1. Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Staffing Industry Analysts/ Chicago/03.23.2004

2. Slides at … tompeters.com

3. 1. All Bets Are Off.

4. “Uncertainty is the only thing to be sure of.” —Anthony Muh, head of investment in Asia, Citigroup Asset Management “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army

5. Jobs Technology Globalization War, Warfighting & Security

6. Jobs New Technology Globalization War, Warfighting & Security

7. The Perfect (Jobs) Storm Off-shoring WC Automation Reluctance to hire

8. “14 MILLION service jobs are in danger of being shipped overseas” — The Dobbs Report/USN&WR/11.03/re new UCB study

9. “Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04

10. We Are Not Alone: “One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/08.18.03

11. “There is no job that is America’s God-given right anymore.” —Carly Fiorina/ HP/ 01.08.2004

12. “WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?” —Headline/ Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity rather than anxiety.”)

13. Jobs Technology Globalization War, Warfighting & Security

14. prior 900 years 1900s: 1 st 20 years > 1800s 2000: 10 years for paradigm shift 21 st century: 1000X tech change than 20 th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”) Ray Kurzweil

15. Jobs Technology Globalization War, Warfighting & Security

16. “Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it will bring the two centuries of global domination by Europe and, subsequently, its giant North American offshoot to an end.” —Financial Times (09.22.2003)

17. “The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

18. Indian GDP/1990-2002: Ag, 34% to 21%; services, 40% to 56% Source: The Economist/02.04

19. Level 5 (top) ranking/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04

20. In Store: International Equality, Intranational Inequality “The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20 th century.” James Davidson & William Rees-Mogg,The Sovereign Individual

21. Jobs Technology Globalization War, Warfighting & Security

22. “This is a dangerous world and it is going to become more dangerous.” “We may not be interested in chaos but chaos is interested in us.” Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

23. Staffing Industry Rant: Tom’s Top Ten 1. Permanent employment is cooked. 2. This is your moment. 3. “Staffing” is not a commodity business. It is about … PEOPLE! 4. Client “GPA” = 1.98; modal “Grade”: D; A < 10%. (And you wonder why margins are slipping?) 5. Consolidation/“bulking up” is not the answer. 6. He who adds the most value wins. (P.S.: There are no limits!) 7. Add value in niches. 8. The V.A. game: Eat or be eaten! 9. Talent rules! Best talent rules (more)! 10. There is/should be no difference between a staffing firm’s “roster” and the New York Yankees!

24. 2. The Destruction Imperative.

25. 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

26. Rate of Leaving F500 1970-1990: 4X Source: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear)

27. “Far from being a source of comfort, bigness became a code for inflexibility.” —John Micklethwait & Adrian Wooldridge, The Company

28. “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

29. 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

30. “Conglomerates don’t work.” —James Surowiecki, The New Yorker (07.01.2002)

31. “MERGERS: Why Most Big Deals Don’t Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.” —BusinessWeek/10.14.2002

32. Market Share, Anyone? — 240 industries; market-share leader is ROA leader 29% of the time — Profit / ROA leaders: “aggressively weed out customers who generate low returns” Source: Donald V. Potter, Wall Street Journal

33. Winning the Merger Game Is Possible --Lots of deals --Little deals --Friendly deals --Stay close to core competence --Strategy is easy to understand Source: “The Mega-merger Mouse Trap”/Wall Street Journal/02.17.2004/David Harding & Sam Rovit, Bain & Co./re Comcast-Disney

34. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

35. 3. IS/ IT/ Web: “On the Bus” or “Off the Bus.”

36. “Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21 st 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

37. “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

38. 4. The White Collar Revolution.

39. Steel: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289,000 steelworkers in ’82 to 74,000 steelworkers in ’02. Source: Fortune/11.24.03

40. E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)

41. “A bureaucrat is an expensive microchip.” Dan Sullivan, consultant and executive coach

42. “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.

43. “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy

44. Ford: “Vehicle brand owner” (“design, engineer, and market, but not actually make”) Source: The Company, John Micklethwait & Adrian Wooldridge

45. 5. The “PSF Solution”: The Professional Service Firm Model.

46. Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.

47. TP to HRMAC: You are the … Rock Stars of the Age of Talent!

48. DD$21M

49. 6. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”

50. “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

51. “Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, A Unique Moment

52. “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina

53. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

54. “These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard

55. 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).

56. “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)

57. “SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank Source: Fast Company/02.04

58. 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

59. John Deere Landscapes: “This is our future.”

60. “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

61. Omnicom: 60% (of $7B) from marketing services

62. And the Winners Are … Televisions –12% Cable TV service +5% Toys -10% Child care +5% Photo equipment -7% Photographer’s fees +3% Sports Equipment -2% Admission to sporting event +3% New car -2% Car repair +3% Dishes & flatware -1% Eating out +2% Gardening supplies -0.1% Gardening services +2% Source: WSJ/05.16.03

63. IBM/Q3/10.15.03/Rev: +5% Services/Consulting: +11% Software: +5% Hardware: -5% PCs: -2% Technology/Chips: -33%

64. FEES! FEES! FEES! —Cover Story, BW/09.29.03

65. 7. A World of Scintillating “Experiences.”

66. “ 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

67. “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

68. “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

69. 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

70. WHAT CAN BROWN DO FOR YOU?

71. The “Experience Ladder” Experiences Services Goods Raw Materials

72. Bob Lutz: “I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Source: NYT 10.19.01

73. “Lexus sells its cars as containers for our sound systems. It’s marvelous.” —Sidney Harman/ Harman International

74. 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

75. TGR

76. Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center) Source: New York Times Magazine/01.11.2004

77. 8. Boss Job One: The Talent Obsession.

78. Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute

79. Brand = Talent.

80. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman, Organizing Genius

81. From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

82. Message: Some people are better than other people. Some people are a helluva lot better than other people.

83. “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)

84. My ideal job!

85. 9. Leading in Totally Screwed Up Times: The Passion Imperative.

86. G.H.: “Create a ‘cause,’ not a ‘business.’ ”

87. “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack)

88. “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003

89. Staffing Industry Rant: Tom’s Top Ten 1. Permanent employment is cooked. 2. This is your moment. 3. “Staffing” is not a commodity business. It is about … PEOPLE! 4. Client “GPA” = 1.98; modal “Grade”: D; A < 10%. (And you wonder why margins are slipping?) 5. Consolidation/“bulking up” is not the answer. 6. He who adds the most value wins. (P.S.: There are no limits!) 7. Add value in niches. 8. The V.A. game: Eat or be eaten! 9. Talent rules! Best talent rules (more)! 10. There is/should be no difference between a staffing firm’s “roster” and the New York Yankees!

90. “If things seem under control, you’re just not going fast enough.” Mario Andretti