HRmaster Tom Peters/HR.com/10.26.2004 Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age HR.com/Phoenix/26October2004 Slides at … tompeters.com Re-imagine! Summer 2004: Not Your Father’s World I. International Herald Tribune p.1/600 foreign R&D labs in China, 200 new per year /09.13.2004: 60,000* *New factories in China opened by foreigners/2000-2003/ Edward Gresser, Progressive Policy Institute/Wall Street Journal 09.27.04 “Reuters Plans To Triple Jobs at Site In India” —Headline/ New York Times/ World Business/10.08.04/ 10% of total workforce in Bangalore by 2006 Level 5 (top) ranking/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04 Re-imagine! Summer 2004: Not Your Father’s World II. “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) “We’re now entering a new phase of business where the group will be a franchising and management company where brand management is central.” —David Webster, Chairman, InterContinental Hotels Group “InterContinental will now have far more to do with brand ownership than hotel ownership.” —James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance My Story. A Coherent Story: Context-Solution-Bedrock Context1: Intense Pressures (China/Tech/Competition) Context2: Painful/Pitiful Adjustment (Slow, Incremental, Mergers) Solution1: New Organization (Technology, Web+ Revolution, Virtual-“BestSourcing,”“PSF” “nugget”) Solution2: No Option: Value-added Strategy (ServicesSolutions-Experiences-DreamFulfillment “Ladder”) Solution3: “Aesthetic” “VA” Capstone Solution4: New Markets (Women, ThirdAge) (Design-Brands) Bedrock1: Innovation (New Work, Speed, Weird, Revolution) Bedrock2: Talent (Best, Creative, Entrepreneurial, Schools) Bedrock3: Leadership (Passion, Bravado, Energy, Speed) 1. Re-imagine Everything: All Bets Are Off. Jobs New Technology Globalization Security “Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04 “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 “Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok Fashion City”/ “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/03.04.2004 E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in years. Source: BW (01.28.02) “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) “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 2. Re-imagine Permanence: The Emperor Has No Clothes! 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 “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 3. Re-imagine Organizing I: IS/IT Leads the (Virtual) Way! Productivity! McKesson 2002-2003: Revenue … +$7B Employees … +500 Source: USA Today/06.14.04 “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G. Ford: “Vehicle brand owner” (“design, engineer, and market, but not actually make”) Source: The Company, John Micklethwait & Adrian Wooldridge 07.04/TP In Nagano … Revenue: $10B FTE: 1* *Maybe Not “out sourcing” Not “off shoring” Not “near shoring” Not “in sourcing” but … “Best Sourcing” 4. Re-imagine the Organizing II: The Professional Service Firm (“PSF”) Imperative. Sarah: Papa: “ Papa, what do you do?” “I’m ‘overhead.’ ” Sarah: Papa: “ Daddy, what do you do?” “I manage a ‘cost center.’ ” Sarah: “ Daddy, what do you do?” “I’m a ‘bureaucrat.’ ” Papa: Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, Finance [IS, etc.] Inc. “Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more We pay for ourselves, and we actually make money for the company.” —Frank Eichorn, than that. Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com) Eichorning Mantra: “Eichorn it!” Eichorning Mantra: “We’re Eichorning” 5. Re-imagine Business’ Basic Value Proposition: PSFs Unbound/ The “Solutions Imperative.” “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 And the “M” Stands for … ? “Systems Integrator of choice.” IBM Global Services: $35B Gerstner’s IBM: (BW) New York-Presbyterian: 7-year, $500M consulting (systemic) and equipment contract with GE Medical Systems Source: NYT/07.18.2004 “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/07.19.2004 6. Re-imagine Enterprise as Theater I: A World of Scintillating “Experiences.” “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 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 WHAT CAN BROWN DO FOR YOU? The “Experience Ladder” Experiences Services Goods Raw Materials “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.] 7. Re-imagine Enterprise as Theater II: Embracing the “Dream Business.” DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based We stand facing the fifth kind of society: the Dream Society. society whose icon is the computer. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business Experience Ladder/TP Dreams Come True Awesome Experiences Solutions Services Goods Raw Materials Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business Six Market Profiles 1. Adventures for Sale/IBM 2. The Market for Togetherness, Friendship and Love/IBM 3. The Market for Care/IBM 4. The Who-Am-I Market/IBM 5. The Market for Peace of Mind/IBM 6. The Market for Convictions/IBM Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business ’70s: Cost (BCG’s “cost curves”) ’80s: TQM-CI (Japan) ’90s: Service ’00s: Solutions/Experiences ’10s: Dream Fulfillment 8. Re-imagine the “Soul” of Enterprise: Design Rules! 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 “Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function.” — Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness 9. Re-imagine the Fundamental Selling Proposition: “It” all adds up to … THE BRAND (THE STORY). “WHO ARE WE?” “WHAT’S OUR STORY?” “WHAT’S THE DREAM?” “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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others. that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies Story > Brand 10. Re-imagine the Roots of Innovation: THINK WEIRD … the High Value Added Bedrock. FLASH: Innovation is easy ! Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees “To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & René Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03 “How do dominant companies lose there position? Two-thirds of the time, they pick the wrong competitor to worry about.” —Don Listwin, CEO, Openwave Systems/WSJ/06.01.2004 (commenting on Nokia) Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears … Kmart Xerox …. Kodak, IBM “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 Game Boy 14 years in a row)? It’s like trying to drive looking in the 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 rearview mirror. 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 “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 Innovation! NOT Imitation Measure “Strangeness”/Portfolio Quality Staff Consultants Board Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT HQ Location Lunch Mates Language 11. Re-imagine the Customer I: Trends Worth Trillion$$$ … Women Roar. ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women) 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1. 12. Re-imagine the Customer II: Trends Worth Boomer Bonanza/ Godzilla Geezer. Trillion$$$ … 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) “The New Customer Majority [age 44-65] is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing “Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher, American Demographics Bonus. The Hunch of a Lifetime: An Emergent (Market) Nexus I have a sense/hunch there’s an interesting nexus among several of the ideas about New Market Realities that I promote … namely Women-Boomers-WellnessGreen-Intangibles. Each one drives the Fundamental (Traditional) Economic Value Proposition toward the “softer side”: From facts- & figures-obsessed males toward relationship-oriented Women. From goods-driven youth toward “experiences”-craving Boomers. From quick-fix & pill-popping “healthcare” toward a holistically inclined “Wellness Revolution.” From mindless exploitation of the Earth’s resources toward increased awareness of the fragility and preciousness of our Environment. From “goods” and “services” toward Design& Creativity-rich Intangibles-Experiences-Dreams Fulfilled. This so-called “softer side”—as the disparate likes of IBM’s Sam Palmisano and Harley-Davidson’s Rich Teerlink teach us—is now & increasingly “where the loot is,” damn near all the loot. That is, the “softer side” has become the Prime Driver of tomorrow’s “hard” economic value. Furthermore, each of the Five Key Ideas (Women-BoomersWellness-Green-Intangibles) feeds off and complements the other four. Dare I use the word “synergy”? Perhaps. (Or: Of course!) I can imagine an enterprise defining its raison d’etre in terms of these Five Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.) An Emergent Nexus Men …………………………….……………….... Women Youth ………………………………… Boomers/Geezers “Fix It”Healthcare………………... Wellness/Prevention Exploit-the-Earth ……...... Preserve/Cherish the Planet Tangibles ……………………………………… Intangibles 13. Re-imagine Excellence I: The Talent Obsession. Brand = Talent. Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind 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 “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 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.” —Nathan Myhrvold, former Chief Scientist, Microsoft 14. Re-imagine Excellence II: Meet the New Boss … Women Rule! “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/BusinessWeek 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 15. Re-imagine Excellence III: New Education for A New World “My wife and I went to a [kindergarten] parentteacher 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! 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 schoolrelated 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 16. Re-imagine Leadership for Totally Screwed-Up Times: The Passion Imperative. Start a Crusade! “Create a ‘cause,’ not a ‘business.’ ” G.H.: “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo Make It a Grand Adventure! “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “I don’t know.” Quests! 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.” Yes!!!!!!!!!!!!!!!!! “free to do his or her absolute best” … “allow its members to discover their greatness.” “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack) Dispense Enthusiasm! BZ: “I am a … Dispenser of Enthusiasm!” “You must be the change you wish to see in the world.” Gandhi New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press “The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.” Approximately 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0. “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch Importance of Success Factors by Various “Gurus”/Estimates by Tom Peters Strategy Systems Passion Execution Porter 50% 20 15 15 Drucker 35% 30 15 20 Bennis 25% 20 30 25 Peters 15% 20 35 30 “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 Re-imagine Leadership for Totally Screwed-Up Times: The Passion Imperative. Start a Crusade! “Create a ‘cause,’ not a ‘business.’ ” G.H.: “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership Make It a Grand Adventure! “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “I don’t know.” Quests! 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.” Yes!!!!!!!!!!!!!!!!! “free to do his or her absolute best” … “allow its members to discover their greatness.” Insist on Speed & Excellence! 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!) “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack) Dispense Enthusiasm! BZ: “I am a … Dispenser of Enthusiasm!” “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “You must be the change you wish to see in the world.” Gandhi New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) 15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002 Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press “The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.” Approximately 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0. New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.] New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week” Source: New York Times on Meg Whitman/eBay New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) Have you changed civilization today? Source: HP banner ad New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) “When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in Execution New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch Importance of Success Factors by Various “Gurus”/Estimates by Tom Peters Strategy Systems Passion Execution Porter 50% 20 15 15 Drucker 35% 30 15 20 Bennis 25% 20 30 25 Peters 15% 20 35 30 “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 Creativity: Short Takes Tom Peters/10.26.2004 Work Stats Formulaic intelligence (health record clerks, 63%/36K; secretaries & typists, 30%/1.3M; bookkeepers, 13%/247K) Manual dexterity (sewing machine ops, 50%/347K; lathe ops, 49%/30K; butchers, 23%/67K) Muscle power (timber cutters, 32%/25K; farm workers, 20%/182K) Source: “Where the Jobs Are”/NYT/05.13.2004/data 1994-2004 + People skills & emotional intelligence (financial service sales, 78%/248K; RNs, 28%/512K; lawyers, 24%/182K) Imagination & creativity (architects, 44%/60K; designers, 43%/230K; photographers, 38%/50K) Analytic reasoning (legal assts, 66%/159K; electronic engs, 28%/147K) Source: “Where the Jobs Are”/NYT/05.13.2004/data 1994-2004 “Over the past decade the biggest employment gains came in occupations that rely on people skills and emotional intelligence ... and among jobs that require imagination and creativity. … Trying to preserve existing jobs will prove futile—trade and technology will transform the economy whether we like it or not. Americans will be better off if they strive to move up the hierarchy of human talents. That’s where our future lies.” —Michael Cox, Richard Alm and Nigel Holmes/“Where the Jobs Are”/NYT/05.13.2004 Frameworks Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind “The Dawn of the Creative Age” “There’s a whole new class of workers in the U.S. that’s 38million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion)—almost as much as the manufacturing and service sectors together. Indeed, the United States has now entered what I call the Creative Age.” —“America’s Looming Creativity Crisis”/ Richard Florida/ HBR/10.04 TP’s “New World of Work”/Circa 1995 Context: White-collar Bloodbath Work: WOW Projects! Individual: Brand You Org: PSF (Professional Service Firm) “Model” Stuff “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH “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 Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/12.2002-01.2003 Schools: K-MBA “Our education system is a second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are simply not connected to the future of the kids they’re responsible for.” Alvin Toffler, Business 2.0 “The main crisis in school today is irrelevance.” —Daniel Pink, Free Agent Nation “My wife and I went to a [kindergarten] parentteacher 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! “How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass 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 Every school I visited was was participating in the suppression of creative genius.” identified by the group as a ‘closet artist.’ The point is: Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace 15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002 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 schoolrelated 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 Richard Florida “The global talent pool and the high-end, high margin creative industries that used to be the sole province of the U.S., and a critical source of its prosperity, have begun to disperse around the globe. A host of countries—Ireland, Finland, Canada, Australia, New Zealand, among them—are investing in higher education, cultivating creative people, and churning out stellar products, from Nokia phones to the Lord of the Rings movies.. Many of these countries have learned from past U.S. success and are shoring up efforts to attract foreign talent—including Americans. … The United States may well be the Goliath of the twentieth century global economy, but it will take just half a dozen twentyfirst-century Davids to begin to wear it down. To stay innovative, America must continue to attract the world’s sharpest minds. And to do that, it needs to invest in the further development of its creative sector. Because wherever creativity goes—and, by extension, wherever talent goes—innovation and economic growth are sure to follow.” —“America’s Looming Creativity Crisis”/Richard Florida/HBR/10.04 “The Dawn of the Creative Age” “There’s a whole new class of workers in the U.S. that’s 38million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion)—almost as much as the manufacturing and service sectors together. Indeed, the United States has now entered what I call the Creative Age.” —“America’s Looming Creativity Crisis”/ Richard Florida/ HBR/10.04 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 Dan Pink “The era of ‘left brain’ dominance—and the Information Age it engendered— Is giving way to a new world in which ‘right brain’ qualities— inventiveness, empathy, meaning—will govern.” —Dan Pink, A Whole New Mind “The past few decades have belonged to a certain kind of person with a certain kind of mind—computer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers. These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its greatest joys.” —Dan Pink, A Whole New Mind L-Directed Thinking: sequential, literal, functional, textual, analytic to R-Directed Thinking: simultaneous, metaphorical, aesthetic, contextual, synthetic Source: Dan Pink/A Whole New Mind “Left-brain style thinking used to be the driver, and right-brain style thinking the passenger. Now R-Directed Thinking is suddenly grabbing the wheel, stepping on the gas, and determining where we’re going and how we’re going to get there. LDirected aptitudes—the kind measured by the SAT and employed by CPAs—are still necessary. But they’re no longer sufficient.” —Dan Pink, A Whole New Mind The Big Three Drivers of Change Abundance Asia Automation Source” Dan Pink, A Whole New Mind “But abundance has also produced an ironic result: The very triumph of LDirected Thinking has lessened its significance. The prosperity it has unleashed has placed a premium on things that appeal to less rational, more R-Directed sensibilities—beauty, spirituality, emotion.” —Dan Pink, A Whole New Mind India 350,000 engineering grads per year >50% F500 outsource software work to India GE: 48% of software developed in India (Sign in GE India office: “Trespassers will be recruited”) Source: Dan Pink, A Whole New Mind Software’s Enormous Inroads Docs Lawyers Accountants Source: Dan Pink, A Whole New Mind Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind “The MFA is the new MBA.” —Dan Pink, A Whole New Mind “What does this mean for you and me? How can we prepare for the conceptual age? On one level, the answer is straightforward. In a world tossed by Abundance, Asia and Automation, in a which L-Directed Thinking remains necessary but no longer sufficient, we must become proficient in R-Directed Thinking and master aptitudes that are ‘high concept’ and ‘high touch.’ But on another level, that answer is inadequate. What exactly are we supposed to do?” —Dan Pink, A Whole New Mind Design. Story. Symphony. Empathy. Play. Source: Dan Pink, A Whole New Mind Not just function, but also … DESIGN. Not just argument, but also … STORY. Not just focus, but also … SYMPHONY. Not just logic, but also … EMPATHY. Not just seriousness, but also … PLAY. Source: Dan Pink, A Whole New Mind New Economy. New Biz Degrees. Tom Peters/10.23.2004 New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MBA “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 “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “Never mind your happiness; do your duty.” —Peter Drucker (BrainyQuote.com) Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press “The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.” Approximately 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy I’m sure there are success stories out there, but at this moment I draw a blank.” Committee, answered: Mark Sirower, The Synergy Trap 15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002 “There is little evidence that mastery of the knowledge acquired in business schools enhances people’s careers, or that even attaining the MBA credential itself has much effect on graduates’ salaries or career attainment.” —Jeffrey Pfeffer (tenured professor, Stanford GSB/2004) New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MFA (Master of Fine Arts) “The past few decades have belonged to a certain kind of person with a certain kind of mind—computer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers. These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its greatest joys.” —Dan Pink, A Whole New Mind Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind “The MFA is the new MBA.” —Dan Pink, A Whole New Mind “Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function.” — Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness 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 “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 New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MMM 1 (Master of Metaphysical Management) “We’re now entering a new phase of business where the group will be a franchising and management company where brand management is central.” —David Webster, Chairman, InterContinental Hotels Group “InterContinental will now have far more to do with brand ownership than hotel ownership.” —James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance Ford: “Vehicle brand owner” (“design, engineer, and market, but not actually make”) Source: The Company, John Micklethwait & Adrian Wooldridge “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 “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 “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 “With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of all that is good and bad about the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness 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 “I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Bob Lutz: Source: NYT 10.19.01 WHAT CAN BROWN DO FOR YOU? “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report 2003 DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions “The Ritz-Carlton experience enlivens the senses, instills wellbeing, and fulfills even the unexpressed wishes and needs of our guests.” — from the Ritz-Carlton Credo “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.] “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging society whose icon is the computer. this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business “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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others. that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies Market Power = Story Power Brand = Story Story > Brand New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MMM /MM 2 (Master of Metabolic Management/Master of Madness) “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. “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 “We are in a brawl with no rules.” Paul Allaire “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 “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week” Source: New York Times on Meg Whitman/eBay “Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G. “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy 07.04/TP In Nagano … Revenue: $10B FTE: 1* *Maybe “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 Fail. Forward. Fast. –High-tech Exec “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat “If things seem under control, you’re just not going fast enough.” Mario Andretti “Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.”/ “Arrange the mind of the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a bee.”—Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “Maneuverists” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “If it works, it’s obsolete.” —Marshall McLuhan New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MGLF (Master of Great Leaps Forward) “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) 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 BUILT TO … DETERIORATE! “When it comes to investing, I am old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. There’s only one problem. When I checked the drawer recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy. Today, it no longer makes sense.”—Charles Stein/ “Investment Strategies Must Shift with Realities”/Boston Globe/10.10.04 A sample of Stein’s “Blue Chip-turned-clunker” examples: Fannie Mae (featured in Collins’ Good to Great). Coke. (“Clunker,” make that “Stinker.”) Merck. (The mightiest fall—stock down 63 percent since 2000; tumble preceded Vioxx) Uh … Microsoft. (“Microsoft’s stock price is no higher today than it was in 1998.”) “It is not clear there is such a thing as a ‘Blue Chip,’” Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. “Kravetz’s point is a serious one,” Stein continues. “Greatness is not permanent. … This process of creative destruction isn’t new. But with the world moving ever faster, and with competition on steroids, the quaint notion of buying and holding is hopelessly out of step.” “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte 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 Just Say No … “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company “To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & René Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03 “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo “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 Game Boy 14 years in a row)? It’s like trying to drive looking in the 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 rearview mirror. 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 “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 Re-imagine General Electric “Welch was to a large degree a growth by acquisition man. ‘In the late ’90s,’ Immelt says, ‘we became business traders, not business growers. Today organic growth is absolutely the biggest task of everyone of our companies. If we don’t hit our organic growth targets, people are not going to get paid.’ … Immelt has staked GE’s future growth on the force that guided the company at it’s birth and for much of its history: breathtaking, mind-blowing, world-rattling technological innovation.” —“GE Sees the Light”/Business 2.0/July 2004 “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters Bottom line: No promotion to senior levels of public or private enterprise should ever again be granted to anyone who does not present a CV saturated by a clear and compelling demonstration of sustained commitment to Radical Change. Do we wish for “good strategists”? Why not! But the heart of the matter goes far beyond any plan, no matter how brilliant. The heart of the matter is Heart & Will ... a record of upsetting apple carts, dislodging “establishments,” and fundamentally altering deep-rooted “cultures” to embrace change of the most primal sort. I titled my most recent book Re-imagine! Business Excellence in a Disruptive Age. “Excellence” in a “disruptive age” is not excellence amidst placid waters. The notion of excellence itself changes ... dramatically. We need our public and private Churchills, leaders who can re-imagine, who can call forth wellsprings of daring and guts and spirit and spunk, from one and all, to topple the way things may have been for many generations—and who inspire us to venture forth into today’s and tomorrow’s whitewaters with insouciance and bravado and determination. 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! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec They say “Improve.” I say “Re-imagine!” New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) MTD (Master of Talent Development) Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind Brand = Talent. “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 PARC’s Bob Taylor: “Connoisseur of Talent” 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 “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 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.” —Nathan Myhrvold, former Chief Scientist, Microsoft “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) 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 “H.R.” to “H.E.D.” ??? Human Enablement Department “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” Tim Hall et al., “The New Protean Career Contract” Quests! 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.” 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 “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/BusinessWeek 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 “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 New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) GGWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) 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!) “When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in Execution “We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.” “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000. 1. Every morning, write a list of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR “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 “A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender “My education was a prolonged and concerted attack on my individuality.” —Neil Crofts, Authentic 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 schoolrelated 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 “Leaders don’t ‘want to’ win. Leaders ‘need to’ win.” #49 New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) DE! (Doctor of Enthusiasm) (!) Hackneyed but none the less LEADERS SEE CUPS AS “HALF FULL.” true: “[Ronald Reagan] radiated an almost transcendent happiness.” Half-full Cups: Lou Cannon, George (08.2000) “I’m not sure about his politics, but that’s not what made him great. He inspired people. He made us all feel better about ourselves.” —bystander, California, during RR funeral “A leader is a dealer in hope.” Napoleon (+TP’s writing room pics) USN&WR/What traits do successful activists share? “They have hope, and they imbue others with hope.” Studs Terkel, age 91: BZ: “I am a … Dispenser of Enthusiasm!” “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “The leader must have infectious optimism. … The final test of a leader is the feeling you have when you leave his presence after a conference. Have you a feeling of uplift and confidence?” —Field Marshall Bernard Montgomery “Make it fun to work at your agency. … Encourage exuberance. Get rid of sad dogs who spread gloom.” —David Ogilvy “Astonish me!” / S.D. “Build something great!” / H.Y. “Immortal!” / D.O. “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 “If you ask me what I have come to do in this world, I who am an artist, I will reply: I am here to live my life out loud.” — Émile Zola “You can’t lead a cavalry charge if you think you look funny on a horse.” —John Peers, President, Logical Machine Corporation Have you changed civilization today? Source: HP banner ad Importance of Success Factors by Various “Gurus”/Estimates by Tom Peters Strategy Systems Passion Execution Porter 50% 20 15 15 Drucker 35% 30 15 20 Bennis 25% 20 30 25 Peters 15% 20 35 30 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 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! Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune/10.03 “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch “Dream as if you’ll live forever. Live as if you’ll die today.” —James Dean New Economy Biz Degree Programs MBA (Master of Business Administration) MFA (Master of Fine Arts) MMM1 (Master of Metaphysical Management) MMM2/MM (Master of Metabolic Management, or Master of Madness) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm) Tom Peters’ The Talent50 The Talent50 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added. 4. Talent “excellence” in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is “cool.” The Talent50 8. Re-name “HR.” (Talent Department, Center of Talent Excellence) 9. There’s an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a “world class” Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The “Top100,” and every unit’s Top10, are consciously managed. The Talent50 15. “People/Talent Reviews” are the FIRST reviews. 16. HR Strategy = Business Strategy. 17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay! The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% “business people.” 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual. The Talent50 33. Places of “grace.” 34. MBWA: The “Rudy Rule.” 35. Thank You! 36. Promote for “people skills.” (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring. The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses “win people over.” 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm! The Talent50 50. Talent = Brand. Tom Peters’ The Talent50 02.20.2003 1. People First! “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH Talent! Tina Brown: “The first thing to do is to hire enough talent that a critical mass of excitement starts to grow.” Source: Business2.0/12.2002-01.2003 Whoops: Jack didn’t have a vision!* *GE = “Talent Machine” (Ed Michaels) 2. Soft Is Hard. “Soft” Is “Hard” - ISOE 3. FUNDAMENTAL PREMISE: We Are in an Age of Talent/ Creativity/ Intellectual-capital Added. Age of Agriculture Industrial Age Age of Information Intensification Age of Creation Intensification Source: Murikami Teruyasu, Nomura Research Institute 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 WHAT CAN BROWN DO FOR YOU? 4. Talent “Excellence” in Every Part of the Organization. 5. P.O.T./ Pursuit Of Talent = OBSESSION. Model 25/8/53 Sports Franchise GM* *48 = $500M “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 PARC’s Bob Taylor: “Connoisseur of Talent” Les Wexner: From sweaters to people! 6. Talent Masters Understand Talent’s Intangibles. Visibly energetic/ Passionate/ Enthusiastic … about everything. Engaging/ Inspires others. (Inspires the interviewer!) Loves messes & pressure. Impatient/ Action fanatic. A finisher. Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about her work.) Smart. Curious/ Eclectic interests/ A little (or more) weird. Well-developed sense of humor/ Fun to be around. ****** No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while working with X?” / “How has the department/team grown on a ‘world-class’ scale during X’s tenure?”) 7. HR Is “Cool.” Chicago November 1999: HRMAC “support function” / “cost center” / “bureaucratic drag” or … Are you “Rock Stars of the Age of Talent” Have you changed civilization today? Source: HP banner ad 8. HR Sits at The Head Table. DD$21M 9. Re-name “HR.” Talent Department People Department Center for Talent Excellence Seriously Cool People Who Recruit & Develop Seriously Cool People Etc. 10. There Is an “HR Strategy.” 11. There Is a FORMAL Recruitment Strategy. The NFL Standard! 12. There Is a FORMAL Leadership Development Strategy. 13. There is a “World Class” Leadership Development CENTER. DD: 0 to 60 in a flash (months) 14. There Is a FORMAL STRATEGIC HR Review Process. 15. The “Top100,” and Every Unit’s Top10, Are Consciously Managed. “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 16. “People”/ Talent” Reviews Are the FIRST Reviews. 17. HR Strategy = Business Strategy. 18. Make it a “Cause Worth Signing Up For.” “Create a ‘cause,’ not a ‘business.’ ” G.H.: Leaders don’t just make products and make decisions. Leaders make meaning. – John Seeley Brown 19. Set Sky High Standards. 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 20. Enlist Everyone in Challenge Century21. “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 108 X 5 vs. 8X1 = 540 vs. 8 (-98.5%) IBM’s Project eLiza!* * “Self-bootstrapping”/ “Artilects” E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in years. Source: BW (01.28.02) BW Cover/02.2003 “IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Research—even Financial Analysis. Can America Lose These Jobs and Still Prosper?” 21. Pursue the Best! “Differentiation is all about being extreme, rewarding the best and weeding out the ineffective. … You build strong teams by treating individuals differently. Just look at the way baseball teams pay 20game winning pitchers and 40-plus homerun hitters.”—Jack Welch “best person in the world” —Arthur Blank 22. Up or Out. “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 Message: Some people are better than other people. Some people are a helluva lot better than other people. 23. Ensure that the Review Process Has INTEGRITY. 25 = 100* * “But what do I do that’s more important than developing people? I don’t do the damn work. They do.” 24. Fork Over! “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) 25. Training I: Train! Train! Train! 3 Weeks in May “Training” & Prep: 187 “Work”: 41 (“Other”: 17) 1% vs. 367% Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why don’t businesspeople do it? “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) Edward Jones’ Training Machine* 146 hours/employee/year New hires: 4X avg. 3.8% of payroll * #1, “The 100 Best Companies To Work For”/Fortune/01.2003 26. Training II: 100% “Business People.” 27. Training III: 100% LEADERS. “I start with the premise that the function of leadership is to produce more leaders, not more followers.”—Ralph Nader Brand You, Big Time! I AM AN ARMY OF ONE 28. Training IV: Boss as Trainerin-Chief. Workout = 24 DPY in the Classroom 29. Open Communication I: NO BARRIERS. “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 & Rene Tissen, Zero Space: Moving Beyond Organization Limits. “Dawn Meyerreicks, CTO of the Defense Intelligence 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 30. Open Communication II: Share (ALL) Information. m-“On” or Out of the Loop “Managers in Finland always keep their phones on. Customers expect fast reactions. And if you can’t reach a superior, you make many decisions yourself—managers who want to influence decisions of subordinates must keep their phones open.” —Risto Linturi, Finnish m-guru, in Howard Rheingold’s Smart Mobs 31. Respect! “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 “Leaders are living individuals whom employees smell, feel, touch their presence.” #49 32. Embrace the Whole Individual. 33. Build Places of “Grace.” “My favorite word is grace – grace, saving grace, grace under fire, Grace Kelly. How we live whether it’s amazing contributes to beauty – whether it’s how we treat other people or the environment.” Celeste Cooper, designer Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness .. benevolence … benefaction … compassion … beauty 34. MBWA: The “Rudy Rule.” “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 Masks of Command 35. Thank You! “The deepest human need to be appreciated.” need is the William James “The two most powerful things a kind word and a thoughtful gesture.” in existence: Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal] 36. Promote for “people skills.” (THE REST IS DETAILS.) 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season. 37. Honor Youth. “Why focus on these late teens and twentysomethings? 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] 8 Minutes* —Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then there’s oya yubi sedai, the “thumb generation” 38. Provide Early Leadership Assignments. 39. Create a FORMAL System of Mentoring. W. L. Gore Quad/Graphics 40. Diversity! “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mixand-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge 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 “Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.” Nicholas Negroponte Duh! “We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking staff in the store.”—Larry Johnston, CEO, Albertson’s 41. WOMEN RULE.* *Duh. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week, 11.20.00 “American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one organization and one country from another will be its use of human resources. Today human resource utilization is not only a matter of social justice but a bottom-line issue.” Judy Rosener, America’s Competitive Secret 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 “TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson “Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens. In my experience, in general, women may be better at these relationship-building skills than are men.” Hardwick Simmons, CEO, Prudential Securities “Thank you” 17 Men: 8 4 Women: 19 “Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” Judy Rosener, America’s Competitive Secret 63 of 2,500 top earners in F500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans Source: Susan Estrich, Sex and Power Opportunity! U.S. M.Mgt. 41% T.Mgt. 4% Peak Partic. Age 45 % Coll. Stud. 52% G.B. E.U. Ja. 29% 18% 6% 3% 2% <1% 22 27 19 50% 48% 26% Source: Judy Rosener, America’s Competitive Secret Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team “In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. … I have a responsibility to do the best we can for shareholders.” * ** *Source: New York Times/05.05.02 **Wouldn’t you love to watch him tell that … face-toface … to Margaret Thatcher or Carly Fiorina? (I would.) “Deloitte was doing a great job of hiring highperforming women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s maledominated culture and found them wanting. Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.” Douglas McCracken, “Winning the Talent War for Women” [HBR] “The process of assigning plum accounts was largely unexamined. … Male partners made assumptions: ‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment.’ ‘That client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ” Douglas McCracken, “Winning the Talent War for Women” [HBR] Goldsmith College research (UK): Gender stereotypes re-enforced. Men who extoll successes rewarded, women not. Men who face interviewer head on upgraded; women who look at floor or use sidelong glances do better. Women who nod repeatedly do better, not men. Men who give long answers score well, women who give short answers do well. (College grads seeking jobs; HR interviewers—2 M, 2F.) Source: The Observer/ London/ 01.12.2003 The Core Argument 1. We are in a War for Talent. 2. The war will intensify. 3. Women are under-represented in our leadership ranks. 4. Women and men are different. 5. Women’s strengths match the New Economy’s leadership needs—to a striking degree. 6. Women are also the principal purchasers of goods and services—retail and commercial. 7. Ergo, women are a large part of “the answer” to the War for Talent issue/opportunity. 42. Diversity Starts on the Board of Directors. “Would Congress [the Boardroom] be a different place if half the members were women?” From Sex and Power, Susan Estrich Norwegian Law: Boards must have at least women. 43. Hire (& Protect) Weird. enough weird people in “Are there the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01) 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 “Deviance tells the story of every mass market ever created. What Deviants, Inc. 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) Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees “Rumsfeld values mavericks and tries to protect and promote them.” — Newsweek/ 09.16.02 44. Cherish Boldness! No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte “In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on their records. ‘Zero defects’ and ‘zero tolerance’ are common bywords.”—Newsweek/09.16.02 “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec 45. We Are All Unique. Beware Lurking HR Types … One size NEVER fits all. One size fits one. Period. 48 Players = 48 Projects = 48 different success measures. 46. Bosses “Win People Over.” WHAT AN IDIOT: “Instead of employees being in the driver’s seat, now we’re in the driver’s seat.” “Coaching is winning players over.” PJ: 47. GOAL: Voyages of Mutual Discovery. I am inalterably opposed to “organization change,” “empowerment,” “motivation.” The goal: to awaken the latent talent already within, by providing opportunities worthy of the individual’s investment of her or his most precious resources … time and emotional commitment. Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachersleaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations! “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” Tim Hall et al., “The New Protean Career Contract” “H.R.” to “H.E.D.” ??? Human Enablement Department 48. Foster Independence. “You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow?’ ” Stan Davis & Christopher Meyer, futureWEALTH THE rise up and flee your cubicle STREET JOURNAL Adventures in Capitalism THE I work for a company called Me STREET JOURNAL Adventures in Capitalism Thriving in 24/7 (Sally Helgesen) START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of where we are. LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism. CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking people up.” 49. Enthusiasm! BZ: “I am a … Dispenser of Enthusiasm!” “A leader is a dealer in hope.” Napoleon (+TP’s writing room pics) 50. Talent = Brand. What’s your company’s … Employee Value Proposition, per Ed Michaels et al., The War for Talent EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent The Top 5 “Revelations” Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent MantraM3 Talent = Brand Tom Peters Squares Off with Jim Collins. Or: The Case for … Technicolor! Tom Peters/03.16.2004 “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.” Herman Melville on JPJ: “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.” —from Evan Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy Huh? “Humility: The Surprise Factor in Leadership … bosses with Gungho Qualities and Charisma May Be Out of Fashion” —Headline/FT/ re JCollins/10.03 Jim & Tom. Joined at the hip. Not. I. Good to Great II. Built to Last III. Quiet, Humble Leaders I. Good to Great II. Built to Last III. Quiet, Humble Leaders Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo Good to Great: Fannie Mae … Kroger … Walgreens … Philip Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo Good to Great: “Fannie Mae and Freddie Mac receive as much as $164 billion in implicit federal subsidies but have done little to increase home ownership or reduce the cost of home loans, according to a draft study by the Federal Reserve.” —New York Times/12.23.03 (Average rate reduction is 7 basis points, or .07%) SET THE AGENDA. Great Companies … (Period.) AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle … Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express … Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN … T & B: Atari, DEC, WANG? J vs. T: HP/CarlyF? I. Good to Great II. Built to Last III. Quiet, Humble Leaders Built to Last v. Built to Flip “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.” “Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.” Fast Company Warren Bennis & Patricia Ward Biederman/ Great Groups Don’t Last Very Long! Organizing Genius: W.A. Mozart 1756 – 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY “We are in a brawl with no rules.” Paul Allaire 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 “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly) Rate of Leaving F500 1970-1990: Source: The Company, John Micklethwait & Adrian Wooldridge (1974-200: One-half biggest 100 disappear) “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 “But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.” Kjell Nordström and Jonas Ridderstråle, Funky Business Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction. I. Good to Great II. Built to Last III. Quiet, Humble Leaders Huh? “Quiet, workmanlike, stoic leaders bring about the big transformations.”--JC Huh? “Humility: The Surprise Factor in Leadership … bosses with Gungho Qualities and Charisma May Be Out of Fashion” —Headline/FT/ re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”) Wellington Nelson Disraeli Churchill Montgomery Thatcher “Humble” Pastels? T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin A. Lincoln/U.S. Grant/W.T. Sherman TR/FDR/LBJ/RR/JFK Patton/Monty/Halsey M.L. King/C. de Gaulle/M. Gandhi/W. Churchill Picasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson H. Clinton/G. Steinem/I. Gandhi/G. Mieir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/ S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/ T.A. Edison Rummy/Norm/Henry/Wolfie Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth Dickinson/Arabella Babb Mansfield/Margaret Sanger “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch, on GE’s quality program “When it comes to transformative technologies, overoptimistic investors are actually working for the common good—even if they don’t know it. We can be glad that investors financed the construction of thousands of miles of track in the middle of the nineteenth century, despite the fact that most of them dropped a bundle doing it. The same goes for over-optimistic investors who poured money into semiconductors thirty years ago, financed undersea fiber-optic cables in the late nineties, and now are poised to lose their shirts in the coming nanobubble. In the dreams of avarice lie the seeds of progress.” —James Surowiecki/New Yorker/03.2004 “the wildest chimera of a moonstruck mind” —The Federalist on Jefferson’s Louisiana Purchase “Roosevelt’s duplicity, Churchill’s self-absorption” … “We are all worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying” Source: Jon Meacham, Franklin and Winston, et al. “a vainglorious selfpromoter spoiling for a fight” —Arthur Koestler on Galileo “In my experience, all successful commanders are prima donnas, and must be so treated.” —George S. Patton Herman Melville on JPJ: “intrepid, unprincipled, reckless, predatory, with boundless ambition, civilized in externals but a savage at heart.” —from Evan Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy Audie Murphy was the most decorated soldier in WW2. He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he never won … … the Good Conduct medal. “Men with no vices have very few virtues.” —A. Lincoln Jim Collins vs. Michael Maccoby “quiet, workmanlike, stoic” vs. “larger-than-life leaders”/ “egoists, charmers, risk-takers with big visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates “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 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 “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” The SE17: Origins of Sustainable Entrepreneurship Tom Peters/10.10.2004 SE17/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, FedEx) 3. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 4. Culture of Outspoken-ness (Intel, Microsoft, FedEx, CitiGroup, PepsiCo) 5. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft) SE17/Origins of Sustainable Entrepreneurship 6. “Culturally” as well as organizationally Decentralized (GE, J & J, Omnicom) 7. Multi-entrepreneurship/Many Independent-minded Stars (GE, Time Warner) 8. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J & J, Virgin) 9. Scour the world for Ingenious Alliance Partners—especially exciting startups (Pfizer) 10. Don’t overdo “pursuit of synergy” (GE, J & J, Time Warner) 11. Find and Encourage and Promote Strong-willed/ Independent people (GE, PepsiCo) 12. Ferret out Talent … anywhere and everywhere/ “No limits” approach to retaining top talent (Nike, Virgin, GE, PepsiCo) SE17/Origins of Sustainable Entrepreneurship 13. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 14. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 15. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 16. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin, old Raychem) (God help you when #2 is missing: Enron) 17. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin) Tom Peters’ Re-imagine Manifesto! v09.14.2004 Tom Peters’ Re-imagine Manifesto! New Delhi. Thirteen September 2004. I awoke, jetlagged and sweaty, at 3A.M. I’d had a nightmare. Stark realism. I was, as usual, accused of overstatement and a few (or more) too many exclamation marks (!!!!!). Only this time I’d acceded to “They.” The “They” who believe in The Plan and Built to Last and Continuous Improvement and Quiet, Humble Leaders. No! No! I had failed, in my dream, to live up to my Fervent Beliefs! This must not pass! In a sweat, fearful that the time would not come ’round again, I turned on the light, picked up a pad of paper, and began to scribble frantically. Herewith the result. Tom’s Re-imagine Manifesto! They say … my (Tom) language is extreme. I say … the times are extreme. They say I’m extreme. I say I’m a realist. They say I demand too much. I say they accept mediocrity & continuous improvement too readily. They say “We can’t handle this much change.” I say “Your job and career are in jeopardy; what other options do you have?” They say Brand You is not for everyone. I say the alternative is unemployment. They say “What’s wrong with a ‘good product’?” I say Wal*Mart or China or both are about to eat your lunch. Why can’t you provide instead a Fabulous Experience? Tom’s Re-imagine Manifesto! They say “Take a deep breath. Be calm.” I say “Tell it to Wal*Mart. Tell it to China. Tell it to India. Tell it to Dell. Tell it to Microsoft.” They say the Web is a “useful tool.” I say the Web changes everything. Now. They say “We need an Initiative.” I say “We need a Dream. And Dreamers.” They say Great Design is “nice.” I say Great Design is “necessary.” They say I “overplay” the “women’s thing.” I say the share of Women in Senior Leadership Positions is a Waste and a Disgrace and a Strategic Marketing Error. Tom’s Re-imagine Manifesto! They say the Women’s Market Opportunity I harp on is “doubtless important.” I say 9 out of 10, make that 99 out of 100, companies aren’t within striking distance of accurately estimating the potential of the Women’s Market … let alone exploiting it. They say the boomer-geezer market is also “doubtless important.” I say the boomer-geezer market amounts to a Redefining Moment. They say we need a “project” to exploit the women-boomer-geezer market. I say we need Total Strategic Realignment to exploit the Women-BoomerGeezer Opportunity. They say “Wow” is “typical Tom.” I say “WOW” is a Minimum Survival Requirement. They say “effective governance” is important. I say bold-brash Boards that are representative of the market served—more than a token woman or two and an empty seat for the “forthcoming Hispanic”—are an Imperative. Now. Tom’s Re-imagine Manifesto! They say “Plan it.” I say “DO IT.” They say “We need more steady, loyal employees.” I say “WE NEED MORE FREAKS WHO ROUTINELY TELL THOSE ‘IN CHARGE’ TO TAKE A FLYING LEAP … BEFORE IT’S TOO LATE.” They say “We need Good People.” I say “We need Quirky Talent.” They say “We like people who, with steely determination, say, “I can make it better.’” I say “I love people who, with a certain maniacal gleam in their eye, perhaps even a giggle, say, ‘I can turn the world upside down. Watch me!’” They say “We must speed things up.” I say “We must Radically change the Corporate Metabolism until Insane Urgency becomes a Sacrament.” Tom’s Re-imagine Manifesto! They say “Sure, we need ‘Change.’” I say we need “REVOLUTION NOW.” They say (acknowledge), “Okay, we need revolution.” I say “REVOLUTION.” They say “fast follower.” I say “battered and bruised leader.” They say “Conglomerate & Imitate!” I say “Create & Innovate!” They say “Market share.” I say “Market CREATION.” They say “Improve & Maintain.” I say “DESTROY & RE-IMAGINE.” Tom’s Re-imagine Manifesto! They say “We like words such as ‘calm’ … ‘certainty’ … ‘is.’” I say “I like words/phrases such as ‘turbulent’ ‘opportunity’ … ‘might be’.” They vote for Republicans and Democrats. I vote for Independents and Libertarians. They say “Normal.” I say “Weird.” They say “Happy balance.” I say “Creative Tension.” They say they favor a “team” that works & lives in “harmony.” I say “give me a raucous brawl among the most creative people imaginable.” They say “Peace, brother.” I say “Bruise my feelings. Flatten my ego. SAVE MY JOB.” Tom’s Re-imagine Manifesto! They say “Vanilla.” I say “Cherry Garcia.” They say “Basic Black.” I say “TECHNICOLOR RULES!” They say “Branding is for the likes of Nike.” I say “Branding is for Everyone & Anyone with the Passion & Tenacity to foist their Wonderful & Weird Point of View on the world … and the New World’s (read: Web’s) power allowsencourages such “silly” (until recently) visions-of-ubiquity to become reality, perhaps overnight.” They say we need “happy customers.” I say “Give me pushy, needy, nasty, provocative customers who will drag me down Innovation Boulevard.” They say they want to partner with “best of breed.” I say “Give me Coolest of Breed.” Tom’s Re-imagine Manifesto! They say we need “supply chain harmony.” I say we need “supply chain Innovation.” They say “We seek Harvard MBAs.” I say I seek Certificate-free “PhDs” from the School of Hard Knocks. They say they want recruits with a “spotless records.” I say “the Spots are what matter most.” They say “Integrity is important.” I say “Tell the Unvarnished Truth, All the Time … or take a Long Hike.” They read Jim Collins and grok on “quiet, humble leaders.” I say “Give me the Bold, the Brash, the Brassy, the Egocentric Dreamers who, like Steve Jobs, ‘Dent the Universe.’” Tom’s Re-imagine Manifesto! They say they need a “vision” born of McKinsey. I say we need a “Grandiose Dream” born of a Passionate & Intemperate Belief that the world can be a different, better place. They say healthcare, our biggest industry, is “a mess.” I say our hospitals, which kill over 100,000 patients a year, are part of a system that is “a disgrace.” They say “obesity is a problem” … “lose some weight.” I say Re-imagine the entire healthcare system … NOW … to focus on Prevention & Wellness. They say “no child left behind.” I say “education” is leaving ALL our children behind, as it is totally mis-aligned to deal with tomorrow’s (this afternoon’s) uncertain, ambiguous, creativity-driven economy. Tom’s Re-imagine Manifesto! They say “Of course we believe in marketing.” I say “Is the CMO [Chief Marketing Officer] on the Board of Directors?” They say “Of course we believe in marketing.” I say “Has your customer data base won numerous major industry awards?” They say “Of course we believe in marketing.” I say “Is your Web site Sooooo Cool, Sooooo Fresh, Sooooo Friendly to Use that it gives you goose pimples just to e-visit, even though you’ve seen it 1000 times?” They say “Of course we believe in marketing.” I say “How many in-depth customer visits did the CEO make last month?” They say “Yes, the ‘Women’s thing’ is important.” I say “Do women hold at least 1/3rd of your Board seats?” They say “We’re coming around on the design bit.” I say “Is, as at Braun, your Chief Design Officer on the Board of Directors?” Tom’ Re-imagine Manifesto! They say “Of course we think the ‘experiences thing’ is important.” I say “Is there an ‘EVP Experiences’?” They say “Of course innovation is important.” I say “Is your percentage of revenue devoted to R & D at least 1.5 (2.0? 2.5?) times the industry average?” They say “Of course we believe in IS/IT.” I say “Is the CIO on the Board of Directors?” (Only 5% of Fortune500 CIOs are on the Board. One example: Wal*Mart.) They say “Of course we believe in IS/IT.” I say “How many members of your Board are under 35 years old?” They say “We believe in having a ‘flat organization.’” I say “Is your headquarters in a Tower?” They say “Improve.” I say “Re-imagine!” Tom’s Re-imagine Manifesto! They say we need to “bring effectiveness to the supply chain.” I say we need an IS/IT/Best Sourcing revolution based on nothing less than an Entirely Original Vision of what organizations are and how they interact. They say “Globalization is a bumpy road.” I say India and China and Asia in general are within two decades of running the show: Get ready or get trounced. They say “defense” and “consolidation” are musts for a global game. I say encourage Offense, nurture a Generation (or 10) of Entrepreneurs, cherish Creativity & Risk-taking from primary school onwards … and don’t expect to be saved by a bunch of bulky, retro behemoths commanded by a phalanx of Old White Guys who think 30 minutes a day on the corporate treadmill and 27 holes on the links are a fit defense against Revolution. Tom’s Re-imagine Manifesto! They say “Get an MBA.” I say “Get an MFA.” They say “If it can’t be precisely measured then it isn’t real.” (And I suppose if it can be measured it is real? Think Enron? Adelphia? WorldCom?) I say “If it can be precisely measured it isn’t real.” (Think Age of Intangibles & Relationships.) (Think: “He knew the price of everything and the value of nothing.”) They say “Rationality is the Bedrock of Modern Society.” I say “Irrationality [irrational exuberance?] is the Mother of all True Entrepreneurial Pilgrimages.” They say “Order is the necessary precursor to measured, sustainable success.” I say “Dis-order is the precursor to Opportunistic Sorties, Market Creation, Quantum Leaps, and Entrepreneurial Adventure. Tom’s Re-imagine Manifesto! They say “To get anywhere, you have to know exactly where the hell you’re headed.” I say “If you know precisely where you’re headed and exactly how you’re gonna get there, then you clearly suffer from Advanced Shrivelus Imaginationus.” (This disease is fatal.) They say “Employees need Well-defined Structure.” I say “Talent should be encouraged to embark on Quests to the Unknown.” They say “I’m here to maximize shareholder value.” I say “I’m here to inflame each & every member of my Awesome Staff to embark with Vigor & Determination & Passion & Enthusiasm on a Quest of Monumental Consequence.” (And if I come even close to succeeding, it will, in fact, dramatically up the odds of Thriving Amidst Today’s Chaos—and creating untold shareholder value in the process.) Tom’s Re-imagine Manifesto! They say “men.” I say “WOMEN.” They say Diversity is a “good thing.” I say Diversity is a Fresh Breath of Creative Air … Absolutely Necessary for Economic Salvation in perilous times. They say “Wait your turn, honor those who have marched these corridors before you.” I say Get Off Your Butt & Go for the Gold … TODAY … or sign the transfer papers willing your job in perpetuity to a Chinese or Indian who Gives a Shit and Gets Up (VERY) Early and works Saturdays & Sundays. They say “offshoring” is a “blight.” I say the Earth proved not to be the center of the Solar System … and the USA is not the epicenter-in-perpetuity of the Earth … and that we had best learn … NOW … to prosper and take pleasure in a dynamic, exciting, creative, multi-polar economic environment. (Damn it.) Tom’s Re-imagine Manifesto! They say “It’s a fright.” I say “It’s a Helluva Ride.” They say it’s “daunting.” I say it’s “a bronco-bustin’ day at the rodeo.” They say “Life is a marathon; husband your strength.” I say “Life is a sprint. Begin planning your World-beating Me Inc. start-up … TODAY.” They say lifetime employment was a boon. I say lifetime employment was Indentured Servitude, modernday Slavery. They say “safety net.” I say “I am my safety net; give me the ‘Ownership Society.’” (And I’m a lifelong Democrat.) They say “zero defects.” I say “A day without a screw-up or two is a day pissed away.” Tom’s Re-imagine Manifesto! They say “Think about it.” I say “Try it.” They say “Plan it.” I say “Test it.” They say “continuous improvement.” I say “Bold Leaps.” They say “Keep on Improvin’.” I say “Keep on Leapin’.” They say “Built to last.” I say “Built to Soar. We’re all dead in the long run … live your Insane Fantasy. Devil take the hindmost.” They (Jim Collins) say “Walgreens is Cool.” I say “I love Larry Ellison.” (Oracle rules … at least for the next ten minutes.) Tom’s Re-imagine Manifesto! They say “Play the odds.” I say “Reward excellent failures. Punish mediocre successes.” (Thanks, Phil Daniels.) They say “Eighty-hour weeks will kill you.” I say “Work 35-hour weeks, and the Chinese will kill you.” They say “Install cost controls with teeth.” I say “Ha. Ha. Ha. Blow Up the existing enterprise and start with a Clean Sheet of Paper.” They say “Install cost controls with teeth.” I say “Grow the Top Line.” They say “Radical change takes a decade.” I say “Radical change takes a Minute.” (See AA.) They say “Times are changing.” I say “Everything has already changed. Tomorrow is the First Day of Your Revolution … or you’re Toast.” Tom’s Re-imagine Manifesto! They say “We can’t all be Anita Roddick or Maxine Clark or Stan Shih or Les Wexner or Jerry Yang.” I say “Why not?” They say “We can’t all be Revolutionaries.” I say “Why not?” They say “We can’t all be a Brand.” I say “Why not?” They say “Beware the Hype.” I say “Been to China lately? Visited Infosys in Bangalore lately?” They say this is just a Rant. I say this is just Reality. They say “The man is not nice.” I say “The times are not forgiving.” The Education Fiasco Brand Talent+: FES/NOV2001: New Work. New Education. The Twain Must Meet. TP Mood Anger. Despair. Hopelessness. Losing the War to Bismarck (and Rockefeller) 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 “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 His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” grade in art at such a young age? Jordan Ayan, AHA! “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 An Unnatural Way to “Learn” Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in featureless rooms … sort children into rigid categories by the use of fantastic measures such as age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving them of private time and space … John Taylor Gatto, A Different Kind of Teacher Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to discriminate qualities quantitatively … insist that every moment of time be filled with lowlevel abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their active learning time to acquire.” John Taylor Gatto, A Different Kind of Teacher Doing Stuff that Matters! “During the first years of life, youngsters all over the world master a breathtaking array of competences with little formal tutelage.” Howard Gardner, The Unschooled Mind The Learner’s Manifesto The brain is always learning. Learning does not require coercion. Learning must be meaningful. Learning is incidental. Learning is collaborative. The consequences of worthwhile learning are obvious. Learning always involves feelings. Learning must be free of risk. Frank Smith, Insult to Intelligence “Really bright kids who just needed to get excited” —teacher, Oakley School Tom’s Edu3M Manifesto* *Manifesto for Education in the 3rd Millennium Education3M Learning is a normal state. Children are learnavores. Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.] We learn at different rates. We learn in different ways. Boys and girls learn [very] differently. In a class of 25, there are 25 different trajectories. Learning in 40-minutes blocks is bullshit. Learning for tests is utterly insane. There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real world” standards. Education3M We learn most/fastest/most completely when we are passionate about what we are learning and it matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/ Learning by Internship. Classrooms are abnormal places. We need changes of pace. [Japanese recesses after each class.] International test scores are not correlated with hours-per-year in class. Big classes are slightly problematic. Big schools suck. Period. Education3M “All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.] U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning. Cutting art-music budgets is truly dumb. Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.] Teachers need enough space-time-flexibility to get to know kids as individuals. Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.] Education3M Our toughest “learning achievement”— mastering our native language—does not require schools, or even competent parents. [It does require a desperate need-to-know.] Great teachers are great learners, not impartersof-knowledge. Great teachers ask great questions—that launch kids on lifelong quests. The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly sophisticated questions—just ask a ski instructor or neurosurgeon. Education3M Most schools spend most of their time setting up contexts in which kids learn not to like particular subjects. [Evidence shows that such antilearning sticks!] Vigorous exploration is normal … until you are incarcerated in a school. “Bite size” education-learning is neither education nor learning. Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in the hyper-structured classroom. Education3M The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the wrong time. There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps. Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.” Schools of “education” should by and large have their charters revoked. Education3M Stability is dead; “education” must therefore “educate” for an unknowable, ambiguous, changing future; thence, learning to learn & change is far more important than mastery of a static body of “facts.” “Education” must “develop in youth the capabilities for engaging in intense concentrated involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.] “The boys who made the best ‘Grotties’ usually turned out to be nonentities later; boys who hated Groton did much better.” FDR biographer John Gunther (quoted in Whoever Makes the Most Mistakes Wins, Richard Farson & Ralph Keyes) “Fail . Forward. Fast.” High Tech CEO, Pennsylvania Read This! Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Richard Farson & Ralph Keyes: