Tom Peters’ Extreme Business! Re-imagining Century21 Enterprise Home Depot/Atlanta/12.17.2002

Tom Peters’

Extreme Business!Re-imagining Century21 Enterprise

Home Depot/Atlanta/12.17.2002

1. The Destruction Imperative.

“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, Business 2.0 (08.00)

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

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

“Mr. Foster and his McKinsey colleagues collected detailed

performance data stretching back 40 years for 1,000 U.S. companies. They

found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse

they did.”—Financial Times/11.28.2002

C.E.O. to

C.D.O.

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

2. IS/ IT/ Web … “On the Bus” or “Off the

Bus.”

100 square feet

Impact No. 1/ Logistics &

Distribution: Wal*Mart … Dell … Amazon.com …

Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.

… Ad Infinitum.

Autobytel: $400.

Wal*Mart: 13%.Source: BW(05.13.2002)

“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

3. The Heart of the Value

Added Revolution: The “Solutions

Imperative.”

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).

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

Leased AC: Units of

“Coolth”

“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)

“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

“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

Keep In Mind: Customer

Satisfaction versus

Customer

Success

4. A World of Scintillating/

Awesome/ WOW “Experiences.”

“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

“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

“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

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

WHAT CAN BROWN DO FOR YOU?

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%”

P.S.: “Experience” applies to all work!

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

Bob Lutz: “I see us as being in the art business. Art,

entertainment and mobile sculpture, which,

coincidentally, also happens to provide transportation.”

Source: NYT 10.19.01

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

“Women don’t buy

brands. They join them.”

EVEolution

The “Experience Ladder”

Experiences Services

Goods Raw Materials

Ladder Position Measure

Solutions Success(Experiences)

Services Satisfaction

Goods Six-sigma

5. Experiences+: Embracing the

“Dream Business.”

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

Emotional Design that Interprets Dreams

“Zero defects”: Only the starting point.

Love at first sight.Design for the five senses.

Develop to expand the Main Dream.Design so as to seduce through the

peripheral senses.

Source: Gian Luigi Longinotti-Buitoni

The marketing of Dreams (Dreamketing)

Dreamketing: Touching the clients’ dreams.

Dreamketing: The art of telling stories and entertaining.

Dreamketing: Promote the dream, not the product.

Dreamketing: Build the brand around the main dream.

Dreamketing: Build the “buzz,” the “hype,” the “cult.”

Source: Gian Luigi Longinotti-Buitoni

6. The [Mostly Ignored] “Soul” of “Experiences”:

Design Rules!

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”

Steve Jobs

Design Transforms even the [Biggest] Corporations!

TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000”

(Advertising Age)

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

Wanted: THE DESIGNER OF MY

RADIO SHACK PHONE. Major

Reward!

Design is never neutral.

Hypothesis: DESIGN is the principal difference between love and

hate!

Message (?????): Men cannot design for women’s

needs.

“Perhaps the macho look can be interesting … if you

want to fight dinosaurs. But now to survive you need intelligence,

not power and aggression. Modern intelligence means

intuition—it’s female.”

Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

7. “It” all adds up

to … THE BRAND.

The Heart of Branding …

“WHO ARE WE?”

“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, Unique … now or never

“WHAT’S OUR

STORY?”

“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

8. Boss Job One:

The Talent Obsession.

Brand = Talent.

The Talent Ten

Model 25/8/53

Sports Franchise GM

“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

“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

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;

favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure

“rationality”; inherently flexible; appreciate cultural diversity.

Source: Judy B. Rosener, America’s Competitive Secret

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

The Top 5 “Revelations”

Better talent wins.

Talent management is my job as leader.

Talented leaders are looking for the moon and stars.

Over-deliver on people’s dreams – they are volunteers.

Pump talent in at all levels, from all conceivable sources, all the time.

Source: Ed Michaels et al., The War for Talent

9. Trends I:

Women Roar.

Women & the Marketspace.

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel

equipment)

Houses … 91%D.I.Y. (“home projects”) … 70%

Consumer Electronics … 51% Cars … 60% (90%)

All consumer purchases … 83% Bank Account … 89%

Health Care … 80%

????

80%

Riding Lawnmowers

2/3rds working women/50+% working wives > 50%

80% checks61% bills

53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

1970-1998

Men’s median income: +0.6%Women’s median income: + 63%

Source: Martha Barletta, Marketing to Women

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Business Purchasing Power

Purchasing mgrs. & agents: 51%HR: >>50%

Admin officers: >50%


Women-owned Bus.

U.S. employees > F500 employees worldwide


New golfers … 37%Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874 … Jock Strap1977 … Jogbra

1977 ... 25K

1996 … 42M

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!

91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in

creating a relationship. Every place women go, they make

connections.”

“Men seem like loose cannons. Men always move faster through a store’s

aisles. Men spend less time looking. They usually don’t like asking where things are.

You’ll see a man move impatiently through a store to the section he wants,

pick something up, and then, almost abruptly he’s ready to buy. For a

man, ignoring the price tag is almost a sign of virility.”

Paco Underhill, Why We Buy* (*Buy this book!)

“Shopping: A Guy’s Nightmare or a Girl’s Dream Come True?”

“Buy it and be gone”vs.

“Hang out and enjoy the experience”

Source: The Charleston [WV] Gazette/06.22.2002

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their

vendor.”

Robin Sternbergh/ IBM

Women's View of Male Salespeople

Technically knowledgeable; assertive; get to the point; pushy;

condescending; insensitive to women’s needs.

Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”


“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”


Senses

Vision: Men, focused; Women, peripheral.

Hearing: Women’s discomfort level I/2 men’s.

Smell: Women >> Men.Touch: Most sensitive man <

Least sensitive women.


“Women speak and hear a language of connection and intimacy, and men

speak and hear a language of status and independence. Men communicate to obtain information, establish their

status, and show independence. Women communicate to create

relationships, encourage interaction, and exchange feelings.”

Judy Rosener, America’s Competitive Secret

Editorial/Men: Tables, rankings.*

Editorial/Women: Narratives that cohere.*

TP/Furniture: “Tech Specs” vs. “Soul.” **

*Redwood (UK)**High Point furniture mart (04.2002)

Initiate Purchase

Men: Study “facts & features.”

Women: Ask lots of people for input.


Storytelling: Men start with the headline.

Women start with the context.


Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,

‘How was school today?’ a girl usually tells her mother every

detail of what happened, while a boy might grunt, ‘Fine.’ ”

EVEolution

What If …

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

The New New Jiffy Lube

“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the

female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation

required’ experience.”

New JL: “Control over her environment. Comfort in the service setting. Trust that her car

is being serviced properly. Respect for her intelligence and ability.”

EVEolution

“Mattel Sees Untapped Market for Blocks: Little Girls”—Headline,

WSJ/04.06.02

“Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello

—with interconnecting plastic squares, balls, triangles, squiggles,

flowers and sticks, in pastel colors and with rounded corners—will go beyond

Lego’s linear play patterns.”

Tomboy Tools. E.g.:

smaller, lighter in weight. Tupperware “party” model.

“Women don’t buy

brands. They join them.”

EVEolution

Not!“Year of the

Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s

power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders

about my fact-based conviction that women’s increasing power – leadership skills

and purchasing power – is the strongest and most dynamic force at work in the American

economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN

THE INTERNET!

Tom Peters

Psssst! Wanna see my “porn” collection?

Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How

Retailing’s Most Successful Stay that Way”

Presenting Experts: M = 16;

F = ?? (94% = 272)

“Please … just

one couch or

chair where my feet hit the ground!” —Owner,

5 furniture stores, UK

Stupid!

Stupid: “Amazing, now that I think about it. A bunch of

guys --developers, architects, contractors,

engineers, bankers--sitting around designing shopping centers. And the ‘end users’

will be overwhelmingly women!”

“Customer is King”: 4,440

“Customer is Queen”: 29

Source: Steve Farber/Google search/04.2002

Notes to the CEO

--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)

--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!


10. Trends II: Boomer

Bonanza/ Godzilla Geezer.

Subject: Marketers & Stupidity

“It’s 18-44, stupid!”

Subject: Marketers & Stupidity

Or is it: “18-44 is stupid,

stupid!”

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

“NOT ACTING THEIR AGE: As Baby Boomers

Zoom into Retirement, Will America Ever Be the

Same?”USN&WR Cover/06.01

Member Growth: 1987 – 1997

18 – 34: 26%35 – 49: 63%

50+: 118%Source: IHRSA

50+

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes/40M credit card users41% new cars/48% luxury cars

$610B healthcare spending/74% prescription drugs

5% of advertising targets

Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

“Advertisers pay more to reach the kid because they think that once someone hits

middle age he’s too set in his ways to be

susceptible to advertising. … In fact this notion of impressionable kids and hidebound geezers is little more

than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of

youth.”—James Surowiecki (The New Yorker/04.01.2002)

Read This!

Carol Morgan & Doran Levy,

Marketing to the Mindset of Boomers

and Their Elders

“Marketers attempts at reaching those over 50 have

been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter

Francese, founding publisher, American Demographics

“Households headed by someone 40 or older enjoy 91% ($9.7T) of

our population’s net worth. … The mature market is the dominant

market in the U.S. economy, making the majority of

expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to

the Mindset of Boomers and Their Elders

“The mature market cannot be dismissed as entrenched in its

brand loyalties.” —Carol Morgan &

Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Focused on assessing the marketplace based on lifetime

value (LTV), marketers may dismiss the mature market as

headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol

Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“While the average American age 12 or older watched at least five

movies per year in a theater, those 40 and older were the most

frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-

olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But

who in the fashion industry is currently pursuing this market?” —Carol

Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

Stupid!

“ ‘Age Power’ will rule the 21st century, and we are woefully

unprepared.”Ken Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

29. The Passion

Imperative: The

Leadership50

The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

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!

The Leadership

Types.

2. Great Leaders on Snorting

Steeds Are Important – but

Great Talent Developers (Type I

Leadership) are the Bedrock of Organizations that Perform Over

the Long Haul.

25/8/53*(*Damn it!)

3. But Then Again, There Are Times When This “Cult of Personality”

(Type II Leadership) Stuff Actually Works!

“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

4. Find the “Businesspeople”!

(Type III Leadership)

I.P.M. (Inspired Profit

Mechanic)

5. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

6. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

7. The Leader Is Rarely/Never the Best Performer.

33 Division Titles. 26 League Pennants. 14

World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.

Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky

Anderson—1 season.

The Leadership

Dance.

8. Leaders …

SHOW UP!

9. Leaders … LOVE the

MESS!

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

10. Leaders

DO!

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!)

11. Leaders

Re-do.

“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.

They’re eviscerated in public for lousy

products. Yet they persist, through version after version, until they get

something good enough. Then they leverage the power they’ve gained in

other markets to enforce their standard.”Seth Godin, Zooming

12. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

13. Leaders Are …

Optimists.

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

14. Leaders …

DELIVER!

“It is no use saying ‘We are doing our best.’ You have got to succeed in doing

what is necessary.” —WSC

15. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus Imperative”!

16. Leaders

FOCUS!

“To Don’t ” List

17. Leaders …

Set CLEAR DESIGN SPECS.

Danger: S.I.O. (Strategic

Initiative Overload)

18. Leaders …

Send V-E-R-Y Clear Signals About

Design Specs!

Ridin’ with Roger: “What have you done to

DRAMATICALLY IMPROVE quality in the

last 90 days?”

It’s Relationships,

Stupid.

19. Leaders Trust in

TRUST!

Credibility!

If It Ain’t Broke … Break It.

20. Leaders …FORGET!/

Leaders … DESTROY!

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

21. BUT … Leaders

Have to Deliver, So They Worry About “Throwing the Baby Out with the

Bathwater.”

“Damned If You Do, Damned If You Don’t, Just Plain

Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success

Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

22. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

23. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

“Fail faster. Succeed sooner.”

David Kelley/IDEO

24. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Create.

25. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

26. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

CEO Assignment2002 (Bermuda):

“Please leap forward to 2007, 2012, or 2022, and write a business history of

Bermuda. What will have been said about your company during your

tenure?”

Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and

imagine me immediately doing something about what you’ve just said. What would it be?”

“Do you feel you have an obligation to ‘Make the world a

better place’?”

27. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

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).

28. Leaders

LOVE the New Technology!

100 square feet

29. Needed? Type IV Leadership: Technology

Dreamer-True Believer

The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent

Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True

Believer

Talent.

30. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

31. Leaders “Manage” Their

EVP/Internal Brand Promise.

MantraM3

Talent = Brand

32. Leaders LOVE RAINBOWS – for Pragmatic Reasons.

“Diversity defines the health and wealth of nations in a new century.

Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the

blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting

the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,

nourishes the human spirit, spurs economic growth

and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

Passion.

33. Leaders …

Out Their

PASSION!

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

34. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

35. Leaders Are …

in a Hurry

The Urgency Factor: LEADERS … have a distorted

sense of time. (E.g.:

Rummy thinks he asked months ago … it was the day before yesterday.)

The “Job” of Leading.

36. Leaders Know It’s

ALL SALES ALL THE TIME.

TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”) (See TP’s The Project50.)

37. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

38. But … Leaders Also

Break a Lot of China

If you’re not pissing people off, you’re not making

a difference!

39. Leaders

Give … RESPECT!

“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

40. Leaders Say

“Thank You.”

“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]

41. Leaders Are …

Curious.

TP/08.2001: The Three Most Important Letters …

WHY?

42. Leadership Is a …

Performance.

“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

43. Leaders … Are The Brand

The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-

to-moment actions.

44. Leaders …

Have a GREAT STORY!

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley Brown

Introspection.

45. Leaders …

Enjoy Leading.

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

46. Leaders …

KNOW THEMSELVES.

Individuals (would-be leaders) cannot engage in a

liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty

control freaks.)

47. But … Leaders

have MENTORS.

The Gospel According to TP: Upon having the Leadership

Mantle placed upon thine head, thou shalt never hear the unvarnished

truth again!* (*Therefore, thy needs one faithful

compatriot to lay it on with no jelly.)

48. Leaders … Take Breaks.

Zombie!Zombie!Zombie!Zombie!

The End Game.

49. Leaders ???

:

“Hire smart – go bonkers – have grace – make mistakes – love technology – start all

over again.”

“LEADERS NEED TO BE THE ROCK OF

GIBRALTAR ON ROLLER BLADES”

50. Leaders Know

WHEN TO LEAVE!

Thank You!

Tom Peters’ Extreme Business! Re-imagining Century21 Enterprise Home Depot/Atlanta/12.17.2002

Documents

Transcript of Tom Peters’ Extreme Business! Re-imagining Century21 Enterprise Home Depot/Atlanta/12.17.2002