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Tom Peters’
Re-Imagine!Business Excellence in a Disruptive Age
Mortgage Bankers Association/04.07.2003
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief
of Staff, U. S. Army
“Uncertainty is the only thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset management (FT/03.27.2003)
“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and profoundly dangerous kind of
organization—one that might be called a ‘virtual state.’ On September 11 a virtual
state proved that modern societies are vulnerable as never before.”—Time/09.09.2002
From: Weapon v. Weapon
To: Org structure v. Org structure
“Our military structure today is essentially one
developed and designed by Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
“In an era when terrorists use satellite
phones and encrypted email, US gatekeepers stand armed against them with pencils
and paperwork, and archaic computer systems that don’t
talk to each other.”Boston Globe (09.30.2001)
“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly
together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business
2.0/ OCT2002
“The mechanical speed of combat vehicles has not
increased since Rommel’s day, so the difference is all in the
operational speed, faster communications and faster
decisions.” —Edward Luttwak, on the unprecedented pace of the move toward
Bagdad
“A Big Electronics Show Is All About
Connections” —headline, New York Times/ 01.13.2003/
Consumer Electronics Show > COMDEX
“Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from
the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in
registration and vice versa. The referring physician is immediately sent an email telling him his patient has
shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house
so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.
—David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002)
“If early soldiers idealized Napoleon or Patton, network-centric warriors
admire Wal*Mart, where point-of-sale-scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into
competitive advantage.”—Tom Stewart, Business 2.0
Eric’s Army
Flat.Fast.Agile.Adaptable.Light … But Lethal.Brand You/ Talent/ “I Am An ARMY Of One.”Info-intense.Network-centric.
“Float like a butterfly.
Sting like a bee.” —Ali
1. The Destruction Imperative.
“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
“Wealth in this new regime flows directly from innovation, not
optimization. That is, wealth is not gained by perfecting the known,
but by imperfectly seizing the unknown.”
Kevin Kelly, New Rules for the New Economy
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
“It’s just a fact: Survivors underperform.”
—Dick Foster
“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms
listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and
systematically allocated investment capital to innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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
“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
“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“The Industrial Revolution was about scale: vast factory complexes, skyscrapers and railway
grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution
empowers any one with a cellular phone and a bag of explosives. America’s military superiority
guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.” —Robert Kaplan, Warrior Politics
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be known as the ‘King of
the Tinkerers.’ ”CEO, large financial services company
(New York, 5-99)
Jim & Tom. Joined at the
hip. Not.
Huh?
“Quiet, workmanlike, stoic leaders bring about the big
transformations.”--JC
Pastels?
T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U. S. Grant/W. T. Sherman
TR/FDR/LBJ/RR/JFKM.L. King
C. de GaulleM. Gandhi
W. ChurchillM. Thatcher
PicassoMozart
Copernicus/Newton/EinsteinJ. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S.
McNealyA. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
“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)
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
Boyd
OODA Loop/Boyd Cycle“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST
SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the
fight” (NEVER HEAD TO HEAD)
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Blitzkrieg is far more than lightning thrusts that most people think of
when they hear the term; rather it was all about high operational tempo
and the rapid exploitation of opportunity.”/ “Arrange the mind of
the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a
bee.”—Ali
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Maneuverists”
BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
2. IS/ IT/ Web … “On the
Bus” or “Off the Bus.”
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
“The coefficient of friction associated with the grunge of business
is amazing!”Michael Schrage
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
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)
From: Supply-chain Optimization
To: Design-chain Optimization
Source: Cadence Design Systems
WebWorld = Everything
Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
Jargon Bath!
Bureaucracy free …Systemically integrated …
Internet intense …Knowledge based …
Time and location free …“Instantly” responsive …
Customer centric …Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain
tightly wired/ friction-freeInternet intense = Do it all via the Web
Knowledge based = Open accessTime and location free = Whenever, wherever
“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product
and service rapidly tailored to client requirements
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“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
Read It Closely: “We don’t sell
insurance anymore. We sell speed.”
Peter Lewis, Progressive
“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams
you could never have dreamed
before!
“Don’t rebuild. Reimagine.”
The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002
“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have
known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
“The e-conomy is one of re-intermediation, where new
technologies make it possible to radically increase complexity and
efficiency with the introduction of new marketplaces. In these markets, value
chains constantly reorganize as the demands of the consumer and
business change.”Thomas Koulopoulos, Delphi Group
Case: CRM
“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-
electronic age when service was more personal.”
Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)
CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
Here We Go Again: Except It’s Real This Time!
Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50% lower attrition
rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and
stay with the bank much longer.”
B of A: 4M of 15M (“… way beyond the early adopters”).
Source: The Wall Street Journal/10.21.2002
3. The “PSF Solution”:
The Professional Service Firm Model.
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
TP to NAPM: You are the …
Rock Stars of the
B2B Age!
Sarah: “ Daddy, what do you do?”
Daddy: “I’m a ‘cost center.’ ”
eHR*/PCC***All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
Model PSF …
(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!
“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)
4. The Heart of the Value
Added Revolution: PSFs Unbound/ The
“Solutions Imperative.”
“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
“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
“The Internet is the most effective profit-killer on earth … it stimulates a TRUE
FREE MARKET; and a real free market is the most dangerous of marketplaces for
companies selling the SAME OLD STUFF. To those with COURAGE, free markets are
great—they help kill off the deadwood competitors who don’t have the courage
to change—making way for them to LEVERAGE their DRAMATIC DIFFERENCE
into profitable growth.”—Doug Hall
The Big Day!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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).
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“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
5. 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?
From “Service’ to “Cause”
7X. 730A-800P. F12A.*
*Plus: WOW Department’” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; ’90-’00: 2,048%. Commerce
Bank/NJ ($10B). Source: FC05.02.
The “Experience Ladder”
Experiences Services
Goods Raw Materials
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
6. “It” all adds up
to … THE BRAND.
The Heart of Branding …
“WHO ARE WE?”
“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
“Apple opposes, IBM solves, Nike exhorts,
Virgin enlightens, Sony dreams, Benetton
protests. … Brands are not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It:
See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
“You do not merely want to be the best of the best. You
want to be considered the only ones who do
what you do.”
Jerry Garcia
“WHY DOES IT MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
Branding: Is-Is Not “Table”
TNT is not: TNT is: TNT is not:
Juvenile Contemporary Old-fashioned
Mindless Meaningful Elitist
Predictable Suspenseful Dull
Frivolous Exciting Slow
Superficial Powerful Self-important
7. Toward Work that Matters: The
WOW Project.
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
8. Boss Job One:
The Talent Obsession.
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
Age of AgricultureIndustrial Age
Age of Information IntensificationAge of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
Brand = Talent.*
*Duh.
Talent!
Tina Brown: “The first thing to do is to hire enough
talent that a critical mass of excitement starts to
grow.”Source: Business2.0/12.2002-01.2003
Model 25/8/53
Sports Franchise GM*
*48 = $500M
PARC’s Bob Taylor:
“Connoisseur of Talent”
Les Wexner: From sweaters to people!
“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division
for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent
Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed
Michaels
“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
“Differentiation is all about being extreme, rewarding the best and
weeding out the ineffective. … You build strong teams by treating
individuals differently. Just look at the way baseball teams pay 20-
game winning pitchers and 40-plus homerun hitters.”—Jack Welch
“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)
“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 [12/2000]
“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
Duh!“We want our associate population to mirror our
customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the
neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s
what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking
staff in the store.”—Larry Johnston, CEO, Albertson’s
“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
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
“Investors are looking more and more for a relationship with their financial
advisers. They want someone they can trust, someone who listens. In my experience, in general,
women may be better at these relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
Opportunity!
U.S. G.B. E.U. Ja.
M.Mgt. 41% 29% 18% 6%
T.Mgt. 4% 3% 2% <1%
Peak Partic. Age 45 22 27 19
% Coll. Stud. 52% 50% 48% 26%
Source: Judy 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 A students work
for the B students. The
C students run the
business. The D students dedicate the buildings.” —Assertion to Kinko’s founder
Paul Orfalea from his Mom (Fortune/05.13.02)
Ye gads: “Thomas Stanley has not only found no correlation between success in school and an
ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-
related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.
Yet the success-failure standards of most schools penalized risk takers. Most educational
systems reward those who play it safe. As a result, those who do well in school find it hard to
take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
MantraM3
Talent = Brand
What’s your company’s …
EVP?Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
Source: Ed Michaels et al., The War for Talent
Talent’s “Big Two” Rules
GREAT Finance Dept. = GREAT Football Team
DIFFERENCES Among Cello Players = DIFFERENCES
Among Hotel GMs
9. THINK WEIRD … the HVA/ High Value
Added Bedrock.
“We are crazy. We should do something when people say it is
‘crazy.’ If people say something is ‘good’, it
means someone else is already doing it.”
Hajime Mitarai, Canon
THINK WEIRD: The High Standard
Deviation Enterprise.
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
CUSTOMERS: “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
“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
“The future has already happened. It’s
just not evenly distributed.”
Adrian Slywotzky
COMPETITORS: “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
Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: “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
Top-performing Companies
“Extremely contentious boards that regard
dissent as an obligation and that treat no subject as undiscussable” —Jeffrey
Sonnenfeld, Yale School of Management
WE BECOME WHO WE
HANG WITH!
Big Idea/s
V.C. GM
PortfolioRoster
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 Bullshit 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.
10. Trends:
Women Roar.
?????????
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%
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
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
“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
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.”
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)
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.
Source: Martha Barletta, Marketing to Women
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
“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!
“Honey, are you sure you have
the kind of money it takes to
be looking at a car like this?”
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?
F.Y.I.
“Women Beat Men at Art of Investing”
Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of
stocks more often; women choose carefully and hold on for the long term)
Investment Club Returns
Women-only clubs 1997 … 17.9%Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment Clubs 2000
8 … All male19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide their mistakes from their wives.”
Source: Newsweek 01.08.01
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.4. Women buy lotsa stuff.5. WOMEN BUY A-L-L THE STUFF.6. Women’s Market = Opportunity No. 1.7. Men are (STILL) in charge.8. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.9. Women’s Market = Opportunity No. 1.10. NO SHIT.
“Customer is King”: 4,440
“Customer is Queen”: 29
Source: Steve Farber/Google search/04.2002
11. The Passion
Imperative: Leading in Totally Screwed
Up Times
The Urgency Factor: LEADERS … have a distorted
sense of time. (E.g.:
Rummy thinks he asked months ago … it was the day before yesterday.)
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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!)
“The lesson is the importance of
relentless readjustment. At Microsoft they never get it right,
but they’re constantly, relentlessly adjusting. And somehow, through
constant readjustment practice over time, they gradually weave
their way to the right place.” —George Colony, Forrester Research
“To Don’t ” List
Danger: S.I.O. (Strategic
Initiative Overload)
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.
Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
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’?”
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’?”
BZ: “I am a … Dispenser of Enthusiasm!”
“A leader is a dealer in hope.”
Napoleon
(+TP’s writing room pics)
Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
G.H.: “Create a ‘cause,’ not a ‘business.’ ”
Leaders don’t just make products and make decisions.
Leaders make meaning. – John Seeley Brown
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
Thank You!
