Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age CDW/10.21.2003

1. Tom Peters’ Re-Imagine!Business Excellence in a Disruptive AgeCDW/10.21.2003

2. Slides at …tompeters.com

3. 1. All Bets Are Off.

4. “Uncertainty is the only thing to be sure of.–Anthony Muh,head of investment in Asia, Citigroup Asset Management“If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army

5. 2. The White Collar Revolution & the Death of Bureaucracy.

6. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

7. E.g. …Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years.Source: BW (01.28.02)

8. BW Cover/02.2003“IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Research—even Financial Analysis. Can America Lose These Jobs and Still Prosper?”

9. Predicted U.S. High-wage Job Losses20052010Managers 37,000 288,000Life sciences 3,700 37,000Design 6,000 30,000Architecture 32,000 184,000Bus Ops 61,000 348,000Computer 109,000 473,000Office support 588.000 3,300,000Source: Forrester Research (BusinessWeek/08.25.03)

10. “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

11. 3. The Heart of the Value Added Revolution: The “Solutions Imperative.”

12. “While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,”The New York Times

13. “When McDonald’s first started exporting its formula of quality, cleanliness and service, it was something of a novelty. … These days, quality, cleanliness and service are a given—and people are becoming more interested in what they are eating.” —FT/12.21.2002

14. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst

15. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business

16. “We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina

17. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

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

19. Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

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

21. “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

22. Keep In Mind: Customer Satisfactionversus Customer Success

23. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

24. And the Winners Are …Televisions –12%Cable TV service +5%Toys -10%Child care +5%Photo equipment -7%Photographer’s fees +3%Sports Equipment -2%Admission to sporting event +3%New car -2%Car repair +3%Dishes & flatware -1%Eating out +2%Gardening supplies -0.1%Gardening services +2%Source: WSJ/05.16.03

25. 4. A World of Awesome “Experiences.”

26. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

27. “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

28. “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

29. Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

30. WHAT CAN BROWN DO FOR YOU?

31. The “Experience Ladder”Experiences ServicesGoods Raw Materials

32. 1940: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experience economy) $100.00

33. Message:“Experience” is the “Last 80%”P.S.: “Experience” applies to allwork!

34. 1940: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experienceeconomy) $100.00

35. It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”Trapper: <$20 per beaver pelt.WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ/05.21.2002

36. Moving CompaniesWSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup.And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure out the right spot. …”

37. <TGWvs.>TGR

38. 5. “It” all adds up to … THE BRAND.

39. “WHO ARE WE?”

40. “WHAT’S OUR STORY?”

41. “We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others.Companies will thrive on the basis of their stories and myths.Companies will need to understand that their products are less important than their stories.”Rolf Jensen, Copenhagen Institute for Future Studies

42. 6. Trends Worth Trillion$$$: Women Roar.

43. ?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (“home projects”) … 80%Consumer Electronics … 51% Cars … 60% (90%)Allconsumerpurchases … 83%Bank Account … 89%Health Care … 80%

44. $4.8T > Japan9M/27.5M/$3.6T> Germany

45. Business Purchasing PowerPurchasing mgrs. & agents: 51%HR: >>50%Admin officers: >50%Source: Martha Barletta, Marketing to Women

46. Women-owned Bus.U.S. employees > F500 employees worldwideSource: Martha Barletta, Marketing to Women

47. FemaleThink/ Popcorn“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.”

48. Women's View of Male SalespeopleTechnically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs.Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

49. Editorial/Men: Tables, rankings.*Editorial/Women: Narratives that cohere.**Redwood (UK)

50. Read This Book …EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold