From : Weapon v. Weapon To : Org structure v. Org structure

1. Tom Peters’ Re-Imagine!Business Excellence in a Disruptive AgeMortgage Bankers Association/04.07.2003

2. “If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army

3. “Uncertainty is the only thing to be sure of.”—Anthony Muh, head of investment in Asia, Citigroup Asset management (FT/03.27.2003)

4. “IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …“Al-Qaeda represents a new and profoundly dangerous kind of organization—one that might be called a ‘virtual state.’ On September 11 a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

5. From: Weapon v. WeaponTo:Org structure v. Org structure

6. “Our military structure today is essentially one developed and designed by Napoleon.”Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

7. “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.

8. “In an era when terrorists use satellite phones and encrypted email,US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don’t talk to each other.”Boston Globe (09.30.2001)

9. “Dawn Meyerreicks, CTO of the Defense Intelligence 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

10. “The mechanical speed of combat vehicles has not increased since Rommel’s day, so the difference is all in the operational speed, faster communications and faster decisions.”—Edward Luttwak, on the unprecedented pace of the move toward Bagdad

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

12. “Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.—David Veillette, CEO. Indiana Heart Hospital (Healthleaders/12.2002)

13. “If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart,where point-of-sale-scanners share information on a near real-time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.”—Tom Stewart, Business 2.0

14. Eric’s ArmyFlat.Fast.Agile.Adaptable.Light … But Lethal.Brand You/ Talent/ “I Am An ARMY Of One.”Info-intense.Network-centric.

15. “Float like a butterfly. Sting like a bee.” —Ali

16. 1. The Destruction Imperative.

17. “It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control

18. “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”Kevin Kelly, New Rules for the New Economy

19. 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

20. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.”—Financial Times/11.28.2002

21. “It’s just a fact: Survivors underperform.”—Dick Foster

22. “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

23. 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

24. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:I’m sure there are success stories out there, but at this moment I draw a blank.”Mark Sirower, The Synergy Trap

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

26. “The Industrial Revolution was about scale: vast factory complexes, skyscrapers and railway grids concentrating power in the hands of rulers of large territories: not only responsible rulers such as Bismarck and Disraeli, but Hitler and Stalin too. But the post-Industrial Revolution empowers any one with a cellular phone and a bag of explosives. America’s military superiority guarantees that such new adversaries will not fight according to our notions of fairness: they will come at us by surprise, asymmetrically, at our weakest points.” —Robert Kaplan, Warrior Politics

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

28. 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)

29. Jim & Tom. Joined at the hip. Not.

30. Huh?“Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC

31. Pastels?T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U. S. Grant/W. T. ShermanTR/FDR/LBJ/RR/JFKM.L. KingC. de GaulleM. GandhiW. ChurchillM. ThatcherPicassoMozartCopernicus/Newton/EinsteinJ. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S. McNealyA. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison

32. “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)

33. “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)

34. Boyd

35. OODA Loop/Boyd Cycle“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD)BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

36. “Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.”/ “Arrange the mind of the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a bee.”—AliBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

37. “Maneuverists”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

38. 2. IS/ IT/ Web … “On the Bus” or “Off the Bus.”

39. 108 X 5vs. 8 X 1= 540 vs. 8(-98.5%)

40. “The coefficient of friction associated with the grunge of business is amazing!”Michael Schrage

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

42. 100square feet

43. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

44. Autobytel:$400.Wal*Mart:13%.Source: BW(05.13.2002)

45. From: Supply-chain OptimizationTo: Design-chain OptimizationSource: Cadence Design Systems

46. 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

47. Jargon Bath!Bureaucracy free …Systemically integrated …Internet intense …Knowledge based …Time and location free …“Instantly” responsive …Customer centric …Mass customization enabled.

48. Translation …Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain tightly wired/ friction-freeInternet intense = Do it all via the WebKnowledge based = Open accessTime and location free = Whenever, wherever“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product and service rapidly tailored to client requirements

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

50. Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.