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Tom Peters Seminar M3 Rollercoaster Days: Learning to … Rock & Roll! Clark/Bardes/22Feb2001. “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case.
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Tom Peters SeminarM3Rollercoaster Days: Learning to … Rock & Roll!Clark/Bardes/22Feb2001
“There will be more confusion in the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case
Rollercoaster Days2001:Blood on retail’s streets: Montgomery Ward, Bradlees, Sears, Penney. Layoffs/10K+: Chrysler [27K], Lucent, WorldCom, GM, Dana. GE: 80,000??? [I’net driven.]Other Big: Sara Lee, Ford, Caterpillar, Motorola. Human genome map published. Human cloning within 1 year. First space tourist in training.
Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership
“When land was the productive asset, nations battled over it. The same is happening now for talented people.”Stan Davis & Christopher Meyer, futureWEALTH
“We have transitioned from an asset-based strategy to a talent-based strategy.”Jeff Skilling, COO, Enron
09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersConsulting bus!(31,000 bods)
From “1, 2 or 3” [JW] to …“Best talent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)
Home Depot:7 new growth initiatives ($20B to $100B in 5-7 years)Arthur Blank: BESTPERSONINTHEWORLD TO HEAD EACH INITIATIVEE.g.: COO of IKEA to head international expansionEd Michaels, War for Talent (05.17.00)
“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia Pacificchanged 20 of his 40 box plant managers to put more talented, higher paid managers in charge.He increased profitability from $25 million to $80 million in 2 years.”Ed Michaels, War for Talent (05.17.00)
Message: Some people are better than other people. Some people are a helluva lot better than other people.
“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)
“We value engineers like professional athletes. We value great people at 10 times an average person in their function.”Jerry Yang, Yahoo
So-so plant manager, $1M per year. Pay: $110,000 plus $60,000. Top plant manager, $3-4M per year. Pay: $135,000 plus $90,000. Net: $2-3M for $50K.Source: Ed Michaels et al., The War for Talent, re Georgia Pacific
What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more.
[Banking Incentive Pay for …X-selling … 30%Customer Retention … 4%Source: ABA Banking Journal]
“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
The New Economy …Shout goodbye to “command and control”!Shout goodbye to hierarchy!Shout goodbye to “knowing one’s place”!
Women’s Stuff =New Economy MatchImprov skillsRelationship-centricLess “rank consciousness”Self determinedTrust sensitive IntuitiveNatural “empowerment freaks” [less threatened by strong people]Intrinsic [motivation] > Extrinsic
“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
Read This!“Winning the Talent War for Women: Sometimes It Takes a Revolution”Douglas McCracken, HBR [11-12/2000]
“Deloitte was doing a great job of hiring high-performing 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 male-dominated 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]
63 of 2,500 top earners in F5008% Big 5 partners14% partners at top 250 law firms43% new med students; 26% med faculty; 7% deansSource: Susan Estrich, Sex and Power
What’s your company’s … EVP?Employee Value Proposition, per Ed Michaels et al., The War for Talent
EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward[EVP = “The company’s fingerprint” = B.P.]Source: Ed Michaels et al., The War for Talent
Dick Kovacevitch (Wells Fargo) on Talent“You don’t just write a memo saying people are a competitive advantage. You back that up with training, incentives and the interpersonal relationships developed over time that add up to your employees caring more about their customers than the employees of your competitors. I can’t overstate how differentiating that is, as opposed to a silver bullet about figuring out some way to segment the market.”Source: ABA Banking Journal
Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership
“Companies have defined so much ‘best practice’ that they are now more or less identical.”Jesper Kunde, A Unique Moment
“Analysts said we don’t care about revenue, just give us the bottom line. They preferred cost cutting, as long as they could see 2 or 3 years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell. They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!”Dick Kovacevitch, Wells Fargo (in ABA Banking Journal)
“What we’ve been doing is underserving our best customers. It’s easy to reprice our unprofitable customers, to take away branches from them and save some cost, but what are we doing to delight our best customers?”James McCormick, First Manhattan Consulting Group (ABA Banking Journal)
Quality Not Enough!“While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,” The New York Times
What’s Special?“Customers will try ‘low cost providers’ because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst (10-98)
“The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business
Brand OutsideStrategy 1:Use E-Commerce toRe-inventEverything!
Tomorrow Today: Cisco!90% of $20B (=$50M/day)75% mfg. outsourced; 50% of orders routed to supplier who ships directGross margin: 65%; Net margin: 28%Annual savings in service and support from customer self-management: $550M
Enron eWorld: “Price a structured trade,” per John Arnold, 26: Early 1999: 30 times a day. Late 2000: 30 times per … minute.Long-term gas contract. 1989: 9 months, 400+ deals. Late 90s: 2 weeks, 2 per week. Late 2000: 5 such deals per daySource: www.ecompany.com (1/2001)
