Sermon on the Valley: A Review of 'Re-imagine!' by Tom Peters
What strikes one at the first look at Re-imagine! is its looks. Tom Peters chose Dorling Kindersley, known for their atlases, as publisher for his book. 'Design: The 'Soul' of New Enterprise' is the title of Chapter 10. Design is very much at the core of the book too as Tom Peters makes a case for companies to redesign themselves.
Re-imagine! opens with the metaphor of New War, using 9/11. Just as 'a tiny band of fundamentalists humbled the world's only super power', big enterprises too are vulnerable at the hands of disruptive upstarts. Perpetuity is nonsense. Jim Collins (of Built to last) got it wrong. It is survival of the fittest, not the fattest. There is dire need for organizations to transform themselves.
Re-imagine! essentially addresses the American audience although there are many chapters that could interest non American readers too. Just as there has been 98.5% reduction in the blue-collar manpower requirement, white-collar jobs too are under trouble. According to Jeff Immelt, the CEO of GE, 75% of jobs in GE will disappear in 3 years. A bureaucrat is an expensive microchip. Embrace the model of the PSF (Professional Services Firm) such as McKinsey. Tom Peters laments that there are hardly any books on PSFs except a few including one by him.
The section titled 'new bus!ness new brand', easily the most interesting part of the book, deals with experience, dream business, design, beautiful systems and the heart of branding. Over the years, services have come to dominate the business. Tom Peters draws attention to how product companies like IBM, AT&T, Ericsson and GE Power Systems have progressed 'from Product Provider to Solutions Impresario' and aim at giving great experience to their customers. Quoting a friend, Tom Peters describes various levels in the value chain, viz.. 'The raw-materials economy', 'The goods economy', 'The service economy' and 'The experience economy'. The 'experience bit' adds the major chunk of the revenue. What Harley-Davidson sells is 'the ability for a 43-year-old accountant to dress in black leather, ride through small towns, and have people be afraid of him'. Lest it may sound undermining products, Tom Peters adds that the integrated solutions stuff 'makes sense if the original product (that is, the 'price of entry') ...is great. Not good, but great'. Also you can focus either on creating major revolutions in products or providing integrated solutions, not both.
What is the next level above experience? It is 'embracing the dream business'. Ferrari is a dream product while Hyundai is a common product. Marketing of dreams is called dreamketing by Longinotti-Buitoni, former Ferrari North America CEO. While it is exciting to read this chapter, one doesn't agree with Tom Peters here as it is rather over simplified. Just as one can infuse emotion into common products, one can also innovate by stripping the emotional appeal and offer a functional product. Anita Roddick's (whom even Tom Peters extols repeatedly) Body Shop is a cosmetics company that reduced the price by doing away with glamour and fancy packaging, emphasizing the use of natural ingredients and healthy living.
How can an individual (read American, although others too may need this in the near future) survive and succeed in the present times? By taking wow projects that make a difference. And rate each project on a scale of 10, where 10 is for aiming to change the world. What if one doesn't have the power or rank? Getting things done doesn't have anything to do with power or rank. What one needs are passion, imagination and persistence.
What about the boss? How can he change the status quo? Ordering systematic change is a waste of time. In stead the boss must wander around, discover heroes and show their work as demos to prove that such things are doable within the company. And tell stories to fire the heroes in the making. Also hang out with weird to think weird.
Re-imagine! worships Steve Jobs and companies like Netscape. Silicon Valley is the model. Change the world like Netscape and die fast. While Netscape did change the world, its death was premature. In stead of celebrating its end, one will expect to know from the book the strategy to avoid it (such as staying below Microsoft's radar). Companies like GE, IBM and Dell are also repeatedly mentioned but there is no in-depth analysis of their success.
Re-imagine! is a collage of exciting, weird, outrageous and subversive ideas. It excites and even shocks one by its audacity, which can help in forcing one to think in the process. The book makes a case for action as against strategy and planning. This could be to correct the excessive reliance on strategy and planning over the years but it can lead to another danger of acting without any business strategy which is crucial to achieve innovation. Tom Peters often sounds like a missionary. While the book is by and large inspiring, it may ward off some readers who will find it flashy and not offering solutions to business problems. Re-imagine! essentially addresses those who ride their Harley Davidsons, carry their iPods and swear by Steve jobs. It does not go beyond reaching those who are already converted, although its portrayal of the contemporary business world could be instructive to a larger audience.