Tom Peters’ Re-Imagine! Leading Change, Driving Innovation TLC/Executive Leadership Series/

Public Service Announcement

You remembered, right?

Slides at … tompeters.com

1 New world.

THREE BILLION NEW CAPITALISTS —Clyde Prestowitz

Business Mantra #1* of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST! *Mantra #2: See Mantra #1

1 No option.

“If you don’t like change, you’re going to like irrelevance even less.” — General Eric Shinseki, Chief of Staff. U. S. Army

Naked Emperors.

“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 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

Lessons Learned. GE. Me.

4/40

De-cent- ral-iz- a-tion!!

Ex-e- cu-tion!!

Ac-count- a-bil-ity!!

6:15A.M.

One Strategy.

Innovate or Die!!!

“A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia

“Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasn’t turned his back on the old ways. But in his GE, the new imperatives are risk-taking, sophisticated marketing and, above all, innovation.” —BW/032805

Bold.

Small Small “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

Dramatically Different.

1 Franchise Lost! “ How many of you really crave a new Chevy?”

1 This is not a “mature category.”

1 This is an “undistingu ished category.”

1 Fight ’til Death! “I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but when I do it’s ‘ Ho-hum.’ It’s bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have created a plethora of ho-hum products and services. We swim in an ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.” — Barry Gibbons

$798

$415/SqFt/Wal*Mart $798/SqFt/Whole Foods

1 7X. 730A- 800P. F12A.* *’93-’03/10 yr annual return: WM: 17%; HD: 16%; CB: 29%. Mkt Cap: 48% p.a.

1

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/ “This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/

1 “Get better” vs “ Get different”

1 Rock Their world.

Up, Up, Up, Up, Up the Value-added Ladder.

The Value-added Ladder/ Stuff ‘n’ Things Goods Raw Materials

The Value-added Ladder/Stuff & Transactions Services Goods Raw Materials

Solve it!

And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ”) IBM Global Services* (*Integrated Systems Services Corporation) : $55B

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/

The Value-added Ladder/Transformation Game-changing Solutions Services Goods Raw Materials

Game-changing Solutions: Core Mechanism PSF (Professional Service Firm “model”) + Wow Projects (“Different” vs “Better”) + Brand You

Dream it!

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 Ritz-Carlton experience enlivens the senses, instills well- being, and fulfills even the unexpressed wishes and needs of our guests.” — from the Ritz-Carlton Credo

The Value-added Ladder/Dream-makers Dreams Come True Game-changing Solutions Services Goods Raw Materials

1 IBM, UPS … Dream Merchants !

1 Sweet Dream$$$$$$ Gas ……………… $1.75 per gallon Lipton Iced Tea.. $9.52 per gallon Ocean Spray …... $10.00 Gatorade ……….. $10.17 Diet Snapple …... $10.32 Milk ……………… $12.72 STP brake fluid.. $33.60 Pepto-Bismol ….. $ Vicks NyQuil …... $ Evian water …. $21.19 ( $46B) Source: Branded Nation, James Twitchell (2004)

1 Duh I.

1 ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

The Perfect Answer Jill and Jack buy slacks in black…

1 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. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.

1 Good Thinking, Guys! “Kodak Sharpens Digital Focus On Its Best Customers: Women” —Page 1 Headline/WSJ/

1 Duh II.

Stats 18-44: -1% 55+: +21% (55-64: +47%)

: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

1 “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing

Leadership Rules.

Make a Difference !

“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

Find the Best!

Brand = Talent.

“ Leaders ‘do’ people. ” —Anon.

No Excuses!

Wegmans: #1 100 Best Companies to Work for 84%: Grocery stores “are all alike” 46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup) “Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, grocery consultant “You cannot separate their strategy as a retailer from their strategy as an employer.” —Darrell Rigby, Bain & Co.

Put Her in Charge!

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, BusinessWeek

Make It a Grand Adventure !

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

“free to do his or her absolute best” … “allow its members to discover their greatness.”

Do It !

“Execution is the job of the business leader.” — Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

“Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

1 “ We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher

Screw It Up !

Sam’s Secret No. 1

1 Adapt !

1 “ The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory, in The New Scientist

1 Tempo!

1 Tempo! 70-10

1 Relentless !

1 “This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character: Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on—turning back was not an option for him.” —Michael Korda, Ulysses Grant

Offense!

Nelson’s secret: “[Other] admirals more frightened of losing than anxious to win”

Focus!

“Dennis, you need a ‘To- don’t ’ List !”

Spotlight on You !

“You must be the change you wish to see in the world.” Gandhi

“The First step in a ‘dramatic’ ‘organizational change program’ is obvious—dramatic personal change!” — RG

Dispense Enthusiasm !

“Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge

1 “Most important, he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05

1 “A man without a smiling face must not open a shop.” —Chinese Proverb* *Courtesy Tom Morris, The Art of Achievement

Avoid … Moderation!

“ You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch

1 Bonus: The Cup Challenge

1 For a forthcoming event, I was asked to provide some possible “sayings” on leadership, six words or less, designed go on coffee cups distributed as gifts. The results, a hasty draft, follow …

1 “Passion!” “Energy!” “Enthusiasm!” “Passion! Energy! Enthusiasm!” "Enthusiasm! Enthusiasm! Enthusiasm!" "Enthusiasm Moves Mountains!" "Nothing Matches Enthusiasm as a 'Motivator'!" “Technicolor Times Demand Technicolor Actions.” “Technicolor Times Demand Technicolor People.” “Wow. Now.” “Re-imagine!” “Re-imagine! Re-do! Re-vise! Re-vo-lu-tion!”

1 “Enthusiasm, the Ultimate Virus!”

1 "Respect!" “Leaders ‘Do’ People. Period.” “Credibility. Asset No.1.” “Tell the Truth.” “Truth Wins.” “Challenge. Challenge. Challenge.” “Two Big Goals. Tops.” “Focus. Your Calendar Never Lies.” “Good Story. Good Leader.” “Best Story Wins.” “Live the Story.” “Change the World. Accept Nothing Less.” "Dream!" “Dream. The Only Worthwhile Reality.” “Beware Those Who Agree With You.” “Seek Dissidents. Nurture Dissidents. Cherish Dissidents.”

1 Do.

1 “Excellence!” “Demand Excellence!” “Demand Excellence. The Greatest Gift.” “Excellence, Life’s Gold Standard” “Stop Talking! Start Doing!” “Execute. Execute. Execute.” “‘Good Execution’ Beats ‘Good Strategy.’” “Agility Trumps Size.” "Women make the best bosses!" “Women Rule. Believe It.” "You must care!" “Listen.” “Ask. ‘Why?’”

1 “‘Different’ beats ‘Better.’” “‘Distinct’ or ‘Extinct.’” “Innovate or Die.” “‘Me Too’ = ‘Me Dead.’” “Talent Time!” “Best Talent Wins.” “Moderation Fails in Immoderate Times.”

1 “No Less Than Excellence. Ever.”

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