Re-ima g ine Leadership2005 : Innovate or Die! Tom Peters/ Leaders in Sydney /26October2005

1. Tom Peters’Re-Imagine: TowardBrandTaiwan!2005 International Brand Strategy Summit TAITRA/Taipei/20October

2. Re-imagine Leadership2005:InnovateorDie!Tom Peters/Leaders in Sydney/26October2005

3. Tom Peters’ Re-Imagine!Enterprise Excellence = Design ExcellenceBetter By Design 2005Auckland/29March

4. Tom Peters’Re-Imagine: TowardBrandTaiwan!2005 International Brand Strategy Summit TAITRA/Taipei/20October

5. Slides at …tompeters.com

6. And in conclusion …

7. Musings on …BrandTaiwanTom Peters/28.10.05

8. The BrandTaiwan15Branding/BrandTaiwan is nota “program” or an “investment.”Branding/BrandTaiwanis a “state of mind.”BrandTaiwan is about National Spirit (supported by vigorous programs), not about Vigorous Programs aimed at “buying national/corporate brand power.”You cannotbuyBrandTaiwan. Period. (Though certain actions demand large investments.)BrandTaiwanstarts in Primary School.BrandTaiwan:BrandTaiwan Is a Glorious, Creative, “Hopping” State of Mind!BrandTaiwan, for instance, means broad & high & “strategic” support for the Arts at the National level.

9. The BrandTaiwan15BrandTaiwan means “spiritual” support for Weird & Creative & Non-conformist “Talent.”BrandTaiwanis an Aesthetic Idea/Ideal.BrandTaiwanneeds/demands Critical Mass.First impressions matter: BrandTaiwanbegins at the Airport. (Think Dubai, South Korea, Singapore)BrandTaiwanis a Compelling National Aspiration … or Not.BrandTaiwan is not an isolated idea. It is de facto National Policy in Singapore, Ireland, Thailand, New Zealand, Great Britain, Italy. (Etc.)BrandTaiwancallsfor Urgency & Unity of Purpose

10. The BrandTaiwan15BrandTaiwan = Cool Taiwan

11. BrandEnterprise/Taiwan“Brand-driven” is no less than a Strategic/Spiritual/Cultural / Passionate/Wholesale Commitment to Total Transformation aimed at the Creation of Glorious Intangible Value.Think: Apple, Sony, BMW, Harley Davidson, Starbucks,Virgin, FedEx, IBM, Infosys, Prada, Dubai

12. Speculations/ThoughtsBrand-driven may be feminine?Brand-driven is Excruciatingly Difficult (if not impossible) for Engineers!Brand-driven is a “youthful” State of Mind.Brand-driven demands an “open”/“emotional” “management style.”

13. To believe in Brand-drivenyou must believe (to your marrow!) in the absolute centrality of …Intangibles!

14. Re-setting All the Metrics!

15. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

16. 26m

17. 43h

18. 35/70

19. “Income Confers No Immunity as Jobs Migrate”—Headline/USA Today/February2004

20. “There is no job that is America’s God-given right anymore.”—Carly Fiorina/HP/January2004

21. 600,000350,00070,000

22. Sydney Morning Herald/ 25October2005Quantas.Lay off thousands of mechanics.Maintenance to China.

23. “There is no job that is Australia’s God-given right anymore.”—Tom Peters/10.26.2005

24. “One Singaporean workercosts as much as …3 … in Malaysia8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/08.18.03

25. “Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”:“managed asset reflation”(add to brand value of Thai textiles by demonstrating flair and design excellence)Source: The Straits Times/03.04.2004

26. “Where Having Fun Is Now O.K.”—headline NYT/04.24.05/an article about Singapore“It’s still illegal to chew gum in Singapore, but having fun in the formerly staid city-state is now officially sanctioned.”

27. Better By Design: A National StrategyNZ = Design Excellence

28. SingaporeIrelandNew ZealandAustraliaThe United States of AmericaThe United Arab EmiratesChileIndiaMalaysiaThailandThe PhilippinesGermanyItalyPortugal

29. Period!

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

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

32. Everything You Need to Know about “Strategy”: Tom’s Baker’s Dozen Axioms 1. Do you have awesome Talent … everywhere? Do you push that Talent to pursue Audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others wouldcall “problems”? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings … and does it have50 percent (or at least one-third) Women Members? 4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors of In Search of Excellence? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto? 7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”? 8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal? 10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world?11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto? 13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETEWITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

33. 13. Do you understand Business Mantra #1 of the ’00s:DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST?

34. No Option!

35. InnovateorDie!!!

36. “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 (FT/09.17.04)

37. GH/TP:“Get better”vs“Get different”

38. Resist!

39. “Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger.Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.”—Jim Collins/Time/11.29.04

40. “Shremp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring assets and building empires that just didn’t work.”—Arndt Ellinghorst/analyst/ Dresdner Kleinwort Wasserstein

41. Scale?

42. “I don’t believe in economies of scale.You don’t get better by being bigger. You get worse.”—Dick Kovacevich/Wells Fargo/Forbes08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

43. Different!

44. “Value innovation is about making the competition irrelevant by creating uncontested market space. We argue that beating the competition within the confines of the existing industry is not the way to create profitable growth.” —Chan Kim & Renée Mauborgne (INSEAD), from Blue Ocean Strategy (The Times/London)

45. Choose.

46. 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

47. 1997-2001>$600: 10% to 18%$400-$600: 49% to 32%<$400: 41% to 50%Source: Trading Up, Michael Silverstein & Neil Fiske

48. “The ‘mass market’ is dead. Consumers look for either price or quality.The middle is untenable.”—Walter Robb/COO/Whole Foods/Investors Business Daily/06.20.05

49. “Cheap” vs “Cool”: The OptionsCheap: Nowhere to go except “more cheap”!Problem: the inevitable “next Dell”/“next /Wal*Mart” arrives with new biz model; meanwhile you drift toward more complexity/ sluggishness, especially if undertake sizeable mergers.Cool: From “Cool” (with reasonable costs) to “Stay Cool”/“Better” vs “Different.” Continue/ Accelerate charge Up the VA Ladder. Tactics: (1) “Up the experience ladder,” (2) Gamechanger Innovation. If not: “Cool” drifts/staggers toward untenable “Middle.”

50. Bold!