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Tom Peters’ Re-Ima g ine2006! Business Excellence in a Disru p tive A g e Aetna National Accounts 2006 Consultants Forum/Laguna Niguel/01March2006. Tom Peters’ Re-ima g ine ! Toward Health ( care ) Excellence !. January February Duke April.
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Tom Peters’ Re-Imagine2006!Business Excellence in a Disruptive AgeAetna National Accounts 2006 Consultants Forum/Laguna Niguel/01March2006
Tom Peters’ Re-imagine!Toward Health(care) Excellence!Aetna National Accounts 2006 Consultants Forum/Laguna Niguel/01Duke2006/Part #1
THE CUSTOMER IS GOD AND THE MARKET DECIDES EVERYTHINGSource: Banner, Hua Xin Dress Co, Ltd., Rongcheng Industry Zone
“There is no job that is America’s God-given right anymore.”—Carly Fiorina/HP/January2004
“Income Confers No Immunity as Jobs Migrate”—Headline/USA Today/02.2004
No Limits?“Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy”—Headline, New York Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)
“In a global economy, the government cannotgive anybody a guaranteed success story, but you cangive people the tools to make the most of their own lives.”—WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History
The General’s Story.(And Harry’s) (And Darwin’s) (And James Yorke’s) (And the Admiral’s.)
“If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff. U. S. Army
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin
Nelson’s secret:“[Other] admirals more frightened of losing than anxious to win”
“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
“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/2004)
“Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasn’t turned his back on the old ways.But in his GE, the new imperatives are risk-taking, sophisticated marketing and, above all, innovation.”—BW/2005
Different!**“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205
???????????Millionaires/Deci-millionaires talk about “shareholder value.”*Billionaires talk about “product.”***BigCo CEOs**Gates, Ellison, Jobs, Smith, Branson, Buffett, Walton, Schultz, Murthy
“To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.”—W. Chan Kim & Renée Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/2003
“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
Summary:WallopWal*Mart16**Or: Why it’s so unbelievably easy to beat a GIANT Company
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!!)
The “Small Guys” Guide: Wallop Wal*Mart16 *Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) *A community star! (“Sell” local-ness per se. Sell the hell out of it!) *An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) *DESIGN DRIVEN! (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the professional services.)
The “Small Guys” Guide: Wallop Wal*Mart16 *Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) *Sophisticated use of information technology. (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) *Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.) *Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community.)
The “Small Guys” Guide: Wallop Wal*Mart16 *Brand-Lovemark* (*Kevin Roberts) Maniacs! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”) *Focus on women-as-clients. (Most don’t. How stupid.) *Excellence! (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)