Tom Peters’
EXCELLENCE.
ALWAYS.
MassMutual/Leaders Conference 2006
Washington/29July
Slides* at …
tompeters.com
*also “long”
The
Irreducible209+/
Sales122
EXCELLENCE.
STARTERS.
Radio City Music Hall
September 2005
Franchise Lost!
TP:
“How many of you
[600]
crave
really
a new Chevy?”
NYC/IIR/061205
2P.3E.
People.
Product.
Execution.
Enthusiasm.
Excellence.
EXCELLENCE.
THE WORD.
Synonyms
Purity
Transcendence
Virtue
Elegance
Majesty
Antonyms
Mediocrity
EXCELLENCE.
GAMECHANGER.
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”
ExIn*: 1982-2002/Forbes.com
DJIA: $10,000 yields $85,000
EI: $10,000 yields $140,050
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
Them-Us
Tom Peters/0624.2006
“Them”
“Us”
Strategy
Planning
Marketing
Markets
Customers
Micro-segmentation
Cost minimization
Synergy/“Efficiencies”
“Strategic supplier
Process
Effectiveness
Men
Leadership
Standardization
Big clients
Prestigious Board
EXECUTION
Action
Selling/Sales
Customers
Clients
Big Stuff (Women, Boomers)
Revenue maximization
Decentralization
Pioneering supplier
Project
Excellence
Women
Management + Leadership
Exceptionalism (53 = 53)
COOL clients
INTERESTING Board
good words.
Bad words.
Words that may NOT be
used in my presence:
“Motivate”
“Market”
Words that may NOT be
used in my presence:
“Motivate”
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
Words that may NOT be
used in my presence:
“Market”
Sell
Sell
Words that MAY be used in my presence: “Invite”
… “Sell” (v. “Market”) … “People” (we’d
like to serve) (v. “Market segment”) … “Client” (v.
“Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute”
(v. “Plan”) … “Talent” (v. “Worker”) …
“Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) …
“Wow Project” (v. “Task”) … “Rockin’ (profit-makin’)
PSF” (v. “Department”) … “Theater” (v. “Office”) …
“Breathtaking Experience” (v. “Transaction” that “Exceeds
expectations”) … “Talent Fanatics Inc” (v. “HR”) …
“Brand You adventure” (v “Career development”)
“Annual Report development session” … (v.
“Employee evaluation”) … “Woman” (v. “Man”) …
(v. “Motivate”)
EXCELLENCE.
ALWAYS.
“Why in the
world did
you go to
Siberia?”
The Peters
Principles: Enthusiasm.
Emotion. Excellence. Energy.
Excitement. Service. Growth.
Creativity. Imagination. Vitality.
Joy. Surprise. Independence.
Spirit. Community. Limitless
human potential. Diversity. Profit.
Innovation. Design. Quality.
Entrepreneurialism. Wow.
An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that
elicits maximum concerted
human potential in the
wholehearted service
of others.***
Business* ** (*at its best):
**Excellence. Always.
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
The
Ultimate
Business:
Creative
Endeavor.
The
Ultimate
Business:
Personal
DevelopmentGrowth
Experience.
The
Ultimate
Business:
Transcendent
Service
Opportunity.
EXCELLENCE.
WANTING.
This is not a
“mature
category.”
This is an
“undistinguished
category.”
EXCELLENCE.
DRAMATIC.
DIFFERENCE.
DOABLE.
$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods
7X. 730A800P.
F12A.*
*’93-’03/10 yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
EXCELLENCE.
#1T.
Cirque
du Soleil!
EXCELLENCE.
#1T.
Donnelly’s
Weatherstrip
Service
Weymouth MA
EXCELLENCE.
NO EXCUSES.
Summary:
WallopWal*Mart16*
*Or: Why it’s so absurdly easy
to beat a GIANT Company
The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “miniWal*Mart.)
*Never attack the monsters head
niche business and lukewarm customers.)
on! (Instead steal
*“Dramatically
Different”
(La Difference ... within our
community, our industry regionally, etc … is as obvious as the end
of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP
SHORT.)
*Compete
on value/experience/intimacy, not
price. (You ain’t gonna beat the behemoths on cost-price in 9.99
out of 10 cases.)
*Emotional bond with Clients,
BIGGIES ON EMOTION/CONNECTION!!)
Vendors. (BEAT THE
What I’ve
Learned about
“Small Business”
Tom Peters
26June2006
Passion for PRODUCT.
OBSESSION With Product.
LOVE The Product.
Aim To Be “ONLY ONES WHO DO WHAT WE DO.”
Keep ADDIN’ Stuff.
Invest “UNWISELY” in R&D.
Reside Permanently In The DISCOMFORT Zone.
“Unhealthy” PARANOIA Is A Good Thing.
Add Clients That PUSH-PULL.
SELL. SELL. SELL. SELL.
Go For Broke: CUSTOMER CONTACT PEOPLE.
PERFECTION: Customer Contact People.
Hire for ATTITUDE.
INVITE On An Adventure.
GREAT CFO/Biz Guy-Gal.
NASTY CFO/Biz Guy-Gal.
QUADRANGULAR LEADERSHIP: Visionary-Talent
Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
EXCELLENCE.
PITIFUL.
“Idiot” is
too kind a
word.
“That’s a very
diverse* team.”
—Patrick Cescau, CEO, Unilever**
*1 of 14 Board of Directors members is a woman
(not an exec); 2 of 7 Exec Team members
are … Indians. (Source: FT/24-25 June.)
**Approximately
85%
of Unilever’s products
are purchased by … women.
“That’s a
VERY
diverse team.”
—Patrick Cescau, CEO, Unilever* **
“That’s a
VERY
sick man.”
—Tom Peters
EXCELLENCE.
FOUND.
“To be a leader in
consumer products,
it’s critical to have
leaders who represent
the population we
serve.”
—Steve Reinemund/PepsiCo
EXCELLENCE.
OPPORTUNITY.
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
USA/F.Stats: Short ’n (Very) Sweet
>50% of stock ownership, $13T total wealth (2X in 15 years)
>$7T consumer & biz spending (>50% GDP; > Japan GDP);
>80% consumer spdg (Consumer = 70% all spdg)
57% BA degrees (2002); = ed & social strata, no wage gap
60% Internet users; >50% primary users of
electronic equipment
>50% biz trips
WimBiz: Employees > F500; 10M+: 33% all US Biz
Pay from 62% in 1980 to 80% today; equal if education,
social status, etc are equal
60% work; 46M (divorced, widowed, never married)
Source: Fara Warner, The Power of the Purse
The Perfect Answer
Jill and Jack buy
slacks in black…
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.
“Women don’t buy
They
join them.”
brands.
EVEolution
2.6
vs.
10. Women’s
Market =
Opportunity
No. 1.
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
Faith, Lys, Marti, Fara …
Targeting the New
Professional Woman:
How to Market and Sell to
Today’s 57 Million
Working Women.
—Gerry Myers
“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
EXCELLENCE.
OPPORTUNITY.
EXCELLENCE.
OPPORTUNITY.
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47% )
44-65: “New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer
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
EXCELLENCE.
OPPORTUNITY.
Women.
Women business owners.
Boomers-Geezers.
Single-adults (Urban)
Fastest growing demographic:
Single-person
Households (>50% in
London, Stockholm, etc)
Source: Richard Scase
% of homes purchased by
single women: 1981, 10%;
2005, 20%
% of homes purchased by
single men: 1981, 10%;
2005, 9%
Source: USA Today/02.15.06
EXCELLENCE.
VALUE ADDED.
EXCELLENCE.
EXPERIENCE IT.
“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 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
C
*Chief e
O*
Xperience Officer
EXCELLENCE.
DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This is
accomplished by addressing the halfformed 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
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients
become what they want to be.”
—Gian Luigi Longinotti-Buitoni
C
*Chief Dream Merchant
EXCELLENCE.
LOVE IT.
Kevin Roberts:
Lovemarks!
C
O*
*Chief Lovemark Officer
EXCELLENCE.
THE STORY.
“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
Market Power =
Story Power
C
O*
*Chief Storytelling Officer
EXCELLENCE.
BEDROCK.
Brand =
Talent.
Organizing Genius / Warren Bennis
and Patricia Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or
her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its
members to discover their
greatness.”
Leadership’s Mt Everest/Mt Excellence
“free to do his or her
absolute best” …
“allow its members to
discover their
greatness.”
“The role of the Director
is to create a space
where the actor or
actress can become
more than they’ve ever
been before, more than
they’ve dreamed of
being.” —Robert Altman, Oscar acceptance
C
O*
*Chief quest-meister
EXCELLENCE.
WOMEN.
RULE.
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
Title, Special Report/BusinessWeek
Women’s Negotiating Strengths
*Ability to put themselves in their
counterparties’ shoes
*Comprehensive, attentive and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like
a Woman: Why the 21st-century negotiator will need the female touch”
Women
Dominate
Economic
Growth.
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by Women.”
—Headline, Economist,
April 15, 2006, Leader, page 14
Impact! Add It Up!
Primary markets/Everything
(“Men buy
things that other men will buy for women. I buy things that women want.”—
successful jeweler/F. “Women are the majority market” —Fara Warner/The
Power of the Purse. Women as Purchasing Officers, CIOs, etc.)
Greater global workforce
participation rate (“bigger contributor to GDP
growth than technology, China, India”—Economist)
Higher wages
(more seniority, promotions—even if not to
CEO; greater pay equity—even if not equal)
Business “decision makers”
(more
seniority, promotions—even if not to CEO)
Women-owned businesses
(answer to the
Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing
world)
EXCELLENCE.
WOMEN.
SELL.
“TAKE THIS QUICK QUIZ: Who manages more
things at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills?
Who is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer ‘to
do’ list? Who enjoys a recap to the day’s
events? Who is better at keeping in touch with
others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women
Can Outsell Men, Nicki Joy & Susan Kane-Benson
Health
Childhood
Obesity >
Terrorism
Bust
fat docs!
Wash your hands.
Apply #50 sunscreen.
Banish trans fat
Banish high fructose corn syrup.
Exercise “30-7.”
Breathe.
Stockpile for H5N1.* (*not Tamiflu!)
Avoid hospitalization.
Take charge of your health.
EXCELLENCE.
BEDROCK.
X.Step #1:
Buy a Mirror!
“The First step in a
‘dramatic’ ‘organizational
change program’ is
obvious—dramatic personal
change!” —RG
“Work
on me
first.”
—Kerry Patterson,
Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations
“You must
be
the change you wish
to see in the world.”
Gandhi
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
motivational
stuff
“Do one thing
every day that
scares you.”
—Eleanor Roosevelt
Stop
Doing
It!
“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
Paul Arden,
Whatever You Think
Think the Opposite
“ARE YOU BEING
REASONABLE? Most people
are reasonable; that’s
why they only do
reasonably well.”
Source: Paul Arden, Whatever You Think Think the Opposite
BONUS
Stating the Obvious:
THE PROBLEM IS
RARELY THE
PROBLEM.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.* **
*Watergate, M Stewart, BR
**And: PERCEPTION IS ALL THERE IS!
OFTEN AS
NOT/MORE OFTEN
THAN NOT THE
UNDERLYING
PROBLEM IS NOT
MUCH OF A
PROBLEM.
PERCEPTION
IS ALL THERE
IS. PERIOD.*
*From Whole Foods to IBM to the corner deli
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.
Relationships
(of all varieties):
POWER WORDS!
“I’m sorry.”
Stating the Obvious:
MORE POWER
WORDS/IDEAS
Thank
You!
Say it with …
FLOWERS
POWER IDEAS!
You must care.
—General Melvin Zais
EXCELLENCE.
EXECUTION.
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“This is so simple it sounds stupid, but it is amazing
you
only find oil if you
drill wells.
how few oil people really understand that
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
You only find
oil if you
drill wells.
Source: The Hunters, by John Masters, Canadian O & G wildcatter
6:15A.M.
????????
Work Hard >
Work Smart
EXCELLENCE.
DETERMINATION.
BLOOD-YMIND-EDNESS
Bloodyminded:
Unreasonably
stubborn
Source: The Random House Dictionary of the English Language
“This [adolescent] incident [of getting from point A to point B] is
notable not only because it underlines Grant’s fearless
horsemanship and his determination, but also it is the first known
example of a very important peculiarity of his character:
Grant had an extreme,
almost phobic dislike of
turning back and retracing
his steps. If he set out for somewhere, he would get
there somehow, whatever the difficulties that lay in his way. This
idiosyncrasy would turn out to be one the factors that made him
such a formidable general. Grant would always, always press on—
turning back was not an option for him.”
—Michael Korda, Ulysses Grant
“Whenever anything is
being accomplished, I
have learned, it is being
done by a monomaniac
with a mission.” —Peter Drucker
"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.
“I’m looking
for insane
commitment.”
—Twyla Tharp, The Creative Habit
“You want ‘checklists.’ I
instead offer you a ‘guaranteed’
‘formula’: Passion.
Bloodymindedness
Enthusiasm.
[as contrasted with
Relentlessness. A
demonic need to make ‘it’
happen.” —TP
mere ‘determination’].
“A year from now
you may wish
You had
started today.”
—Karen Lamb
Geronimo!
“Life is not a journey to the
grave with the intention of
arriving safely in a pretty and
well-preserved body—but
rather a skid in broadside,
thoroughly used up, totally
worn out, and loudly
proclaiming, ‘Wow,
what a ride!’ ” —anon.
"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)
EXCELLENCE.
STRETCH.
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
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!
EXCELLENCE.
THRILLS.
Radically Thrilling Language!
“Radically
Thrilling.”
—BMW Z4 (ad)
C
O*
*Chief Thrills Officer
EXCELLENCE.
WOW. NOW.
C
O*
*Chief WOW Officer
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
EXCELLE
ALWAYS