Tom Peters’ Re-Ima g ine2006! Business Excellence in a Disru p tive A g e REI . Workin g Master .r eformatted .21Feb

1. Tom Peters’ Re-Imagine2006!Business Excellence in a Disruptive AgeREI. WorkingMaster.reformatted.21February2006

2. Title …

3. The Incredible, Wild, Whacky, Scary, SuperCool Future …and Why We’re Not Even Remotely Prepared, and What We Can Do About It, for the Sake of of Our Careers, Work and Organizations: A Musing on Strategies, Tactics, Attitudes, Tips, and General Observations, Such as … Why a CFO Should Never Be Promoted to CEO, Why all Big Mergers stink (except on Wall Street @ bonus time), Why scale economies are over-rated, How to beat Wal*Mart, Why All MBA Programs Should Be Closed, How the “2Bs” (Bentonville and Beijing) Became the Co-capitols of the Universe, Why Only Freaks Get Things Done (in Freaky Times), Why Outrageously Audacious Devotion to Game-changing Innovation Is the Premier Survival Requisite,Why Decentralization is still the most Potent Medicine available, Why Women Are Better Leaders Than Men (and They Also Buy Everything, Though Just Try Telling That to the World’s Advertising “Geniuses”), Why Hospitals are “The Killing Fields,” and How UPS & IBM Are Actually All About Love!

4. China!

5. China!

6. China!

7. China

8. Ch

9. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

10. 3,000,000,000

11. Conference = Time OutIs not: about “picking up tips on data base privacy issues”Is: about re-imagining marketing and the idea of a truly/no-bull customer-centric enterprise(Might be: about “Gasp-worthy” game-changing breakthroughs)

12. Re-imagine!Not Your Father’s World I.

13. 26m

14. THE CUSTOMER IS GOD AND THE MARKET DECIDES EVERYTHINGSource: Banner, Hua Xin Dress Co, Ltd., Rongcheng Industry Zone

15. “The Ultimate Luxury Item Is Now Made in China”—Headline/p1/The New York Times/ 07.13.2004/Topic: Luxury Yachts made in Zhongshan

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

17. “Vaunted German Engineers Face Competition From China”—Headline, p1/WSJ/07.15.2004

18. “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

19. 43h

20. “China’s Next Export:Innovation”—McKinsey Quarterly (Cover Story)

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

22. 2007 C>E

23. 2003: 98% U.S.2005: U.S. 150; Shanghai 500

24. 168/18,500/51,000

25. 1 Houston/Month/15

26. China’s share of global consumption/2005:Cement … 47%Cotton … 37%Coal … 30% Steel … 26%Source: BusinessWeek/08.05

27. Savings, internal investment, external investment> 50% GDP

28. 2.5M vs 7.1M40/40

29. “Suddenly, China is the No. 3 consumer of high-end goods”Source: BusinessWeek, 0206.06 (from “To Get Rich Is Glorious”)

30. 35/70

31. 600,000350,00070,000

32. 600,000/engineering degrees/2004/China350,000/engineering degrees/2004/India70,000/engineering degrees/2004/U.S.A.Source: “Rising Above the Gathering Storm”/National Academies of Science/Presidential report/October 2005

33. “Beijing Rushes to Build World-class Universities”—Headline, International Herald Tribune, 1028.05**Headline, same day: “China Bank Becomes a Giant Worth $470 Billion”

34. Re-imagine!Not Your Father’s World II.

35. “Income Confers No Immunity as Jobs Migrate”—Headline/USA Today/02.2004

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

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

38. “There is no job that is Australia’sGod-given right anymore.”—Tom Peters/10.26.2005

39. No Limits?“Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy”—Headline, New York Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)

40. December 9, 2005: “Ogre to Slay? Outsource It to Chinese” (New York Times, page 1—news section). The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.

41. Developing Nations Lure Retirees, Raising Idea of ‘Outsourcing’ Boomers’ Golden Years”—Wall Street Journal, November 14.2005

42. “When I was growing up, my parents used to say to me: ‘Finish your dinner—people in China are starving.’ I, by contrast, find myself wanting to say to my daughters:‘Finish your homework—people in China and India are starving for your job.’”—Thomas Friedman/06.24.2004

43. “In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives.”—WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

44. Re-imagine! Not Your Father’s World III.

45. “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)

46. “We’re now entering a new phase of business where the group will be afranchising and management companywherebrandmanagementis central.”—David Webster, Chairman, InterContinental Hotels Group“InterContinental will now have far more to do withbrandownershipthan hotel ownership.”—James Dawson of Charles Stanley (brokerage)Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

47. “Wall Street is starting to penalize stocks for anything butorganic growth.”—Advertising Age/07.05

48. “Mergers and acquisitions get the headlines, but studies show they often end up destroying shareholder value instead of creating it. That’s one reason why organic growth is so prized by corporations and investors. In fact, if you compare the stock performance of a new index of 23 companies that are masters of organic growth to the S&P500, the Organic Growth Index beat the S&P500 handily, 31% vs. 22% over the year ending January 2004. And looking further back at a five-year period ending in 2002, the OGI walloped the S&P500, 25% vs. 3%.”—Fortune.com/06.03.2004 (The OGI includes Wal*Mart, Sysco, Harley-Davidson, Bed, Bath & Beyond, NVR)

49. Top Line, Anyone?Point (Advertising Age), to Phil Kotler: “Who should the CMO [Chief Marketing Officer]report to?”Kotler: “Maybe aChief Revenue Officer—the cost side has been squeezed, now companies have to focus on top-line growth—or maybe aChief Customer Officer.(TP: Or maybe both!)

50. “Analysts said we don’t care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see two or three years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell.They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!”—Dick Kovacevich, Wells Fargo (in ABA Banking Journal)