Slides* at … tompeters *Also, “Long”
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Transcript of Slides* at … tompeters *Also, “Long”
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Tom Peters’
Re-Imagine!Leading Change,
Developing Talent, Driving Innovation,
Adding Value,Achieving Excellence
AERCE/Madrid/21March2006
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Slides* at …
tompeters.com
*Also, “Long”
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Re-imagine!
Not Your Father’s World I.
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THREE BILLION NEW CAPITALISTS
—Clyde Prestowitz
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Re-imagine!
Not Your Father’s World II.
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“Income Confers No
Immunity as Jobs Migrate”
—Headline/USA Today/02.2004
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“There is no job that
is America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004
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Sydney Morning Herald/ 25October2005
Qantas.Lay off thousands of mechanics.
Maintenance to China.
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“There is no job that is
Australia’s God-given
right anymore.”
—Tom Peters/10.26.2005
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Re-imagine!
Not Your Father’s World III.
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“A focus on cost-cutting and efficiency has helped many organizations survive, but this approach will ultimately render
them obsolete. Only the constant pursuit of
innovation can ensure long-term
success.” —Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia
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The General’s Story.
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“If you don’t like change,
you’re going to like irrelevance even less.” —General Eric
Shinseki, Chief of Staff. U. S. Army
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Everybody’s Story.
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“One Singaporean worker costs as much as …
3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”
Source: The Straits Times/2003
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“One Singaporean worker costs as much as …
3 … in Malaysia
8 … in Thailand 13 … in China 18 … in India.”
Source: The Straits Times/2003
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“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
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Better By Design: A National Strategy
NZ = Design
Excellence
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New ZealandThailand
SpainPortugalIreland
Singapore Taiwan
PhilippinesUAEChile
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“ ‘MADE IN TAIWAN’: From
Cheap Manufacturing to Chic Branding”
—Headline/Advertising Age/06.05
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Taiwan, Your Partner in InnoValue
Poster/Bucharest/03.06
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1. Re-imagine Permanence: The Emperor
Has No Clothes!
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“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
answer seems obvious: Buy a very large one and just wait.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
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2. Re-imagine:
Innovateor
Die!!
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No Option!
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“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 hasn’t turned his back on
the old ways. But in his GE, the new imperatives are
risk-taking, sophisticated
marketing and, above all, innovation.” —BW/2005
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Resist!
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“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
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Different!*
*“Dramatic Difference” (DH), “Remarkable Point of view” (SG)
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“Companies have defined so much
‘best practice’ that they are now more or less identical.” —Jesper Kunde,
Unique Now ... or Never
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“[Immelt] is now identifying technologies with which GE
will … systematically set out to build
entirely new industries” —Strategy+Business, Fall
2005
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Focus!
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Big Winners“Mature” industry … Specialty (No
competition) … Smaller than competitors
4 Traits: Sweet spot … Agility … Discipline
… FOCUSSource: Alfred Marcus, Big Winners and Big Losers:
The 4 Secrets of Long-term Business and Failure
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“We will not, I repeat not,
pretend to be ‘all things to all people.’ ” —CEO, Investec (03.06)
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BOLD!
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“Beware of the tyranny of making
Small Changes to Small
Things. Rather,
make Big Changes
to Big Things.”
—Roger Enrico, former Chairman, PepsiCo
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“Reward excellent failures.
Punish mediocre
successes.”Phil Daniels, Sydney exec
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Action
!
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“Execution is the job of
the business leader.” —Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
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“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
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Measurable!
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Innovation Index: How many of your Top 5
Strategic Initiatives/Key Projects score 8 (out of 10) or higher on a “Rule-breaking”/“Wow”/
“Game-changing” Scale?
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Personal!
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Step #1: Buy a Mirror!
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“The First step in a ‘dramatic’
‘organizational change program’ is obvious—
dramatic personal change!” —RG
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3. Re-imagine Business’s
Fundamental Value Proposition: Fighting “Inevitable Commoditization”
via “The ‘Gamechanging Solutions’ Imperative.”
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Up, Up, Up,
Up
the Value-added Ladder.
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$55B
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And the “M” Stands for … ?
Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-
promised ‘revolution.’ ” )
IBM Global Services* (*Integrated Systems
Services Corp.): $55B
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Huge: Customer Satisfaction versus Customer
Success
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The Value-added Ladder/Stuff ‘n’ Things
Goods Raw Materials
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The Value-added Ladder/Stuff & Transactions
ServicesGoods
Raw Materials
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The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions
ServicesGoods
Raw Materials
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4. Re-imagine Enterprise as
Theater I: A World of Spellbinding “Experiences.”
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“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
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“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
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The Value-added Ladder/Memorable Connection
Spellbinding Experiences
Gamechanging SolutionsServicesGoods
Raw Materials
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Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/ “Exceeded Expectations”
vs.
“Great Vacation”/ “Great Conference”/ “Operation Personal
Renewal”
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5. Re-imagine Enterprise as
Theater II: Embracing the “Dream
Business.”
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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
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“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
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The Value-added Ladder/Emotion
Dreams Come True
Spellbinding Experiences Gamechanging Solutions
ServicesGoods
Raw Materials
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Club, IBM …
Dream Merchants
!
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Up, Up, Up,
Up
the Value-added Ladder.
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The Value-added Ladder: “Managed Asset Reflation”
Dreams Come TrueSpellbinding Experiences Gamechanging Solutions
ServicesGoods
Raw Materials
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6. Re-imagine the Customer I: Trends Worth Trillion$$$ …
Women Roar.
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“Women are the
majority market”
—Fara Warner/The Power of the Purse
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The Perfect Answer
Jill and Jack buy slacks in black…
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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.
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10. Women’s Market =
Opportunity No. 1.
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7. Re-imagine the Customer II: Trends
Worth Trillion$$$ …
Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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44-65: “New Customer Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“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
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8. Re-imagine the Individual: Welcome
to a Brand You World …
Distinct or Extinct
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“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
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Distinct … or
… Extinct
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9. Re-imagine Excellence I: The
Talent Obsession.
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“Human creativity is the
ultimate economic
resource.” —Richard Florida,
The Rise of the Creative Class
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“The Creative
Age is a wide-open
game.” —Richard Florida
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“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
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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 financeand marketing.
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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
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Brand =
Talent.
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10. Re-imagine Excellence II:
Meet the New Boss
… Women Rule!
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“AS LEADERS, WOMEN RULE: New
Studies find that female managers outshine their
male counterparts in almost every measure”
Title, Special Report/BusinessWeek
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“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
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“To be a leader in consumer
products, it’s critical to have
leaders who represent the population we
serve.”
—Steve Reinemund/CEO/PepsiCo
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11. Re-imagine Excellence III:
New Education for a Creative Age.
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“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 grade
in art at such a young age? His teacher informed us that he had
refused to color within the lines, which was a state
requirement for demonstrating ‘grade-level motor skills.’ ”
—Jordan Ayan, AHA!
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15 “Leading” Biz Schools
Design/Core: 0Design/Elective: 1
Creativity/Core: 0Creativity/Elective: 4
Innovation/Core: 0Innovation/Elective: 6
Source: DMI/Summer 2002Research by Thomas Lockwood
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12. Re-imagine Leadership for Totally
Screwed-Up Times: The
Passion Imperative.
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Create a Cause!
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“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)
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Find ’em!
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“Leaders
‘do’ people.
Period.” —Anon.
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Make It a Grand
Adventure!
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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.”
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“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
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Live Your
Story!
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“I’m always stopping by our
stores— at least 25
a week. I’m also in other 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
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Demand Action!
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“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only find oil if you drill wells. 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
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Try It!
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Sam’s Secret #1!
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Cherish Realism!
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“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)
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Dispense Enthusiasm!
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“Nothing is so contagious as enthusiasm.”
—Samuel Taylor Coleridge
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“A man without a smiling face must
not open a shop.” —Chinese Proverb*
*Courtesy Tom Morris, The Art of Achievement
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Avoid … Moderation!
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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
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Free the Lunatic Within!
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“You can’t behave in a calm, rational manner. You’ve got to be out there on
the lunatic fringe.” — Jack Welch