Tom Peters ReImagine Enterprise Excellence in a Disruptive Age ACCEDIOrlando04'13'2003

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Tom Peters Re-Imagine!Enterprise
Excellence in a Disruptive AgeACCED-I/Orlando/04
.13.2003
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Slides at tompeters.com
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1. The Destruction Imperative.
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Uncertainty is the only thing to be sure of.
Anthony Muh, head of investment in Asia,
Citigroup Asset management (FT/03.27.2003)
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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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If things seem under control, youre just not
going fast enough.Mario Andretti
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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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2. The White Collar Revolution the Death of
Bureaucracy.
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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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3. The PSF SolutionThe Professional Service
Firm Model.
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Sarah Daddy, what do you do?Daddy Im a
cost center.
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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TP to NAPM You are the Rock Stars of the
B2B Age!
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TP to HRMAC You are the Rock Stars of the
Age of Talent!
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eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
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Model PSF
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(1) Translate ALL departmental
activities into discrete W.W.P.F.
Products.(2) 100 go on the Web.(3)
Non-awesome are outsourced (75??).(4)
Remaining Centers of Excellence are
retained leveraged to the hilt!
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Typically in a mortgage company or financial
services company, risk management is an
overhead, not a revenue center. Weve become more
than that. We pay for ourselves, and we actually
make money for the company.Frank Eichorn,
Director of Credit Risk Data Management Group,
Wells Fargo Home Mortgage (Source sas.com)
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4. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordström
and Jonas Ridderstråle, Funky Business
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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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WHAT CAN BROWN DO FOR YOU?
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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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5. A World of Scintillating/ Awesome/ WOW
Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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The Experience LadderExperiences
ServicesGoods Raw Materials
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1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
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Message Experience is the Last 80P.S.
Experience applies to all work!
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1940 Cake from flour, sugar (raw materials
economy) 1.00 1955 Cake from Cake
mix (goods economy) 2.00 1970
Bakery-made cake (service economy) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
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Its All About EXPERIENCES Trapper to
Wildlife Damage-control ProfessionalTrapper
lt20 per beaver pelt.WDCP 150/problem
beaver 750-1,000 for flood-control piping
so that beavers can stay.Source
WSJ/05.21.2002
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Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
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Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
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First Step (?!) Hire a theater director, as a
consultant or FTE!
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Experience Cirque du Soleil
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DO YOU MEASURE UP?If not, why not?
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Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, Unique now ... or never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
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6. It all adds up to THE BRAND.
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The Heart of Branding
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WHO ARE WE?
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WHATS OUR STORY?
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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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Apple opposes, IBM solves, Nike exhorts, Virgin
enlightens, Sony dreams, Benetton protests.
Brands are not nouns but verbs.Source
Jean-Marie Dru, Disruption
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EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
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1st Law Mktg Physics OVERT BENEFIT 2ND Law
REAL REASON TO BELIEVE 3RD Law DRAMATIC
DIFFERENCESource Jump Start Your Business
Brain, Doug Hall
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WHY DOES IT MATTER TO THE CLIENT?
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EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
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Salt is salt is salt. Right? Not when it comes
in a blue box with a picture of a little girl
carrying an umbrella. Morton International
continues to dominate the U.S. salt market even
though it charges more for a product that is
demonstrably the same as many other products on
the shelf.Tom Asaker, Humanfactor Marketing
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7. Toward Work that Matters The WOW Project.
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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8. WOW Projects for the Powerless A Surefire
Recipe.
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Worlds Biggest Waste Selling Up
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THE IDEA Model F4 Find a Fellow Freak Faraway
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F2F!/K2K!/1_at_T/R.F!A.Freak to
Freak/ Kook to Kook/ One at a Time/
Ready.Fire!Aim.
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TP If you dont LOVE SALES find another life.
(Dont pretend youre a leader.) (See TPs
The Project50.)
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TP If you dont LOVE POLITICS find another
life. (Dont pretend youre a leader.)
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Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
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Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
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9. Re-inventing the Individual A Brand You World
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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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Minimum New Work SurvivalSkillsKit2002MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
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Sams Secret 1!
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Minimum New Work SurvivalSkillsKit2001MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
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My ancestors were printers in Amsterdam from
1510 or so until 1750, and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
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Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
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Invent. Reinvent. Repeat.Source HP banner ad
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10. Leading in Totally Screwed-Up Times The
Passion Imperative
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Purpose.
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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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Attitude.
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BZ I am a Dispenser of Enthusiasm!
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Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
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Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
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Action.
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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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Focus.
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To Dont List
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Legacy.
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TPs least favorite term StewardshipI
want to have exploited resources, not
conserved resources
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CEO Assignment2002 (Bermuda) Please leap
forward to 2007, 2012, or 2022, and write a
business history of Bermuda. What will have been
said about your company during your tenure?
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Ah, kids What is your vision for the future?
What have you accomplished since your first
book? Close your eyes and imagine me
immediately doing something about what youve
just said. What would it be? Do you feel you
have an obligation to Make the world a better
place?
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Mike.
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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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 BS 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.
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Thank You!