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Tom Peters’ Excellence: The Relentless Pursuit of Dramatic Difference ! SunTrust Banks Memphis/15 November 2005. Slides at … tompeters.com* *Also see SunTrust.LONG. Re-set the Gauges to Zero !. THREE BILLION NEW CAPITALISTS —Clyde Prestowitz.
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Tom Peters’Excellence: The Relentless Pursuit of Dramatic Difference!SunTrust BanksMemphis/15 November 2005
Business Mantra #1* of the ’00s:DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST! *Mantra #2: See Mantra #1
“If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army
“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
“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
Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205
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
4X:“At London Drugs, everyone cares about everything.”—Wynne Powell
Wegmans:#1100 Best Companies to Work for84%: Grocery stores “are all alike”46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup)“Going to Wegmans is not just shopping, it’s an event.”—Christopher Hoyt, grocery consultant“You cannot separate their strategy as a retailer from their strategy as an employer.”—Darrell Rigby, Bain & Co.
7X. 730A-800P. F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
“We don’t sell insurance anymore.Wesell speed.”Peter Lewis, Progressive
1000/204/4** “Princes” & “Princesses” who said “Yes” to the Dream (top agents, confident to operate without a safety net)Source: Everybody Wins, Phil Harkins & Keith Hollihan
RE/MAX: A “LifeSuccessCompany”Source: Everybody Wins, Phil Harkins & Keith Hollihan
“The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similareducational backgrounds, coming up with similarideas, producing similarthings, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business
“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror.The thing that all these companies have in common is that they have nothing in common.They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/02.2003
Duet … Whirlpool … “washing machine” to “fabric care system”… white goods: “a sea of undifferentiated boxes”… $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” …“machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room”(complements Sub-Zero refrigerator and home-theater center)Source: New York Times Magazine/01.11.2004
1997-2001>$600: 10% to 18%$400-$600: 49% to 32%<$400: 41% to 50%Source: Trading Up, Michael Silverstein & Neil Fiske
“The ‘mass market’ is dead. Consumers look for either price or quality.The middle is untenable.”—Walter Robb/COO/Whole Foods/Investors Business Daily/06.20.05
The “Small Guys” Guide: Wallop Wal*Mart16 *Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.) *Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *“Dramatically Different” (La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) *Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
And the “M” Stands for … ?Gerstner’s IBM:“Systems Integrator of choice.” (BW)IBM Global Services:$55B
The Value-added LadderGamechanging SolutionsServicesGoods Raw Materials
“Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
Q: “Why did you buy Jordan’s Furniture?”A: “Jordan’s is spectacular.It’s all showmanship.”Source: Warren Buffet interview/Boston Sunday Globe/12.05.2004
The Value-added LadderAwesome ExperiencesGamechanging SolutionsServicesGoods Raw Materials
