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Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES
R
Series

The

in a

Brawl
No Rules

Women

Roar
The New Economy’s Hidden Imperative

Tom Peters

Tom Peters

Work
Matters

Weird
Creating & Maintaining

the High Standard Deviation Enterprise

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Design

Getting Weird & Staying

We are
with

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Talent

Mindfulness

Wellspring of "Corporate Soul" & No.1 Basis for Competitive Advantage?

Tom Peters' Manifestos 2002: The BRAWL
BRA
WITH NO RULES
R
Series

The

Heart
Bossof Branding
Free
Who Are We?
What’s Our Story?
Why Are We Here?
How Are We Unique?
Does It Make a Dramatic Difference?
Who Cares?

How to find it. How to keep it.

Tom Peters'
eters' Manifestos
Manif
2002: The BRAWL WITH NO RULES
R
Series

Implementation
of STM/Stuff That Matters!

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Tom Peters' Manifestos2002: The BRAWL WITH NO RULES Series

Tom Peters' Manif eters' Manifestos
estos 2002: The BRAWL
BRA
WITH NO RULES
RULES Series
Ser

In

PSF
Unbound

Search
of Excellence:

The Death Knell for “Ordinary”:

Pursuing

A Three-Generation Report Card

Difference

Tom Peters

Tom Peters

The [TOTAL] Victory of the Professional Service Firm*

*I think

Tom Peters

Tom Peters

Tom Peters

Tom Peters

Tom Peters

Tom Peters

Tom Peters

Tom Peters'
eters' Manif
Manifestos
estos 2002: The BRAWL
BRA
WITH NO RULES
RULES Series
Ser

Tom Peters' Manifestos 2002: The BRAWL WITH NO RULES Series

Web
World
2001

Education
and 3rd Millennium Work:
We've Got It Dangerously

Wrong

The 100% Solution...Now!

Tom Peters
Tom Peters

Copyright material for electronic edition:
In Search of Excellence: A Three-Generation Report Card. Copyright © 2001 by Excel/A California Partnership.
This edition published by Tom Peters Company Press. For information, address SelectBooks, Inc., New York,
New York.
All rights reserved. Published in the United States of America. No part of this book may be used or reproduced in
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First Edition
ISBN 1-59079-012-X
For more of Tom’s ideas, visit www.tompeters.com.
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But I have chosen these topics for two particular reasons. you will find no half-way suggestions here! 3 . I think they (1) are important and (2) present enormous opportunities and (3) are grossly neglected by most organizations.” – Paul Allaire.“We are in a brawl with no rules. (Rodale’s Synonym Finder: Manifesto … Proclamation. I have a Radical Point of View about each one. Xerox MANIFESTO. Broadcast. Broadside. Pronunciamento. Airing. The word suggests a pointed view. Second. First. Declaration. former CEO.) And “Pointed View” is precisely the idea of this series of “booklets” – in what we call The BRAWL WITH NO RULES Series. Each booklet is an expanded chapter of my cornerstone day-long seminars.

I was fascinated by organizations. too.D. Interest rates (prime). Navy Seabees. Norway. Because “everybody” was “doing it” in 1970. didn’t. I wandered around. Talked to the experts. And yet McKinsey’s new chief. And others. In Search of Excellence was published to absolutely no notice. in Organizational Behavior from the Stanford Business School. And then I went to Palo Alto. 1976: McKinsey’s “Little” Project.) At Stanford I met the premier mentor in my life … Gene Webb. And it came quick – as. to San Francisco and McKinsey & Co. I did “well. A fellow traveler. “Strategy” (get the plan right. America was in the tank. 20%. And then a project. and all else will follow) was the flavor du plus ans at McKinsey. Sweden.” particularly since I had just snared a Ph.) 4 . 1973. The way people (humans!) were organized and motivated … not the Brilliance of the Strategic Plan … was actually the primary determinant of the difference between winners and losers. 10%. And BCG. Why some groups did things incredibly well. 10%. I Corps. August 1974. Worked in the White House … on drug abuse issues. that was my take. by both experiences. (Why? Simple. The weather is better in Palo Alto than in Cambridge. 1966. And was fascinated by what I encountered. I wasn’t turned off by it. Fascinated. England. Inflation. faced with apparently similar circumstances and staffed with similar people.S. I chose Stanford over Harvard because the application was due in January. a platoon commander of a construction detachment. So he asked me to “look into organizational effectiveness issues. I know exactly where my fascination with management came from. The boss (RMN) is fired.In Search of Excellence: A Three-Generation Report Card Almost 20 years ago. 1967. thought there was more to life than just the right strategy. A health glitch led to a sabbatical. Or. But that gets ahead of the story line … 1966: I Get the Bug. at least. Because … ALL OF IT … contravened conventional wisdom. in the U. And every other consultancy. on 15 October 1982. I was turned on by it. Ron Daniel.” And was “promoted” … put in a staff position in the Pentagon. Da Nang. in fact. Intrigued. Vietnam. Germany. in effect. (It was a pretty wild idea in 1976. So back West I go. Morph again. To Stanford to get an MBA. commissioned by the Big Bosses in New York. By organizations. Unemployment. The United States. Turned on.

Ah. all in all. We produced more guns. It was pretty important. In fact. The Russians did. The entrepreneurial crap was way behind us. We overwhelmed the Bad Guys with … Industrial Might. Incredibly important. They were a “pretty damn good group of companies” … circa 1982. We were invincible. The Harvard Business School. Became an avid student. What we actually did was chat with the best and the brightest … at McKinsey … among our clients … and asked them who was doing stuff right. The Russians got into space before we did. subsequently the coauthor of In Search of Excellence. we got caught up with a few flavors-du-jour. We got into it. was how to usefully spend the profits on the arts.) American management. More landing craft. politically. which had been around for a long time. And given a whole series of coincidences – not particularly interesting to anybody other than Bob and me – we ended up talking about this “excellence thing. And Churchill gave better speeches than Roosevelt. And after World War II. our industrial enterprises went back to peacetime concerns … and ruled the world. Kennedy. became The Training Ground for Captains of Invincible American Industry. Fact is. More tanks. And. Just as with the dot-com bubble of late. More trucks.Bob Waterman. Little did he know … 5 . bought my act. More planes. we lay out the quantitative criteria that led us to the choice of those companies.) John Kenneth Galbraith made that clear in his definer-of-the-age The Affluent Society. loved. And the only real issue. In the early fifties. We were now ruled by Brilliant Technocrats who oversaw Brilliant Machines. perversely. Much more.” In the book. 1982 … America “won” World War II. yes. Such was the true genesis of the 62 companies that we examined. (Wonderfully boring. (Not to take anything away from those Iowa farm boys. Atari comes to mind. (Big Corporations. It was a national crisis. Our management practices were invincible. close adviser to John F. Pax Americana. A few chinks in the armor appeared. Big time. (Whoops. the 62 were a pretty interesting lot. in terms of our psyche.) And I loved. The six foot. that was an after-thefact decision to give us legitimacy. Sputnik. We didn’t sacrifice the most bodies. But our “war machine” – starring the likes of Rosie the Riveter – took us over the top. than with that well celebrated spirit and spunk of Iowa farm boys. we produced half the world’s GDP. truth be told. 1957. The alpha and the omega. according to Galbraith. Big Business had become pretty boring.” And then pursuing “excellent companies.) Those Brilliant Machines churned out Lots of Goods. but no more than a footnote. seven inch Harvard economist said that America had pretty much gotten it nailed. loved Wang Labs. (Whoops. to some extent. it sent exactly the wrong message: Central Planning (Russian style) is Very Cool.) Yet.

Even the bastion of by-the-numbers-management. They took the Ouchi message. And I thought … The Plan Was (mostly) Bullshit. And it was important. (And the price of gas was running at about a buck a gallon. My old friend Bill Ouchi. So “smaller” made a big difference. We were simply pissed off. Another best seller. and turned up the volume. And started to embarrass us. Big time. Then it was steel. Quality. 6 . we got that man to the moon.) Then semiconductors. The Japanese cars were … Smaller … Cheaper … Better. At least not much.) An age of technocrats. No more than this. wrote a book called Theory Z. The Harvard Business Review. Bob Waterman and I fired the next shot. They knew stuff about management that we didn’t know. There was a way to manage. published an article in the house organ. producer of Robert McNamara (aka Body Count Bob). “The plan is it. And I don’t intend to vent in this paper. as I and many others saw it. Moved out of the devastation of World War II … and reconstructed its Industrial Economy. Bill Abernathy and Bob Hayes. Then it was automobiles. “Managing Our Way To Economic Decline. a JapaneseAmerican. It said that the Japanese had gotten it right. And they were going to continue to kick our butt if we didn’t get it. Yes. And if you didn’t get that … you didn’t get anything. We did. Made it to the New York Times Best Seller List.” They said we’d become obsessed by the numbers. From the beginning. That was the Shot Heard ’Round the Land.) When awakened. the Harvard Business School. Americans learn … quickly. Richard Pascale and Tony Athos. Me in particular. An age of central planning. But in Detroit … we’d been whacked.(Little has he known. (Core of the American Psyche. The abstractions. Those were the days when “fuel economy” was not a politically incorrect term. People. 1982: In Search of Excellence. In 1980. wrote The Art of Japanese Management. First it was shipbuilding. Galbraith has gotten everything wrong. concerning the demise of American management supremacy. It did something that none of Peter Drucker’s books have done. The plans. Customers. Two senior profs. So now it’s 1980. And then a couple of other of my friends. All the time. And then … 1980: Whoops! Japan got its shit together.” That was the mantra. And lost touch with the essence of enterprise. But that’s another story. “Firing a shot” was not our intent. And It Was the Japanese Way. An age of mechanical organizations. chimed in. manufacturing experts. Beat the hell out of the Russians.

and interest rates were over 20 percent. though accidental. consistent with the charge sheet in Hayes and Abernathy’s “Managing Our Way to Economic Decline. Fact is. One of them was. To the point that Business Week. among our Golden 62. some number of the companies. The book struck a chord. interviewed and interviewed and 7 . Five years later. that it said that not all Americans were idiots. I guess I have to say something. have staggered. (In fact the Big Ideas – such as. the stock market chose to crash on the pub date of Thriving on Chaos. We just aimed to look at management theorists – not the Druckers. (Though I figure. the Big Ideas held up surprisingly well.” that took us to task … as Hewlett-Packard and Digital Equipment and Disney. Management By the Numbers.) Inflation was over 10 percent. And a number of the companies that we had featured ran into very rough sledding. ran a charming cover story titled “Oops. and perhaps I’m being boastful here. We talked. at some length.”) If you look at the Eight Basics of In Search of Excellence – and we shall. What can I say? 2002: Things Heat Up Even More. Well. was brilliant. but the Karl Weicks and Jim Marches – who were looking at the world of management through very different lenses. For a number of reasons. 1977 to 1982) short: We visited.We didn’t aim to change the world. Bob Waterman and I. people are cool – have held up so well that they are now a routine part of the landscape – which usually means “Watch your back. that about 40 or 45 of them have done reasonably well. (Luck matters. and maybe I’m being overly self-serving.) But if the companies staggered. In Search of Excellence appeared at exactly the moment that American unemployment topped 10 percent. considering the quantity of yogurt that whipped through the fan in the years following 1982.) And the world (of management. customers are cool.) We had found some American Islands of Hope at exactly the right moment. And we produced … In Search of Excellence. We aimed to look at companies. (Albeit. Our timing. So we sold a ton of books. for the first time since the Great Depression. momentarily – you’ll discover that each one of them is in-your-face antithetical to conventional wisdom as served up on the banks of the Charles River. To make a long story (5 years. The Eight Basics of In Search of Excellence are pretty much intact.) The message from the so-called “best run companies” was baldly antithetical to the Harvard Business School message of the prior 40 years. not the usual suspects. (Which was the implicit message of Theory Z and The Art of Japanese Management. Very quickly. (So much for invincibility. (Only our Moms were not surprised. that were not just practicing MBN. only three years after our book appeared. among our stars.”) So what do I want to do in this paper? I want to turn back the clock. and our colleague David Anderson. And then life went on. for sure. had been taken to task in the marketplace. at least) wobbled on its axis a little bit.

But in 1978. Our systems were still quite small.interviewed … and interviewed some more. we believed in the plan … more and more … to the exclusion of all other things. as I said. at a 3-day top-management seminar. at my desk overlooking the San Francisco Bay. in March 1977. where he was an accounting professor. and started counting the planes for the Army Air Force. We won the war. Management had been “seat of the pants. (It wasn’t until about 1978 that Harvard Business School strategy prof Michael Porter wrote Competitive Strategy.” for GE or 8 . Analysis rules. Ready.. Linked back … 20 years. The “Eight Basics. at Lyford Key in the Bahamas. Siemens. the “eight basics” have stood the test of time rather well. The format I’ve chosen is a three-generation perspective. So … 1. (Truly. McNamara went to Ford. He counted the cars. (Besides I was given all of an hour.” And then World War II came along. We’ll take 1982 as a base. Bill Gates-like.) The “bias for planning” was not all bad. The Numbers ruled. and go backwards and forwards twenty years. in my McKinsey office on the 48th floor of the Bank of America tower. Fire. (And to demonstrate sheer foolhardiness. led by the toughminded Andy Pearson. about 6 a. outside of Munich. On the 20th anniversary of the book. And so. virtually unaltered. McNamara counted the planes. management-style: 1962. Bias for Action. pre-golf. over time. Life. Those points.) Eight sections follow. And he sure as hell would not put up with a 700-slide presentation.” To some extent. I boiled “it” down to eight points. We won the peace. Andy puts up with no crap. Those 62 companies. they didn’t know how many they had.) And so one morning. And that’s an understatement. Next. 1962.” All right-thinking dudes wanted to be “strategic planners. he summarized the spirit of 1962. rocking back and forth. Bias for planning. I’ll offer a word or two – no more – about 2022. One thought through “strategy.m. Robert McNamara left the Harvard Business School. And so I want to review them with you. with some 700 overheads. (Life B. Business became an abstraction. … Before PowerPoint. I was invited to speak about “the excellence stuff” to PepsiCo’s top management.P. THE PLAN WAS IT. 2002. The first real “product” was a typical (though I would like to think useful) consultant’s report. became those “Eight Basics” … the Red Meat of In Search of Excellence. 1982. Each section title is a Main Heading – verbatim – representing one of the Eight Basics of In Search of Excellence. Our enterprises had grown large.) The stuff was presented to the giant German engineering company. Aim. Think your way to success.

Fire. Fix it. victims of a minutely scheduled day. I started worrying about this almost a decade ago.) … to F. The absence of a bias for action remains – to this day – the biggest problem amongst large organizations. it seems./1982 (Ready. I overstate. In the seminal article that led to In Search of Excellence in Business Week. Forget the folks on the front line. Weren’t glued to their offices.F. They were companies that got an idea. The best plan wins. Create far too elaborate systems. Aim.A.” Which became “a bias for action” a little later. They wandered around.” We hadn’t expected it.F. We believed in planning. Out-think the competition. I talked about 9 . both of us were engineers. Bob Waterman and I wandered around. (By 1982 standards. Bias for madness.McKinsey.) … to R. Bias for action.F. They’d wander … and say the damnedest things. which is not to say 2002 “Internet Time” standards. More on that momentarily. We were distressed. And so we wandered. in the Age of Instant Obsolescence. (Hey. 2002. Think your way to a grand slam home run. encircled by secretaries and executive assistants.). Quickly. It’s a Big Deal. and brought it to fruition in my own mind. Plan too much.) 1982. Think your way to success. (You get the drift.” Or call it: Fire. I’ll stake my life on it. Systems are imperative.F. Fire. See what the hell happened. And wandered. Try it. “Let’s try it. Aim. I labeled it “Do it. Try it. Adjust based on what had happened. We talked to people at 3M. in Liberation Management.A. We wandered around. such as. I was a civil engineer./2002 (Fire. Then decided to go for it. Those who win … try some stuff … see what happens … adjust … and try something else. With little muss and fuss. but there clearly is far too much of a good thing. Call it “Life at Internet Speed. Fire. We are./1962 (Ready. It’s the only damn thing that I believe … 35 years into my professional career. but not by much. We encountered companies that didn’t necessarily … think and think and think and think and think. Period. as the age 50-ish readers will doubtless attest.) Both of us believed in analysis.) I called this … with appropriate credit to an executive at Cadbury’s who passed it on to me … the Age of Ready … Fire … Aim. Bias for action. That was the point. Fire. Big organizations think too much. It’s the biggest deal. Fire. Bob was a mining engineer. But we also saw the limits thereto. Forget the folks with dirty fingernails. Fire. eh?) From … R. At Hewlett-Packard.

Michael takes the idea of “trying stuff” to its ultimate end.” The title is also the punch line. Who the hell knows? Who the hell knows? That’s the only thing one can say. and the man-machine boundary will get very fuzzy indeed. All hell is already breaking loose. There were many important things that happened. how fast the “analytical paradigm” took hold … and then Ruled All. That is. And then “market research” arrived. as I still see it. incarnation.) 2022. the winners … from sheep shearers to blacksmiths to restaurateurs … had played that game since the beginning of (commercial) time. And I support them all. But a funny thing happened … on the way to the future. Cozy up to your customer. is the right “First Big Idea. Serious Play. Where fickleness played as central a role for computer and semiconductor makers and financial service providers … as it did for lipstick and automobile producers. “Dell Speed” and “Wal*Mart Speed” is a brand new phenomenon that requires Total Restructuring of the Enterprise and its Extended Family. Is there a better mantra for these nutty times? (And dare not allow the pricked dot-com balloon throw you off.” And its importance will only grow. My soul mate in “all this” is Michael Schrage.” No problem. He wrote a book I love so much that in a foreword I called it the “best book written about innovation.F. 2002 is chickenfeed.F. Makes sense. Computer expert and pioneer Ray Kurzweil insists we are fast approaching infinite-speed change. Close to the Customer. WORTH BILLIONS OF DOLLARS. No-brainer. and that “bias for action. 1962. Serious Play.F. Computers and computer networks will think for themselves. And then business became complicated.” in either its R. or F.A. The Very Appropriate Orientation Toward Analysis … became a “bias for abstraction. Add it all up. Get beyond the “seat of the pants. As I said. Love that. Abstract market research reveals all. Presumably. “Marketing” was a classic example.an Age of Fashion. Here’s to Serious Play! 2. All Hell Is About to Break Loose. It’s pretty amazing. And then “marketing” arrived. Customers? Who the hell is a customer? The Data Rule.” The market research was it. (What else do you need to know?) 10 .

And yet it’s exactly right.” There’s plenty of room for those marketing abstractions. Know the numbers.” (1982. … is that you get to have your cake and eat it too. we were McKinsey guys. Second. out of cigar boxes. Bob Waterman and I hardly denied the importance of the advances that had been made in marketing. Not that it had been wrong to collect and analyze the hell out of the data. I don’t denigrate any of this. And Ted Levitt and his colleagues at the Harvard Business School and other places had been right before us … when they focused on marketing analysis. Circa 1982. As in … WHERE-THE-BLOODY-HELL WAS THE C-U-S-T-O-M-E-R? We studied IBM. But there’s also room for … the human being. (Hey. But … like All Good Things … the “analytics” came to completely subsume the real world of the … livingbreathing-complaining customer. 1982. Regis McKenna. All of that’s true. Don Peppers and Martha Rogers called it the Age of One-to-One Marketing. We were “right” in In Search of Excellence. 2002. said that we have 11 . You damn well better be able to know your market.) And now … the customer & me am one. Become one with/partners with the customer. the Silicon Valley marketing guru. Close to the customer. We needed some analytics. In Search of Excellence.) It was just that we worried about the … bloodlessness of it all. First. And the magic of the Web et al. Close to the customer meant just that. in effect. We’d sold “that stuff” … time and time again … to clients of all sorts and all stripes. the customer was an abstraction (1962).I repeat. And we studied Carl Sewell’s car dealerships. That was the point of In Search of Excellence. We had tried to run the biggest of enterprises. We needed to understand the power of data. The … C-U-ST-O-M-E-R. how jargony the term … One With/Partners With the Customer … sounds. the customer became the target of “service. But that it had become … Very Wrong … to rely exclusively on the data … and to ignore the Living Customer. What we called “Stay close to the customer. And I hate that. I well know how lame. We needed some measurements. We needed some metrics. CLOSE TO THE CUSTOMER. And what we found was what subsequently became labeled as … Customer Intimacy.

Ann Livermore.000 PricewaterhouseCoopers consultants. It came in September 2000. his business partner. When Hewlett-Packard offered $18.” will clearly be staggering. (The European Union saw it differently. was that I’d heard this story.” Hewlett-Packard was looking for a difference. (Unless you’re Michael Dell. So they looked to acquire the consultants … who would integrate HP’s boxes into the enterprise strategy of HP’s clients.) One doesn’t simply Build Good Stuff. But computer “intelligence. It’s the reason GE attempted to acquire Honeywell. the idea is that “the box is not enough. But what the new technologies allow is a … synergy … symbiosis … the likes of which is tough to imagine.) But for me. I wouldn’t be in the least surprised if the term “customer” or “vendor” were nonexistent in 2022. The people who made Carrier Air Conditioners said that … “Delivering the box is not enough.” and thence “network intelligence. Or they saw the competitive problems … if one did become intimately enmeshed in the customer’s operations. president of HP’s business customer organization. (When Dell and Amazon show us what they can do … we’ll accept nothing less … from anyone. Real Title: WHO KNOWS? But perhaps Dell Computer offers a premonition. It wanted to be able to deliver the … Full Package. ever-changing webs of connection to get stuff done.entered the Age of the Never Satisfied Customer. I have no idea what’s coming down the pike. Hmmm?) Any way you want to cut the cake. I’d heard it from the folks at UTC (United Technologies Corporation). That’s the price of entry. One has to … Do More … go beyond the conventional definition of product and service. and thence superhuman. “Them” and “us” and all members of the “supply chain” form automatically guided. A premonition about what it means when Everyone Is Linked To Everyone Else. A dozen times. 2022. Funny thing. said. In a dozen months. And they decided that “building the best box” was not nearly enough.” They knew that in order to survive they had to deliver … “integrated building subsystems. the magic moment was not a Web moment.” The box plus service plus becoming your customer’s intimate. In my terms … Become One With The Customer.000. And then … Service Good Stuff. 12 .” The people who made Otis Elevators said that … “Delivering the box is not enough.000 for the services of 31. for me. We use the term “symbiosis” or “synergy” rather lightly.” (Even for a patently great engineering & manufacturing outfit like HP.000.) In 2002. “Building the best server isn’t enough.

Boss of Litton Industries. Each 3M Division was a little company … that frequently told corporate headquarters staffers where and when to get off. And not just in Texas. The Age of … ITT. the fact that it was possible to maintain small-within-big. Conglomerate! Put everything under one roof. (There barely was. bought Utah International – a mining company. (ITT owned bakery chains and telecom companies and forests and forest products and hotels and a big hunk of the insurance industry.) These three enterprises – and a few others that we looked at – “proved. Big is beautiful.) Even General Electric got into the game. 1982. Harold Geneen. Bigger is even more beautiful. 13 .” to my mind. You didn’t need to understand forest products in order to manage forest products. GE would become its own little economy. Just apply the Guaranteed American Management Principles … and voilà … you were home free. maybe there’d be only one hyper-mega-conglomerate by 1982?) The mid-sixties. I fell in love with three of the 62 companies we researched for the book: Hewlett-Packard. Of Litton Industries. (Hey. You didn’t need to understand health care in order to manage health care. tongue only half in cheek. The “big idea” was that a “good manager” could manage anything. It’s the Great American Way. that if Litton continued its current growth rate … it would be bigger than the entire world … in a mere 20 years. A Hewlett-Packard Division was a little company … that typically refused to acknowledge that there was a corporate headquarters. That is. Autonomy and entrepreneurship. Autonomy and Entrepreneurship. They performed brilliantly. there was an article in Fortune at one point which calculated. aided by vicious number-nutty central-staff thugs. The company.) Today we talk (and talk) about Jack Welch. Conglomerates bulk up. Another Numbers Nut. (Or not so little economy!) Call it the Apex of Hubris … before Japan and Germany taught us some harsh lessons. Numbers magician and Supreme Ruler of ITT. Johnson & Johnson. 3M. Utah with its raw materials “balanced” the portfolio. founded upon Thomas Edison’s inventions. And now there was the “ultimate big” model. Why not? One didn’t need to have grown up with the product. too. (As I recall. 1962. Roy Ash. I was certain the principal cause was their almost religious devotion to keeping entrepreneurial spunk alive in a highly decentralized structure. (It wasn’t ITT!) A Johnson & Johnson Division was a little company … that prided itself in telling off the headquarters flunkies. and aim to take over the world.3. But there were “management heroes” in those days.

and retain a financial stake – and perhaps even re-acquire it at a later date. “Don’t own nothin’ if you can help it. Out-source facilities management to Accenture. Most pharma research and development may be performed by small-ish bio-tech firms. (HP has become an entirely different company. (Even for the military – post 11 Sept 2001. vertical integration is mostly seen as lunacy – denying you access to the world’s best as partners. Spin in. strategist Gary Hamel sees a world marked by an accelerating asset churn rate. I studied MCI. my. Out-source your Research and Development to bio-tech start-ups. (The not-so-old days of IBM’s treating those who left as pariahs are deservedly gone in a far more dynamic world. Power through excellence at temporary virtual reach. Out-source your HR to Forum. (Corning and 3M and HP have dumped their original divisions. When you think of management gurus.) Beyond this. Spin off: Get rid of the stuff that doesn’t fit anymore. If you can. but I’m keenly aware of how hard it is to do. thence MCI could pick and choose among the Globe’s Coolest Partners – including numerous upstarts who were quietly redefining telecom technology. Perhaps you should. which owned Western Electric and thence Bell Labs.” That Gumpism is prophetic. He more or less labels the idea: Spin off. Wow!) Spin in: Follow the Cisco Systems model. Now. My. now perhaps flirting with bankruptcy. you don’t have the resources to take advantage of something great going on in the company.HP and 3M have had problems subsequently.) 14 . Spin out: Sometimes.) I’ve never lost my passion for small-within-big. The key idea was “core competence”: Unless you owned it. Many saw that as at a huge disadvantage vis-à-vis AT&T. Out-source your IS/IT to EDS. you don’t think of … Forrest Gump. Spin out. with the copyists just a heartbeat behind. for a long or short time. (Now it’s part of WorldCom. Years ago. Alas. was eventually spun out of AT&T as Lucent Technologies. so let it go independent.) Given the state of regulatory play. far more centralized in attitude and practice. That was the old mantra – based upon organizational models it had taken decades to develop. “buy” energetic companies doing leading-edge work. (There are also scores of companies – some surprisingly big – that specialize in the likes of clinical trials data management. several times renamed. rent your shoes. it manufactured nothing. MCI had developed a towering “core competence” at creating and managing Strategic Alliances (the term didn’t exist at the time). entirely new ideas about “organization” and “control” have to be developed – it’s still very much an emerging discipline. times do change. formerly part of Arthur Andersen – I’m told Accenture hired more architecture school grads this year than anyone else. (Western Electric. the ones who brung ’em. you couldn’t control it. but lacking marketing muscle to get it in the world’s larger hands fast – the kiss of death these days.) One of MCI’s top officers said he saw the restrictions on manufacturing as a striking advantage. The pharmaceutical companies may become distribution & marketing firms. when it was a much smaller firm.) Don’t own nothin’ if you can help it. and that even doing it well in 2002 is probably not an adequate defense against the upstarts redefining industry after industry. 2002.

God alone knows. Invariably.) In fact. there’s an impressive body of evidence that “built to last” was never what it was cracked up to be. spend a couple of decades at the top.) Built to flip is a different story: a company that is designed to come onto the scene. 2022. New ideas will follow upon new ideas … with reckless abandon … and unprecedented speed. in Creative Destruction. Dick Foster and Sarah Kaplan. The dot-com bubble pricking whacked a lot of stupid ideas. I was obviously flattered when NPR called In Search of Excellence one of the three great management books of the 20th century. But technological change is accelerating. Financial markets pour money into new ideas at an unprecedented rate.” The old world (including the world of In Search of Excellence. Followed by periods of consolidation. today. Permanence (the assumption in 1962. Productivity through people. And any business model or organization structure based upon permanence is doomed. Hence even those anti-complacency tools. 1962. observe.In fact. (Like these. Waves of each lasted perhaps 30 or 40 years. and even 1982) has given way to transience (the 40-yearslater idea of 2002). One of the two was Kodak: so. I wasn’t sure I really wanted to be in the same company as Frederick Taylor. per the accounting rules: an entity designed to last for perpetuity. and Jim Collins and Jerry Porras’ best selling Built to Last): Well-run companies will stand the test of time! (The basic idea of the corporation. Brilliant books by MIT’s Jim Utterback (Mastering the Dynamics of Innovation) and Harvard’s Clayton Christensen (The Innovator’s Dilemma) provide research horsepower to support the old saw that success breeds failure. (Die. that only two members of the original Forbes 100 list (1917) out-performed the stock market over the next 70 years. Built to Flip. Fast Company magazine ran a marvelous cover story in 1999 called “Built to Last v. the “autonomy and entrepreneurship” stuff – Circa 1982 – has become very problematic. and then pass on. What could be more persuasive? 15 . surprise. Which is giving way to … ??? In days gone by. 4. NPR says he’s God. and a number of good ones. It is a Perpetual & Accelerating Age of Transience. we can assert that but one pioneer has out-scored the market over the following 84 years – um. On the other hand. such as the small “independent” divisions touted in Excellence are rarely a match for the collective force of next generation rivals.) Could it be that “built to last” is an anachronism? I think there’s a plausible case – in times of madness. change the world. Employees as interchangeable parts. we had entrepreneurial bursts. The idea of “permanence” is dead. We’ll surely still see shakeouts.) And Peter Drucker says he’s God. (Author of one of the three great books of the last century. GE. for instance.

) But we were also a long way from conventional wisdom. Their work environment. He made it into the Fortune Business Hall of Fame. these days. And created an extraordinary company as a result. self-employed blacksmith. (We couldn’t have imagined. And Taylor did it. COLOR WITHIN THE LINES. BLOODY ORGANIZED … that any requirement for intelligence and ingenuity was purposefully driven out of the employee. (J. circa 1962. I don’t deny the importance of any of that. On the other hand … Enterprise … of a couple hundred years ago … was infinitely “entrepreneurial. We just listened to Ren. Dana.” That is … Totally Disorganized. And Drucker did it.Answer: Damn near anything! Enterprise was disorganized. Do what your boss tells you.) 1982. Drucker organized it. And others did it. people yield themselves with perfect docility to our molding hands. on his idea of what education ought to be circa 1906.) We basically said: “WORKERS” ARE BORN WITH BRAINS! “WORKERS” HAVE IDEAS! We were a long way from the world of today. For Henry Ford.) He was the Big Boss at the old-line automobile parts manufacturer. would be the biggest private-sector employer in the United States 20 years later. Because he said … workers have brains … workers have ideas. It needed to be organized. He was asked to park his brains at the door.” (That came a few years later.D. Truly. Is to this day. And of course became overused. Printer. Don’t express your point of view. He made a transformation. is captured all too well by Scott Adams and Dilbert. Ren McPherson taught us. People on the front line do the work. Innkeeper. And then it got organized. post-Taylor: “In our dreams. Babbitt. He treated them as heroes. Bob Waterman and I didn’t use the word “empower. And not only the blue collar dudes working in the Model A or Model T factory … but the white collar dudes. Employees were … indeed … Interchangeable Parts. that Manpower Inc. And then he went to work for Bethlehem Steel. To be an “interesting guy” before 8:00 in the morning and an interesting guy after 5:00 in the afternoon. 1962. They are the heroes. Remember him? “The organization man. (We damn near worshiped him. McNamara organized it. Productivity through people.” YE GADS!) The “employee” used to be a self-reliant. He made a revolution. Employees as interchangeable parts. But not to be an interesting guy between 8:00 and 5:00 (JDR: “perfect docility”). in 1982. (I’d add that the primary and secondary school system was a culpable co-conspirator in all this. It got so organized … SO DAMN. Who said the people … at all levels … particularly at the front line … where customer contact and 16 . Taylor organized it. Obey the rules.” The white collar sorts were … asked to park their brains at the door. Farmer. Park your brains at the door. Rockefeller.

No bull.) 2002. (Become “empowered” to grow on the job. (Dan Pink’s moniker. We’ve gone “back to the future. Rote jobs are dead … dead … dead … in 2022. But it’s still Me Inc. with no expectation of forty years’ cosseting by Big Co. the wretched tenacity of the Viet Cong had ruined Body Count Bob McNamara’s war-by-the-numbers. exhibit creativity. Me Inc. the Army says it best. (What else was a blacksmith?) Brand You. Forty-eight players. The new mantra: I am an Army of one. at least at the Harvard Business School.) When I think about “workers” in 2002. and encompass 17 . What had we learned? Not a damn thing. God alone knows! /Humans and computers converge.) That is: You and I are … In Charge of Our Lives. Sounds so trite … in 2002. (Recall. back to the days of the Independent Contractor. The new world of … Winning the Great War for Talent. (“Talent. Through spark. as a result of the new technology. IT WAS A REVOLUTIONARY MESSAGE IN 1982.. Mold them. Computers are perhaps as smart as we are.) I am CEO of Me Inc. Brand You. Stomp out their individuality. Through spunk. (Again. Army. learn much faster than we do.”) Those 48 players add up to … hundreds of millions of dollars in market valuation. For years it recruited successfully using the marvelous slogan … Be all that you can be.” That is. 2022.) The idea … in Henry Ford’s day … was to bring individuals aboard. I matter. Free Agent Nation. recently. (My moniker. (I make a difference. as the result of the new idea that people bring to their jobs – even their jobs in the military. it was the age of hands-off and management-by-abstraction. We’re in an age where economic value is created through intellectual capital. oddly. may be temporarily “on loan” to GE or CitiCorp. Indeed.) But the Army changed the slogan.) Free Agent Nation.S. (Wow. Now it’s a new world. Ah. And obviously – I’d think – what holds for the Baltimore Ravens holds equally for GE or Microsoft … or the U. Maybe. So … so … much. And so much has happened since 1982./ Who’s in charge here? Rote jobs were dying in 2002.responsibility for quality and delivery is the highest … are the ones who are … OBVIOUSLY … those most important … to your … Financial Well-Being. PERIOD. Jobs-for-life? Forget it. I think about an NFL franchise. Through creativity. They are … THE FRANCHISE. What a difference from the past. They are … TALENT. Through individuality. And so the NFL franchise honchos worry about the 48 … obsessively.

Managing By Wandering Around … courtesy Hewlett-Packard. (And if I’m premature in these prognostications.) 1982. Forget that soft crap.) 5. The hard stuff. In 1982. but the prosecution was immoral. The icon of the age of analytics-are-us run amok. Hands-on. We got on well. It was all bullshit. (Our emperors … the faculty of the HBS. Business was an abstraction. I went because I thought it was important. Bless the Japanese and their well-made cars for exposing the shabbiness of the emperor’s clothes. MBWA. Forget that people crap. The analytics. The Harvard Business School ruled. But we had a fight. And also for sure. because of Bob.) It may have been important. WHAT’S THE ROLE OF THE “ORDINARY HUMAN” IN ALL THIS? GOD ALONE KNOWS. Of course they cared about the numbers. value driven. McNamara had brought order to disorder (just like Peter Drucker) during the years surrounding World War II. By the numbers. which is very personal. Anybody could manage anything … if you were a “good manager.virtual emotion that’s indiscernible from the real thing. The analytic model ruled. Business ain’t for wimps. Business ain’t warm and fuzzy. 18 . truth be known. I wouldn’t go again. But now his “body count” logic led to the most egregious sins in Vietnam. That was the deal. collecting “gook” ears to certify the body counts … which in fact inflamed. The notion was that “winning enterprises” … were not abstractions.) But the idea was anything but. Was there for two tours. it’s only by a few years. And we did pretty damn well by it.”) That was the dictum of the time. rather than pacified. The phrase may well be trite. Business is about … the numbers. So why did we need alternatives? In my view. To the Vietnamese. to hundreds of thousands of mostly African-American privates and corporals. the enemy. and both of us loved exactly the same thing … as idea No. (I went there. value driven. doubtless. This was the essence & soul of In Search of Excellence. Learn your business at the Harvard Business School. He was the last gasp. (Especially in 2002. We thought about all the things that were in Search. Bob Waterman and I appeared on a major morning TV show to describe our new book. Hands-on. “Body Count Bob” McNamara. but they somehow (tough as you get BIG) stayed in Intimate Touch with their Employees & Customers.1. 1962.” (“Got the numbers.

We described it this way: “Hard is soft. 2002. worried about the undue and growing influence of service firms. AOL Time Warner world.000 for the services of 31. (Hey … are you struck. Schwab world. Dell world. Everything is intellectual capital. We loved Allan. Hewlett-Packard. These guys were the “appendages” just a few years ago.” We weren’t completely alone. 19 . We loved Terry. The primacy of front-line people in Dana’s scheme of things. it’s changed business. MBWA … being intimately involved with the People Who Actually Do The Work … and the People Who Actually Buy the Stuff. about two out of every three billboard ads … come from the … consultants. offers $18. (A little. Everything is service.” Etc. that when you race through airport hallways. It’s that astonishing hands-on customer service that was IBM’s trademark. Cisco world. This was the bottom line. Those hands-on “communities” (entrepreneurial divisions at HP and 3M and J&J). Because they want to add the “consultative-turnkey services” to the “top of” their (excellent-but-mundane) hardware.” The service economy is ubiquitous. whereas it was still clear that … REAL MEN MANUFACTURE STUFF. SOFT STUFF IS THE ONLY STUFF.” Right?) The notion that the “service (ideas-sans-lumps) economy” could be a big deal was … revolutionary (no kidding) … in 1982 … when we wrote In Search of Excellence. All Economic Value Creation comes from … Talent … the Brand Proposition … Intellectual Capital.) Now we don’t even talk about the “service economy. A huge idea. Microsoft world. Brand Power & Mind Power Rule! It is the age of ideas. premier lumpmaker Hewlett-Packard figured they needed PWC to the tune of $18 billion) and Accenture world. And. Bob and I had another way of looking at it.” What we were talking about … “corporate culture” … “people” … “values” … “customers” … was … in reality … “THE [REAL] ‘HARD’ STUFF. “Soft stuff” … RULES. as mentioned.000 PricewaterhouseCoopers consultants.” But in reality it was the “soft stuff.” The idea. Now they are “The Main Game. We loved the book. All of it … “soft” by the 1962 standards of the Harvard Business Review. the whole idea of In Search was … Soft Is Hard. PricewaterhouseCoopers world (remember. a year before us.MBWA. Truth be known.) Today … we talk about the primacy of “talent” … “branding” … “intellectual capital. I arrogantly think. Holy moley. Our old friends Allan Kennedy and Terry Deal wrote a book called Corporate Cultures. The “strategy stuff” … which ruled the world in 1982 … was really all about abstractions. Celera Genomics and Pfizer world. in fact.000. as I am. (We all. Soft is hard. And we basically added more fuel to their (then) contrarian fire. anyway. It was the so-called “hard stuff.000.

20 . aimed at the manufacturing environment. bookshelves groan under the weight of “Six Sigma” quality books. the Internet. where much of the entire globe’s accumulated knowledge is available.) (E.” and one thing we can’t deny is that the pace of change is accelerating. American management practices rule. We’ll buy something. 1962. We’ll turn it into gold. Madly..” baby. Well. We knew how to manage. “24/7. very cool. Yet we still don’t have much of a clue as to how to manage … brand & mind. (E. 1962.g. Read Wired. AMERICANS WERE IT. 1982. And the height of arrogance … Pax Business Americana … the “Conglomerate Movement. Taylor & Drucker & Galbraith & McNamara will lead us all to the Promised Land. And that was reflected in our business practices. Right? (I really think that’s true. Stick to the knitting. World War II less than two decades behind us.”) (Hmmmmm …) 2022. The God Complex.” on a $249. perhaps people who run NHL. Read sci-fi. NO COMPETITION. There are answers.) My take: I don’t know what’s coming. Read Scientific American. If you listen … as I do … to the likes of computer guru Ray Kurzweil … we are entering the “last phases of human dominance. Very. it didn’t work out that way. the computer will take over … within about 40 years. the unthinkable is becoming evermore thinkable.” America rules.) (Evidence: The Borders’ bus. There were “management principles” that had stood the test of time. Alas. Our share of the world’s GDP running over 50 percent. God Alone Knows. Looking back at 1982. I call it … the “God Complex. We know them. 6. Right? But the implications for … 2002 … are clear to me. at least at an elementary level. With every passing day.95 used PC purchased at eBay. Just stick to “the principles. the world of 2002 is pretty “far out. NBA franchises do. I challenge you to find a single tome on running a “scintillating R & D shop. NFL. We don’t.” We’re good managers. Beyond soft … to human irrelevance (?????). but only a fool would dismiss “far out” scenarios.” That is. But “we” … “business people” … don’t have a clue.Brand & Mind Power rules. human cloning. Big is cool. such as anything by William Gibson.. And if we’re using 2022 as our measure … we’re halfway there.g.

Not nearly. I’m confused in 2002. We watch all kinds of intelligent CEOs … Mike Armstrong at AT&T. Who the hell knows what you’re supposed to do? (I don’t.” relied significantly upon the research of UCLA Professor Richard Rumelt. What the hell do you expect me to say about 2022? I haven’t a clue! 21 . He says that the learning stuff is easy. they branched out. They try to figure out what their “core competencies” are.) My hero. He said that the winners followed a strategy of “related diversification. What do you “stick to”? I don’t know. see Appendix I. we didn’t declaim in such strong terms. Focus on those. George Fisher at Kodak … get into incredible amounts of trouble. What “is” “us”? What “isn’t”? It’s all a … GREAT EXPERIMENT. “Stick to the knitting” meant (to us) that enterprises needed to understand … What They Are Good At. Subcontract the rest. Whatever. Severely limit the core skills you keep “in-house.) Perhaps there are a small number of things that you’re really good at. I really am not clear. But the branches had something to do with the trunk and the roots. But the bigger point was just that – bigger. So how am I supposed to give you advice? 2022.” The real message of 2002 (not to mention 2022) is … God Alone Knows. It’s confusing the hell out of me. Well. Chris Galvin at Motorola. But it was pretty revolutionary. The quicksand is shifting beneath their feet so quickly.” That is. But they can’t. Whatever. Sounds pretty elementary. It had everything to do with the idea mentioned before … MBWA (Managing By Wandering Around).1982. Stick to the knitting! Bob Waterman and I said that the “conglomeration urge” was … Utter Bullshit. Truth is. Dee Hock. In 1982. The forgetting part is hard. But we suggested as much. Again – as mentioned before – the models in our minds were the likes of … 3M … HP … Johnson & Johnson. That is … you’ve got to have an … Intimate Feel … for … What You Are Doing. Founder of Visa International. With incredible speed. 2002.) (For my best effort. (But it’s not that easy. “Stick to the Knitting. He didn’t at all argue that you had to do exactly what you’d done in the past in order to do well. the chapter title. How do you forget the ones who brung you? Tough.

22 . “Friction-free. “it” (smart superstructure) was a necessary palliative to the “manage a monster out of a cigar box” mentality of the past.) Analysis. We do get points. That was the new & right & perfect world of management. New = New.7. nonetheless. That was the name of the only game. Very right. The Age of Headquarters. MBAs … are … cool. We didn’t realize just how … bulky … the superstructure was. Way. That is … We hadn’t anticipated the Internet … 2002.” We thought the “dirty fingernails” types were … in fact … the Fingernails-Worthyof-Mention Types (Who Are Close To The Employees & The Customers). lean staff. And it was a long way from where we had been in 1962. Put them in the headquarters.” Hire a bunch of smart people. We were right about that. lean staff. Simple form. Fast. Simple form. Superstructure … is … cool. Pay them a bunch. Way too far. lean staff” made sense in 1982. Yankee style. But we missed. The ones without the college degrees. Put them in staff jobs. Abstractions. 1962. Tell them to tell the “others” what to do. Blew it badly. The others: the “dirty fingernails” types.” But we had no idea how simple … or how lean. (Truth is. We said. But the idea captures the MORALLY CERTAIN spirit of the era. BUT IT WAS SO … SO … SO … SO … FAR FROM WHERE WE WERE ABOUT TO GO. lean staff. “Simple form. Where stuff doesn’t sit on people’s desks … often for days or weeks … waiting to be signed off on. That was the message. way too far. “Headquarters knows best. as mentioned several times before.” What an insane idea. A lot of sense. The ones who work in the plants. But it went too far. (To my readers under 30: YOU SIMPLY CANNOT IMAGINE THE CONTEMPT IN WHICH THE “ENTREPRENEUR” WAS HELD BEFORE ABOUT 1990. “The Line Officers Must Rule. We said that you should have a “simple form. We really blew this one. 1982. Why the hell do you think I bothered to seek an MBA at Stanford in 1970? Answer: So I could be an Instant Master of the Universe. A “friction-free” organization.) Indeed. that didn’t fully flower for about another 10 years – until 1972.

But it’s a new world order. It’s Dell World. Dell world. all the rote work can be out-sourced … or automated. Simultaneous loose-tight properties. On the other hand. Read the policy manual. Oracle World. Some sort of … instantly-linked-supply-chain-world. For a while … 23 . In the “old days” – the days of Pax Americana – we knew for sure … how to manage. And the idea of this eighth-and-last section is philosophy. “Staff functions” as we knew them … are dinosaurs. These are the … Gods of the … New Frictionless World Order. Oracle world. Dead or dying. What does the new organization look like? Weird. Frederick Taylor.000 computers a day. Computers that do all the work.” If you followed those principles … All Good Things Would Follow. As I said: holy smoke. Its “spare parts room” is 10 feet by 10 feet – 100 square feet. if there’s anything left at all … which isn’t clear … it has to be animated by Incredible Value Added. pursued the “one best way. Beyond holy smoke! Computers that think & learn. 2022. Holy smoke. Ways that were “right. New world. Schwab World. On the one hand.” “Principles of management. Follow the rules. That is. thewhole-damn-thing works with total integration … up and down the supply chain … from the suppliers’ supplier to the customers’ customer. Is there any room for people? NOT CLEAR. Dell Computer has a new factory that churns out 80.) 8.” We translated those ideas – via Peter Drucker and others – into “modern management. Weird. Very. 1962. Period.” There were “ways” to manage. he of the time and motion studies. very weird. Schwab world. (No joke.

We’ve got to make it up as we go. S. New technologies. In a recent article he said that the best advice that a leader can give is: “I DON’T KNOW. That is. Screw Around Vigorously. Screw Around Vigorously.” By saying “I don’t know. S. Bob Waterman and I believed in “tight.” We’ve got to “invent it as we go along.1982. Serious play. We’ve got to “play it as it lays. You’ve got to play.” My No. You’ve got to explore.V. So is a massive dose of autonomy. New ways of thinking. You’ve got to figure it out … for yourself. And we believed that excellent enterprises were brilliant to the extent that they espoused those Core Values … and then allowed people free reign to Do Their Own Thing … in general concord with those Core Values. So … S. It’s a new world. certain truths are important. You’ve got to become an inventor. Play it as it lays.” (My favorite management book in the last several years is Michael Schrage’s Serious Play. All the “basic principles” … including those of 1982 in In Search of Excellence … are up for grabs. at the individual and unit level. The world of 2002? We don’t have a clue.” If we’re in a brawl with no rules … then there’s only one possible strategy.A. “It’s Up To You. Simultaneous loose-tight controls. We’re going to reinvent the world … in the next 10 to 25 years … economics and politics and social interchange. 2022.” The “culture thing. Here today … WebVan tomorrow.1 mentor. What else can I say? I haven’t a clue. (And I’m not likely to be around. over the years. Business models come … and business models go.V.A.” Believed in the “values thing. Little did we know what was coming … 2002.) Former Xerox CEO Paul Allaire said that we are “in a brawl with no rules. has been the organizational guru.” We believed that there were some “core philosophies” that would mark a great enterprise. Karl Weick.V.) 24 .” a leader says. Big Time.A.

as I have discovered from doing this exercise. As to 2022 … the “datum” all my friends tell me I should be aiming for … Get A Life.) Holy smoke. but I would say that 40 years … 1962 to 2002 … is a short period. (I guess it’s because I’m 58. The Holy Smoke Age. ‘I am here to live my life out loud. Emile Zola: “If you ask me what I have come to do in this world. those “eight basics” were the transition steps from … 1962 on the one hand … to 2002 on the other hand. Now. Nonetheless. (Let alone 2022. And do business. Try anything. I’m sure that if I were rewriting the book today – and I wouldn’t.A. There are many ways that I could have attacked this issue. I often end my seminars with a quote by the great 19th century French novelist. I who am an artist. The ultimate license to … S.V. We’re reinventing the way we work. I will reply.) 25 . Age of The Internet. It’s been an amazing journey. not in a million years – I would choose other terms. And then we have 2002. the world of 1962. In 1962. How sweet it is. All bets are off. In 1982 we had been challenged. How cool. For sure. Screw Around Vigorously. (Per this paper.) Moreover. And live. In a short period of time. Assuming there is a modicum of truth to what I’ve written … relative to the migration of the Eight Basics from … 1962 … to 1982 … to 2002 … then the reality is … What a Trip. I chose to use the “eight basics” – the eight main ideas – we teased out of our enormous data set in 1982.’ ” LIVE OUT LOUD. We knew for sure that we knew everything. Try something.The “Eight Basics” Revisited. The idea that the boss should say … above all … I DON’T KNOW. I guess that’s why I’m so enamored with Karl Weick’s idea. But the stuff that we wrote in In Search of Excellence … “revolutionary” as it was at the time … was pretty much a linear extension of where we’d been in 1962. What else? It’s 2002. those “eight basics” do stand the test of time. That is. They stand the test of time in that they made a lot of sense … in 1982 … compared to where we were coming from. We weren’t so sure that we knew everything.

and that market share will not protect us. No halfway! Reluctant to work with partners who don’t share their view on this. pioneering customers who “will pull us into the future. from the next killer idea and killer entrepreneur.) No regrets at screw ups from ideas whose time had not yet come.) Alliance maniacs. This includes vendors and consultants and. Insanely energetic. Great regret at time wasted on “me too” products and projects. Agile. as much as 180 degrees. Potential Machines. 26 . especially those that overturn their own conventional wisdom. Aim to “change the world.Appendix I Tomorrow’s Orgs: Itinerant Potential Machines Talent pool to die for. than market share growth. (Dell & Microsoft & AOL were made in a day – damn near. “Where will we be in 10 years?” Appreciate “market creation” as much. especially. repeatedly and publicly. Willingness to scrap pet projects. Visionary leadership matched by leaders with shrewd business sense: “How do we turn a profit from this gorgeous idea?” Can’t answer the question.” Work with a changing portfolio of state-of-the-art partners throughout the supply chain. rent your shoes. If you can. Well-rewarded for what they do. but are ready to jump at opportunities. but don’t expect the company necessarily to be around forever. Don’t assume that “the best resides within.” Love the new technologies. Run the whole damn company and relations with all outsiders on the Internet at Internet speed. A need to win. and it’s often needed. and usually more. Have a vision to be unique-dramatically different. in today’s and tomorrow’s volatile world. Are insanely aware that a market leader is always in a precarious position. as a matter of routine.” and don’t mind if that’s accompanied by high market cap. No expectation that they’ll stay forever.”) Technology-Network fanatics. with the world’s best folks – and we don’t give a damn whether they are on our payroll or not. (Even if it means a billion dollar write-off. Attitude: “We want to work on this project. Don’t know what comes next. which aims to change the world.” Brassy-but-grounded leadership. Want to “make their bones” in “the revolution. Talent pool plus. Willing to fail. and quickly change direction. Say “I don’t know” – and then unleash the talent. Value creativity and are willing to take (career-threatening) risks. Willingness to partner with world’s best experts as needed.” (Forrest Gump: “Don’t own nothin’ if you can help it. Youthful.

... We are RE-INVENTING THE WORLD . My chosen vehicle: a three-generation look. and 20 years forward (mgt.. But how sweet that is! THE WORK MATTERS! White Collar Work – 90+% of all work – will be totally reinvented in the next 10 or so years. But so has “everybody . Projects you’ll be bragging about 10 years from now! (3) Encourage every “employee” to pursue a spicy Brand You strategy – creating a Unique & Valuable Identity that’s worth a fortune to the employee & the company. The stakes amount to TRILLIONS of dollars. it is the much deeper Target Innovation. These “PSFs” become..” “Excellent” products &services are quickly becoming “ordinary” and thence “commoditized. Is it maddening? ABSOLUTELY.else. the primary engines of company value added through the accumulation of intellectual capital.Tom Peters’ MANIFESTOS2002: The BRAWL WITH NO RULES Series WE ARE IN A BRAWL WITH NO RULES.. The evidence is clear! (1) WOMEN ARE BETTER LEADERS THAN MEN (under the conditions of the New Economy). Damn Few “Get It” . even in 2001. That is.. Strategies: (1) Turn “Departments” into full-fledged.” This MANIFESTO summarizes 9 powerful strategies for combatting Creeping & Ultimately Fatal Commoditization. and 20 years back (mgt. (This booklet is the basis for our three book “Reinventing Work” series: The Professional ServiceFirm50 . “We” have gotten (lots) better at everything.. THE DEATH KNELL FOR “ORDINARY”: PURSUING DIFFERENCE. WHADDANOPPORTUNITY!) 27 .) Our story: WOMEN ROAR. practice. I aim to “beat the press” in terms of commentary.. is not “target marketing”. OR GET RUNOVER. in turn. (2) WOMEN ARE THE WORLD’S BIGGEST MARKETOPPORTUNITY (BY FAR) . It was fun to write – and I hope of some small use.. (Several of these strategies are the subject of separate MANIFESTOS below. The Project50 . from scratch! WHAT A THRILL! (And a thrill of the sort no one’s had for centuries.” Is it confusing? OF COURSE. incidentally. WOMEN RULE..... The Brand You50. I look at 1982 (the book’s pub date) . In Search of Excellence marks its 20th anniversary in 2002. Believe it! (And . I am so psyched to be around for “all this. for-profit “PSFs” – Professional Service Firms.) WOMEN ROAR: THE NEW ECONOMY’S HIDDEN IMPERATIVE...) IN SEARCH OF EXCELLENCE: A THREE-GENERATION REPORT CARD. We get to make it up as we go along.. (2) Turn all “the work” into no-bull WOW! PROJECTS. and are wildly underserved. 2002). GET WITH THE PROGRAM . (“The” answer.) We are in a BRAWL WITH NO RULES. circa 1962) ..

And Big Bucks Advertising. the PEOPLE. TALENT! There’s an All-out War for Talent.) Forget clever marketing programs.. Pulling it off is an entirely different matter. They’re all important. Right?) BOSS-FREE IMPLEMENTATION OF STM/STUFF THAT MATTERS! Forget the “power-less-ness” CRAP! (Try that Sob Story somewhere else! Gandhi . And APPLE. Etc.. Most businesses that fail (99 percent ?) do so because of lousy execution. Etc. over the long haul. Honor YOUTH. PAY Incredibly Well. of course. or We Ain’t Serious. Talent Am Us . OBVIOUS.FIRST AND FOREMOST .. Companies that will thrive in Weird Times will systematically adopt Weird Practices. AN ABIDING OBSESSION WITH TALENT! NFL Franchisevariety. the potential payoff is humongous. You need Execution. So .DESIGN MINDFULNESS.... “product” or “service.. PERIOD. impossible. Recruit & Promote Weird Talent. Seek out THE STRANGE ONES. Any idiot can write a strategic plan.. but the icing on the cake. (P.“It” = An Abiding Passion for DESIGN. and Changed the World!) THE Success Secret: Recruiting often “powerless” but always passionate allies . The politics. That is. BRANDING IS EASY. (TALENT-IS-ALL!) Provide Awesome OPPORTUNITIES.S. The character.. “It” works (understatement) for SONY.. Or Soaring Vision. (And. who will play with you 28 . Ballet Company-style. and impossible. were NO SHIT POWERLESS . The cake itself is an unswerving & crystalclear answer to some “simple” questions: WHO ARE WE? HOW ARE WE (no bull) UNIQUE? WHY DOES IT MATTER? WHO CARES? IS IT COMPELLING ENOUGHTO VAULT 1000s OF EMPLOYEES OUT OF BED IN THE MORNING? Branding That Matters is difficult (KNOW THYSELF!) and simple (KNOW THYSELF!). And BLOOMBERG... And WALT DISNEY.: Talent= The Brand . and King .. The systems.. And BODY SHOP. Etc.. And compelling logos. WINNING? Easy! Like Branding: Easy.. GETTING WEIRD & STAYING WEIRD: CREATING & MAINTAINING THE HIGHSTANDARD DEVIATION ENTERPRISE. and de Gaulle . design is the Hidden Engine powering the Brand Promise.. That is: Hang With Weird Customers & Suppliers.” STUPID! Brand Inside Rules! Few businesses fail for want of a Great Strategy... WINNING THE ALL-OUT WAR FOR TALENT DEMANDS ... Appoint Weird Boards. Pursue DIVERSITY. Standard Deviation is a statistical measure of Weirdness... And GILLETTE.” Hence. THE CASE FOR “BRAND INSIDE”: IT’S THE “ORGANIZATION. Innovation is “easy”: Force yourself/organization into Constant & Intimate Contact with The Weird Ones! (It is that EASY!) THE HEART OF BRANDING. The culture. Design turns out to be the Principal Reason we LOVE or HATE something . WHY DO SO FEW PAY (OBSESSIVE) ATTENTIONTO IT? Again. And BMW..

Kook to Kook. Hewlett-Packard offered $18 Billion for PricewaterhouseCoopers consultants. And perfectly unfit to be part of the new Brain & Productivity-based Economy! 29 .. GE. but.. Period. Oracle. ALL ACTIVITIES TO THE WEB(internal & external affairs) .. Enemy No. undoes everything we’ve done in education for the last 100 or so years.1: An epitaph that reads: HE WOULDA DONE SOMEREALLY COOL STUFF .: Potential = UNLIMITED.. Education for the Third Millennium . Or.) WEB WORLD: THE 100% SOLUTION . One at a Time.) (DREAM BIG. And “Sign Up. EDUCATION AND THIRD MILLENNIUM WORK: WE’VE GOT IT DANGEROUSLY WRONG.. Ready.. It turns out docile – sit in your seat. OR NOTHING. Cisco . DREAM BOLD. Others know more than I about The Web..S.. That is: Freak to Freak. NOW! Key term: 100%. I/we have written extensively about the “Professional Service Firm Model. But I have developed an Unshakeable & Radical Point of View: THE WHOLE NINE YARDS. stage left!) PSF UNBOUND: THE (TOTAL) VICTORY OF THE PROFESSIONAL SERVICE FIRM. rather. I assiduously believe that you must convert .and try out your seriously-cool-but-untested ideas... skulk off . (Whoops. Our Hero? Michelangelo: THE PROBLEM IS NOT THAT OUR AIM IS TOO HIGH AND WE MISS IT. Fine. But ...” I/we have seen it as a way to save one’s soul (or at least one’s job) in the face of the Coming White Collar Tsunami.Fire!Aim. For the BOLD. Message: THE WEB AIN’T AHALF-WAY SORTA THING! (P. BUT THAT IT IS TOO LOW AND WE HIT IT.. Our “system” works. or risk losing the business. My contention is that the “internal” “professional services” will – quickly – become The Engine of Value Creation. it is their world.F!A. the Internal PSFs will have to join together to create value. Or. BUT HIS BOSS WOULDN’T LET HIM. To be sure. In damn near any firm. there’s a Bigger Picture.. Tommy – “products” (humans) perfectly fit to spend 40 years in a Ford Model T plant.. Making a “great box” was not enough.” I call it:F2F/K2K/1@T/R.. worked. Taking lessons from Schwab. still.