Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
Colorado Springs/01 June 2007
*In Search of Excellence 1982-2007
Slides* at …
tompeters.com
*Also LONG
NOT YOUR
FATHER’S
WORLD!
“Copper
Thieves Cause
Havoc for
Commuters”
—The Guardian (London) 28.05.07
APPARENTLY,
NOT YOUR
WORLD, EITHER!
“[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
40
million American
jobs
from afar—will put as many as
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 =
Excellence.
“then.”
now.
THE ONE THING
you need
to know …
“Make sure your executive team includes
top talent in design, engineering and
manufacturing, because that’s your
only!
build! Cars!
People! Want!
to buy!
priority— to
Hot styling sells them
and quality keeps them sold.” — Lee Iacocca,
Where Have All the Leaders Gone?
EXCELLENCE.
CIRCA 1982.
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”
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.
ASPIRATION.
UNIVERSAL.
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
Basement
Systems
Inc.
*Basement Systems Inc./Larry Janesky
*
Dry Basement Science
(115,000!)
*2006:
$50,000,000+
EXCELLENCE.
ASPIRATION.
UNIVERSAL.
7:30AM/830P
M/7/1200AM/
Friday/4M
Dog Biscuits/
Red Button
EXCELLENCE. NO
EXCUSES.
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
“mini-Wal*Mart.)
Never attack the monsters head on!
*
(Instead steal niche business and lukewarm customers.)
*“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,
Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
Small Giants:
Companies That
Choose To Be
Great Instead
Of Big
—by Bo Burlingham
“You do not merely want to be
You
want to be
considered the
only ones who
do what you
do.”
the best of the best.
—Jerry Garcia
BIG???
EXCELLENCE?
“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
You don’t
get better
by being
bigger. You
get worse.”
Dick Kovacevich:
Daimler.
And Dumb.
Both Start
with “d.”
Mission impossible?
$36B/’98
minus
$675M/‘07
“Marriage
in heaven”
—Daimler-
Benz and Chrysler exchange vows, circa 1998
(Jürgen Schrempp)
“the divorce on
earth”
—Daimler exec, circa 2007, on
probable Cerberus private equity purchase of
Chrysler from Daimler
DaimlerChrysler/’98-’07:
Duh, Duh, Duh, Duh and … Duh
Manifold Synergies/No
Severe Scale limits/Yes
Culture clashes/Yes
Rushmorean ego issues/Yes
Customer acceptance /No
“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
EXCELLENCE.
INNOVATE.
OR.
DIE.
InnoTac64
revenue
matters
most
“Our whole
story is
growing
revenue.”
—Vernon Hill (Top-line driven; standard
is bottom-line driven by cost cutting)
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
C
*Chief
O*
Revenue
Officer
Try it. Try it. Try it
ry it. Try it. Screw i
p. Try it. Try it. Try
Try it. Try it. Try i
ry it. Screw it up. it
Try it. Try it. try it
What makes
God laugh?
People
making
plans!
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“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
Screw.
things.
Sam’s
Secret
#1!
No try.
No deal.
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
Experiences
that rock!
Dreams that
come true!
“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
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-old accountant
to dress in black
leather, ride through
small towns and have
people be afraid
of him.”
Harley exec, quoted in Results-Based Leadership
“The [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
(versus $415)
WHAT CAN
BROWN
DO FOR YOU?
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
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
“No longer are we only an insurance
provider. Today, we also offer
our customers the products
and services that help them
achieve their dreams —
whether it’s financial security, buying
a car, paying for home repairs, or even
taking a dream vacation.” —Martin
Feinstein, CEO, Farmers Group
“We don’t
‘close units,’
we build
homes.”
—Larry Webb,
John Laing Homes
“Soft Skills,
Hard Dollars”
Source: Headline, BigBuilder, September 2006
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Services
Goods
Raw Materials
C
*Chief Dream Merchant
“Dreams Come True”:
Harley Davidson
Jim’s Group
UPS
Starbucks
John Laing Homes
women.
BOOMERS.
GEEZERS.
women
BOOMERS
“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)
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“She
knows more about the
[Audi] than the salesman who greets
her at the door. But how is she
treated? As if she has a low IQ , is
slightly hard of hearing , and really
has no right to be buying a luxury
car; and if she brought a male friend
with her, odds are 10:1 that the
clueless salesperson spent most of his
time speaking to him .” —Selling to Men, Selling
to Women, Jeffery Tobias Halter
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
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 &
value-added 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?
“Women come out better
on almost every count as
investors … They are less likely to
hold a losing investment too long, and
less likely to wait too long to sell a
winner; they’re also less likely to put too
much money into a single investment or
to buy a reputedly hot stock without
doing sufficient research.”
Source: The Merrill report: “When It Comes to Investing,
Gender A Strong Influence on Behavior.”/Atlantic
women
BOOMERS
GEEZERS
20
$14,000,000,000,000$25,000,000,000,000
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
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
twenty-five years. We have arrived!
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
EXCELLENCE.
BEDROCK.
LEADERSHIP.
“9 Ps.”
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
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)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
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.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
Bonus
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
pissed off.
Playful.
PERSISTENCE.
Prepared.
PEOPLE.
Peculiar.
Potent.
Positive.
The Black
Swan: The
Impact of
the Highly
Improbable
Nassim Nicholas Taleb
Banking:
3 = R.O.H.: 1982/Default Latin
America = Total historical earnings; 1992/S & L;
2002/dot.com
Las Vegas: Siegfried and Roy,
1,000X
plus a handful of others =
gambling variability
10
Wall Street: “In the last 50 years, the
most
extreme days in the financial markets represent
half of the returns. Ten days in 50 years.
Meanwhile, we are mired in chitchat.”
The Black Swan: The Impact of the
Highly Improbable, Nassim Nicholas Taleb
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
“Leaders
‘SERVE’
people.
Period.”
—Anon.
“Sorry, I’ve got to go—the
HR people get on me if I
don’t go do my ‘shake handschat up’ duty”
—president, large
division of large company in the _______
industry
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
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!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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)
Hire Great People
(Resilient, Passionate)
Try a Lot of Stuff
(S.A.V./R.F.A.)
aCCEPT NO LESS THAN
EXCELLENCE/PURSUE Wow!
enjoy It While It Lasts
"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)
Geron-imo!