Now! Emerging Technology Conference Tom Peters/09.05.2001

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Now!Emerging Technology ConferenceTom
Peters/09.05.2001
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HP-Compaq
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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 Im sure there are success
stories out there, but at this moment I draw a
blank.Mark Sirower, The Synergy Trap
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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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HP -18.6Compaq -10.3Dell 4.4
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Message 2001 Only idiots pull in their
investment horns during a downturn.
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My GOAL Radicalize Audiences!Hint These are
Radical times!
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 are in 87
F100 the 18 F100 survivors underperformed the
market by 20 just 2 (2), GE Kodak,
outperformed the market from 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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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 Innovators Dilemma
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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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Forces _at_ Work IThe Destruction Imperative!
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The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0 (08.00)
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Built to Last v. Built to FlipThe problem with
Built to Last is that its a romantic notion.
Large companies are incapable of ongoing
innovation, of ongoing flexibility.Increasingl
y, successful businesses will be ephemeral. They
will be built to yield something of value and
once that value has been exhausted, they will
vanish.Fast Company (03/2000)
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The New Ge WayDYB.com
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Brand InsideBrand Work The Professional
Service Firm Model
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White Collar Revolution!
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So what will be the Basic Building Block of the
New Org?
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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Brand InsideThe Heart of the Value Creation
Revolution PSF Unbound!
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11 September 2000
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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HP Sun GE IBM UPS UTC General Mills
Springs Anheuser-Busch Carpet One Delphi
Etc. Etc.
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems (Home
Depot)
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The primary strategic mission for CEO Jeffrey
Immelt is to hasten GEs transformation from a
low-margin manufacturer to a more lucrative
services company that sells solutions as much as
stuff.Newsweek/09.10.2001 (Welch raised share
of services revenue from 15 o 70)
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In GEs world there are fewer but bigger
customers, so theres a vital need to maximize
the relationship.Newsweek/09.10.2001
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UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves
represent.ecompany.com/06.01 (E.g., UPS
Logistics manages the logistics of 4.5M Ford
vehicles, from 21 mfg. Sites to 6,000 NA dealers)
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Brand InsideBrand ActionGetting Started a
Personal Perspective
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Topic Boss-free Implementation of STM /Stuff
That MATTERS!
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THE IDEA Model F4 Find a Fellow Freak Faraway
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Heart of the MatterF2F!/K2K!/1_at_T/R.F!A.Fre
ak to Freak/Kook to Kook/One at a Time/
Ready.Fire!Aim.
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And K2KKS2SSKook to Kooky
KustomerSkunk to Scintillating Supplier
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Sales2001
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The Sales25 Great Salespeople 1.
Know the product. (Find cool mentors, and use
them.)2. Know the company.3. Know the customer.
(Including the customers consultants.) (And
especially the corporate culture.)4. Love
internal politics at home and abroad.5.
Religiously respect competitors. (No badmouthing,
no matter how provoked.)6. Wire the customers
org. (Relationships at all levels
functions.)7. Wire the home teams org. and
vendors orgs. (INVEST Big Time time in
relationships at all levels functions.) (Take
junior people in all functions to client
meetings.)
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Politics Rules!
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Great Salespeople 8.
Never overpromise. (Even if it costs you your
job.) 9. Sell only by solving problems-creating
profitable opportunities. (Our product solves
these problems, creates these unimagined
INCREDIBLE opportunities, and will make you a ton
of moneyheres exactly how.) (IS THIS A
PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL
BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE
WRITTEN UP IN THE TRADE PRESS?)10. Will involve
anybodyincluding mortal enemiesif it enhances
the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.11. Know the Brand Story cold live
the Brand Story. (If not, leave.)
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Great Salespeople 12.
Think Turnkey. (Its always your problem!)13.
Act as orchestra conductor You are responsible
for making the whole-damn-network respond.
(PERIOD.)14. Help the customer get to know the
vendors organization build up their
Rolodex.15. Walk away from bad business. (Even
if it gets you fired.)16. Understand the idea of
a good loss. (A bold effort thats sometimes
better than a lousy win.)17. Think those who
regularly say Its all a price issue suffer
from rampant immaturity shrunken
imagination.18. Will not give away the store to
get a foot in the door. 19. Are wary
respectful of upstartsthe real enemy.20. Seek
several cool customerswholl drag you into
Tomorrowland.
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Great Salespeople
21. Use the word partnership obsessively,
even though it is way overused. (Partnership
includes folks at all levels throughout the
supply chain.)22. Send thank you notes by the
truckload. (NOT E-NOTES.) (Most are for little
things.) (50 of those notes are sent to those
in our company!) Remember birthdays. Use the word
we. 23. When you look across the table at the
customer, think religiously to yourself HOW CAN
I MAKE THIS DUDE RICH FAMOUS GET HIM-HER
PROMOTED? 24. Great salespeople in great
technology companies can affirmatively respond to
the query in an HP banner ad HAVE YOU CHANGED
CIVILIZATION TODAY?25. Keep your bloody
PowerPoint slides simple!
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BOTTOM LINEThe Enemy!
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Brand InsideBrand Talent The Great War for
Talent
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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 (05.17.00)
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Message Some people are better than other
people. Some people are a helluva lot better than
other people.
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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Boys are trained in a way that will make them
irrelevant.Phil Slater
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The Cracked Ones Let in the LightOur business
needs a massive transfusion of talent, and
talent, I believe, is most likely to be found
among non-conformists, dissenters and
rebels.David Ogilvy
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Brand InsideReprise TOMORROWS ORGS Itinerant
Potential Machines
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TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal if youre
stretching. Want to make their bones in the
revolution. Love the new technologies. Well
rewarded. Dont plan to be around 10 years from
now.
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TALENT POOL PLUS. Seek out and work with
worlds best as needed (its often needed). We
aim to change the world, and we need gifted
colleagueswho well may not be on our payroll.
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BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont
knowand then unleash the TALENT. Have a vision
to be DRAMATICALLY DIFFERENTbut dont expect the
co. to be around forever. Will scrap pet
projects, and change course 180 degreesand take
a big write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT
REGRETS AT TIME WASTED ON ME TOO PRODUCTS
AND PROJECTS.
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BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
Visionary leaders matched by leaders with
shrewd business sense HOW DO WE TURN A PROFIT
ON THIS COOL IDEA? Appreciate market
creation as much as or more than market share
growth. ARE INSANELY AWARE THAT MARKET LEADERS
ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT
MARKET SHARE WILL NOT PROTECT US, IN TODAYS
VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND
KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Skilling. Case. Etc.)
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ALLIANCE MANIACS. Dont assume that the best
resides within. WORK WITH A SHIFTING ARRAY OF
STATE-OF-THE-ART PARTNERS FROM ONE END OF THE
SUPPLY CHAIN TO THE OTHER. Including vendors
and consultants and especially PIONEERING
CUSTOMERSwho will pull us into the future.
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TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet at Internet speed.
Reluctant to work with those who dont share
this (radical) vision.
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POTENTIAL MACHINES-ORGANISMS. Dont know whats
coming next. But are ready to jump at
opportunities, especially those that
challenge-overturn our own way of doing things.
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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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Forces _at_ Work IIThe Sameness Trap
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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 prices and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, A Unique Moment
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Customers will try low cost providers
because the Majors have not given them any clear
reason not to.Leading Insurance Industry
Analyst (10-99)
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Brand OutsideNew Technology/Strategy 1Use
E-Commerce to Re-invent Everything!
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Dells OptiPlex FacilityBig Job 6 to 8
hours.(20,000 per day)Parts Inventory 2
hours, 100 square feet. (Overall, 5 days vs. 50
to 90 days target is 2.5 days)
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Enron eWorld Price a structured trade, per
John Arnold, 26 Early 1999 30 times a day. Late
2000 30 times per minute.Long-term gas
contract. 1989 9 months, 400 deals. Late 90s
2 weeks, 2 per week. Late 2000 5 such deals per
daySource www.ecompany.com (1/2001)
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Cisco!90 of 20B (50M/day)Annual savings
in service and support from customer
self-management 550M
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Secret Cisco Community!C.Sat e gtgt C.Sat
HCustomer Engineer Chat Rooms/Collaborative
Design (1B free consulting) (45,000 customer
problems a week solved via customer collaboration)
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Welcome to D.I.Y. Nation Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service
goes up because customers are conducting it
themselves. Ray Lane, Oracle
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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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Customer Service is DEAD.One-to-One is
DEAD.Welcome to ??????? We live together in
seamless-responsive harmony with all Members of
the Value Chain. We Create together. We Fulfill
together. We Learn together. We Adjust together.
All old categories which imply separation and
linearity and hierarchy and do-it-to-themism
must die.
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Brand OutsideNew Demographics/Strategy
2AWomen Rule!
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4.8T gt Japan9M/27.5M/3.6T gt Germany
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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The Connection Proclivity in women starts
early. When asked, How was school today? a girl
usually tells her mother every detail of what
happened, while a boy might grunt, Fine.
EVEolution
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What If What if ExxonMobil or Shell dipped
into their credit card database to help commuting
women interview and make a choice of car pool
partners?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?EVEolution
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Women dont buy brands. They join them.Faith
Popcorn, EVEolution
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Honey, are you sure you have the kind of money
it takes to be looking at a car like this?
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Brand OutsideNew Demographics/Strategy
2BWelcome to Old World!
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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 Old
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Aging/ElderlyIm in charge!
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NOT ACTING THEIR AGE As Baby Boomers Zoom into
Retirement, Will America Ever Be the
Same?USNWR Cover/06.01
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507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury610B
healthcare spending/74 prescription drugs5 of
advertising targetsKen Dychtwald, Age Power
How the 21st Century Will Be Ruled by the New Old
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Brand OutsideStrategy 3BRAND POWER!
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Most companies tend to equate branding with the
companys marketing. Design a new marketing
campaign and, voila, 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 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 of 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
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1st Law Mktg Physics OVERT BENEFIT (Focus 1 or
2 gt 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 Hall
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2 QuestionsHow 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
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WHO ARE YOU these days ?TP to Client
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Part I Brand InsidePart II Brand OutsidePart
III Brand Leadership
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Brand LeadershipPassion Rules!
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Lets make a dent in the universe.
Steve Jobs