Transcript Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Constellation Energy/Baltimore/0207.2006/LONG Slides at … tompeters.com.

Tom Peters’
Re-Imagine!
Business Excellence in
a Disruptive Age
Constellation Energy/Baltimore/0207.2006/LONG
Slides at …
tompeters.com
1. Change. Period.
Then. Now.
“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,
the one most
responsive to
change.”
but
—Charles Darwin
2. Low Odds. The
Emperor Has No
Clothes.
“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
Buy a
very large one
and just wait.”
answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
3. Lessons
Learned: GE &
Me.
De-central-iza-tion!!
Ex-ecu-tion!!
Ac-counta-bil-ity!!
6:15A.M.
4. Only One
Strategy.
Innovate
or
“A focus on cost-cutting and efficiency has helped many
organizations weather the downturn, but this approach will
Only the
constant pursuit of
innovation can
ensure long-term
success.”
ultimately render them obsolete.
—Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia
“Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting, efficiency
and deal-making. 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
But in
his GE, the new imperatives are
risk-taking, sophisticated
marketing and, above all,
innovation.” —BW/032805
hasn’t turned his back on the old ways.
5. Different.
Franchise Lost!
TP:
“How many of you
crave
Chevy?”
NYC/IIR/061205
[600]
really
a new
$415/SqFt/Wal*Mart
$798/SqFt/Whole Foods
“This is an essay about what it takes to create and sell something remarkable. It is a
plea for originality, passion, guts and daring. You can’t be remarkable by following
someone else who’s remarkable. One way to figure out a theory is to look at what’s
working in the real world and determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly have in common? Or NeimanMarcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and
Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive
The thing that all
these companies have in
common is that they have
nothing in common. They are outliers. They’re on
looking in the rearview mirror.
the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or
extremely small. The reason it’s so hard to follow the leader is this: The leader is the
leader precisely because he did something remarkable. And that remarkable thing is
now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin,
Fast Company/02.2003
6. Bold.
“Beware of the
tyranny of making
Small Changes to Small
Things. Rather, make
Big
Changes to
Things.”
Big
—Roger Enrico, former Chairman, PepsiCo
7. More.
Up,
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*
(*Integrated Systems Services Corporation)
:
$55B
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/07.19.2004
“Instant Infrastructure:
GE Becomes a General
Store for Developing
Countries” —headline/
NYT/07.16.05
The Value-added Ladder/Stuff ‘n’ Things
Goods
Raw Materials
The Value-added Ladder/Stuff & Transactions
Services
Goods
Raw Materials
The Value-added Ladder/Transformation
Gamechanging
Solutions
Services
Goods
Raw Materials
8. And More.
Dream it
!
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
“The Ritz-Carlton
experience enlivens the
senses, instills wellbeing, and fulfills even
the unexpressed wishes
and needs of our
guests.”
— from the Ritz-Carlton Credo
The Value-added Ladder/Dream-makers
Dreams Come True
Gamechanging Solutions
Services
Goods
Raw Materials
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness, Friendship
and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
Six Market Profiles
1. Adventures for Sale/IBM-UPS-GE
2. The Market for Togetherness, Friendship
and Love/IBM-UPS-GE
3. The Market for Care/IBM-UPS-GE
4. The Who-Am-I Market/IBM-UPS-GE
5. The Market for Peace of Mind/IBM-UPS-GE
6. The Market for Convictions/IBM-UPS-GE
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
IBM, UPS, GE …
Dream
Merchants!
9. Leadership
Rules.
Make a
Difference
!
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“Management has a lot to do with
answers. Leadership is a function of
questions. And the first question for
‘Who
do we intend to
be?’ Not ‘What are we going to
a leader always is:
do?’ but ‘Who do we intend to be?’”
—Max De Pree, Herman Miller
Go for the
Gold
!
“You do not merely want to be
You
want to be
considered the only
ones who do what
you do.”
the best of the best.
Jerry Garcia
Find the
Best!
Brand
=
Talent.
“Leaders
‘do’
people.”
—Anon.
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
changed 20 of his 40
box plant managers to put
more talented, higher paid
managers in charge. He increased
Pacific
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent
Did We Say “Talent Matters”?
“The top software developers are more
productive than average software
developers not by a factor of 10X or 100X,
or even 1,000X,
but
10,000X.”
—Nathan Myhrvold, former Chief Scientist, Microsoft
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.”
“free to do his or her
absolute best” …
“allow its members
to discover their
greatness.”
Do It!
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram Charan/
Execution: The Discipline of Getting Things Done
A man approached JP Morgan, held up an envelope, and said,
“Sir, in my hand I hold a guaranteed formula for success, which I
will gladly sell you for $25,000.”
“Sir,” JP Morgan replied, “I do not know what is in the envelope,
however if you show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.”
The man agreed to the terms, and handed over the envelope.
JP Morgan opened it, and extracted a single sheet of paper.
He gave it one look, a mere glance, then handed the piece of
paper back to the gent.
And paid him the
agreed-upon $25,000 …
1. Every morning, write a
list of the things that
need to be done that day.
2. Do them.
Source: Hugh MacLeod/tompeters.com/NPR
“We have a
‘strategic’
plan. It’s
called doing
things.”
— Herb Kelleher
“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
Screw It
Up!
Sam’s
Secret
#1!
Keep On
Keepin’ On!
“This [adolescent] incident [of getting from point A to point B]
is notable not only because it underlines Grant’s fearless
horsemanship and his determination, but also it is the first
known example of a very important peculiarity of his character:
Grant had an extreme,
almost phobic dislike of
turning back and retracing
his steps. If he set out for somewhere, he would
get there somehow, whatever the difficulties that lay in his
way. This idiosyncrasy would turn out to be one the factors
that made him such a formidable general. Grant would
always, always press on—turning back was not an option
for him.” —Michael Korda, Ulysses Grant
Relentless!*
*Churchill, Grant, Patton, Welch, Bossidy, Nardelli (GE execs),
UPS, FedEx, Microsoft/Gates-Ballmer, Eisner, Weill, eBay,
Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong
Focus!
“Dennis, you
need a ‘Todon’t ’ List !”
“I used to have a rule for myself that at any
point in time I wanted to have in mind — as
it so happens, also in writing, on a little card
I carried around with me — the three big
things I was trying to get done.
Three.
Not two.
Not four. Not five. Not ten. Three.”
— Richard Haass, The Power to Persuade
Keep It
Simple!
Napoleon’s Laws: Exactitude. Speed. Flexibility. Simplicity.
Character. Moral Force.
Simplicity: “The
art of war does not require
complicated maneuvers; the simplest
are the best, and common sense is
fundamental. From which one might
wonder how it is generals make
blunders; it is principally because they
try to be clever.”
Source: Jerry Manas, Napoleon
Tempo!
Tempo!*
70-10
*Boyd/O.O.D.A. Loops
“If things seem under
control, you’re just
not going fast
enough.”
—Mario Andretti
Offense!
“[Other]
admirals more
frightened of
losing than
anxious to win”
Nelson’s secret:
Integrity!
“Realism is
the heart of
execution.”
—Larry Bossidy & Ram Charan/Execution:
The Discipline of Getting Things Done
Character!
Napoleon’s Laws: Exactitude. Speed. Flexibility. Simplicity.
Character. Moral Force.
Character: “A
military leader must
possess as much character as
intellect. Men who have a great
deal of intelligence and little
character are the least suited. …
It is preferable to have much
character and little intellect.”
Source: Jerry Manas, Napoleon
“It was much later that I realized
Dad’s secret. He gained respect by
giving it. He talked and listened to
the fourth-grade kids in Spring Valley
who shined shoes the same way he
talked and listened to a bishop or a
college president. He
was
seriously interested in who
you were and what you
had to say.” —Sara Lawrence-Lightfoot, Respect
Eat Change!
“The most
successful people
are those who
are good at
plan B.”
—James Yorke,
mathematician, on chaos theory, in The New Scientist
Listen to:
Richard, Kevin
(and Napoleon)
Sir Richard’s Rules
Follow your passions.
Keep it simple.
Get the best people to help you.
Re-create yourself.
Play.
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2.
3.
4.
5.
6.
7.
8.
9.
If it ain’t broke ... Break it!
Hire crazies.
Ask dumb questions.
Pursue failure.
Lead, follow ... or get out of the way!
Spread confusion.
Ditch your office.
Read odd stuff.
10. Avoid moderation!
Napoleon’ Laws
Exactitude.
Speed.
Flexibility.
Simplicity.
Character.
Moral Force.
Source: Jerry Manus, Napoleon
Dispense
Enthusiasm!
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
Dream!
“the wildest
chimera of a
moonstruck
mind”
—The Federalist on TJ’s
Louisiana Purchase
“Tell me, what is
it you plan to do
with your one
wild and
precious life?”
—Mary Oliver
Avoid …
Moderation!
“You can’t behave
in a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
Stay Hungry.
Stay Foolish.
Steve Jobs