GSK_Crete_04172002

1、 Tom Peters Seminar2002 We Are In A Brawl With No Rules!GSK/Crete/04.17.2002All Slides Available at Note: Lavender text in this file is a link.CONTEXTThe Destruction Imperative I: A Pitiable StoryForbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 “sur

2、vivors” 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

3、Companies That Are Built to Last Underperform the Market“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 bette

4、r 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 Innovators DilemmaJim & Tom. Joined at the hip. Not.Th

5、e Destruction Imperative II: Death by “Same Same”“While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,” The New York Times“The surplus society has a surplus of similar companies, employing similar people, with similar educational backg

6、rounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.”Kjell Nordstrom and Jonas Ridderstrale, Funky Business20 of 267 of top 10*P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The “billion-doll

7、ar” problem.)Source: Advertising Age 01.21.2002/BofA Securities Primary Obstacles to “Marketing-driven Change”1. Fear of “cannibalism.”2. “Excessive cult of the consumer”/ “customer driven”/ “slavery to demographics, market research and focus groups.”3. Creating “sustainable advantage.” Source: John

8、-Marie Dru, Disruption“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be har

9、d for some to hang up the chain mail of sustainable advantage after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.”Rich DAveni, Hypercompetition: Managing the Dynamics of Strategic ManeuveringAxiom (Hypothe

10、sis): We have been screwed by Benchmarking Best Practice C.I./Kaizen. Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity in discontinuous/ambiguous times.“Companies have defined so much best practice that they are now more or less identical.”Jesper Kunde, A Unique Moment IS/I

11、T/Web “On the Bus” or “Off the Bus.”Dells OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory: 100 square feet.“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,

12、 their hierarchies, the number of people they employ all of that is wrong for running an ebusiness.”Ray Lane, Kleiner PerkinsRead It Closely: “We dont sell insurance anymore. We sell speed.” Peter Lewis, ProgressiveRESPONSE The “PSF Solution”:The Professional Service Firm Model.Answer: PSF!Professio

13、nal Service FirmDepartment Head to Managing Partner, HR IS, etc. Inc.“Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that. We pay for ourselves, and we actually make money for the company.”Frank Eichorn, Dire

14、ctor of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: )The Big Day!09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!“These days, building the best server isnt enough. Thats the price of entry.”Ann Livermore, Hewlett-PackardGerstners IBM: System

15、s 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). “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages it moves repres

16、ent.” (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power SystemsNew Springs = TurnkeyFlexible sourcing.Collections.Packaging.Merchandising.Promotion.Systems & Site mg

17、t. Omnicom: 57% (of $6B) from marketing services“VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. Now Mr. Zell says he will transform the real estate market by turning tho

18、se REITs into national brands. Mr. Zell believes clients will start to view those offices as something more than a commodity chosen chiefly by price and location.” New York Times (12.16.2001)The Solutions25. 1. Its the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” i

19、s a 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. Period. We sell PRODUCTIVITY & PROFITABILITY. Per

20、iod.)9. Solutions = “Our culture. ”10. Partner with B.I.C. (Best-In-Class). Period.11. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.12. Project Management can come from any function.13. WE ARE ALL IN SALES. PERIOD.14. We all invest in “wiring” the c

21、ustomer 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 “CO

22、MMODITY.”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 h

23、oot!PSF Unbound+: Its the EXPERIENCE.“Experiences are as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a StageExperience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in

24、 black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership“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 thats not work or home. Its the place our cust

25、omers come for refuge.”Nancy Orsolini, District ManagerThe “Soul” of “Experiences”: Design Mindfulness.Designs place in the universe.“We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. But to me, nothing could be further from the meaning

26、 of design. Design is the fundamental soul of a man-made creation.”Steve JobsAll Equal Except “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the mark

27、etplace.”Norio Ohga “Design is treated like a religion at BMW.”Fortune“The good 10 percent of product design comes out of big-idea companies that dont believe in talking to the customer. Theyre run by passionate maniacs who make everybodys life miserable until they get what they want.”Bran Ferren, A

28、pplied Minds/Wired 1-2001Bottom Line.Design “is” WHAT & WHY I LOVE. LOVE.ZiplocsDesign “is” WHY I GET MAD. MAD.Design is never neutral.Hypothesis: DESIGN is the principal difference between love and hate! THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes m

29、uch further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT or detachment RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a produc

30、t-service-experience stands out or doesnt. Furthermore, its another “one of those things” that damn few companies put consistently on the front burner.Message (?): Men cannot design for womens needs.Message: Design is the wellspring of branding. Great design takes guts and is “soul deep.” It all add

31、s up to THE BRAND.The Heart of Branding “WHO ARE WE?”“Most companies tend to equate branding with the companys marketing. Design a new marketing campaign and, voil, youre on course. They are wrong. The task is much bigger. It is about fulfilling our potential not about a new logo, no matter how clev

32、er. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether or not

33、 you want to be UNIQUE NOW.”Jesper Kunde, A Unique Moment“WHATS OUR STORY?”“Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. Brands are not nouns but verbs.”Source: Jean-Marie Dru, Disruption“EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?”1st Law Mktg Physics:

34、OVERT BENEFIT (Focus: 1 or 2 3 or 4/“One Great Thing.” Source #1: Personal Passion)2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)3RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: See the next slide.)Source: Jump Start Your Business Brain, Doug Hall2 Questions:“How likely are you to purchase this

35、new product or service?” (95% to 100% weighting by execs)“How unique is this new product or service?” (0% to 5%*)*No exceptions in 20 years Doug Hall, Jump Start Your Business BrainTHE WORKRedefining the Work Itself I: The WOW Project.“Reward excellent failures. Punish mediocre successes.”Phil Danie

36、ls, Sydney execCharacteristics of the “Also rans”*“Minimize risk”“Respect the chain of command”“Support the boss”“Make budget”*Fortune, article on “Most Admired Global Corporations”THE TALENT Brand = Talent.*Duh.From “1, 2 or youre out” JW to “Best Talent in each industry segment to build best propr

37、ietary intangibles” EMSource: Ed Michaels, War for Talent (05.17.00)“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.”Warren Bennis & Patricia Ward Biederman, Organizing Genius“AS LEADERS, WOMEN RULE: New Studies find that female managers outshin

38、e their male counterparts in almost every measure”Title, Special Report, Business Week, 11.20.00Womens Strengths Match New Economy Imperatives: Link rather than rank workers; favor interactive-collaborative leadership style empowerment beats top-down decision making; sustain fruitful collaborations;

39、 comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexib

40、le; appreciate cultural diversity.Source: Judy B. Rosener, Americas Competitive SecretThe Cracked Ones Let in the Light“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”David OgilvyEmployees: “Are ther

41、e enough weird people in the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)Deviants, Inc. “Deviance tells the story of every mass market ever created. What starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass marke

42、t idea? Its out there way out there.”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)“A great idea always comes from one persons mind, someone who is, by definition, local. If you place 10 people in Brussels to conceive a European ad/marketing campaign, youll get nothing.”Source: Jean-Mari

43、e Dru, DisruptionMantraM3Talent = BrandTRENDS WORTH TRILLIONSTrends II: Speaking of Women.*Duh II.Women & the Marketspace.?Home Furnishings 94%Vacations 92% (Adventure Travel 70%/ $55B travel equipment)Houses 91%Consumer Electronics 51% Cars 60% (90%)All consumer purchases 83% Bank Account 89%Health

44、 Care 80% $4.8T Japan9M/27.5M/$3.6T GermanyYeow!1970 1%2002 50%OPPORTUNITY NO. 1!Read This Book EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys MarigoldFP/LM: “Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons.“He simply wants t

45、he transaction to take place. Shes interested in creating a relationship. Every place women go, they make connections.”EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand“The Connection Proclivity in women starts early. When asked, How was school today?

46、a girl usually tells her mother every detail of what happened, while a boy might grunt, Fine. ”EVEolution“Women dont buy brands. They join them.”EVEolutionWhat If “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partn

47、ers?”“What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with todays skills?”EVEolutionSTATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social goo

48、d of increased womens power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that womens increasing power leadership skills and purchasing power is the strongest and most dynamic force at work in the American economy today. Dare I sa

49、y it as a long-time Palo Alto resident THIS IS EVEN BIGGER THAN THE INTERNET!Tom PetersPsssst! Wanna see my “porn” collection?Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How Retailings Most Successful Stay that Way”Presenting Experts: M = 16;F = ? (94% = 272)0“Customer is King”: 4,440“

50、Customer is Queen”: 29Source: Steve Farber/Google search/04.2002Trends II: Boomer Bonanza.”*Duh III.“ Age Power will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New OldSubject: Marketers & Stupidity“Its 18-44, stupid!”Sub

51、ject: Marketers & StupidityOr is it: “18-44 is stupid, stupid!”2000-2010 Stats18-44: -1%55+: +21%(55-64: +47%)“NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?”USN&WR Cover/06.01Aging/“Elderly”$“Im in charge!”50+$7T wealth (70%)/$2T annual income50% all disc

52、retionary spending79% own homes/40M credit card users41% new cars/48% luxury$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old“Advertisers pay more to reach the kid because they think that once someone

53、hits middle age hes too set in his ways to be susceptible to advertising. In fact this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywoods cult of youth.”James Surowiecki (The New Yorker/04.01.2002)BOTTOM LINE: LEADING IN TOTALLY

54、 SCREWED- UP TIMESBZ: “I am a Dispenser of Enthusiasm!”“If things seem under control, youre just not going fast enough.”Mario AndrettiThank You!HealthCare21HealthCare21: 21 Ideas for Century211. Hospitals kill people. (And many of those they dont kill, they wound.) (And they deny it.) (ERRORS RULE!) And: Hustling ambulances kill pedestriansand dont save patients.2. Doctors are spoiled bratswho dont like measurements. Or any form of “interference.” Docs are also cover-up artists. The REAL Hippocratic Oath: “DONT RAT ON A FELLOW DOC”. 3. Most prescription drugs d