Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age CDW/10.21.2003
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Transcript of Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age CDW/10.21.2003
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Tom Peters’
Re-Imagine!Business Excellence in a Disruptive Age
CDW/10.21.2003
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Slides at …
tompeters.com
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1. All Bets Are Off.
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“Uncertainty is the only thing to be sure of. –Anthony Muh,head of investment in Asia, Citigroup Asset Management
“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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2. The White Collar Revolution
& the Death of Bureaucracy.
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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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BW Cover/02.2003
“IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic
Research—even Financial Analysis. Can America Lose These
Jobs and Still Prosper?”
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Predicted U.S. High-wage Job Losses
2005 2010
Managers 37,000 288,000Life sciences 3,700 37,000Design 6,000 30,000Architecture 32,000 184,000Bus Ops 61,000 348,000Computer 109,000 473,000Office support 588.000 3,300,000
Source: Forrester Research (BusinessWeek/08.25.03)
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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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3. The Heart of the Value
Added Revolution: The “Solutions
Imperative.”
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“While everything may
be better, it is also increasingly the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
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“When McDonald’s first started exporting its formula of quality, cleanliness and service, it was
something of a novelty. … These days, quality, cleanliness and
service are a given—and people are becoming more interested in what they are eating.” —FT/12.21.2002
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“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
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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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“We make over three new product announcements a
day. Can you remember
them? Our customers can’t!”Carly Fiorina
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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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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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“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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“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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And the Winners Are …
Televisions –12%Cable TV service +5%
Toys -10%Child care +5%
Photo equipment -7%Photographer’s fees +3%
Sports Equipment -2%Admission to sporting event +3%
New car -2%Car repair +3%
Dishes & flatware -1%Eating out +2%
Gardening supplies -0.1%Gardening services +2%
Source: WSJ/05.16.03
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4. A World of Awesome
“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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“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
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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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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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WHAT CAN BROWN DO FOR YOU?
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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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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
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It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”; $750-$1,000 for flood-control
piping … so that beavers can stay.
Source: WSJ/05.21.2002
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Moving Companies
WSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick
high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure
out the right spot. …”
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<TGWvs.
>TGR
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5. “It” all adds up
to … THE BRAND.
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“WHO ARE WE?”
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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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6. Trends Worth Trillion$$$:
Women Roar.
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?????????
Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51% Cars … 60% (90%)
All consumer purchases … 83% Bank Account … 89%
Health Care … 80%
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$4.8T > Japan
9M/27.5M/$3.6T > Germany
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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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Women-owned Bus.
U.S. employees > F500 employees worldwide
Source: Martha Barletta, Marketing to Women
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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.”
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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)
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Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that cohere.*
*Redwood (UK)
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Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
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“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
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“Women don’t buy
brands. They join them.”
EVEolution
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2.6 vs. 21
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7. Re-inventing the Individual: Welcome
to a Brand You World
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26.3
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3 Weeks in May
“Training” & Prep: 187“Work”: 41
(“Other”: 17)
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1% vs.
367%
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Divas do it. Violinists do it. Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it. Surgeons do it. Cops do it.
Astronauts do it. Why don’t businesspeople do it?
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8. Boss Job One:
The Talent Obsession.
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“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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Brand = Talent.
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Model 25/8/53
Sports Franchise GM*
*48 = $500M
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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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9. Leading in Totally Screwed Up Times: The
Passion Imperative!
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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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DG to TP: “Sam is not afraid
to fail.”
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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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,
on GE’s quality program
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“I’m looking for insane
commitment. I’m no less strict with myself.” —Twyla Tharp, The Creative
Habit
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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 DePree, Herman Miller
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“Dream as if you’ll live
forever. Live as if you’ll die today.”
—James Dean
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Audie Murphy was the most decorated soldier in WW2.
He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he
never won …
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… the Good Conduct medal.
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“In Tom’s world it’s always better to try a
swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —
Fast Company /October2003
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BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
Bill Parcells