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Tom Peters

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UPS wants to take over the sweet spot in the endless loop of goods, ... SCS /Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; ... – PowerPoint PPT presentation

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Title: Tom Peters


1
Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeStaffing Industry Analysts/
Chicago/03.23.2004
2
Slides at tompeters.com
3
All Bets Are Off.
4
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
5
Jobs TechnologyGlobalization War, Warfighting
Security
6
Jobs New TechnologyGlobalization War,
Warfighting Security
7
The Perfect (Jobs) StormOff-shoringWC
AutomationReluctance to hire
8
14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
9
Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.04
10
We Are Not Alone One Singaporean
worker costs as much as 3
in Malaysia 8 in Thailand
13 in China 18 in India.
Source The Straits Times/08.18.03
11
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
12
WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?
Headline/ Fortune/ 11.03 (We should finally
admit that we do not and cannot know, and regard
that fact with serenity rather than anxiety.)
13
Jobs TechnologyGlobalization War, Warfighting
Security
14
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
15
Jobs TechnologyGlobalization War, Warfighting
Security
16
Asias rise is the economic event of our age.
Should it proceed as it has over the last few
decades, it will bring the two centuries of
global domination by Europe and, subsequently,
its giant North American offshoot to an end.
Financial Times (09.22.2003)
17
The world has arrived at a rare strategic
inflection point where nearly half its
populationliving in China, India and Russiahave
been integrated into the global market economy,
many of them highly educated workers, who can do
just about any job in the world. Were talking
about three billion people. Craig
Barrett/Intel/01.08.2004
18
Indian GDP/1990-2002 Ag, 34 to 21 services,
40 to 56Source The Economist/02.04
19
Level 5 (top) ranking/Carnegie Mellon Software
Engineering Institute 35 of 70 companies in
world are from IndiaSource Wired/02.04
20
In Store International Equality, Intranational
InequalityThe new organization of society
implied by the triumph of individual autonomy and
the true equalization of opportunity based upon
merit will lead to very great rewards for merit
and great individual autonomy. This will leave
individuals far more responsible for themselves
than they have been accustomed to being during
the industrial period. It will also reduce the
unearned advantage in living standards that has
been enjoyed by residents of advanced industrial
societies throughout the 20th century.James
Davidson William Rees-Mogg,The Sovereign
Individual
21
Jobs TechnologyGlobalization War, Warfighting
Security
22
This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
23
Staffing Industry Rant Toms Top
Ten1. Permanent employment is cooked.2. This
is your moment. 3. Staffing is not a commodity
business. It is about PEOPLE!4. Client
GPA 1.98 modal Grade D A lt 10. (And
you wonder why margins are slipping?)5.
Consolidation/bulking up is not the answer.6.
He who adds the most value wins. (P.S. There
are no limits!)7. Add value in niches.8. The
V.A. game Eat or be eaten!9. Talent rules! Best
talent rules (more)!10. There is/should be no
difference between a staffing firms
roster and the New York Yankees!
24
2. The Destruction Imperative.
25
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
26
Rate of Leaving F5001970-1990 4XSource
The Company, John Micklethwait Adrian
Wooldridge (1974-200 One-half biggest 100
disappear)
27
Far from being a source of comfort, bigness
became a code for inflexibility. John
Micklethwait Adrian Wooldridge, The Company
28
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
29
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
30
Conglomerates dont work. James Surowiecki,
The New Yorker (07.01.2002)
31
MERGERS Why Most Big Deals Dont Pay Off. A
BusinessWeek analysis shows that 61 of buyers
destroyed shareholder wealth. BusinessWeek/10.14
.2002
32
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
33
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
34
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
35
3. IS/ IT/ WebOn the Bus or Off the Bus.
36
Dawn Meyerreicks, CTO of the Defense Information
Systems Agency, made one of the most fateful
military calls of the 21st century. After 9/11
her office quickly leased all the available
transponders covering Central Asia. The
implications should change everything about U.S.
military thinking in the years ahead. The U.S.
Air Force had kicked off its fight against the
Taliban with an ineffective bombing campaign, and
Washington was anguishing over whether to send in
a few Army divisions. Donald Rumsfeld told Gen.
Tommy Franks to give the initiative to 250
Special Forces already on the ground. They used
satellite phones, Predator surveillance drones,
and GPS- and laser-based targeting systems to
make the air strikes brutally effective.In
effect, they Napsterized the battlefield by
cutting out the middlemen (much of the militarys
command and control) and working directly with
the real players. The data came in so fast that
HQ revised operating procedures to allow
intelligence analysts and attack planners to work
directly together. Their favorite tool,
incidentally, was instant messaging over a secure
network.Ned Desmond/Broadbands New Killer
App/Business 2.0/ OCT2002
37
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
38
4. The White Collar Revolution.
39
Steel 75,000,000 tons in 82 to 102,000,000 tons
in 02. 289,000 steelworkers in 82 to 74,000
steelworkers in 02. Source Fortune/11.24.03
40
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
41
A bureaucrat is an expensive microchip.Dan
Sullivan, consultant and executive coach
42
Dont own nothin if you can help it. If you
can, rent your shoes.F.G.
43
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
44
Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Wooldridge
45
5. The PSF SolutionThe Professional Service
Firm Model.
46
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
47
TP to HRMAC You are the Rock Stars of the
Age of Talent!
48
DD21M
49
6. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
50
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
51
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
52
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
53
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
54
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
55
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).
56
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)
57
SCS/Supply Chain Solutions 750 locations
2.5B fastest growing division 19 acquisitions,
including a bankSource Fast Company/02.04
58
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
59
John Deere Landscapes This is our future.
60
Architecture is becoming a commodity. Winners
will be Turnkey Facilities Management
providers.SMPS Exec
61
Omnicom 60 (of 7B) from marketing services
62
And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
63
IBM/Q3/10.15.03/Rev 5Services/Consulting
11Software 5Hardware -5PCs
-2Technology/Chips -33
64
FEES! FEES! FEES!Cover Story, BW/09.29.03
65
7. A World of Scintillating Experiences.
66
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
67
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
68
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
69
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
70
WHAT CAN BROWN DO FOR YOU?
71
The Experience LadderExperiences
ServicesGoods Raw Materials
72
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
73
Lexus sells its cars as containers for our sound
systems. Its marvelous.Sidney Harman/ Harman
International
74
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
75
ltTGWvs. gtTGR
76
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
77
8. Boss Job One The Talent Obsession.
78
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
79
Brand Talent.
80
The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others.Warren Bennis Patricia Ward
Biederman, Organizing Genius
81
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
82
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
83
Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
84
My ideal job!
85
9. Leading in Totally Screwed Up Times The
Passion Imperative.
86
G.H. Create a cause, not a business.
87
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
88
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
89
Staffing Industry Rant Toms Top
Ten1. Permanent employment is cooked.2. This
is your moment. 3. Staffing is not a commodity
business. It is about PEOPLE!4. Client
GPA 1.98 modal Grade D A lt 10. (And
you wonder why margins are slipping?)5.
Consolidation/bulking up is not the answer.6.
He who adds the most value wins. (P.S. There
are no limits!)7. Add value in niches.8. The
V.A. game Eat or be eaten!9. Talent rules! Best
talent rules (more)!10. There is/should be no
difference between a staffing firms
roster and the New York Yankees!
90
If things seem under control, youre just not
going fast enough.Mario Andretti
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