Download - Tom Peters’ We Are in a Brawl with No Rules Nextel/Witness the POWER of Wireless/11.04.2002
Tom Peters’
We Are in a Brawl with No
RulesNextel/Witness the POWER of
Wireless/11.04.2002
“We are in a
brawl with no rules.”
Paul Allaire
“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)
1.All Bets Are Off.
“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and profoundly dangerous kind of
organization—one that might be called a ‘virtual state.’ On September 11th a virtual
state proved that modern societies are vulnerable as never before.”—Time/09.09.2002
“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald
Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are
free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. …
“ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways
to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy
and slow.’ ”—The New York Times/09.04.2002
“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 don’t
talk to each other.”Boston Globe (09.30.2001)
“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly
together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business
2.0/ OCT2002
From: Weapon v. Weapon
To: Org structure v. Org structure
“The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls
that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
Eric Shinseki’s (New) Army
Flat.Fast.Agile.Adaptable.Light … But Lethal.Info-intense.Network-centric. Talent/ “I AM AN ARMY OF ONE.”
2. The Destruction Imperative.
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind,
but how to get the old ones out.”
Dee Hock
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 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
“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 Innovator’s Dilemma
“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
C.E.O. to
C.D.O.
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
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.
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a
timely death. … We believe that most corporations will find it impossible to
match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in
1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
3. The White Collar Revolution
& the Death of Bureaucracy.
108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
“The coefficient of friction associated with the grunge of business
is amazing!”Michael Schrage
IBM’s Project
eLiza!** “Self-bootstrapping”/ “Artilects”
“A bureaucrat is an expensive
microchip.”Dan Sullivan, consultant and
executive coach
“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 Focus
4. IS/ IT/ Web … “On the Bus” or “Off the
Bus.”
100 square feet
Impact No. 1/ Logistics &
Distribution: Wal*Mart … Dell … Amazon.com …
Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc.
… Ad Infinitum.
Autobytel: $400.
Wal*Mart: 13%.Source: BW(05.13.2002)
WebWorld = Everything
Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web 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 World’s Best at Everything
as next door neighbor
“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
Message: eCommerce is not a technology play! It is a
relationship, partnership, organizational and
communications play, made possible by new
technologies.
Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust,
bottlenecked-communication, six-layer
organization.
“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams
you could never have dreamed
before!
“Don’t rebuild. Reimagine.”
The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002
Case: CRM
“CRM has, almost universally, failed
to live up to expectations.”
Butler Group (UK)
CGE&Y (Paul Cole): “Pleasant
Transaction” vs. “Systemic Opportunity.” “Better job
of what we do today” vs. “Re-think overall
enterprise strategy.”
5. The Heart of the Value
Added Revolution: The “Solutions
Imperative.”
The Big Day!
09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
Gerstner’s 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).
“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ …
He wants to capture home improvement dollars wherever and
however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling relationship”).
Source: USA Today/06.14.2002
“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)
“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 it’s financial security, buying a car, paying
for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,
Farmers Group
Keep In Mind: Customer
Satisfaction versus
Customer
Success
KEY WORDS: Partners with our Customers in creating Memorable, Value-added Solutions/ Successes/ Experiences.
WHICH REQUIRES: Total Enterprise Responsiveness … beyond functional walls.
6. A World of Scintillating/
Awesome/WOW “Experiences.”
“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
The “Experience Ladder”
Experiences Services
Goods Raw Materials
“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is
that place that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
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
WHAT CAN BROWN DO FOR YOU?
Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”; $750-$1,000 for flood-control
piping … so that beavers can stay.
Source: WSJ/05.21.2002
Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
7. “It” all adds up
to … THE BRAND.
“WHO ARE WE?”
“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re 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
“WHAT’S OUR
STORY?”
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will 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 understand
that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“EXACTLY HOW ARE WE
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
Source: Jump Start Your Business Brain, Doug Hall
“EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE
CLIENT ?”
8. Boss Job One:
The Talent Obsession.
Model 25/8/53
Sports Franchise GM
From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent
“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
Message: Some people are better than other
people. Some people are a helluva lot better than other
people.
“Why focus on these late teens and twenty-
somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history,
children are more comfortable, knowledgeable and literate than their parents about an
innovation central to society. … The Internet has triggered the first industrial revolution in history
to be led by the young.”
The Economist [12/2000]
The Cracked Ones Let in the Light
“Our 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
MantraM3
Talent = Brand
The Top 5 “Revelations”
Better talent wins.
Talent management is my job as leader.
Talented leaders are looking for the moon and stars.
Over-deliver on people’s dreams – they are volunteers.
Pump talent in at all levels, from all conceivable sources, all the time.
Source: Ed Michaels et al., The War for Talent
9. THINK WEIRD … the HVA/High Value
Added Bedrock.
THINK WEIRD: The High Standard
Deviation Enterprise.
Saviors-in-Waiting
Disgruntled CustomersOff-the-Scope Competitors
Rogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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
COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t
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
Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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
10. Leading in a Brawl with No Rules
“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
“I’m not comfortable unless
I’m uncomfortable.”—Jay Chiat
“If it works, it’s
obsolete.”
—Marshall McLuhan
The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
Cortez!
Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.
“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief
of Staff, U. S. Army
Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”*Fortune, article on “Most Admired Global Corporations”
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
Thank You!