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RAO - Recession as Opportunity with Tom Peters

Yes, it’s RAO not ROA. Instead of Return on Assets, Tom Peters wants us to think about Recession as Opportunity. We really should.

Tom spent several decades and three recessions studying some of the top companies across all industries to find out what works and what doesn’t during recessionary times. Companies such as Nucor, Dana, Rubbermaid, Ryder, Unilever, Union Pacific Railroad, Lincoln Electric, Scandinavian Airlines, Hewlett Packard, General Electric, 3M and Sun Microsystems were all part of his research. Think you can learn something from these companies? We think you can.

Lucky for us, Tom outlined six critical strategies for recessionary times. "Smart Moves for Tough Times" is what he likes to call it. We call it "necessary and very relevant" for everyone to see and then implement. It really does make sense that we should now be focusing on world-class quality, customer service, and speed and he emphasizes that this focus can only be achieved through attitude, trust, and action.

Strategy number one is to redouble employee involvement and continuous improvement activities. The absolute sharing of all information with everybody during these times is essential because they have already heard the rumors. He further explains that this is crucial to cost saving measures because the sharing of information will help companies find where the "slop" is and cut it.

Tom’s second strategy is that "Pain starts at the top and moves to the bottom." He believes that this is the pinnacle to trust during a recessionary time and that all the efforts a company has made with their employees around trust and attitude can be destroyed in a very short period of time because of "perception." We are all very aware of this concept with the recent news stories about golden parachute bonuses etc.

"Partners in Peace, Partners at War" is what Tom likes to call his third strategy. Bring the outsiders in and share the news, information and pain with your suppliers and vendors. A recession is the time to work with your partners and vendors instead of making them the enemy.

"Quality NOW" - This is the "Golden Moment" to really get serious about world-class quality. Tom stresses this very passionately and with good cause. The PQC (Poor Quality Costs) is up to 25% gross revenues in manufacturing sectors and up to 40% of gross revenues in service sectors. During a recession, could you afford 25% or 40% of your gross revenues disappearing due to poor quality?

Speed up your competing-in-time programs and reduce the amount of time it takes to develop and deliver new products and improvements. In his fifth strategy, Tom believes that this is the time to take a competitive edge and be the first amongst your competitors to launch a new product.

Tom’s sixth and final strategy concludes with an extremely passionate conversation about not cutting the budgets in advertising, employee training, and information technology. Tom reiterates that this is the most common mistake that companies make during recessionary times and backs up his theory with real life examples of companies that DIDN’T do this and reaped the benefits.

The video recaps the first four steps that everyone should take today to start thinking in RAO. This program is essential to any company operating today. We feel so strongly that you should see this and share it with everyone in your organization that we are offering this program on our online LMS system for a one-day, unlimited amount of views for only $99.00. If you prefer the DVD, you can purchase it for $395.00.

Even though Tom created this program for the last national recession, we believe that if you are serious about surviving this recession, then you should use this program as your starting point.

If you are interested in some recent blogs from Tom himself on the recession, you can look here:
http://www.tompeters.com/entries.php?rss=1&note=http://www.tompeters.com/blogs/main/010654.php
http://www.tompeters.com/entries.php?note=010803.php
http://www.tompeters.com/entries.php?rss=1&note=http://www.tompeters.com/blogs/main/010792.php
http://www.tompeters.com/blogs/freestuff/uploads/BlackSwan44_100508.doc
http://www.tompeters.com/entries.php?note=010726.php

This week’s bingo number: O71

Someone MUST be getting close!

Posted under What’s New, Tom Peters by Stewart on Feb 26, 2009 | Comments: 0 | Post a comment»

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