Tom Peters Rollercoaster Days: Learning to … Rock & Roll! SHOPA/Chicago/6.26.2001

Tom PetersRollercoaster Days: Learning to … Rock & Roll!

SHOPA/Chicago/6.26.2001

“There will be more confusion in the business world in the next decade than in any decade in history.

And the current pace of change will only accelerate.”

Steve Case

Message 1: White Water ahead. Forever.

Part I: Brand InsidePart II: Brand Outside

Brand InsideBrand Work: The

Professional Service Firm Model & The

WOW Project

White Collar

Revolution!

New World of Work< 1 in 10 F500

#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27MTotal: 31M-55M

Source: Daniel Pink, Free Agent Nation

Message 2: Prepare for a New World of

Work!

11 September 2000

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]

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Etc. … Etc.

Textile Co.Collections.

Flexible sourcing.Packaging.

Merchandising.Promotion.

Design.Systems & Site mgt.

= Turnkey.

“ ‘Architecture’ is becoming a commodity.

Winners will be ‘Turnkey Facilities Management’

providers.”SMPS Exec

Message 3: Head (Way) Up the V.A. Chain!

The Raw Material …

The WOW Project!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

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

Message 4: WOW Now … or Die!

Brand Inside

Brand Talent: The Great War for Talent

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“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)

Message 5: Some people are better than other

people. Some people are a helluva lot better than other

people.

So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager,

$3-4M per year. Pay: $135,000 plus $90,000. Net:

$2-3M for $50K.Source: Ed Michaels et al., The War for

Talent, re Georgia-Pacific

Message 6: What gets measured gets done. What gets paid for gets

done more. What gets paid a lot for gets

done a lot more.

Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise

Saviors-in-Waiting

Disgruntled CustomersFringe CompetitorsRogue Employees

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe

Competitors, Lost Customers, and Rogue Employees

“Corporate consciousness is predictably centered around the

mainstream. The best customers, biggest competitors, and model

employees are almost invariably the focus of attention.”

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost

Customers, and Rogue Employees

Message 7: Are You (& Yours) Weird

Enough?

Part I: Brand InsidePart II: Brand Outside

“While everything may be better, it is also increasingly the

same.”Paul Goldberger on retail, “The Sameness of

Things,” The New York Times

“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

Message 8: Same-same Kills!

Brand OutsideStrategy 1:

Use E-Commerce to Re-invent Everything!

Cisco!

90% of $20B (=$50M/day)Annual savings in service

and support from customer self-management: $550M

Dell’s OptiPlex Facility

Big 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)

WebWorld = Everything Web as a way to run your business’ innards

Web 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

Message 9: Survivors will move all their operations to the Web. Now. Web = Encompassing … or else.

Message 10/ Message 2001:

Only idiots pull in their [investment] horns

during a downturn.

Brand OutsideStrategy 2:

Global is for Everyone!

THE SIX “RULES”

Rule #1

There’s no such thing as “too small to

be global.”

Rule #2

If “it” is [truly] good … then it’s good

enough for … THE WORLD.

Rule #3

Glom onto a [modest-sized] partner … who

loves/ “gets” you!

Rule #4

Tailor!! [But don’t give away the store.]

Rule #5

Phil Crosby notwithstanding,

you’ll not [likely] “get it right the first time”!

Message 11 & Rule # 6: When? Now.

Brand OutsideStrategy 3:

Design Matters!

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and features. Design is the only

thing that differentiates one product from another in the

marketplace.”Norio Ohga

Design “is” … WHAT & WHY I LOVE.

LOVE.

I LOVE my ZYLISS Garlic Peeler!

Design “is” … WHY I

GET MAD. MAD.

Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK

PHONE. Major Reward!

Design is never neutral.

Hypothesis: DESIGN is the principal difference

between love and hate!

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”Steve Jobs

Message 12: Design matters. Design is a

State of Mind!

Brand OutsideStrategy 4:

It’s the Experience!

“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 [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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $1.00

1955: Cake from Cake mix (goods economy): $2.00

1970: Bakery-made cake (service economy): $10.00

1990: Party @ Chuck E. Cheese (experience economy) $100.00

Message 13: “Experience”

is the “Last 80%”

HP RevisitedPWC Consultants lead Business

Re-invention Process (“Experience Economy”)

Fabulous Customer Service (“Service Economy”)

Terrific Servers (“Goods Economy”)

Brand OutsideStrategy 4A:

A Case in Point: The Four Seasons

Chicago

Why I Stay at the Four Seasons Chicago

Comfort. (“It’s good to be home.”)

Why I Stay at the Four Seasons Chicago

The doorman. (Recognizes me.)

Why I Stay at the Four Seasons Chicago

The fact that the GM always puts his desk

chair in my room when I’m in town.

Why I Stay at the Four Seasons Chicago

The flashlight with the tape that says “Tom Peters’ Flashlight”

Why I Stay at the Four Seasons Chicago

The bottle of Chalone chardonnay they leave

for me. (They “remember.”)

Why I Stay at the Four Seasons Chicago

No hairs in the bathtub. (Operational

excellence.)

Why I Stay at the Four Seasons Chicago

The Brand. (I trust Izzy.)

Message 14: High tech is cool. So is High

Touch!

Brand Outside

Strategy 5:

BRAND POWER!

“WHO ARE YOU [these days] ?”

TP to Client

“Most companies tend to equate branding with the company’s marketing. Design a new marketing

campaign and, voila, 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

Brand = You Must Care!

“Success means never letting the competition

define you. Instead you have to define yourself based on a point of view you care deeply

about.” Tom Chappell, Tom’s of Maine

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 (Execs Don’t Get It: See the next slide.)

Source: Jump Start Your Business Brain, Doug Hall

2 Questions“How 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

“Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25

words.) (2) List three ways in which we are UNIQUE … to our Clients.

(3) Who are THEY (competitors)? (ID, 25 words.)

(4) List 3 distinct “us”/”them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Big Enchilada:

Try ’em on a skeptical Client!

“WHO ARE WE?”

WHAT’S OUR

STORY?

“EXACTLY HOW ARE WE DRAMATICLY DIFFERENT?”

“ WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

Message 15: “WHO ARE WE?”