Tom Peters Seminar 2004 NEW SLIDES 10 21

Tom Peters Seminar 2004 NEW SLIDES

10. 21. 04

"I long to accomplish a great and noble task, but it is my chief duty to accomplish humble tasks as though they were great and noble. The world is moved along not only by the mighty shoves of its heroes but also by the aggregate of the tiny pushes of each honest worker. ” —Helen Keller

My Story.

Sarah: “ Papa, what do you do? ” Papa: “I’m ‘overhead. ’ ”

Sarah: Papa: “ Daddy, what do you do? ” “I’m a ‘bureaucrat. ’ ”

Sarah: Papa: “ Daddy, what do you do? ” “I manage a ‘cost center. ’ ”

“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue We pay for ourselves, and we actually make money for the company. ” — center. We’ve become more than that. Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas. com)

Rainmaker-in-Chief “[Sam] Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries— toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year—that technology companies have never been able to touch. ” —Fortune/06. 14. 04

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

’ 70 s: Cost (BCG’s “cost curves”) ’ 80 s: TQM-CI (Japan) ’ 90 s: Service ’ 00 s: Solutions/Experiences ’ 10 s: Dream Fulfillment

Market Power = Story Power = Dream Power

FLASH: Innovation is easy !

Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period. ) (2) Freaks are fun. (Freaks are also a pain. ) (Freaks are never boring. ) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon. ) (4) A critical mass of freaks-in-our-midst automatically make uswho-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above. ) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them. ) (We seldom listen to them. ) (Which is why most of us—and our organizations—are in ruts. Make that chasms. )

Six Market Profiles 1. Adventures for Sale/IBM 2. The Market for Togetherness, Friendship and Love/IBM 3. The Market for Care/IBM 4. The Who-Am-I Market/IBM 5. The Market for Peace of Mind/IBM 6. The Market for Convictions/IBM Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

A Coherent Story: Context-Solution-Bedrock Context 1: Intense Pressures (China/Tech/Competition) Context 2: Painful/Pitiful Adjustment (Slow, Incremental, Mergers) Solution 1: New Organization (Technology, Web+ Revolution, Virtual-“Best. Sourcing, ”“PSF” “nugget”) Solution 2: No Option: Value-added Strategy (Services. Solutions-Experiences-Dream. Fulfillment “Ladder”) Solution 3: “Aesthetic” “VA” Capstone Solution 4: New Markets (Women, Third. Age) (Design-Brands) Bedrock 1: Innovation (New Work, Speed, Weird, Revolution) Bedrock 2: Talent (Best, Creative, Entrepreneurial, Schools) Bedrock 3: Leadership (Passion, Bravado, Energy, Speed)

10. 18 A. 04

“Americans are not embarrassed by ambition. There is no particular enthusiasm here about making it look like you are not trying. ” —Larry Summers (explaining why Americans, among other things, win 75% of Nobels)

10. 18. 04

“Europe’s Top 100 Growth Companies”/ Business. Week/25 October 2004 Britain …………. . 31 Germany ………. 24 Italy ……………. . 9 France …………. 6 Netherlands …. . . 5 Sweden ………. . . 1* Denmark ………. 0 *New Wave Group (#59)

10. 17. 04

“We all agree your theory is crazy. The question, which divides us, is whether it is crazy enough. ” —Physicist Niels Bohr, to Wolfgang Pauli

New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM 1 (Master of Metaphysical Management) MMM 2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/o. C (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)

Formulaic intelligence (health record clerks, 63%/36 K; secretaries & typists, 30%/1. 3 M; bookkeepers, 13%/247 K) Manual dexterity (sewing machine ops, 50%/347 K; lathe ops, 49%/30 K; butchers, 23%/67 K) Muscle power (timber cutters, 32%/25 K; farm workers, 20%/182 K) Source: “Where the Jobs Are”/NYT/05. 13. 2004/data 1994 -2004

+ People skills & emotional intelligence (financial service sales, 78%/248 K; RNs, 28%/512 K; lawyers, 24%/182 K) Imagination & creativity (architects, 44%/60 K; designers, 43%/230 K; photographers, 38%/50 K) Analytic reasoning (legal assts, 66%/159 K; electronic engs, 28%/147 K) Source: “Where the Jobs Are”/NYT/05. 13. 2004/data 1994 -2004

10. 16. 04

“UPS used to be a trucking Now it’s a technology company with trucks. ” company with technology. —Forbes

Measure “Strangeness”/Portfolio Quality Staff Consultants Board Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (Line. Ex v. Leap) IS/IT HQ Location Lunch Mates Language

10. 15 A. 04

The Power Is the Story 10. 15. 04

Market Power = Story Power

Brand = Story

Story > Brand

10. 15. 04

“Business people don’t need to ‘understand designers better. ’ Businesspeople need to be designers. ” —Roger Martin/Dean/Rotman Management School/Univ of Toronto

“We have to move up the value chain and focus increased efforts on becoming a knowledge-based, entrepreneurial economy if we are to prosper in the medium to long term. ” —Tony Dromgoole, Chief Executive, Irish Management Institute

“In China’s Countryside, Farmers Are Cultivating Agribusiness Explosion as Subsidies Cut U. S. Export Dominance” —Headline/p 1/WSJ Europe/10. 15. 04

“GM Europe to Slash Costs in Blow to German Workers: Loss-ridden Automaker Facing Asian Onslaught, to Cut up to 12, 000 Jobs” —Headline/p 1/WSJ/10. 15. 04

“The essence of American presidential leadership, and the secret of presidential success, is storytelling. ” —Evan Cornog, The Power and the Story: How the Crafted Presidential Narrative Has Determined Political Success from George Washington to George W. Bush

“The global economy is antibalance. For as much as Accenture and Google say they value an environment that allows workers balance, they’re increasingly competing against companies that don’t. You’re competing against workers with a lot more to gain than you, who will work harder for less money to get the job done. This is the dark side of the ‘happy workaholic’ Someday, all of us will have to become workaholics, happy or not, just to get by. ” —Fast Company/10. 04 (“Balance Is Bunk, ” by Keith Hammonds)

10. 14. 04

’ 70 s: Cost (BCG’s “cost curves”) ’ 80 s: TQM-CI (Japan) ’ 90 s: Service ’ 00 s: Solutions/Experiences ’ 10 s: Dream Fulfillment

Six Market Profiles 1. Adventures for Sale/IBM 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market/IBM 5. The Market for Peace of Mind/IBM-UPS 6. The Market for Convictions/IBM Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

10. 13 A. 04

Calendars do not lie. (Period. )

07. 04/TP In Nagano … Revenue: $10 B FTE: 1* *Maybe

Sarah: “ Daddy, what do you do? ” Papa: “I’m ‘overhead. ’ ”

60, 000/26 600/200 168/18, 500/51, 000

“Let China sleep, for when she awakes she will shake the world. ”

“Let China sleep, for when she awakes she will shake the world. ” Napoleon —

+49%/profits +52%/revenue Source: WSJ/10. 13. 2004/“Infosys 2 nd-Period Profit Rose Amid Demand for Outsourcing”

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 Mac. Leod/tompeters. com/NPR

Rogaine. Help Keep Your Hair. Help Keep Your Confidence. Source: Ad on the side of a bus/Dublin/10. 04

Product: Rogaine. Solution: Help Keep Your Hair. Dream-come-true: Help Keep Your Confidence. Source: Ad on the side of a bus/Dublin/10. 04

10. 13. 04

“Don’t get left on the shelf: Innovation, not advertising, is the solution to FMCG [Fast. Moving Consumer Goods] companies’ problems with retailer power and own-label brands” —Headline/FT/10. 12. 04

“Don’t get left on the shelf: Innovation, not advertising, is the solution to FMCG [Fast-Moving Consumer Goods] companies’ problems with retailer power and own-label brands” —Headline/FT/10. 12. 04

“I’m worried our business model might run out of steam in two or three years. We make lots of incremental product improvements, get them to launch as quickly as we can and then fire a big cannon full of marketing dollars at them. But each time the lifetime of that product gets shorter and the amount of dollars we spend gets higher. Eventually there will be no dollars left. ” —CEO/FMCG co. /FT/10. 12 “Judging by the profit warnings from a bunch of FMCG giants [Colgate, Unilever, Coke, Cadbury], that time is already upon us. [The FMCGs] have a solution: spend more on advertising. Good luck to them. We tell our clients something different: It’s too late. Rather than frittering margins on ever bigger ad budgets, companies must start to innovate. ” —Tim Thorne, CEO, Edengene/corporate growth consultants/FT/10. 12

“Passionate amateurs, empowered by technology and linked to one another, are reshaping business, politics, science and culture. ” —Charles Leadbeater/Fast Company/10. 2004

“An estimated 60 to 90 percent of doctor visits involve stress-related complaints. ” —Newsweek/09. 27. 2004

10. 12. 04

Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press “The winners in business have always played hardball. ” “Unleash massive and overwhelming force. ” “Exploit anomalies. ” “Threaten your competitor’s profit sanctuaries. ” “Entice your competitor into retreat. ” Approximately 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0.

10. 11. 04

Three for the Ages GETTING TO YES … Roger Fisher, William Ury, Bruce Patton LEARNED OPTIMISM … Martin Seligman CRUCIAL CONFRONTATIONS … Kerry Patterson, Joseph Grenny, Ron Mc. Millan, Al Switzler

“Success or Failure”? Try Instead “Optimism or Failure”! From Martin Seligman’s Learned Optimism: “I believe the traditional wisdom is incomplete. A composer can have all the talent of a Mozart and a passionate desire to succeed, but if he believes he cannot compose music, he will come to nothing. He will not try hard enough. He will give up too soon when the elusive right melody takes too long to materialize. Success requires persistence, the ability to not give up in the face of failure. I believe that … OPTIMISTIC EXPLANATORY STYLE … is the key to persistence. “The optimistic-explanatory-style theory of success says that in order to choose people for success in a challenging job, you need to select for three characteristics: (1) Aptitude. (2) Motivation. (3) Optimism. All three determine success. ” (Note: Seligman’s extensive work with Met Life salespeople, among others, proved out the above—in spades. )

Pessimist: Good things … “I’m worthless, but got lucky on this one. ” Bad things … “I’m a bozo who deserved my sorry fate. ” Optimist: Good things … “I deserved that; I’m the cat’s meow. ” Bad things … “I’m the cat’s meow, but the cat had an unlucky day; tomorrow will be better for sure. ”

“Reuters Plans To Triple Jobs at Site In India” —Headline/ New York Times/ World Business/10. 08. 04/ 10% of total workforce in Bangalore by 2006

One company’s answer: CXO* *Chief e. Xperience Officer

BUILT TO … DETERIORATE! “When it comes to investing, I am old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. There’s only one problem. When I checked the drawer recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy. Today, it no longer makes sense. ”—Charles Stein/ “Investment Strategies Must Shift with Realities”/Boston Globe/10. 04 A sample of Stein’s “Blue Chip-turned-clunker” examples: Fannie Mae (featured in Collins’ Good to Great). Coke. (“Clunker, ” make that “Stinker. ”) Merck. (The mightiest fall—stock down 63 percent since 2000; tumble preceded Vioxx) Uh … Microsoft. (“Microsoft’s stock price is no higher today than it was in 1998. ”) “It is not clear there is such a thing as a ‘Blue Chip, ’” Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. “Kravetz’s point is a serious one, ” Stein continues. “Greatness is not permanent. … This process of creative destruction isn’t new. But with the world moving ever faster, and with competition on steroids, the quaint notion of buying and holding is hopelessly out of step. ”

DESIGN IS INEVITABLE! DESIGN IS THE DIFFERENCE! DESIGN RULES!

10. 04

“WHAT’S THE DREAM? ”

Design Rules! Excerpts from Virginia Postrel’s The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness 10. 2004

“If modernist design ideology promised efficiency, rationality and truth, today’s diverse aesthetics offers a different trifecta: freedom, beauty and pleasure. ” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function. ” — Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“As soon as the Taliban fell, Afghan men lined up at barber shops to have their beards shaved off. Women painted their nails with once-forbidden polish. Formerly clandestine beauty salons opened in prominent locations. Men traded postcards of beautiful Indian movie stars…. Even burka merchants diversified their wares, adding colors like brown, peach and green to the blue and off-white dictated by the Taliban’s whipwielding virtue police. Freed to travel to city markets, village women demanded better fabric, finer embroidery and more variety in their traditional garments. ” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the i. Mac. It is to the Age of Aesthetics what Mc. Donald’s was to the age of convenience or Ford was to the age of mass production—the touchstone success story, the exemplar of all that is good and bad about the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste, ’ writes CEO Howard Schultz. ” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“Elaborating on the techniques of one-of-a-kind boutique hotels, Starwood Hotels & Resorts [W, Sheraton, Westin] has adopted a strategy of ‘Winning by design. ’ ” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

“The lowliest household tool has become an object of color, texture, personality, whimsy, even elegance. Dozens, probably hundreds, of distinctively designed toilet-brush sets are available—functional, flamboyant, modern, mahogany. For about five bucks, you can buy Rubbermaid’s basic plastic bowl brush with caddy, which comes in seven different colors, to hide the bristles and keep the drips off the floor. For $8 you can take home a Michael Graves brush from Target, with a rounded blue handle and translucent white container. At $14 you can have an OXO brush, sleek and modern in a hard, shiny white plastic holder that opens as smoothly as the bay door on a science-fiction spaceship. For $32, you can order Philippe Starck’s Excalibur brush, whose hilt-like handle creates a lid when sheathed in its caddy. At $55 there’s Stefano Giovannoni’s Merdolino brush for Alessi … Cross the $100 barrier, and you can find all sorts …” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

The SE 17: Origins of Sustainable Entrepreneurship Tom Peters/10. 2004

SE 17/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3 M, Apple, Fed. Ex, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, Fed. Ex) 3. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 4. Culture of Outspoken-ness (Intel, Microsoft, Fed. Ex, Citi. Group, Pepsi. Co) 5. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft)

SE 17/Origins of Sustainable Entrepreneurship 6. “Culturally” as well as organizationally Decentralized (GE, J & J, Omnicom) 7. Multi-entrepreneurship/Many Independent-minded Stars (GE, Time Warner) 8. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J & J, Virgin) 9. Scour the world for Ingenious Alliance Partners—especially exciting startups (Pfizer) 10. Don’t overdo “pursuit of synergy” (GE, J & J, Time Warner) 11. Find and Encourage and Promote Strong-willed/ Independent people (GE, Pepsi. Co) 12. Ferret out Talent … anywhere and everywhere/ “No limits” approach to retaining top talent (Nike, Virgin, GE, Pepsi. Co)

SE 17/Origins of Sustainable Entrepreneurship 13. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, Pepsi. Co) 14. Up or Out (GE, Mc. Kinsey, big consultancies and law firms and ad agencies and movie studios in general) 15. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, Pepsi. Co) 16. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin, old Raychem) (God help you when #2 is missing: Enron) 17. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

10. 07. 04

“My life is my message. ” Gandhi

“Dreams are ideas with passion. ” —Phil Harkins & Keith Hollihan, Everybody Wins (the RE/MAX story)

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09. 30. 04

1 Y/2 N: Commerce Bank 2 Pizzas: JB Plastic Bulldozer: MD

“A man without a smiling face must not open a shop. ” —Chinese Proverb* *Courtesy Tom Morris, The Art of Achievement

“The only reason they come to se me is that I know that life is great—and they know I know it. ” —Clark Gable* *Courtesy Tom Morris, The Art of Achievement

“Nothing is so contagious as enthusiasm. ” —Samuel Taylor Coleridge* *Courtesy Tom Morris, The Art of Achievement

“Five Clichés of Women (as Portrayed by Advertisers) … Perfect Mum Alpha Female Fashionista Beauty Bunny Great Granny” Source: The Independent /09. 29. 04 (on forthcoming “First London ‘Think Pink’ Conference”)

“Unilever brand Dove’s use of six generously proportioned ‘real women’ to promote its skinfirming preparations must qualify as one of the most talked-about marketing decisions taken this summer. It was also one of the most successful: Since the campaign broke, sales of the firming lotion have gone up 700 percent in the UK, 300 percent in Germany and 220 percent in the Netherlands. ” —Financial Times/09. 29. 04

“Motown Is Stealing Hollywood’s Best Tricks … With Oprah’s 276 -car giveaway all over the news last week, GM got just what it wanted: a blockbuster debut [for its ‘unheralded Pontiac G 6’]. ” Source: Newsweek/09. 27. 04 (Cost: $7 million … “A car that gets off to a slow start has little hope of ever losing the stigma of distressed merchandise. ”)