Summary/The SE22:
“Origins of
Sustainable
Entrepreneurship”
Tom Peters/0724.06
SE22/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, Nokia, FedEx)
3. Treat History as the Enemy (GE)
4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)
5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco,
GSK, GE, Microsoft)
6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)
7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple,
Microsoft, CitiGroup, PepsiCo)
8.
“Culturally” as well as
organizationally Decentralized
(GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
HP’s Big “Duh”!
Decentralize ($90B)
Undo “Matrix”
Accountability
Source: “HP Says Goodbye To Drama”/
BW/09.05/re Mark Hurd’s first 5 months
DePuySpine/J&J*
70/3
game-changers!
*Still decentralized after all these years!
“No Need for Economies
of Scale: Illinois Tool Revs
Up Innovation by Keeping
Its 655 Units Separate
and Focused”
Source: Headline, BW, 1031.05 (“commodity” producer;
R&D = 1%; Top 100 patent recipient—66th in ’04) ($12B rev
in ’04; CEO David Speer: focus, lean, customer intimacy,
entrepreneurial, employee participation)
“‘Decentralization’
is not a piece of
paper. It’s not me.
It’s either in your
heart, or not.”
—Brian Joffe/BIDvest
“If I could have chosen not to tackle the IBM
culture head-on, I probably wouldn’t have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands
[Yet] I
came to see in my time at
IBM that culture isn’t just
one aspect of the game—
it is the game.” —Lou Gerstner,
of people is very, very hard.
Who Says Elephants Can’t Dance
SE22/Origins of Sustainable Entrepreneurship
10. Keep decentralizing—tireless in pursuit of wiping out
Centralizing Tendencies (J&J, Virgin)
11. Scour the world for Ingenious Alliance Partners—
especially exciting start-ups (Pfizer)
12. Acquire for Innovation, not Market Share (Cisco, GE)
13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner)
14. Execution/Action Bias: Just do it … don’t obsess on
how it “fits the business model.” (3M, J & J)
15. Find and Encourage and Promote Strong-willed/
Hyper-smart/Independent people (GE, PepsiCo, Microsoft)
16. Support Internal Entrepreneurs (3M, Microsoft)
17. Ferret out Talent anywhere/“No limits” approach to
retaining top talent (Virgin, GE, PepsiCo)
SE22/Origins of Sustainable Entrepreneurship
18. Unmistakable Results & Accountability focus from
the get-go to the grave (GE, New York Yankees, PepsiCo)
19. Up
or Out (GE, McKinsey, big consultancies and law firms
and ad agencies and movie studios in general)
20. Competitive to a fault! (GE, New York Yankees, News
Corp/Fox, PepsiCo)
21. “Bi-polar” Top Team, with “Unglued” Innovator #1,
powerful Control Freak #2 (Oracle, Virgin) (Watch out when
#2 is missing: Enron)
22. Masters of Loose-Tight/Hard-nosed about a very few
Core Values, Open-minded about everything else
(Virgin)
“HOW THE COAST GUARD
GETS IT RIGHT”
—Headline, Time, 10.31.2005
*Autonomy
*Flexibility
*“Perhaps the most important
distinction of the Coast
Guard is that it trusts itself”
Bonus:
WallopWal*Mart16*
*Or: Why it’s so unbelievably easy
to beat a GIANT Company
$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods
4X:
“At London
Drugs, everyone
cares about
everything.”
—Wynne Powell
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “miniWal*Mart.)
*Never attack the monsters head
niche business and lukewarm customers.)
*“Dramatically
on! (Instead steal
Different”
(La Difference ... within our community, our industry regionally, etc
… is as obvious as the end of one’s nose!) (THIS IS WHERE MOST
MIDGETS COME UP SHORT.)
*Compete
on value/experience/intimacy, not
price. (You ain’t gonna beat the behemoths on cost-price in 9.99
out of 10 cases.)
*Emotional bond with Clients,
BIGGIES ON EMOTION/CONNECTION!!)
Vendors. (BEAT THE
PSF!
Donnelly’s
Weatherstrip
Service
Weymouth MA
The “Small Guys” Guide: Wallop Wal*Mart16
*Hands-on, emotional leadership. (“We are
a great & cool & intimate & joyful & dramatically
different team working to transform our Clients lives
via Consistently Incredible Experiences!”)
*A community star! (“Sell” local-ness per se.
Sell the hell out of it!)
*An
incredible experience, from the first
to last moment—and then in the followup! (“These guys are cool! They ‘get’ me! They love
me!”)
*DESIGN DRIVEN! (“Design” is a premier
weapon-in-pursuit-of-the sublime for small-ish
enterprises, including the professional services.)
The “Small Guys” Guide: Wallop Wal*Mart16
*Employer of choice. (A very cool, well-paid
place to work/learning and growth experience in at
least the short term … marked by notably progressive
policies.) (THIS IS EMINENTLY DO-ABLE!!)
*Sophisticated
use of information
technology. (Small-“ish” is no excuse for “small
aims”/execution in IS/IT!)
*Web-power! (The Web can make very small very
big … if the product-service is super-cool and one
purposefully masters buzz/viral marketing.)
*Innovative! (Must keep renewing and expanding
and revising and re-imagining “the promise” to
employees, the customer, the community.)
The “Small Guys” Guide: Wallop Wal*Mart16
*Brand-Lovemark* (*Kevin Roberts) Maniacs!
(“Branding” is not just for big folks with big budgets.
And modest size is actually a Big Advantage in
becoming a local-regional-niche “lovemark.”)
*Focus on
How stupid.)
women-as-clients. (Most don’t.
*Excellence! (A small player … per
me … has no right or reason to exist unless they are in
Relentless Pursuit of Excellence. One earns the right—
one damn day and client experience at a time!—to beat
the Big Guys in your chosen niche!)