALL/Power Tools for Power
Strategies!12. Forgetting/Destruction.13. Hot
Language Matters!14. WOW!/WOW Projects.15. VA
Bedrock The PSF. (Professional Service
Firm.)16. Daring.17. Talent Time! Leaders Do
People!18. Talent/Diversity.19. Talent/Women
Rule!20. Brand You Universe.21. Design!22.
Gasp-worthy Experiences/Lovemarks.23. New Market
Demographics/Women/Boomers Geezers/Green/Wellnes
s.24. Grace.25. EXCELLENCE!
79
Everybodys Story.
80
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
81
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
82
Thaksinomics (after Thaksin Shinawatra, PM)/
Bangkok Fashion City managed asset reflation
(add to brand value of Thai textiles by
demonstrating flair and design
excellence)Source The Straits Times/2004
83
Where Having Fun Is Now O.K. headline
NYT/04.24.05/an article about SingaporeIts
still illegal to chew gum in Singapore, but
having fun in the formerly staid city-state is
now officially sanctioned.
84
Better By Design A National StrategyNZ
Design Excellence
85
Chinese Apparel Makers Increasingly Seek the
Creative Work headline/NYT/08.05
86
MADE IN TAIWAN From Cheap Manufacturing to
Chic Branding Headline/Advertising Age/06.05
87
What an Evolving-Bizarre Story E.g., Life
Sciences
88
WE ARE BEGINNING TO ACQUIRE DIRECT AND
DELIBERATE CONTROL OVER THE EVOLUTION OF ALL
LIFE FORMS ON THE PLANET.Source Juan
Enriquez, As The Future Catches You
89
On February 12, 2001, anyone with access to the
Internet Could suddenly look at a new atlas
One containing the whole human genome.
Source Juan Enriquez, As The Future Catches You
90
Radical Evolution The Promise and Peril of
Enhancing Our Minds, Our Bodiesand What It
Means to Be Human, Joel Garreau
91
GRIN Genetics, Robotics (nanotech), Information,
NanotechSource Radical Evolution The Promise
and Peril of Enhancing Our Minds, Our Bodiesand
What It Means to Be Human, Joel Garreau
92
We face the biggest change in tens of thousands
of years in what it means to be human. In
just 20 years the boundary between fantasy and
reality will be rent asunder. (Rodney Brooks,
AIL/MIT) We are at an inflection point in
history. It is about the defining cultural,
social, and political issue of our age. It is
about human transformation. Source Radical
Evolution The Promise and Peril of Enhancing
Our Minds, Our Bodiesand What It Means to Be
Human, Joel Garreau
93
Soldiers having no physical, physiological, or
cognitive limitations will be key to survival and
operational dominance in the future. Michael
Goldblatt, Director, Defense Sciences
Office/DARPASource Radical Evolution The
Promise and Peril of Enhancing Our Minds, Our
Bodiesand What It Means to Be Human, Joel Garreau
94
the metabolically dominant soldierSource
Radical Evolution The Promise and Peril of
Enhancing Our Minds, Our Bodiesand What It Means
to Be Human, Joel Garreau
95
Gregory Stock, Director, Program on Medicine,
Technology and Society, UCLA Redesigning Humans
Our Inevitable Genetic FutureSource Radical
Evolution The Promise and Peril of Enhancing Our
Minds, Our Bodiesand What It Means to Be Human,
Joel Garreau
96
Singularity/ Bionic Tom, circa 2006
Medtronic pacemaker (heart micro-management)
psychotropics (mental micro-management) Google
(mind-extensionsmart-beyond-measure) Samsung
cell phone (instant-permanent planetary
connectedness) Orvis shirt (smart skin)
97
H5N1
98
I. NEW BUSINESS. NEW CONTEXT.
99
1. Re-imagine Permanence The Naked Emperor
Problem!
100
Pathetic!
101
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
102
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
103
Never Home Free Sears, Macys WalMart,
Target, CostCoBankAmerica, Citigroup
Fidelity, Commerce Bank, Carlyle Group, Lending
Tree, PayPalIBM/O MicrosoftIBM/N Infosys
Microsoft Google US Steel, Bethlehem
NucorHoward Johnsons McDonalds,
StarbucksGM, Ford Honda, Hyundai,
TataATT/Western Electric Avaya, CiscoRCA
Sony, Nintendo, Nokia, Samsung
104
Exit, Stage Right CEO departure rate,
1995-2004 300Source Booz Allen Hamilton
(per USA Today/06.13.05)
105
Headhunter Excellence? (CEO Performance vs SP
500)Korn Ferry/Tom Neff 1.1Heidrick
Struggles/ Gerry Roche -5.2
106
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
107
Lessons Learned. GE. Me.
108
4/40
109
De-cent-ral-iz-a-tion!
110
Ex-e-cu-tion!
111
Ac-count-a-bil-ity!
112
615A.M.
113
2. Re-imagine Innovate or Die!
114
No Option!
115
Innovateor Die!!
116
Brilliant!
117
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/2004)
118
Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting,
efficiency and deal-making. What mattered was the
continual improvement of operations, and that
mindset helped the 152 billion industrial and
finance behemoth become a marvel of earnings
consistency. Immelt hasnt turned his back on the
old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above
all, innovation. BW/2005
119
Resist!
120
Huff. Puff. Consolidate. Now. Or else! This is
it! Macys, Kmart, Xerox, IBM, Microsoft,
TimeWarnerAOL
121
Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
122
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
123
Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the
same company six times and everybody makes money,
but Im not sure were actually innovating.
Our challenge is to take nanotechnology into the
future, to do personalized medicine Jeff
Immelt/2005
124
Sanford Weill, Citigroups Former Leader,
Frustrated As Empire Is DismantledHeadline/NYT
/07.21.05
125
Shremp is one of the last dinosaurs of Germany
Inc. He represents a strategy of acquiring assets
and building empires that just didnt work.
Arndt Ellinghorst/analyst/ Dresdner Kleinwort
Wasserstein
126
Big Shareholders Are Shouting Even Louder
Headline, WSJ, 11.23.05 (re Time Warner,
McDonalds, Knight Ridder, Sovereign Bancorp,
Morgan Stanley, OfficeMax)Attack on McDonalds
Heralds New Order Headline, WSJ, 11.23.05 (re
hedge fund-led activism)
127
Mr Lampert should stick to investing, not
matchmaking. Gretchen Morgenson, Page 1, New
York Times Sunday Business, 11.06.05, The Sears
Catalog of Problems (TP So why does this
S/the Same S keep happening?)
128
Theres A and then theres A.
129
Winning the Merger Game Is Possible--Lots of
deals--Little deals--Friendly deals--Stay
close to core competence--Strategy is easy to
understandSource The Mega-merger Mouse
Trap/Wall Street Journal/02.17.2004 / David
Harding Sam Rovit, Bain Co./re Comcast-Disney
130
Resist?
131
1103.2005/Headline/USA Today Time Warner
Announces 80 Higher Earnings Company Raises
Stock Buyback Goal TP When a so-so companys
stock is in the tank and shareholders are
restless and unimpressed with short-term earnings
boosts and when the company has excess cash on
hand and when the company has utterly no idea how
to invest the excess cash in anything exciting
that will offer a great return that will lift the
share price it can buy back a big hunk of its
stock which not only leads to a probable increase
in share price but also relieves the company of
the crushing burden of having to worry about
doing anything imaginative with the money and it
also puts new wealth in the hands of shareholders
who following the precepts of portfolio theory
can quit worrying for awhile about the hapless,
unimaginative leadership of the buyback company
and instead invest their newfound wealth in a
firm such as Google or Amgen which always is in
need of cash to fund a long list of very cool
ideas which probably will result in the creation
of can you believe it actual underlying and
perhaps even sustainable value.
132
Scale?
133
I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
134
The slumping giant needs to put more pep in its
funds. But size remains a handicap. Fortune
on Fidelity Magellan/1128.05 (Theres a
practical limitation to running a fund of that
size.Chris Traulsen, analyst, Morningstar)
135
Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
136
Spinoffs perform better than IPOs track record,
profits freed from the confines of the parent
more entrepreneurial, more nimble Jerry
Knight/Washington Post/08.05
137
Market Share, Anyone? 240 industries
Market-share leader is ROA leader 29 of the
time Source Donald V. Potter, Wall Street
Journal
138
Market Share, Anyone? 240
industries market-share leader is ROA
leader 29 of the time Profit / ROA leaders
aggressively weed out customers who
generate low returns
Source Donald V. Potter, Wall Street Journal
139
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
140
Focus!
141
Scales Limitations All Strategy Is Local True
competitive advantages are harder to find and
maintain than people realize. The odds are best
in tightly drawn markets, not big, sprawling
ones Title/Bruce Greenwald Judd
Kahn/HBR09.05
142
Big WinnersLousy industry Specialty
(Ignored/No competition) Smaller than
competitors4 Traits Sweet spot Agility
Discipline FocusSource Alfred Marcus, Big
Winners and Big Losers The 4 Secrets of
Long-term Business and Failure
143
Hedge funds are leading a demand for companies
to sharpen their focus or break themselves up.
Headline, Financial Times, 1028.05
144
Sony and the iPod. Not.
145
Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
146
Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
147
Steve Returns from 12 Years in the
WildernessWhats wrong with this
place?Mumble Its the products! Whats
wrong with the products?Mumble THE
PRODUCTS SUCK! THERES NO SEX IN THEM
ANYMORE!Source BW/0206.06
148
My (Less) Dinner with HenriJUSTWHATIZZITUMAKE?
149
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
150
Just Say No to Imitation!
151
Miller Lite didnt stand for anything it was
trying to be a me-too to Budweiser. Graham
Mackay/ CEO/SABMiller/08.05
152
To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/2003
153
The short road to ruin is to emulate the
methods of your adversary. Winston Churchill
154
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)
155
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, former CEO, Reuters

156
Immelt is now identifying technologies with GE
will systematically set out to build entirely
new industries StrategyBusiness, Fall 2005
157
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
158
TV is not dead, but if youre going to do TV,
you have to create stuff that people seek out.
Just because you buy 30 seconds doesnt mean
youll have an impact. You have to do
something remarkable with it. David Lubars,
Creative Director, BBDO (USA Today/1219.2005)
159
This is not a mature category.
160
This is an undistinguished category.
161
When we did it right it was still pretty
ordinary. Barry Gibbons on Nightmare No. 1
162
Choose!
163
Duet Whirlpool washing machine to fabric
care system white goods a sea of
undifferentiated boxes 400 to 1,300 the
Ferrari of washing machines consumer They
are our little mechanical buddies. They have
personality. When they are running efficiently,
our lives are running efficiently. They are part
of my family. machine as aesthetic showpiece
laundry room to family studio / designer
laundry room (complements Sub-Zero refrigerator
and home-theater center)Source New York Times
Magazine/01.11.2004
164
1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
165
The mass market is dead. Consumers look for
either price or quality. The middle is
untenable. Walter Robb/COO/Whole
Foods/Investors Business Daily/06.20.05
166
Cheap vs Cool The OptionsCheap Nowhere to
go except more cheap! Problem the inevitable
next Dell/next /WalMart arrives with new biz
model meanwhile you drift toward more
complexity/ sluggishness, especially if undertake
sizeable mergers.Cool From Cool (with
reasonable costs) to Stay Cool/Better vs
Different. Continue/ Accelerate charge Up the
VA Ladder. Tactics (1) Up the experience
ladder, (2) Gamechanger Innovation. If not
Cool drifts/staggers toward untenable Middle.
167
Easy!
168
FLASH! Innovation is easy!
169
Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
170
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
171
If you worship at the throne of the voice of
the customer, youll get only incremental
advances. Joseph Morone, President, Bentley
College
172
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
173
Axiom Never use a vendor who is not in the top
quartile (decile?) in their industry on RD
spending!Inspired by Hummingbird
174
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
175
How do dominant companies lose their position?
Two-thirds of the time, they pick the wrong
competitor to worry about. Don Listwin, CEO,
Openwave Systems/WSJ/06.01.2004 (commenting on
Nokia)
176
Kodak . FujiGM . FordFord . GMIBM .
Siemens, FujitsuSears KmartXerox . Kodak, IBM
177
Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributed William Gibson
178
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
179
Why Do I love
Freaks? (1) Because when Anything Interesting
happens it was a freak who did it. (Period.)
(2) Freaks are fun. (Freaks are also a pain.)
(Freaks are never boring.) (3) We need freaks.
Especially in freaky times. (Hint These are
freaky times, for you me the CIA the Army
Avon.) (4) A critical mass of
freaks-in-our-midst automatically make
us-who-are-not-so-freaky at least somewhat more
freaky. (Which is a Good Thing in freaky
timessee immediately above.) (5) Freaks are
the only (ONLY) ones who succeedas in, make it
into the history books. (6) Freaks keep us
from falling into ruts. (If we listen to them.)
(We seldom listen to them.) (Which is why most
organizations are in ruts. Make that chasms.)
180
We become who we hang out with!
181
Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
182
Somewhere in your organization, groups of people
are already doing things differently and better.
To create lasting change, find these areas of
positive deviance and fan the flames. Richard
Tanner Pascale Jerry Sternin, Your Companys
Secret Change Agents, HBR
183
Some people look for things that went wrong and
try to fix them. I look for things that went
right, and try to build off them. Bob Stone (Mr
ReGo)
184
The Ten Faces of Innovation/Tom
Kelley The Anthropologist. Master of human
behavior gets the user. The Experimenter.
Mr/Ms Fast Prototyper. The Cross-pollinator.
Explores odd connections. The Hurdler. Master
remover of B.S. roadblocks. The Collaborator.
Brings intriguing combinations of people
together. The Director. Brings out the creative
best from an odd mix of talents. The Experience
Architect. Turns products into
performances. The Set Designer. Creates
fabulous office environments that foster
constant innovation. The Caregiver. Anticipates
customer needs like a magician. The Storyteller.
Creates narratives that capture the spirit of the
group and its products/services/experiences.
185
Hard!
186
The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma? At the top!
Gary Hamel/Harvard Business Review
187
More than 1 RD spending, last 25 years?
188
More than GMSource Michael Schrage, FT,
11.05
189
Bold!
190
No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas
Negroponte
191
CI/6S/Etc ConcernsOlivesDeck ChairsCow Paths
192
On a Scale of 1 to 10My main activity is a
Deck-Chair Shuffling, Cow-Path Paving, Olive-
Reducing Project (DCSP, CPPP, ORP) ____ 1 No
way! 10 Fraid so.
193
Just Say No I dont intend to be known as
the King of the Tinkerers. CEO, large
financial services company
194
The cast at DARPA does not have kind words for
incremental research. DARPAs only charter is
radical innovation, its strategic plan says.
Radical Evolution The Promise and Peril of
Enhancing Our Minds, Our Bodiesand What It Means
to Be Human, Joel Garreau
195
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
196
Five Myths About Changing BehaviorCrisis
is a powerful impetus for changeChange is
motivated by fearThe facts will set us
freeSmall, gradual changes are always easier
to make and sustainWe cant change because our
brains become hardwired early in lifeSource
Fast Company/05.2005
197
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
198
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
199
Speed/ Tempo!
200
We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
201
Strategy meetings held once or twice a year to
Strategy meetings needed several times a week
Source New York Times on Meg Whitman/eBay
202
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
203
Tempo!70-10Boyd/O.O.D.A. Loops
204
70-10/Nebraska/Unk QB 643 yards K.State/ Linemen
spread wide/All legals go out for pass/Defenders
confused tire (Boyd/Tempo is not
speed/Re-arrange the mind of the enemyT.E.
Lawrence)/ By changing the geometry of the game,
and pushing the limits of space and time on the
gridiron, Mike Leach is taking Texas Tech to some
far out places. Michael Lewis (NY Times
Magazine, 12.04.05, on Mike Leach/Texas Tech)
205
Action!
206
TP/BW on BigCo Sin 1 too much talk, too little
do
207
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
208
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
209
We have a strategic plan. Its called doing
things. Herb Kelleher
210
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
211
I saw that leaders placed too much emphasis on
what some call high-level strategy, on
intellectualizing and philosophizing, and not
enough on implementation. People would agree on
a project or initiativeand then nothing would
come of it. Larry Bossidy Ram
Charan/Execution The Discipline of Getting
Things Done
212
Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
213
The Leaders Seven Essential
BehaviorsKnow your people and your
businessInsist on realismSet clear goals and
prioritiesFollow throughReward the
doersExpand peoples capabilitiesKnow
yourself Source Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
214
Action8/VPMR/Peters on BossidyKnowledge/Extern
al Focus (Competitors/Customers)Realism/Truth-te
llingVision Projects (Must add up to Vision)
MilestonesCommitment/EnergyRapidReviewCons
equences (/-)
215
M P V
216
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
217
The person who is a little less conceptual but
is absolutely determined to succeed will usually
find the right people and get them together to
achieve objectives. Im not knocking education or
looking for dumb people. But if you have to
choose between someone with a staggering IQ and
an elite education whos gliding along, and
someone with a lower IQ but who is absolutely
determined to succeed, youll always do better
with the second person. Larry
Bossidy/Execution The Discipline of Getting
Things Done
218
Relentless!Churchill, Grant, Patton, Welch,
Bossidy, Nardelli (GE execs), UPS, FedEx,
Microsoft/Gates-Ballmer, Eisner, Weill, eBay,
Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong
219
This adolescent incident of getting from
point A to point B is notable not only because
it underlines Grants fearless horsemanship and
his determination, but also it is the first known
example of a very important peculiarity of his
character Grant had an extreme, almost phobic
dislike of turning back and retracing his steps.
If he set out for somewhere, he would get there
somehow, whatever the difficulties that lay in
his way. This idiosyncrasy would turn out to be
one the factors that made him such a formidable
general. Grant would always, always press
onturning back was not an option for him.
Michael Korda, Ulysses Grant
220
1 of 2,400615A.M.
221
A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope.JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed-upon
25,000
222
1. Every morning, write a list of
the things that need to be done that day.
2. Do them. Source Hugh
MacLeod/tompeters.com/NPR
223
Measurable!
224
Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/
Profundity/ Wow/ Gasp-worthy/
Game-changer Scale?
225
Immelt on Innovation breakthroughs Pull out
and fund ideas in each business that will
generate gt100M in revenue find best people to
lead (80 throughout GE)Source Fast
Company/07.05
226
Strategic Thrust OverlaySyscoMicrosoft
(Inet, Search)GE (6-Sigma, Workout, etc.)GSK
(7 CEDDs)Apple (Mac)Hyundai (et al.)
(Electronics, etc.)Different from Skunkworks
227
Personal!
228
Step 1 Buy a Mirror!
229
The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
230
Summary/The SE22 Origins of Sustainable
Entrepreneurship
231
SE22/Origins of Sustainable
Entrepreneurship 1. Genetically disposed to
Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab,
Starbucks, Oracle, Sun, Fox, Stanford
University, MIT) 2. Perpetually determined to
outdo oneself, even to the detriment of
todays winners (Apple, Cirque du Soleil,
Nokia, FedEx) 3. Treat History as the Enemy
(GE) 4. Love the Great Leap/Enjoy the Hunt
(Apple, Oracle, Intel, Nokia, Sony) 5. Use
Strategic Thrust Overlays to Attack Monster
Problems (Sysco, GSK, GE, Microsoft) 6. Establish
a Be on the COOL Team Ethos. (Most PSFs,
Microsoft) 7. Encourage Vigorous
Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as
well as organizationally Decentralized
(GE, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
232
HPs Big Duh!Decentralize (90B)Undo
MatrixAccountabilitySource HP Says
Goodbye To Drama/BW/09.05/re Mark Hurds first
5 months
233
DePuySpine/JJ70/3game-changers!Still
decentralized after all these years!
234
No Need for Economies of Scale Illinois Tool
Revs Up Innovation by Keeping Its 655 Units
Separate and Focused Source Headline, BW,
1031.05 (commodity producer RD 1 Top 100
patent recipient66th in 04) (12B rev in 04
CEO David Speer focus, lean, customer intimacy,
entrepreneurial, employee participation)
235
Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
236
SE22/Origins of Sustainable
Entrepreneurship 10. Keep decentralizingtireles
s in pursuit of wiping out Centralizing
Tendencies (JJ, Virgin) 11. Scour the world for
Ingenious Alliance Partners especially
exciting start-ups (Pfizer) 12. Acquire for
Innovation, not Market Share (Cisco, GE) 13.
Dont overdo pursuit of synergy (GE, JJ, Time
Warner) 14. Execution/Action Bias Just do it
dont obsess on how it fits the business
model. (3M, J J) 15. Find and Encourage and
Promote Strong-willed/ Hyper-smart/Independe
nt people (GE, PepsiCo, Microsoft) 16. Support
Internal Entrepreneurs (3M, Microsoft) 17. Ferret
out Talent anywhere/No limits approach to
retaining top talent (Virgin, GE, PepsiCo)
237
SE22/Origins of Sustainable
Entrepreneurship 18. Unmistakable Results
Accountability focus from the get-go to the
grave (GE, New York Yankees, PepsiCo) 19. Up or
Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios
in general) 20. Competitive to a fault! (GE, New
York Yankees, News Corp/Fox,
PepsiCo) 21. Bi-polar Top Team, with Unglued
Innovator 1, powerful Control Freak 2
(Oracle, Virgin) (Watch out when 2 is
missing Enron) 22. Masters of Loose-Tight/Hard-no
sed about a very few Core Values,
Open-minded about everything else (Virgin)
238
HOW THE COAST GUARD GETS IT RIGHT Headline,
Time, 10.31.2005AutonomyFlexibilityPerhaps
the most important distinction of the Coast
Guard is that it trusts itself
239
Productivity Could We Have It
All Wrong (vs China, etc)?Forget GM,
GEConsider Car dealerships, Fast-food outlets,
Tanning salons, Laundromats, Insurance agencies,
Body shops, Contractors Employing 80 of us
240
SummaryWallopWalMart16Or Why its so
unbelievably easy to beat a GIANT Company
241
798
242
415/SqFt/WalMart798/SqFt/Whole Foods
243
4X At London Drugs, everyone cares about
everything. Wynne Powell
244
7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
245
The Small Guys Guide Wallop
WalMart16 Niche-aimed. (Never, ever all
things for all people, a mini-WalMart.) Never
attack the monsters head on! (Instead steal niche
business and lukewarm customers.) Dramatically
Different (La Difference ... within our
community, our industry regionally, etc is as
obvious as the end of ones nose!) (THIS IS WHERE
MOST MIDGETS COME UP SHORT.) Compete on
value/experience/intimacy, not price. (You aint
gonna beat the behemoths on cost-price in 9.99
out of 10 cases.) Emotional bond with Clients,
Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!
)
246
PSF!Donnellys Weatherstrip Service Weymouth
MA
247
The Small Guys Guide Wallop
WalMart16 Hands-on, emotional leadership.
(We are a great cool intimate joyful
dramatically different team working to transform
our Clients lives via Consistently Incredible
Experiences!) A community star! (Sell
local-ness per se. Sell the hell out of it!) An
incredible experience, from the first to last
momentand then in the follow-up! (These guys
are cool! They get me! They love me!) DESIGN
DRIVEN! (Design is a premier weapon-in-pursuit-o
f-the sublime for small-ish enterprises,
including the professional services.)
248
The Small Guys Guide Wallop
WalMart16 Employer of choice. (A very cool,
well-paid place to work/learning and growth
experience in at least the short term marked by
notably progressive policies.) (THIS IS EMINENTLY
DO-ABLE!!) Sophisticated use of information
technology. (Small-ish is no excuse for small
aims/execution in IS/IT!) Web-power! (The Web
can make very small very big if the
product-service is super-cool and one
purposefully masters buzz/viral
marketing.) Innovative! (Must keep renewing and
expanding and revising and re-imagining the
promise to employees, the customer, the
community.)
249
The Small Guys Guide Wallop
WalMart16 Brand-Lovemark (Kevin Roberts)
Maniacs! (Branding is not just for big folks
with big budgets. And modest size is actually a
Big Advantage in becoming a local-regional-niche
lovemark.) Focus on women-as-clients. (Most
dont. How stupid.) Excellence! (A small player
per me has no right or reason to exist unless
they are in Relentless Pursuit of Excellence. One
earns the rightone damn day and client
experience at a time!to beat the Big Guys in
your chosen niche!)
250
Alternate Opener The Relentless Pursuit of
Dramatic Difference
251
Tom Peters Excellence2006 The
Relentless Pursuit of Dramatic
Difference!
252
No Option!
253
If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
254
Not an Answer!
255
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
256
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
257
Tragic!
258
Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
259
All too Common!
260
This is not a mature category.
261
This is an undistinguished category.
262
But It Can Be Done!
263
2/50
264
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
265
2/50
266
798
267
798
268
798
269
798
270
415/SqFt/WalMart798/SqFt/Whole Foods
271
4X At London Drugs, everyone cares about
everything. Wynne Powell
272
London
DrugsEach major department a category killer
(pharmacy, computers, photo-photo finishing,
cosmetics
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