rollercoaster days: learning to … rock & roll! tom peters treasury management association...
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Rollercoaster Days: Learning to … Rock & Roll!
Tom Peters
Treasury Management AssociationWindy City Summit
23 May 2001
“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
<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift
1800s: > prior 900 years1900s: 1st 20 years > 1800s
2000: 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, talk april2001
CEOs appointed after
1985 are 3X more likely to be fired than CEOs appointed before 1985
Warren Bennis, MIT Sloan Management Review
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
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!)
Read It Closely: “We don’t sell insurance
anymore. We sell speed.”
Peter Lewis, Progressive
The [New] Ge Way
DYB.com
Job 1/Requirement 1:
Systems & Procedures Fit to
Deal with Utter Madness.
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.
S&P 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
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
White Collar
Revolution!
80,000?
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
So what will be the Basic Building
Block of the New Org?
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
11 September 2000
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
[“These days, building the best server isn’t enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
Maybe one [or more] of your “PSFs”
becomes the tail that wags the dog?????
[E.g.: IS-logistics-finance-customer service]
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Message/Query: Are Your Projects as “Mad” as
the Mad Times Demand?
Message/Query: Are You Understand the Full
Potential of Your “Business”/PSF?
Brand Inside
Brand Talent: The Great War for Talent
“When land was the productive asset, nations
battled over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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)
“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)
“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
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
Message: What gets measured gets done. What gets paid for gets
done more. What gets paid a lot for gets
done a lot more.
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, CEO, Enron
Brand Inside
Brand Action:Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!
THE IDEA
“4Fs”: Find a
Fellow Freak
Faraway
World’s Biggest Waste …
Selling “Up”
Heart of the Matter
F2F!/K2K!/1@T/R.F.A.*
*Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.
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
Brand Inside
Reprise
N.W.O.: Was Is Is
• Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are
for fools.”)• I love “Yes men”• Self-contained
• Seat 9B, UA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal
as breathing• I love Misfits!• I love partners
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside
Strategy 1:Use E-Commerce to
Re-invent Everything!
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Annual savings in service and support from customer
self-management: $550M
Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early
1999: 30 times a day. Late 2000: 30 times per … minute.
Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s:
2 weeks, 2 per week. Late 2000: 5 such deals per day
Source: www.ecompany.com (1/2001)
“This is the first meter of a 10-kilometer race.
Eventually, all markets will come to resemble today’s foreign exchange market.”
Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS”, Wired 04.01
COMMUNITY SERVICES!/ CUSTOMER CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via
customer collaboration)
RADICAL STRATEGIES
REQUIRED
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
GE & the Web
Purchasing: 2000: $6B; 2001: $15B
Sales: 1999: $1B; 2000: $7B; 2001: $20B+
Source: Business 2.0 (05.01)
WebWorld = Everything
Web as a way to run your business’ 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
“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
Message: Survivors will move all their operations
to the Web. Now. Web = Encompassing … or else.
Message 2001: Only idiots pull in their
[investment] horns during a downturn.
Brand Outside
Strategy 5:
It’s the Experience!
“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
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
The “Experience Ladder”
Experiences Services
Goods Raw Materials
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): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
Message: “Experience” is the
“last 80%.” “Experience” applies to
all work!
HP Revisited
PWC Consultants lead Business Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service Economy”)
Terrific Servers (“Goods Economy”)
Brand Outside
Strategy 6:
BRAND POWER!
“WHO ARE YOU [these days] ?”
TP to Client
WHAT’S YOUR
STORY?
“ WHY DOES IT MATTER TO
THE CLIENT?”
“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25
words.) (2) List three ways in which we are UNIQUE … to our Clients.
(3) Who are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
Message: (1) Do You Understand Your [Treasury]
Brand Promise? (2) Does Your Work Directly Enhance
The Corporate Brand Promise?
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Let’s make a dent in the universe.”
Steve Jobs