Long Excellence NOW Tom Peters/8 November 2011 BRG/Johannesburg (slides @ tompeters)
Slides* at … tompeters *CA World “Long” and “Final”
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Transcript of Slides* at … tompeters *CA World “Long” and “Final”
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Tom Peters’
Re-Imagine!Business Excellence in a Disruptive Age
CA WorldLas Vegas/14November2005
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Slides* at …
tompeters.com
*CA World “Long” and “Final”
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Re-imagine! Not Your
Father’s World.
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THREE BILLION NEW
CAPITALISTS —Clyde Prestowitz
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The General’s
Story. (And Darwin’s) (And the Admiral’s.)
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“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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“It is not the strongest of the species that survives, nor the most intelligent,
but the one most responsive to change.” —Charles Darwin
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Nelson’s secret: “[Other] admirals more frightened of losing than
anxious to win”
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1. Re-imagine Permanence:
The Emperor Has No Clothes!
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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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“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The
answer seems obvious: Buy a very large one and just wait.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
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2. Re-imagine:
Innovateor
Die!!!
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“A focus on cost-cutting and efficiency has helped many organizations weather the
downturn, but this approach will ultimately
render them obsolete. Only the constant pursuit of
innovation can ensure long-term success.” —Daniel
Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)
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Resist!
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“Not a single company that qualified as having made a sustained transformation ignited its leap with a big
acquisition or merger. Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to
make themselves great with a big acquisition or merger. They failed to grasp the simple truth that
while you can buy your way to growth, you cannot
buy your way to greatness.” —Jim Collins/Time/11.29.04
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Scale?
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“I don’t believe in economies
of scale. You don’t get better by
being bigger. You get worse.”
—Dick Kovacevich/Wells Fargo/Forbes08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)
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Different!**“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
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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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“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-
Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive
looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are
outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to
do it.” —Seth Godin, Fast Company/02.2003
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Easy!
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Innovation’s 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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Hard!
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“The Bottleneck is at the Top of the Bottle”“Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the
greatest reverence for industry dogma?
At the top!”
— Gary Hamel/“Strategy or Revolution”/Harvard Business Review
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Bold!
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“Beware of the tyranny of making Small
Changes to Small Things.
Rather, make Big Changes to Big
Things.” —Roger Enrico, former Chairman, PepsiCo
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“Reward excellent failures. Punish mediocre
successes.”Phil Daniels, Sydney exec
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Fast!
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“The most successful people
are those who are good at
plan B.” —James Yorke,
mathematician, on chaos theory in The New Scientist
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Furious! [ “Bias for action” ]
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“We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher
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“Execution is the job of the
business leader.” —Larry Bossidy & Ram Charan/
Execution: The Discipline of Getting Things Done
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Measurable!
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Innovation Index: How many of your Top 5 Strategic
Initiatives/Key Projects score 8 or higher (out of 10) on a
“Weirdness”/ “Profundity”/ “Wow”/ “Gasp-worthy”/ “Game-changer” Scale?
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Personal!
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Step #1: Buy a Mirror!
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“The First step in a ‘dramatic’
‘organizational change program’ is obvious—
dramatic personal change!” —RG
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3. Re-imagine Organizing I:
IS/IT as Disruptive Tool!
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“the FedEx Economy”
—headline/New York Times/10.08.05
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“UPS used to be a trucking
company with technology. Now it’s
a technology company with
trucks.” —Forbes
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Power Tools for Power Solutions/
Strategies! —TP
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3A. Re-imagine the Architecture of
Systems/IT Applications: Deliver No Less Than “Beautiful” Systems.
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450/8
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“Beautiful”Graceful”“Aesthetic Triumph”
“Breathtaking”“Game-changing”
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Rodale’s on “Grace” …
elegance … charm … loveliness … poetry in motion … kindliness ..
benevolence … benefaction … compassion … beauty
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4. Re-imagine Organizing II: The White-Collar Tsunami
and the Professional Service Firm (“PSF”)
Imperative.
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“ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of
irrelevance—disintermediation is just another way of saying
that you’ve become irrelevant to your
customers.” —John Battelle/Point/Advertising Age/07.05
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Answer: PSF![Professional Service Firm]
Department Head to …
Managing Partner, HR [IS, R&D, etc.] Inc.
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5. Re-imagine the FVP/ Fundamental Value Proposition:
Up, Up, Up,
Up
the Value-added Ladder.
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Re-imagine the FVP I:
Services to Solutions!
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“Big Brown’s New Bag: UPS
Aims to Be the Traffic Manager for Corporate
America” —Headline/BW/07.19.2004
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6. Re-imagine the FVP II: Solutions to 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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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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2/503Q04
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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The “Experience Ladder” II
Awesome Experiences
SolutionsServicesGoods
Raw Materials
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7. Re-imagine the FVP III:
Experiences to “Dreams Come
True.”
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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
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Experience Ladder/TP
Dreams Come True Awesome Experiences
SolutionsServicesGoods
Raw Materials
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UPS …
Dream Merchants!
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8. Re-imagine the FVP IV: “It” all adds up to …
Love.
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“Brands have run out of
juice. They’re dead.” —Kevin Roberts/Saatchi &
Saatchi
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Kevin Roberts:
Lovemarks!
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Tattoo Brand: What % of users would tattoo the brand name on
their body?
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Top 10 “Tattoo Brands”*
Harley .… 18.9%Disney .... 14.8
Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6Nike …. 4.6
Adidas …. 3.1Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
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Lovemark Dreams Come True
Awesome ExperiencesSolutions
ServicesGoods
Raw Materials
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9. Re-imagine the Customer I: Trends Worth
Trillion$$$ …
Women Roar.
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“Women are the majority market” —Fara Warner/
The Power of the Purse
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Thanks, Marti
Barletta!
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The Perfect Answer
Jill and Jack buy slacks in black…
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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.
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Good Thinking, Guys!
“Kodak Sharpens Digital Focus On Its Best
Customers:
Women” —Page 1 Headline/WSJ/0705
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“Women come out better on almost every count as
investors … They are less likely to hold a losing investment too long, and
less likely to wait too long to sell a winner; they’re also less likely to put too much money into a single investment or
to buy a reputedly hot stock without doing sufficient research.” —The Merrill report: “When It Comes to Investing, Gender A strong Influence on
Behavior.”/Atlantic
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Women poker players: More cautious. More patient. More disciplined. Bluff
with more attention to the odds. More notes [on-line]. Learn more and
improve faster. Less emotional, less ego. Know more about men than men
do about them; more effective at exploiting men’s attitudes.
Source: “Ante Up, Ladies: As poker mania grips the nation, more women are mastering the game, applying their own life lessons
to poker and the lessons of poker to life,” Time, 11.05
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10. Re-imagine the Customer II: Trends Worth
Trillion$$$ …
Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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44-65: “New Customer Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
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11. Re-imagine
Excellence: The Talent
Obsession.
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Brand =
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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Our Mission
To develop and manage talent;to apply that talent,
throughout the world, for the benefit of clients;to do so in partnership;
to do so with profit.
WPP
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12. Re-imagine Leadership:
The Passion Imperative.
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Create a
Cause!
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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 De Pree, Herman Miller
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“People want to be part of something larger than
themselves. They want to be part of something
they’re really proud of, that they’ll fight for, sacrifice for , trust.” —Howard Schultz, Starbucks
(IBD/09.05)
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Make It a Grand
Adventure!
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Quests!
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Organizing Genius / Warren Bennis and Patricia Ward Biederman
“Groups become great only when everyone in them, leaders and
members alike, is free to do his or her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to discover their
greatness.”
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Yes!!!!!!!!!!!!!!!!!
“free to do his or her absolute best” …
“allow its members to discover their
greatness.”
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Live Your
Story!
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“You must be the change you wish to see in the world.”
Gandhi
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Dispense
Enthusiasm!
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“Nothing is so contagious as enthusiasm.”
—Samuel Taylor Coleridge
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“Most important,
he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05
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Free the Lunatic
Within!
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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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“You can’t behave in a calm, rational
manner. You’ve got to be out there on
the lunatic fringe.” —
Jack Welch