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Tom Peters’ Re-Imagine2006 ! Business Excellence in a Disru p tive A g e MLIM National GPC Sales Meeting Key Biscayne/0405.2006/LONG. Slides* at … tompeters.com *Also, “Long”. For Ray. Unglued. THREE BILLION NEW CAPITALISTS —Clyde Prestowitz. New Economy? Sergey, Larry > Harvard.
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Tom Peters’ Re-Imagine2006!Business Excellence in a Disruptive AgeMLIM National GPC Sales MeetingKey Biscayne/0405.2006/LONG
“There is no job that is America’s God-given right anymore.”—Carly Fiorina/HP/January2004
“Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327; 500 of 900 Research; JPMorgan Chase—30% back-office by 12.31.07
“This is a dangerous world and it is going to become more dangerous.”“We may not be interested in chaos but chaos is interested in us.”Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
Unparalled in “Our” Professional Lifetime*TerrorismMiddle East instabilityH5N1China screwupsGlobalization backlashEnergy dependenceEnvironmental threatsLife sciences“Cold War” with ChinaFraying American fabricU.S. impotence in the face of Asia’s rise*Current leaders were not Cold War leaders
“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
“In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.”—Fast Company /October2003
ExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields $85,000EI: $10,000 yields $140,050*Excellence Index/basket of 32 publicly traded stocks
“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
“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
“I don’t believe in economies of scale.You don’t get better by being bigger. You get worse.”—Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)
“TOO BIG TO GROW: Why Wall Street has soured on many of corporate America’s most admired and feared companies”—headline, Newsweek, 0313.06
Spinoffsperform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble”—Jerry Knight/Washington Post/08.05
“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/09.17.04)
Different!**“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205
7X. 730A-800P. F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
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
“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
“Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil
Great Companies … SETTHEAGENDA.*(Period.)* “disturb the sleep of …
AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ AdventurersUS Steel … Ford … Toyota … Sears … GM … ITT …The Gap …Limited …Wal*Mart…Tesco…P&G … 3M …Intel… IBM …Apple…Nokia…Cisco… Dell… MCI … Sun …Microsoft…Google… Enron …Schwab…GE… Laker … Southwest … People Express …Ogilvy…Virgin…eBay…Amazon… Sony…Amgen…BMW… CNN … Nike
“We will not, I repeat not, pretend to be ‘all things to all people.’”—CEO, Investec (03.06)
The Benefits of … “FOCUSED EXCELLENCE”Shouldice/Hernia Repair:30 min, 1% recurrence. Avg: 90 min, 10%-15% recurrence.Source: Complications, Atul Gawande
“Beware of the tyranny of making SmallChanges to SmallThings. Rather, make Big Changes to BigThings.”—Roger Enrico, former Chairman, PepsiCo
Line Extensions:86percent of new products. 62percent of revenues. 39 percent of profit.Source: Blue Ocean Strategy, Chan Kim and Renee Mauborgne