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Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004. Slides at … tompeters.com. I. NEW BUSINESS. NEW CONTEXT. All Bets Are Off. Jobs Technology Globalization War, Warfighting & Security. - PowerPoint PPT Presentation
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Page 1: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Tom Peters’

Re-Imagine!Business Excellence in a Disruptive Age

Moscow/16February2004

Page 2: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Slides at …

tompeters.com

Page 3: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

I. NEW BUSINESS.

NEW CONTEXT.

Page 4: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

1. All Bets Are Off.

Page 5: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Jobs Technology

Globalization War, Warfighting

& Security

Page 6: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Uncertainty is the only thing to be sure of.” –Anthony Muh,

head of investment in Asia, Citigroup Asset Management

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff,

U. S. Army

Page 7: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Jobs New Technology

Globalization War, Warfighting &

Security

Page 8: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“14 MILLION service jobs are in

danger of being shipped overseas” —

The Dobbs Report/USN&WR/11.03/re new UCB

study

Page 9: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“One Singaporean worker costs as much as …

3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/08.18.03

Page 10: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The proper role of a healthily functioning economy is to destroy

jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always

sting, as if the invisible hand of free enterprise has slapped

workers in the face.” —Joseph Schumpeter

Page 11: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

Page 12: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“There is no job that is America’s God-given right

anymore.” —Carly Fiorina/ HP/

01.08.2004

Page 13: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

In Store: International Equality, Intranational Inequality

“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great

rewards for merit and great individual autonomy. This will leave individuals far more responsible for

themselves than they have been accustomed to being during the industrial period. It will also reduce the

unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies

throughout the 20th century.”

James Davidson & William Rees-Mogg,The Sovereign Individual

Page 14: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“WHAT ARE PEOPLE GOING TO DO WITH

THEMSELVES?” —Headline/

Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity

rather than anxiety.”)

Page 15: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Jobs Technology

Globalization War, Warfighting &

Security

Page 16: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift

1800s: > prior 900 years1900s: 1st 20 years > 1800s

2000: 10 years for paradigm shift

21st century: 1000X tech

change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it

represents a rupture in the fabric of human history”)

Ray Kurzweil

Page 17: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“In 25 years, you’ll probably be able to get the

sum total of all human knowledge on a personal

device.”Greg Blonder, VC [was Chief Technical

Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000]

Page 18: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“A California biotechnology company has put the entire

sequence of the human genome on a single chip, allowing

researchers to conduct on the complex relationships between the 30,000 genes that make up a

human being in a single experiment.” —Page 1, Financial Times/10.03.2003

Page 19: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Jobs Technology

Globalization War, Warfighting &

Security

Page 20: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The world has arrived at a rare strategic inflection point where

nearly half its population—living in China, India and Russia—have been

integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004

Page 21: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it

will bring the two centuries of global domination by Europe and,

subsequently, its giant North American offshoot to an end.”

—Financial Times (09.22.2003)

Page 22: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

China Roars!

Page 23: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The World Must Learn to Live with

a Wide-awake China” —Headline/FT/11.03

Page 24: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“China has become a manufacturing hub for the rest of the world in low-end labor-intensive goods—and the

rest of the world is becoming a manufacturing hub for China in high-end, capital-intensive goods. …

China may be a threat to certain parts of the global supply chain that rely on low-cost labor, but it

represents an even greater opportunity via production-efficiency gains, economic welfare gains and long-term dynamic potential. Its booming exports are more than matched by booming industrial imports and foreign investment opportunities. It has become

the new engine of global growth.”Source: Glen Hodgson & Mark Worrall/Export Development Canada, in “China Takes

Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

Page 25: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of

Total Global Growth in 2002.

Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

Page 26: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

50% of output from private firms, 37% from state-owned

firms; 80% of workforce (incl. rural) now in private

employ.

Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

Page 27: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

200 cities with >1,000,000 population.

Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

Page 28: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%:

DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs,

PDAs, car stereos).Source: “China Takes Off”, David Hale & Lyric Hughes

Hale/Foreign Affairs/Nov-Dec2003

Page 29: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

World economic output: U.S.A., 21%; EU, 16%; China, 13%

(2X since1991)

Source: New York Times/12.14.2003

Page 30: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Jobs Technology

Globalization

War, Warfighting & Security

Page 31: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

The Breaking of Nations: Order and Chaos in the

Twenty-first CenturyRobert Cooper (as interpreted by Tom Peters)

Page 32: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“This is a dangerous world and it is going to become more

dangerous.”

“We may not be interested in chaos but chaos is interested

in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

Page 33: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The new century risks being overrun by both anarchy and technology. The two great destroyers of history may reinforce each other. Both the spread of

terrorism and weapons of mass destruction point to a world in which Western governments are losing control. The spread of the technology of mass

destruction represents a potentially massive redistribution of power away from the advanced industrial (and democratic) states and toward smaller

states that may be less stable and have less of a stake in an orderly world; or more dramatically still, it may represent a redistribution of power away from

the state itself and towards individuals, that is to say terrorists or criminals. In the past to be damaging, an ideological movement had to be widespread to

recruit enough support to take on authority. Henceforth, comparatively small groups will be able to do the sort of damage which before only state armies or

major revolutionary movements could achieve. A few fanatics with a ‘dirty bomb’ or biological weapons will be able to cause death on a scale not

previously envisaged. … Emancipation, diversity, global communication—all of the things that promise an age of riches and creativity—could also bring a nightmare in which states lose control of the means of violence and people

lose control of their futures.”—Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

Page 34: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Before we can talk about the security requirements for today

and tomorrow, we have to forget the security rules of yesterday.” —Robert Cooper, The

Breaking of Nations: Order and Chaos in the Twenty-first Century

Page 35: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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 11 a virtual

state proved that modern societies are vulnerable as never before.”—Time/09.09.2002

Page 36: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

From: Weapon v. Weapon

To: Org structure v. Org structure

Page 37: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Our military structure today is essentially one

developed and designed by Napoleon.”

Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff

Page 38: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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.

Page 39: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The mechanical speed of combat vehicles has not

increased since Rommel’s day, so the difference is all in the

operational speed, faster communications and faster

decisions.” —Edward Luttwak, on the unprecedented pace of the move toward Baghdad

Page 40: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Eric’s Army

Flat.Fast.Agile.Adaptable.Light … But Lethal.Talent/ “I Am an Army of One.”Info-intense.Network-centric.

Page 41: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“We are in a

brawl with no rules.”

Paul Allaire

Page 42: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

S.A.V.

Page 43: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective

1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.

Page 44: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

It is the foremost task—and responsibility—of our generation to

re-imagine our enterprises, private

and public. —from the Foreword, Re-imagine

Page 45: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation,

discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable

byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles,

stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel,

The Future and Its Enemies

Page 46: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

2. The Destruction Imperative.

Page 47: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“It is generally much easier to kill an

organization than change it

substantially.” Kevin Kelly, Out of Control

Page 48: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

C.E.O. to

C.D.O.

Page 49: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

Page 50: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

Page 51: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Far from being a source of comfort,

bigness became a code for inflexibility.” —John

Micklethwait & Adrian Wooldridge, The Company

Page 52: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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 53: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

Page 54: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Conglomerates don’t work.” —James

Surowiecki, The New Yorker (07.01,2002)

Page 55: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Acquisitions are about buying market share.

Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

Page 56: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Change the rules before

somebody else does.” —Ralph Seferian, VP,

Oracle

Page 57: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Most of our predictions are based

on very linear thinking. That’s why they will

most likely be wrong.”Vinod Khosla, in “GIGATRENDS,” Wired 04.01

Page 58: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The secret of fast progress is

inefficiency … fast and furious and numerous

failures.” —Kevin Kelly

Page 59: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Japan’s Science Gap *

Rice farming culture: uniqueness suppressed. Gov’t control of R & D. Promotion based on

seniority. Consensus vs. debate. (U.S.: friends can be mortal enemies.) Bias for C.I. vs. “bold

leaps.” Lack of competition and critical evaluation (peer review). Syukuro Manabe:

“What we need to create is job insecurity rather than security to make people compete more.”

*Hideki Shirakawa, Nobel laureate, chemistry

Page 60: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

December 2000: Swiss House for Advanced Research & Education.

Cambridge, Massachusetts. Xavier

Comtesse: “You never hear a Swiss say, ‘I want to change the world.’ We need to take

more risks.”

Page 61: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

II. NEW BUSINESS. NEW TECH.

Page 62: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

3. IS/ IT/ Web:“On the Bus” or “Off the Bus.”

Page 63: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

100 square feet

Page 64: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Dawn Meyerreicks, CTO of the Defense Information 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

Page 65: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

The Real “News”: X1,000,000

TowTruckNet.com

Page 66: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

eRevolution

40,000,000 Americans

(1 of 2 singles/40% of American adults) went to an online

matchmaking site last month (USN&WR/09.29.03)

Page 67: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“flash mobs” (!)

Page 68: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“MIT Everywhere: EVERY LECTURE, EVERY LECTURE,

EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS

GETTING AN MIT EDUCATION, OPEN SOURCE-STYLE.”

—Headline/Wired/09.03

Page 69: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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

Page 70: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The Web enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee, patient

or citizen is dead.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

Page 71: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

Page 72: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Read It Closely: “We don’t sell

insurance anymore. We sell speed.”

Peter Lewis, Progressive

Page 73: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

4. The White Collar

Revolution.

Page 74: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

108 X 5vs.

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

Page 75: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Steel: 75,000,000 tons in ’82 to 102,000,000 tons in

’02. 289, 000 steelworkers in ’82 to 74,000

steelworkers in ’02.

Source: Fortune/11.24.03

Page 76: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Organizations will still be critically important in the world,

but as ‘organizers,’ not ‘employers’!” — Charles Handy

Page 77: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

III. NEW BUSINESS. NEW

VALUE PROPOSITION.

Page 78: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

5. The “PSF Solution”:

The Professional Service Firm Model.

Page 79: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Every job done in W.C.W. is

also done “outside”

…for profit!

Page 80: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Answer: PSF![Professional Service Firm]

Department Head

to …

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

Page 81: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

DD$21M

Page 82: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

6. The Heart of the Value

Added Revolution: PSFs Unbound/ The

“Solutions Imperative.”

Page 83: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Base Case: The Sameness Trap

Page 84: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“While everything may

be better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

Page 85: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, coming up

with similar ideas, producing

similar things, with similar prices

and similar quality.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

Page 86: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“We make over three new product announcements a

day. Can you remember

them? Our customers can’t!”Carly Fiorina

Page 87: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

Page 88: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

price of entry.”Ann Livermore, Hewlett-Packard

Page 89: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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).

Page 90: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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 91: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Keep In Mind: Customer

Satisfaction versus

Customer

Success

Page 92: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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)

Page 93: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“UPS used to be a trucking company with technology. Now it’s a technology company

with trucks.” —Forbes, upon naming UPS

“Company of the Year” in Y2000

Page 94: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

And the Winners Are …

Televisions –12%Cable TV service +5%

Toys -10%Child care +5%

Photo equipment -7%Photographer’s fees +3%

Sports Equipment -2%Admission to sporting event +3%

New car -2%Car repair +3%

Dishes & flatware -1%Eating out +2%

Gardening supplies -0.1%Gardening services +2%

Source: WSJ/05.16.03

Page 95: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

IV. NEW BUSINESS. NEW

BRAND.

Page 96: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

7. A World of Scintillating

“Experiences.”

Page 97: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“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

Page 98: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an

entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

Page 99: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

Page 100: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

The “Experience Ladder”

Experiences Services

Goods Raw Materials

Page 101: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

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8. The [Mostly Ignored] “Soul” of “Experiences”:

Design Rules!

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And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”

Robert Hayes

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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

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“Design is treated like a religion at

BMW.”Fortune

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“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

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Design “is” … WHAT & WHY I LOVE.

LOVE.

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Design “is” … WHY I

GET MAD. MAD.

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Design is never neutral.

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Hypothesis: DESIGN is the principal difference between love and

hate!

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9. “It” all adds up

to … THE BRAND.

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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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“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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“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

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“A great company is defined by the

fact that it is not compared

to its peers.”Phil Purcell, Morgan Stanley

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“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DRAMATIC DIFFERENCE TO THE

CLIENT ?”

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Rules of “Radical Marketing”

Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!

Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)

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V. NEW BUSINESS.

NEW MARKETS.

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10. Trends Worth Trillion$$$:

Women Roar.

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?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% Cars … 68% (90%)

All consumer purchases … 83% Bank Account … 89%

Household investment decisions … 67%Small business loans … 70%

Health Care … 80%

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91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

Page 125: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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.”

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Read This: Barbara & Allan Pease’s

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

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“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

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“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

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“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

Page 130: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

Page 131: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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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2.6 vs. 21

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“Customer is King”: 4,440

“Customer is Queen”: 29

Source: Steve Farber/Google search/04.2002

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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

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VI. NEW BUSINESS. NEW

WORK.

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11. Toward Work that Matters: The

WOW Project.

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“Let’s make a dent in the universe.”

Steve Jobs

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Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

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“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

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VII. NEW BUSINESS. NEW

YOU.

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12. Re-inventing the Individual: Welcome

to a Brand You World

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“In a global economy, the government cannot give

anybody a guaranteed success story, but you can give people the tools to make the most of

their own lives.” —WJC, from Philip Bobbitt,

The Shield of Achilles: War, Peace, and the Course of History

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In Store: International Equality, Intranational Inequality

“The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great

rewards for merit and great individual autonomy. This will leave individuals far more responsible for

themselves than they have been accustomed to being during the industrial period. It will also reduce the

unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies

throughout the 20th century.”

James Davidson & William Rees-Mogg,The Sovereign Individual

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“The Creative Class derives its identity from its members’ roles as

purveyors of creativity. Because creativity is the driving force of economic growth, in terms of

influence the Creative Class has become the dominant class in

society.” —Richard Florida, The Rise of the Creative Class (38M, 30%)

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“If there is nothing very special about

your work, no matter how hard you apply yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

Page 148: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Self-reliance never comes ‘naturally’ to adults because they have been so

conditioned to think non-authentically that it feels wrenching to do otherwise. … Self Reliance is a last resort to which a person is driven in desperation only when he or

she realizes ‘that imitation is suicide, that he must take himself for better, for worse,

as his portion.’ ” —Lawrence Buell, Emerson

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“My ancestors were printers in Amsterdam from 1510 or so until

1750, and during that entire time they didn’t have to learn anything

new.”Peter Drucker, Business 2.0 (08.22.00)

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“Knowledge becomes obsolete incredibly fast. The

continuing professional education of adults is the

No. 1 industry in the next 30 years … mostly on line.”

Peter Drucker,Business 2.0 (22August2000)

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R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

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Invent. Reinvent. Repeat.

Source: HP banner ad

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Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].–My current Project is challenging me …– New things I’ve learned in the last 90 days include …–My public “recognition program”

consists of …– Additions to my Rolodex in the last 90 days include …

–My resume is discernibly different from last year’s at this time …

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The Rule of Positioning

“If you can’t describe your position in eight

words or less, you don’t have a position.”

— Jay Levinson and Seth Godin, Get What You Deserve!

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“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

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13. Boss Job One:

The Talent Obsession.

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“When land was the scarce resource, nations battled

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

Stan Davis & Christopher Meyer, futureWEALTH

Page 158: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Historically, smart people have always turned to where the money was. Today, money is turning to

where the smart people are.” —FT/06.03.03

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Age of AgricultureIndustrial Age

Age of Information IntensificationAge of Creation Intensification

Source: Murikami Teruyasu, Nomura Research Institute

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Brand = Talent.

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The Talent Ten

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1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

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“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

Page 164: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division

for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent

Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed

Michaels

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2. Greatness

Only The Best!

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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

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3. Performance

Up or out!

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“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

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4. Pay

Pay Up!

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“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)

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5. Youth

Grovel Before the Young!

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“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]

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6. Diversity

Mess Rules!

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CM Prof Richard Florida on

“Creative Capital”: “You cannot get a technologically

innovative place unless it’s open to weirdness,

eccentricity and difference.”

Source: New York Times/06.01.2002

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7. Women

Born to Lead!

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

outshine their male counterparts in almost

every measure”Title, Special Report, BusinessWeek, 11.20.00

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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: Women Managers

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8. Weird

The Cracked Ones Let in the Light!

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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

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9. Opportunity

Make It an Adventure!

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“H.R.” to “H.E.D.” ???

Human

Enablement

Department

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Talent Department

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People Department

Center for Talent Excellence

Seriously Cool People Who Recruit & Develop Seriously Cool People

Etc.

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10. Leading Genius

We are all unique!

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Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

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Brand = Talent.

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Our Mission

To develop and manage talent;to apply that talent,

throughout the world, for the benefit of clients;to do so in partnership;

to do so with profit.

WPP

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14. Brand Talent+: Addressing the

Education Fiasco.

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“My education was a prolonged and concerted

attack on my individuality.” —Neil Crofts, Authentic

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Losing the War to Bismarck (and Rockefeller)

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J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect docility to our

molding hands. … The task is simple. We will organize children and teach

them in a perfect way the things their fathers and mothers are doing in an imperfect way.”

John Taylor Gatto, A Different Kind of Teacher

Page 192: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”Jordan Ayan, AHA!

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“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND

GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out

of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:

Every school I visited was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

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Ye gads: “Thomas Stanley has not only found no correlation between success in school and an

ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-

related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.

Yet the success-failure standards of most schools penalized risk takers. Most educational

systems reward those who play it safe. As a result, those who do well in school find it hard to

take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

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VIII. NEW BUSINESS: (NEW)

BRAND INSIDE RULES

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Brand Inside Rules!

“I came to see in my time at IBM that culture isn’t just one aspect of the

game—it is the game” —Lou

Gerstner, Who Says Elephants Can’t Dance?

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Brand Inside Rules!

“If I could have chosen not to tackle the IBM culture head-on, I probably

wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison,

changing the attitude and behaviors of hundreds of thousands of people is

very, very hard.” —Lou Gerstner, Who Says Elephants Can’t Dance?

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15. THINK WEIRD … the HVA/

High Value Added Bedrock.

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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 200: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

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

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“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President,

Bentley College

Page 202: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Generally, disruptive technologies underperform established

established products in mainstream markets. But they have

other features that a few fringe (and generally new) customers

value.”

Clayton Christensen, The Innovator’s Dilemma

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Ways to Raise a Purple Cow

Think small. One vestige of the TV-industrial complex is a need to think

mass. If it doesn’t appeal to everyone, the thinking goes, it’s not worth it. Think of the smallest conceivable

market—and describe a product that overwhelms it with remarkability. Go

from there.Source: Seth Godin, Fast Company (02.2003)

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“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative

and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is

taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice

president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist

thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is

Marketing Not Working?”

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The Fatal Assumption: “Analysis Produces Synthesis”

“Planning by its very nature defines and preserves categories. Creativity, by its very

nature, creates categories or rearranges established ones. ... The key is integration

rather than de-composition, based on holistic images rather than linear words.”

— Henry Mintzberg, The Rise and Fall of Strategic Planning

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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

Page 207: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“To grow, companies need to break out of a vicious

cycle of competitive benchmarking, imitation and

pursuit.” —W. Chan Kim & Renee Mauborgne,

“”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

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“The short road to ruin is to emulate

the methods of your adversary.”

— Winston Churchill

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“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at

what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Gameboy 14 years in a row)? It’s like trying to drive looking in the rearview mirror.

The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the

fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely

because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you

decide to do it.” —Seth Godin, Fast Company/02.2003

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Employees: “Are there enough weird

people in the lab these days?”

V. Chmn., pharmaceutical house, to a lab director (06.01)

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Boards: “Extremely contentious boards that regard dissent as an

obligation and that treat no subject as undiscussable” —Jeffrey

Sonnenfeld, Yale School of Management

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“The Bottleneck is at the Top of the Bottle”

“Where are you likely to find people with the least diversity of experience, the largest investment in the past, and

the greatest reverence for industry dogma?

At the top!”

— Gary Hamel, “Strategy or Revolution/ Harvard Business Review

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“Enormous sums of money are invested to reduce cycle time, improve quality,

reengineer … Much of this money is simply wasted. The waste is due to companies’

inability to develop wide-angle vision and tap into the … power of the edge.”

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

Competitors, Lost Customers, and Rogue Employees

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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) don’t 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) Don’t try to learn anything from people who seem to have solved the problems you face.

(11) Forget the past, particularly your company’s success.

Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

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Kevin Roberts’ Credo

1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!

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Deviants, Inc. “Deviance tells the story of every mass

market ever created. What starts out weird and dangerous

becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way

out there.”

Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

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“ ‘Giant’ projects contain within them the almost certain seeds of mediocrity. The very fact of their size causes constant

scrutiny and thence ‘political’ interference. Such ‘oversight’ drains the passion of the

champions and risks—to the point of certainty—fatal ‘dumbing down’ and

thence loss of the very distinction and quirkiness sought in the first place.”—

Exec, Hollywood

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Innovation Source No. 1*:

PPPs/Personally Pissed-off

People

“Branson started Virgin Atlantic because flying other airlines was

so dreadful.” —Fortune/05.13.2002

*And there is no No. 2!

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Bernie Goldhirsh: Sailing his passion, but sailing mags for

yachtsmen only … start Sail. Sail a biz success, but biz

mags for corporate types only

… start Inc.

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Big Idea/s

V.C. GM

PortfolioRoster

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Innovation Index: How many of your Top 5

Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity

Scale”?

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IX. NEW BUSINESS. NEW LEADERSHIP.

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16. The Passion

Imperative: The

Leadership50

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The Basic Premise.

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1. Leadership Is a …

Mutual Discovery Process.

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“Ninety percent of what we call ‘management’ consists of making it

difficult for people to get things done.” – P.D.

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“I don’t know.”

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Quests!

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Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a Great Group is to allow its members to

discover their greatness.”

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The Leadership

Types.

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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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25/8/53

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Whoops: Jack didn’t have a vision!

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T.A.: 3

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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

(+TP’s writing room pics)

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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. All Organizations

Need the Golden Leadership

Triangle.

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The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

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The Essential Tension

— Keeper of the Flame of Creation (Brahma = Creator) — Keeper of the Flame of Preservation (Vishnu = Preserver) — Keeper of the Flame of Destruction (Shiva = Destroyer)

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6. Leadership Mantra

#1: IT ALL DEPENDS!

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Renaissance Men are … a snare, a

myth, a delusion!

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

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The Leadership

Dance.

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8. Leaders …

SHOW UP!

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“The first and greatest imperative of command

is to be present in person. Those who

impose risk must be seen to share it.” —John

Keegan, The Mask of Command

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Rudy!

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9. Leaders … LOVE the

MESS!

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“I’m not comfortable unless

I’m uncomfortable.”—Jay Chiat

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“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

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10. 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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“We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher

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11. Leaders

Re-do.

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“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

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“If it works, it’s

obsolete.”

—Marshall McLuhan

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12. BUT … Leaders

Know When to Wait.

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Tex Schramm: The

“too hard” box!

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13. Leaders Are …

Optimists.

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Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

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Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

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14. Leaders …

DELIVER!

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“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

#49

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“It is no use saying ‘We are doing our best.’ You have got to succeed in doing

what is necessary.” —WSC

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15. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

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The “Gus Imperative”!

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16. Leaders

FOCUS!

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“To Don’t ” List

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It’s T-H-R-E-E, Stupid!

“I used to have a rule for myself that at any point in time I wanted to have in mind — as

it so happens, also in writing, on a little card I carried around with me — the three big

things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.”

— Richard Haass, The Power to Persuade

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17. Leaders …

Set CLEAR DESIGN SPECS.

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Danger: S.I.O. (Strategic

Initiative Overload)

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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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18. 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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If It Ain’t Broke … Break It.

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19. 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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Cortez!

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20. 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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21. Leaders …

HONOR THE USURPERS.

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Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

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22. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

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“Fail faster. Succeed sooner.”

David Kelley/IDEO

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23. Leaders Make …

BIG MISTAKES!

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“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Page 288: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Silicon Valley Success [Failure?] Secrets

“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money;

6 do okay; 3 do well; 1 hits the jackpot

Source: The Economist

Page 289: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Create.

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24. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

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No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

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“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

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25. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

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“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

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Legacy!

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“Management has a lot to do with answers. Leadership is a function of questions. And the

first question for a leader always is: ‘Who do we

intend to be?’ Not ‘What are we going to do?’ but ‘Who do

we intend to be?’” —Max DePree, Herman Miller

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CEO Assignment2002 (Bermuda):

“Please leap forward to 2007, 2012, or 2022, and write a business history of

Bermuda. What will have been said about your company during your

tenure?”

Page 298: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and

imagine me immediately doing something about what you’ve just said. What would it be?”

“Do you feel you have an obligation to ‘Make the world a

better place’?”

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26. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

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09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

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27. Leaders

LOVE the New Technology!

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100 square feet

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28. 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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Talent.

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29. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

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Talent’s Rules

1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people3. Think “Roster”4. Think “V.C.”5. Talent = Brand6. Talent is what leaders do.

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30. Leaders Don’t Create “Followers”:

THEY CREATE LEADERS!

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“I start with the premise that the

function of leadership is to produce more leaders, not more

followers.”—Ralph Nader

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31. Leaders “Win Followers Over”

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WHAT AN IDIOT: “Instead of employees being in the driver’s

seat, now we’re in the driver’s seat.”

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PJ: “Coaching is winning

players over.”

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Passion.

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32. Leaders …

Out Their

PASSION!

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G.H.: “Create a ‘cause,’ not a ‘business.’ ”

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33. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

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BZ: “I am a … Dispenser of Enthusiasm!”

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“Until there is commitment there is hesitancy, the chance to draw back. Concerning all acts of initiative and creation, there is one elementary truth, the ignorance of which kills countless

ideas and splendid plans: that the moment one definitely commits oneself, then providence

moves too. All sorts of things occur to help one that would never otherwise have occurred.

Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.

Begin it now!” —Johann Wolfgang von Goethe

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34. Leaders Are …

in a Hurry

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The Urgency Factor: LEADERS … have a distorted

sense of time. (E.g.:

Rummy thinks he asked months ago … it was the day before yesterday.)

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35. Leaders Focus on the

SOFT STUFF!

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“Soft” Is “Hard”

- ISOE

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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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“Ph.D. in leadership. Short course: Make a short list of all

things done to you that you abhorred. Don’t do them to

others. Ever. Make another list of things done to you that you

loved. Do them to others. Always.”

— Dee Hock

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The “Job” of Leading.

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36. 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.”) (See TP’s The Project50.)

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37. Leaders

LOVE “POLITICS.”

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TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

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38. But … Leaders Also

Break a Lot of China

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If you’re not pissing people off, you’re not making

a difference!

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39. 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

Page 334: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

Amen!

“What creates trust, in the end, is the leader’s

manifest respect for the followers.” — Jim O’Toole, Leading Change

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40. Leaders Say

“Thank You.”

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“The two most powerful things

in existence: a kind word and a thoughtful gesture.”

Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

Page 337: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“We look for ...

“... listening, caring, smiling, saying ‘Thank

you,’ being warm.”— Colleen Barrett, President, Southwest Airlines

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41. Leaders Are …

Curious.

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TP/08.2001: The Three Most Important Letters …

WHY?

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42. Leadership Is a …

Performance.

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“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

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43. Leaders … Are The Brand

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“You must be the change you

wish to see in the world.”

Gandhi

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44. 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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Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seely Brown

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Introspection.

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45. Leaders …

Enjoy Leading.

Page 349: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

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46. Leaders …

KNOW THEMSELVES.

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Individuals (would-be leaders) cannot engage in a

liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty

control freaks.)

Page 352: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

47. But … Leaders

have MENTORS.

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The Gospel According to TP: Upon having the Leadership

Mantle placed upon thine head, thou shalt never hear the unvarnished

truth again!* (*Therefore, thy needs one faithful

compatriot to lay it on with no jelly.)

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48. Leaders … Take Breaks.

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Zombie!Zombie!Zombie!Zombie!

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The End Game.

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49. Leaders ???

:

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“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a LEGACY

of EXCELLENCE.”

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“ ‘It’s only business, not personal’ … IT

ALWAYS IS PERSONAL.”

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

over again.”

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“LEADERS NEED TO BE THE ROCK OF

GIBRALTAR ON ROLLER BLADES”

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50. Leaders Know

WHEN TO LEAVE!

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“In Tom’s world it’s always better to try a

swan dive and deliver a

colossal belly flop than to step timidly off the

board while holding your nose.” —Fast Company /October2003

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The Re-imagineer’s Credo … or, Pity the Poor Brown*

Technicolor Times demand …Technicolor Leaders and Boards who recruit …

Technicolor People who are sent on …Technicolor Quests to execute …

Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …

Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …

Technicolor Times.

*WSC

Page 365: Tom Peters’   Re-Imagine! Business Excellence in a Disruptive Age Moscow/16February2004

“In Italy for 30 years under the Borgias they had warfare, terror, murder,

bloodshed—and produced Michelangelo, da Vinci and the

Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce

—the cuckoo clock.”

Orson Welles, as Harry Lime, in “The Third Man”