Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Constellation Energy/Baltimore/

Slides at … tompeters.com* *Also … LONG

1. Change. Period. Then. Now.

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

“ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin

2. Low Odds. The Emperor Has No Clothes.

“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

3. Lessons Learned: GE & Me.

4/40

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

Ex-e- cu-tion!!

Ac-count- a-bil-ity!!

6:15A.M.

4. Only 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

5. Different.

Franchise Lost! TP: “ How many of you [600] really crave a new Chevy?” NYC/IIR/061205

$798

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

“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/

6. Bold.

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

7. More.

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

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/Stuff ‘n’ Things Goods Raw Materials

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

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

8. And More.

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 Gamechanging Solutions Services Goods Raw Materials

Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

Six Market Profiles 1. Adventures for Sale/IBM-UPS 2. The Market for Togetherness, Friendship and Love/IBM-UPS 3. The Market for Care/IBM-UPS 4. The Who-Am-I Market/IBM-UPS 5. The Market for Peace of Mind/IBM-UPS 6. The Market for Convictions/IBM-UPS Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

IBM, UPS … Dream Merchants !

9. 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

Go for the Gold !

“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia

Find the Best!

Brand = Talent.

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent

Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft

“Leaders ‘ do’ people.” —Anon.

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

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

Keep On Keepin’ On !

Relentless!* *Churchill, Grant, Patton, Welch, Bossidy, Nardelli (GE execs), UPS, FedEx, Microsoft/Gates-Ballmer, Eisner, Weill, eBay, Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong

Focus!

“I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade

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

Keep It Simple!

Napoleon’s Laws: Exactitude. Speed. Flexibility. Simplicity. Character. Moral Force. Simplicity: “The art of war does not require complicated maneuvers; the simplest are the best, and common sense is fundamental. From which one might wonder how it is generals make blunders; it is principally because they try to be clever.” Source: Jerry Manas, Napoleon

Tempo!

Tempo!* *Boyd/O.O.D.A. Loops

Integrity!

“Realism is the heart of execution.” —Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

Character!

Napoleon’s Laws: Exactitude. Speed. Flexibility. Simplicity. Character. Moral Force. Character: “A military leader must possess as much character as intellect. Men who have a great deal of intelligence and little character are the least suited. … It is preferable to have much character and little intellect.” Source: Jerry Manas, Napoleon

Dream!

“the wildest chimera of a moonstruck mind” —The Federalist on TJ’s Louisiana Purchase

Avoid … Moderation!

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

Stay Hungry. Stay Foolish. Steve Jobs

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