Wal*Mart Tom Peters/Saturday/ 2August2003/Bentonville

1. Wal*MartTom Peters/Saturday/2August2003/Bentonville

2. 12 in 20**A dozen ideas in twenty minutes

3. 1. Beating the odds is no walk in the park!

4. 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

5. 2. Practice the Art of Strategic Forgetfulness.

6. Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock

7. The [New] Ge WayDYB.com**Destroy Your Business dot com

8. 3. There will be a “next Wal*Mart.”

9. “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.”Mark Twain

10. 4. I know who the CEO after next will be!

11. Audie Murphy was the most decorated soldier in WWII. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won …

12. … the Good Conduct medal.

13. Herman Melville on JPJ: “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.”—from Evan Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy

14. Huh?“Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC

15. Pastels?T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U. S. Grant/W. T. ShermanTR/FDR/LBJ/RR/JFKM.L. KingC. de GaulleM. GandhiW. ChurchillM. ThatcherPicassoMozartCopernicus/Newton/EinsteinJ. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealyA. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison

16. “Dream as if you’ll live forever. Live as if you’ll die today.”—James Dean

17. The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo

18. 5. Push diversity!

19. The Cracked Ones Let in the Light“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”David Ogilvy

20. “Are thereenoughweirdpeoplein the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

21. Deviants, Inc. “Deviance tells the story of every mass market ever created.What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

22. Saviors-in-WaitingDisgruntled CustomersOff-the-Scope CompetitorsRogue EmployeesFringe SuppliersWayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

23. 6. Talent!

24. Message: Some people are better than other people.Some people are a helluva lot better than other people.

25. “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacificchanged 20 of his 40 box plant managers to put more talented, higher paid managers in charge.He increased profitability from $25 million to $80 million in 2 years.”Ed Michaels, War for Talent

26. Talent’s Rules1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people3. Think “Roster”4. Think “V.C.”5. Talent = Brand6. Talent is what leaders do.

27. MantraM3Talent = Brand

28. 6A. It’s the stores, stupid!

29. The stores make money.Bentonville spends money.

30. 6B. Women Rule!

31. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, Business Week, 11.20.00

32. 7. Collect data. Trust your gut.

33. Great “Merchants” * I have known:Sam (Walton)Les (Wexner)Mickey (Drexler)*The fingertips of a safecracker.

34. “No great marketing decision was ever made based on the data” —John Sculley

35. “HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is Marketing Not Working?”

36. 8. Honor the “Big Three” trends.

37. Women!

38. ?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (“home projects”) … 80%Consumer Electronics … 51% Cars … 60% (90%)Allconsumerpurchases … 83%Bank Account … 89%Health Care … 80%

39. “War has broken out over your home-improvement dollar, and Lowe’s has superpower Home Depot on the defensive. It’s not-so-secret ploy: Lure women.”—Forbes.com

40. Read This Book …EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold

41. FemaleThink/ Popcorn“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

42. “Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. For a man, ignoring the price tag is almost a sign of virility.”Paco Underhill, Why We Buy*(*Buy this book!)

43. “Women don’t buy brands. They join them.”EVEolution

44. Notes to the CEO--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!Source: Martha Barletta, Marketing to Women

45. 1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

46. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”)Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

47. Geezers!

48. “Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher,American Demographics

49. “ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

50. 2000-2010 Stats18-44: -1%55+: +21%(55-64: +47%)