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Tom Peters’ Re-imagine
Tom Peters’ Re-imagine! Business Excellence in a Disruptive Age 10November 2003
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“Uncertainty is the only thing to be sure of
“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
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Re-imagine. Business Excellence in a Disruptive Age 1
Re-imagine! Business Excellence in a Disruptive Age 1. It is the foremost task —and responsibility— of our generation to re-imagine our enterprises and institutions, public and private. Rather strong rhetoric. But I believe it. The fundamental nature of the change that engulfs us has caught us unprepared. No aspect of the way our public and private institutions are organized must go unexamined. Or unchanged. “Foremost task,” “our generation”? Without a doubt, the answer is ... YES.
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It is the foremost task—and responsibility— of our generation to re-imagine our enterprises, private and public —from the cover, Re-imagine
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Re-imagine! 2. War-making, commerce, politics, and the essential nature of human interchange have come unglued. We are in a … Brawl with No Rules. We have to make it up as we go along. Yesterday’s strictures and structures leave us laughably—and tragically—unprepared for this Brawl with No Rules. From al Qaeda to Wal*Mart, new entrants on the world stage have flummoxed regnant institutions and their leaders.
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“We are in a brawl with no rules.” Paul Allaire
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S.A.V.
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Re-imagine. 3. Incrementalism is. Out. Destruction is … In
Re-imagine! 3. Incrementalism is .. Out. Destruction is … In. Built to last is … Out. Built to flip is … In. “Continuous improvement,” the lead mantra of the 1980s, is now downright dangerous—from the schoolroom to the battlefield. We must gut the innards of our enterprises—before the new competitors (in war or in the marketplace) do it for us/to us.
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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
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No Wiggle Room. “Incrementalism is innovation’s worst enemy
No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
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“Reward excellent failures. Punish mediocre successes
“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
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Re-imagine! There is no higher priority than the Total Transformation of all business practice to eBusiness practice—encompassing every element of the enterprise and every member of its family of alliances and partners. The Internet changes everything. Now. The new technology is the ... Real Thing. It is in its infancy. And yet it has already changed the rules, changed them so fundamentally that it will be years, if not decades, before it’s even possible to begin talking about constructing a new rule book.
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“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
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“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.
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“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
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5. Ninety percent of white-collar jobs (90 percent of all jobs) as we know them will be disemboweled in the next 15 years Done. Gone. Kaput. Re-imagine! Between the microprocessor, 60/60/24/7 connectivity, and outsourcing to developing countries, the developed nations’ white-collar jobs are ... doomed. Time frame? Zero to 15 or 20 years. How confident am I of this? Totally.
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BW Cover/02. 2003 “IS YOUR JOB NEXT
BW Cover/ “IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Research—even Financial Analysis. Can America Lose These Jobs and Still Prosper?”
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Re-imagine! 6. “Winners” (survivors!) will become de facto bosses of Me Inc Free the Cubicle Slaves! Self-reliance replaces corporate cosseting Hooray! The only defense is a good offense. Hackneyed? Sure. But no less true, because that’s so. A scary (and exciting, for me) New Age of Self-reliance is being birthed before our eyes. Old—corporate—security (lifetime employment, etc.) is evaporating.
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“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
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First Step: E-V-E-R-Y TASK MUST BE CONVERTED INTO A “BRAGGABLE
First Step: E-V-E-R-Y TASK MUST BE CONVERTED INTO A “BRAGGABLE.” (Success = Sense of Impermanence + Portfolio of Braggables + Network Mastery.)
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Re-imagine! 7. We must learn to add value through creativity … by inventing … Extraordinary Experiences … which provide scintillating “solutions” to customers’ oft unexpressed desires and dreams. Out: Tangibles. In: Intangibles. Old-fashioned manufacturing (and jobs associated therewith) is no longer the provenance of the developed nations’ economies. The Age of Services and Intangibles has arrived. Moreover, we are quickly moving beyond conventional services ... even farther out on the Intangibles Scale ... to create scintillating, value-added “experiences.” In the words of the famous bank robber, Willy Sutton: “It’s where the money is.” Don’t believe me? Ask Harley-Davidson. Or UPS (What can Brown do for you?).
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“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
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Gerstner’s IBM: Systems Integrator of choice. Global Services: $40B
Gerstner’s IBM: Systems Integrator of choice. Global Services: $40B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
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WHAT CAN BROWN DO FOR YOU?
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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
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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/
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FEES! FEES! FEES! —Cover Story, BW/09.29.03
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<TGW vs. >TGR
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Re-imagine! 8. Design Rules … in an Age of Experiences/ Dream Fulfillment.
Embracing intangibles as the prime source of economic value added means embracing ... Design. One marketing guru insists that tomorrow’s CEOs will need to trade their MBA for M3: from Master of Business Administration to Master of Metaphysical Management. (Hint: I agree.)
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Design Transforms even the [Biggest] Corporations
Design Transforms even the [Biggest] Corporations! TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)
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Re-imagine! 9. Brand Value = All Value = Obeisance to Metaphysical Management.
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“WHO ARE WE?”
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“WHAT’S OUR STORY?”
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“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
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Re-imagine. 10. WOMEN ROAR. Women buy (ALL) the stuff
Re-imagine! 10. WOMEN ROAR. Women buy (ALL) the stuff. Re-imagine the brand itself—and all business practices—around women-as purchasers.
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????????? 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%
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91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED
91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)
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Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold
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EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
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“Women don’t buy brands. They join them.” EVEolution
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2.6 vs. 21
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1. Men and women are different. 2. Very different. 3
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.
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Re-imagine! 11. Boomers & Geezers have (ALL) the money. Pay attention!
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“ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
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2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)
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Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”
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“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher, American Demographics
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Re-imagine! 12. Creative Enterprises demand … Awesome (& Creative) Talent. Everywhere.
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“When land was the scarce resource, nations battled over it
“When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH
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Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute
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Brand = Talent.
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Model 25/8/53 Sports Franchise GM
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Re-imagine! 13. WOMEN RULE. Women are … Tomorrow’s Leaders. (Period.)
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“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, BusinessWeek,
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Psssst! Wanna see my “porn” collection?
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!!!!!!!!!!!!!!! 14 to 168* *Leadership Positions/D&T/1992-2002/WIAR
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Women Rule Match market power Attributes fit N. O. W
Women Rule Match market power Attributes fit N.O.W. (New Org World) 10M biz owners
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Re-imagine! “Talent Development” rests upon Total Re-imagining of our insipid schools Those who “color outside the box” and “can’t sit still” are the New Heroes.
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“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” Jordan Ayan, AHA!
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Re-imagine. 15. Weird Wins … in Weird Times. (Innovation = Easy
Re-imagine! Weird Wins … in Weird Times (Innovation = Easy. Hang Out with Weird = Get Weird.) (Q.E.D.)
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Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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“To grow, companies need to break out of a vicious cycle of competitive benchmarking, imitation and pursuit.” —W. Chan Kim & Renée Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/
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Audie Murphy was the most decorated soldier in WW2
Audie Murphy was the most decorated soldier in WW2. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …
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… the Good Conduct medal.
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Re-imagine! Leading = Re-imagining = Unleashing Passion in One & All. Winners … Pursue Quests to Places as Yet Unimagined Leaders applaud their “followers’ ” Quirky Bravery … and egg them on to ever more wild & woolly experiments.
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“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
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