Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age South Africa/18August2003

1. Tom Peters’ Re-Imagine!Business Excellence in a Disruptive AgeSouth Africa/18August2003

2. Slides at …tompeters.com

3. It is the foremost task—and responsibility—of our generation to re-imagine our enterprises, private and public —from the Foreword, Re-imagine

4. I. NEW BUSINESS. NEW CONTEXT.

5. “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

6. You must become an ignorant man againAnd see the sun again with an ignorant eyeAnd see it clearly in the idea of it.--Wallace Stevens/“Notes Toward a Supreme Fiction”

7. 1. The Destruction Imperative.

8. “The corporation as we know it, which is now 120 years old, isnot likely to survive the next 25 years.Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

9. Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock

10. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

11. “Good management was the most powerful reason [leading firms] failed to stay atop their industries.Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”Clayton Christensen, The Innovator’s Dilemma

12. “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

13. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

14. “MERGERS: Why Most Big Deals Don’t Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.”—BusinessWeek/10.14.2002

15. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

16. Just Say No …“I don’t intend to be known as the ‘King of the Tinkerers.’ ”CEO, large financial services company (New York, 5-99)

17. The Three Levels of InnovationTransformationalSubstantialIncrementalSource: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

18. II. NEW BUSINESS. NEW TECH.

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

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

21. IBM’s Project eLiza!** “Self-bootstrapping”/ “Artilects”

22. 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?”

23. “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!”— Charles Handy

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

25. Ford: “Vehicle brand owner”(“design, engineer, and market, but not actually make”)Source: The Company, John Micklethwait & Adrian Woolridge

26. 3. IS/ IT/ Web … “On the Bus” or “Off the Bus.”

27. 100square feet

28. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.”—Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.

29. “Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002

30. “A Big Electronics Show Is All About Connections” —headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX

31. 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

32. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.”Ray Lane, Kleiner Perkins

33. “Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

34. Case: CRM

35. Amen!“The Age of the NeverSatisfied Customer”Regis McKenna

36. “Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.”Michael Lewis, next

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

38. No! No! No!FT: “The aim [of CRM] is to make customers feel as they did in the pre-electronic age when service was more personal.”

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

40. Here We Go Again: Except It’s Real This Time!Bank online: 24.3M (10.2002);2XY2000.Wells Fargo: 1/3rd; 3.3M;50% lower attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and stay with the bank much longer.”Source: The Wall Street Journal/10.21.2002

41. III. NEW BUSINESS. NEW VALUE PROPOSITION.

42. 4. The “PSF Solution”:The Professional Service Firm Model.

43. Sarah: “Daddy, what do you do?”Daddy: “I’m a ‘cost center,’ honey.”

44. Bobby: “Daddy, what do you do?”Daddy: “I’m what they call ‘overhead,’ son.”

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

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

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

48. TP to HRMAC:Youare the …Rock Stars of the Age of Talent!

49. DD$21M

50. eHR*/PCC***All HR on the Web**Productivity Consulting CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM