1. Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Hitachi Data Systems/i0.20.2003

2. Slides at … tompeters.com

3. It is the foremost task— and responsibility— of our generation to re-imagine our enterprises, private and public. —from the Foreword, Re-imagine

4. 1. All Bets Are Off.

5. “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

6. “We are in a brawl with no rules.” Paul Allaire

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

8. “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

9. 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

10. “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

11. 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

12. “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

13. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

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

15. “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

16. “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

17. The Three Levels of Innovation Transformational Substantial Incremental Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

18. 2. The White Collar Revolution & the Death of Bureaucracy.

19. 108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)

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

21. “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.

22. “P&G Hires Out Employee Services to IBM” —Burlington Free Press/09.10.03/ on IBM’s 10-tear, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)

23. 3. IS/ IT/ Web … “On the Bus” or “Off the Bus.”

24. “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)

25. 100 square feet

26. “Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.” — David Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)

27. eRevolution 40,000,000 Americans (1 of 2 singles/40% of American adults) went to an online matchmaking site last month (USN&WR/09.29.03)

28. “flash mobs”(!)

29. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

30. Autobytel: $400. Wal*Mart: 13%. Source: BW(05.13.2002)

31. “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

32. “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.

33. “Our military structure today is essentially one developed and designed by Napoleon.” Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

34. From: Weapon v. Weapon To: Org structure v. Org structure

35. “Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21 st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. “In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

36. “The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.” —Edward Luttwak, on the unprecedented pace of the move toward Baghdad

37. Eric’s Army Flat. Fast. Agile. Adaptable. Light … But Lethal. Talent/ “I Am an Army of One.” Info-intense. Network-centric.

38. “There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.” Lewis Carroll

39. I’net … … allows you to dream dreams you could never have dreamed before!

40. Case: CRM

41. “CRM has, almost universally, failed to live up to expectations.” Butler Group (UK)

42. No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre- electronic age when service was more personal.”

43. CGE&Y (Paul Cole): “Pleasant Transaction” vs. “Systemic Opportunity.” “Better job of what we do today” vs. “Re- think overall enterprise strategy.”

44. Here We Go Again: Except It’s Real This Time! Bank online: 24.3M (10.2002); 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/10.21.2002

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

46. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst

47. “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

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

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

50. 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers consulting business!

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

52. 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).

53. “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)

54. Omnicom: 57% (of $6B) from marketing services

55. 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

56. IBM/Q3/10.15.03/Rev: +5% Services/Consulting: +11% Software: +5% Hardware: -5% PCs: -2% Technology/Chips: -33%

57. 5. A World of Scintillating “Experiences.”

58. “ 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

59. “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

60. “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

61. 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

62. WHAT CAN BROWN DO FOR YOU?

63. It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional” Trapper: <$20 per beaver pelt. WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ/05.21.2002

64. Moving Companies WSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure out the right spot. …”

65. 6. “It” all adds up to … THE BRAND.

66. “WHO ARE WE?”

67. “WHAT’S OUR STORY?”

68. “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

69. 7. Boss Job One: The Talent Obsession.

70. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH

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

72. Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/12.2002-01.2003

73. Model 25/8/53 Sports Franchise GM* *48 = $500M

74. From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

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

76. Brand = Talent.

77. 8. Leading in Totally Screwed-Up Times: The Passion Imperative!

78. “I don’t know.”

79. 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!)

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

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

82. DG to TP: “Sam is not afraid to fail.” * *NASA failing #1, from the shuttle disaster report (July 2003): “fear of retribution by lower-level employees.”

83. “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack)

84. Cortez!

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

86. “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

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

88. “Coca-Cola was Roberto Goizueta’s painting. It was never finished, and he was never totally satisfied with it. But he had the Sistine Chapel in his head, and he was always working on it.” — Warren Buffett

89. Have you changed civilization today? Source: HP banner ad

90. T. J. Peters 1942 – 2--- HE WAS A PLAYER!

91. Thank You !