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Explore the chaos and uncertainty in the ever-evolving business world, focusing on brand strategies and organizational structures. Learn from industry leaders about adapting to change and embracing creative destruction to stay ahead in the market.
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2001 AME Annual ConferenceWe Are in a Brawl with No Rules!Tom Peters/10.10.2001
“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
Uncertainty: We don’t know when things will get back to normal.Ambiguity: We no longer know what “normal” means.
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.”
“Our military structure today is essentially one developed and designed by Napoleon.”Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
“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
From: Weapon v. WeaponTo:Org structure v. Org structure
Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership
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
“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
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
The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M
Brand InsideBrand Org:Lean, Linked, Internet-driven, Virtual
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!!
“AssetlessCompany”John Bryan, CEO, on selling all Sara Lee’s manufacturing
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”F.G.
Every job done in W.C.W. is also done “outside” …for profit!
Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.
“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%++)
eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
(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!
Brand InsideThe Heart of the Value Creation Revolution: PSF Unbound!
09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!
“These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard
HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.
“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems
“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
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
“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)
New Springs = TurnkeyCollections.Flexible sourcing.Packaging.Merchandising.Promotion.Systems & Site mgt.
“When land was the scarce resource, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH
From “1, 2 or you’re out” [JW] to …“BestTalent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)
“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)
Message: Some people are better than other people.Some people are a helluva lot better than other people.
“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.”Ed Michaels, War for Talent (05.17.00)
