Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age Birmingham/23April2004

1. Tom Peters’ Re-Imagine!Business Excellence in a Disruptive AgeBirmingham/23April2004

2. Slides at …tompeters.com

3. I. NEW BUSINESS. NEW CONTEXT.

4. “Uncertainty is the only thing to be sure of.”—Anthony Muh,head of investment in Asia, Citigroup Asset Management“If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff, U. S. Army

5. All Bets Are Off.

6. Jobs TechnologyGlobalizationSecurity

7. JobsNew TechnologyGlobalizationSecurity

8. “14MILLION service jobs are in danger of being shipped overseas”—The Dobbs Report/USN&WR/11.03/re new UCB study

9. “There is no job that is America’s God-given right anymore.”—Carly Fiorina/ HP/ 01.08.2004

10. “Income Confers No Immunity as Jobs Migrate”—Headline/USA Today/02.04

11. “WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?”—Headline/ Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity rather than anxiety.”)

12. “One Singaporean workercosts as much as …3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/08.18.03

13. “Thaksinomics” (after Taksin 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

14. JobsTechnologyGlobalizationSecurity

15. <1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift1800s: > prior 900 years1900s: 1st 20 years > 1800s2000: 10 years for paradigm shift21st century: 1000Xtech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”)Ray Kurzweil

16. “A California biotechnology company has put the entire sequence of the human genome on a single chip, allowing researchers to conduct a single experiment on the complex relationships between the 30,000 genes that make up a human being.”—Page 3, Financial Times/10.03.2003

17. JobsTechnologyGlobalization Security

18. “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)

19. “The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been integrated into the global market economy, many of them highly educated workers, who can do just about any job in the world. We’re talking about three billion people.”—Craig Barrett/Intel/01.08.2004

20. China Roars!

21. 1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of Total Global Growth in 2002.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

22. 1998-2003: 45,000,000 layoffs in state sector; offset by $450B in foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico, 15% in Korea.Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

23. 200 cities with >1,000,000 population.Source: “China Takes Off,” David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

24. 2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%: DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs, PDAs, car stereos).Source: “China Takes Off,” David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003

25. “Going Global: Flush with billions in foreign reserves, China is embarking on a buying spree”—Cover/ Newsweek/ 03.01.04/ on China’s aggressive offshore acquisition activity (buying brands, technology, etc.)

26. World economic output: U.S.A., 21%; EU, 16%; China, 13% (2X since1991)Source: New York Times/12.14.2003

27. Indian GDP/1990-2002: Ag, 34% to 21%; services, 40% to 56%Source: The Economist/02.04

28. Level 5 (top) ranking/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from IndiaSource: Wired/02.04

29. “Forget India, Let’s Go to Bulgaria”—Headline, BW/03.04, re SAP, BMW, Siemens et al. “near-shoring”

30. JobsTechnologyGlobalizationSecurity

31. “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

32. “The world’s new dimension (computers, Internet, globalization, instantaneous communication, widely available instruments of mass destruction and so on) amounts to a new metaphysics that, by empowering individual zealots or agitated tribes with unappeasable grievances, makes the world unstable and dangerous in radically new ways.” —Lance Morrow/Evil

33. All Bets Are Off!

34. “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

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

36. S.A.V.

37. “Strategy meetings held once or twice a year” to “Strategy meetings needed several times a week”Source: New York Times on Meg Whitman/eBay

38. “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

39. Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.

40. It is the foremost task—and responsibility—of our generation to re-imagine our enterprises, private and public.—from the Foreword, Re-imagine

41. “Let’s compete—by training the best workers, investing in R & D, erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we both win and create jobs.” —Craig Barrett (Time/03.01.04)

42. “In a global economy, the government cannot give anybody a guaranteed success story, but you can give people the tools to make the most of their own lives.”—WJC, from Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

43. Age of AgricultureIndustrial AgeAge of Information IntensificationAge of Creation IntensificationSource: Murikami Teruyasu, Nomura Research Institute

44. The Winning Edge: Peters’ Big61. Research-Innovation2. Entrepreneurial Attitude & Support (Especially from Capital Markets)3. Creative (“Obstreperous”) Education4. Free Trade-Open Markets5. Individual Self-reliance (& Supports Therefore)6. Cutting-edge Infrastructure

45. 2. The Destruction Imperative.

46. 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

47. “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

48. 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

49. “Conglomerates don’t work.”—James Surowiecki, The New Yorker (07.01.2002)

50. “MERGERS: Why Most Big Deals Don’t Pay Off. A BusinessWeek analysis shows that 61% of buyers destroyed shareholder wealth.”—BusinessWeek/10.14.2002