Embracing Disruption: Leadership in the 21st Century

1. Tom Peters’ 2002 We Are In A Brawl With No Rules!San Jose/03.13.2002

2. Credibility 2002$200M+for “highly effective leadership and vision in a uniquely complex marketplace.” (Board of Directors)

3. Douglas Daft, Coca-Colasource: USA Today (03.05.2002)

4. Share price: -22% (S&P500: -12%).Market share: -0.4% vs. #1 rival.

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

6. Confusion Reigns.

7. “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

8. <1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”)Ray Kurzweil

9. 1 day 2001 = Year’s goods trade in 1949, year’s FEX in 1979, year’s global calls in 1984.Source: Charles Handy, The Elephant and the Flea

10. The Destruction Imperative.

11. 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

12. “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

13. 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

14. The [New] Ge WayDYB.com

15. “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.”Carl Sagan & Ann Druyan,Shadows of Forgotten Ancestors

16. Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen.Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity … in discontinuous/ambiguous times.

17. A White Collar Revolution.

18. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

19. IBM’s Project eLiza!** “Self-bootstrapping”/ “Artilects”

20. “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.”– Stephen Hawking, in the German magazine Focus

21. N.W.O./Holy Moly: Unemployment up 2% … real wage growth highest since 60s … productivity soaring.Source: BW/02.11.2002

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

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

24. 100square feet

25. Dell’s OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory:100square feet.

26. Cisco!90% of $20B (=$50M/day)Annual savings in service and support from customer self-management: $550M(P.S.: C.Sat e >> C.Sat h)

27. The Real “News”: X1,000,000TowTruckNet.com

28. New Politics: ewg.org**Environmental Working Group—stats on recipients of farm subsidies

29. WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

30. Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

31. Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.

32. “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

33. Read It Closely:“We don’t sell insurance anymore.Wesell speed.”Peter Lewis, Progressive

34. “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

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

36. “Suppose – just suppose – that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

37. Q: Is that all there is?A: Quite possibly.“Roche’s New Scientific Method”—Fast Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.”“The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”

38. “PSF” … The Professional Service Firm Model.

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

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

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

42. TP to NAPM:Youare the …Rock Stars of the B2B Age!

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

44. Model PSF …

45. (1) Translate ALL departmental activities 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!

46. PSF Unbound … the Heart of the Value-added Revolution.

47. Base Case:The Sameness Trap I

48. “While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,”The New York Times

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

50. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordstrom and Jonas Ridderstrale, Funky Business