Slides* at … tompeters *short, long

1. Tom Peters’ Re-Imagine2006!Business Excellence in a Disruptive AgeInvestec/Mauritius/10March2006

2. Slides* at …tompeters.com*short, long

3. ThePepsi Challenge …

4. Re-imagine! Not Your Father’s World.

5. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

6. 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.

7. “WE ARE BEGINNING TO ACQUIRE … DIRECT AND DELIBERATE CONTROL … OVER THE EVOLUTION OF ALL LIFE FORMS … ON THE PLANET.”Source: Juan Enriquez, As The Future Catches You

8. “the metabolically dominant soldier”Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodies—and What It Means to Be Human, Joel Garreau

9. New Economy?Genentech, Amgen > Merck

10. New Economy?Sergey, Larry > Harvard

11. 1. Re-imagine Permanence: The Naked Emperor Problem!

12. Pathetic!

13. “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

14. “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

15. Rate of Leaving F5001970-1990: 4XSource: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear)

16. Lessons Learned. GE. Me.

17. 4/40

18. De-cent-ral-iz-a-tion!

19. Ex-e-cu-tion!

20. Ac-count-a-bil-ity!

21. 6:15A.M.

22. 2. Re-imagine:InnovateorDie!!

23. Not Optional!

24. “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)

25. Resist!

26. “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

27. “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/2005

28. There’s“A”and thenthere’s“A.”

29. Scale?

30. “I don’t believe in economies of scale.You don’t get better by being bigger. You get worse.”—Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

31. “The slumping giant needs to put more pep in its funds. …But size remains a handicap.”—Fortune on Fidelity Magellan/1128.05 (“There’s a practical limitation to running a fund of that size.”—Chris Traulsen, analyst, Morningstar)

32. “TOO BIG TO GROW: Why Wall Street has soured on many of corporate America’s most admired and feared companies”—headline, Newsweek, 0313.06

33. Spinoffsperform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble”—Jerry Knight/Washington Post/08.05

34. Different!

35. Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205

36. Beyond the “Pension Problem” Sedan, Less Than $20,000. Sedan, $20,000-$30,000. Sedan, $30,000-$40,000. Luxury Sedan. SUV, Less Than $30,000. SUV, More Than $30,000. Pickup Truck. Minivan. Green Car. Fun To Drive.*

37. HENEVERMENTIONEDCARS

38. ???????????Millionaires/Deci-millionaires talk about “shareholder value.”*Billionaires talk about “product.”***BigCo CEOs**Gates, Ellison, Jobs, Smith, Branson, Buffett, Walton, Schultz, Murthy

39. “Value innovation is about making the competition irrelevant by creating uncontested market space. We argue that beating the competition within the confines of the existing industry is not the way to create profitable growth.” —Chan Kim & Renée Mauborgne (INSEAD), from Blue Ocean Strategy (The Times/London)

40. “[Immelt] is now identifying technologies with which GE will …systematically set out to build entirely new industries.”—Strategy+Business, Fall 2005

41. Great Companies … SETTHEAGENDA. (Period.)

42. AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ AdventurersUS Steel … Ford … Macy’s … Sears … Litton Industries … ITT …The Gap …Limited … Wal*Mart … Tesco …P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun …Oracle … Microsoft … Google … Enron … Schwab … GE … Southwest … Laker … People Express… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … Genentech … BMW … CNN …

43. “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. …We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity.… The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness as the trauma that beset civilization in 1000 A.D.” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

44. “But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting.The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.”—Kjell Nordström and Jonas Ridderstråle, Funky Business

45. “The corporation as we know it, which is now 120 years old, isnot likely to survive the next 25 years.Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0

46. Focus!

47. Scale’s Limitations:“All Strategy Is Local:True competitive advantages are harder to find and maintain than people realize. The odds are best in tightly drawn markets, not big, sprawling ones” —Title/Bruce Greenwald & Judd Kahn/HBR09.05

48. Big WinnersLousy industry … Specialty (Ignored/No competition) … Smaller than competitors4 Traits: Sweet spot … Agility … Discipline … FOCUSSource: Alfred Marcus, Big Winners and Big Losers: The 4 Secrets of Long-term Business and Failure

49. Op-ed. Wall Street Journal. 2 March 2006: “Boutique vs. Behemoth: Upstarts Steal Market Share from the Investment Banks.”

50. The Benefits of … FOCUSED EXCELLENCEShouldice/Hernia Repair:30 min, 1% recurrence. Avg: 90 min, 10%-15% recurrence.Source: Complications, Atul Gawande