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PSF Unbound version 05.08.01

PSF Unbound version 05.08.01

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PSF Unbound version 05.08.01

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  1. PSF Unboundversion 05.08.01

  2. 1. “Org World” Re-invented

  3. White Collar Revolution!

  4. Headline: “Bank of America to Cut … 10,000 Jobs”“Middle-level and senior managersare expected to be the principal targets of the job cutbacks.”Source: The New York Times (07.29.2000)

  5. 108 X 5vs. 8 X 1** 540 vs. 8 (-98.5%)

  6. The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

  7. “A bureaucrat is an expensive microchip.”Dan Sullivan, consultant and executive coach

  8. Automation+75% of what we do: 40 “expert” decision rules!

  9. IBM’s Project eLiza!

  10. 80,000??

  11. 2. “Soft” Rules!

  12. “AssetlessCompany”John Bryan, CEO, on selling all Sara Lee’s manufacturing

  13. “Don’t own nothin’ if you can help it. If you can, rent your shoes.”F.G.

  14. Cisco, Dell =Brand-owning companies that sell Customer SatisfactionSource: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38 assembly plants]

  15. 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.”

  16. “We own all the intellectual property, we farm out all the direct labor.”Jim McDonnell, VP, IBM

  17. “The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – a company with a head but no body.”Richard Rosecrance, The Rise of the Virtual State

  18. 3. Enter the “PSF”

  19. So what will be the Basic Building Block of theNew Org?

  20. Every job done in W.C.W. is also done “outside” …for profit!

  21. Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.


  23. New OrleansApril 2000:NAPM

  24. Youare the …Rock Stars of the B2B Age!

  25. “P.S.F.”: SummaryH.V.A. Projects (100%)Pioneer ClientsWOW Work (see below)Hot “Talent” (see below)“Adventurous” “culture”Proprietary Point of View (Methodology)W.W.P.F. (100%)/Outside Clients (25%++) When: Now!

  26. 4. The “Holy Shit” Day!

  27. 11 September 2000

  28. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting business!

  29. [“These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett Packard]

  30. 5. PSFs Rule!

  31. % Rev From Service:GE (80%) … IBM (80%) … HP … Sun????

  32. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

  33. Defense-Offense: Systems Integration/HVADelphi, Visteon, DanaUnited Technologies, Corning, GE, Sun, HP, Carpet One, Lexington, Springs, General Mills, Bud …[Anybody in their right mind!]

  34. Service-Systems Paradox:Cut & GrowAutomate 75% of “commodity” service activitiesand/butAdd value via people-intensive “strategic/systems-integration activities” (E.g.: Could Sun’s service/sysint business be 60% of revenues?) (Hiring from PWC, etc.)

  35. E.g. …GE: boxes [transformers, etc.] to “air traffic controllers of electrons”UTC/Otis + Carrier: boxes to “integrated building systems”; P&W, etc.: boxes to major aircraft subsystems

  36. “Customer Satisfaction” to “Customer Success”“We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems

  37. “Systems Integrators” Unite[And Conquer]Cisco’s winning strategy [USAToday 07.11]: “Become the ‘Go-to’ Systems Provider”

  38. “ENRON operates networks throughout the world to develop and enhance energy and broadband communication services. Networks, unlike vertically integrated business structures, facilitate the flow of information and expertise. We can spot market signals faster and respond more quickly. Networks empower individuals, freeing them to craft innovative and substantive solutions to customer problems. Networks are the foundation of our knowledge-based businesses, and they provide exceptional returns and value for our shareholders.”from the 2000 Annual Report

  39. Cemex and FDX!

  40. Webcor. Construction. Web site for each project. Instant info on status to employees, subs, architects. Mgt costs cut by 2/3rds. Huge time shrinkage.Source: Business Week (09.00)

  41. 6. Redefining PSFs

  42. Maybe one [or more] of your“PSFs” becomes the tail that wags the dog?????[E.g.: engineering, IS-logistics-customer service]

  43. Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the Coming Century

  44. Hong Kong: Prototypical “Virtual State”83% Service8% Mfg.Source: Richard Rosecrance,The Rise of the Virtual State

  45. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Etc. … Etc.

  46. “A few years ago a consulting contract might have involved installing an inventory management system or designing a corporate Website. Today, it might include handling everything from creating a business model and hooking up servers for a dot-com to revamping a Fortune 50 company’s supply chain, marketing plan or ebusiness strategy.”Business 2.0, special report on consultants (08.2000); e.g.: Andersen $9B; McKinsey $3B; IBM Global Services $32B.

  47. Is there a future for Sales?Should we use the word Sales?

  48. How about:Full-scale Partners in Marketing and Business Systems Integration?

  49. “Customer Service” is DEAD.“One-to-One” is DEAD.Welcome to: ????[??? = We live together in seamless-responsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We Adjust together. All old categories – which imply separation and linearity and hierarchy and do-it-to-themism – must die.]

  50. TP: Skill at creating, exploiting, and exiting crucial alliances beats ownership of fixed assets.