Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age IHRSA/London/02.Oct.2003

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

Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age IHRSA/London/02.Oct.2003

1. All Bets Are Off.

“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

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

Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company

2. IS/ IT/ Web-power

“E-commerce is happening the way all the hype said it would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” —Andy Grove (BusinessWeek/August 2003)

eRevolution 40,000,000 Americans (1 of 2 singles/40% of American adults) went to an online matchmaking site last month (USN&WR/ )

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/

3. The Heart of the Value Added Revolution: The “Solutions Imperative.”

“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

“Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, Unique now... or never

: 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).

“Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?” Bob Nardelli, GE Power Systems

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

Keep In Mind: Customer Satisfaction versus Customer Success

4. 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

“Guinness as a brand is all about community. It’s about bringing people together and sharing stories. ” — Ralph Ardill, Imagination, in re Guinness Storehouse

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” Experiences Services Goods Raw Materials

“Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique now... or never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Catalyst: Canyon Ranch/Lenox MA’s Ultra-prevent Package

: 264 (120) : 211 (95) Body fat: 42% to 26% Loss: 46 fat; 7 muscle LDL: 155 to 56 Exercise: 76 days; 32 2/day Lung capacity: 81% to 119%

Lessons: Deep Med Eval + Knowledge/ Metabolic Management + Diet + Exercise + “Home Team”/ Feedback/ Support + Gestalt

5. “It” all adds up to … THE BRAND.

“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 ?”

Rules of “Radical Marketing” Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

6. Trends I: Women Roar.

????????? 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%

91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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.”

“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Women are more comfortable talking or thinking about people and relationships, while men prefer to contemplate things.” —research reported in the New York Times ( )

Senses Vision: Men, focused; Women, peripheral. Hearing: Women’s discomfort level I/2 men’s. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women

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

“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

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.

7. Trends II: Boomer Bonanza/ Godzilla Geezer.

Subject: Marketers & Stupidity “ It’s 18-44, stupid!”

Subject: Marketers & Stupidity Or is it: “18-44 is stupid, stupid!”

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

Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old

Read This! Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“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

“ ‘Age Power’ will rule the 21 st century, and we are woefully unprepared.” Ken Dychtwald, Age Power : How the 21 st Century Will Be Ruled by the New Old

8. Trends III: Brand You “Fitness.”

E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW ( )

“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

Brand You “Fitness” Self-management! Community!

Wellness = $$$$$$$$ Currently $200B, $1T by 2008 (Source: Zane Pilzer, The Next Trillion)

9. Boss Job One: The Talent Obsession.

Model 25/8/53 Sports Franchise GM

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

Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/

“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” Ed Michaels, War for Talent ( )

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

Brand = Talent.

10. Leadership for Excellence: The Passion Imperative!

“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 DePree, Herman Miller

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

Your Moment?! Obesity Epidemic! Wellness Revolution! Gonzo Geezers! Brand You “Fitness”!

Radical Web Strategy! From “Satisfaction” to “Solutions.” Great Theater! (Experiences.) Scintillating Story! (Brand.) Women Roar & Rule! Godzilla Geezer! Talent Mania! A Cause to Move the Masses!