Tom Peters Seminar2000: Distinct or … Extinct Colombo 4 December 2000

1. Tom Peters Seminar2000:Distinct or … ExtinctColombo4 December 2000

2. “In 25 years, you’ll probably be able to get the sum total of all human knowledge on a personal device.”Greg Blonder, VC [was Chief Technical Adviser for Corporate Strategy @ AT&T] [Barron’s 13.11.2000]

3. NOW THAT’S B-I-G!“The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.”David Schneider & Grady Means, MetaCapitalism

4. “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 (08.00)

5. Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

6. “I genuinely believe we are living through the greatest intellectual moment in history.”Matt Ridley, Genome

7. “We are in abrawl with no rules.”Paul Allaire

8. 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!)

9. “It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)

10. Part I: Brand InsidePart II: Brand OutsidePart III: Brand Leadership

11. Forces @ Work IThe Destruction Imperative!

12. 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

13. “It is generally much easier to kill an organization than change it substantially.” Kevin Kelly, Out of Control

14. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

15. The [New] Ge WayDYB.com

16. The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M

17. “The secret of fast progress is inefficiency, fast and furious and numerous failures.”Kevin Kelly

18. Brand InsideBrand Organization:Lean, Linked, Electronic & Malleable

19. Headline: “Bank of America to Cut … 10,000 Jobs”“Middle-level and senior managersare expected to be the principal targets of the job cutbacks.”Source: The New York Times (07.29.2000)

20. White Collar Revolution!

21. The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

22. “AssetlessCompany”John Bryan, CEO, on selling all Sara Lee’s manufacturing

23. Cisco, Dell =Brand-owning companies who sell Customer SatisfactionSource: David Schneider & Grady Means, MetaCapitalism [e.g.: Cisco owns 2 of 38 assembly plants]

24. RR on “Assetless” [J.B.] Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

25. Advance ParadigmData on 165,000,000 prescriptions per year; docs and insurers have access to recordsReduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review timeRev in ’99: $2B; $477M in ’98Source: Business Week (09.00)

26. Richard Rosecrance, The Rise of the Virtual State: Wealth and Power in the Coming Century

27. Hong Kong: Prototypical “Virtual State”83% Service8% Mfg.Source: Richard Rosecrance,The Rise of the Virtual State

28. “The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – a company with a head but no body.”Richard Rosecrance, The Rise of the Virtual State

29. “We own all the intellectual property, we farm out all the direct labor.”Jim McDonnell, VP, IBM

30. The “Futility of Size”“[Regarding size] the new process of virtualization fully asserts itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic access must become the substitute for increasing domain.”Richard Rosecrance, The Rise of the Virtual State

31. TP: Skill at creating, exploiting, and exiting crucial alliances beats ownership of fixed assets.

32. “At the ultimate stage, competition among nations will be competition among educational systems, for the most productive and richest countries will be those with the best education and training.”Richard Rosecrance, The Rise of the Virtual State

33. “Elementary and high school teachers should be rewarded as patient creators of high-value capital in the United States and elsewhere.”Richard Rosecrance, The Rise of the Virtual State

34. “The Main crisis in school today is irrelevance.”Daniel Pink, Free Agent Nation

35. “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 (09.00)

36. Brand InsideBrand Work: The Professional Service Firm Model & The WOW Project

37. So what will be the Basic Building Block of theNew Org?

38. Answer: PSF![Professional Service Firm]Department Headto …Managing Partner, HR [IS, etc.] Inc.

39. The Raw Material … The WOW Project!

40. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

41. “You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)

42. Measures • WOW! • Beauty! • Raving Fans! • Impact!

43. Silicon Valley Success [Failure?] Secrets“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpotSource: The Economist

44. Brand InsideBrand You: Distinct … or Extinct

45. “The fundamental unit of the new economy is not the corporation, but the individual. Tasks aren’t assigned and controlled through a stable chain of command but are carried out autonomously by independent contractors - e-lancers - who join together in fluid and temporary networks to sell goods and services. When the job is done, the network dissolves and its members become independent again, circulating through the economy, seeking the next assignment.” Thomas Malone and Robert Laubacher

46. “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

47. Minimum New Work SurvivalSkillsKit2000MasteryRolodex Obsession (vert. to horiz. “loyalty”)Finishing SkillsEntrepreneurial InstinctCEO/Leader/BusinesspersonMistress of ImprovSense of HumorIntense Appetite for TechnologyGroveling Before the YoungEmbracing “Marketing”Passion for Renewal

48. [“My ancestors were printers in Amsterdam from 1510 or so until 1750 and during that entire time they didn’t have to learn anything new.”Peter Drucker, Business 2.0 (08.22.00)]

49. R.D.A.Rate: 15%?, 25%?Therefore: Formal “Investment Strategy”/R.I.P.

50. “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