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Join us for a thought-provoking discussion on the value of incremental change versus wholesale reinvention. Explore how these approaches impact innovation and the potential for driving civilization forward.
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TOM PETERS’ LESSONS IN LEADERSHIPMarriott Durham Civic Center2 May 2000
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)
1 Year = 1.5 Wal*Marts03.27.99: $167B03.27.00: $555BP.S.: Wal*Mart = #8 in 2000
No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
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)
Welcome to the Land of the True Believers!“We have the ability to turn the economy upside down, to enhance lives, and to drive civilization forward.”Michael Saylor,MicroStrategy
“It means nothing less than the total reinvention of this company.”
Jacques’ New New FordFord + MSN CarPointFord + Yahoo!Ford + OracleFord + HP/MCIWorldcomEtc.Etc.
Tony(White)-WorldPerkin-Elmer to PE Corp./Sell “core bus.”/ Dump NAME!Now: PE Biosystems, Celera Genomics (Craig Venter)$1.5B (’95) to $24B
TP2000: A Broken RecordGE Power SystemsAnheuser BuschFitLinxxYellow FreightFidelityTime Inc.
WebTotal ReinventionConsumer ControlSpeedTerror/OpportunityBrand Power
“There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.”Steve Case (2-00)
T.T.D.sThe next slide is the first of many “T.T.D.” activities. I.e.: Things To Do. These are by and large shorthand forms of training exercises I use. Also: Most of these T.T.D. slides have accompanying Notes.(See following slide.)Tom Peters
T.T.D./True or False:“incrementalism”VERSUS“innovation”?
Notes Page • This is a daunting issue. There is no “right answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. • Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!
Part I: Forces @ WorkPart II: Brand InsidePart III: Brand OutsidePart IV: Brand Leadership
Brand It!Now, More Than Ever!“The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.”Gillian Law and Nick Grant, Management [New Zealand]
Brand DefinedDistinctionExcellenceEmotional “Signature”TrustworthinessConsistencyShorthand
Forget > Learn“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”Dee Hock
“It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control
“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
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters
“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.” Art Reidel, CEO, Pharsight
“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
G.M. = The Recruitment and Development of Top Talent. [Period!]V.C. = Bets on “Talent.” Bets on Projects. [Period!]
Silicon Valley Success Secrets“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpotSource: The Economist
“Steve Ross had a wonderful philosophy: People get fired for not making mistakes.”Bob Pittman
“R & D”Intel’s venture fund: 275 investments, $3.5BSource: Fast Company (12-99)
T.T.D.Discuss the G.M./V.C. “strategy” as it applies to your unit.
Notes Page • What do “G.M.s” do? [Invite one to talk to your group.] Do you do what they do? If not, why not? How about a “G.M. Strategy”? • Repeat the above for the Life of a Venture Capitalist.
T.T.D.Evaluate your portfolio of projects [and people]: Are you placing enough interesting [long shot?] bets?
Notes Page • Be brutally honest! • Hint: This holds for you and me as individuals as well as for our unit.
The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M
Paradox ReduxAtlanta: +113,600 = #1 metro areaLayoffs [major]: BellSouth, Lockheed, Coca-Cola
Built to Last v. Built to Flip“The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.”“Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.”Fast Company (03-00)
“ALL OF THESE ‘CONVERSATIONS’ TODAY ABOUT ‘THE WEB’ WILL APPEAR SO BLOODY DAMN SILLY AND PEDESTRIAN TEN … FIVE? … THREE? … YEARS FROM NOW.” — Tom Peters (11-99) P.S.: Read Ray Kurzweil’s The Age of Spiritual Machines: When Computers Exceed Human Intelligence
“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”AP/AOL/02-00
Notes Page • So … what … exactly … are you doing to DESTROY what you [and yours] are today? List every Project that aims to ATTACK today’s “culture” and assumptions. Be specific!
