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Title: Tom Peters


1
Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeEricsson/Plano TX/01.20.2004
2
Slides at tompeters.com
3
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
4
All Bets Are Off.
5
September 11 amounts to World War IIIthe third
great totalitarian challenge to open societies in
the last 100 years. Thomas Friedman/NYT/01.08.20
04
6
The World Must Learn to Live with a Wide-awake
China Headline/FT/11.03
7
1990-2003 Exports 8X (380B) 6 global exports
2003 vs. 3.9 2000 16 of Total Global Growth in
2002.Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
8
397,000,000 fixed phone lines 90X since
1989.Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
9
2003 China-Hong Kong leading producer in 8 of 12
key consumer electronic product areas (gt50
DVDs, digital cameras gt33.33 DVD-ROM drives,
personal desktop and notebook computers gt25
mobile phones, color TVs, PDAs, car
stereos).Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
10
14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
11
There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
12
--79 of U.S. jobs in structurally changed
professions (permanently eliminated jobs)(40K
of 160K U.S. IBM)--As we trade we release more
labor from the service sector because our highly
skilled and highly paid workers lose their
competitive advantage. So we go to the next big
thing. We specialize in innovation. We develop
new products and start new industries. (Erica
Groshen, labor economist, Fed of NY)Source
CNN/Money/01.07.2004
13
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
14
Solution Re-brand Singapore from the place
that works to the place thats cool (and
works, too)
15
A California biotechnology company has put the
entire sequence of the human genome on a single
chip, allowing researchers to readily conduct
single experiments on the complex relationships
between the 30,000 genes that make up a human
being in. Page 1, Financial Times/10.03.2003
16
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
17
2. The Destruction Imperative.
18
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
19
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
20
Far from being a source of comfort, bigness
became a code for inflexibility. John
Micklethwait Adrian Wooldridge, The Company
21
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
22
The New Ge WayDYB.com
23
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
24
Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company
25
3. The White Collar Revolution the Death of
Bureaucracy.
26
Steel 75 million tons in 82 to 102 million tons
in 02. 289,000 steelworkers in 82 to 74,000
steelworkers in 02. Source Fortune/11.24.03
27
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
28
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
29
Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Wooldridge
30
4. IS/ IT/ Web On the Bus or Off the Bus.
31
100 square feet
32
Our entire facility is digital. No paper, no
film, no medical records. Nothing. And its all
integratedfrom the lab to X-ray to records to
physician order entry. Patients dont have to
wait for anything. The information from the
physicians office is in registration and vice
versa. The referring physician is immediately
sent an email telling him his patient has shown
up. Its wireless in-house. We have 800
notebook computers that are wireless. Physicians
can walk around with a computer thats
pre-programmed. If the physician wants, well go
out and wire their house so they can sit on the
couch and connect to the network. They can review
a chart from 100 miles away. David Veillette,
CEO, Indiana Heart Hospital (HealthLeaders/12.2002
)
33
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
34
The mechanical speed of combat vehicles has not
increased since Rommels day, so the difference
is all in the operational speed, faster
communications and faster decisions. Edward
Luttwak, on the unprecedented pace of the move
toward Baghdad
35
Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
36
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
37
5. The Heart of the Value Added Revolution The
Solutions Imperative.
38
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
39
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
40
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
41
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
42
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
43
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
44
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).
45
You are headed for commodity hell if you dont
have services. Lou Gerstner, on IBMs coming
revolution (1997)
46
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
47
Keep In Mind Customer Satisfaction versus
Customer Success
48
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
49
E.g. UTC/Otis Carrier boxes to integrated
building systems
50
Leased AC Units of Coolth
51
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)
52
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes, upon naming UPS Company of the
Year in Y2000
53
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
54
IBM/Q3/10.15.03/Rev 5Services/Consulting
11Software 5Hardware -5PCs
-2Technology/Chips -33
55
6. A World of Scintillating Experiences.
56
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
57
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
58
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
59
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
60
WHAT CAN BROWN DO FOR YOU?
61
The Experience LadderExperiences
ServicesGoods Raw Materials
62
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
63
Message Experience is the Last 80P.S.
Experience applies to all work!
64
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
65
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
66
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
67
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
68
7. It all adds up to THE BRAND.
69
WHO ARE WE?
70
WHATS OUR STORY?
71
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
72
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
73
A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
74
8. Boss Job One The Talent Obsession.
75
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
76
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
77
Brand Talent.
78
Model 25/8/53 Sports Franchise GM48 500M
79
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
80
Les Wexner From sweaters to people!
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
The Cracked Ones Let in the LightOur 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
83
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
84
TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
85
Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
86
9. THINK WEIRD the HVA/ High Value Added
Bedrock.
87
THINK WEIRD The High Standard Deviation
Enterprise.
88
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
89
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
90
Generally, disruptive technologies underperform
established established products in mainstream
markets. But they have other features that a few
fringe (and generally new) customers
value.Clayton Christensen, The Innovators
Dilemma
91
Primary Obstacles to Marketing-driven
Change1. Fear of cannibalism.2. Excessive
cult of the consumer/ customer driven/
slavery to demographics, market research and
focus groups.3.Creating sustainable
advantage. Source
John-Marie Dru, Disruption
92
Chivalry is dead. The new code of conduct is an
active strategy of disrupting the status quo to
create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of sustainable
advantage after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.Rich DAveni,
Hypercompetition Managing the Dynamics of
Strategic Maneuvering
93
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
94
To grow, companies need to break out of a
vicious cycle of competitive benchmarking,
imitation and pursuit. W. Chan Kim Renee
Mauborgne, Think for Yourself Stop Copying a
Rival, Financial Times/08.11.03
95
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
96
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
97
10. Leading in Totally Screwed Up Times The
Passion Imperative.
98
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
99
I dont know.
100
Quests!
101
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!)
102
We have a strategic plan. Its called doing
things. Herb Kelleher
103
If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
104
If it works, its obsolete. Marshall McLuhan
105
Im not comfortable unless Im
uncomfortable.Jay Chiat
106
If things seem under control, youre just not
going fast enough.Mario Andretti
107
DG to TP Sam is not afraid to fail.
108
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
109
Audie Murphy was the most decorated soldier in
WW2. He won every medal we had to offer, plus 5
presented by Belgium and France. There was one
common medal he never won
110
the Good Conduct medal.
111
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch, on GEs quality program
112
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
113
Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the Bullshit that Marks Normal
Industry Behavior.5. A Maniacal Bias for
Execution and Utter Contempt for Those Who
Dont Get It.6. Speed Demons.7. Up or Out.
(Meritocracy Is Thy Name. Sycophancy Is Thy
Scourge.)8. Passionate Hatred of Bureaucracy.9.
Willingness to Lead the Customer and Take the
Heat Associated Therewith. (Mantra Satan
Invented Focus Groups to Derail True
Believers.)10. Reward Excellent Failures.
Punish Mediocre Successes. 11. Courage to Stand
Alone on Ones Record of Accomplishment
Against All the Forces of Conventional
Wisdom.12. A Crystal Clear Understanding of
Brand Power.
114
Thank You!
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