Distinct or … Extinct Tom Peters Seminar2000 United Technologies Research Center East Hartford 26 June 2000

1. Distinct or … ExtinctTom Peters Seminar2000United Technologies Research CenterEast Hartford26 June 2000

2. Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

3. An Age of Passion:1 Year = 1.5 Wal*Marts03.27.99: $167B03.27.00: $555BP.S.: Wal*Mart = #8 in 2000

4. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

5. Just Say No …“I don’t intend to be known as the ‘King of the Tinkerers.’ ”CEO, large financial services company (New York, 5-99)

6. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

7. Forces @ Work IThe Destruction Imperative!

8. Forget > Learn“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”Dee Hock

9. “It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control

10. Headlines 06.15.00: Your Call!Bell Atlantic-GTEvs.Lucent

11. “Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

12. Pentium III 800MHz: $42,893.00/#Cisco Engineer: $19,000.00Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

13. Enron (per Gary Hamel/Fortune/06.00)Design an open market for ideasOffer an open market for capitalOpen up the market for talentMake like a cell: Divide and divide(“We haven’t been able to start new businesses within existing businesses”)Pay your innovators well – really well

14. Expected “Batting Average”?Intel’s venture fund: 275 investments, $8BSource: Fast Company , eCompany

15. C.E.O. to C.D.O.

16. The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M

17. Paradox ReduxAtlanta: +113,600 = #1 metro areaLayoffs [major]: BellSouth, Lockheed, Coca-Cola

18. Brand InsideBrand Org: Lean, Linked, Electronic & Malleable

19. 108 X 5vs. 8 X 1** 540 vs. 8

20. The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

21. RR on “Assetless” [J.B.] Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

22. The “&-!!+#$% in the middle”*Jim Clark on Healtheon/WebMD* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis,The New New Thing

23. [ Incidentally …CEO Jeff ArnoldAge: 30First Start-up: Age 24]

24. “This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s the relentless rise of the quasi-adolescents who wield them.”Michael Schrage

25. “A good plant engineer in a paper may create $100,000 to $300,000 in value per year. … An outstanding software product developer may create a product worth $1,000,000 to $300,000,000. … Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers”Ed Michaels, War for Talent (05.17.00)

26. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

27. So does Enron![et al.]

28. “The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.”Thomas Koulopoulos, Delphi Group

29. Brand InsideBrand Work!

30. So what will be the Basic Building Block of theNew Org?

31. Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?

32. New OrleansApril 2000:Jazz Festival + NAPM

33. Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!

34. Youare the Rock Stars of the B2B Age!

35. Message: You are Re-invention Evangelists!

36. PSF 1.0Department Headto …Managing Partner, HR [IS, etc.] Inc.

37. Enter … The WOW Project!**The Project50

38. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

39. But Does It Matter ????“On time, on budget … who cares?”anon. seminar participant (4/99)

40. “You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)

41. “Every project we take on starts with a question: How can we do what’s never been done before?”Stuart Hornery, CEO, Lend Lease

42. Implementation:A Culture of Prototyping“Effective prototyping may be the most valuable core competence an innovative organization can hope to have.”Michael Schrage

43. “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.”Michael Schrage, Serious Play

44. Think about It!?Innovation =Reaction to the PrototypeMichael Schrage

45. All-Time Prototype ChampTHE SPREAD SHEET!

46. The new metabolism!

47. He who has the quickest O.O.D.A. Loops* wins!*Observe. Orient. Decide. Act. / Col. John Boyd

48. Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune on “most admired global corporations” (10/26/98)

49. The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo

50. 1) Turn ignition key.2) Shift into drive.3) Press foot firmly on the throat of mediocrity.Source: Mercedes ad