Tom Peters
Rollercoaster Days:
Learning to …
Rock & Roll!
SHOPA/Chicago/6.26.2001
“There will be more
confusion in the business
world in the next decade
than in any decade in history.
And the current pace of change
will only accelerate.”
Steve Case
White Water
ahead. Forever.
Message 1:
Part I: Brand Inside
Part II: Brand Outside
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
White
Collar
Revolution!
New World of Work
< 1 in 10 F500
#1: Manpower Inc.
Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55M
Source: Daniel Pink, Free Agent Nation
Prepare for
a New World of
Work!
Message 2:
11 September 2000
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
[“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
HP … Sun … GE … IBM
… UPS … UTC …
General Mills … Springs
… Anheuser-Busch …
Carpet One … Etc. … Etc.
Textile Co.
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Design.
Systems & Site mgt.
= Turnkey.
“ ‘Architecture’ is
becoming a commodity.
Winners will be ‘Turnkey
Facilities Management’
providers.”
SMPS Exec
Head (Way)
Up the V.A. Chain!
Message 3:
The Raw Material …
The WOW
Project!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
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
Message 4:
WOW Now
… or Die!
Brand Inside
Brand Talent: The
Great War for Talent
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia-Pacific
profitability from $25 million to $80 million in 2
years.”
Ed Michaels, War for Talent (05.17.00)
Message 5: Some
people
are better than other
people. Some people
are a helluva lot
better than other
people.
So-so plant manager, $1M
per year. Pay: $110,000 plus
$60,000. Top plant manager,
$3-4M per year. Pay:
$135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for
Talent, re Georgia-Pacific
What gets
measured gets done.
What gets paid for gets
done more. What
gets paid a lot for gets
done a lot more.
Message 6:
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
“Corporate consciousness is
predictably centered around the
mainstream. The best customers,
biggest competitors, and model
employees are almost invariably the
focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the Competition
by Focusing on Fringe Competitors, Lost Customers,
and Rogue Employees
Are You
(& Yours) Weird
Enough?
Message 7:
Part I: Brand Inside
Part II: Brand Outside
“While everything may
be better, it
is also
increasingly the
same.”
Paul Goldberger on retail, “The Sameness of
Things,” The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Message 8:
Same-same
Kills!
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
Cisco!
90% of $20B (=$50M/day)
Annual savings in service
and support from customer
self-management: $550M
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(20,000 per day)
Parts Inventory: 2
hours, 100
square feet. (Overall, 5 days vs.
50 to 90 days; target is 2.5 days)
WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
Survivors will
move all their operations
to the Web. Now. Web =
Message 9:
Encompassing … or else.
Message 10/ Message 2001:
Only idiots pull in
their [investment] horns
during a
downturn.
Brand Outside
Strategy 2:
Global is for
Everyone!
THE SIX
“RULES”
Rule #1
There’s no such
thing as “too small to
be global.”
Rule #2
If “it” is [truly] good
… then it’s good
enough for …
THE WORLD.
Rule #3
Glom onto a
[modest-sized]
partner … who
loves/ “gets” you!
Rule #4
Tailor!! [But don’t give
away the store.]
Rule #5
Phil Crosby
notwithstanding,
you’ll not [likely] “get
it right the first time”!
Message 11 & Rule # 6:
Now.
When?
Brand Outside
Strategy 3:
Design Matters!
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
Design “is” … WHY I
GET MAD.
MAD.
Wanted: Dead
[preferably] or Alive:
THE DESIGNER OF
MY RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and hate!
Hypothesis:
“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
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Design
matters. Design is a
State of Mind!
Message 12:
Brand Outside
Strategy 4:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre
& Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based
Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message 13:
“Experience”
“Last
80%”
is the
HP Revisited
PWC Consultants lead Business
Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service
Economy”)
Terrific Servers (“Goods Economy”)
Brand Outside
Strategy 4A:
A Case in Point: The
Four Seasons
Chicago
Why I Stay at the
Four Seasons Chicago
Comfort.
good to be home.”)
(“It’s
Why I Stay at the
Four Seasons Chicago
The doorman. (Recognizes
me.)
Why I Stay at the
Four Seasons Chicago
The fact that the GM
always puts his desk
chair in my room when
I’m in town.
Why I Stay at the
Four Seasons Chicago
The flashlight with the
tape that says “Tom
Peters’ Flashlight”
Why I Stay at the
Four Seasons Chicago
Chalone
chardonnay they leave
The bottle of
for me. (They “remember.”)
Why I Stay at the
Four Seasons Chicago
No hairs in the
bathtub. (Operational
excellence.)
Why I Stay at the
Four Seasons Chicago
The Brand.
(I trust Izzy.)
High tech is
cool. So is High
Touch!
Message 14:
Brand Outside
Strategy 5:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are
wrong. The task is much bigger. It is about fulfilling our
potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT
DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER
THE WORLD IS ACTUALLY UNIQUE? The brand
has to give of itself, the company has to give of
itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not –
you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
Brand = You Must Care!
“Success means never
letting the competition
define you. Instead you have
to define yourself based on a
point of view you care deeply
about.”
Tom Chappell, Tom’s of Maine
1st Law Mktg Physics: OVERT BENEFIT
(Focus: 1 or 2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE
(Stand & Deliver!)
3RD Law: DRAMATIC DIFFERENCE
(Execs Don’t Get It: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions
“How likely are you to purchase
this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product
or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall,
Jump Start Your Business Brain
“Brand Promise” Exercise: (1) Who
Are WE? (poem/novella/song, then 25 words.)
(2) List three ways in which we are
UNIQUE … to our Clients. (3) Who
are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them”
differences. (5) Try “results” on
your teammates. (6) Try ’em on a
friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“EXACTLY
HOW ARE WE
DRAMATICLY
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DIFFERENCE TO THE
CLIENT ”
“WHO
ARE WE?”
Message 15: