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Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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Page 1: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Tom Peters Seminar2001

We Are in a Brawl with No

Rules!Millennium Health Care/11.17.2001

Page 2: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

All Slides Available at …

tompeters.comNote: Lavender text in this file is a link.

Page 3: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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

Page 4: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Uncertainty: We don’t know when things will get back

to normal.

Ambiguity: We no longer know what “normal”

means.

Page 5: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 6: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Forces @ Work I

The Destruction Imperative!

Page 7: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why

Companies That Are Built to Last Underperform the Market

Page 8: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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

Page 9: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Inside

Brand Org: Lean, Linked,

Internet-driven, Virtual

Page 10: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

White Collar

Revolution!

Page 11: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

Page 12: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Inside

Brand Work: The Professional Service Firm

Model

Page 13: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

So what will be the Basic Building

Block of the New Org?

Page 14: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

Page 15: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

Page 16: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

(1) Translate departmental affairs into discrete W.W.P.F. “Products.”(2) 100% go on the Web.

(3) Non-awesome are outsourced (75%??).

(4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!

Page 17: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Inside

The Heart of the Value Creation Revolution:

PSF Unbound!

Page 18: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

Page 19: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett-Packard

Page 20: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

HP … Sun … GE … IBM … UPS … UTC …

General Mills … Springs … Anheuser-Busch …

Carpet One … Delphi … Etc. … Etc.

Page 21: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

Page 22: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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

Page 23: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

GE’s Six Sigma+ Approach

Old view: Out of service 9 days. 4 days are transport, which is client

responsibility.

New view: ALL 9 DAYS ARE OUR RESPONSIBILITY! Why? 9 days =

Client’s World.Source: Steve Kerr, VP, GE

Page 24: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

New Springs = Turnkey

Collections.Flexible sourcing.

Packaging.Merchandising.

Promotion.Systems & Site mgt.

Page 25: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Inside

Redefining the Work

Itself: The WOW Project

Page 26: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Reward excellent failures. Punish

mediocre successes.”Phil Daniels, Sydney exec

Page 27: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Language matters! Wow! BHAG! “Takes

your breath away!”

Page 28: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Inside

Brand Talent: The Great War for Talent

Page 29: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Model 24/7: Sports Franchise GM

Page 30: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, Business Week, 11.20.00

Page 31: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;

favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure

“rationality”; inherently flexible; appreciate cultural diversity

Source: Judy B. Rosener, America’s Competitive Secret

Page 32: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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]

Page 33: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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

Page 34: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

Page 35: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand InsideReprise:

THINK WEIRD: The High Standard

Deviation Enterprise

Page 36: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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

Page 37: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Page 38: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Forces @ Work II

The Sameness Trap

Page 39: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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

Page 40: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Outside

Strategy 1A:Use E-Commerce to

Re-invent Everything!

Page 41: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Dell’s OptiPlex Facility

Big Job: 6 to 8 hours.(80,000 per day)

Parts Inventory: 100 square feet.

Page 42: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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

Page 43: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Message: eCommerce is not a technology play! It is a

relationship, partnership, organizational and

communications play, made possible by new

technologies.

Page 44: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Message: There is no such thing as an effective B2B or

Internet-supply chain strategy in a low-trust,

bottlenecked-communication, six-layer

organization.

Page 45: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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

Page 46: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

I’net …

… allows you to dream dreams

you could never have dreamed

before!

Page 47: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Outside

Strategy 1B:Embracing an e-Led

Age of Self-Determination

Page 48: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

Page 49: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Page 50: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

Page 51: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Impact #1:

Healthcare

Page 52: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

HealthCare2001

Consumerism X Demographics X

IS/Internet X Info Consolidators X Genetics & Devices

= YIKES!

Page 53: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

1. Consumerism (Patient-centric Healthcare)

Page 54: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“A seismic shift is underway in healthcare. The Internet is

delivering vast knowledge and new choices to consumers—raising their

expectations and, in many cases, handing them the controls.

[Healthcare] consumers are driving radical, fundamental change.”

Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

Page 55: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Consumer Imperatives

ChoiceControl (Self-care, Self-management)

Shared Medical Decision-makingCustomer Service

InformationBranding

Source: Institute for the Future

Page 56: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Consumerism”: HMO backlash (e.g., plans with more choice). Alternative Medicine, Wellness & Prevention. Info availability (disease, health, docs,

support groups, outcomes). Self-care (chronic disease). High expectations (genetics, etc.) Boomers (see below). …

Page 57: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Savior for the Sick”

vs.

“Partner for Good Health”

Source: NPR/VPR 08.15.00

Page 58: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

2. Demographics: The BOOMERS Reach 55!

Page 59: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Boomer World

“From jogging to plastic surgery, from vegetarian diets

to Viagra, they are fighting to preserve their youth and

defy the effects of gravity.”M.W.C. Howgill, “Healthcare Consumerism, the

Information Revolution and Branding”

Page 60: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Message Boomer: (1) “There are

l-o-t-s of us.” (2) “We have

the $$$$$$. (3) “We’re/I’m in charge!” (4) “We’ll take no

guff from anyone.” (5) “We

know the emperor has no clothes.”

Page 61: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

3. The IS/Web REVOLUTION

Page 62: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“We’re in the Internet age, and the average

patient can’t email their doctor.”

Donald Berwick, Harvard Med School

Page 63: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“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)

Page 64: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the

Navy had failed years earlier to procure the proper communications gear that would have connected the

Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from

the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking

order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next

strike.” –Bill Owens, Lifting the Fog of War

Page 65: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“By combining powerful computer technology and other

modern information-based systems we could make a

revitalized, leaner military force that is designed to outsee,

outmaneuver and outfight any foe.” --Bill Owens, Lifting the Fog of War

Page 66: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Without being disrespectful, I consider the U.S. healthcare

delivery system the largest cottage industry in the world. There are

virtually no performance measurements and no

standards. Trying to measure performance … is the next revolution in healthcare.”

Richard Huber, former CEO, Aetna

Page 67: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“As unsettling as the prevalence of inappropriate care is the enormous amount of

what can only be called ignorant care. A surprising 85% of everyday medical

treatments have never been scientifically validated. … For instance, when family practitioners in Washington were queried about treating a simple urinary tract

infection, 82 physicians came up with an extraordinary 137 strategies.”

Demanding Medical Excellence: Doctors and Accountability in the Information Age, Michael Millenson

Page 68: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“In health care,

geography is destiny.”

Dartmouth Medical School 1996 report, from Demanding Medical Excellence: Doctors and Accountability in the Information Age,

Michael Millenson

Page 69: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Geography Is Destiny

E.g.: Ft. Myers 4X Manhattan—back surgery. Newark 2X New Haven—

prostatectomy. Rapid City SD 34X Elyria OH—breast-conserving surgery. VT, ME, IA: 3X differences in hysterectomy by age 70; 8X tonsillectomy; 4X prostatectomy

(10X Baton Rouge vs. Binghampton). Breast cancer screening: 4X NE, FL, MI

vs. SE, SW. (Source: various)

Page 70: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Geography Is Destiny

“Often all one must do to acquire a disease is to enter a country where a disease is

recognized—leaving the country will either

cure the malady or turn it into something else. … Blood pressure considered treatably high in the United States might be considered normal in England; and the low blood pressure treated with 85 drugs as well as hydrotherapy and spa

treatments in Germany would entitle its sufferer to lower life insurance rates in the

United States.” – Lynn Payer, Medicine & Culture

Page 71: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Practice variation is not caused by ‘bad’ or ‘ignorant’ doctors. Rather, it is a natural

consequence of a system that systematically tracks neither its processes nor its outcomes,

preferring to presume that good facilities, good intentions and good training lead automatically

to good results. Providers remain more comfortable with the habits of a guild, where

each craftsman trusts his fellows, than with the demands of the information age.”

Michael Millenson, Demanding Medical Excellence

Page 72: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

CDC 1998: 90,000 killed

and 2,000,000 injured from nosocomial

[hospital-caused] drug errors & infections

Page 73: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Quality of care is the problem, not managed care.”

Institute of Medicine (from Michael Millenson, Demanding Medical Excellence)

Page 74: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

RAND (1998): 50%, appropriate preventive care. 60%,

recommended treatment, per medical studies, for chronic

conditions. 20%, chronic care treatment that is wrong.

30% acute care treatment that is wrong.

Page 75: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“In a disturbing 1991 study, 110 nurses of varying experience levels took a written test of their ability to

calculate medication doses. Eight out of 10 made calculation mistakes at

least 10% of the time, while four out of 10 made mistakes 30 % of the

time.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

Page 76: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Patient by patient, problem by problem—drug reactions, hospital

caused infections—Salt Lake City’s LDS Hospital has attacked treatment-

caused injuries and deaths. One of the secrets of LDS’s success is a custom-

built clinical computer system that may serve as a national model for how

to save patient lives.”Demanding Medical Excellence: Doctors and Accountability

in the Information Age, Michael Millenson

Page 77: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

4. Information Consolidators: The Network Maestros

Page 78: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“America has twice as many hospitals and physicians as

it needs.”Med Inc., Sandy Lutz, Woodrin Grossman

& John Bigalke

Page 79: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“The future of hospitals is murky. A combination of technological advances,

managed care, and changes in Medicare reimbursement policy

means that the underlying demand for inpatient services

will continue to fall.”Institute for the Future

Page 80: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Virtual health care webs force providers to focus on their areas of excellence and to

invest in areas where they can generate a sustainable

competitive advantage.”

Healthcare.com: Rx for Reform, David Friend, Watson Wyatt Worldwide

Page 81: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

WebMD (or heirs

& assigns)

Page 82: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

5. Genetics & Devices

Page 83: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Recognizing that a single misspelled gene means the difference

between being poisoned and being cured was the

first victory for the new science of pharmacogenetics.”

Newsweek (06.25.01)

Page 84: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Pharmacogenomics could

fundamentally change the nature of drug discovery and marketing,

rendering obsolete the pharmaceutical industry’s practice of spending vast amounts of time and

money to craft a single medicine with mass-market appeal.”

The Industry Standard (05.28.01)

Page 85: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“BIG DRUG MAKERS TRY TO POSTPONE

CUSTOM REGIMENS. Most drugs don’t work well for about half the patients for whom they are

prescribed, and experts believe genetic differences are part of the reason. The

technology for genetic testing is now in use. But the technique threatens to be so disruptive to the

business of big drug companies – it could limit the market for some of their blockbuster

products – that many of them are resisting its widespread use.”

The Wall Street Journal (06.18.2001)

Page 86: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

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.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Page 87: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Imagine the day that your surgeon performs your heart bypass sitting at a computer thousands of miles from the

operating table. That day may come sooner than you think.”

Newsweek (06.25.01)

Page 88: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“There is no question in my mind that the future of heart

surgery is in robotics.”

Dr. Robert Michler, OSU Med Center, upon the FDA’s approval of robotic partial-

bypass surgery

Page 89: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Golden Age of Patient-centric, Genetics-driven Healthcare Looms! Current status: $1.3T. 30M-70M uninsured. 90K killed and

2M injured p.a. in hospitals. 85% treatments unproven. Cure depends on

locale in which treated. 50% prescriptions do not work. 2X docs. 2X hospitals. IS

primitive. Accountability & measurement nil. And everybody’s mad and feels powerless: docs, patients, nurses,

insurers, employers, hospitals administrators and staff.

Page 90: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Message: (1) An unparalleled time

for imagination and bold action. (2) A time of unprecedented

opportunities. (3) A time

of unprecedented risk.

Page 91: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Brand Outside

Strategy 2:

Women Rule!

Page 92: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Consumer Electronics … 51%

Cars … 60% (90%)All consumer purchases … 83%

Bank Account … 89%Health Care … 80%

Page 93: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

$4.8T > Japan

9M/27.5M/$3.6T > Germany

Page 94: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

Page 95: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

Page 96: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

Page 97: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

Page 98: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

Page 99: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

Page 100: Tom Peters Seminar2001 We Are in a Brawl with No Rules! Millennium Health Care/11.17.2001

“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

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EVEolution: Truth No. 1

Connecting 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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“Women don’t buy

brands. They join them.”

EVEolution

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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s

power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders

about my fact-based conviction that women’s increasing power – leadership skills

and purchasing power – is the strongest and most dynamic force at work in the American

economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN

THE INTERNET!

Tom Peters

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Brand Outside

Strategy 3:

It’s the Experience!

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“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

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“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

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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

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The “Experience Ladder”

Experiences Services

Goods Raw Materials

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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

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Message:

“Experience” is the

“Last 80%”

P.S.: “Experience” applies to all work!

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Brand Outside

Strategy 3A:

BRAND POWER!

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“WHO ARE YOU [these days] ?”

TP to Client

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“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

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“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

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The Heart of Branding …

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“WHO ARE WE?”

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WHAT’S OUR

STORY?

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“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DIFFERENCE TO THE CLIENT ”

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Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

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The Leadership25

Leading in Totally Screwed

Up Times

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1. Leadership Is a …

Mutual Discovery Process.

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“I don’t know.”

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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, mostly—caveat: “they”

don’t engage unless they’re “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 existed—and 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!

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2. Great Leaders on Snorting

Steeds Are Important – but

Great Talent Developers (Type I

Leadership) are the Bedrock of Organizations that Perform Over

the Long Haul.

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Whoops: Jack didn’t have a vision!

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2B. Great Leaders are …

Great V.C.s.

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“Basically [Omnicom’s 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)

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3. But Then Again, There Are Times When This “Cult of Personality”

(Type II Leadership) Stuff Actually Works!

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“A leader is a dealer in hope.”

Napoleon

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4. Find the “Businesspeople”!

(Type III Leadership)

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I.P.M. (Inspired Profit

Mechanic)

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5. Leadership Mantra

#1: IT ALL DEPENDS!

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Renaissance Men are … a snare, a

myth, a delusion!

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6. The Leader Is Rarely/Never the Best Performer.

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33 Division Titles. 26 League Pennants. 14

World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.

Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky

Anderson—1 season.

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7. Leaders LOVE the

MESS!

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7A. Leaders …

SHOW UP!

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Rudy!

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8. Leaders

DO!

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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!)

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9. BUT … Leaders

Know When to Wait.

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Tex Schramm: The “too hard”

box!

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Axioms: (1) Pick your battles carefully.

(2) Sometimes inaction promotes sorting out &

preserves options.

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10. Leaders

FOCUS!

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“To Don’t ” List

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Leaders “dump the ones who brung ’em” —Nokia, HP, 3M,

PerkinElmer, Corning, Enron, etc.

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11. Leaders FORGET!/

Leaders DESTROY!

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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

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12. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the

Bathwater.”

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“Damned If You Do, Damned If You Don’t, Just Plain

Damned”Subtitle in the chapter, “Own Up to the Great Paradox: Success

Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

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13. Leaders Set DESIGN SPECS.

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JackWorld/1@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!

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13A. Leaders Send V-E-R-Y Clear Signals About Design Specs!

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Ridin’ with Roger: “What have you done to

DRAMATICALLY IMPROVE quality in the

last 90 days?”

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14. Leaders Make Their Mark / Leaders

Do Stuff That Matters

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14A. Leaders Pursue

DRAMATIC DIFFERENCE!

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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: “intent to purchase” – 100%; “unique” – 0%

to 5%)

Source: Jump Start Your Business Brain, Doug Hall

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15. Leaders

LOVE the New Technology!

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I’net …

… allows you to dream dreams

you could never have dreamed

before!

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15A. Needed? Type IV Leadership: Technology

Dreamer-True Believer

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The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent

Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True

Believer

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16. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

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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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17. Leaders Out

Their

PASSION!

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BZ: “I am a … DISPENSER

OF ENTHUSIASM!

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“Let’s make a dent in the universe.”

Steve Jobs

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17A. Leaders Know It’s

ALL SALES ALL THE TIME.

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TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”)

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18. Leaders

Give … RESPECT!

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“It was much later that I realized Dad’s secret. He gained respect by giving it. He

talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a

bishop or a college president. He was seriously interested in who you were and what you had to say.”

Sara Lawrence-Lightfoot, Respect

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18A. Leaders Say

“Thank You.”

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“The deepest human need is the

need to be appreciated.”

William James

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19. Leadership Is a Performance.

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“You must be the change you

wish to see in the world.”

--M.G.

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“It is necessary for the President to be the

nation’s No. 1 actor.”FDR

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20. Leaders Have

a GREAT STORY!

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“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

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21. Leaders Seed & Pursue &

Recognize (Weird) “Demos.”

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L.B.I.W.D. (Leading

By Inducing Weird Demos)

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22. Leaders Focus on the

SOFT STUFF!

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“Soft” Is “Hard”

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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. TP’s final words: CYNICISM SUCKS.]

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23. Leaders Are

Graceful.

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“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

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Rodale’s on “Grace” …

elegance … charm … loveliness … poetry in motion … kindliness ..

benevolence … benefaction … compassion … beauty

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24.

Leaders ???:

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“LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON

ROLLER BLADES”

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“Hire smart – go bonkers – have grace – make mistakes – love technology – start all

over again.”

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25. Leaders Know

WHEN TO LEAVE!

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Thank You!