Tom Peters’ Vision21: Design Rules! DMI/11.20.2002

All slides at … tompeters.com

1. All Bets Are Off.

“The organizations we created have become tyrants “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.

“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)

2. Destruction Rules!

“We are in a brawl with no rules.” Paul Allaire

“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 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. … “ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy and slow.’ ”—The New York Times/09.04.2002

“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

C.E.O. to C.D.O.

Eric Shinseki’s (New) Army Flat. Fast. Agile. Adaptable Eric Shinseki’s (New) Army Flat. Fast. Agile. Adaptable. Light … But Lethal. Info-intense. Network-centric. Talent/ “I AM AN ARMY OF ONE.”

3. Kaizen Is an Abomination.

“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

4. Technicolor Times Call For Technicolor Responses.

“Don’t rebuild. Reimagine “Don’t rebuild. Reimagine.” The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

5. Forget It! (“Learning” = Easy. “Forgetting” = Almost Impossible.)

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

6. Action … ALWAYS … Takes Precedence.

The Kotler Doctrine: 1965-1980: R. A. F. (Ready. Aim. Fire 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!)

7. Screw-ups are … the … Mark of Excellence.

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

8. Innovation Is Easy: Hang Out with Freaks (Employees, Board Members, Customers, Suppliers, Alliance Partners, Consultants.)

Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision

9. Charge … Up the Value-added Ladder: Sell “Solutions”/ “Success”/ “Experiences”/ “Dream Fulfillment”/ Design = Soul/ Brand = ALL!

“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

The Value-added 5-Step

Step 1. “Satisfaction” to “Solutions” & “Success”

Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B 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 “We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems

“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

Keep In Mind: Customer Satisfaction versus Customer Success

Step 2. Solutions+ = Awesome Experiences

“Experiences are as distinct from services as services are from goods “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

“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 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

Step 3. Experiences+ = Dream Fulfillment

DREAM: “A dream is a complete moment in the life of a client DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

The marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” Source: Gian Luigi Longinotti-Buitoni

Step 4. The Bedrock: Design = “Soul”

“We don’t have a good language to talk about this kind of thing “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” Steve Jobs

Step 5. The “Bottom Line”: Brand Power

“We are in the twilight of a society based on data “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

10. SHE … Is the Customer!

????????? 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%

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 don’t buy brands. They join them.” EVEolution

11. TALENT TIME! (He/She Who Has the Best “Roster” Rules!)

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 (05.17.00)

12. SHE … Is the Leader!

“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:Women Managers

13. eALL. (IS/IT: Half-way = No Way.)

100 square feet

“Ebusiness is about rebuilding the organization from the ground up “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

14. The … WHITE-COLLAR REVOLUTION Will … Devour Everything in Its Path.

108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)

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

IBM’s Project eLiza!* * “Self-bootstrapping”/ “Artilects”

15. Take Charge of Your Destiny! DISTINCT … OR EXTINCT!

“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

I AM AN ARMY OF ONE

Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM! Tragedy! [Doesn’t remind you of Churchill or Gandhi or Betty Friedan, does it?]

16. YOUR CALENDAR KNOWS ALL. (You = Calendar.)

“To Don’t ” List

17. SHOW UP! (If You Care, You’re There.)

Rudy!

18. Management Role 1: GET OUT OF THE WAY. (Clear the Way 18. Management Role 1: GET OUT OF THE WAY. (Clear the Way.) (“Manager” = Hurdle Removal Professional.)

“Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D.

19. WHAT MATTERS IS STUFF THAT MATTERS.

“I never, ever thought of myself as a businessman “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson

“Let’s make a dent in the universe.” Steve Jobs

20. Dispense ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

21. Shoot for the Stars!

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

Thank You!