Tom Peters’ Necessary Revolution: People & Profits Circa 2025

1. Tom Peters’ Necessary Revolution: People & Profits Circa 2025 The Art of Dialogue/Dedee Shattuck Gallery/10 January 2015 Slides at tompeters.com (Also see our 23-part Master Compendium at excellencenow.com.)

2. Up To $250 To Spend On All Ships In All Destinations. 2 Days Left vs. No kidding! You Qualify! Experience An Incredible Vacation With Us :-)

3. Up To $250 To Spend On All Ships In All Destinations. 2 Days Left (1.3%) vs. No kidding! You Qualify! Experience An Incredible Vacation With Us :-) (4.1%)

4. Persado (vs. copywriter): emotion words, product characteristics, “call to action,” position of text, images Copywriter/1.3%: Up To $250 To Spend On All Ships In All Destinations. 2 Days Left vs. Algorithm/4.1%: No kidding! You Qualify! Experience An Incredible Vacation With Us :-) “A creative person is good but random. We’ve taken the randomness out by building an ontology of language.” —Lawrence Whittle, head of sales Source: Wall Street Journal/ 0825.14/ “It’s Finally Time to Take AI Seriously”

5. SENSOR PILLS:“… Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her or his medications. “This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 BILLION in emergency room visits, hospitalization, and doctor visits. An average of 130,000 Americans die each year because they don’t follow their prescription regimens closely enough.” (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.) Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data, and the Future of Privacy

6. Betterment/ “Ambitions of a Robo Adviser” —FT/1217.14/ “could put tens of thousands of U.S. investment advisors out of their jobs”

7. “Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.” Source: Business Insider, 13 May 2014: “A Hong Kong VC fund has just appointed an algorithm to its board.”

8. “Las Vegas Company Could 3D Print Your Next Car: Customers could pick up newly printed car within 24 hours” —Headline, Las Vegas Sun/ 1225.14 “This Bio-Drone Grows Itself, And Then Melts Into A Puddle Of Sugar When It's Done Flying” —Headline, Fast Company, 08 December 2014

9. NOT DEAD YET

10. “[As of 2010], No. 1 [GNP] and the rest are separated not by percentages but by factors. The U.S. economy leads China’s and Japan’s, which occupy the No. 2 and No. 3 spots, by multiples, not by percentages.The American economy [GNP] is about as big as the next three together—two of which, Japan and Germany, are allies of over sixty years’ standing.By way of metaphor, yesterday’s great powers all lived in similar-sized apartments on the same floor. In the twenty-first century, the United States occupies the penthouse across the entire sixteenth floor, while China and Japan dwell in much more modest places on the seventh and sixth floors; on the third resides Germany; France and Britain are on the second. India has just moved one flight up from the basement.Source: Josef Joffe, publisher-editor of Die Zeit, in The Myth of America’s Decline: Politics, Economics, and a Half Century of False Prophecies

11. “Taking the longer view [espoused by declinists], one would expect that the American share of the global economy had been shrinking as the various upstarts kept rising. Over the past 40 years, though, the U.S. share has remained remarkably constant. It was 27 percent in 1970 and 25.4 percent in 2012. So somebody else must be contracting faster than the United States to make room for the expanding rest. The losers in the great GDP race are the two great risers of the past, Europe and Japan.”—Josef Joffe, publisher-editor of Die Zeit, in The Myth of America’s Decline: Politics, Economics, and a Half Century of False Prophecies

12. ESP/1909-2005: The advent of mass market cars, commercial radio, routine long-distance phone calls, portable phones, cell phones, satellites, satellite phone call transmission, movies with sound, color movies, TV, TV dinners, microwave ovens, commercial use of aircraft, jets, extensive electrification, the Great Depression, Ty Cobb, Babe Ruth, Walter Johnson, Bob Feller, Barry Bonds, Derek Jeter, the West Coast Offense, the Civil Rights Movement, an African-American POTUS, Gay Pride, women win the right to vote, Gandhi, Churchill, WWI, WWII, the birth of the U.S. Navy Seabees, relativity, the A-bomb, the EEC, the EU, the Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold War, the disintegration of the USSR, the resurgence of China, the death and resurrection of Germany and Japan, Oklahoma & New Mexico & Arizona & Hawaii & Alaska become states, William Howard Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, hyperlinks, the iPod, DARPA-net, the Internet, air conditioning, weed whackers, Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, the Model T, the Cadillac Escalade, Nancy Drew, the first four Harry Potter books, antibiotics, MRIs, polio vaccine, genetic mapping, WWII rockets, space flight, man-to-the-moon, more or less permanent space station.”** (**But, alas, not long enough to see the Cubs win another World Series or to take a selfie.)

13. CONTEXT/ 1,000,000

14. 1/721: “The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett

15. “What’s really interesting is that over the nextfive years we’re going to see every industry exposed to reinvention of how people put products and services together, how work is done, what kind of jobs and skills are needed, what can be handled by technology.” —John Sculley, startup investor, former Apple CEO

16. China/Foxconn: 1,000,000robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

17. “Since 1996, manufacturing employment in China itself has actuallyfallenby an estimated25 percent. That’s over30,000,000fewerChinese workers in that sector, even while output soared by 70 percent.It’s not that American workers [AND Japanese workers] are being replaced by Chinese workers. It’s that both American and Chinese workers are being made more efficient [replaced] by automation.” —Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant Technologies

18. “Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci/multiple bypass heart-surgery robot (“Almost all health care people get is going to be done by algorithms within a decade or two.”—Michael Vassar/MetaMed)

19. “The combination of new market rules and new technology was turning the stock market into, in effect,awarof robots.”—Michael Lewis, “Goldman’s Geek Tragedy,” Vanity Fair, 09.13

20. “Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3minutes.[Pilots] have become, it’s not much of an exaggeration to say, computer operators.” —Nicholas Carr, the Atlantic, 11.13

21. “Software is eating the world.”—Marc Andreessen “Human level capability has not turned out to be a special stopping point from an engineering perspective. …” —Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

22. “The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early throes of a Great Restructuring. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

23. “The median worker is losing the race against the machine.”—Erik Brynjolfsson and Andrew McAfee, Race Against The Machine Median inflation adjusted wages, men 30-50 with jobs, 1969-2009: $33K, -27% Source: “The Slow Disappearance of the American Working Man,”Bloomberg Businessweek/08.11

24. “Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's jobs will be eliminated by new computing and robotics technology over the next 20 years, say experts[Deloitte/Oxford University].”—Headline,Telegraph (UK), 11 November2014 “The machine plays no favorites between manual and white collar labor.” —Norbert Wiener, 1958

25. IoT IoE Internet of Things/Internet of Everything

26. IoT/The Internet of Things IoE/The Internet of Everything M2M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasivecomputing Industrial Internet Etc.****** *“More than 50 BILLION connected devices by 2020” —Ericsson **Estimated 212 BILLION connected devices by 2020—IDC ***“By 2025 IoT could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)

27. “Ford is working with the healthcare industry on a solution that would notify a nearby hospital if you were having a heart attack in your car, which can send an ambulance before you even know you’re having one.” —Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things

28. GeneticsRoboticsInformaticsNanotechnology

29. Walmart SV =1,500

30. Persado (vs. copywriter): emotion words, product characteristics, “call to action,” position of text, images Copywriter/1.3%: Up To $250 To Spend On All Ships In All Destinations. 2 Days Left vs. Algorithm/4.1%: No kidding! You Qualify! Experience An Incredible Vacation With Us :-) “A creative person is good but random. We’ve taken the randomness out by building an ontology of language.” —Lawrence Whittle, head of sales Source: Wall Street Journal/ 0825.14/ “It’s Finally Time to Take AI Seriously”

31. SILVER LINING

32. “We are in no danger of running out of new combinations try. Even if technology froze today, we have more possible ways of configuring the different applications, machines, tasks, and distribution channels to create new processes and products than we could ever exhaust.”—Erik Brynjolfsson and Andrew McAfee, Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity and Irreversibly Transforming Employment and the Economy

33. Muhammad Yunus:“All human beings are entrepreneurs.When we were in the caves we were all self-employed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”—Muhammad Yunus/ The News Hour/PBS/1122.2006

34. MORAL IMPERATIVE/ HUMAN DEVELOPMENT

35. Multiple Choice Examination • You will you lose your job to: • choose one … • An offshore contractor? • A computer? • A robot? • Source: Dan Pink

36. MANDATE #1 circa 2015:Your principal moral obligation as a leader [of anything at any level] is to develop the skillset, “soft” and “hard,” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities and resources. The good news: This is also the #1 mid-to long-term … growth and profit maximization strategy!

37. In Good Business, Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, per Csikszentmihalyi, has the RESPONSIBILITY to increase the … “SUM OF HUMAN WELL-BEING.”Business is NOT “part of the community.” In terms of how adults collectively spend their waking hours: Business ISthe community. And should act accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way?) to have spirited/committed/customer-centric work force—and, ultimately, increase (maximize?) growth and profitability.

38. “Business has to give people enriching, rewarding lives …

39. 1/4,096: excellencenow.com “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

40. “It may sound radical, unconventional, and bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team.”—Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love

41. “Why in the World did you go to Siberia?”

42. Enterprise* (*at its best):An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners

43. A 15-Point Human Capital Asset Development Manifesto Tom Peters World Strategy Forum The New Rules: Reframing Capitalism Seoul/13 June 2012

44. I was intimidated by the title of a conference I addressed in Seoul, Korea. Namely, “Reframing capitalism.” And by the fact that a passel of Nobel laureates in economics would be addressing the issue. Then it occurred to me that the mid- to long-term “reframing” was more about recasting the nature of work/jobs in, for example, the face of 2020’s artificial intelligence than about whether the Spanish bailout is $100 billion or $400 billion—as nontrivial as the latter is. I.e., what the hell will the world’s four billion or so workers be doing, say, 10 years from now? I’m not sure that sophisticated econometric analyses will be all that helpful in determining an answer.

45. A 15-Point Human Capital Development Manifesto 1. “Corporate social responsibility” starts at home—i.e., inside the enterprise! MAXIMIZING GDWD/Gross Domestic Workforce Development is the primary source of mid-term and beyond growth and profitability—and maximizes national productivity and wealth. (Re enterprise profitability: If you want to serve the customer with uniform Excellence, then you must FIRST effectively and faithfully serve those who serve the customer—i.e. your employees, via maximizing tools and professional development.) 2. Regardless of the transient external situation, development of “human capital” is always the #1 priority. 3. Three-star generals and admirals (and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about training. Why is it an almost dead certainty that in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? 4. Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO or CIO or head of R&D.

46. A 15-Point Human Capital Development Manifesto 5. The training budget takes precedence over the capital budget. PERIOD. 6. Human capital development should routinely sit atop any agenda or document associated with enterprise strategy. 7. Every individual on the payroll should have a benchmarked professional growth strategy—her or his leader should be evaluated on the collective imaginativeness and execution of said strategies. 8. Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just plain vanilla common sense, that we maximize the rate of development of WOMEN leaders at every level—little if anything has a higher priority. 9. Maximum utilization of and continued development of “older workers” (to age 70—or even beyond?) is a source of immense organizational and national growth and wealth.

47. A 15-Point Human Capital Development Manifesto 10. The practical key to all human asset development activities is the 1st-line manager. “Sergeants run the Army” is an accurate, commonplace observation supported by development resources; this stricture should be applied to all enterprises. 11. The national education infrastructure—from kindergarten to continuing adult education—may well be National Priority #1. Moreover, the educational infrastructure must be altered radically in terms of both content and delivery (e.g., MOOCs) to underpin support for the creative jobs that will be more or less the sole basis of future employment and national growth and wealth creation.12. Associated with the accelerated priority of the national education infrastructure is a dramatically enhanced and appreciated and compensated role for our teachers—the “best and brightest” MUST be induced, a la Teach For America, to pursue at least a short-term teaching “career.”

48. A 15-Point Human Capital Development Manifesto 13. The great majority of us work in small enterprises; hence national growth objectives based upon human capital development MUST necessarily extend “downward,” perhaps with governmental incentives, to even 1-person enterprises. 14. Needless to say, the activities imagined here will only be possible if aided by a peerless National Information and Communication Infrastructure. 15. Associated with the above is a RADICAL reorientation of leadership education and development—throughout the enterprise/civil service/ education/continuing education infrastructure.

49. NOT ABOUT PALO ALTO

50. “Contrary to conventional corporate thinking, treating retail workers much better may make everyone (including their employers) much richer.”—Zeynep Ton/MIT, The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs & Boost Profits