Re-Imagine Business Excellence in China: Navigating a Disruptive Age

1. Tom Peters’ Re-Imagine2006!Business Excellence in a Disruptive AgeMadrid/21-22February2006(LONG/Talent50)

2. China!

3. China!

4. China!

5. China

6. Ch

7. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

8. Re-imagine!Not Your Father’s World I.

9. 26m

10. “Vaunted German Engineers Face Competition From China”—Headline, p1/WSJ/07.15.2004

11. “U.S. manufacturers and retailers are shifting their domestic warehouses and distribution facilities to China as they seek to make supply chains more efficient”—Headline, page 1, Financial Times, 11.07.2005

12. THE CUSTOMER IS GOD AND THE MARKET DECIDES EVERYTHINGSource: Banner, Hua Xin Dress Co, Ltd., Rongcheng Industry Zone

13. 43h

14. “China’s Next Export:Innovation”—McKinsey Quarterly (Cover Story)

15. 2003: 98% U.S.2005: U.S. 150; Shanghai 500

16. 168/18,500/51,000

17. China’s share of global consumption/2005:Cement … 47%Cotton … 37%Coal … 30% Steel … 26%Source: BusinessWeek/08.05

18. Savings, internal investment, external investment> 50% GDP

19. 2.5M vs 7.1M40/40

20. “Suddenly, China is the No. 3 consumer of high-end goods”Source: BusinessWeek, 0206.06 (from “To Get Rich Is Glorious”)

21. 35/70

22. 600,000350,00070,000

23. 600,000/engineering degrees/2004/China350,000/engineering degrees/2004/India70,000/engineering degrees/2004/U.S.A.Source: “Rising Above the Gathering Storm”/National Academies of Science/Presidential report/October 2005

24. “Beijing Rushes to Build World-class Universities”—Headline, International Herald Tribune, 1028.05**Headline, same day: “China Bank Becomes a Giant Worth $470 Billion”

25. Re-imagine!Not Your Father’s World II.

26. “Income Confers No Immunity as Jobs Migrate”—Headline/USA Today/02.2004

27. “There is no job that is America’s God-given right anymore.”—Carly Fiorina/HP/January2004

28. No Limits?“Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy”—Headline, New York Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)

29. December 9, 2005: “Ogre to Slay? Outsource It to Chinese” (New York Times, page 1—news section). The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.

30. “In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives.”—WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

31. Re-imagine! Not Your Father’s World III.

32. “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, 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 (FT/09.17.04)

33. “How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation, discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel, The Future and Its Enemies

34. The General’s Story. (And Darwin’s)

35. “If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff. U. S. Army

36. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin

37. My Story.(And Charles’.)

38. “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.”—Fast Company /October2003

39. Excellence!The Basics, 1982-2006

40. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

41. 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.

42. ExIn*: 1982-2002/Forbes.comEI: $10,000 yields $140,050DJIA: $10,000 yields $85,000*Basket of 32 publicly traded stocks

43. Excellence2006: The Bedrock Baker’s Dozen • 1. A Bias For Action Is Job One!(Construct a Discipline/Culture of EXECUTION!) • 2. DECENTRALIZATION! ACCOUNTABILITY!(Tom’s “Top Two”, 1965-2005.) • 3. Fail. Forward. Fast.(“Reward Excellent Failures, Punish Mediocre Successes.”) • 4. “Metabolic Management” Matters!(Hustle! Adapt! EAT CHANGE! Win the • “O.O.D.A. Loop” War—Confuse Your Competitors!) • 5. INNOVATE or Die.(“Game-changers” or Bust! Lead the Customer! Just Shout “NO” to Imitation!) • 6. A Damn Good Product.(Pursue “Dramatic Difference.”) • 7. A Damn Cool Product.(Design Rules!) • 8. Ride the Value Added Curve to the Sky!(Sell “GamechangerSolutions”; Provide “Scintillating Experiences”; Become a “Dream Merchant”; Strive to Be a “Lovemark.”) • 9. Relentlessly Pursue the “Big Two” Markets.(WOMEN Buy Everything • BOOMERS & GEEZERS Have All the Money!) • 10. Best “Talent”/Roster Wins!(HR Rules! Everyone a Leader! Women Lead Best! • “Weird” Matters Most! A Workplace to Brag About! Educate for Creativity!) • 11. Demanded: Radical Technology Strategies!(“Incrementalism” Is for Wimps!) • 12. Hard Is Soft! Soft Is Hard!(People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST! Good Citizenship.) • 13. Accept No Less Than EXCELLENCE!(Excellence, Pursuit thereof, Is the #1 Thing That Vaults Us Out of Bed in the Morning)

44. Re-imagine! Speech: Story Line in 100 Words or Less Tom Peters/2006

45. Re-imagine! Speech: Story Line in 100 Words or Less • Wildly altered context (technology, China-India, • global terrorism, etc) • Only answer: adaptive skills and bold-breathtaking innovation • (top-line focus rather than cost-cutting focus) • 3. Race way, way up the value-added curve (implemented “game-altering solutions” rather than “services,” “experiences” rather than “transactions,” and much more) • 4. As part of value-added exercise, pursue Ripe & Enormous “new” markets—Women, Boomers & Geezers • 5. Radical (!!!) use of IS-IT • A “Roster” of Weird & Wondrous & Entrepreneurial “Talent” engaged in “Wow Projects” • “Metabolic Leadership” (Passionate-Radical Leaders who instill a Discipline of Execution, a Quick Tempo-Adaptive Culture and • an appetite to “Eat Radical Change for Breakfast”) • (96 words by my count)

46. 13. Do you understand Business Mantra #1 of the ’00s:DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST?

47. Point of View!/Point of Dramatic Difference!

48. Everybody’s Story.

49. “One Singaporean workercosts as much as …3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/2003

50. “One Singaporean workercosts as much as …3 … in Malaysia8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/2003