Navigating Chaos: The Rules of the Brawl

1. Tom Peters Seminar2001We Are in a Brawl with No RulesJohannesburg/23.08.2001

2. More at …tompeters.comSlides from this seminar;Master Presentation, for in-depth; annotated Special Presentations [Women Rule!, Design!, etc.].“Cool Friends” (referenced in seminar).Discussions re this stuff.Calendar of events.Lavender text in this file is a link.

3. Dell’s OptiPlex FacilityBig Job: 6 to 8 hours.(20,000 per day)Parts Inventory: 2 hours, 100 square feet.(Overall, 5 days vs. 50 to 90 days; target is 2.5 days)

4. <1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000X tech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”)Ray Kurzweil, talk april2001

5. “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01

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

7. The Kotler Doctrine:1965-1980: R.A.F.(Ready.Aim.Fire.)1980-1995: R.F.A.(Ready.Fire!Aim.)1995-????: F.F.F.(Fire!Fire!Fire!)

8. “It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)

9. Message #1: All hell is breaking loose. The current downturn is irrelevant.

10. StructurePart I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

11. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

12. Forces @ Work IThe Destruction Imperative!

13. “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

14. “A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death.”Jim Utterback, Mastering the Dynamics of Innovation

15. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 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

16. 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)

17. “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 (08.00)

18. Message #2:“Good management” is a millstone in chaotic times. Mind the “gales of creative destruction.”

19. Brand InsideBrand Org:Lean, Linked, Internet-driven, Virtual

20. White Collar Revolution!

21. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

22. The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

23. “A bureaucrat is an expensive microchip.”Dan Sullivan, consultant and executive coach

24. Automation+75% of what we do: 40 “expert” decision rules!

25. IBM’s Project eLiza!

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

27. Message #3:Johannesburg or San Jose CA, the forces unleashed are the same.Enormous. Fast.

28. Brand InsideBrand Work: The Professional Service Firm Model

29. So what will be the Basic Building Block of theNew Org?

30. Every job done in W.C.W. is also done “outside” …for profit!

31. Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.

32. Credo: W.W.P.F.“WORKWORTH PAYINGFOR”

33. “P.S.F.”: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++) When: Now!

34. Message #4: W.W.P.F. or [professional] death.

35. Brand InsideThe Heart of the Value Creation Revolution: PSF Unbound!

36. 11 September 2000

37. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting business!

38. [“These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard]

39. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

40. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

41. “Customer Satisfaction” to “Customer Success”“We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems

42. GE’s New Six Sigma ApproachOld view: Out of service 9 days. 4 days are transport, which is client responsibility.New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days = Client’s World.Source: Steve Kerr, VP, GE

43. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. Sites to 6,000 NA dealers)

44. SpringsCollections.Flexible sourcing.Packaging.Merchandising.Promotion.Design.Systems & Site mgt. = Turnkey.

45. “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.”SMPS Exec

46. “We are a ‘real estate facilities consulting’ organization, not just an ‘interior design’ firm.”Jean Bellas, founder, SPACE (from SMPS Marketer)

47. eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

48. 100% goes on the Web.Non-awesome is outsourced.Centers of Excellence are leveraged to the hilt!

49. Maybe one [or more] of your “PSFs” becomes the tail that wags the dog called Market Cap?????[E.g.: engineering-IS-logistics-customer service]

50. “The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.”Thomas Koulopoulos, Delphi Group