The Tom Peters Seminar

Crazy Times Call for Crazy Organizations

1. TOWARD THE ABANDONMENT OF EVERYTHING

In today’s economy, traditional business theories no longer hold sway. To cope with the changing business conditions, a completely new yet rational model is required for effective and profitable business organizations. The successful organization of the future will have the ability to manage the human imagination, because it is the imagination of the workers that will create the market value of the corporation of the future.

The world is currently in the middle of a once-every-two-centuries force upheaval. The technology revolution is combining with the results of the global village concept to touch every business on earth. This is more than just the introduction of the information economy – it is the “Age of the Imagination.” To survive, everyone and every company must be willing to change. Only those with a passion for learning and adapting can possibly prosper.

The intellect content and value of almost every product is growing continuously. For example, a new $700 camera might have only $60 worth of parts – the rest of the value is generated by its intellectual value. The market value of many companies used to be based on the value of its hard assets. Today, the vast bulk of the market value of any business is derived from intangibles such as goodwill, brand names or the ideas in the heads of the company employees.

2. DISORGANIZING TO UNLEASH IMAGINATION

The new engine of progress is to split huge corporations up into independent units which function as fully blown business operations in their own right. These newly independent units allow the company to structure itself to bring intellect and imagination to bear whenever an unexpected business opportunity arises. The structure also allows each unit to stand on it’s own two feet by reporting directly on its own operations rather than as part of a huge conglomerate.

Many successful companies are now disbanding corporate offices and forming the company into a vast array of small, stand-alone business operations which are completely autonomous. In fact, these small units are run as stand-alone organizations which assume responsibility for their own futures. The small self-contained company units are organizing around core competencies and delivering exceptional service add-ons. That means concentrating on business strengths, taking away all non-essential elements and leveraging key skills to the maximum.

Small units have a sharp focus on their core competences that is impossible to recreate in a large organization. The genuine independence of the small units allows the large organization to deal with the unknown. It also unleashes tremendous creative energy as the small units attack the market from a variety of specific angles.

3. TURNING EVERY JOB INTO A BUSINESS

The most effective and most valuable employees in any company are the ones who act as if they owned the company themselves. In other words, the best employees are entrepreneurs and independent contractors in their own right.

Creating zest and enthusiasm in any job is of vital importance. In fact, any job can and should be carried out thoroughly and professionally. The trick is to change the employees perception of his role in the company. If you can change their way of thinking from being a “slot-filler” on an organizational chart to an indispensable element in the customer service chain, you’ll be well on your way.

The average employee can actually deliver far better qualities of service than their job demands. But most employees only deliver what is expected of them by their bosses. If their motivation changes from working to please their boss to working to meet a customer’s requirements, there is an incredible leap in productivity and effectiveness. The key is to imbue each employee with a sense of trust, a sense that they are the key element – and then get out of their way and let them deliver.

4. THINKING LIKE AN INDEPENDENT CONTRACTOR

Achieving the mind-set of an independent contractor is the key to job security. Contractors aren’t concerned with how long their lunch hours are, or where their car park is. They focus solely on adding value through the delivery of professional services. The key issue is not how long have you worked at that company but which projects have you successfully completed and which projects will you tackle in the future?

As a boss, have all your staff update their resumes every quarter. Compare this quarter’s resume with last – are they getting noticeably better? If not, you’ve got a real problem. Rather than detracting from job security, this idea actually increases the security of the workers – and ensures the company is getting full value from that particular employee.

5. THE CORPORATION AS A ROLODEX

The most effective (and profitable) structure for the corporation of the future is a small core of permanent staffers who protect the company’s central competitive advantage, and a vast network of specialists (represented by names in a rolodex) who can be utilized as the need arises. Corporations can then focus solely on the key things they do well and gather together other individuals on an as-needed basis.

Most of the work in advanced economies will be carried out by a network of specialists who can gather from anywhere in the world, perform a specific role and then disband or move onto the next project.

The flexible company organization addresses the key issue of business today – today’s work is totally unpredictable. Think of the outsourcing of skill sets on an as-needed basis as “just-in-time talent” – the equivalent of “just-in-time shipping” in an industrial setting, which has revolutionized the efficiency of modern manufacturing companies.

6. CREATING A CORPORATE TALK SHOW

An economy based on information rather than materials is hard to describe, and even harder to visualize. The key to creating value becomes capturing and applying knowledge and experience. The ongoing goal becomes to continuously develop, utilize and leverage knowledge within the company.

Computers and telecommunication advances have, for the first time in history, made it possible for a company to be organized like a continual television chat show. Employees in one part of the world can have a direct input into projects on the other side of the world, and so on.

In effect, the headquarters of the past business models becomes replaced by an information network running throughout the entire company. Knowledge is the all-important asset, and the management and transfer of knowledge is a key corporate role. Electronic networks become a tool to support the company’s practice and culture.

7. CREATING THE CURIOUS CORPORATION

In the modern business environment, the only companies which will flourish are crazy, zany, effervescent and fun places to operate. Only in this type of corporate setting can the key creative talents and imaginations flourish.

Not only must the modern organization be flexible, it must be curious enough to meet the customer’s needs in ways that will stand out in the crowded marketplace. Most companies and most organizations are quite simply boring –sand traps of sobriety in a world that demands and rewards creativity. You can’t generate genuine breakthroughs by doing things the same way everyone else does.

8. TOWARD WOW!

The playing field is now level in terms of product quality. The real success stories of the future will not only have high quality – they will also have an indefinable razzle-dazzle that will be the key to their market success.

The key link between customer experience and repeat business is an emotional one. The distinguishing feature of the successes of the future will be qualities such as glow, tingle or wow – that is, emotional reactions that are caused by new creative product features that bewitch, dazzle and intrigue new customers. In the past, companies tried to improve their products by cutting down on the number of “things gone wrong”. In the future, success will be directly proportional to the number of “things gone right.”

9. TOWARD PERPETUAL REVOLUTION

The only way to keep your organization up to date with the changing requirements of the market is to be in a state of perpetual revolution. Tearing down the existing structure again and again, and continuing doing so, is the only possible way to keep moving ahead.

An obsession for action over everything else is essential. If your company isn’t making mistakes from time to time, you’re not at the leading edge of anything.

“Every organization has to prepare for the abandonment of everything it does.”
-Peter Drucker

“All good work is done in defiance of management.”
-Bob Woodward

“What a distressing contrast there is between the radiant intelligence of the child and the feeble mentality of the average adult.”
-Sigmund Freud

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