Princeton05152002

1、 Tom Peters Seminar2002 We Are In A Brawl With No Rules!Princeton.05.15.2002All Slides Available at Note: Lavender text in this file is a link.CONTEXTConfusion Reigns.“There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change

2、will only accelerate.”Steve CaseThe Destruction Imperative.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 mem

3、bers 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“Good management was the most powerful reason leading firms failed to stay atop t

4、heir 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 i

5、nnovations that promised the best returns, they lost their positions of leadership.”Clayton Christensen, The Innovators DilemmaForget“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee HockW.I.W. (?): 20 of 26 (7 of top 10)*P&G: Decli

6、ning domestic sales in 20 of 26 categories; 7 of top 10 categories. (The “billion-dollar” 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 demographic

7、s, market research and focus groups.”3.Creating “sustainable advantage.” Source: John-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 castle

8、s, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard 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 D

9、Aveni, Hypercompetition: Managing the Dynamics of Strategic Maneuvering“Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.”Carl Sagan & Ann Druyan, Shadows of Forgotten AncestorsJim & Tom. Joined at the

10、hip. Not.Axiom (Hypothesis): 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.A White Collar Revolution.108 X 5vs. 8 X 1= 540 vs. 8 (-98.5%)E.g. Jeff Immelt: 75% of “admin, back

11、 room, finance” “digitalized” in 3 years.Source: BW (01.28.02)IBMs Project eLiza!* “Self-bootstrapping”/ “Artilects”“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 F

12、ocus IS/IT/Web “On the Bus” or “Off the Bus.”100 square feetDells OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory: 100 square feet.The Real “News”: X1,000,000TowTruckNAutobytel: $400. Wal*Mart: 13%.Source: BW(05.13.2002)WebWorld = Everything Web as a way to run your businesss

13、innardsWeb as connector for your entire supply-demand chain Web as “spiders 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

14、 (P.D. to after-sales)Web forces you to focus on what you do bestWeb as entre, at any size, to Worlds Best at Everything as next door neighborMessage: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.Mess

15、age: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.“Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processe

16、s, their approvals, 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.So

17、 what will be the Basic Building Block of the New Org?Every job done in W.C.W. is also done “outside” for profit!Answer: PSF!Professional Service FirmDepartment Head to Managing Partner, HR IS, etc. Inc.TP to NAPM: You are the Rock Stars of the B2B Age!eHR*/PCC*All HR on the Web*Productivity Consult

18、ing CenterSource: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF (1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.(3) Non-awesome are outsourced (75%?).(4) Remaining “Centers of Excellence” are retained & leveraged

19、to the hilt!“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, Director of Credit Risk Data Management Group, Wells Fargo Ho

20、me Mortgage (Source: )The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”Base Case: The Sameness Trap “While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,” The New York Times“We make over three new produ

21、ct announcements a day. Can you remember them? Our customers cant!”Carly Fiorina“The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar price

22、s and similar quality.”Kjell Nordstrom and Jonas Ridderstrale, Funky Business“Customers will try low cost providers because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst SWA American + Continental + Delta + Northwest + United + USAirways.Source: Boston Gl

23、obe (12.22.2001)Getting Beyond Lip Service!“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether its financial security, buying a car, paying for home repairs, or even taking a dream vacation.”Martin Fe

24、instein, CEO, Farmers GroupThe 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-Packard“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE

25、 Power Systems“Customer Satisfaction” to “Customer Success”“Were getting better at Six Sigma every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power SystemsKeep In Mind: Customer Satisfac

26、tion versus Customer SuccessWas: Bunch of Guys Who Make Circuit Breakers Division. Is: GE Industrial Systems.Gerstners IBM: Systems 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).

27、“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages it moves represent.” (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)New Springs = TurnkeyFlexible sourcing.Collections.Packagin

28、g.Merchandising.Promotion.Systems & Site mgt. “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 those

29、 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)Omnicom: 57% (of $6B) from marketing servicesWho was the number one employer of architecture school grads in th

30、e U.S. last year?Message: Eat Or Be Eaten.Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2) Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer Success.”The Solutions25. 1. Its the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.Firing Offense

31、.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. Period.)9. Solutions = “O

32、ur culture. ”10. Partner with B.I.C. (Best-In-Class). Period.12. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.1

33、6. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screwups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”21. We believe

34、 in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!Q: Is that all there is?A: Quite possi

35、bly.“Roches New Scientific Method”Fast Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”“P&G, Unilever and Others Are Trying an Experiment: Giving Marketing More Say

36、Over Research”Advertising Age (03.25.2002) “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 dont talk to each other.”Boston Globe (09.30.2001)“Once devised in Riyadh, the tasking

37、 order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. To compensate for the lack of communications capability, the Navy was forced to fly a dai

38、ly cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.” Bill

39、Owens, Lifting the Fog of WarDuh?*: “Weve come up with a solution. Weve begun to create a form of communications that is much better than we had before, and thats allowed us to gather better data. Weve finally realized that we have an interplay with other hospitals and with pre-hospital.”Dr. Ben Hon

40、igman, ER, U. Colorado Hospital, on “diverts” (Denver Post/05.05.02)*Internet + Data + Open data exchange + Barrier busting Innovation & Speeds “New Basics”*1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems” ISat home & throu

41、ghout supply chain. Web based.6. F-L-A-T.*Innovation, Speed, CRM, “Experience”/ “Solution” demand this“Supply Chain” 2000:“When Joe Employee at Company X launches his browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs world customers, other e

42、mployees, distributors, suppliers, manufacturers, consultants. The browser that is, the portal resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers dont have to be in the office. They can log o

43、n from a cell phone, Palm Pilot, pager or home office system.”Red Herring (09.2000)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 L

44、ifestyle!”“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“The Starbucks Fix” Is on “We have identified a third place. And I really believe that sets us apar

45、t. The third place is that place thats not work or home. Its the place our customers come for refuge.”Nancy Orsolini, District Manager“Club Med is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. ”Source: Jean-Marie Dru, Disruption “Guinness as a brand

46、is all about community. Its about bringing people together and sharing stories.”Ralph Ardill, Imagination, in re Guinness StorehouseFrom “Service to “Cause”7X. 730A-800P. F12A.*Plus: WOW Department” “Kill a Stupid Rule” contests, etc. 2001R: 34%; P: 29%; 90-00: 2,048%. Commerce Bank/NJ ($10B). Sourc

47、e: FC05.02.Westins Heavenly BedThe “Experience Ladder”Experiences ServicesGoods Raw Materials 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.001990: Party Chuck E. Cheese (experience economy) $

48、100.00 Message: “Experience” is the “Last 80%”P.S.: “Experience” applies to all work! 1940: Cake from flour, sugar (raw materials economy): $1.00 1955: Cake from Cake mix (goods economy): $2.00 1970: Bakery-made cake (service economy): $10.001990: Party Chuck E. Cheese (experience economy) $100.00 T

49、he “Experience Ladder”Experiences ServicesGoods Raw Materials Ladder Position MeasureSolutions Success(Experiences)Services SatisfactionGoods Six-sigmaWords: Partners Value Added Intellectual-capital Added Consultative-skills Added Implementation Added Model “PSF” Outsourcing (?) Acquisitions-led (O

50、mnicom et al.) “Experiences”- (“Solutions”-) (“Customer Success”-) driven NO STOVEPIPES. It all adds 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

51、 task is much bigger. It is about fulfilling our potential not about a new logo, no matter how clever. 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 o

52、f itself, the management has to give of itself. To put it bluntly, it is a matter of whether or not you want to be UNIQUE NOW.”Jesper Kunde, A Unique Moment“WHATS OUR STORY?”“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society wi

53、ll place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to

54、 understand that their products are less important than their stories.”Rolf Jensen, Copenhagen Institute for Future Studies“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 W

55、E DRAMATICALLY DIFFERENT?”1st Law Mktg Physics: 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

56、 Questions:“How likely are you to purchase this 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 Brain“WHY DOES IT MATTER TO THE CLIENT?”“EXACTLY HOW DO I PASSIONATELY CONVE

57、Y THAT DRAMATIC DIFFERENCE TO THE CLIENT ?”“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which we are UNIQUE to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct “us”/“them” differences. (5) Try “results” on your t

58、eammates. (6) Try em on a friendly Client. (7) Try em on a skeptical Client!THE INDIVIDUALRe-inventing the Individual: BRAND YOU. (Or Else.)“If there is nothing very special about your work, no matter how hard you apply yourself, you wont get noticed, and that increasingly means you wont get paid mu

59、ch either.”Michael Goldhaber, WiredMinimum New Work SurvivalSkillsKit2002MasteryRolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial InstinctCEO/Leader/Businessperson/CloserMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion f

60、or RenewalSams Secret #1!Minimum New Work SurvivalSkillsKit2001MasteryRolodex Obsession (vert. to horiz. “loyalty”)Entrepreneurial InstinctCEO/Leader/Businessperson/CloserMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal