Slide 1: Business Excellence in a Disruptive Age Bentley Systems/Baltimore/09May2005 Re-Imagine! Tom Peters’
Slide 2: Slides at … tompeters.com
Slide 3: Re-imagine! Not Your Father’s World I.
Slide 4: 26m
Slide 5: 43h
Slide 6: 1 Houston/ Month* *1 NZ every 60 days?
Slide 7: 35/70
Slide 8: Re-imagine! Not Your Father’s World II.
Slide 9: “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only the constant pursuit of innovation can ensure longterm success.” —Daniel Muzyka, Dean, render them obsolete. Sauder School of Business, Univ of British Columbia (FT/09.17.04)
Slide 10: Nelson’s secret: “[Other] admirals more frightened of losing than anxious to win”
Slide 11: The General’s Story.
Slide 12: “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army
Slide 13: My Story.
Slide 14: “Best” is not Good enough!* *Suggests a linear measurement rod
Slide 15: “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
Slide 16: Everybody’s Story.
Slide 17: “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
Slide 18: “Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”: “managed asset reflation” textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004 (add to brand value of Thai
Slide 19: 1. Re-imagine: Innovate or Die!
Slide 20: 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
Slide 21: A380!
Slide 22: “Beware of the tyranny of making Small Changes to Small Things. Rather, make Changes to Things.” Big Big —Roger Enrico, former Chairman, PepsiCo
Slide 23: “To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” Competitors: —W. Chan Kim & Renée Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03
Slide 24: “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 NeimanMarcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 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 it’s 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
Slide 25: Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9. If it ain’t broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff. 10. Avoid moderation!
Slide 26: 2. Re-imagine Organizing: The White-Collar Tsunami and the Professional Service Firm (“PSF”) Imperative.
Slide 27: Sarah: “ Papa, what do you do?” Papa: “I’m ‘overhead.’ ”
Slide 28: Sarah: “ Papa, what do you do?” Papa: “I manage a ‘cost center.’ ”
Slide 29: Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc.
Slide 30: The “PSF35”: Thirty-Five Professional Service Firm Marks of Excellence
Slide 31: The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (Every Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”
Slide 32: “This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy.” —GB Shaw/ Man and Superman (from Mike Ray, The Highest Goal)
Slide 33: The PSF35: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?
Slide 34: The PSF35: The People & The Leadership 18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views
Slide 35: The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) 29. Excellence+ in EXECUTION … 100.00% of the Time (No such thing as a “small sins”/World Series Ring to the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEIL 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. Web (Technology) Obsession 34. BRAND/“LOVEMARK” MANIACS (Organize Around a Point of View Worth BROADCASTING: “You must be the change you wish to see in the world”—Gandhi) 35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as much a place at the Head Table in a “PSF” as in a widgets factory: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe”—Jack Welch)
Slide 36: Static/Imitative Integrity. Quality. Excellence. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation!
Slide 37: The Project 50* *See “Bentley.LONG”
Slide 38: 3. Re-imagine Business’ Fundamental Value Proposition: PSFs Unbound … Fighting “Inevitable Commoditization” via “The Solutions Imperative.”
Slide 39: “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
Slide 40: And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.” (BW) IBM Global Services: $55B
Slide 41: “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/07.19.2004
Slide 42: New York-Presbyterian: 7-year, $500M enterprisesystems consulting and equipment contract with GE Medical Systems Source: NYT/07.18.2004
Slide 43: 4. Re-imagine Enterprise as Theater: A World of Scintillating “Experiences.”
Slide 44: “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
Slide 45: 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
Slide 46: 2/503 Q04
Slide 47: The “Experience Ladder” Experiences Services Goods Raw Materials
Slide 48: 5. Re-imagine the “Soul” of New Value: Design Rules!
Slide 49: 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
Slide 50: DESIGN IS INEVITABLE! DESIGN IS THE DIFFERENCE! DESIGN RULES!
Slide 51: Better By Design: The Design49* *See “Bentley.LONG”
Slide 52: 5A. Re-imagine the Infrastructure of Enterprise: Design = “Beautiful” Systems.
Slide 53: 450/ 380/ 8
Slide 54: K.I.S.S.: Gordon Bell (VAX daddy): Chas. Wang (CA): Behind schedule? 500/50. Cut least productive 25%.
Slide 55: “Really Important Stuff”: Roger’s Rule of Three!
Slide 56: Lee’s Rule: Run It off a Blackberry!
Slide 57: First Steps: “Beauty Contest”! 1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days.
Slide 58: “Beautiful” “Aesthetic Triumph” “Breathtaking”
Slide 59: 6. Re-imagine Excellence: The Talent Obsession.
Slide 60: “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class
Slide 61: “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
Slide 62: Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” Myhrvold, former Chief Scientist, Microsoft —Nathan
Slide 63: Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director
Slide 64: Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make uswho-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of us—and our organizations—are in ruts. Make that chasms.)
Slide 65: 7. Re-imagine Leadership for Totally Screwed-Up Times: The Passion Imperative.
Slide 66: Start a Crusade!
Slide 67: “Create a ‘cause,’ not a ‘business.’ ” G.H.:
Slide 68: Make It a Grand Adventure!
Slide 69: we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “Ninety percent of what
Slide 70: “I don’t know.”
Slide 71: Quests!
Slide 72: 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.”
Slide 73: Yes!!!!!!!!!!!!!!!!! “free to do his or her absolute best” … “allow its members to discover their greatness.”
Slide 74: “Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead
Slide 75: Lead the Action Faction!
Slide 76: “We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher
Slide 77: He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd
Slide 78: Dispense Enthusiasm!
Slide 79: Dispenser of Enthusiasm!” BZ: “I am a …
Slide 80: 8. Free the Lunatic Within!
Slide 81: The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
Slide 82: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch