Re-imagine’s Requisites:
The Leadership
11
Tom Peters & Russell Reynolds/
Washington DC/04.28.2004
Slides at …
tompeters.com
It is the foremost task—
and responsibility—
of our generation to
re-imagine our
enterprises, private
and public —from the Back
Cover, Re-imagine
Context: The Change Tsunami
Jobs
Technology
Globalization
War, Warfighting & Security
Jobs
New Technology
Globalization
War, Warfighting &
Security
“14 MILLION
service jobs are in
danger of being
shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
“Income Confers No
Immunity as Jobs
Migrate”
—Headline/USA Today/02.04
“There is no job
that is America’s
God-given right
anymore.”
—Carly Fiorina/ HP/
01.08.2004
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/08.18.03
Jobs
Technology
Globalization
War, Warfighting &
Security
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century:
1000X
tech
change than 20th century (“the ‘Singularity,’ a merger between
humans and computers that is so rapid and profound it
represents a rupture in the fabric of human history”)
Ray Kurzweil
E.g. …
Jeff Immelt: 75% of “admin, back
room, finance” “digitalized” in
years.
Source: BW (01.28.02)
Jobs
Technology
Globalization
War, Warfighting &
Security
“Asia’s rise is the economic event
of our age. Should it proceed as it
has over the last few decades, it
will bring the two centuries of
global domination by Europe and,
subsequently, its giant North
American offshoot to an end.”
—Financial Times (09.22.2003)
“The world has arrived at a rare
strategic inflection point where
nearly half its population—living in
China, India and Russia—have been
integrated into the global market
economy, many of them highly
educated workers, who can do
just about any job in the world.
We’re talking about three billion
people.” —Craig Barrett/Intel/01.08.2004
China
Roars!
1990-2003: Exports 8X
($380B); 6% global exports
2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
1998-2003: 45,000,000 layoffs in
state sector; offset by $450B in
foreign investment; foreign
companies account for 50+%
of exports vs. 31% in Mexico,
15% in Korea.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
200 cities with
>1,000,000
population.
Source: “China Takes Off”, David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
World economic
output: U.S.A., 21%;
EU, 16%; China, 13%
(2X since1991)
Source: New York Times/12.14.2003
Indian GDP/1990-2002: Ag,
34% to 21%; services,
40% to 56%
Source: The Economist/02.04
Level 5 (top)
ranking/Carnegie Mellon
Software Engineering
Institute: 35 of 70
companies in world are
from India
Source: Wired/02.04
Jobs
Technology
Globalization
War, Warfighting
& Security
“This is a dangerous world and
it is going to become more
dangerous.”
“We may not be interested in
chaos but chaos is interested
in us.”
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century
The
Leadership
11
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Talent Management
In an age of value-added through
imagination, creativity and
intellectual capital … the leader’s
Job One is the recruitment,
development and retention of
awesome talent.
Brand =
Talent.
Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
“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
Model
25/8/53
Sports Franchise GM
“In most companies, the Talent Review
Process is a farce. At GE, Jack Welch and
his two top HR people visit each division
for a day. They review the top 20 to 50
people by name. They talk about Talent
Pool strengthening issues. The Talent
Review Process is a contact sport at GE; it
has the intensity and the importance of the
budget process at most companies.” —Ed
Michaels
“Our business needs a massive
transfusion of talent, and talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, BusinessWeek, 11.20.00
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
Talent
Department
People Department
Center for Talent Excellence
Seriously Cool People Who Recruit
& Develop Seriously Cool People
Etc.
DD$21M
I AM A TALENT FANATIC. I STACK
UP WITH THE BEST FOOTBALL
COACHES. OUR TALENT IS ON
QUESTS TO RE-IMAGINE
TOMORROW. THE TALENT I
RECRUIT AND DEVELOP IS MY
PREMIER LEGACY. (Scale
of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Metabolic Management
The “metabolism” of enterprisecompetition-invention has
speeded up remarkably. It is the
leader’s mission to increase—and
manage—the Metabolic Rate of her
or his organization.
“How we feel about the evolving future tells us who we
are as individuals and as a civilization: Do we search
for stasis—a regulated, engineered world? Or do we
embrace dynamism—a world of constant creation,
discovery and competition? Do we value stability and
control or evolution and learning? Do we think that
progress requires a central blueprint, or do we see it
as a decentralized, evolutionary process?? Do we see
mistakes as permanent disasters, or the correctable
byproducts of experimentation? Do we crave
predictability or relish surprise? These two poles,
stasis and dynamism, increasingly define our political,
intellectual and cultural landscape.” —Virginia Postrel,
The Future and Its Enemies
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
“We are in a
brawl with no
rules.”
Paul Allaire
“Strategy meetings held once
or twice a year” to “Strategy
meetings needed several
times a week.”
Source: New York Times on Meg Whitman/eBay
“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.”
Kevin Kelly
The Kotler Doctrine:
1965-1980: R.A.F.
(Ready.Aim.Fire.)
1980-1995: R.F.A.
(Ready.Fire!Aim.)
1995-????: F.F.F.
(Fire!Fire!Fire!)
“Rather than have massive armies
that people can go along and
inspect, it is now about having
rapidly deployable expediency
forces that can be dropped by
land, sea or air and with full
support.” —MoD official, on Defense Secretary Geoff
Hoon’s defense white paper (12.2003)
“If Microsoft is good at anything, it’s
avoiding the trap of worrying about
criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through
version after version, until they get
something good enough. Then they
leverage the power they’ve gained in
other markets to enforce their standard.”
Seth Godin, Zooming
WE ARE ON A PERMANENT HIGH.
WE LIVE ON SPEED. WE TACK
AND JIBE ON A NANOSECOND’S
NOTICE. RECRIMINATION IS
MINIMAL. ACTION RULES. I AM
PROACTIVE AROUND THE CAUSE
(Scale of
1 to 10?)
OF URGENCY.
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Technology Management
The Internet and other associated
technologies are changing …
everything. The leader must take
direct charge of the full-bore
implementation of the new
technologies. The wise leader is
his own CIO.
square feet
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from the lab to
X-ray to records to physician order entry. Patients don’t have to
wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is
immediately sent an email telling him his patient has shown up.
… It’s wireless in-house. We have 800 notebook computers that
are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll go out and wire
their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.” —David
Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)
“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made
one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The
implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an
ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen
(much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures
to allow intelligence analysts and attack planners to work directly together.
Their favorite tool, incidentally, was instant messaging over a secure
network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/
OCT2002
TECHNOLOGY CHANGES
EVERYTHING. I AM A TRUE
BELIEVER. NOW IS THE MOMENT
FOR INSANELY BOLD
INVESTMENT AND TOTAL
CORPORATE RE-IMAGINATION.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Barrier Management
The “corporate metabolism” cannot
be speeded up and the new
technologies cannot be fully exploited
unless all barriers to X-functional
communication (throughout the entire
supply and demand chain) are
destroyed. The leader must lead—get
directly involved in the minutiae of
this STRATEGIC task.
“The organizations we created have
become tyrants. They have taken
control, holding us fettered, creating
barriers that hinder rather than help
our businesses. The lines that we
drew on our neat organizational
diagrams have turned into walls
that no one can scale or penetrate
or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs of Staff
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
“Ebusiness is about rebuilding
the organization from the
ground up. Most companies today
are not built to exploit the Internet.
Their business processes, their
approvals, their hierarchies, the
number of people they employ … all of
that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
BARRIERS MUST GO. PERIOD. I
AM INTIMATELY INVOLVED WITH
THE GRUBBY DETAILS OF TOTAL
PROCESS RE-DESIGN. WE WILL
NOT PARTNER WITH THOSE THAT
(Scale of
1 t0 10?)
DON’T “GET IT.”
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Forgetful Management
The new competitive realities
demand that we turn our backs on
the ones who brung us. Every
leader needs a FORMAL
“forgetting strategy.”
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957
to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market
Forget>“Learn”
“The problem is never how
to get new, innovative
thoughts into your mind,
but how to get the old
ones out.”
Dee Hock
“FORGET IT” IS MY MISSION AND
MANTRA. WE MUST SEVER
MANY/MOST OF OUR TIES TO THE
PAST … AND IMAGINE
COMPLETELY NEW WORLDS.
EVERYONE KNOWS THAT
“FORGETTING” IS MY PASSION.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Metaphysical Management
A brand new value proposition is
emerging. We are moving toward
more and more ethereal
“products” and “services.” The
leader must oversee this
process—become the
Metaphysician-in-Chief.
“While everything may
it is also
increasingly
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, Unique Now ... or Never
“We make over three new
product announcements a
day. Can you remember
them? Our
customers
can’t!”
Carly Fiorina
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.”
ecompany.com (E.g., UPS Logistics manages the logistics
of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA
dealers)
And the Winners Are …
Televisions –12%
Cable TV service +5%
Toys -10%
Child care +5%
Photo equipment -7%
Photographer’s fees +3%
Sports Equipment -2%
Admission to sporting event +3%
New car -2%
Car repair +3%
Dishes & flatware -1%
Eating out +2%
Gardening supplies -0.1%
Gardening services +2%
Source: WSJ/05.16.03
IBM/Q3/10.15.03/Rev: +5%
Services/Consulting: +11%
Software: +5%
Hardware: -5%
PCs: -2%
Technology/Chips: -33%
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
Experience: “Rebel Lifestyle!”
“What we sell 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.”
Harley exec, quoted in Results-Based Leadership
WHAT CAN BROWN DO FOR YOU?
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
“Lexus sells its cars
as containers for
our sound systems.
It’s marvelous.” —Sidney
Harman/
Harman International
Duet … Whirlpool … “washing machine” to
“fabric care system” … white goods: “a sea of
undifferentiated boxes” … $400 to $1,300 …
“the Ferrari of washing machines” …
consumer: “They are our little mechanical
buddies. They have personality. When they are
running efficiently, our lives are running
efficiently. They are part of my family.” …
“machine as aesthetic showpiece” … “laundry
room” to “family studio” / “designer laundry
room” (complements Sub-Zero refrigerator and
home-theater center)
Source: New York Times Magazine/01.11.2004
“Most executives have no
idea how to add value to a
market in the metaphysical
world. But that is what the market
will cry out for in the future. There
is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin
et al.]
15 “Leading” Biz Schools
Design/Core: 0
Design/Elective: 1
Creativity/Core: 0
Creativity/Elective: 4
Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002
I FULLY COMPREHEND THAT THE
“BASIC VALUE PREMISE” IS
SHIFTING … DRAMATICALLY AND
RAPIDLY. I AM WHOLLY
COMMITTED TO BECOMING
“MASTER METAPHYSICIAN.”
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Opportunity Management
The two biggest (by far) “trends”
are ignored—or at least not treated
as Strategic Priority One—by
most. Women! Boomers &
Geezers! Why? (And … what does
the leader plan to do about it?)
Women & the
Marketspace.
?????????
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%
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.”
“He simply wants the transaction
to take place. She’s interested in
creating a relationship. Every place
women go, they make
connections.”
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
‘How was school today?’ a girl
usually tells her mother every
detail of what happened, while a
boy might grunt, ‘Fine.’ ”
EVEolution
“Women don’t buy
They
join them.”
brands.
EVEolution
2.6
vs.
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
Psssst! Wanna
see my “porn”
collection?
Boomers &
Geezers.
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
44-65: “New
Consumer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Consumer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
“Sixty Is the
New Thirty”
—Cover/AARP/11.03
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
I GET IT! WOMEN! BOOMERS &
GEEZERS! IT’S WHERE THE LOOT
IS! WE ARE “GOING STRATEGIC”
ON THIS! (Scale
to 10?)
of 1
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Portfolio Management
We must think of the “rosters” of
talent, customers, suppliers, leader,
projects, initiatives—and the Board—
in terms of portfolios. I.e.: Is our
portfolio as strange as these strange
times demand? The leader is a “V.C.”
(venture capitalist) creating and
managing several strategically vital
portfolios.
“Good management was the
most powerful reason [leading
firms] failed to stay atop their
industries. Precisely because these firms
listened to their customers, invested aggressively in
technologies that would provide their customers more
and better products of the sort they wanted, and
because they carefully studied market trends and
systematically allocated investment capital to
innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
The
High Standard
Deviation
Enterprise.
THINK WEIRD:
Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
COMPETITORS: “The
best swordsman
in the world doesn’t need to fear
the second best swordsman in the
world; no, the person for him to be afraid of is
some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the
thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not
to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
“To grow, companies need
to break out of a vicious
cycle of competitive
benchmarking and
imitation.” —W. Chan Kim & Renee Mauborgne,
“”Think for Yourself —Stop Copying a Rival,” Financial
Times/08.11.03
Employees: “Are there
enough weird
people in the lab these
days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Audie Murphy was the most
decorated soldier in WW2.
He won every medal we had
to offer, plus 5 presented by
Belgium and France. There
was one common medal he
never won …
… the Good
Conduct medal.
We become
who we hang
out with!
I AM A “V.C.” I OBSESS ABOUT
MY VARIOUS “ROSTERS”—
EMPLOYEES, CUSTOMERS,
ETCETERA. I MEASURE MY
ROSTERS’ “WEIRDNESS
QUOTIENT.” (Scale
to 10?)
of 1
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Failure Management
Screwing up is more important
than ever in strange times. The
screw-up rate is the best indicator
of sufficiently rapid adaptation.
The leader must “manage” the
screw-up process—literally.
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
“Perfection is
achieved only by
institutions on
the point of
collapse.”
— C. Northcote Parkinson
“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.”
Kevin Kelly
Silicon Valley Success
[Failure?] Secrets
“Pursuit of risk”: 4 of 20 in V.C.
portfolio go bust; 6 lose money;
6 do okay; 3 do well;
1 hits the jackpot
Source: The Economist
Excellence =
1 in 20
“... 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
DG to TP: “Sam
is not afraid
to fail.” *
*NASA failing #1, from the shuttle disaster report (July 2003):
“fear of retribution by lower-level employees.”
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
WE DO NO “WITCH HUNTS”!
WE FULLY UNDERSTAND THAT
WE ARE AS GOOD AS OUR
“EXCELLENT FAILURES.” WE
CHERISH THE BOLD AND
BLOODIED ONES. (Scale
1 to 10?)
of
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Cause Management
People “sign up” for causes worth
pursuing. Turning the enterprise
into a cause-worth-committing-to
is a primary task of the leader.
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
“Management has a lot to do
with answers. Leadership is a
function of questions. And the
first question for a leader
always is: ‘Who do we intend
to be?’ Not ‘What are we going
to do?’ but ‘Who do we intend to
be?’” —Max DePree, Herman Miller
Good to Great: Fannie Mae …
Kroger … Walgreens … Philip
Morris … Pitney Bowes … Abbott
… Kimberly-Clark … Wells Fargo
AGENDA SETTERS: “Set the Table”/
Pioneers/ Questors/ Adventurers
US Steel … Ford … Macy’s … Sears …
Litton Industries … ITT … The Gap …
Limited … Wal*Mart … P&G … 3M …
Intel … IBM … Apple … Nokia … Cisco
… Dell … MCI … Sun … Oracle …
Microsoft … Enron … Schwab … GE …
Southwest … Laker …People Express
… Ogilvy … Chiat/Day … Virgin … eBay
… Amazon … Sony … BMW … CNN …
WE WILL SUCCEED TO THE
EXTENT THAT OUR TEAM
“CAN’T WAIT FOR THE
WEEKEND TO END.” WE AIM TO
DENT THE UNIVERSE! (Scale
of 1 t0 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management
The Leadership11
Passion Management
Passion moves mountains.
Creating a “passionate enterprise”
is a modern leadership imperative.
“A leader is a
dealer in
hope.”
Napoleon
(+TP’s writing room pics)
BZ: “I am a …
Dispenser of
Enthusiasm!”
“You can’t behave in a
calm, rational manner.
You’ve got to be out there
on the lunatic fringe.” — Jack
Welch, on GE’s quality program
The Re-imagineer’s Credo … or,
Pity the Poor Brown*
Technicolor Times demand …
Technicolor Leaders and Boards who recruit …
Technicolor People who are sent on …
Technicolor Quests to execute …
Technicolor (WOW!) Projects in partnership with …
Technicolor Customers and …
Technicolor Suppliers all of whom are in pursuit of …
Technicolor Goals and Aspirations fit for …
Technicolor Times.
*WSC
Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.
2. Disrespect for Tradition.
3. Totally Passionate (to the Point of Irrationality) Belief in What
We Are Here to Do.
4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”
5. A Maniacal Bias for Execution … and Utter Contempt
for Those Who Don’t “Get It.”
6. Speed Demons.
7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)
8. Passionate Hatred of Bureaucracy.
9. Willingness to Lead the Customer … and Take the Heat Associated
Therewith. (Mantra: Satan Invented Focus Groups to Derail True
Believers.)
10. “Reward Excellent Failures. Punish Mediocre Successes.”
11. Courage to Stand Alone on One’s Record of Accomplishment
Against All the Forces of Conventional Wisdom.
12. A Crystal Clear Understanding of Brand Power.
“In Tom’s world it’s always
better to try a swan dive and
deliver a colossal belly flop
than to step timidly off the
board while holding your
nose.” —Fast Company /October2003
I AM AN … ENTHUSIAST. MY
ENTHUSIAM IS CONTAGIOUS. WE
HAVE FUN. WE AIM TO GO ON
“QUESTS” AND CHANGE THE
WORLD. THAT IS MY
COMMITMENT. THAT IS MY
LEGACY. THAT IS MY (LOUD) LIFE.
(Scale of 1 to 10?)
The Leadership11
1. Talent Management
2. Metabolic Management
3. Technology Management
4. Barrier Management
5. Forgetful Management
6. Metaphysical Management
7. Opportunity Management
8. Portfolio Management
9. Failure Management
10. Cause Management
11. Passion Management