Re-Imagine! Business Excellence in a Disruptive Age

1. Tom Peters’ Re-Imagine!Business Excellence in a Disruptive AgeDeloitte & Touche/ New York/ 05.07.2003

2. Slides at …tompeters.com

3. Part I: Re-Imagine!Part II: Women Roar!Part III: Leading in Totally Screwed Up Times!

4. Part I: Re-Imagine!

5. 1. We Are in a Brawl with No Rules.

6. “Uncertainty is the only thing to be sure of.”—Anthony Muh, head of investment in Asia, Citigroup Asset management (FT/03.27.2003)

7. “If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army

8. 2. The Destruction Imperative.

9. “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)

10. 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

11. “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

12. 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

13. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

14. Just Say No …“I don’t intend to be known as the ‘King of the Tinkerers.’ ”CEO, large financial services company (New York, 5-99)

15. 3. The White Collar Revolution & the Death of Bureaucracy.

16. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

17. E.g. …Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years.Source: BW (01.28.02)

18. IBM’s Project eLiza!** “Self-bootstrapping”/ “Artilects”

19. 4. IS/ IT/ Web … “On the Bus” or “Off the Bus.”

20. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.”—Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.

21. WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

22. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.”Ray Lane, Kleiner Perkins

23. “Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

24. 5. The “PSF Solution”:The Professional Service Firm Model.

25. Sarah: “ Mommy, what do you do?”Mommy: “I run a cost center, honey. ”

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

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

28. TP to HRMAC:Youare the …Rock Stars of the Age of Talent!

29. DD$21M

30. 6. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”

31. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business

32. The Big Day!

33. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

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

35. Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

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

37. “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

38. Keep In Mind: Customer Satisfactionversus Customer Success

39. “No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

40. Omnicom: 57% (of $6B) from marketing services

41. 7. A World of Scintillating/ Awesome/ WOW “Experiences.”

42. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

43. “The [Starbucks] Fix” Is on …“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.”Nancy Orsolini, District Manager

44. 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

45. WHAT CAN BROWN DO FOR YOU?

46. It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”Trapper: <$20 per beaver pelt.WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ/05.21.2002

47. “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.”Jesper Kunde, Unique now … or never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

48. Extraction & Goods: Male dominanceServices & Experiences: Female dominance

49. 8. Boss Job One: The Talent Obsession.

50. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH