Tom Peters Seminar2000 Distinct or … Extinct Management Conference 2000 ENRON San Antonio 16 November 2000
“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)
“There’s going to be a fundamental change in the global economy unlike anything we have had since the cavemen began bartering.” Arnold Baker, Chief Economist, Sandia National Laboratories
“We are in a brawl with no rules.” Paul Allaire
S.A.V.
The Kotler Doctrine: : R.A.F. (Ready.Aim.Fire.) : R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)
“It used to be that the big ate the small. Now the fast eat the slow.” Geoff Yang, IVP/ (Institutional Venture Partners)
“We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Work I The Destruction Imperative!
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
“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’m sure there are success stories out there, but at this moment I draw a blank.” Mark Sirower, The Synergy Trap
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco
Lessons from the Bees! Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What the bees are telling us is that the corporate world has got it all wrong.” David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]
The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M
“The secret of fast progress is inefficiency … fast and furious and numerous failures.” Kevin Kelly
Brand Inside Brand Org: Lean, Linked, Electronic & Malleable
And Now the Equivalent … White Collar Revolution!
“Assetless Company” John Bryan, CEO, on selling all Sara Lee’s manufacturing
“The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – a company with a head but no body.” Richard Rosecrance, The Rise of the Virtual State
[“Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.]
Brand Inside Brand Work: The Professional Service Firm Model & The WOW Project
So what will be the Basic Building Block of the New Org?
Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
Dept. Head I = Sports G.M. Dept. Head II = V.C.
G.M. = The Recruitment and Development of Top Talent. [Period!] V.C. = Bets on “Talent.” Bets on Projects. [Period!]
The Raw Material … The WOW Project!
“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
Brand Inside Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH
“Seller’s Market”: Tomorrow’s Headline* “Molecular biologists are up 3 points, economists down 1/4, in moderate trading” *futureWEALTH, Stan Davis and Christopher Meyer
From “1, 2 or 3” [JW] to … “Best talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent ( )
“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s the relentless rise of the quasi- adolescents who wield them.” Michael Schrage
“Davids vs. Corporate Goliaths: Could the Record and Film Industries Be Brought Down by Teenagers?” Headline: The New York Times ( )
The Cracked Ones Let in the Light “Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.” David Ogilvy
“Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
Mantra2000 Talent = Brand
Brand Inside Brand Action: Getting Started … a Personal Perspective
Topic: Boss-free Implementation of STM /Stuff That MATTERS!
I. THE IDEA “4Fs”: F ind a F ellow F reak F araway
Heart of the Matter F2F!* *Freak to Freak … or K2K [Kook to Kook]
II. THE TOOL Prototyping Mania!
Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” Michael Schrage
“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” Michael Schrage, Serious Play
He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd
“Success is the ability to go from failure to failure without losing your enthusiasm.” Winston Churchill (as quoted by John Peterman)
N.W.O.: Was-Is Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9B, UA233 Address: Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners
Renewal = The “High S.D.” Org/Individual Pioneer Acquisitions [+ “Sell-by”] Pioneer Customers & Alliance Partners [Measure the Portfolio] Divide & Conquer [Lessons from the Bees] Pioneer Assignments/Pioneer Projects [F2F & K2K] Hire Weird [Diversity]/Train Weird/ Promote Weird/Acquire & Cherish & Pay & Promote “Six Sigma” Talent Fast/Appoint Weird Board Weed Un-weird [“One Sigma” “Talent”] Hang out with Weird [Univ. of Weird]/Lunch with Weird Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/ Prototyping Mania] Sense of Humor [Cherish Thine Failures]
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Work II The Commodity Trap
“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside Strategy 1 : Lead the Customer!
“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel
Brand Outside Strategy 2 : Use E-Commerce to Re-invent Everything!
WebWorld = Everything Web as a way to run your business’ 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
Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.
Brand Outside Strategy 3 : Fighting Back via Systems Integration!
Message B2B: “BOX” SELLERS LOSE!
Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!
: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting bus! (31,000 bods)
“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett Packard
Problem: Everybody is going after the same space!
Buzzsaw.com Builders, Owners, Architects, Contractors, Suppliers $4T industry 5,300 commercial bldg. projects’ specs on-line; +70 per day
Brand Outside Strategy 4 : Design Matters!
Design = SIMPLICITY … HONESTY … ACCESSIBILITY … ENJOYMENT Jonathan Ive (iMac)
Design = “There are three basic principles behind any well- designed product: truth, humanity, and simplicity.” Sohrab Vossoughi, Ziba Design
Design + Beauty is Fred S.’s “mediocre” thesis and Herb K.’s napkin.
Great design = One-page business plan (Jim Horan)
Design Rules! [Literally] Palm Beach County’s U.C.B. * [*Utterly Confusing Ballot]
Brand Outside Strategy 5 : It’s the Experience!
“ 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
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
The “Experience Ladder” Extraction/Raw Materials Goods Services Experiences
To 1940: Cake from flour, sugar (extraction economy): $ : Cake from Cake mix (goods economy): $ : Bakery-made cake (service economy): $ : Chuck E. Cheese (experience economy) $100.00
Brand Outside Strategy 6 : BRAND POWER!
Brand = Trust! “Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.” The Economist
“WHO ARE YOU [these days] ?” TP to Client
Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership
Brand Leadership Passion Rules!
Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership
Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander