Tom Peters’
Vision21Dow Women’s Innovation Network/
Sao Paulo/11.08.2002
Slides at …
tompeters.com
1. We Are in a …
Brawl with No Rules.
“We are in a
brawl with no rules.”
Paul Allaire
“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
“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
2. TECHNICOLOR TIMES CALL FOR TECHNICOLOR RESPONSES.
(Passion Moves Mountains!)
“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
“Don’t rebuild. Reimagine.”
The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002
3. DESTRUCTION RULES!
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
“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 Innovator’s Dilemma
“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
C.E.O. to
C.D.O.
4. “Kaizen” (Continuous Improvement)
Is Very … Dangerous … Stuff.
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be known as the ‘King of
the Tinkerers.’ ”CEO, large financial services company
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
5. Forget It! (“Learning” = Easy. “Forgetting” =
Nigh on Impossible.)
“Most of our predictions are based
on very linear thinking. That’s why they will
most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
6. Innovation Is Easy:
Hang Out with Freaks (Employees, Board Members,
Customers, Suppliers, Alliance Partners, Consultants.)
Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
7. Charge Up the Value-added Chain:
Sell “Solutions”/ “Success”/ “Experiences”/
“Dream Fulfillment.”
“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
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, Unique … now or never
Step 1: “Satisfaction” to
“Solutions” & “Success”
Gerstner’s 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).
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
Keep In Mind: Customer
Satisfaction versus
Customer
Success
Step 2: Solutions+ =
Awesome Experiences
“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
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“Guinness as a brand is all about community.
It’s about bringing people together and sharing
stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
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
Step 3:Experiences+ =
Dream Fulfillment
“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 it’s financial security, buying a car, paying
for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,
Farmers Group
DREAM: “A dream is a complete moment in the life of a client.
Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The
opportunity to help clients become what they want to be.” —Gian Luigi
Longinotti-Buitoni
The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’ dreams.
Dreamketing: The art of telling stories and entertaining.
Dreamketing: Promote the dream, not the product.
Dreamketing: Build the brand around the main dream.
Dreamketing: Build the “buzz,” the “hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
8. Action …
ALWAYS Takes Precedence.
The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
“Strategy meetings held once
or twice a year” to “Strategy meetings needed several
times a week”
Source: New York Times on Meg Whitman/eBay
9. Screw-ups are … the … Mark of
Excellence.
“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
10. TALENT TIME! (He/She Who Has the Best “Roster”
Rules!)
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
25/8/53*(*Damn it!)
11. Diversity’s Hour Is Now!
“Diversity defines the health and wealth of nations in a new
century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth.
Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs
economic growth and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
12. SHE … Is the Best Leader!
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, Business Week, 11.20.00
Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate cultural diversity
Source: Judy B. Rosener, America’s Competitive Secret:Women Managers
13. eALL. (IS/IT: Half-way = No Way.)
100 square feet
Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
“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
Impact No. 1/ Logistics &
Distribution: Wal*Mart … Dell … Amazon.com …
Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.
… Ad Infinitum.
“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
WebWorld = Everything
Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
14. The … WHITE-COLLAR REVOLUTION
Will …
Devour Everything in Its Path.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
15. Take Charge of Your Destiny!
BrandYou Moment! DISTINCT … OR
EXTINCT!
“If there is nothing very special about
your work, no matter how hard you apply yourself, you won’t get noticed, and that
increasingly means you won’t get paid much either.”
Michael Goldhaber, Wired
Brand You, Big Time!
I AM AN ARMY OF
ONE
“Unless mankind redesigns itself by changing our DNA through altering our genetic
makeup, computer-generated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
16. Avoid the …
Epitaph from Hell.
Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
HE WOULD HAVE DONEHE WOULD HAVE DONE
SOME SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS HIS BOSS
WOULDN’T LET HIM! WOULDN’T LET HIM!
17. YOUR CALENDAR KNOWS
ALL. (You = Calendar.)
“To Don’t ” List
Danger: S.I.O. (Strategic
Initiative Overload)
JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
18. Management Role 1:
GET OUT OF THE WAY. (Clear the Way.)
(“Manager” = Hurdle Removal Professional.)
“Ninety percent of what we call ‘management’ consists of making it
difficult for people to get things done.” – P.D.
19. WHAT MATTERS IS STUFF THAT
MATTERS.
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
20. DISPENSE
ENTHUSIASM!
BZ: “I am a … Dispenser of Enthusiasm!”
21. LOVE THE MESS!
SHOOT FOR THE STARS!
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief
of Staff, U. S. Army
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
“Let’s make a dent in the universe.”
Steve Jobs