Re-imagine Business Excellence in Disruptive Age

1. Tom Peters’Re-imagine!Business Excellence in a Disruptive AgeDeloitte/NaplesFL/7November 2003

2. Slides at …tompeters.com

3. “Uncertainty is the only thing to be sure of.”–Anthony Muh,head of investment in Asia, Citigroup Asset Management“If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army

4. Re-imagine!Business Excellence in a Disruptive Age1. It is the foremost task —and responsibility— of our generation to re-imagine our enterprises and institutions, public and private.

5. It is the foremost task—and responsibility—of our generation to re-imagine our enterprises, private and public.—from the cover, Re-imagine

6. Re-imagine!2. War-making, commerce, politics, and the essential nature of human interchange have come unglued. We are in a … Brawl with No Rules.We have to make it up as we go along.

7. “We are in abrawl with no rules.”Paul Allaire

8. Re-imagine!3. Incrementalism is .. Out.Destruction is … In. Built to last is … Out. Built to flip is … In.

9. 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

10. Rate of Leaving F5001970-1990: 4XSource: The Company, John Micklethwait & Adrian Wooldridge

11. “Good management was the most powerful reason [leading firms] failed to stay atop their industries.Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”Clayton Christensen, The Innovator’s Dilemma

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

13. “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

14. The Three Levels of InnovationTransformationalSubstantialIncrementalSource: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

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

16. “I don’t intend to be known as the ‘King of the Tinkerers.’ ”—CEO, large financial services company

17. Re-imagine!4. There is no higher priority than the Total Transformation of all business practice to eBusiness practice—encompassing every element of the enterprise and every member of its family of alliances and partners. The Internet changes everything. Now.

18. “E-commerce is happening the way all the hype said it would. Internet deployment is happening. Broadband is happening. Everything we ever said about the Internet is happening. And it is very, very early. We can’t even glimpse IT’s potential in changing the way people work and live.” —Andy Grove (BusinessWeek/August 2003)

19. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.”—Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.

20. “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

21. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.”Ray Lane, Kleiner Perkins

22. 100square feet

23. “Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

24. OODA Loop/Boyd Cycle“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD)BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

25. 5. Ninety percent of white-collar jobs (90 percent of all jobs) as we know them will be disemboweled in the next 15 years.Done. Gone. Kaput. Re-imagine!

26. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

27. E.g. …Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years.Source: BW (01.28.02)

28. BW Cover/02.2003“IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Research—even Financial Analysis. Can America Lose These Jobs and Still Prosper?”

29. “P&G Hires Out Employee Services to IBM”—Burlington Free Press/09.10.03/on IBM’s 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)

30. “Outsourcing Trend Called ‘Threat’ to Middle-class Workforce” —USA Today/08.05.03 (Mgt jobs moving: 2000: 0; 2005: 37,000)“Loss of Factory Jobs May Have a Long Fall to Bottom” —Boston Globe/08.10.03 (75,000 per month during last 18 months)“The New Job Reality” —Cover/USN&WR/08.11.03 (“The dearth of jobs stems from factors signaling a sea change…”)

31. Predicted U.S. High-wage Job Losses20052010Managers 37,000 288,000Life sciences 3,700 37,000Design 6,000 30,000Architecture 32,000 184,000Bus Ops 61,000 348,000Computer 109,000 473,000Office support 588.000 3,300,000Source: Forrester Research (BusinessWeek/08.25.03)

32. !!!!!!!!!ebookers PLC

33. “Don’t own nothin’ if you can help it. If you can, rent your shoes.”F.G.

34. Everybody’s Doin’ It!“The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain.”—The Economist/01.11.2003

35. 6. “Winners” (survivors!) will become de facto bosses of Me Inc. Free the Cubicle Slaves! Self-reliance replaces corporate cosseting. Hooray! Re-imagine!

36. “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

37. Re-imagine!7. We must learn to add value through creativity … by inventing … Extraordinary Experiences … which provide scintillating “solutions” to customers’ oft unexpressed desires and dreams. Out: Tangibles. In: Intangibles.

38. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business

39. Gerstner’s IBM: Systems Integrator of choice. Global Services: $40B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

40. IBM/Q3/10.15.03/Rev: +5%Services/Consulting: +11%Software: +5%Hardware: -5%PCs: -2%Technology/Chips: -33%

41. WHAT CAN BROWN DO FOR YOU?

42. Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

43. And the Winners Are …Televisions –12%Cable TV service +5%Toys -10%Child care +5%Photo equipment -7%Photographer’s fees +3%Sports Equipment -2%Admission to sporting event +3%New car -2%Car repair +3%Dishes & flatware -1%Eating out +2%Gardening supplies -0.1%Gardening services +2%Source: WSJ/05.16.03

44. FEES! FEES!FEES!—Cover Story, BW/09.29.03

45. It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”Trapper: <$20 per beaver pelt.WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ/05.21.2002

46. <TGWvs.>TGR

47. Re-imagine!8. Design Rules … in an Age of Experiences/ Dream Fulfillment.

48. Design Transforms even the [Biggest] Corporations!TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

49. Re-imagine!9. Brand Value = All Value = Obeisance toMetaphysical Management.

50. “WHO ARE WE?”