Tom Peters Seminar2001 We Are in a Brawl with No Rules! Toledo / 10.16.2001

1. Tom Peters Seminar2001We Are in a Brawl with No Rules!Toledo/10.16.2001

2. “There will be more confusion in the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case

3. Uncertainty: We don’t know when things will get back to normal.Ambiguity: We no longer know what “normal” means.

4. BMcC: (1) Hierarchy vs. “Network organization.” (2) NWO = “Doctrine as center of gravity”/source of motivation; distributed support & decision-making;largely self-organizing; “outside the military sphere.”

5. From: Weapon v. WeaponTo:Org structure v. Org structure

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

7. “I don’t like the looks of this. Seeing as how crazy and scattered entrepreneurs have beaten the crap out of the monoliths over the last 44 years in almost every situation, I don’t like the situation. … The actual terms of engagement work against us. For some time, it’s going to be ugly.”Rich Karlgaard, Publisher, Forbes

8. StructurePart I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

9. All Slides Available at …tompeters.comNote: Lavender text in this file is a link.

10. Bonus.

11. Boss Talk/WSJProvide a simple, clear, cool & energizing focus.Obsess on TALENT.Speed > Perfection.(Clarity, motivation, rapid adjustment.)Leap > Line extension.(Beware “me-too,” perfecting yesterday.)Tell the truth.Get out of the office.Listen to customers face-to-face—in their place. Control your calendar.

12. Juergen Schrempp/DaimlerChrysler“Digital decision making”/ “the danger of the deadly wish for harmony”

13. Branding: Kevin Roberts: “The great brands have mystery and sensuality. Apple is the most sensual product since the vibrator.”/ Tina Brown: “You should be able to throw a magazine on the floor at any page and know whose magazine it is.”/

14. The Perils of “Me-too”: Stephen Hardis (Eaton):“Don’t have your resources trapped in areas that are inherently zero-sum games with a very marginal return.”/ Phil Condit (Boeing):“Just doing what your competitor does is the biggest opportunity to lose money. Douglas and Lockheed built tri-jets to the identical specs and beat each other silly.”

15. Jeff Bezos: “It’s easy to let the in-box side of your life overwhelm you, so you become a totally reactive person. The only remedy I know is to set aside some fraction of your time as your own. I use Tuesdays and Thursdays as my proactive days, when I try not to schedule meetings.”

16. Jeff Bezos: “I'm often encouraging people to go faster, even if it means a worse initial product. I want us to start learning. The cost of trying to avoid mistakes is huge in terms of speed.”

17. Robert Miller (Federal-Mogul), on Turnarounds: (1)Tell the truth. Play it straight. (2) Make decisions. Don’t study things to death. (3) Listen to the customer. They are usually more perceptive than you are about what needs to be done.”

18. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

19. Forces @ Work IThe Destruction Imperative!

20. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 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

21. “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

22. 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

23. The [New] Ge WayDYB.com

24. The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M

25. Brand InsideBrand Org:Lean, Linked, Internet-driven, Virtual

26. White Collar Revolution!

27. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

28. The Pincer 51. “Destructive” entrepreneurs/ Global Competition2. “White Collar Robots”3. THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]4. Global Outsourcing[E.g.: India, Mexico]5.Speed!!

29. “A bureaucrat is an expensive microchip.”Dan Sullivan, consultant and executive coach

30. Automation+75% of what we do: 40 “expert” decision rules!

31. IBM’s Project eLiza!

32. The Pincer 51. “Destructive” entrepreneurs/ Global Competition2. “White Collar Robots”3. THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]4. Global Outsourcing[E.g.: India, Mexico]5.Speed!!

33. “AssetlessCompany”John Bryan, CEO, on selling all Sara Lee’s manufacturing

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

35. Brand InsideBrand Work: The Professional Service Firm Model

36. So what will be the Basic Building Block of theNew Org?

37. Every job done in W.C.W. is also done “outside” …for profit!

38. Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.

39. “P.S.F.”: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++)

40. BMW’s Designworks/USA: >50% from outside work

41. eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

42. (1) Translate departmental affairs into discrete W.W.P.F. “Products.”(2)100% go on the Web.(3)Non-awesome are outsourced (75%??).(4)Remaining “Centers of Excellence” are retained & leveraged to the hilt!

43. Brand InsideThe Heart of the Value Creation Revolution: PSF Unbound!

44. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

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

46. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

47. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

48. Forget: “Customer satisfaction”! –B.N.

49. “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

50. GE’s Six Sigma+ ApproachOld view: Out of service 9 days. 4 days are transport, which is client responsibility.New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Client’s World.Source: Steve Kerr, VP, GE