Re-imagine! ShortTakes27 Tom Peters/10.23.2004

1. Re-imagine!ShortTakes27Tom Peters/10.23.2004

2. Short Takes!

3. Tom Peters:My Story.

4. A Coherent Story: Context-Solution-BedrockContext1: Intense Pressures(China/Tech/Competition)Context2: Painful/Pitiful Adjustment(Slow, Incremental, Mergers)Solution1: New Organization(Technology,Web+ Revolution, Virtual-“BestSourcing,”“PSF” “nugget”)Solution2: No Option: Value-added Strategy(Services- Solutions-Experiences-DreamFulfillment “Ladder”)Solution3: “Aesthetic” “VA” Capstone(Design-Brands)Solution4:New Markets (Women, ThirdAge)Bedrock1: Innovation(New Work, Speed, Weird, Revolution)Bedrock2: Talent(Best, Creative, Entrepreneurial, Schools)Bedrock3: Leadership(Passion, Bravado, Energy, Speed)

5. ’70s: Cost (BCG’s “cost curves”)’80s: TQM-CI (Japan)’90s: Service’00s: Solutions/Experiences’10s: Dream Fulfillment

6. Short Takes!

7. Tom Peters Summary Statements:Goals & Strategy

8. Ten Good Reasons to “Get Up in the Morning” 1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, creativity, entrepreneurial behavior. (Or else.) 3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst. 4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make Passion your Passion! (Hint: Passion makes the world go ’round.) 5. Be a champion for: Women Roar! Women Rule!6. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness. 7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some passing thought to Quality.)8. Ensure that the historically neglected “intangibles” are the prime basis for individual and enterprise success. 9. Support Globalization as the best—if indeed messy—path to maximum human freedom, security and welfare. 10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”

9. Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Story (Brand) Power.

10. Everything You Need to Know about “Strategy” 1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue Audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others wouldcall “problems”? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings … and does it have50 percent (or at least one-third) Women Members? 4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors of In Search of Excellence? Are your O.O.D.A. loops shorter than the next guy’s? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto? 7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”? 8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal? 10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world?11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto? 13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETEWITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

11. The Leadership111. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management

12. The Leadership111. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Care Management11. Passion Management

13. Importance of Success Factors by Various“Gurus”/Biased Estimates by Tom PetersStrategySystemsPassionExecutionPorter 50% 20 15 15Drucker 35% 30 15 20Bennis 25% 20 30 25Peters 15% 20 35 30

14. Short Takes!

15. Tom Peters’Re-imagine Manifesto!v09.14.2004

16. Tom Peters’ Re-imagine Manifesto! New Delhi. Thirteen September 2004. I awoke, jetlagged and sweaty, at 3A.M. I’d had a nightmare. Stark realism. I was, as usual, accused of overstatement and a few (or more) too many exclamation marks (!!!!!). Only this time I’d acceded to “They.” The “They” who believe in The Plan and Built to Last and Continuous Improvement and Quiet, Humble Leaders. No! No! I had failed, in my dream, to live up to my Fervent Beliefs! This must not pass! In a sweat, fearful that the time would not come ’round again, I turned on the light, picked up a pad of paper, and began to scribble frantically. Herewith the result.

17. Tom’s Re-imagine Manifesto! They say … my (Tom) language is extreme. I say … the times are extreme. They say I’m extreme. I say I’m a realist. They say I demand too much. I say they accept mediocrity & continuous improvement too readily. They say “We can’t handle this much change.” I say “Your job and career are in jeopardy; what other options do you have?” They say Brand You is not for everyone. I say the alternative is unemployment. They say “What’s wrong with a ‘good product’?” I say Wal*Mart or China or both are about to eat your lunch. Why can’t you provide instead a Fabulous Experience?

18. Tom’s Re-imagine Manifesto! They say “Take a deep breath. Be calm.” I say “Tell it to Wal*Mart. Tell it to China. Tell it to India. Tell it to Dell. Tell it to Microsoft.” They say the Web is a “useful tool.” I say the Web changes everything. Now. They say “We need an Initiative.” I say “We need a Dream. And Dreamers.” They say Great Design is “nice.” I say Great Design is “necessary.” They say I “overplay” the “women’s thing.” I say the share of Women in Senior Leadership Positions is a Waste and a Disgrace and a Strategic Marketing Error.

19. Tom’s Re-imagine Manifesto! They say the Women’s Market Opportunity I harp on is “doubtless important.” I say 9 out of 10, make that 99 out of 100, companies aren’t within striking distance of accurately estimating the potential of the Women’s Market … let alone exploiting it. They say the boomer-geezer market is also “doubtless important.” I say the boomer-geezer market amounts to a Redefining Moment. They say we need a “project” to exploit the women-boomer-geezer market. I say we need Total Strategic Realignment to exploit the Women-Boomer- Geezer Opportunity. They say “Wow” is “typical Tom.” I say “WOW” is a Minimum Survival Requirement. They say “effective governance” is important. I say bold-brash Boards that are representative of the market served—more than a token woman or two and an empty seat for the “forthcoming Hispanic”—are an Imperative. Now.

20. Tom’s Re-imagine Manifesto! They say “Plan it.” I say “DO IT.” They say “We need more steady, loyal employees.” I say “WE NEED MORE FREAKS WHO ROUTINELY TELL THOSE ‘IN CHARGE’ TO TAKE A FLYING LEAP … BEFORE IT’S TOO LATE.” They say “We need Good People.” I say “We need Quirky Talent.” They say “We like people who, with steely determination, say, “I can make it better.’” I say “I love people who, with a certain maniacal gleam in their eye, perhaps even a giggle, say, ‘I can turn the world upside down. Watch me!’” They say “We must speed things up.” I say “We must Radically change the Corporate Metabolism until Insane Urgency becomes a Sacrament.”

21. Tom’s Re-imagine Manifesto! They say “Sure, we need ‘Change.’” I say we need “REVOLUTION NOW.” They say (acknowledge) “Okay, we need revolution.” I say “REVOLUTION.” They say “fast follower.” I say “battered and bruised leader.” They say “Conglomerate & Imitate!” I say “Create & Innovate!” They say “Market share.” I say “Market CREATION.” They say “Improve & Maintain.” I say “DESTROY & RE-IMAGINE.”

22. Tom’s Re-imagine Manifesto! They say “We like words such as ‘calm’ … ‘certainty’ … ‘is.’” I say “I like words/phrases such as ‘turbulent’ ‘opportunity’ … ‘might be’.” They vote for Republicans and Democrats. I vote for Independents and Libertarians. They say “Normal.” I say “Weird.” They say “Happy balance.” I say “Creative Tension.” They say they favor a “team” that works & lives in “harmony.” I say “give me a raucous brawl among the most creative people imaginable.” They say “Peace, brother.” I say “Bruise my feelings. Flatten my ego. SAVE MY JOB.”

23. Tom’s Re-imagine Manifesto! They say “Vanilla.” I say “Cherry Garcia.” They say “Basic Black.” I say “TECHNICOLOR RULES!” They say “Branding is for the likes of Nike.” I say “Branding is for Everyone & Anyone with the Passion & Tenacity to foist their Wonderful & Weird Point of View on the world … and the New World’s (read: Web’s) power allows- encourages such “silly” (until recently) visions-of-ubiquity to become reality, perhaps overnight.” They say we need “happy customers.” I say “Give me pushy, needy, nasty, provocative customers who will drag me down Innovation Boulevard.” They say they want to partner with “best of breed.” I say “Give me Coolest of Breed.”

24. Tom’s Re-imagine Manifesto! They say we need “supply chain harmony.” I say we need “supply chain Innovation.” They say “We seek Harvard MBAs.” I say I seek Certificate-free “PhDs” from the School of Hard Knocks. They say they want recruits with a “spotless records.” I say “the Spots are what matter most.” They say “Integrity is important.” I say “Tell the Unvarnished Truth, All the Time … or take a Long Hike.” They read Jim Collins and grok on “quiet, humble leaders.” I say “Give me the Bold, the Brash, the Brassy, the Egocentric Dreamers who, like Steve Jobs, ‘Dent the Universe.’”

25. Tom’s Re-imagine Manifesto! They say they need a “vision” born of McKinsey. I say we need a “Grandiose Dream” born of a Passionate & Intemperate Belief that the world can be a different, better place. They say healthcare, our biggest industry, is “a mess.” I say our hospitals, which kill over 100,000 patients a year, are part of a system that is “a disgrace.” They say “obesity is a problem” … “lose some weight.” I say Re-imagine the entire healthcare system … NOW … to focus on Prevention & Wellness. They say “no child left behind.” I say “education” is leaving ALL our children behind, as it is totally mis-aligned to deal with tomorrow’s (this afternoon’s) uncertain, ambiguous, creativity-driven economy.

26. Tom’s Re-imagine Manifesto! They say “Of course we believe in marketing.” I say “Is the CMO [Chief Marketing Officer] on the Board of Directors?” They say “Of course we believe in marketing.” I say “Has your customer data base won numerous major industry awards?” They say “Of course we believe in marketing.” I say “Is your Web site Sooooo Cool, Sooooo Fresh, Sooooo Friendly to Use that it gives you goose pimples just to e-visit, even though you’ve seen it 1000 times?” They say “Of course we believe in marketing.” I say “How many in-depth customer visits did the CEO make last month?” They say “Yes, the ‘Women’s thing’ is important.” I say “Do women hold at least 1/3rd of your Board seats?” They say “We’re coming around on the design bit.” I say “Is, as at Braun, your Chief Design Officer on the Board of Directors?”

27. Tom’ Re-imagine Manifesto! They say “Of course we think the ‘experiences thing’ is important.” I say “Is there an ‘EVP Experiences’?” They say “Of course innovation is important.” I say “Is your percentage of revenue devoted to R & D at least 1.5 (2.0? 2.5?) times the industry average?” They say “Of course we believe in IS/IT.” I say “Is the CIO on the Board of Directors?” (Only 5% of Fortune500 CIOs are on the Board. One example: Wal*Mart.) They say “Of course we believe in IS/IT.” I say “How many members of your Board are under 35 years old?” They say “We believe in having a ‘flat organization.’” I say “Is your headquarters in a Tower?”

28. They say “Improve.”I say “Re-imagine!”

29. Tom’s Re-imagine Manifesto! They say we need to “bring effectiveness to the supply chain.” I say we need an IS/IT/Best Sourcing revolution based on nothing less than an Entirely Original Vision of what organizations are and how they interact. They say “Globalization is a bumpy road.” I say India and China and Asia in general are within two decades of running the show: Get ready or get trounced. They say “defense” and “consolidation” are musts for a global game. I say encourage Offense, nurture a Generation (or 10) of Entrepreneurs, cherish Creativity & Risk-taking from primary school onwards … and don’t expect to be saved by a bunch of bulky, retro behemoths commanded by a phalanx of Old White Guys who think 30 minutes a day on the corporate treadmill and 27 holes on the links are a fit defense against Revolution.

30. Tom’s Re-imagine Manifesto! They say “Get an MBA.” I say “Get an MFA.” They say “If it can’t be precisely measured then it isn’t real.” (And I suppose if it can be measured it is real? Think Enron? Adelphia? WorldCom?) I say “If it can be precisely measured it isn’t real.” (Think Age of Intangibles & Relationships.) (Think: “He knew the price of everything and the value of nothing.”) They say “Rationality is the Bedrock of Modern Society.” I say “Irrationality [irrational exuberance?] is the Mother of all True Entrepreneurial Pilgrimages.” They say “Order is the necessary precursor to measured, sustainable success.” I say “Dis-order is the precursor to Opportunistic Sorties, Market Creation, Quantum Leaps, and Entrepreneurial Adventure.

31. Tom’s Re-imagine Manifesto! They say “To get anywhere, you have to know exactly where the hell you’re headed.” I say “If you know precisely where you’re headed and exactly how you’re gonna get there, then you clearly suffer from Advanced Shrivelus Imaginationus.” (This disease is fatal.) They say “Employees need Well-defined Structure.” I say “Talent should be encouraged to embark on Quests to the Unknown.” They say “I’m here to maximize shareholder value.” I say “I’m here to inflame each & every member of my Awesome Staff to embark with Vigor & Determination & Passion & Enthusiasm on a Quest of Monumental Consequence.” (And if I come even close to succeeding, it will, in fact, dramatically up the odds of Thriving Amidst Today’s Chaos—and creating untold shareholder value in the process.)

32. Tom’s Re-imagine Manifesto! They say “men.” I say “WOMEN.” They say Diversity is a “good thing.” I say Diversity is a Fresh Breath of Creative Air … Absolutely Necessary for Economic Salvation in perilous times. They say “Wait your turn, honor those who have marched these corridors before you.” I say Get Off Your Butt & Go for the Gold … TODAY … or sign the transfer papers willing your job in perpetuity to a Chinese or Indian who Gives a Shit and Gets Up (VERY) Early and works Saturdays & Sundays. They say “offshoring” is a “blight.” I say the Earth proved not to be the center of the Solar System … and the USA is not the epicenter-in-perpetuity of the Earth … and that we had best learn … NOW … to prosper and take pleasure in a dynamic, exciting, creative, multi-polar economic environment. (Damn it.)

33. Tom’s Re-imagine Manifesto! They say “It’s a fright.” I say “It’s a Helluva Ride.” They say it’s “daunting.” I say it’s “a bronco-bustin’ day at the rodeo.” They say “Life is a marathon; husband your strength.” I say “Life is a sprint. Begin planning your World-beating Me Inc. start-up … TODAY.” They say lifetime employment was a boon. I say lifetime employment was Indentured Servitude, modern- day Slavery. They say “safety net.” I say “I am my safety net; give me the ‘Ownership Society.’” (And I’m a lifelong Democrat.) They say “zero defects.” I say “A day without a screwup or two is a day pissed away.”

34. Tom’s Re-imagine Manifesto! They say “Think about it.” I say “Try it.” They say “Plan it.” I say “Test it.” They say “continuous improvement.” I say “Bold Leaps.” They say “Keep on Improvin’.” I say “Keep on Leapin’.” They say “Built to last.” I say “Built to Soar. We’re all dead in the long run … live your Insane Fantasy. Devil take the hindmost.” They (Jim Collins) say “Walgreens is Cool.” I say “I love Larry Ellison.” (Oracle rules … at least for the next ten minutes.)

35. Tom’s Re-imagine Manifesto! They say “Play the odds.” I say “Reward excellent failures. Punish mediocre successes.” (Thanks, Phil Daniels.) They say “Eighty-hour weeks will kill you.” I say “Work 35-hour weeks, and the Chinese will kill you.” They say “Install cost controls with teeth.” I say “Ha. Ha. Ha. Blow Up the existing enterprise and start with a Clean Sheet of Paper.” They say “Install cost controls with teeth.” I say “Grow the Top Line.” They say “Radical change takes a decade.” I say “Radical change takes a Minute.” (See AA.) They say “Times are changing.” I say “Everything has already changed. Tomorrow is the First Day of Your Revolution … or you’re Toast.”

36. Tom’s Re-imagine Manifesto! They say “We can’t all be Anita Roddick or Maxine Clark or Stan Shih or Les Wexner or Jerry Yang.” I say “Why not?” They say “We can’t all be Revolutionaries.” I say “Why not?” They say “We can’t all be a Brand.” I say “Why not?” They say “Beware the Hype.” I say “Been to China lately? Visited Infosys in Bangalore lately?” They say this is just a Rant. I say this is just Reality. They say “The man is not nice.” I say “The times are not forgiving.”

37. !

38. Short Takes!

39. EXECUTIVE SUMMARYTom Peters’Re-imagine!Business Excellence in a Disruptive Age14October2003

40. “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

41. 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.

42. 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. (Success = S.A.V. = Screw Around Vigorously.) (Fail. Forward. Fast.)

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

44. 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.

45. 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!

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

47. 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.

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

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

50. Re-imagine!10. Women buy (ALL) the stuff. Re-imagine the brand itself—and all business practices—around women-as- purchasers.