Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Sybase/NYC/10.08.2003.
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Transcript of Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Bandag Fleet Executive Symposium...
![Page 1: Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Bandag Fleet Executive Symposium Phoenix/02February2006.](https://reader035.fdocuments.in/reader035/viewer/2022062309/5697bf741a28abf838c7fb94/html5/thumbnails/1.jpg)
Tom Peters’
Re-Imagine!Business Excellence in
a Disruptive AgeBandag Fleet Executive Symposium
Phoenix/02February2006
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Slides* at …
tompeters.com
*short, long
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Re-imagine! Not Your
Father’s World I.
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THREE BILLION NEW CAPITALISTS
—Clyde Prestowitz
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26m
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43h
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1 Houston/Month/15
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600,000
350,00070,000
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Re-imagine!
Not Your Father’s World II.
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“There is no job that is America’s God-given
right anymore.” —Carly
Fiorina
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No Limits?
“Short on Priests, U.S. Catholics Outsource
Prayer to Indian Clergy” —Headline, New York Times/06.13.04
(“Special intentions,” $.90 for Indians, $5.00 for Americans)
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December 9, 2005: “Ogre to Slay? Outsource It to
Chinese” (New York Times, page 1—
news section)
The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from
“Seoul to San Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for
their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.
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Re-imagine!
Not Your Father’s World III.
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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
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The General’s
Story.
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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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1. Re-imagine Permanence:
The Emperor Has No Clothes!
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Pathetic!
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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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3/40
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De-cent-ral-iz-
a-tion!!
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Ex-e-cu-tion!!
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Ac-count-a-bil-ity!!
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2. Re-imagine: Innovate (or Die) !
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Brilliant!
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“Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual
improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth
become a marvel of earnings consistency. Immelt
hasn’t turned his back on the old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above all,
innovation.” —BW/032805
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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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Focus!
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Scale’s Limitations: “All Strategy Is Local: True competitive advantages are
harder to find and maintain than people realize. The odds are best in tightly drawn markets, not big,
sprawling ones”
—Title/Bruce Greenwald & Judd Kahn/HBR09.05
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Different!**“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
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Franchise Lost!
TP: “How many of you [600] really
crave a new Chevy?”
NYC/IIR/061205
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$798
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$415/SqFt/Wal*Mart$798/SqFt/Whole Foods
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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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GH/TP:
“Get better” vs
“Get different”
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Easy!
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FLASH:
Innovation is
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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Furious! [ “Bias for action” ]
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TP/BW on BigCo sin #1: “too much talk,
too little do”
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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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“Execution is a systematic process of rigorously discussing hows and whats, tenaciously
following through, and ensuring accountability.” —
Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
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3. Re-imagine Organizing I:
IS/IT as Disruptive Tool!
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We all live in Dell-Wal*Mart-
eBay-Google World!
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Power Tools for Power Solutions/
Strategies! —TP
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Sysco!
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* Aggressive/$$$$
* Bold/GameChanger
* Bold/Creative Destruction
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4. Re-imagine Business’s Fundamental Value
Proposition:
The “Solutions Imperative” (and More).
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Up, Up, Up, Up,Up
the Value-added Ladder.
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And the “M” Stands for … ?
Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-
promised ‘revolution.’ ” )
IBM Global Services*
(*Integrated Systems Services Corporation): $55B
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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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“Instant Infrastructure: GE Becomes a General
Store for Developing Countries” —headline/
NYT/07.16.05
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Bear In Mind: Customer Satisfaction
versus Customer
Success
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The Value-added Ladder/Stuff ‘n’ Things
Goods Raw Materials
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The Value-added Ladder/Stuff & Transactions
ServicesGoods
Raw Materials
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The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions
ServicesGoods
Raw Materials
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5. Re-imagine Enterprise as
Theater I: 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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2/503Q04
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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 Value-added Ladder/Remarkable Experiences
Awesome Experiences
Gamechanging Solutions ServicesGoods
Raw Materials
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Trapper: <$20 per beaver pelt.
Source: WSJ
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WDCP*: $150 to remove “problem beaver”; $750-$1,000 for flood-control piping … so
that beavers can stay.
* “Wildlife Damage-control Professional”
Source: WSJ
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6. Re-imagine Enterprise as
Theater II: Embracing the
“Dream Business.”
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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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The Value-added Ladder/Dream Fulfillment
Dreams Come True Awesome Experiences
Gamechanging SolutionsServicesGoods
Raw Materials
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Six Market Profiles
1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
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Six Market Profiles
1. Adventures for Sale/IBM-UPS-GE2. The Market for Togetherness, Friendship and Love/IBM-UPS-GE3. The Market for Care/IBM-UPS-GE4. The Who-Am-I Market/IBM-UPS-GE5. The Market for Peace of Mind/IBM-UPS-GE6. The Market for Convictions/IBM-UPS-GE
Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
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IBM, UPS, GE …
Dream Merchants!
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Gas ……………… $1.75 per gallonLipton Iced Tea .. $9.52 per gallonOcean Spray …... $10.00Gatorade ……….. $10.17Diet Snapple …... $10.32Milk ……………… $12.72Evian water ……. $21.19*STP brake fluid .. $33.60Pepto-Bismol ….. $123.20Vicks NyQuil …... $178.13
*”MESSAGE IN A BOTTLE: Our thirst for bottled water has created a $46 BILLION global market—and New Zealand is infiltrating the once European-dominated industry with our own clean, green offerings”—article title, Air New Zealand magazine
Source: Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell (2004)
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7. Re-imagine the Customer I: Trends Worth
Trillion$$$ …
Women Roar.
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The Perfect Answer
Jill and Jack buy slacks in black…
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?????????
Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)All consumer purchases … 83%
Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%
Health Care … 80%
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Business Purchasing Power
Purchasing mgrs. & agents: 51%HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
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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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8. 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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9. Re-imagine
Excellence I: The Talent
Obsession.
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Brand =
Talent.
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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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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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Walk the Talk
DD$21M
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10. Re-imagine Leadership for Totally Screwed-Up
Times:
The Passion Imperative.
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Create a
Cause!
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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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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Find ’em!
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“Leaders
‘do’ people.” —Anon.
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Les Wexner: From sweaters to … people!
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Make It a Grand
Adventure!
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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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Try It!
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Sam’s
Secret #1!
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Insist on
Speed!
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“If things seem under control, you’re just
not going fast enough.” —Mario Andretti
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Demand
Action!
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“We have a ‘strategic’ plan. It’s
called doing things.” — Herb Kelleher
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1 of 2,400
6:15A.M.
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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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Avoid … Moderation!
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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
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!