Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeUnlocking Your
Organizations Potential Business Leadership
Forum 2005 Berlin/20October
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Slides at tompeters.comSiemens.LONG also
available
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Re-imagine! Not Your Fathers World I.
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THREE BILLION NEW CAPITALISTS Clyde Prestowitz
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26m
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Vaunted German Engineers Face Competition From
China Headline, p1/WSJ/07.15.2004
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43h
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2003 98 U.S.2005 U.S. 150 Shanghai
500
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MADE IN TAIWAN From Cheap Manufacturing to
Chic Branding Headline/Advertising Age/06.05
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BEATING HURDLES, SCIENTISTS CLONE A DOG FOR A
FIRST Feat for South Koreans
Headline/p1/NYT/08.04.05
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Re-imagine! Not Your Fathers World II.
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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
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The Generals Story. (And Darwins)
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If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
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The Admirals Story.
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Nelsons secret Other admirals more
frightened of losing than anxious to win
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My Story.
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In Toms world, its always better to try a
swan dive and deliver a colossal belly flop than
to step timidly off the board while holding your
nose. Fast Company /October2003
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Everybodys Story.
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/08.18.03
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This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
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H5N1
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1. Re-imagine Permanence The Emperor Has No
Clothes!
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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.SP 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
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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These days both Intel and Microsoft are
scrambling to pay the piper for years of design
entropy WSJ/08.05
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2. Re-imagine Innovate or Die!
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Just Say No to Imitation!
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordström
and Jonas Ridderstråle, Funky Business
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Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting,
efficiency and deal-making. What mattered was the
continual improvement of operations, and that
mindset helped the 152 billion industrial and
finance behemoth become a marvel of earnings
consistency. Immelt hasnt turned his back on the
old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above
all, innovation. BW/032805
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Resist!
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Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/11.29.04
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Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the
same company six times and everybody makes money,
but Im not sure were actually innovating. Our
challenge is to take nanotechnology into the
future, to do personalized medicine Jeff
Immelt/Fast Company/07.05
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Scale?
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
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Focus!
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Scales Limitations All Strategy Is Local True
competitive advantages are harder to find and
maintain than people realize. The odds are best
in tightly drawn markets, not big, sprawling
ones Title/Bruce Greenwald Judd
Kahn/HBR09.05
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Different!
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To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/08.11.03
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The short road to ruin is to emulate the
methods of your adversary. Winston Churchill
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

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GH/TP Get better vs Get different
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Easy!
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FLASH Innovation is easy!
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Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
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CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
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COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid of
is some ignorant antagonist who has never had a
sword in his hand before he doesnt do the thing
he ought to do, and so the expert isnt prepared
for him he does the thing he ought not to do and
often it catches the expert out and ends him on
the spot. Mark Twain
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Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
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Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributedWilliam Gibson
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Hard!
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The Bottleneck is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma? At the top!
Gary Hamel/Strategy or Revolution/Harvard
Business Review
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Bold!
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Beware of the tyranny of making Small Changes to
Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Measurable!
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/
Profundity/ Wow/ Gasp-worthy/
Game-changer Scale?
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Immelt on Innovation breakthroughs Pull out
and fund ideas in each business that will
generate gt100M in revenue find best people to
lead (80 throughout GE)Source Fast
Company/07.05
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Personal!
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Step 1 Buy a Mirror!
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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The SE22 Origins of Sustainable
Entrepreneurship
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SE22/Origins of Sustainable
Entrepreneurship 1. Genetically disposed to
Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab,
Starbucks, Oracle, Sun, Fox, Stanford
University, MIT) 2. Perpetually determined to
outdo oneself, even to the detriment of
todays winners (Apple, Cirque du Soleil,
Nokia, FedEx) 3. Treat History as the Enemy
(GE) 4. Love the Great Leap/Enjoy the Hunt
(Apple, Oracle, Intel, Nokia, Sony) 5. Use
Strategic Thrust Overlays to Attack Monster
Problems (Sysco, GSK, GE, Microsoft) 6. Establish
a Be on the COOL Team Ethos. (Most PSFs,
Microsoft) 7. Encourage Vigorous
Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as
well as organizationally Decentralized (GE, JJ,
Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
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HPs Big Duh!Decentralize (90B)Undo
MatrixAccountabilitySource HP Says
Goodbye To Drama/BW/09.05/re Mark Hurds first
5 months
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SE22/Origins of Sustainable
Entrepreneurship 18. Unmistakable Results
Accountability focus from the get-go to the
grave (GE, New York Yankees, PepsiCo) 19. Up or
Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios
in general) 20. Competitive to a fault! (GE, New
York Yankees, News Corp/Fox,
PepsiCo) 21. Bi-polar Top Team, with Unglued
Innovator 1, powerful Control Freak 2
(Oracle, Virgin) (Watch out when 2 is
missing Enron) 22. Masters of Loose-Tight/Hard-no
sed about a very few Core Values,
Open-minded about everything else (Virgin)
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Decentralization!!Accountability!!
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3. Re-imagine Organizing I IS/IT as Disruptive
Tool!
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We all live in Dell-WalMart-eBay-Google World!
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the FedEx Economy headline/New York
Times/10.08.05
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UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes
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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
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Power Tools for Power Solutions/ Strategies!
TP
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5 F500 have CIO on Board While some of the
worlds most admired companiesTesco, WalMart
are transforming the business landscape by
including technology experts on their boards, the
vast majority are missing out on ways to boost
productivity, competitiveness and shareholder
value.Source Burson-Marsteller
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4. Re-imagine the Base CaseUp, Up, Up, Up the
Value-added Ladder.
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/07.19.
2004
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Closing/selling Boeings 8,000-person facility
in Wichita was an important decision in moving
forward with Boeings long-term strategy of
becoming a large-scale integrator. The Wichita
Eagle/06.16.2005
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Instant Infrastructure GE Becomes a General
Store for Developing Countries headline/
NYT/07.16.05
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Sony faces turmoil as it makes the transition
from hardware to software, from products to
services. Tim Clark Carl Kay, It Will Take
More Than a Foreign CEO to Save Sony, NYT
(03.09.05)
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5. Re-imagine Enterprise as Theater A World of
Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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Experience Rebel Lifestyle!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
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2/503Q04
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WHAT CAN BROWN DO FOR YOU?
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The Experience LadderExperiences
ServicesGoods Raw Materials
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PM Helen Clark appoints Pete Hodgson to a
Cabinet-level job Minister for Lord of the
Ringsc.f. New Zealand Better By Design
Airline to the Middle EarthSource Joe Pine
Jim Gilmore, The Experience Is the Marketing
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6. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
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Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
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7. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats18-44 -155 21(55-64
47)
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8. Re-imagine Excellence I The Talent Obsession.
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Agriculture Age (farmers)Industrial Age (factory
workers)Information Age (knowledge
workers)Conceptual Age (creators and
empathizers)Source Dan Pink, A Whole New Mind
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Brand Talent.
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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
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.Ed
Michaels, War for Talent
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HR doesnt tend to hire a lot of independent
thinkers or people who stand up as moral
compasses. Garold Markle, Shell Offshore HR
Exec (FC/08.05)
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DD21M
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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9. Re-imagine Excellence II New Education for a
New World.
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My wife and I went to a kindergarten
parent-teacher conference and were informed that
our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in
art. We were shocked. How could any childlet
alone our childreceive a poor grade in art at
such a young age? His teacher informed us that
he had refused to color within the lines, which
was a state requirement for demonstrating
grade-level motor skills. Jordan Ayan, AHA!
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15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer
2002Research by Thomas Lockwood
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10. Re-imagine Leadership for Totally Screwed-Up
Times The Passion Imperative.
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Create a Cause!
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Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max De Pree, Herman
Miller
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Make It a Grand Adventure!
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Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
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Quests!
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Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
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Yes!!!!!!!!!!!!!!!!!free to do his or her
absolute best allow its members to discover
their greatness.
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Insist on Speed!
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Strategy meetings held once or twice a year to
Strategy meetings needed several times a week
Source New York Times on Meg Whitman/eBay
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Demand Action!
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We have a strategic plan. Its called doing
things. Herb Kelleher
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Live Your Vision!
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You must be the change you wish to see in the
world.Gandhi
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Dispense Enthusiasm!
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
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Free the Lunatic Within!
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
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