Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Ellie Mae/Baltimore/

Slides at … tompeters.com

It is the foremost task— and responsibility— of our generation to re-imagine our enterprises, private and public. —from the Foreword, Re-imagine

1. All Bets Are Off.

“Uncertainty is the only thing to be sure of.” —Anthony Muh, head of investment in Asia, CitiGroup Asset management (FT/ )

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

“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.

From: Weapon v. Weapon To: Org structure v. Org structure

“Dawn Meyerreicks, CTO of the Defense Intelligence 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

“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 Baghdad

Eric’s Army Flat. Fast. Agile. Adaptable. Light … But Lethal. “I Am an Army of One.” Info-intense. Network-centric.

2. The Destruction Imperative.

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

S.A.V.

“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 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

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

Rate of Leaving F : 4X Source: The Company, John Micklethwait & Adrian Wooldridge ( : One-half biggest 100 disappear)

“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

No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

“Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

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)

Boyd !

“Maneuverists” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

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)

Read It Closely: “We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

“Float like a butterfly. Sting like a bee.” —Ali

3. The White Collar Revolution & the Death of Bureaucracy.

108 X 5 vs. 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 ( )

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

4. IS/ IT/ Web … “On the Bus” or “Off the Bus.”

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( )

The Real “News”: X1,000,000 TowTruckNet.com

WebWorld = Everything Web as a way to run your business’s innards Web 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 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 World’s Best at Everything as next door neighbor

“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

“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!

Case: CRM

Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

Amen! “The Age of the Never Satisfied Customer” Regis McKenna

“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.”

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 ( ); 2X Y2000. Wells Fargo: 1/3 rd ; 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.” Source: The Wall Street Journal/

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

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

“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)

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

Base Case: The Sameness Trap

“While everything may be better, it is also increasingly the same.” Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“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 Big Day!

: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting 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).

“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

7. 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

“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

“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

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?

The “Experience Ladder” Experiences Services Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $ : Cake from Cake mix (goods economy): $ : Bakery-made cake (service economy): $ : Chuck E. Cheese (experience economy) $100.00

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/

TGR

8. “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

“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”

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, Tom’s of Maine

“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

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

Brand = Talent.

Model 25/8/53 Sports Franchise GM* *48 = $500M

“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

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

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

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

10. Trends Worth Trillion$$$: Women Roar.

Women & the Marketspace.

????????? 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% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

Men’s median income: +0.6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women

$4.8T > Japan 9M/27.5M/$3.6T > Germany

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, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

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)

Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)

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

2.6 vs. 21

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.

11. The Passion Imperative: Leading in Totally Screwed- Up Times

“A leader is a dealer in hope.” Napoleon (+TP’s writing room pics)

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

Hackneyed but none the less true: LEADERS SEE CUPS AS “HALF FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent happiness.” Lou Cannon, George ( )

The Kotler Doctrine: : R.A.F. (Ready.Aim.Fire.) : R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)

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

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