Now ! Emerging Technology Conference Tom Peters/09.05.2001

1. Now!Emerging Technology ConferenceTom Peters/09.05.2001

2. HP-Compaq

3. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:I’m sure there are success stories out there, but at this moment I draw a blank.”Mark Sirower, The Synergy Trap

4. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

5. HP: -18.6%Compaq: -10.3%Dell: +4.4%

6. Message 2001:Only idiots pull in their[investment]horns during a downturn.

7. My GOAL: Radicalize Audiences!**Hint: These are Radical times!

8. 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

9. “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

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

11. Forces @ Work IThe Destruction Imperative!

12. “The corporation as we know it, which is now 120 years old, isnot likely to survive the next 25 years.Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

13. Built to Last v. Built to Flip“The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.”“Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.”Fast Company (03/2000)

14. The [New] Ge WayDYB.com

15. Brand InsideBrand Work: The Professional Service Firm Model

16. White Collar Revolution!

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

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

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

20. 11 September 2000

21. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting business!

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

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

24. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems (Home Depot)

25. “The primary strategic mission for [CEO Jeffrey] Immelt is to hasten GE’s transformation from a low-margin manufacturer to a more lucrative services company that sells solutions as much as stuff.”Newsweek/09.10.2001 (Welch raised share of services revenue from 15% o 70%)

26. “In GE’s world there are fewer but bigger customers, so there’s a vital need to maximize the relationship.”Newsweek/09.10.2001

27. “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)

28. Brand InsideBrand Action:Getting Started … a Personal Perspective

29. Topic: Boss-free Implementation of STM/Stuff That MATTERS!

30. THE IDEA: Model F4Find a FellowFreak Faraway

31. Heart of the MatterF2F!/K2K!/1@T/R.F!A.**Freak to Freak/Kook to Kook/One at a Time/ Ready.Fire!Aim.

32. And …K2KK*S2SS***Kook to Kooky Kustomer**Skunk to Scintillating Supplier

33. Sales2001

34. The Sales25: Great Salespeople …1. Know the product. (Find cool mentors, and use them.)2. Know the company.3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”)4. Love internal politics at home and abroad.5. Religiously respect competitors. (No badmouthing, no matter how provoked.)6. Wire the customer’s org.(Relationships at all levels & functions.)7. Wire the home team’s org. and vendors’ orgs.(INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

35. Politics Rules!

36. Great Salespeople …8. Never overpromise.(Even if it costs you your job.)9. Sell only by solving problems-creating profitable opportunities.(“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass.11. Know the Brand Story cold; live the Brand Story. (If not, leave.)

37. Great Salespeople …12. Think “Turnkey.” (It’s always your problem!)13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.)14. Help the customer get to know the vendor’s organization & build up their Rolodex.15. Walk away from bad business.(Even if it gets you fired.)16. Understand the idea of a “good loss.”(A bold effort that’s sometimes better than a lousy win.)17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.20. Seek several “cool customers”—who’ll drag you into Tomorrowland.

38. Great Salespeople …21. Use the word “partnership” obsessively, even though it is way overused.(“Partnership” includes folks at all levels throughout the supply chain.)22. Send thank you notes by the truckload.(NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople in great technology companies can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?25. Keep your bloody PowerPoint slides simple!

39. BOTTOM LINEThe Enemy!

40. The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo

41. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

42. Brand InsideBrand Talent: The Great War for Talent

43. “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacificchanged 20 of his 40 box plant managers to put more talented, higher paid managers in charge.He increased profitability from $25 million to $80 million in 2 years.”Ed Michaels, War for Talent (05.17.00)

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

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

46. “Boys are trained in a way that will make them irrelevant.”Phil Slater

47. The Cracked Ones Let in the Light“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

48. Brand InsideReprise: TOMORROW’S ORGS: Itinerant Potential Machines

49. TALENT POOL TO DIE FOR. Youthful. Insanely energetic. Value creativity. Risk taking is routine. Failing is normal … if you’re stretching. Want to “make their bones” in “the revolution.” Love the new technologies. Well rewarded. Don’t plan to be around 10 years from now.

50. TALENT POOL PLUS. Seek out and work with “world’s best” as needed (it’s often needed). “We aim to change the world, and we need gifted colleagues—who well may not be on our payroll.”