Presentation on theme: "The Pinnacle of Excellence Practice Management Institute 2001 Commonwealth Tom Peters/06.14.2001."— Presentation transcript:
The Pinnacle of Excellence Practice Management Institute 2001 Commonwealth Tom Peters/06.14.2001
There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate. Steve Case
We are entering an era of no limits, with nothing to brake the cascade of human intelligence unleashed by the Information Age. The Web essentially allows all the brains on earth to communicate and share insights in real time, around the globe, all the time. Jeffrey Young, Cisco Unauthorized
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 are in 87 F100; the 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 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
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 Innovators Dilemma
09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business!
[These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard]
HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Etc. … Etc.
Architecture is becoming a commodity, traded on priceline.com. Winners will move up the value chain and become Turnkey Facilities Management providers. SMPS Exec
Brand Inside Brand Talent: The Great War for Talent
We have transitioned from an asset-based strategy to a talent-based strategy. Jeff Skilling, CEO, Enron
From 1, 2 or youre out [JW] to …Best Talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent (05.17.00)Ed Michaels
33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa132 games, 6 seasons. Tommy LasordaP,26 games. Sparky Anderson1 season.
Goal of the Year No. 1*: Find- Develop-Mentor ONE Extraordinary Person. *CEO, large professional services firm
Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers. Ed Michaels, War for Talent (05.17.00)
Enron COO: Louise Kitchen, F, 29; created EnronOnline as Skunk Works
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
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 days events? Who is better at keeping in touch with others? Source: Selling Is a Womans 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
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, Americas Competitive Secret
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Quality Not Enough! While everything may be better, it is also increasingly the same. Paul Goldberger on retail, The Sameness of Things, The New York Times
Whats Special? Customers will try low cost providers because the Majors have not given them any clear reason not to. Leading Insurance Industry Analyst (10-98)
We make over three new product announcements a day. Can you remember them? Our customers cant! Carly Fiorina
The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality. Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside Strategy 1 : Use E-Commerce to Re-invent Everything!
Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer self-management: $550M
Secret Cisco: Community! C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B free consulting) (45,000 customer problems a week solved via customer collaboration)
Welcome to D.I.Y. Nation! Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves. Ray Lane, Oracle
Anne Busquet/ American Express Not: Age of the Internet Is: Age of Customer Control
The Age of the Never Satisfied Customer Regis McKenna
WebWorld = Everything Web as a way to run your business innards Web as connector for your entire supply-demand chain Web as spiders 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 Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to Worlds Best at Everything as next door neighbor
2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed
Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications
FemaleThink/ Popcorn Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons. He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.
Women and Financial Advisors Women want … a plan, to be listened to, to be taken seriously, to read about it, to think about it. Women do not want … an in-your-face sales pitch Source: Kathleen Boyle, Wheat Boyle Butcher Singer
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)
Value Line: Top State* Investment Clubs 2000 8 … All male 19 … Coed 22 … All FEMALE * VT & Maine not included; D.C. included
Investment Club Returns Women-only clubs 1997 … 17.9% Mixed … 17.3% Men-only … 15.6% Source: National Assoc. Investors
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 theyre 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
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
Women dont buy brands. They join them. Faith Popcorn, EVEolution Faith Popcorn
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased womens power is clear to me; but it is not my bailiwick. My game is haranguing business leaders about my fact-based conviction that womens 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 Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters
Honey, are you sure you have the kind of money it takes to be looking at a car like this?
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 thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager
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
The Experience Ladder Experiences Services Goods Raw Materials
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
Message: Experience is the Last 80% Experience applies to all work!
Brand Outside Strategy 3A: A Case in Point: The Four Seasons
Practice Management Lessons from the Four Seasons Boston
Why I Stay at the Four Seasons Boston Comfort. (Its good to be home.)
Why I Stay at the Four Seasons Boston The doorman. (Recognizes me.)
The two most powerful things I know in existence: a kind word and a thoughtful gesture. Ken Langone, CEO, Invemed Associates
Why I Stay at the Four Seasons Boston The access to technology is excellent. (Ive trained them in this!)
Why I Stay at the Four Seasons Boston The bottle of Chalone chardonnay they leave for me. (They remember.)
Why I Stay at the Four Seasons Boston The fact that the GM always puts his desk chair in my room when Im in town.
Why I Stay at the Four Seasons Boston The fact that I feel okay arriving in shorts and a baseball cap. (Even though they serve princes & sheiks.)
Why I Stay at the Four Seasons Boston The clientele.
Why I Stay at the Four Seasons Boston No hairs in the bathtub. (Operational excellence.)
Why I Stay at the Four Seasons Boston Responsiveness. (Operational excellence.)
Why I Stay at the Four Seasons Boston The Brand. (I trust Izzy.)
Brand = You Must Care!Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about. Tom Chappell, Toms of MaineToms of Maine
1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall
Dare to Care! LEADERS CARE! … The true definition of leadership is service. … genuinely care … Leaders CARE! … Leadership is service. … LEADERS SERVE.
Real! Leaders are living individuals whom employees can smell, feel, touch their presence [the elevator test] … Leaders love their work. Their passion is infectious. … If you love what you do, it shows. You cant fake love and succeed.
It was much later that I realized Dads secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say. Sara Lawrence-Lightfoot, Respect