tom peters’ seminar2002 we are in a brawl with no rules! isma/i.d.a./05.05.2002
TRANSCRIPT
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Tom Peters’ Seminar2002
We Are In A Brawl With No
Rules!ISMA/I.D.A./05.05.2002
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All Slides Available at …
tompeters.comNote: Lavender text in this file is a link.
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CONTEXT
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The Destruction Imperative.
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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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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.
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
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“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
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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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A White Collar Revolution.
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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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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IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
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“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
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IS/IT/Web … “On the Bus” or “Off the Bus.”
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100 square feet
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The Real “News”: X1,000,000
TowTruckNet.com
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Impact No. 1/ Logistics &
Distribution: Wal*Mart … Dell … Amazon.com …
Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.
… Ad Infinitum.
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Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
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Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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RESPONSE
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The Heart of the Value Added Revolution:
The “Solutions Imperative.”
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“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
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The Big Day!
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
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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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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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“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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“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
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“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public
companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will
transform the real estate market by turning those REITs into national brands. … Mr. Zell
believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.”—New York Times
(12.16.2001)
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Omnicom: 57%
(of $6B) from marketing services
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Message: Eat Or Be Eaten.
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Who was the number one employer of
architecture school grads in the U.S.
last year?
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The Solutions Mentality:
Think …
EXPERIENCE.
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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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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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“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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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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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
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It all adds up to …
THE BRAND.
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“WHO ARE WE?”
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
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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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1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE
Source: Jump Start Your Business Brain, Doug Hall
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2 Questions:
“How likely are you to purchase this new product or service?” (95% to 100% weighting by execs)
“How unique is this new product or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain
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“WHY DOES IT MATTER TO
THE CLIENT?”
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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
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Brand = Talent.*
*Duh.
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Model 25/8/53
Sports Franchise GM
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“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
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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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“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia-Pacific changed 20 of his 40 box plant managers to put
more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million
in 2 years.”
Ed Michaels, War for Talent
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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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Redefining the Work Itself I:
The WOW Project.
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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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
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BOTTOM LINE: LEADING IN
TOTALLY SCREWED- UP TIMES
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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Thank You!