Tom Peters’ 2002 We Are In A Brawl With No Rules! Farmers /01.11.2002

1. Tom Peters’ 2002 We Are In A Brawl With No Rules!Farmers/01.11.2002

2. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst

3. SWA > American + Continental + Delta + Northwest + United + USAirways.Source: Boston Globe (12.22.2001)

4. Getting Beyond Lip Service!“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

5. TP2002: GE Industrial Systems. Farmers.Message I: Same-same kills. Go way up the VA Chain. (Or else.)Transformation or bust: Full-service/ solutions provider. Great rep … but … NOBODYOWNSTHESPACE.Message II:All dogs must learn … lotsa … new tricks.(Bad news: Everybody’s after the same space. Mr. Darwin is on the prowl!)

6. Diversity Marketing … Communities of Interest … Bank of America relationship … specialized acquisitions … Farmers Agency Dashboard … HelpPoint … licensed financial planners …etc. … etc. … etc.

7. A Brawl With No Rules.

8. All Slides Available at …tompeters.comNote: Lavender text in this file is a link.

9. “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

10. 1 day 2001 = Year’s trade in 1949, year’s FEX in 1979, year’s global calls in 1984.Source: Charles Handy, The Elephant and the Flea

11. <1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”)Ray Kurzweil

12. TP/12.01: 7 Rules for Leading/THRIVING in a Recession+1. It’s ALREADY too late.2. Show up & tell the truth—CREDIBILITY rules.3. Kill with KINDNESS.4. Sharp pencils are imperative—but don’t forget that the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter. 5. Everything’s different, everything’s the same—it’s the NEW ECONOMY, more than ever, stupid!6. “Use” the trauma to mount the bold initiatives you should have long before mounted: Flux =OPPORTUNITY.7. We’re in a War of Organizational Models—from retail to the Pentagon. IDEAS MATTER MOST.

13. New Org I: A White Collar Revolution.

14. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

15. “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.”– Stephen Hawking, in the German magazine Focus

16. IBM’s Project eLiza!

17. New Org II: IS/IT … “On the Bus” or “Off the Bus.”

18. Cisco!90% of $20B (=$50M/day)Annual savings in service and support from customer self-management: $550M(P.S.: C.Sat e >> C.Sat h)

19. Secret Cisco: Community!Customer Engineer Chat Rooms/CollaborativeDesign ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

20. Welcome to D.I.Y. Nation:“Changes in business processes will emphasize self service. Your costs as a business go down and perceivedservice goes up because customers are conducting it themselves.”Ray Lane, Oracle

21. Reuters (12.11.01):“Teens and young adults are flocking to the Web for health-related information as much as they are downloading music and playing games online and more often than shopping online, according to a national survey from the Kaiser Family Foundation.”

22. “One in Four Internet Users Seek Religious Information”—Reuters (12.24.2001) (“God trumps money, sex.”)

23. Anne Busquet/ American ExpressNot: “Age of the Internet”Is: “Age of Customer Control”

24. Amen!“The Age of the NeverSatisfied Customer”Regis McKenna

25. One Person’s OpinionTP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a “smile”: 3 on a scale of 10. Value I place on fast & accurate “digital” response: 11 on a scale of 10!!

26. “CRM has, almost universally, failed to live up to expectations.”Butler Group (UK)

27. CGE&Y (Paul Cole): “Pleasant Transaction” vs.“Systemic Opportunity.”“Better job of what we do today” vs.“Re-think overall enterprise strategy.”

28. WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

29. New Org III: The … SOLUTIONS IMPERATIVE.

30. Animating Force:The Sameness Trap

31. Quality Not Enough!“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.”J.D. Power

32. “While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,”The New York Times

33. “We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina

34. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst

35. The Big Day!

36. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

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

38. “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)

39. “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

40. New Springs = Sheets & Towels to TurnkeyCollections.Flexible sourcing.Packaging.Merchandising.Promotion.Systems & Site mgt.

41. Omnicom: 57% (of $6B) from marketing services

42. Who was the number one employer of architectureschool grads in the U.S. last year?

43. “We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm.”Jean Bellas, founder, SPACE (from SMPS Marketer)

44. “VISIONS OF A BRAND-NAME OFFICE EMPIRE.Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.”–New York Times (12.16.2001)

45. Bottom Line: The …Solutions Imperative

46. Getting Beyond Lip Service!“No longer are we only an insurance provider.Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

47. TP2002: GE Industrial Systems. Farmers.Message I: Same-same kills. Go way up the VA Chain.(Or else.)Transformation or bust: Full-service/ solutions provider. Great rep … but … NOBODYOWNSTHESPACE.Message II: All dogs must learn … lotsa … new tricks.(Bad news: Everybody’s after the same space. Mr. Darwin is on the prowl!)

48. Re-inventing the Individual.

49. “If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.”Michael Goldhaber, Wired

50. “My ancestors were printers in Amsterdam from 1510 or so until 1750 … and during that entire time they didn’t have to learn anything new.”Peter Drucker, Business 2.0 (08.22.00)