tom peters’ re-imagine! business excellence in a disruptive age infousa/miami/01.23.2004
TRANSCRIPT
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Tom Peters’
Re-Imagine!Business Excellence in a Disruptive Age
infoUSA/Miami/01.23.2004
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Slides at …
tompeters.com
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“Uncertainty is the only thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset Management
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief of Staff,
U. S. Army
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Message(s)
1. The world gets ever more complicated- confusing.
2. The race to add more (and more) value becomes ever more challenging.
3. Winners stick their necks out more than the rest.
4. The Human Touch never gets old.
5. Excellence is why we’re here.
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1. All Bets Are Off.
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“September 11 amounts to World War III—the third
great totalitarian challenge to open societies in the last
100 years.” —Thomas Friedman/NYT/01.08.2004
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“The World Must Learn to Live with
a Wide-awake China” —Headline/FT/11.03
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“14 MILLION service jobs are in
danger of being shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
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“There is no job that is America’s God-given right
anymore.” —Carly Fiorina/ HP/
01.08.2004
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“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
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2. The Destruction Imperative.
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Rate of Leaving F500
1970-1990: 4XSource: The Company, John Micklethwait & Adrian
Wooldridge (1974-200: One-half biggest 100 disappear)
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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
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3. The White Collar Revolution
& the Death of Bureaucracy.
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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
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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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“Organizations will still be critically important in the world,
but as ‘organizers,’ not ‘employers’!” — Charles Handy
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Ford: “Vehicle brand owner” (“design, engineer, and
market, but not actually make”)
Source: The Company, John Micklethwait & Adrian Wooldridge
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4. IS/ IT/ Web … “On the Bus” or “Off the
Bus.”
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100 square feet
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“Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll 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)
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“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 military’s 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/“Broadband’s New Killer App”/Business
2.0/ OCT2002
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Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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e-piphany
epicurious.com
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5. The Heart of the Value
Added Revolution: The “Solutions
Imperative.”
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“While everything may
be better, it is also increasingly the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
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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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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).
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“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
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Keep In Mind: Customer
Satisfaction versus
Customer
Success
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Nardelli’s 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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And the Winners Are …
Televisions –12%Cable TV service +5%
Toys -10%Child care +5%
Photo equipment -7%Photographer’s fees +3%
Sports Equipment -2%Admission to sporting event +3%
New car -2%Car repair +3%
Dishes & flatware -1%Eating out +2%
Gardening supplies -0.1%Gardening services +2%
Source: WSJ/05.16.03
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FEES! FEES! FEES!
—Cover Story, BW/09.29.03
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6. A World of Scintillating
“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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“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
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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 that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
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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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WHAT CAN BROWN DO FOR YOU?
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The “Experience Ladder”
Experiences Services
Goods 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): $10.00
1990: Party @ Chuck E. Cheese (experience economy) $100.00
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Message:
“Experience” is the
“Last 80%”
P.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 @ Chuck E. Cheese
(experience economy) $100.00
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It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 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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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
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7. “It” all adds up
to … THE BRAND.
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“WHO ARE WE?”
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“WHAT’S 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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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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“You do not merely want to be the best of the best. You
want to be considered the only ones who do
what you do.”
Jerry Garcia
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8. Boss Job One:
The Talent Obsession.
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“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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Brand = Talent.
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Les Wexner: From sweaters to people!
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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
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“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts in almost
every measure”Title, Special Report, BusinessWeek, 11.20.00
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“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 day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
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Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
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9. THINK WEIRD … the HVA/ High Value
Added Bedrock.
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THINK WEIRD: The High Standard
Deviation Enterprise.
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Saviors-in-Waiting
Disgruntled CustomersOff-the-Scope Competitors
Rogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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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
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COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t
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
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Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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10. Leading in Totally Screwed Up Times: The
Passion Imperative.
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“Ninety percent of what we call ‘management’ consists of making it
difficult for people to get things done.” – P.D.
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“I don’t know.”
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Quests!
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“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
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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!)
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“We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher
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DG to TP: “Sam is not afraid
to fail.”
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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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 …
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… the Good Conduct medal.
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“Management has a lot to do with answers. Leadership is a function of questions. And the
first question for a leader always is: ‘Who do we
intend to be?’ Not ‘What are we going to do?’ but ‘Who do
we intend to be?’” —Max DePree, Herman Miller
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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“You must be the change you
wish to see in the world.”
Gandhi
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“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
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“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
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Mr. Sam’s 10 Rules
Commit.Share.
Motivate.Communicate.
Appreciate.Celebrate.
Listen.Exceed expectations.
Control expenses.Swim upstream.
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Message(s)
1. The world gets ever more complicated- confusing.
2. The race to add more (and more) value becomes ever more challenging.
3. Winners stick their necks out more than the rest.
4. The Human Touch never gets old.
5. Excellence is why we’re here.