Brand Inside Tom Peters v02.23.2002

1
Brand InsideTom Petersv02.23.2002
2
1. An Action Culture.
3
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
4
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
5
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 Ancestors
6
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

7
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 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 DAveni,
Hypercompetition Managing the Dynamics of
Strategic Maneuvering
8
Leaders dump the ones who brung em Nokia, HP,
3M, PerkinElmer, Corning, etc.
9
Cortez!
10
The New Ge WayDYB.com
11
If youre not pissing people off, youre not
making a difference!
12
Wendell Phillips, abolitionist Republics exist
only on the tenure of being constantly agitated.
There is no republican road to safety but in
constant distrust.Source Louis Menand, The
Metaphysical Club A Story of Ideas in America
13
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.
14
Leaders dont want to win. Leaders need to
win.49
15
WILLPOWER RULES! (12.12.2001) In the end the war
is not about statistics, deadlines, short
attention spans of 24 hour news cycles. Its
about will, the projection of will, the clear,
unambiguous determination of the president of the
United States and the American people to see this
through.DR. Given our lack of
knowledge, LT investments made on the basis of
animal spiritsa spontaneous urge to action
rather than inaction, not as the outcome of a
weighted average of quantitative benefits
multiplied by quantitative probabilities.JMK.
Texas top ten percenters GPAs gt than
those with SATs 200-300 points higher.
16
Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
17
BZ I am a Dispenser of Enthusiasm!
18
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
19
The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
20
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
21
Sony Electronics has a well-earned reputation
for persistence. The companys first entry into a
new field often isnt very good. But, as it has
shown in laptops, Sony will keep trying until it
gets it right.Business Week (5/01)
22
If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
23
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
24
You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
25
The Gus Imperative!
26
Duct Tape Rules!Andrew Higgins, who built
landing craft in WWII, refused to hire graduates
of engineering schools. He believed that they
only teach you what you cant do in engineering
school. He started off with 20 employees, and by
the middle of the war had 30,000 working for him.
He turned out 20,000 landing craft. D.D.
Eisenhower told me, Andrew Higgins won the war
for us. He did it without engineers. Stephen
Ambrose/Fast Company
27
P.S. Mark McCormack 5,000 miles for a 5 min.
meeting!
28
Scaled De-Compression, Rule Of 5 days on the
ground 5 weeks (MONTHS?) in absentia
29
Danger S.I.O. (Strategic Initiative Overload)
30
JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(Throughout) TALENT JACK!
31
Ridin with Roger What have you done to
DRAMATICALLY IMPROVE quality in the last 90 days?
32
2. Work that Matters WOW Projects/ BHAGs.
33
Lets make a dent in the universe.
Steve Jobs
34
Intimidate their users imaginations
Wheres the revolution? J Allard, on the Xbox
35
Language matters! Wow! BHAG! Takes your breath
away!
36
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 intent to
purchase100 unique0 to 5)Source Jump
Start Your Business Brain, Doug Hall
37
Joe J. Jones 1942 2001 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
38
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
39
If you are not prepared to be fired over your
beliefs you are working on the wrong project -
TP
40
Charles Handy on the alchemists Passion was
what drove these people, passion for their
product or their cause. If you care enough, you
will find out what you need to know. Or you will
experiment and not worry if the experiment goes
wrong. Passion as the secret to learning is an
odd secret to propose, but I believe that it
works at all levels and at all ages. Sadly,
passion is not a word often heard in the elephant
organizations, nor in schools, where it can seem
disruptive.
41
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
42
Goal Drive out fear. (Deming et al.)Solution
Passion (alone?) drives out fear.
Source Equinox Manifesto (12.01)
43
3. Demo Mania.
44
Demos! Heroes! Stories!
45
L.B.I.W.D. (Leading By Inducing Weird Demos)
46
MBSA!Managing By Story-ing Around/David
Armstrong
47
A keyperhaps the keyto leadership is the
effective communication of a story.Howard
Gardner Leading Minds An Anatomy of Leadership
48
Early in my career in the law I learned that
he who has the best story wins.JQ Adams/A
Hopkins to T Joadson/M Freeman
49
G.M. V.C. W.P. M.B.S.A.
50
Each VP a V.C. Portfolio of high-risk
investments in people ideas from all across the
company.
51
Basically Omnicoms John Wren makes aggressive
bets on entrepreneurs and gives them tremendous
autonomy, on the assumption that the risk-taking
will pay off in new ideas, connections,
businesses, and, yes, revenues and profits.
Omnicom operates like a venture-capital firm,
says Sir Martin Sorrell of WPP.Fortune
(09.17.2001)
52
Boss Mantra 1 So tell me a story.
53
4. Web World ALL The Friction-free
Enterprise.
54
108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
55
N.W.O./Holy Moly Unemployment up 2 Real wage
growth highest since 60s Productivity
soaring.Source BW/02.11.2002
56
Dells OptiPlex FacilityBig Job 6 to 8
hours.(80,000 per day)Parts Inventory 100
square feet.
57
Cisco!90 of 20B (50M/day)Annual savings
in service and support from customer
self-management 550M (P.S. C.Sat e gtgt C.Sat h)
58
The Real News X1,000,000TowTruckNet.com
59
WebWorld Everything Web as a way to run your
businesss 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
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
60
Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
61
Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
62
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
63
Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
64
Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
65
Supply Chain 2000When 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
worldcustomers, other employees, distributors,
suppliers, manufacturers, consultants. The
browserthat is, the portalresembles 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 on
from a cell phone, Palm Pilot, pager or home
office system.Red Herring (09.2000)
66
CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
67
Suppose, just suppose, that the Web is a new
world were just beginning to inhabit. Were like
the earlier European settlers in the United
States, living on the edge of the forest. We
dont know whats there and we dont know exactly
what we need to do to find out Do we pack
mountain climbing gear, desert wear, canoes, or
all three? Of course while the settlers may not
have known what the geography of the new world
was going to be, they at least knew that there
was a geography. The Web, on the other hand, has
no geography, no landscape. It has no distance.
It has nothing natural in it. It has few rules of
behavior and fewer lines of authority. Common
sense doesnt hold here, and uncommon sense
hasnt yet emerged. David Weinberger, Small
Pieces Loosely Joined
68
Theres no use trying, said Alice. One cant
believe impossible things. I daresay you
havent had much practice, said the Queen. When
I was your age, I always did it for half an hour
a day. Why, sometimes Ive believed as many as
six impossible things before breakfast.Lewis
Carroll
69
Inet allows you to dream dreams you could
never have dreamed before!
70
Q Is that all there is?A Quite
possibly.Roches New Scientific MethodFast
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.
71
5. Beautiful Systems.
72
Fred S.s mediocre thesis. Herb K.s napkin.
73
Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
74
Great design One-page business plan (Jim Horan)
75
K.I.S.S. Gordon Bell (VAX daddy) 500/50.
Chas. Wang (CA) Behind schedule? Cut least
productive 25.
76
Most companies would do more business on the
Internet if they fired their entire marketing
department and replaced it with people who could
produce interactive content that actually made it
easier for users to buy.Jakob Nielsen, Nielsen
Norman Group
77
SWASimple!!!!!!!!!!!! (customers call because
the process is so easy they cant believe theyre
done)30 of revenues directly from site (vs. 6
for others)Source Business Week (09.00)
78
K.I.S.S./Jack 1_at_T Welch (1) Neutron Jack.
(Banish bureaucracy.) (2) 1, 2 or out Jack.
(Lead or leave.) (3) Workout Jack.
(Empowerment, GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout) TALENT JACK!
79
Systems Must have. Must hate. / Must design.
Must un-design.
80
Mgt. Team includes EVP (S.O.U.B.)
81
Executive Vice President, Stomping Out
Unnecessary Bullshit
82
Revised wisdom Forget best practice
(stultifying). Concentrate on Driving out worst
practice.Source Equinox Manifesto (12.01)
83
Ninety percent of what we call management
consists of making it difficult for people to get
things done.P.D.
84
6. Departments as Heroes New Bases for Value
Added.
85
The Big Day!
86
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
87
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
88
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
89
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)
90
Keep In Mind Customer Satisfaction versus
Customer Success
91
7. Talent The 25/8/53 Obsession.
92
25/8/53(Damn it!)
93
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
94
From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent (05.17.00)
95
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)
96
Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
97
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
98
8. Automatic Renewal The HSDE.
99
Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
100
The corporate faith in big industrial mergers
2/3rds of which fail is a vestige of the
spats-and-spittoons era. James Suroweicki, The
New Yorker (More, a Buffett annual-report quote
Many managers were overexposed in impressionable
childhood years to the story in which the
imprisoned handsome prince is released from a
toads body by a kiss from the beautiful
princess.)
101
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
102
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
103
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
104
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
105
Suppliers There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
106
Leaders know WE BECOME WHO WE HANG WITH!
107
WEIRD IDEAS THAT WORK (1) Hire slow learners (of
the organizational code). (1.5) Hire people who
make you uncomfortable, even those you dislike.
(2) Hire people you (probably) dont need. (3)
Use job interviews to get ideas, not to screen
candidates. (4) Encourage people to ignore and
defy superiors and peers. (5) Find some happy
people and get them to fight. (6) Reward
success and failure, punish inaction. (7)
Decide to do something that will probably fail,
then convince yourself and everyone else that
success is certain. (8) Think of some
ridiculous, impractical things to do, then do
them. (9) Avoid, distract, and bore
customers, critics, and anyone who just wants to
talk about money. (10) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas that Work 11½ Ideas for
Promoting, Managing and Sustaining Innovation
108
9. Cherish FAILURES.
109
The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
110
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 Ancestors
111
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
112
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
113
Sams Secret 1!
114
Fail faster. Succeed sooner.David Kelley/IDEO
115
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
116
Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
117
10. Talent II The Check-out Clerks Test.
118
New World of Worklt 1 in 10 F5001 Manpower
Inc.Freelancers/I.C. 16M-25MTemps 3M (incl.
CEOs lawyers)Microbusinesses 12M-27MTotal
31M-55MSource Daniel Pink, Free Agent Nation
119
Leaders-Teachers Do Not Transform People!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a
luxuriant portfolio of meaningful opportunities
(projects) which (3) allow people to fully (and
safely, mostlycaveat they dont engage unless
theyre mad about something) express their
innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams,
assisted by an extensive self-constructed
network) by which those people (5) go to-create
places they (and their mentors-teachers-leaders)
had never dreamed existedand then the
leaders-mentors-teachers (6) applaud like hell,
stage photo-ops, and ring the church bells 100
times to commemorate the bravery of their
followers explorations!
120
Minimum New Work SurvivalSkillsKit2001MasteryRo
lodex Obsession (vert. to horiz.
loyalty)Entrepreneurial InstinctCEO/Leader/Bus
inessperson/CloserMistress of ImprovSense of
HumorIntense Appetite for TechnologyGroveling
Before the YoungEmbracing MarketingPassion
for Renewal
121
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 much either.Michael
Goldhaber, Wired
122
Brand You, Big Time!I AM AN ARMY OF ONE
123
11. A Place Worth Working For.
124
MantraM3Talent Brand
125
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
126
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
127
Soft Is Hard- ISOE
128
Message Leadership is all about love! Passion,
Enthusiasms, Appetite for Life, Engagement,
Commitment, Great Causes Determination to Make
a Damn Difference, Shared Adventures, Bizarre
Failures, Growth, Insatiable Appetite for
Change. Otherwise, why bother? Just read
Dilbert. TPs final words CYNICISM SUCKS.
129
G.H. Create a cause, not a business.
130
1. An Action Culture.2. Work that
Matters WOW Projects/BHAGS.3. Demo Mania.4.
Web World ALL The Friction-free
Enterprise.5. Beautiful Systems.6.
Departments as Heroes New Bases for
Value Added.7. Talent The 25/8/53
Obsession.8. Automatic Renewal The HSDE.9.
Cherish FAILURES.10. Talent II The Check-out
Clerks Test.11. Brand Inside A Place Worth
Working For.