Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation— now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point! To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Celebrating you! Over-rated: Big companies! “Cool” industries! Famous CEOs! Over-rated: Big companies! “Cool” industries! Famous CEOs! You don’t get better by being bigger. You get worse.” Dick Kovacevich: “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics #1 Exporter? #4 Japan #4 Japan #2T China #2T USA #4 Japan #2T china #2t USA #1 Germany Reason!!! Mittelstand Over-rated: Big companies! “Cool” industries! Famous CEOs! Jim’s Group Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group etc. PRSX/Paragon Railcar Salvage* *Salvaged railcars into bridges, etc. *Lived in same town all adult life *First generation wealthy/no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dullnormal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko Over-rated: Big companies! “Cool” industries! Famous CEOs! Mission impossible? $36B/’98 minus $675M/‘07 Market capitalization lost per day, 19982007: $10,000,000/Day Over-rated: Big companies! “Cool” industries! Famous CEOs! What’s “Left”? SMEs! “Real” industries! Excellent CEOs! Tom Peters’ X25* EXCELLENCE. ALWAYS. Mind Consulting/Bologna 09 November 2007 *In Search of Excellence 1982-2007 All you need to know … “… a blinding flash of the obvious” —Manny Garcia All you need to know … “A man without a smiling face must not open a shop.” —Chinese Proverb This is it: All you need to know … “How to flush $500,000 down the toilet in one easy lesson!!” TP: < CAPEX > People! This is it: All you need to know … R.O.I.R. Return On Investment In Relationships “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” —Dale Carnegie “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay “Happy Birthday!” “The deepest human need is the need to be appreciated.” William James THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. The only thing you need to know … Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in your long and distinguished career?” His immediate answer: “remember to tuck the shower curtain inside the bathtub” Hands On! People! Relationships! “Sweat the small stuff!” Tom Peters’ X25* EXCELLENCE. ALWAYS. Mind Consulting/Bologna 09 November 2007 *In Search of Excellence 1982-2007 1982. (NOVEMBER) A BOOK. Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence EXCELLENCE. ASPIRATION. 2006. Why in the World did you go to Siberia? An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 2007. SEPTEMBER. SYDNEY. DRUCKER TRIBUTE. “I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed … In passionate pursuit of jointly are … perceived soaring purpose and personal and community and client service Excellence. “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX EXCELLENCE. “the rules.” Cause Space (worthy of commitment) (room for/encouragement for initiative) Decency (respect, humane) “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a He was seriously interested in who you were and what you had to say.” college president. Sara Lawrence-Lightfoot, Respect Cause Space (worthy of commitment) (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) Cause Space Decency service (worthy of commitment) (room for/encouragement for initiative-adventures) (respect, grace, integrity, humane) (worthy of our clients’ & extended family’s continuing custom) excellence servant leadership (period) Cause Space Decency service excellence servant leadership EXCELLENCE. “one idea.” 1966-2007. What makes God laugh? People making plans! Try it. Try it. Try it ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up t. Try it. Try it. try “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg Culture of Prototyping “Effective prototyping may the most valuable core competence an be innovative organization can hope to have.” —Michael Schrage “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec try. Miss. READY. FIRE! No try. No deal. “You miss 100% of the shots you never take.” —Wayne Gretzky EXCELLENCE. INNOVATION. JOB ONE. ALWAYS. INNOVATE. OR. DIE. InnoTacs revenue matters most The Commerce Bank Model “Cost cutting is a death spiral.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman “Our whole story is growing revenue.” —Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting) The Commerce Bank Model “over-invest in our people, over-invest in our facilities.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman We become who we spend time with The “Hang Out Axiom”: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board We become who we spend time with ii WikiWorld: “The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07 Educate for creativity “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class “Every child is born an artist. The trick is to remain an artist.” —Picasso Foster independence Muhammad Yunus: “All human beings are entrepreneurs. When we were in the caves we were all selfemployed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006 Race up & up & Up the “valueadded ladder”: “solutions” The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Services Goods Raw Materials Race up & up & Up the “valueadded ladder”: “Experiences” “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage “The [Starbucks] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District Manager Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials <TGW vs. >TGR [Things Gone WRONG/Things Gone RIGHT] SingaporeCandy (Operational Excellence+) 3-cent lemon! Disney’s Parking Lot Attendants = Alpha and Omega winning through “design” “Design is treated like a religion at BMW.” —Fortune Race up & up & Up the “valueadded ladder”: “dreams come true” “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the We stand facing the fifth kind of society: the Dream Society. … Future products will computer. have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials <TGW vs. >TGR [Things Gone WRONG/Things Gone RIGHT] imagination unbound! Single greatest act of pure imagination Women as innovation force! “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 Pursuing humongous “new” markets “Women are the majority market” —Fara Warner/The Power of the Purse ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% Repeat: “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15 most significant variable in every “The sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women, Jeffery Tobias Halter The Perfect Answer Jill and Jack buy slacks in black… Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse “We simply had stopped being relevant to women.” —Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”) “Mostly Moms” “Women were either ignored in favor of focusing on men— generally considered the industry’s most frequent users and therefore its most important consumers—or they were cast in the role of moms who were simply conduits to their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom” “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom” 10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men? “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006 system. “new” markets ii !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the next twentyfive years. We have arrived! “Marketers attempts at reaching those over 50 have been miserably No market’s motivations and needs are so poorly understood.” unsuccessful. —Peter Francese, founding publisher, American Demographics Conscious measurement How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Wow”/“Rock the World” Scale? Innovation Index: EXCELLENCE. BEDROCK. LEADERSHIP. 10Ps. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for , trust.” —Howard Schultz, Starbucks (IBD/09.05) Leader Job One Paint Portraits of Excellence! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge BZ: “I am a … Dispenser of Enthusiasm!” PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “The role of the Director is to create a space where the actors and become more than they’ve ever been before, more than they’ve dreamed of being.” actresses can —Robert Altman, Oscar acceptance speech PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “You must be the change you wish to see in the world.” Gandhi “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore (Strategy + Business #45) PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. potent. Positive. “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “Dennis, you need a … ‘To-don’t ’ List !” PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE i. Potent. Positive. ‘do’ “Leaders people. Period.” —Anon. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” —Warren Bennis & Patricia Ward Biederman, Organizing Genius “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE ii. Potent. Positive. “I can’t tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to allconference and All-America teams.” —Bo Schembechler (and John Bacon), “Recruit for Character,” Bo’s Lasting Lessons PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE iii. Potent. Positive. “Diverse groups of problem solvers— groups of people with diverse tools— consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE iv. Potent. Positive. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek !!!!!!!!!!!!!!! 14 168* to *Leadership Positions/D&T/1992-2002/WIAR (Women’s Initiative Annual Report) Period??!!* Start: 3 0f 14 18 months later: 10 of 18 *AIM/September 2007 PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE v. Potent. Positive. PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE vi. Potent. Positive. 2 per Year/ 20 per Decade = Excellence + Legacy PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE vii. Potent. Positive. Brand = Talent. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo