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Tom Peters Seminar2000 Distinct or … Extinct
TechLearn2000 &The World eLearning
CongressOrlando/14November2000
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction Imperative!
NOW THAT’S B-I-G!
“The period 2000-2002 will bring the single greatest change in
worldwide economic and business conditions since we came down from the trees.”
David Schneider & Grady Means, MetaCapitalism
“The corporation as we know it, which is now 120 years old, is
not likely to survive the next 25 years. Legally and
financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
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
“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of Goldman Sachs’ Investment Policy
Committee, answered: I’m sure there are success stories
out there, but at this moment I draw a blank.”
Mark Sirower, The Synergy Trap
“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.
We buy the engineers and the next generation product. …”
John Chambers, Cisco
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Lessons from the Bees!
Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into
smaller colonies which can grow value faster. What the bees are telling us is that the corporate
world has got it all wrong.”David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
Learning Connection
Learning is less important than
forgetting.
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut … 10,000 Jobs”
“Middle-level and senior managers are expected to be
the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)
White Collar Revolution!
The Pincer 5
“Destructive” entrepreneurs/ Global Competition
“White Collar Robots”
THE INTERNET! [E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing [E.g.: India, Mexico]
Speed!!
“Assetless Company”
John Bryan, CEO, on selling all Sara Lee’s manufacturing
RR on “Assetless” [J.B.] Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available
with insights into the customer’s individual needs
and preferences.”
Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)
Learning Connection
Forget it: Blow the corporation up. Now.
Brand Inside
Brand Work: The Professional Service
Firm Model & The WOW Project
So what will be the Basic Building
Block of the New Org?
Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
“P.S.F.”: Summary
H.V.A. Projects (100%)Pioneer Clients
WOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”
Point of View (Methodology)W.W.P.F. (100%)
When: Now!
The Raw Material …
The WOW Project!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
Heart of the Matter
F2F!*
*Freak to Freak … or K2K [Kook to Kook]
Epitaph from Hell … Epitaph from Hell …
Joe T. Jones Joe T. Jones
1942 – 2000 1942 – 2000
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Learning Connection
Forget it: Work = WOW Projects that attack
conventional wisdom.
Brand Inside
Brand You: 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
New World of Work
< 1 in 10 F500#1: Manpower Inc.
Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27MTotal: 31M-55M
Source: Daniel Pink, Free Agent Nation
Minimum New Work SurvivalSkillsKit2000
MasteryRolodex Obsession (vert. to horiz. “loyalty”)
Finishing SkillsEntrepreneurial Instinct
CEO/Leader/BusinesspersonMistress of Improv
Sense of HumorIntense Appetite for Technology
Groveling Before the YoungEmbracing “Marketing”
Passion for Renewal
Invent. Reinvent. Repeat.
Source: HP banner ad
Learning Connection
Forget it: Re-invent yourself. Again & again.
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
From “1, 2 or 3” [JW] to … “Best talent in each
industry segment to build best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
“Talented people are less likely to wait their turn. We used to
view young people as trainees; now they are authorities. Arguably
this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
“Diversity defines the health and wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting
the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity,
nourishes the human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge
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
Women and new-economy
management …
The New Economy …
Shout goodbye to “command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!
Women’s Stuff = New Economy Match
Improv skillsRelationship-centric
Less “rank consciousness”Self determinedTrust sensitive
IntuitiveNatural “empowerment freaks” [less
threatened by strong people]Intrinsic [motivation] > Extrinsic
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Boys are trained in a way that will make
them irrelevant.”
Phil Slater
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est: 9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)
“AS LEADERS, WOMEN RULE: New Studies find that female managers
outshine their male counterparts an almost
every measure”Title, Special Report, Business Week, 11.20.00
Mantra2000
Talent = Brand
“We have transitioned from an asset-based strategy
to a talent-based strategy.”
Jeff Skilling, COO, Enron
Learning Connection
Forget it: Hire freaks. Hire kids. Dump males.
New Economy: Was-Is • Pine-paneled Office• Address: 1 Big Man Plaza• Secretary• Suit • Formal • Rank conscious• Pretense (“Failures are
for fools.”)• I love “Yes men”• Self-contained
• Seat 9B, UA233• Address: [email protected]• Typing: 60 WPM• Casual M-F• Approachable• We are a HOT Team • Screwing up is as normal
as breathing• I love Misfits!• I love partners
Renewal = The “High S.D.” Org/IndividualPioneer Acquisitions [+ “Sell-by”]
Pioneer Customers [Measure the Portfolio]Divide & Conquer [Lessons from the Bees]
Pioneer Assignments/Pioneer Projects [F2F & K2K]Hire Weird [Diversity]/Train Weird/
Promote Weird/Acquire & Cherish & Pay & Promote [Fast] [“Six Sigma”] Talent/Appoint Weird Board
Weed Un-weird [“One Sigma” “Talent”] Hang with Weird [Univ. of Weird]/Lunch with Weird
Read & Surf Weird/Vacate Weird [Six Sigma, Zero Sigma]R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/
Prototyping Mania] Sense of Humor [Cherish Thine Failures]
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
Brand Outside
The Death Knell for Ordinary:
Pursuing Difference!
Learning Connection
Forget it: Ordinary kills. Pursue abnormal.
Beyond Ordinary: The Eight Strategies
Pursue Pioneering Customers!Re-invent via E-commerce & the Web!
Scramble up the V.A. Chain!Embrace Design!
Emphasize the Total Experience!Seek Out “Opportunity #1”! [& #1A]
Cede Control!Become Brand-obsessed!
Brand Outside
Strategy 1:
Hitch Your Wagon to Pioneers!
“Our strategies must be tied to leading edge
customers on the attack. If we focus on the defensive
customers, we will also become defensive.”
John Roth, CEO, Nortel
Learning Connection
Forget it: Seek freaks.
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Savings in service and support from customer self-management: $500M
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
“The Web enables total transparency. People with
access to relevant information are beginning to challenge any type of
authority. The stupid, loyal and humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams you could never have imagined before!
Learning Connection
Forget it: Blow up the corporation redux.
Dream B-I-G.
Brand Outside
Strategy 3:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 80%Consumer Electronics … 51%
Cars … 50%+/80%Etc.
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family
healthcare, finances, education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9M/27.5M/$3.6T > Germany
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female Consumers to Each
Other Connects Them to Your Brand
“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.”
EVEolution
“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every
detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women
interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters
through on-line and off-line programs, geared to help women re-enter the workforce with today’s
skills?”
EVEolution
“Women don’t buy
brands. They join them.”
Faith Popcorn, EVEolution
“Honey, are you sure you have the kind of money it takes to be looking at a car like
this?”
STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s
power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders
about my fact-based conviction that women’s increasing power – leadership skills
and purchasing power – is the strongest and most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
Psssst! Wanna see my “porn”
collection?
“If we are single, they say we couldn’t catch a man. If we are
married, they say we are neglecting him. If we are divorced,
they say we couldn’t keep him. If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
Learning Connection
Forget it: Boot all traditional habits. Think
WOMEN.
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership:ENTHUSIASM RULES!
“I am a dispenser of enthusiasm.”/ Ben
Zander
