Tom Peters Squares Off with Jim Collins. Or: The Case for … Technicolor ! Tom Peters/03.16.2004.
Brand Inside Tom Peters Omnicom02.28.2002
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Transcript of Brand Inside Tom Peters Omnicom02.28.2002
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Brand Inside
Tom PetersOmnicom02.28.2002
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1. An “Action Culture.”
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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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“Active mutators in placid times tend to die off. They
are selected against. Reluctant mutators in
quickly changing times are also selected against.”
Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors
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Wendell Phillips, abolitionist: “Republics exist only on the tenure of being constantly
agitated. There is no republican road to safety but in constant distrust.”
Source: Louis Menand, The Metaphysical Club: A Story of Ideas in America
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Cortez!
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The [New] Ge Way
DYB.com
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Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
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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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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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“You can’t be a serious innovator unless and until you are ready,
willing and able to seriously play. ‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage, Serious Play
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2. Work that Matters: WOW
Projects/ BHAGs.
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“Let’s make a dent in the universe.”
Steve Jobs
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“Intimidate their [users] imaginations”
… “Where’s the revolution?” –J Allard,
on the Xbox
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Language matters! Wow! BHAG! “Takes
your breath away!”
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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 (Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to
5%)
Source: Jump Start Your Business Brain, Doug Hall
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Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”*Fortune, article on
“Most Admired Global Corporations”
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3. Demo Mania.
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Demos! Heroes! Stories!
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“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
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G.M. … V.C. … W.P. … M.B.S.A.
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Each VP a V.C.: Portfolio of high-risk investments in
people & ideas from all across the company.
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4. Web World = ALL: The
“Friction-free Enterprise.”
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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N.W.O./Holy Moly: Unemployment up 2% … Real wage growth highest since 60s … Productivity soaring.
Source: BW/02.11.2002
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Dell’s OptiPlex Facility
Big Job: 6 to 8 hours.(80,000 per day)
Parts Inventory: 100 square feet.
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Cisco!
90% of $20B (=$50M/day)Annual savings in service
and support from customer self-management: $550M (P.S.: C.Sat e >> C.Sat h)
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The Real “News”: X1,000,000
TowTruckNet.com
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WebWorld = Everything Web as a way to run your business’s innards
Web 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
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Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
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Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
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“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
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CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
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Suppose, just suppose, that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have
known what the geography of the new world was going to be, they at least knew that there was a geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
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“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
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I’net …
… allows you to dream dreams
you could never have dreamed
before!
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Q: Is that all there is?A: Quite possibly.
“Roche’s New Scientific Method”—Fast Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”
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5. “Beautiful” Systems.
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Fred S.’s “mediocre” thesis. Herb K.’s
napkin.
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Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
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Great design = One-page
business plan (Jim Horan)
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K.I.S.S.: Gordon Bell (VAX
daddy): 500/50. Chas. Wang (CA): Behind schedule?
Cut least productive 25%.
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“Most companies would do more business on the Internet if they
fired their entire marketing department and replaced it with
people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
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SWA
Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t
believe they’re done)
30% of revenues directly from site (vs. 6% for others)
Source: Business Week (09.00)
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Danger: S.I.O. (Strategic Initiative Overload)
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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!
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Systems: Must have. Must
hate. / Must design. Must un-
design.
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Mgt. Team includes … EVP
(S.O.U.B.)
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Executive Vice President, Stomping Out Unnecessary Bullshit
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Revised wisdom: Forget “best practice” (stultifying).
Concentrate on: Driving out “worst practice.”
Source: Equinox Manifesto (12.01)
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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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6. The “Solutions Imperative”: New Bases for Value
Added.
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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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“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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Keep In Mind: Customer Satisfaction
versus Customer Success
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7. Talent: The 25/8/53 Obsession.
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25/8/53*(*Damn it!)
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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 (05.17.00)
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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 (05.17.00)
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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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8. Automatic Renewal:
The “HSDE.”
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Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
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“The corporate faith in big industrial mergers [2/3rds of which
fail] is a vestige of the spats-and-spittoons era.”
—James Suroweicki, The New Yorker (More, a Buffett annual-report quote: “Many managers were overexposed in
impressionable childhood years to the story in which the imprisoned handsome prince is released from a toad’s body by a kiss from the beautiful princess.”)
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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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The Cracked Ones Let in the Light“Our 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
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Suppliers: There is an ominous downside to strategic supplier
relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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Leaders know … WE BECOME WHO
WE HANG WITH!
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WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not
to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction.
(7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of
some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas that Work: 11½ Ideas for Promoting, Managing and Sustaining Innovation
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9. Cherish FAILURES.
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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Read This!
Richard Farson & Ralph Keyes: Whoever Makes the Most
Mistakes Wins: The Paradox of Innovation
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10. Talent II: The “Check-out
Clerks Test.”
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New World of Work< 1 in 10 F500
#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27MTotal: 31M-55M
Source: Daniel Pink, Free Agent Nation
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Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express
their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-
leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their
“followers’ ” explorations!
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Minimum New Work SurvivalSkillsKit2001Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial Instinct
CEO/Leader/Businessperson/CloserMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
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“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
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Brand You, Big Time!
I AM AN ARMY OF
ONE
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11. “A Place Worth Working
For.”
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MantraM3
Talent = Brand
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What’s your company’s …
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent
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EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
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“Soft” Is “Hard”
- ISOE
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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1. An “Action Culture.”2. Work that Matters: WOW Projects/BHAGS.3. Demo Mania.4. Web World = ALL: The “Friction-free Enterprise.5. “Beautiful” Systems.6. “Departments” as Heroes: New Bases for Value Added.7. Talent: The 25/8/53 Obsession.8. Automatic Renewal: The “HSDE.”9. Cherish FAILURES.10. Talent II: The “Check-out Clerks Test.”11. Brand Inside: “A Place Worth Working For.”