1. Re-imagine’s Requisites: The Leadership 11 Tom Peters/Madrid/20May2004

2. Slides at … tompeters.com

3. “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

4. “14 MILLION service jobs are in danger of being shipped overseas” — The Dobbs Report/USN&WR/11.03/re new UCB study

5. “Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04

6. Siemens Total (’94 to ’04), 376K to 415K; Germany, 218K to 167K 6X Prague (“Today it’s Hungary, tomorrow it’ll be Lithuania and Estonia”—IG Metall rep) “Assembly-line jobs are not the only ones at risk; software work is next.” Source: BusinessWeek/05.2004

7. “One Singaporean worker costs as much as … 3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/08.18.03

8. E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)

9. “The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

10. World economic output: U.S.A., 21%; EU, 16%; China, 13% (2X since1991) Source: New York Times/12.14.2003

11. Indian GDP/1990-2002: Ag, 34% to 21%; services, 40% to 56% Source: The Economist/02.04

12. Level 5 (top) ranking/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04

13. “This is a dangerous world and it is going to become more dangerous.” “We may not be interested in chaos but chaos is interested in us.” Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

14. Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.” 5. A Maniacal Bias for Action … and Utter Contempt for Those Who Don’t “Get It.” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. “Reward Excellent Failures. Punish Mediocre Successes.” (PD) 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of Brand Power.

15. The Leadership 11

16. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

18. The Leadership11 Talent Management

19. In an age of value-added through imagination, creativity and intellectual capital … the leader’s Job One is the recruitment, development and retention of awesome talent.

20. Brand = Talent.

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

22. “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

23. “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

24. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, BusinessWeek, 11.20.00

25. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

26. “ Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D.

27. “I don’t know.”

28. Quests!

29. “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” Tim Hall et al., “The New Protean Career Contract”

30. I AM A TALENT FANATIC. I STACK UP WITH THE BEST FOOTBALL COACHES. OUR TALENT IS ON QUESTS TO RE-IMAGINE TOMORROW. THE TALENT I RECRUIT AND DEVELOP IS MY PREMIER LEGACY. (Scale of 1 to 10?)

31. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

32. The Leadership11 Metabolic Management

33. The “metabolism” of enterprise- competition-invention has speeded up remarkably. It is the leader’s mission to increase—and manage—the Metabolic Rate of her or his organization.

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

35. “I’m not comfortable unless I’m uncomfortable.” — Jay Chiat

36. “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week.” Source: New York Times on Meg Whitman/eBay

37. The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.) 1980-1995: R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!)

38. WE ARE ON A PERMANENT HIGH. WE LIVE ON SPEED. WE TACK AND JIBE ON A NANOSECOND’S NOTICE. RECRIMINATION IS MINIMAL. ACTION RULES. I AM PROACTIVE AROUND THE CAUSE OF URGENCY. (Scale of 1 to 10?)

39. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

40. The Leadership11 Technology Management

41. The Internet and other associated technologies are changing … everything. The leader must take direct charge of the full-bore implementation of the new technologies. The wise leader is his own CIO.

42. 100 square feet

43. TECHNOLOGY CHANGES EVERYTHING. I AM A TRUE BELIEVER. NOW IS THE MOMENT FOR INSANELY BOLD INVESTMENT AND TOTAL CORPORATE RE-IMAGINATION. (Scale of 1 to 10?)

44. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

45. The Leadership11 Barrier Management

46. The “corporate metabolism” cannot be speeded up and the new technologies cannot be fully exploited unless all barriers to X-functional communication (throughout the entire supply and demand chain) are destroyed. The leader must lead—get directly involved in the minutiae of this STRATEGIC task.

47. “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.

48. “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

49. BARRIERS MUST GO. PERIOD. I AM INTIMATELY INVOLVED WITH THE GRUBBY DETAILS OF TOTAL PROCESS RE-DESIGN. WE WILL NOT PARTNER WITH THOSE THAT DON’T “GET IT.” (Scale of 1 t0 10?)

50. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

51. The Leadership11 Forgetful Management

52. The new competitive realities demand that we turn our backs on the ones who brung us. Every leader needs a FORMAL “forgetting strategy.”

53. 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 1987. 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 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

54. 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

55. “FORGET IT” IS MY MISSION AND MANTRA. WE MUST SEVER MANY/MOST OF OUR TIES TO THE PAST … AND IMAGINE COMPLETELY NEW WORLDS. EVERYONE KNOWS THAT “FORGETTING” IS MY PASSION. (Scale of 1 to 10?)

56. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

57. The Leadership11 Metaphysical Management

58. A brand new value proposition is emerging. We are moving toward more and more ethereal “products” and “services.” The leader must oversee this process—become the Metaphysician-in-Chief.

59. “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

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

61. “We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina

62. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

63. “These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard

64. 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).

65. “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)

66. 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/05.16.03

67. “ 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

68. “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

69. 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

70. The “Experience Ladder” Experiences Services Goods Raw Materials

71. Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center) Source: New York Times Magazine/01.11.2004

72. 1997-2001 >$600: 10% to 18% $400-$600: 49% to 32% <$400: 41% to 50% Source: Trading Up, Michael Silverstein & Neil Fiske

73. “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.]

74. I FULLY COMPREHEND THAT THE “BASIC VALUE PREMISE” IS SHIFTING … DRAMATICALLY AND RAPIDLY. I AM WHOLLY COMMITTED TO BECOMING “MASTER METAPHYSICIAN.” (Scale of 1 to 10?)

75. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

76. The Leadership11 Opportunity Management

77. The two biggest (by far) “trends” are ignored—or at least not treated as Strategic Priority One—by most. Women! Boomers & Geezers! Why? (And … what does the leader plan to do about it?)

78. Women & the Marketspace.

79. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

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)

81. Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

82. 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.”

83. EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

84. “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

85. “Women don’t buy brands. They join them.” EVEolution

86. 2.6 vs. 21

87. 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. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.

88. Boomers & Geezers.

89. 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

90. 44-65: “New Consumer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

91. “The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing

92. 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

93. “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

94. No : “Target Marketing” Yes : “Target Innovation” & “Target Delivery Systems”

95. I GET IT! WOMEN! BOOMERS & GEEZERS! IT’S WHERE THE LOOT IS! WE ARE “GOING STRATEGIC” ON THIS! (Scale of 1 to 10?)

96. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

97. The Leadership11 Portfolio Management

98. We must think of the “rosters” of talent, customers, suppliers, leader, projects, initiatives—and the Board— in terms of portfolios. I.e.: Is our portfolio as strange as these strange times demand? The leader is a “V.C.” (venture capitalist) creating and managing several strategically vital portfolios.

99. “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

100. THINK WEIRD: The High Standard Deviation Enterprise.

101. 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

102. CUSTOMERS: “Future- defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.” Adrian Slywotzky, Mercer Consultants

103. COMPETITORS: “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.” Mark Twain

104. “To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & Renee Mauborgne, “”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

105. Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01)

106. We become who we hang out with!

107. I AM A “V.C.” I OBSESS ABOUT MY VARIOUS “ROSTERS”— EMPLOYEES, CUSTOMERS, ETCETERA. I MEASURE MY ROSTERS’ “WEIRDNESS QUOTIENT.” (Scale of 1 to 10?)

108. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

109. The Leadership11 Failure Management

110. Screwing up is more important than ever in strange times. The screw-up rate is the best indicator of sufficiently rapid adaptation. The leader must “manage” the screw-up process—literally.

111. “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

112. “Perfection is achieved only by institutions on the point of collapse.” — C. Northcote Parkinson

113. DG to TP: “Sam is not afraid to fail.”

114. WE DO NO “WITCH HUNTS”! WE FULLY UNDERSTAND THAT WE ARE AS GOOD AS OUR “EXCELLENT FAILURES.” WE CHERISH THE BOLD AND BLOODIED ONES. (Scale of 1 to 10?)

115. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

116. The Leadership11 Cause Management

117. People “sign up” for causes worth pursuing. Turning the enterprise into a cause-worth-committing-to is a primary task of the leader.

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

119. “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson

120. Demo = Story “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner, Leading Minds: An Anatomy of Leadership

121. WE WILL SUCCEED TO THE EXTENT THAT OUR TEAM “CAN’T WAIT FOR THE WEEKEND TO END.” WE AIM TO DENT THE UNIVERSE! (Scale of 1 t0 10?)

122. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management

123. The Leadership11 Passion Management

124. Passion moves mountains. Creating a “passionate enterprise” is a modern leadership imperative.

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

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

127. I AM AN … ENTHUSIAST. MY ENTHUSIAM IS CONTAGIOUS. WE HAVE FUN. WE AIM TO GO ON “QUESTS” AND CHANGE THE WORLD. THAT IS MY COMMITMENT. THAT IS MY LEGACY. THAT IS MY (LOUD) LIFE. (Scale of 1 to 10?)

128. The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management