Tom Peters Seminar2001 We Are in a Brawl with No Rules! 10.18.2001.
Tom Peters Seminar2001 THINK “WEIRD”: The High Standard Deviation Enterprise Version 02.06.01.
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Transcript of Tom Peters Seminar2001 THINK “WEIRD”: The High Standard Deviation Enterprise Version 02.06.01.
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Tom Peters Seminar2001
THINK “WEIRD”: The High Standard
Deviation EnterpriseVersion 02.06.01
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BASIC PREMISE: Nothing worries me more in 2001 than RENEWAL. Personal. Organizational. Hence this presentation. To renew is to “GO WEIRD.” That’s what I’ve come to believe. It’s almost this
simple: Have lunch with the SAME PEOPLE you “always have lunch with” …
and you won’t grow an iota. This annotated presentation is basically an expansion of the powerful [it turns out]
“LUNCH WEIRD” idea!
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Renewal = The Weird 10 = The “High S.D.” Enterprise/IndividualPioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/PassionatePiracy
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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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Enron’s secret: the Memoryless Enterprise
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Saviors-in-Waiting
Disgruntled CustomersFringe CompetitorsRogue Employees
Edge SuppliersWayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue
Employees
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“Enormous sums of money are invested to reduce cycle time, improve quality,
reengineer … Much of this money is simply wasted. The waste is due to companies’
inability to develop wide-angle vision and tap into the … power of the edge.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
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“Corporate consciousness is predictably centered around the
mainstream. The best customers, biggest competitors, and model
employees are almost invariably the focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
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Fighter Pilots … Snipers … Secret Service Agents:
“Splatter Vision” [don’t become too focused]
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
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Benchmarking, Perils of …“The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before;
he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends
him on the spot.” Mark Twain
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1. Pioneer [Weird] Acquisitions
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“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’m sure
there are success stories out there, but at this
moment I draw a blank.”Mark Sirower, The Synergy Trap
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“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
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“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …”
John Chambers, Cisco
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2. Pioneer [Weird] Customers & Alliance Partners [MEASURE the
Customer-Partner Portfolio’s S.D./Weirdness Index]
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“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
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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 Nordstrom and Jonas Ridderstrale, Funky Business
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“These days, you can’t succeed as a company if you’re consumer led –
because in a world so full of so much constant change, consumers can’t
anticipate the next big thing. Companies should be idea-
led and consumer-informed.”
Doug Atkin, partner, Merkley Newman Harty
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“Our strategies must be tied to leading edge
customers on the attack. If we focus on the defensive
customers, we will also become defensive.”John Roth, CEO, Nortel
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“There is an ominous downside to strategic supplier relationships. An
SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices
need not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
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“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, A Unique Moment
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Elliott Masie, on desirable e-Learning vendors: “I want a ‘sandbox partner,’ someone
who will openly say, ‘This is not the last word; we
don’t know exactly where we’re going.’ ”
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Funky Business: “To succeed we must stop being so goddamn
normal. In a winner-takes-all world,
normal = nothing.”
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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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“Future-defining customers may account
for only 2% to 3% of your total, but they represent a crucial window on the
future.”Adrian Slywotzky, Mercer Consultants
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“The future has already happened. It’s
just not evenly distributed.”Adrian Slywotzky
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3. Divide & Conquer/ “Sell By” [Lessons from the
Bees/ Sir Richard/ Gary H.]
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Lessons from the Bees!“Since merger mania is now the rage, what lessons can
the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of
growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point
is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What
the bees are telling us is that the corporate world has got it all wrong.”
David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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“The Futility of Size …
“[Regarding this issue] the new process of virtualization fully asserts itself. Virtualization is the recognition
that territorial size does not solve economic problems. … Economic
access must become the substitute for increasing domain.”
Richard Rosecrance, The Rise of the Virtual State
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“The Word(s)” on Vitality: Gary Hamel
“Sell By” [jettison old crap]
Spin Out [support entrepreneurs]
Spin In [buy young firms]
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The Cortez Strategy!
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“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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RM: “A lot of companies in the Valley fail.”
RN: “Maybe not enough fail.”RM: “What do you mean by that?”RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
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Jane Jacobs: Exuberant Variety vs. the Great Blight of
Dullness. F.A. Hayek: Spontaneous
Discovery. Joseph
Schumpeter: the Gales of Creative Destruction.
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Built to Last v. Built to Flip“The problem with Built to Last is that it’s a
romantic notion. Large companies are incapable of ongoing innovation, of
ongoing flexibility.”“Increasingly, successful businesses will be ephemeral. They will be built to yield
something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03-00)
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“But what if [former head of strategic planning at Royal Dutch Shell] Arie de Geus is wrong in suggesting, in The Living Company, that firms
should aspire to live forever? Greatness is fleeting and, for corporations, it will become
ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic
frenzy of value creation during a short space of time, rather than to live forever.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
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4. Pioneer Assignments/ Pioneer Projects/ Pioneer Partners [F2F: Freak-2-Freak/ 4F: Find a Fellow Freak Faraway]
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Topic: Boss-free
Implementation of STM /Stuff That
MATTERS!Version 07.20.00
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“This is all I ‘know’ in the
world!”Tom Peters
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THE IDEA
“4Fs”: Find a
Fellow Freak
Faraway
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World’s Biggest Waste …
Selling “Up”
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Recruit [a/a = 1] Friend [in the Boondocks]
Skip [Flip off] the Hierarchy!Recruit [A]nother Friend!Do Some Cool Shit! Fast!
Surround the Bastards [with WOW WINS/ results]!
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Heart of the Matter
K2K!**Kook to Kook
[Or: F2F/Freak to Freak]
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And for the 6-Person Group??
Send one “Cool Dude/Dudette” out to Find Something Cool, work
with a Cool Customer, etc. [The “Micro-Skunkworks Strategy”]
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THE NUGGET
Do Something. Do Anything.
Get Going.Now.
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Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
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Is It …
“The Oh-Shit-I-Wish-It-Were-Over Memorial Day picnic”
or
“The First Annual Seriously Kewl Celebration of Our
Incredible Staff”
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Is It …Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War for Talent via … a thoroughgoing review
of how safety and environmental issues contribute to making this a
Great Place to Work?
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Is It …Fix these bloody customer problems that
have cropped up with the new 2783B?Or …
A chance to work with a hotshot, young division GM on …
using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the
heart of the Product Design Process?
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Reframers’ Rules:
Rule 1: Never accept an assignment as given! (Please.)
Rule 2: You’re never so powerful as when you are “powerless”!
Rule 3: Every “small” project contains the entire
enterprise DNA!
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THE SOFT STUFF Show Up!Connect!
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Message: It’s Community
Organizing, stupid!
See: Saul Alinsky’s Rules for Radicals
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Are You a …
Viral Enthusiast?
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Message2000“The point is the
passion!”Charles Handy
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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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Epitaph from Hell … Epitaph from Hell …
Thomas J. Peters Thomas J. Peters
1942 - 20011942 - 2001
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”
“Support the Boss”“Respect the Chain of Command”
“Make Budget”
Source: Fortune on “Most Admired Global Corporations” [10.26.98]
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Ann Richards’ Dogma
Show up! Know your story!
Put yourself at risk every day!
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2010 “Demographics”:
By 2010, full-time workers will be in the
minoritySource: MIT study (28August2000)
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“The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by
independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.”
Thomas Malone and Robert Laubacher
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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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“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
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5. Hire Weird [Diversity]/ Train Weird/ Promote
Weird/ Pay Gobs & Promote Fast & Cherish
“Six Sigma” Talent/ Appoint a Weird Board
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“When land was the productive asset, nations
battled over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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From “1, 2 or 3” [JW] to … “Best talent in each
industry segment to build best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
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Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH
INITIATIVEE.g.: COO of IKEA to head
international expansionEd Michaels, War for Talent (05.17.00)
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So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,
$3-4M per year. Pay: $135,000 plus $90,000. Net:
$2-3M for $50K.Source: Ed Michaels et al., The War for
Talent, re Georgia Pacific
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“Top performing companies are two to four times more likely than the rest to pay what it
takes to prevent losing top performers.”
Ed Michaels, War for Talent (05.17.00)
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“We value engineers like professional athletes. We value great people at 10 times an average person
in their function.”Jerry Yang, Yahoo
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“The Rise of the Teen Guru”“They’re brilliant, ambitious,
and almost intuitively gifted at technology. A new generation
of whiz kids are gaining unprecedented power and
authority.”Source: Cover story, Brill’s Content, 7-8/00
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“Why focus on these late teens and twenty-somethings? Because they are the first
young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has
triggered the first industrial revolution in history to be led by the young.”
The Economist [12/00]
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“Where do good new ideas come from? That’s simple! From
differences. Creativity comes from unlikely juxtapositions.
The best way to maximize differences is to mix ages, cultures and
disciplines.”Nicholas Negroponte
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“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
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“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
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“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-
first-century economic community are going to need the natural
talents of women.”Helen Fisher, The First Sex: The Natural Talents of
Women and How They Are Changing the World
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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
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Axiom: Never hire anyone without an aberration in their
background!
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The NAESP …
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Attributes of Those Who “Made” the 10th Grade History Book
– Committed!– Determined to make a difference!– Focused!– Passionate! – Irrational about their life’s project!– Ahead of their time / Paradigm busters!– Impatient! / Action Obsessed
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Attributes of Those Who “Made” the 10th Grade History Book
–Made lots of people mad!–Flouted the chain of command!–Creative / Quirky / Peculiar! / Rebels! /
Irreverent!–Masters of improv / Thrive on chaos
/ Exploit chaos!
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Attributes of Those Who “Made” the 10th Grade History Book
–Forgiveness > Permission–Bone honest!–Flawed as the dickens!– “In touch” with their followers’
aspirations –Damn good at what they do!
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“Whoever is the most impertinent
has the best chance.”
W.A. Mozart
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6. Weed Un-weird [“One-sigma” “Talent,” etc.]
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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 (05.17.00)
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7. Hang Out with Weird [University of Weird]/ Lunch
with Weird/ Read & Surf Weird/ Vacate Weird
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See pp157-162, The Brand You50
A 50List within a 50List: The Renewal50
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8. R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/
Prototyping Mania]
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“Strategy meetings held once or twice a year” to “Strategy meetings needed several
times a week”
Source: New York Times on Meg Whitman/eBay
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Culture of Prototyping
“Effective prototyping may be the most valuable
core competence an innovative organization can
hope to have.”Michael Schrage
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“You can’t be a serious innovator unless and until you are ready,
willing and able to seriously play. ‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage, Serious Play
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Think about It!?
Innovation = Reaction to the Prototype
Michael Schrage
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He who has the quickest O.O.D.A.
Loops* wins!*Observe. Orient. Decide. Act. /
Col. John Boyd
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Secret:
Creating the …Rhythm of Prototyping
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9. Sense of Humor [Rhapsodize Over Thine Cool
Failures!]
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“Success is the ability to go from failure to
failure without losing your enthusiasm.”
Winston Churchill (as quoted by John Peterman)
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Fail. Forward.
Fast.
High-tech exec, PA
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10. Re-enforce a “Culture of Disrespect”/
Passionate Piracy
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“You must be the change you wish
to see in the world.”
Gandhi
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“I’d rather regret the things I have done than the things I have not.”
Lucille Ball
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“Learn not to be careful” - Photographer Diane Arbus
to her students
“Follow Your Fear” – Poet Rainer Maria Rilke
(Careful = The sidelines, per Harriet Rubin in The Princessa)
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“If you ask me what I have come to do in this world, I
who am an artist, I will reply, I am here to live my
life out loud.”Emile Zola
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Have you changed civilization today?
Source: HP banner ad
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Insouciance and Innovation as Brand Position
Virgin/BransonCisco Systems
Nokia3M
Apple(MCI)(HP)
(Snapple)
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Renewal = The Weird 10 = The “High S.D.” Enterprise/IndividualPioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners [Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners [F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs & Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/PassionatePiracy
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Button-down Org H.S.D.E. . • Acquire for market share• Suck up to biggest customers• Pursue “strategic vendors”• Bigger is better• Accept assignments as given• Hire 4.0s from “top schools”• Promote when they’ve “paid their
dues”• Appoint a “prestigious” board
• Hang out with my pals• R.A.F.• Be “professional” at all
times/Honor thine elders
• Acquire for innovation• Partner with cool customers• Seek out pioneering vendors• Break it up … to refresh• Reframe all tasks to innovate• Hire “intriguing,” wherever• Promote tomorrow if the work
product is weird and WOW• Appoint an interesting,
headstrong board• Take a freak to lunch today• F.F.F.• Stay loose, stay cool/The hell
with thine elders