Transcript Tom Peters’ Re-Imagine! Leading Change, Developing Talent, Driving Innovation, Adding Value, Achieving Excellence AERCE/Madrid/21March2006 Slides* at … tompeters.com *Also, “Long”

Tom Peters’
Re-Imagine!
Leading Change,
Developing Talent,
Driving Innovation,
Adding Value,
Achieving Excellence
AERCE/Madrid/21March2006
Slides* at …
tompeters.com
*Also, “Long”
Re-imagine!
Not Your
Father’s
World I.
THREE
BILLION NEW
CAPITALISTS
—Clyde Prestowitz
Re-imagine!
Not Your
Father’s
World II.
“Income
Confers No
Immunity as
Jobs Migrate”
—Headline/USA Today/02.2004
“There is no job that
is America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004
Sydney Morning Herald/
25October2005
Qantas.
Lay off thousands of mechanics.
Maintenance to China.
“There is no job
that is Australia’s
God-given right
anymore.”
—Tom Peters/10.26.2005
Re-imagine!
Not Your
Father’s
World III.
“A focus on cost-cutting and efficiency
has helped many organizations survive,
but this approach will ultimately render
Only the
constant pursuit of
innovation can ensure
long-term success.”
them obsolete.
—Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia
The General’s
Story.
“If you don’t like
change, you’re
going to like
irrelevance even
less.”
—General Eric Shinseki, Chief of Staff. U. S. Army
Everybody’s
Story.
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/2003
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/2003
“Thaksinomics” (after Thaksin Shinawatra, PM)/
“Bangkok Fashion City”:
“managed
asset reflation”
(add to brand value of Thai textiles by demonstrating
flair
and design excellence)
Source: The Straits Times/2004
Better By Design: A National Strategy
NZ = Design
Excellence
New Zealand
Thailand
Spain
Portugal
Ireland
Singapore
Taiwan
Philippines
UAE
Chile
“ ‘MADE IN
TAIWAN’: From
Cheap
Manufacturing to
Chic Branding”
—Headline/Advertising Age/06.05
Taiwan, Your
Partner in
InnoValue
Poster/Bucharest/03.06
1. Re-imagine
Permanence: The
Emperor Has No
Clothes!
“I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, ‘How do I build a small firm for
Buy
a very large one
and just wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
2. Re-imagine:
Innovate
or
Die!!
No Option!
“Under his former boss, Jack Welch, the skills GE prized
above all others were cost-cutting, efficiency and dealmaking. What mattered was the continual improvement
of operations, and that mindset helped the $152 billion
industrial and finance behemoth become a marvel of
earnings consistency. Immelt hasn’t turned his back on
But in his GE, the
new imperatives are risktaking, sophisticated
marketing and, above all,
innovation.”
the old ways.
—BW/2005
“When asked to name just one big merger
that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
I’m sure
there are success
stories out there, but at
this moment I draw a
blank.”
Committee, answered:
—Mark Sirower, The Synergy Trap
Different!*
*“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
“Companies have
defined so much ‘best
practice’ that they are
now more or less
identical.”
—Jesper Kunde, Unique Now ... or Never
“[Immelt] is now identifying
technologies with which GE
systematically
set out to build
entirely new
industries”
will …
—Strategy+Business, Fall 2005
Focus!
Big Winners
“Mature” industry … Specialty (No
competition) … Smaller than competitors
Sweet spot …
Agility … Discipline
… FOCUS
4 Traits:
Source: Alfred Marcus, Big Winners and Big Losers:
The 4 Secrets of Long-term Business and Failure
“We will not, I
repeat not, pretend
to be ‘all things to
all people.’ ”
—CEO, Investec (03.06)
BOLD
“Beware of the tyranny
of making Small Changes
to Small Things. Rather,
make Big Changes to
Big Things.”
—Roger Enrico, former Chairman, PepsiCo
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Action
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram Charan/
Execution: The Discipline of Getting Things Done
“Execution is a
systematic
process
of rigorously
discussing hows and whats, tenaciously
following through, and ensuring
accountability.”
—Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
Measurable!
Innovation Index: How
many of your Top 5
Strategic Initiatives/Key
Projects score 8 (out of 10)
or higher on a “Rulebreaking”/“Wow”/
“Game-changing” Scale?
Personal!
Buy
a Mirror!
Step #1:
“The First step in a
‘dramatic’ ‘organizational
change program’ is
obvious—dramatic personal
change!” —RG
3. Re-imagine Business’s
Fundamental Value
Proposition: Fighting
“Inevitable Commoditization”
via “The ‘Gamechanging
Solutions’ Imperative.”
Up,
Up,
Up,
Up
the Value-added Ladder.
And the “M” Stands for … ?
“Systems
Integrator of choice.”/BW
Gerstner’s IBM:
(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )
IBM Global Services*
Services Corp.):
$55B
(*Integrated Systems
Huge: Customer
Satisfaction
Customer
versus
Success
The Value-added Ladder/Stuff ‘n’ Things
Goods
Raw Materials
The Value-added Ladder/Stuff & Transactions
Services
Goods
Raw Materials
The Value-added Ladder/Opportunity-seeking
Gamechanging
Solutions
Services
Goods
Raw Materials
4. Re-imagine
Enterprise as
Theater I: A World
of Spellbinding
“Experiences.”
“Experiences are
as distinct from
services as services
are from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“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
The Value-added Ladder/Memorable Connection
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
5. Re-imagine
Enterprise as
Theater II: Embracing
the “Dream Business.”
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients
become what they want to be.”
—Gian Luigi Longinotti-Buitoni
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
The Value-added Ladder/Emotion
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Club, IBM …
Dream
Merchants!
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder:
“Managed Asset Reflation”
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
6. Re-imagine the
Customer I: Trends
Worth Trillion$$$ …
Women
Roar.
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
The Perfect Answer
Jill and Jack buy
slacks in black…
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
10. Women’s
Market =
Opportunity
No. 1.
7. Re-imagine the
Customer II: Trends
Worth Trillion$$$ …
Boomer Bonanza/
Godzilla Geezer.
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
44-65: “New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.”
—David Wolfe & Robert Snyder,
Ageless Marketing
8. Re-imagine the
Individual: Welcome to
a
Brand You
World …
Distinct or Extinct
“If there is nothing very
special about your
work, no matter how hard you
apply yourself you won’t get
noticed, and that increasingly
means you won’t get paid much
either.” —Michael Goldhaber, Wired
Distinct … or
… Extinct
9. Re-imagine
Excellence I: The
Talent
Obsession.
“Human creativity is
the ultimate
economic
resource.”
—Richard Florida,
The Rise of the Creative Class
“The Creative Age
is a wide-open
game.”
—Richard Florida
“The leaders of Great
Groups love talent and
know where to find it.
They revel in the talent of
others.”
—Warren Bennis & Patricia Ward Biederman,
Organizing Genius
A review of Jack and Suzy Welch’s Winning claims there are but
two key differentiators that set GE “culture” apart from the herd:
First: Separating financial forecasting and performance
measurement. Performance measurement based, as it usually is, on
budgeting leads to an epidemic of gaming the system. GE’s performance
measurement is divorced from budgeting—and instead reflects how you do
relative to your past performance and relative to competitors’ performance; ie it’s
about how you actually do in the context of what happened in the real world, not
as compared to a gamed-abstract plan developed last year.
Second: Putting HR
on a par with finance
and marketing.
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
Brand =
Talent.
10. Re-imagine
Excellence II: Meet
the New Boss …
Women Rule!
“AS LEADERS,
WOMEN RULE: New
Studies find that female
managers outshine their
male counterparts in
almost every measure”
Title, Special Report/BusinessWeek
“For all the myths of
equality that Europe
tells itself, the Continent
is by and large a woeful
place for a woman who
aspires to lead.”
—Newsweek/0227.06
“To be a leader in
consumer products,
it’s critical to have
leaders who represent
the population we
serve.”
—Steve Reinemund/CEO/PepsiCo
11. Re-imagine
Excellence III: New
Education for a
Creative Age.
“My wife and I went to a [kindergarten] parent-teacher conference
and were informed that our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in art. We were
shocked. How could any child—let alone our child—receive a poor
His teacher
informed us that he had
refused to color within the
lines, which was a state
requirement for demonstrating
‘grade-level motor skills.’ ”
grade in art at such a young age?
—Jordan Ayan, AHA!
15 “Leading” Biz Schools
Design/Core: 0
Design/Elective: 1
Creativity/Core: 0
Creativity/Elective: 4
Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002
Research by Thomas Lockwood
12. Re-imagine
Leadership for Totally
Screwed-Up Times: The
Passion
Imperative.
Create a
Cause!
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for , trust.”
—Howard Schultz, Starbucks (IBD/09.05)
Find ’em!
“Leaders
‘do’ people.
Period.”
—Anon.
Make It a
Grand
Adventure!
Organizing Genius / Warren Bennis
and Patricia Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or
her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its
members to discover their
greatness.”
“The role of the Director
is to create a space
where the actor or
actress can become
more than they’ve ever
been before, more than
they’ve dreamed of
being.” —Robert Altman, Oscar acceptance
Live Your
Story!
“I’m always stopping by our
at least 25
a week. I’m also in other
stores—
places: Home Depot, Whole Foods,
Crate & Barrel. … I try to be
a sponge to pick up as much
as I can. …” —Howard Schultz
Source: Fortune, “Secrets of Greatness,” 0320.2006
Demand
Action!
“This is so simple it sounds stupid, but it is amazing
you
only find oil if you
drill wells.
how few oil people really understand that
You may think you’re
finding it when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
Try It!
Sam’s Secret
#1!
Cherish
Realism!
“GE has set a standard
of candor. … There is no
puffery. … There isn’t an
ounce of denial in the
place.” —Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
Dispense
Enthusiasm!
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“A man without a
smiling face must not
open a shop.”
—Chinese Proverb*
*Courtesy Tom Morris, The Art of Achievement
Avoid …
Moderation!
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Free the
Lunatic
Within!
“You can’t behave in a
calm, rational manner.
You’ve got to be out
there on the lunatic
fringe.”
— Jack Welch