Tom Peters’ 2002 We Are In A Brawl With No Rules! GE Industrial Systems /01.06.2002

1. Tom Peters’ 2002 We Are In A Brawl With No Rules!GE Industrial Systems/01.06.2002

2. All Slides Available at …tompeters.com

3. Confusion Reigns.

4. “There will be more confusion in the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case

5. <1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”)Ray Kurzweil

6. 7 Rules for Leading/THRIVING in a Recession+1. It’s ALREADY too late.2. Show up & tell the truth—CREDIBILITY rules.3. Kill with KINDNESS.4. Sharp pencils are imperative—but don’t forget that the CUSTOMER & our TALENT & RISKY INVESTMENTS are still our long-term Bread & Butter. 5. Everything’s different, everything’s the same—it’s the NEW ECONOMY, more than ever, stupid!6. “Use” the trauma to mount the bold initiatives you should have long before mounted: Flux =OPPORTUNITY.7. We’re in a War of Organizational Models—from retail to the Pentagon. IDEAS MATTER MOST.

7. SWA= American + Continental + Delta + Northwest + United + USAirways.(And: No post-0911 layoffs.)Source: Boston Globe (12.22.2001)

8. New Org I: A White Collar Revolution.

9. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

10. IBM’s Project eLiza!

11. “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.”– Stephen Hawking, in the German magazine Focus

12. New Org II: IS/IT … “On the Bus” or “Off the Bus.”

13. Dell’s OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory:100square feet.

14. Cisco!90% of $20B (=$50M/day)Annual savings in service and support from customer self-management: $550M(P.S.: C.Sat e >> C.Sat h)

15. Secret Cisco: Community!Customer Engineer Chat Rooms/CollaborativeDesign ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

16. “We don’t sell insurance anymore.Wesell speed.”Peter Lewis, Progressive

17. WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

18. Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

19. Case: CRM

20. “CRM has, almost universally, failed to live up to expectations.”Butler Group (UK)

21. CGE&Y (Paul Cole): “Pleasant Transaction” vs.“Systemic Opportunity.”“Better job of what we do today” vs.“Re-think overall enterprise strategy.”

22. New Org III: The SOLUTIONS IMPERATIVE.

23. Animating Force:The Sameness Trap

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

25. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business

26. The Big Day!

27. 09.11.2000: HP bids … $18,000,000,000for PricewaterhouseCoopersconsulting business!

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

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

30. “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)

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

32. “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’bottomlines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems

33. Omnicom: 57% (of $6B) from marketing services

34. Who was the number one employer of architectureschool grads in the U.S. last year?

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

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

37. Bottom Line: The …Solutions Imperative

38. 1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is an F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. We sell PRODUCTIVITY & PROFITABILITY & CUSTOMER SUCCESS.)9. Solutions = “Our ‘culture.’ ”10. Partner with/Acquire B.I.C. (Best-In-Class).

39. 11. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.12. Project Management can come from any function.13. WE ARE ALL IN SALES. 14. We all invest in “wiring” the customer organization.15. WE ALL “LIVE THE BRAND.” (Brand = Solutions … that MAKE MONEY FOR OUR CUSTOMER- PARTNER.)16. We use the word “PARTNER” until we all want to barf!17. We NEVER BLAME other parts of our organization for screw-ups.18. WE AIM TO REINVENT THIS INDUSTRY!19. We hate the word-idea “COMMODITY.”

40. 20. We believe in “High tech, High touch.”21. We are DREAMERS.22. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)23. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!24. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!25. This is a hoot!

41. Solutions+ : It’s the EXPERIENCE.

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

43. 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

44. The “Experience Ladder”Experiences ServicesGoods Raw Materials

45. 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

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

47. Ladder PositionCustomer MeasureSolutions Success(Experience)Services SatisfactionGoods Six-sigma

48. Redefining the Work Itself I: B.H.A.G.s and WOW Projects.

49. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

50. Each VP a V.C.: Portfolio of high-risk investments … from all across the company.