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Tom Peters’ X25* EXCELLENCE. ALWAYS. MASTER/Part THREE * In Search of Excellence 1982-2007. part three. Slides at … tompeters.com.
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Tom Peters’ X25*EXCELLENCE. ALWAYS.MASTER/Part THREE*In Search of Excellence 1982-2007
Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updatedMaster Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point!
As China and India, among others, surge, “the rest of us” [incl. the likes of Romania] must scramble to “Add Value”[mostly, “back to the future”]
wdcp/“Wildlife Damage-control Professional”:$150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ
7Xto40Xfor “Solution”[rather than “service transaction”]
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
Planetary Rainmaker-in-Chief!“Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models.The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year—that technology companies have never been able to touch.”—Fortune
“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever.Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.”—Narayana Murthy, chairman’s letter, Infosys Annual Report
“Big Brown’s New Bag: UPSAims to Be theTraffic Manager for Corporate America”—Headline/BW/2004
“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”Source: ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.”SMPS Exec
E.g. …UTC/Otis + Carrier: boxes to “integrated building systems”
“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems
California Closets:“a whole-life upgrade, not just a tidy bedroom.”—WSJ/0329.07, “Why the Container-Store Guy Wants to Be Your Therapist”
“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
Gamechanging “Solutions”: Bet-the-CompanyIBMUPSXeroxMasterCardGEBestBuy
I. LAN Installation Co. (3%)II. Geek Squad. (30%.)III. Acquired by BestBuy.IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
The Value-added Ladder/Stuff & TRANSACTIONSServicesGoods Raw Materials
The Value-added Ladder/ OPPORTUNITY-SEEKINGCustomer Success/ Gamechanging SolutionsServicesGoods Raw Materials
“ ‘Results’ are measured by the success of all those who have purchased your product or service”—Jan Gunnarsson & Olle Blohm, The Welcoming Leader
“He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life.Because his sole concern had been my welfare and the success of my business.”—Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)
Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”)Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture-Strategic change”)Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%)—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
The Value-added Ladder/ OPPORTUNITY-SEEKINGImplemented Gamechanging SolutionsServicesGoods Raw Materials
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”—Forrest Gump
“Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!”— Charles Handy
“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that …you’ve become irrelevant to your customers.”—John Battelle/Point/AdvertisingAge/07.05
“Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327(500 of 900 Research)
“[Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as 40 million Americanjobs at risk of being shipped out of the country in the next decade or two.”*—Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg.”
Sarah:“ Mom, what do you do?”Mom:“I’m ‘overhead.’”
“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that.We pay for ourselves, and we actually make money for the company.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) (Who Owns the Data? Using Internal Customer Relationship Management to Improve Business and IT Integration —Frank Eichorn)
