Wal*Mart Tom Peters/Saturday/ 2August2003/Bentonville

1
WalMartTom Peters/Saturday/2August2003/Bentonv
ille
2
12 in 20A dozen ideas in twenty minutes
3
1. Beating the odds is no walk in the park!
4
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
5
2. Practice the Art of Strategic Forgetfulness.
6
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
7
The New Ge WayDYB.comDestroy Your
Business dot com
8
3. There will be a next WalMart.
9
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
10
4. I know who the CEO after next will be!
11
Audie Murphy was the most decorated soldier in
WWII. He won every medal we had to offer, plus 5
presented by Belgium and France. There was one
common medal he never won
12
the Good Conduct medal.
13
Herman Melville on JPJ intrepid, unprincipled,
reckless, predatory, with boundless ambition,
civilized in externals but a savage at heart.
from Evan Thomas, John Paul Jones Sailor, Hero,
Father of the American Navy
14
Huh?Quiet, workmanlike, stoic leaders bring
about the big transformations.--JC
15
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/Einstein
J. 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
16
Dream as if youll live forever. Live as if
youll die today. James Dean
17
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
18
5. Push diversity!
19
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
20
Are there enough weird people in the lab these
days?V. Chmn., pharmaceutical house, to a lab
director (06.01)
21
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 market idea? Its out there way out
there.Source Ryan Matthews Watts Wacker,
Fast Company (03.02)
22
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
23
6. Talent!
24
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
25
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
26
Talents Rules1. Talent
25/8/53 2. Some people are better than other
people. Some people are a helluva lot better
than other people3. Think Roster4. Think
V.C.5. Talent Brand6. Talent is what
leaders do.
27
MantraM3Talent Brand
28
6A. Its the stores, stupid!
29
The stores make money.Bentonville spends money.
30
6B. Women Rule!
31
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
32
7. Collect data. Trust your gut.
33
Great Merchants I have knownSam
(Walton)Les (Wexner)Mickey (Drexler)The
fingertips of a safecracker.
34
No great marketing decision was ever made based
on the data John Sculley
35
HAVE MBAs KILLED OFF MARKETING? Prof Rajeev
Batra says What these times call for is more
creative and breakthrough reengineering of
product and service benefits, but we dont train
people to think like that. The way marketing is
taught across business schools is far too
analytical and data-driven. Weve taken away the
emphasis on creativity and big ideas that
characterize real marketing breakthroughs. In
India there is an added problem most senior
marketing jobs have been traditionally dominated
by MBAs. Santosh Desai, vice president, McCann
Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like
approach, tend to reduce marketing into neat
components. This reductionist thinking runs
counter to the idea that great brands must have a
core, unifying idea. Businessworld/04Nov2002/W
hy Is Marketing Not Working?
36
8. Honor the Big Three trends.
37
Women!
38
?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (home projects)
80Consumer Electronics 51 Cars 60
(90)All consumer purchases 83 Bank Account
89Health Care 80
39
War has broken out over your home-improvement
dollar, and Lowes has superpower Home Depot on
the defensive. Its not-so-secret ploy Lure
women. Forbes.com
40
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
41
FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply
wants the transaction to take place. Shes
interested in creating a relationship. Every
place women go, they make connections.
42
Men seem like loose cannons. Men always move
faster through a stores aisles. Men spend less
time looking. They usually dont like asking
where things are. Youll see a man move
impatiently through a store to the section he
wants, pick something up, and then, almost
abruptly hes ready to buy. For a man, ignoring
the price tag is almost a sign of
virility.Paco Underhill, Why We Buy (Buy
this book!)
43
Women dont buy brands. They join
them.EVEolution
44
Notes to the
CEO--Women are not a niche so get this out
of the Specialty Markets group.--The
competition is starting to catch on. (E.g.
Nike, Nokia, Wachovia, Ford, Harley-Davidson,
Jiffy Lube, Charles Schwab, Citigroup,
Aetna.)--If you dip your toes in the water,
what makes you think youll get splashy
results?--Bust through the walls of the
corporate silos.--Once you get her, dont let
her slip away.--Women ARE the long run!
Source Martha Barletta, Marketing to Women
45
1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
46
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
47
Geezers!
48
Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly
understood.Peter Francese, founding publisher,
American Demographics
49
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
50
2000-2010 Stats18-44 -155 21(55-64
47)
51
NOT ACTING THEIR AGE As Baby Boomers Zoom into
Retirement, Will America Ever Be the
Same?USNWR Cover/06.01
52
507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury cars610B
healthcare spending/74 prescription drugs5
of advertising targetsKen Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
53
Hispanics!
54
Duh!We want our associate population to mirror
our customer population at every level, from the
executive suite all the way to the retail floor.
In the marketplace, basically what I want to do
is draw a concentric circle around every one of
our 2,300 stores, and I want the assortment in
that store to match the ethnicity of the
neighborhood its in. Some neighborhoods are all
Hispanic, so we can put in a full Hispanic
format. Thats what Super Saver is. All the
signage is in both languages. Theres a 100
percent Spanish-speaking staff in the
store.Larry Johnston, CEO, Albertsons
55
8A. Push vendors for Cool.
56
Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
57
Use your peerless muscle to push vendors this
decade on Design and Cool as hard as you did last
decade on price. You can have your cake and eat
it too!
58
9. CHANGE EVERYTHING. Remember your roots.
59
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
60
Mr. Sams RulesCommit.Share.Motivate.Communic
ate.Appreciate.Celebrate.Listen.Exceed
expectations.Control expenses.Swim upstream.
61
10. Rule 1 Rules!
62
DG to TP Sam is not afraid to fail. NASA
failing 1, from the shuttle disaster report
(July 2003) fear of retribution by lower-level
employees.
63
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
64
Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
65
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
66
Fail faster. Succeed sooner.David Kelley/IDEO
67
Fail. Forward. Fast. High-tech Exec
68
Nobody gives you power. You just take
it.Roseanne
69
11. MESSAGE WalMart 2008/2013 will bear little
resemblance to WalMart 2003.
70
It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public from the Foreword,
Re-imagine Business Excellence in a Disruptive
Age
71
12. The answer lies within (you).
72
I overcame every single one of my personal
shortcomings by the sheer passion I brought to my
work.Dont become too predictable.Swim
upstream. Go the other way. Ignore conventional
wisdom.Source Sam WaltonHint All this
gets much harder as you become bigger.