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TomPeters’EXCELLENCE!

FoodserviceEquipmentDistributorsAssociation31March2016/Tucson(Slidesavailableat)ConradHilton

CONRAD

HILTON,atagalacelebrating

hiscareer,wascalledtothepodiumandasked,

“Whatwerethemostimportantlessonsyoulearnedinyourlonganddistinguishedcareer?”

Hisanswer…“Remember

totucktheshowercurtaininsidethebathtub.”

“EXECUTIONIS

STRATEGY.”

—FredMalek

SoftwareIsEatingtheWorld

“Softwareiseatingtheworld.”—MarcAndreessen“Automationhasbecomesosophisticatedthatonatypicalpassengerflight,ahumanpilotholdsthecontrolsforagrandtotalof…3

minutes.[Pilots]havebecome,it’snotmuchofanexaggerationtosay,computeroperators.”

Source:NicholasCarr,“TheGreatForgetting,”TheAtlantic,11.13“[MichaelVassar/MetaMedfounder]iscreatingabetterinformationsystemandnewclassofpeopletomanageit.‘Almostallhealthcarepeoplegetisgoingtobedone—hopefully—byalgorithmswithinadecadeortwo.

Weusedtorelyondoctorstobeexperts,andwe’vecrowdedthemintobeingsomethinglikefactoryworkers,wheretheirjobistoseeonepatientevery8to11minutesandimplementaby-the-booksolution.I’mtalkingaboutcreatinganew‘expertprofession’—medicalquants,almostlikehedgefundmanagers,whocoulddothehigh-levelanalyticalworkofdirectingalltheinformationthatflowsintotheworld’sharddrives.

DoctorswouldnowbeaidedbyVassar’snewinformationexpertswhowouldbeaidedbyadvancedartificialintelligence.”—NewYork/0624.13“Humanlevelcapabilityhasnotturnedouttobeaspecialstoppingpointfromanengineeringperspective....”

Source:IllahRezaNourbakhsh,ProfessorofRobotics,CarnegieMellon,

RobotFutures

AlphaGoBeatsGoGrandmaster

“Thistechnologyisgoingtocutthroughtheglobaleconomylikeahotknifethroughbutter.

Itlearnsfastandlargelyonitsown.

It'swidelyapplicable.

Itdoesn'tonlymasterwhatithasseen,itcaninnovate.

Forexample:someoftheunheardof

movesmadebyAlphaGowereconsidered‘beautiful’bytheGrandmasteritbeat.

“LimitedAGI/ArtificialGeneralIntelligence

(deeplearninginparticular)

willhavetheabilitytodonearlyanyjobcurrentlybeingdone

byhumanbeings—fromlawyerstojudges,nursestodoctors,drivingtoconstruction—potentiallyatagrandmaster'slevelofcapability.

Thismakesitabuzzsaw.

“Veryfewpeople—andImeanveryfew—willbeabletostayaheadofthelimitedAGIbuzzsaw.

Itlearnssoquickly,thefateof

peoplestrandedinformerfactorytownsguttedby‘freetrade’islikelytobethefateofthehighestpaidtechnorati.

Theysimplydon'thavethecapacityto

learnfastenough

orbecreativeenoughtostayaheadofit.”

—JohnRobb/GlobalGuerrillas/03/12/16

IoT/InternetofThingsIoE/TheInternetofEverything

M2M/Machine-to-MachineUbiquitouscomputingEmbeddedcomputingPervasivecomputingIndustrialInternetEtc.**********

*Estimated212BILLIONconnecteddevicesby2020—IDC**EstimatedIoTmarketsize,nextdecade:$14.4trillion

***“By2025IoTcouldbeapplicableto$82trillionofoutputorapproximatelyonehalftheglobaleconomy”—GE(GEisliterallybettingitsexistenceandthefutureontheIoT,Bloomberg/03.2016)****100,000,000,000,000[100trillion]sensors/2030—MichaelPatrickLynch,TheInternetofUsPrimarysource:“TheBigSwitch,”CapitalInsightsSensorPills:“ProteusDigitalHealthisoneofseveralpioneersinsensor-basedhealthtechnology.Theymakeasiliconchipthesizeofagrainofsandthatisembeddedintoasafelydigestedpillthatisswallowed.Whenthechipmixeswithstomachacids,theprocessorispoweredbythebody’selectricityandtransmitsdatatoapatchwornontheskin.Thatpatch,inturn,transmitsdataviaBluetoothtoamobileapp,whichthentransmitsthedatatoacentraldatabasewhereahealthtechniciancanverifyifapatienthastakenherorhismedications.

—RobertScobleandShelIsrael,AgeofContext:Mobile,Sensors,DataandtheFutureofPrivacyChina/Foxconn:

1,000,000

robots/next3yearsSource:RaceAGAINSTtheMachine,ErikBrynjolfssonandAndrewMcAfee“Since1996,manufacturingemploymentinChinaitselfhasactually

fallen

byanestimated

25percent.That’sover

30,000,000

fewer

Chineseworkersinthatsector,evenwhileoutputsoaredby70percent.

It’snotthatAmericanworkersarebeingreplacedbyChineseworkers.It’sthatbothAmericanandChineseworkersarebeingmademoreefficient[replaced]byautomation.”—ErikBrynjolfssonandAndrewMcAfee,TheSecondMachineAge:Work,Progress,andProsperityinaTimeofBrilliantTechnologies20/5

WelcometotheAgeofSocialMedia:

“Ittakes20

yearsto

buildareputationand5minutestoruinit.

Also,theInternetandtechnologyhavemadecustomersmoredemanding.,andtheyexpectinformation,answers,products,responses,andresolutionssoonerthanASAP.”

—JohnDiJulius,TheCustomerServiceRevolution“Whatusedtobe“wordofmouth”isnow“wordofmouse.”Youareeithercreatingbrandambassadorsorbrandterroristsdoingbrandassassination.”—JohnDiJulius,TheCustomerServiceRevolution:OverthrowConventionalBusiness,InspireEmployees,andChangetheWorldWelcometotheAgeofSocialMedia:

“Thecustomerisincompletecontrolofcommunication.”—JohnDiJulius,TheCustomerServiceRevolution:OverthrowConventionalBusiness,InspireEmployees,andChangetheWorld“We’removingtowardanageofnearlyperfectinformation.Reviewsites,shoppingappsonsmartphones,anextendednetworkofacquaintancesavailablethroughsocialmedia,andunprecedentedaccesstoexpertsmeanthatconsumersoperateinaradicallydifferent,sociallyinteractiveinformationenvironment.*…Consumerstendtomakebetterdecisionsandbecomelesssusceptibletocontextorframingmanipulations.Forbusinesses,itmeansmarketingischangingforever.”

—ItamarSimonsonandEmanuelRosen,AbsoluteValue:WhatReallyInfluencesCustomersinthe

Ageof(Nearly)PerfectInformation

*Google:

ZMOT/84

(ZEROMomentOfTruth)“IwouldratherengageinaTwitterconversationwithasinglecustomerthanseeourcompanyattempttoattracttheattentionofmillionsinacovetedSuperBowlcommercial.

Why?Becausehavingpeoplediscussyourbranddirectlywithyou,actuallyconnectingone-to-one,isfarmorevaluable—nottomentionfarcheaper!.…“Consumerswanttodiscusswhattheylike,thecompaniestheysupport,andtheorganizationsandleaderstheyresent.Theywantacommunity.Theywanttobeheard.“[I]fweengageemployees,customers,andprospectivecustomersinmeaningfuldialogueabouttheirlives,challenges,interests,andconcerns,wecanbuildacommunityoftrust,loyalty,and—possiblyovertime—helpthembecomeadvocatesandchampionsforthebrand.”—PeterAceto,CEO,

Tangerine

(fromtheForewordtoAWorldGoneSocial:HowCompaniesMustAdapttoSurvive,byTedCoine&MarkBabbit)

Going“Social”:Location/SizeIndependentRiverPoolsandSpas/$5M/WarsawVA“Today,despitethefactthatwe’rejustalittleswimming

poolcompanyinVirginia,wehavethemosttraffickedswimming

poolwebsiteintheworld.Fiveyearsago,ifyou’daskedmeandmybusinesspartnerswhatwedo,theanswerwouldhavebeensimple,‘Webuildin-groundfiberglassswimmingpools.’Nowwesay,‘Wearethebestteachers…intheworld…onthesubjectoffiberglassswimmingpools,andwealsohappentobuildthem.’”(Mktg:$250K-$20K)—MarcusSheridan,inJayBaer,Youtility:WhySmartMarketingIsAboutHelp,NotHype

SeymourCT/MotuekaNZ/WarsawVA/FairfieldOH/FrankenmuthMIRock!

*LarryJanesky/SeymourCT/BasementSystemsInc.++

*DryBasementScience++/27patents*400dealers/6countries*Awards+++++*>$100,000,000TheMagiciansofMotueka(PLUS)!W.A.CoppinsLtd.*(CoppinsSeaAnchors/PSA/paraseaanchors)*Textiles,1898;thriveon“wickedproblems”—e.g.,U.S.NavySTLVAST(SmallToLargeVehicleAtSeaTransfer);customfabricfromW.WigginsLtd./Wellington(specialtynylon,“Dyneema,”fromDSM/Netherlands)

RetailSuperstars:Insidethe25BestIndependentStoresinAmerica

—byGeorgeWhalinJUNGLEJIM’SINTERNATIONALMARKET,FAIRFIELD,OH:

“Anadventurein‘shoppertainment,’beginsintheparkinglotandgoesonto1,600

cheesesand1,400varietiesofhotsauce—nottomention12,000winespricedfrom$8-$8,000

abottle;allthisisbroughttoyouby4,000vendors.Customersfromeverycorneroftheglobe.”BRONNER’SCHRISTMASWONDERLAND,FRANKENMUTH,MI,POP5,000:

98,000-square-foot“shop”features6,000

Christmasornaments,50,000

trims,andanythingelseyoucannamepertainingtoChristmas.…”Source:GeorgeWhalin,RetailSuperstars:Insidethe25BestIndependentStoresinAmerica“BETHEBEST.IT’STHEONLYMARKETTHAT’SNOTCROWDED.”From:RetailSuperstars:Insidethe25BestIndependentStoresinAmerica,GeorgeWhalinHiddenChampions*ofthe21stCentury:SuccessSecretsofUnknownWorldMarketLeaders/

HermannSimon(*1,2,or3inworldmarket;<$4B;lowpublicawareness)Baader(Iceland/80%

fish-processingsystems)Gallagher(NZ/electricfences)W.E.T.(heatedcarseattech)Gerriets(theatercurtainsandstageequipment)Electro-Nite(sensorsforthesteelindustry)EsselPropack(India/toothpastetubes)SGS(productauditingandcertification)DELO(specialtyadhesives)Amorim(Portugal/corkproducts)EOS(lasersintering)Beluga(heavy-liftshipping)Omicron(tunnel-gridmicroscopy)Universo(wristwatchhands)DicksonConstant(technicaltextiles)O.C.Tanner(employeerecognition/$400M)Hoeganaes(powdermetallurgysupplies)MichaelRaynorandMumtazAhmed:THETHREERULES:HowExceptionalCompaniesThink*:1.Betterbeforecheaper.2.Revenuebeforecost.3.Therearenootherrules.(*Fromadatabaseofover25,000companiesfromhundredsofindustriescovering45years,theyuncovered344companiesthatqualifiedasstatistically“exceptional.”)JeffColvin,Fortune:“TheEconomyIsScary…ButSmartCompaniesCanDominate”:TheymanageforVALUE—notforEPS.TheygetRADICALLYCUSTOMER-CENTRIC.THEYKEEPDEVELOPINGHUMANCAPITAL.“‘Commodity’isastateofmind.ANYTHINGcanbeDRAMATICALLYdifferentiated.”BoBurlingham,

SmallGiants:CompaniesThatChoosetoBeGreatInsteadofBig)UPS

to

UPS

“Rolls-RoycenowearnsMORE

fromtaskssuchasmanagingclients’overallprocurementstrategiesandmaintainingaerospaceenginesitsellsthanitdoesfrommakingthem.”—EconomistUPS

to

UPS“BigBrown’sNewBag:UPSAimstoBetheTrafficManagerforCorporateAmerica”

—Headline/BW

“UPSwantstotakeoverthesweetspotintheendlessloopofgoods,informationandcapitalthatallthepackages

[itmoves]represent.”

“It’sallaboutSOLUTIONS.Wetalkwithcustomersabouthow

torunbetter,stronger,cheapersupplychains.Wehave1,000engineerswhoworkwithcustomers…”

—BobStoffel,UPSseniorexecUPS=

UnitedProblemSolvers*

*Servicemark

“THEGIANTSTALKINGBIGOIL:HowSchlumberger

IsRewritingtheRulesoftheEnergyGame.”:

“IPM[INTEGRATEDPROJECTMANAGEMENT]straysfrom[Schlumberger’s]traditionalroleasaserviceproviderandmovesdeeperintoareasoncedominatedbythemajors.”—BusinessWeek

I.LANInstallationCo.(3%localmarketshare)

II.GEEKSQUAD.(30%localmarketsharewithnamechange.)

III.AcquiredbyBestBuy.

IV.FLAGSHIPOFBESTBUY’s

WHOLESALE“SOLUTIONS”

STRATEGYMAKEOVER.

WhatareyouINCREDIBLYGOODat?(Andwhatareyouordinaryat?BEBRUTAL.)Whatareyou“BESTINTHEWORLD”at?(The“RiverPoolsandSpasRule”)3.Isyourservicespackage“WILDLYIMAGINATIVE”?(AndgrowingconstantlyviaTGRs,etc.?)4.Whatshareofprofitcomesfromwhatshareofcustomers?(The“>100%+RULE”)(The“TomSturgessRule”)(Prune???)Whatisyourcustomer/vendorvisitationschedule(The“LouGerstner/1-yearrule”)6.Isyourstaff“INSANELYWELLTRAINED”?

18Seconds

“Thedoctorinterruptsafter…**Source:JeromeGroopman,HowDoctorsThink18…

18…seconds!

SuggestedCoreValue#1:

“WeareEffectiveListeners—wetreatListeningEXCELLENCE

astheCenterpieceofourCommitmenttoRespectandEngagementandProfitabilityandGrowth.”“PEOPLEBEFORESTRATEGY”

“PEOPLEBEFORESTRATEGY”—Leadarticle,HarvardBusinessReview.July-August2015,byRamCharan,DominicBarton,andDennisCarey“Youhavetotreatyouremployeeslikecustomers.”

—HerbKelleher,uponbeingaskedhis“secrettosuccess”

Source:JoeNocera,NYT,“PartingWordsofanAirlinePioneer,”ontheoccasionofHerbKelleher’sretirementafter37yearsatSouthwestAirlines(SWA’spilotsuniontookoutafulladinUSAToday

thankingHKforallhehaddone);acrossthewayinDallas,AmericanAirlines’pilotswerepicketing

AA’sAnnualMeeting)1996-2014/Twelvecompanieshavebeenamongthe

“100besttoworkfor”intheUSAeveryyear,forall16yearsofthelist’sexistence;alongtheway,they’veadded/

341,567newjobs,orjobgrowthof+172%:

Publix

WholeFoods

Wegmans

Nordstrom

CiscoSystems

Marriott

REI

GoldmanSachs

FourSeasons

SASInstitute

W.L.Gore

TDIndustries

Source:Fortune/“The100BestCompaniestoWorkFor”/0315.15

“Shyp,acompanythatpicksup,packages,andshipsitemsforitsusers,madeasimilartransitiontohiringemployeesforsomerolesinJuly.Inablogpost,ShypCEOKevinGibbonexplainedthatthechangewas"aninvestmentinalonger-termrelationshipwithourcouriers,whichwebelievewillultimatelycreatethebestexperienceforourcustomers."

–SarahKessler,FastCompany,0329.16,

“WhyANewGenerationOfOn-DemandBusinessesRejectedTheUberModel”

(“Theideathatan‘UberforX’modelcouldfitanyserviceprovedarrogant,especiallyforcustomer-servicefocusedstartups.”)Training=Investment

#1!

(The“6/2/3Rule”/Askthegeneral&boomercaptain.)

THEFOURMOSTIMPORTANTWORDSINANYORGANIZATIONARE…

“WHATDOYOUTHINK?”

Source:courtesyDaveWheeler,postedat“Employeeswhodon'tfeelsignificantrarelymakesignificantcontributions.”

—MarkSanbornCEODougConant

sent30,000

handwritten‘Thankyou’notestoemployeesduringthe10years[approx10/day]heranCampbellSoup.

Source:BloombergBusinessWeek

“Itmaysoundradical,unconventional,andborderingonbeingacrazybusinessidea.However—asridiculousasitsounds—joyisthecorebeliefofourworkplace.Joyisthereasonmycompany,MenloInnovations,acustomersoftwaredesignanddevelopmentfirminAnnArbor,exists.Itdefineswhatwedoandhowwedoit.Itisthesinglesharedbeliefofourentireteam.”

—RichardSheridan,Joy,Inc.:HowWeBuiltaWorkplacePeopleLove…………..…TGR>TGW

Customersdescribingtheirserviceexperienceas“superior”:8%Companiesdescribingtheserviceexperiencetheyprovideas“superior”:80%—Source:Bain&Companysurveyof362companies,reportedinJohnDiJulius,What'stheSecrettoProvidingaWorld-classCustomerExperience?

“MayIcleanyourglasses,sir?”Get’EmAwayFromtheATMandIntotheBranches:

7X.

7:30A-8:00P.Fri/12A.

7:30AM=7:15AM.

8:00PM=8:15PM.

(+2,000,000dogbiscuits)

Source:VernonHill,Fans,NotCustomers(thestoryofCommerceBank,

thefolkswhorevolutionizedEastCoastretailbanking)

“Courtesiesofasmallandtrivialcharacter

aretheoneswhichstrikedeepestinthegratefulandappreciatingheart.”

—HenryClay

TGRs(onsteroids):

L(Very)BTs

Bigcarts=

1.5XSource:WalmartLasVegasCasino/2X:

“WhenFriedman

slightlycurved

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