Tom Peters’ Re-imagine 2005 : Innovate! or Die! InnoDie. LONG .1110.2005

1. Tom Peters’ Re-imagine 2005:Innovate!orDie!InnoDie.LONG.1110.2005

2. Slides at …tompeters.com

3. I. Altered ContextII. Innovation ImperativeIII. Value-added LadderIV. TalentV. Leadership

4. I. Altered ContextII. Innovation ImperativeIII. Value-added LadderIV. TalentV. Leadership

5. Re-set the gaugesto zero!

6. 26m

7. “U.S. manufacturers and retailers are shifting their domestic warehouses and distribution facilities to China as they seek to make supply chains more efficient”—Headline, page 1, Financial Times, 11.07.2005

8. “A Return to Quotas: Limits on Textiles Could Push China Toward Making Upscale Goods”—Headline, NYT, 11.05

9. 43h

10. “From Gunpowder to the Next Big Bang: Modern China Is Set to Get Creative”—Headline, NYT, 11.05

11. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

12. 35/70

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

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

15. 600,000350,00070,000

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

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

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

19. “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

20. “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.”

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

22. SingaporeIrelandNew ZealandAustraliaThe United States of AmericaThe United Arab EmiratesChileIndiaMalaysiaThailandTaiwanKoreaThe PhilippinesGermanyItalyPortugal

23. “This is a dangerous world and it is going to become more dangerous.”“We may not be interested in chaos but chaos is interested in us.”Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

24. H5N1

25. Period!

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

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

28. 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!)

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

30. InnovateorDie!!!

31. Pathetic!

32. “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

33. Never “Home Free” …Sears, Macy’s —Wal*Mart, Target, CostCoBankAmerica, Citigroup — Fidelity, Commerce Bank, Carlyle Group, Lending Tree, PayPalIBM —Microsoft, Google, Infosys, SamsungUS Steel, Bethlehem —Nucor???? —McDonald’s, StarbucksGM, Ford —Honda, Hyundai, TataAT&T/Western Electric — Avaya, Cisco???? — Sony, Nintendo, Nokia

34. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious:Buy a very large one and just wait.”—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

35. I. Altered ContextII. Innovation ImperativeIII. Value-added LadderIV. TalentV. Leadership

36. Brilliant!

37. “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)

38. “Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasn’t turned his back on the old ways.But in his GE, the new imperatives are risk-taking, sophisticated marketing and, above all, innovation.”—BW/032805

39. Resist!

40. “Consolidate or else! This is it!” **Macy’s, Kmart, Xerox, IBM, Microsoft, TimeWarnerAOL …

41. “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

42. “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

43. “Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes money,but I’m not sure we’re actually innovating. … Our challenge is to take nanotechnology into the future, to do personalized medicine …”—Jeff Immelt/Fast Company/07.05

44. Sanford Weill, Citigroup’s Former Leader, Frustrated As Empire Is Dismantled”—Headline/NYT/07.21.05

45. “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

46. “Mr Lampert should stick to investing, not matchmaking.”—Gretchen Morgenson, Page 1, New York Times Sunday Business, 1106.05, “The Sears Catalog of Problems” (TP: So why does this S***/the Same S*** keep happening?)

47. There’s“A”and then there’s“A.”

48. Resist?

49. 1103.2005/Headline/USA Today: “Time Warner Announces 80% Higher Earnings: Company Raises Stock Buyback Goal” TP: When a so-so company’s stock is in the tank and shareholders are restless and unimpressed with short-term earnings boosts and when the company has excess cash on hand and when the company has utterly no idea how to invest the excess cash in anything exciting that will offer a great return that will lift the share price itcan buy back a big hunk of its stock which not only leads to a probable increase in share price but also relieves the company of the crushing burden of having to worry about doing anything imaginative with the money and it also puts new wealth in the hands of shareholders who following the precepts of portfolio theory can quit worrying for awhile about the hapless, unimaginative leadership of the buyback company and instead invest their newfound wealth in a firm such as Google or Amgen which always is in need of cash to fund a long list of very cool ideas which probably will result in the creation of … can you believe it … actual underlying and perhaps even sustainable value.

50. Scale?