Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004
Tom Peters’ Re-Imagine! Enterprise Excellence in a Disruptive Age ACCED-I/Orlando/04.13.2003
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Transcript of Tom Peters’ Re-Imagine! Enterprise Excellence in a Disruptive Age ACCED-I/Orlando/04.13.2003
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Tom Peters’
Re-Imagine!Enterprise Excellence in a Disruptive Age
ACCED-I/Orlando/04.13.2003
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Slides at …
tompeters.com
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1. The Destruction Imperative.
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“Uncertainty is the only thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset management (FT/03.27.2003)
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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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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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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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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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3. The “PSF Solution”:
The Professional Service Firm Model.
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Sarah: “ Daddy, what do you do?”
Daddy: “I’m a ‘cost center.’ ”
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Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
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TP to NAPM: You are the …
Rock Stars of the
B2B Age!
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TP to HRMAC: You are the …
Rock Stars of the
Age of Talent!
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eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
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Model PSF …
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(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.
(3) Non-awesome are outsourced (75%??).
(4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
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“Typically in a mortgage company or financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve become more than that.
We pay for ourselves, and we actually make money for the company.”—Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
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4. The Heart of the Value
Added Revolution: PSFs Unbound/ The
“Solutions Imperative.”
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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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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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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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Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ …
He wants to capture home improvement dollars wherever and
however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling relationship”).
Source: USA Today/06.14.2002
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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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WHAT CAN BROWN DO FOR YOU?
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“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
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5. A World of Scintillating/
Awesome/ WOW “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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“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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“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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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 “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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“Car designers need to create a story. Every car provides an
opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer Audi TT
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Hmmmm(?): “Only” Words …
StoryAdventure
Smile Focus
PlotPassion
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First Step (?!): Hire a theater director, as
a consultant or FTE!
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Experience …
Cirque du Soleil
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DO YOU MEASURE UP?*
*If not, why not?
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“Most executives have no idea how to add value to a market in the metaphysical
world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique now ... or never [on the excellence of Nokia, Nike, Lego, Virgin et al.]
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6. “It” all adds up
to … THE BRAND.
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The Heart of Branding …
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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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“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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1st Law Mktg Physics: OVERT BENEFIT 2ND Law: REAL REASON TO BELIEVE
3RD Law: DRAMATIC DIFFERENCE
Source: Jump Start Your Business Brain, Doug Hall
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“WHY DOES IT MATTER TO
THE CLIENT?”
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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
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“Salt is salt is salt. Right? Not when it
comes in a blue box with a
picture of a little girl carrying an umbrella. Morton International continues to
dominate the U.S. salt market even though it charges more for a product that is
demonstrably the same as many other products
on the shelf.”
Tom Asaker, Humanfactor Marketing
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7. Toward Work that Matters: The
WOW Project.
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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8. WOW Projects for the “Powerless”: A
Surefire Recipe.
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World’s Biggest Waste …
Selling “Up”
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THE IDEA: Model F4
Find a Fellow
Freak Faraway
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F2F!/K2K!/1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
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TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
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TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
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Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
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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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9. Re-inventing the
Individual: A Brand You
World
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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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Minimum New Work SurvivalSkillsKit2002
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
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Sam’s Secret #1!
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Minimum New Work SurvivalSkillsKit2001
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial InstinctCEO/Leader/Businessperson/Closer
Mistress of ImprovSense of Humor
Intense Appetite for TechnologyGroveling Before the Young
Embracing “Marketing”Passion for Renewal
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“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
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“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
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Invent. Reinvent. Repeat.
Source: HP banner ad
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10. Leading in Totally Screwed-Up Times:
The Passion Imperative
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Purpose.
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“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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Attitude.
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Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
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Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
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Action.
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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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Focus.
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“To Don’t ” List
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Legacy.
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TP’s least favorite term: “Stewardship”*
*I want to have “exploited” resources, not “conserved” resources
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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?”
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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’?”
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Mike.
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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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Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.
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Thank You!