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!
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Microsoft fonts:
NOTE:
“Showcard Gothic,”
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and “Verdana”
The Answer:
$10,000,000/Day
The Question: ???
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
ZfU Zurich International
Business School
05 November 2007
*In Search of Excellence 1982-2007
Mission impossible?
$36B/’98
minus
$675M/‘07
$10,000,000/Day
“Mr Zetsche, head of Chrysler from 2000
denied
any
to 2005,
take
he should
responsibility for the U.S.
carmaker’s troubles …” —Financial Times /05.29.07
True or False
Axiom: Setting loose a gaggle
of the best and the brightest
with advanced degrees in math
and economics from the
world’s best universities will
result in permanently reduced
risk in global financial markets.
“Medicine used to kill
more patients than it
saved—just as financial
economics* endangers
the system by creating
risk.” —Nassim Nicholas Taleb, “The Pseudo-
science Hurting Markets,” FT, 1024.07 (NNT is author
of Fooled By Randomness, The Black Swan)
*“ ‘Nobel-crowned’ methods of modern
portfolio theory; “Sveriges Riksbank Prize in
Economic Science in Memory of Alfred Nobel”
All you need
to know …
“… a blinding
flash of the
obvious”
—Manny Garcia
All you need
to know …
You = Your
calendar*
*Calendars
never lie
All you need
to know …
#1/100
“Best Companies to
Work for”/2005
Wegmans
This is it:
All you need
to know …
R.O.I.R.
Return On
Investment In
Relationships
C(I) > C(E)
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
Jim Jeffords
oversight!
The …
3-cent
lemon!
“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.
Success …
Consult everyone
on everything
“Thank you” note
carpet bombing
Source: Roger Rosenblatt, Rules for Aging
Truly, All
you need
to know …
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
“It suddenly
occurred to me …
“It suddenly occurred
to me that in the space
of two or three hours
never
he
talked
about cars.” —Les Wexner
Did one of ’em ever turn to
the other and say: “Wow I
wonder what unimaginable
new tools, otherwise not
possible, will be quickly
brought forth for our
customers because of
this deal?”
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”
The only thing
you need
to know …
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
All you need
to know (And
this time I really
mean it) …
The last
word: There
no
is
“last word.”
Headline, Wall Street Journal,
“Wal*Mart Era Wanes
Amid Big Shifts In Retail: Rivals
Find Strategies To Defeat Low
Prices; World Has Changed”
3 October 2007:
“The Wal*Mart Era, the
retailer’s time of overwhelming
business and social influence in
America, is drawing to a close.”
Sentence #1:
Cover, Newsweek, 05 November 2007:
“Takedown? ONCE HAILED AS A
WORLDBEATER, THE INTERNET
COLOSSUS NOW HAS REAL
RIVALS ALL OVER THE
WORLD.”
[text followed by a massive rendition of the
GOOGLE
logo]
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“Despite a decade of
banking mergers, there is no
evidence that big banks are
any more efficient or
profitable than their smaller
rivals.” —Financial Times, 0329, on
possible Barclays-ABN Amro merger (“When it
comes to asking the stock market whether
bigger banks are better, the current answer is a
resounding ‘no.” —Citigroup analysis, 2006)
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
“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
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
found that none of the long-term
survivors managed to outperform
the market. Worse, the longer
companies had been in the database,
the worse they did.” —Financial Times
THREE
BILLION NEW
CAPITALISTS
—Clyde Prestowitz
“Everything in existence tends to
deteriorate”/ “Buy a very large
one and just wait”
= License
(Mandate!)
for Radical
Action
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
—Nicholas Negroponte
C.E.O.
to
C.D.O.
Palo Alto/30
California/35
Major Messages:
*Business is “Hands on,” not an
abstraction!
*People! People! People!
*Relationships rule!
*never forget the Product!
*Execution! Execution!
Execution!
*Less “talk.” More “Do.”
*greatest risk = failure to
embrace Radical Change!
1978.
A START.
“Hard” Is Soft
“Soft” Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
1982.
(OCTOBER)
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
ExIn*: 1982-2002/Forbes.com
$85,000
EI: $10,000 yields $140,050
DJIA: $10,000 yields
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
In search of excellence:
Lessons from America's best run companies/ ‘82
a passion for excellence:
the leadership difference/ ‘84
thriving on chaos:
a handbook for management/ ‘87
liberation management:
necessary disorganization for
the nanosecond nineties/ ‘92
the tom peters seminar:
crazy times call for crazy organizations/ ‘93
The pursuit of wow!/ ‘94
the circle of innovation / ‘97
the work matters: the brand you 50/ ‘99
re-imagine:
business excellence in a disruptive age/ ‘03
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
“Excellence can be obtained if you:
... care more than others think is wise;
... risk more than others think is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by
K.Sriram, November 27, 2006 1:17 AM)
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
The Dream
Manager
—Matthew Kelly
E.g.: “An organization can only become the-best-version-of-itself to the
extent that the people who drive that organization are striving to
become better-versions-of-themselves.” “A company’s purpose is to
become the-best-version-of-itself. The question is: What is an
employee’s purpose? Most would say, ‘to help the company achieve its
purpose’—but they would be wrong. That is certainly part of the
employee’s role, but an employee’s primary purpose is to become thebest-version-of-himself or –herself. … When a company forgets that it
Our
employees are our first customers, and our most
important customers.”
exists to serve customers, it quickly goes out of business.
EXCELLENCE.
“the rules.”
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect, humane)
The Manager’s Book
of Decencies: How
Small /gestures
Build Great
Companies.
—Steve Harrison, Adecco
“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.
the
“Lessons.”
1966-2007.
DECENTRALIZATION.
EXECUTION.
ACCOUTABILITY.
6:15A.M.
De-central-iza-tion!
“‘Decentralization’
is not a piece of
paper. It’s not me.
It’s either in your
heart, or not.”
—Brian Joffe/BIDvest
“You can’t be a serious
innovator unless and until
you are ready, willing and
able to seriously play.
‘Serious play’ is not an
oxymoron; it is the essence
of innovation.”
—Michael Schrage, Serious Play
Enemy
#1
I.C.D.
Inherent/Inevitable/
Immutable Centralist Drift
Note 1:
Note 2: Jim Burke’s 1-word vocabulary: “No.”
Ex-ecu-tion!
“Execution is a
systematic
process
of rigorously
discussing hows and whats, tenaciously
following through, and ensuring
accountability.”
—Larry Bossidy & Ram Charan/ Execution:
The Discipline of Getting Things Done
(1) sum of Projects =
Goal (“Vision”)
(2) sum of Milestones =
project
(3) rapid Review +
Truth-telling =
accountability
Ac-counta-bil-ity!
30%
MH: 80%
CF:
(no salesfolk)
(salesfolk)
6:15A.M.
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
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
captain “yes.”
Captain “No.”
“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
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
“In business, you reward
people for taking risks.
When it doesn’t work out
you promote them-because
they were willing to try new
things. If people tell me
they skied all day and never
fell down, I tell them to try
a different mountain.”
—Michael Bloomberg (BW/0625.07)
“We
performed
more
operations.”
The True Logic* of Decentralization:
6 divisions = 6 “tries”
6 divisions = 6 DIFFERENT leaders =
6 INDEPENDENT “tries” = Max
probability of “win”
6 divisions = 6 very DIFFERENT
leaders = 6 very INDEPENDENT
“tries” = Max probability of “far
out”/”3-sigma” “win”
*“Driver”: Law of Large #s
Screw.
things.
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
“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
“The Silicon Valley of
today is built less atop
the spires of earlier
triumphs than upon the
rubble of earlier
debacles.”—Newsweek/ Paul Saffo
TP#1*:
Netscape!
*Where would you rather have worked for those 5 years, Netscape
or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you
rather to be able to tell someone—e.g., grandchild—that you worked?)
Built to Last
vs
Built to
Change/Rock
the World
try.
Miss.
READY.
FIRE!
No try.
No deal.
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
“Intelligent people
can always come up
with intelligent
reasons to do
nothing.”
—Scott Simon
Life 101: A 40-year Reflection
Go on offense.
Give everybody a shot.
Decentralize.
Try a bunch of stuff.
Make it up as you go along.
Get some stuff wrong.
Laugh a lot.
Get some stuff right.
Become a “success.”
Extract “lessons learned” or “best practices.”
Thicken the Book of Rules for Success.
Become evermore serious.
Enforce the rules to increasingly tight tolerances.
Go on defense.
Install walls.
Protect-at-all-costs today’s franchise.
Centralize.
Calcify.
Install taller walls.
Write more rules.
Become irrelevant and-or die.
The (necessary)
war on linearity:
One engineer’s
(unusual)
life’s work.
Think!
vs.
do!
“Nothing is more
dangerous in war
than theoreticians.”
—Marshall Petain (John Mosier, The Blitzkrieg Myth,
“War as Pseudoscience: 1920-1939”)
“Linearist”:
“Non-linearist”:
a>b*
b>a**
*Attitude shapes behavior
**Behavior shapes attitude
Plan it!
“Non-linearist”: Try it!
“Linearist”:
“Linearist”:
hypothesize!
“Non-linearist”:
experiment!
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”
The Limits of “Systems Thinking”:
Surprise,
Transformation &
Excellence
Through
Spontaneous
Discovery
I proceeded by trial and error and instinct,
and each experiment led to/suggested
another experiment (or 2 or 10) and to a
greater understanding of potential—the
“plan,” though there was none, made itself.
And it was far, far better (more ambitious,
more interesting, more satisfying) than I
would have imagined. In fact, the result to
date bears little or no relationship to what I
was thinking about at the start—a trivial
self-designed chore may become the engine
of my next decade; the “brushcutting project”
is now leading Susan and I to view our
entire property, and what it might becomerepresent, in a new light.
“How do I know
what I think
until I see what I
say.”
—C.K. Chesterton
EXCELLENCE.
INNOVATION.
JOB ONE.
ALWAYS.
INNOVATE.
OR.
DIE.
The Mess
Is The
Message!
Period!
“A pattern emphasized in the case
studies in this book is the degree to
which powerful competitors not
only resist innovative threats,
but actually resist all efforts to
understand them, preferring to
further their positions in older
products. This results in a surge of
productivity and performance that
may take the old technology to
unheard of heights. But in most cases
this is a sign of impending death.”
—Jim Utterback, Mastering the Dynamics of Innovation
“Recently I asked several corporate executives
what decisions they had made in the last year that
would not have been made were it not for their
All had difficulty
identifying one such decision.
corporate plans.
Since all of the plans are marked ‘secret’ or
‘confidential,’ I asked them how their competitors
might benefit from possession of their plans.
Each answered with
embarrassment that their
competitors would not
benefit.” —Russell Ackoff (from Henry Mintzberg,
The Rise and Fall of Strategic Planning)
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 i
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
“[CEO A.G.] Lafley has shifted
P&G’s focus on inventing all its
own products to developing
others’ inventions
at least half the
time. One successful example
Mr. Clean Magic Eraser, based on
a product found in an Osaka
market.” —Fortune, 12.18.06
The “Hang Out Axiom”: At
its core, every (!!!)
relationship-partnership
decision (employee,
vendor, customer, etc)
is a strategic decision
about:
“Innovate,
‘Yes’ or ‘No’ ”
We become
who we spend
time with ii
“The cracked
ones let in
the light.”
Source: Santa Cruz California,
psychiatrist’s bumper sticker
“Normal” =
“o for 800”
We become
who we spend
time with IIi
WikiWorld: “The
Billion-man Research
Team: Companies
offering work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT, 0110.07
We become
who we spend
time with Iv
“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
Educate for
creativity
“Human
creativity is
the ultimate
economic
resource.”
—Richard Florida,
The Rise of the Creative Class
“My wife and I went to a [kindergarten] parent-teacher conference
and were informed that our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in art. We were
shocked. How could any child—let alone our child—receive a poor
His teacher
informed us that he had
refused to color within the
lines, which was a state
requirement for
demonstrating ‘grade-level
motor skills.’ ”
grade in art at such a young age?
—Jordan Ayan, AHA!
“Every child is
born an artist.
The trick is to
remain an
artist.” —Picasso
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/Research by Thomas Lockwood
Ye gads: “Thomas Stanley has not only found
no correlation between success in school and
an ability to accumulate wealth, he’s actually
found a negative correlation. ‘It seems that
school-related evaluations are poor
predictors of economic success,’ Stanley
concluded. What did predict success was a
willingness to take risks. Yet the successfailure standards of most schools penalized
risk takers. Most educational systems reward
those who play it safe. As a result, those who
do well in school find it hard to take risks
later on.”
—Richard Farson & Ralph Keyes,
Whoever Makes the Most Mistakes Wins
Foster
independence
40,000,000/20
“[Former Fed Vice-chairman Alan] Blinder … remains an
implacable opponent of tariffs and trade barriers. But
now he is saying loudly that a new industrial revolution—
communication technology that allows services to be
delivered from afar—will put as many as
40
million American
jobs
at risk of being shipped out of the country
in the next decade or two.”* —Wall Street Journal /0328
“only the tip
of a very big iceberg.”
*Blinder: 40 million =
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/0327
Globalization1.0: Countries globalizing (1492-1800)
Globalization2.0: Companies globalizing (18002000)
Globalization3.0
:
(2000+)
Individuals
collaborating
& competing globally
Source: Tom Friedman/The World Is Flat
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
BRAND YOU.
NO OPTION.
New Work SurvivalKit.2007
1. MASTERY! (Best/Absurdly Good at Something!)
2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)
3. A “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession
(From vertical/hierarchy/“suck up” loyalty to
horizontal/“colleague”/“mate” loyalty)
5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity!
6.CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)
7. Master of Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber)
8. Sense of Humor (A willingness to Screw Up & Move On)
9. Comfortable with Your Skin (Bring “interesting you” to work!)
10. Intense Appetite for Technology (E.g.: How Cool-Active is your
Web site? Do you Blog?)
11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)
12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer)
13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)
Aside:
From Nation to Citystate?
From Big Corporation to
Entwined Independent
Individuals?
“THE FUTURE BELONGS TO … SMALL
POPULATIONS … WHO BUILD EMPIRES
OF THE MIND … AND WHO IGNORE THE
TEMPTATION OF—OR DO NOT HAVE THE
OPTION OF—EXPLOITING NATURAL
RESOURCES.”
Source: Juan Enriquez/As the Future Catches You
Concoct a
Parallel
universe!
“Venture” fund
(Gerstner/Amex, Dow/Marriott, Grove/Intel,
Bedbury/Starbucks/
1%
)
Find.
A.
Fellow.
Freak.
Far Away.
Parallel
universe ii: the
midsize
winners
#1 Exporter?
#4 Japan
#4 Japan
#2T China
#2T USA
#4 Japan
#2T china
#2t USA
#1 Germany
Reason?
Daimler?
BASF?
Siemens?
Commerzbank?
Reason!!!
Mittelstand
GEOBRA/Playmobil
Trumpf
Rational
Goldmann Produktions
Or …
Goldmann
Produktions
(11/50%/$5M/”dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
Parallel
universe iii:
the main
street masters
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.
Family Businesses
Two-thirds of total #s
One-half of biggest
>One-half GDP
>One-half employment
10% higher value
6% more profitable
7% better ROA
Higher income growth
Higher revenue growth
Source: John Davis, HBS
Q4/2006
+500,000 = ?
Source: Barron’s 0922.07
Q4/2006
+500,000 =
+7,700,000
-7,200,000
Source: Barron’s 0922.07
Race up & up &
Up the “valueadded ladder”:
“solutions”
MasterCard
Advisors
The Value-added Ladder/ OPPORTUNITY-SEEKING
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
Department Head
to …
Managing
Partner,
IS
Inc.
[HR, R&D, etc.]
“ ‘Disintermediation’ is overrated. Those who fear
disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
you’ve
become irrelevant to
your customers.”
way of saying that …
—John Battelle/Point/Advertising Age/07.05
“Typically in a mortgage company or
financial services company, ‘risk
management’ is an overhead, not a
revenue center. We’ve become more
We pay for
ourselves, and we
actually make money for
the company.” —
than that.
Frank Eichorn, Director
of Credit Risk Data Management Group, Wells Fargo Home
Mortgage (Source: sas.com) (Who Owns the Data? Using
Internal Customer Relationship Management to Improve
Business and IT Integration —Frank Eichorn)
Core Mechanism:
“Game-changing Solutions”
PSF
(Professional Service Firm “model”/The Organizing Principle)
+
Brand You
(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects
(“Different” vs “Better”/The Work)
Pointed
Point of
View!
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
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
SingaporeCandy
(Operational Excellence+)
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
C
*Chief e
O*
Xperience Officer
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
Extraction & Goods:
Male dominance
Services &
Female
dominance
Experiences:
Words!
— Magician of Magical Moments
— Maestro of Moments of Truth
— Recruiter of Raving Fans
— Impresario of First Impressions
— Wizard of WOW
— Captain of Brilliant Comebacks
— Director of Electronic Customer Experiences
— Conductor of Customer Intimacy
— King of Customer Community
— Queen of Customer Retention
— CEO of Ownership Experience
— Managing Director of After-sales Experience
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
winning
through
“design” &
“wow!”
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
“Design is treated
like a religion
at BMW.” —Fortune
“With its carefully conceived mix of colors and textures,
Starbucks
aromas and music,
is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the exemplar
‘Every
Starbucks store is carefully designed
to enhance the quality of everything
the customers see, touch, hear, smell
or taste,’ writes CEO Howard Schultz.”
of … the aesthetic imperative. …
-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
“Having spent a century or more focused on other
goals—solving manufacturing problems, lowering costs,
making goods and services widely available, increasing
convenience, saving energy—we are increasingly
engaged in making our world special. More people in
more aspects of life are drawing pleasure and meaning
from the way their persons, places and things look and
Whenever we have the
chance, we’re adding
sensory, emotional appeal
to ordinary function.”
feel.
— Virginia Postrel, The Substance of Style: How the
Rise of Aesthetic Value Is Remaking Commerce,
Culture, and Consciousness
O*
C
*Chief
Design
Officer
“Better By Design”: A National Strategy
NZ = Design
Excellence
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
“We don’t
‘close units,’
we build
homes.”
—Larry Webb,
John Laing Homes
“Soft Skills,
Hard Dollars”
Source: Headline, BigBuilder, September 2006
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Ladder.2007: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
VA “Teaching Moment”
“Andy pointed to
a molding,
about halfway
up the wall …”
The Boot … and
Timberland
The Tomato/
Farmer … and
Campbell’s
imagination
unbound!
Single
greatest act
of pure
imagination
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
Women as
innovation
force!
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Women’s Trifecta+
*Buy
*Wealth
*Lead
+ECLIPSE
OF MALES
(Old/Retire; Young/Poorly educated)
Pursuing
humongous
“new” markets
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
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”
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
Women’s Strengths Match New
Economy Imperatives: Link [rather than rank]
workers; favor interactive-collaborative leadership
style [empowerment beats top-down decision
making]; sustain fruitful collaborations; comfortable
with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as
pure “rationality”; inherently flexible; appreciate
cultural diversity. —Judy B. Rosener,
America’s Competitive Secret: Women Managers
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
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,
boys in the school system.
Financial Times, 10.03.2006
“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
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
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)
“A leader is
a dealer in
hope.”
—Napoleon
(+TP’s writing room pics)
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.
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
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)
Questions: What do others think of you? [Are you sure?] What
do you think of you? [Are you sure?] What is your impact on
others? [Are you sure?] What is your impact on others? [Are
you sure?] What is your impact on others? [Are you sure?]
What are the “little things” you (perhaps unconsciously) do that
cause people to shrivel—or blossom? [Are you sure?] What do
you want? [Are you sure?] Are you aware of your changing
moods? [Are you sure?] How fragile is your ego? [Are you sure?]
Do you have a true confidant? [Are you sure?] Do you perform brief
or not-so-brief self-assessments? Do you talk too much? [Are you
sure?] Do you know how to listen? [Are you sure?] Do you
listen? [Are you sure?] What is your style of “hashing things
out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive,
(d) genuinely interested in people, (e) etc? [Are you sure?] Are
you flexible? Have you changed your mind about anything important
in a while? Are you comfortable-uncomfortable with folks on the
front line? Do you think you’re “in touch with the pulse of
things around here”? [Are You Sure?] Are you too
emotional/intuitive? Are you too unemotional/rational? Do you
spend much time with people who are new to you? [Do you think
questions like this are “so much BS”?]
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
Relentless: “One of
my superstitions had always been
when I started to go anywhere or
not to
turn back , or stop,
to do anything,
until the thing intended was
accomplished.” —Grant
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 !”
“The one thing you need
to know about sustained
individual success:
Discover what you don’t
like doing and
stop
doing it.”
—Marcus Buckingham, The One Thing You Need to Know
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
Officers
eat last!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE ii.
Potent.
Positive.
“It’s simple, really,
Tom. Hire for s,
and, above all,
promote for s.”
—Starbucks middle manager/field
“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.
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“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.
Internal
“brand
promise”!
EVP/
IBP?*
What’s your company’s …
*Employee Value Proposition, per Ed Michaels et al.,
The War for Talent; IBP/Internal Brand Promise per TP
EVP/IBP = Remarkable
challenge, rapid professional
growth, respect, satisfaction,
fun, stunning opportunity,
exceptional reward, amazing
peer group, full membership in
Club Adventure, maximized
future employability
Source: Ed Michaels, The War for Talent; TP
Brand =
Talent.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE vii.
Potent.
Positive.
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
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!
"The reasonable man adapts
himself to the world. The
unreasonable one persists in
trying to adapt the world to
himself. Therefore, all
progress depends upon the
unreasonable man.” —GB Shaw,
Man and Superman: The Revolutionists' Handbook.
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
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
The “1E”
“Excellence can be obtained if you:
... care more than others think is wise;
... risk more than others think is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by
K.Sriram, November 27, 2006 1:17 AM)
Geron-imo!
"Life is not a journey to the
grave with the intention of
arriving safely in one pretty
and well preserved piece, but
to skid across the line
broadside, thoroughly used
up, worn out, leaking oil,
shouting ‘GERONIMO!’ ”
—Bill McKenna, professional motorcycle racer
(Cycle magazine 02.1982)