Tom Peters’ We Are in a Brawl with No Rules PMA/10.15.2002

1. Tom Peters’ We Are in a Brawl with No RulesPMA/10.15.2002

2. Slides at …tompeters.com

3. “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

4. 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

5. I. Beyond Kaizen/ Continuous Improvement

6. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

7. “Change the rules before somebody else does.”—Ralph Seferian, VP, Oracle

8. II. The IS Revolution

9. 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

10. 100square feet

11. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

12. Autobytel:$400.Wal*Mart:13%.Source: BW(05.13.2002)

13. “The corporation as we know it, which is now 120 years old, isnot likely to survive the next 25 years.Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

14. E.g. …Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years.Source: BW (01.28.02)

15. IBM’s Project eLiza!** “Self-bootstrapping”/ “Artilects”

16. “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

17. III. Commodity Hell

18. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordström and Jonas Ridderstråle, Funky Business

19. “When we did it ‘right’ it was still pretty ordinary.”Barry Gibbons on“Nightmare No. 1”

20. 20 of 267 of top 10*

21. *P&G: Declining domestic sales in 20 of 26 categories; 7 of top 10 categories. (The “billion-dollar” problem.)Source: Advertising Age 01.21.2002/BofA Securities

22. IV. The New Value-added Formula

23. The Big Day!

24. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

25. “These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard

26. Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).

27. E.g. …UTC/Otis + Carrier: boxes to “integrated building systems”

28. Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.”E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”).Source: USA Today/06.14.2002

29. V. New Value-added+: The EXPERIENCE Thing

30. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

31. “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

32. 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

33. WHAT CAN BROWN DO FOR YOU?

34. VII. New Value-added++: The DESIGN Thing

35. All Equal Except …“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.Design is the only thing that differentiates one product from another in the marketplace.”Norio Ohga

36. Design Transforms even the [Biggest] Corporations!TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

37. Westin’s …Heavenly Bed

38. VIII. Brand Power

39. “WHO ARE WE?”

40. “WHAT’S OUR STORY?”

41. “EXACTLY HOW ARE WE DRAMATICALLYDIFFERENT?”

42. “We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others.Companies will thrive on the basis of their stories and myths.Companies will need to understand that their products are less important than their stories.”Rolf Jensen, Copenhagen Institute for Future Studies

43. Brand = You Must Care!“Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.”Tom Chappell, Tom’s of Maine

44. “Salt is salt is salt. Right? Not when it comes in a bluebox with a picture of a little girl carrying an umbrella. Morton International continues to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf.”Tom Asaker, Humanfactor Marketing

45. IX. Women!

46. ?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (“home projects”) … 80%Consumer Electronics … 51% Cars … 60% (90%)Allconsumerpurchases … 83%Bank Account … 89%Health Care … 80%

47. 91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”)Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

48. Carol Gilligan/ In a Different VoiceMen: Get away from authority, familyWomen:ConnectMen: Self-orientedWomen:Other-orientedMen: RightsWomen:Responsibilities

49. FemaleThink/ Popcorn“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

50. “Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. For a man, ignoring the price tag is almost a sign of virility.”Paco Underhill, Why We Buy*(*Buy this book!)