To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
#1 Exporter?
#4 Japan
#4 Japan
#3 (#2/2006) USA
#2 (#3) China
#4 Japan
#3 USA
#2 China
#1 Germany
Reason?
Daimler?
BASF?
Siemens?
Or …
Goldmann
Produktions
(11/50%/$5M/“dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
Reason!!!
Mittelstand
GEOBRA/Playmobil
Trumpf
Rational
Goldmann Produktions
Skunk Camp #1:
American “Mittlestand” (F500 A.W.O.L.)
Frank Perdue/ Perdue Farms
(“It takes
a tough man to make a tender chicken.”)
Tom Malone/ Milliken and Company
Don Burr/ People Express
Tom Monaghan/ Dominos Pizza
Stew Leonard/ Stew Leonard’s
Hal Rosenbluth/ Rosenbluth International
John Fisher/ Bank One of Columbus
John McConnell/ Worthington Industries
Bill and Vieve Gore/ W.L. Gore
Bob Buckman/ Buckman Labs (Bob almost
single-handedly invented what we now call
“knowledge management.”)
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
Jim’s Group: Jim Penman.*
1984: Jim’s Mowing. 2006: Jim’s Group.
2,600 franchisees (Australia, NZ, UK).
Cleaning. Dog washing. Handyman.
Fencing. Paving. Pool care. Etc.
“People first.” Private. Small staff. Franchisees
can leave at will. 0-1 complaint per year is
norm; cut bad ones quickly.
*Ph.D. cross-cultural anthropology; mowing on the side
Source: MT/Management Today (Australia), Jan-Feb 2006
Basement
Systems
Inc.
*Basement Systems Inc.
*Larry Janesky
*Dry Basement Science (115,000!)
*1993: $0; 2003: $12M;
2006:
$50,000,000+
7:30AM/830P
M/7/1200AM/
Friday/4M
Dog Biscuits/
Red Button
Single
greatest act
of pure
imagination
EXCELLENCE.
ASPIRATION.
14 MAY 2007.
EUGENE OR.
PAT KILKENNY.
“You do not merely want to
be the best of the best. You
want to be
considered the
only ones who do
what you do.”
—Jerry Garcia
Small Giants:
Companies That
Choose To Be
Great Instead
Of Big
—by Bo Burlingham
Small Giants/Bo Burlingham
"First, I could see that, unlike most entrepreneurs,
their founders and leaders had recognized the full
range of choices they had about the type of company
they would create."
"Second, the leaders had overcome the enormous
pressures on successful companies to take paths they
had not chosen and did not necessarily want to follow."
"Third, each company had an extraordinarily intimate
relationship with the local city, town, or county in
which it did business -- a relationship that went well
beyond the usual concept of `giving back.'"
"Fourth, they cultivated exceptionally intimate
relationships with customers and suppliers, based on
personal contact, one-on-one interaction, and mutual
commitment to delivering on promises."
Small Giants/Bo Burlingham
"Fifth, the companies also had what struck me as
unusually intimate workplaces."
"Sixth, I was impressed by the variety of corporate
structures and modes of governance that these
companies had come up with."
"Finally, I noticed the passion that the leaders brought
to what the company did. They loved the subject
matter, whether it be music, safety lighting, food,
special effects, constant torque hinges, beer, records
storage, construction, dining, or fashion."
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
business and lukewarm customers.)
on! (Instead steal niche
*“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,
ON EMOTION/CONNECTION!!)
Vendors. (BEAT THE BIGGIES
Wegmans
< CAPEX
> People!
“How to piss away
$500,000 in one
easy lesson!!”
TP:
Clever “human resources” programs
that take into account the “new
realities” concerning Gen X or Chinese
competition or Web 2.0 are not the
basis for creating “competitive
advantage through an excellent
workforce.” The “great secret” to “people
excellence” is “treat people with
manifest respect and appreciation and
trust, and give them a chance to express
the best in themselves and dramatically
broaden their horizons”—and “the rest”
will take care of itself for Gen A or Gen B
or Gen X or Gen Boomer.
Servant Leadership —Robert Greenleaf
The Human Side of Enterprise
—Douglas McGregor
The Manager’s Book of Decencies:
How Small gestures Build Great
Companies. —Steve Harrison
The SPEED of Trust: The One Thing
that Changes Everything —Stephen M.R.
Covey and Rebecca Merrill
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
AICC/Minneapolis/11 October 2007
*In Search of Excellence 1982-2007
Slides at …
tompeters.com
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
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!
All you need
to know …
R.O.I.R
Return On
Investment In
Relationships
Relationships
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.
(of all varieties)
:
Jim Jeffords
oversight!
The …
“Leaders
‘SERVE’
people.
Period.”
—Anon.
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect, humane)
All you need
except
for …
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”
Truly, truly
All you need
to know …
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline, Economist,
April 15, 2006, Leader, page 14
All you need
to know …
The last
word: There
is no “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:
The last
word:
There is a
“last
word.”
“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?
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
*In Search of Excellence 1982-2007
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“The Creative Age is
wide
open
game.”
a
—Richard Florida, The Rise of the Creative Class
“Better By Design”: A National Strategy
NZ = Design
Excellence
“We have to move up the value
chain and focus increased
efforts on becoming a
knowledge-based,
entrepreneurial economy if we
are to prosper in the medium
to long term.” —Tony Dromgoole, Chief
Executive, Irish Management Institute
“Avoiding the Crush: For countries to
climb the economic ladder they need
strategies to get around China”
“Beijing’s industrial dominance has
forced middle-income nations such as
the Philippines to complement—
rather than compete with—the
wares of the Middle Kingdom”
Source: Headline, FT, 0614.07
“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
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
*In Search of Excellence 1982-2007
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
“Forbes100” from 1917 to 1987
: 39
members of
the Class of ’17 were alive in ’87; 18 in ’87
F100; 18 F100 “survivors” significantly
underperformed the market;
just
2 (2%), GE & Kodak,
outperformed the market from
1917 to 1987.
S&P 500 from 1957 to 1997:
’97;
74 members of the Class of ’57 were alive in
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
“It is generally much easier to
organization
kill an
than change it
substantially.”
—Kevin Kelly, Out of Control
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”
“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
EXCELLENCE.
ASPIRATION.
2006.
Why in the
World did you
go to Siberia?
Enthusiasm.
Emotion. Excellence. Energy.
Excitement. Service. Growth.
Creativity. Imagination. Vitality.
Joy. Surprise. Independence.
Spirit. Community. Limitless
human potential. Diversity.
Profit. Innovation. Design.
Quality. Entrepreneurialism.
The Peters Principles:
Wow!
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.
“the rules.”
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect, humane)
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.
INNOVATE.
OR.
DIE.
BIG???
EXCELLENCE?
The Mess
Is The
Message!
Period!
What makes
God laugh?
People
making
plans!
What makes
tom laugh?
“Gurus”
(and once-
famous CEOs)
giving
LLLs
(logical linear
on
“systems”* of
innovation!
lectures)
*especially with lots of charts and graphs and Greek
mathematical symbols and little tiny numbers
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)
“Not a single company that
qualified as having made a
sustained transformation
ignited its leap with a big
acquisition or merger. Moreover,
comparison companies—those that failed to make a
leap or, if they did, failed to sustain it—often tried to
make themselves great with a
big acquisition or merger. They failed to grasp the
simple truth that while you can buy
your way to growth, you cannot buy your way to
greatness.” —Jim Collins/Time/2004
Spinoffs
systematically
perform better than IPOs … track
record, profits … “freed from
the confines of the parent
… more entrepreneurial,
more nimble”
—Jerry Knight/ Washington Post/ 08.05
Daimler.
And Dumb.
Both Start
with “d.”
Mission impossible?
$36B/’98
minus
$675M/‘07
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
$10,000,000/Day
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 hang
out with 1
Measure “Strangeness”/Portfolio Quality
Staff
Consultants
Vendors
Out-sourcing Partners (#, Quality)
Innovation Alliance Partners
Customers
Competitors (who we “benchmark” against)
Strategic Initiatives
Product Portfolio (LineEx v. Leap)
IS/IT Projects
HQ Location
Lunch Mates
Language
Board
We become
who we hang
out with
“The
Bottleneck Is at
the Top of the Bottle”
“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest
reverence for industry dogma:
At the top!”
— Gary Hamel/Harvard Business Review
“Catalyst just completed a study
showing that companies with at
least three women directors
performed significantly better
than average in terms of return on
equity (16.7% better), return on
sales (16.8%), and return on
invested capital (10%)
Source: Newsweek, 1015.07/16% of S&P500 board
members are women; 9% (45) no women
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
“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
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
SERIOUS
PLAY
“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
Culture of Prototyping
“Effective prototyping may
the most
valuable core
competence an
be
innovative organization can
hope to have.” —Michael Schrage
“Learn not to
be careful.”
—Photographer Diane Arbus
to her students (Careful = The sidelines, from
Harriet Rubin in The Princessa)
Screw.
things.
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“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)
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Read This!
Richard Farson & Ralph Keyes:
Whoever Makes
the Most Mistakes
Wins: The Paradox
of Innovation
try.
Miss.
READY.
FIRE!
No try.
No deal.
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
Focus.
#1/Quality =
More
procedures
[Main Line Lankenau]
Source: “In Health Care, Cost Isn’t Proof of High Quality,”
NYT, 0614.07 (PA data, 60 hospitals, bypass surgery)
The Benefits of … “FOCUSED EXCELLENCE”
Shouldice/Hernia Repair:
1% recurrence.
Avg: 90 min, 10%-15%
30 min,
recurrence.
Source: Complications, Atul Gawande
“All Strategy Is Local:
True competitive advantages
are harder to find and maintain
than people realize. The
Focus:
odds are best in
tightly drawn markets,
not big, sprawling
ones.”
—Title/ Bruce Greenwald & Judd Kahn/HBR09.05
Conscious
measurement
Innovation Index: How many
of your Top 5 Strategic
Initiatives/Key Projects score
8 or higher [out of 10] on a
“Weird”/ “Profound”/
“Wow”/“Game- changer”
Scale?
personal
Buy a
Mirror!
Step #1:
“Work
on me
first.”
—Kerry Patterson,
Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
LEAVE IT
TO BEAVER.
Trapper:
<$20
per beaver pelt.
Source: WSJ
wdcp/“Wildlife
Damage-control
Professional”: $150 to
“remove” “problem beaver”;
$750-$1,000 for
flood-control piping … so
that beavers can stay.
Source: WSJ
Trapper =
Redneck
WDCP = PSF/
Professional Services
Provider
7X to 40X
for
“Solution”
[rather than “service transaction”]
Up,
Up,
Up,
Up
the Value-added Ladder.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.
Huge: Customer
Satisfaction
versus
Customer
Success
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ OPPORTUNITY-SEEKING
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
Answer:
PSF Transformation: Credit Department/Trek
Was
Is
Credit Dept
Financial Services
Hammer on dealers until
they pay
Make dealers successful so they
CAN pay
AR sold to 3rd party
commercial co.
Trek is the commercial financial
Company
23 employees
12 employees
Oversee peak AR of $70M
Oversee peak AR of $160M
Identify risky dealers
Identify opportunities
Cost Center
Profit Center
No products
Products: Consulting, MC/Visa,
Stored value of gift cards, Gift card
peripherals, Online payments
Source: John Burke/0330.06
EXCELLENCE.
VALUE-ADDED LADDER II.
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
WHAT CAN BROWN
DO FOR YOU?
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
Up,
Up,
Up,
Up
the Value-added Ladder.
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”
Warren Goes
Shopping …
Q: “Why did you buy
Jordan’s Furniture?”
A: “Jordan’s is
It’s all
showmanship.”
spectacular.
Source: Warren Buffet interview/Boston Sunday Globe/12.05.04
C
*Chief e
O*
Xperience Officer
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOUL.
DESIGN.
All Equal Except …
“At Sony we assume that all products
of our competitors have basically the
same technology, price, performance
and features. Design is the
only thing that
differentiates one product
from another in the
marketplace.” —Norio Ohga
“Design is treated
like a religion
at BMW.” —Fortune
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental
soul of a man-made
creation.”
meaning of design.
—Steve Jobs
Design Transforms even
the [Biggest]
Corporations!
TARGET … “the
champion of America’s new
design democracy” (Time)
“Marketer of the Year 2000”
(Advertising Age)
Westin’s …
Heavenly
Bed
Packaging, Power of …
1870: animal feed.
1890: “A delicacy for the
epicure, a nutritious dainty for
the invalid, a delight to the
children”
Source: Thomas Hine, The Total Package: The
Evolution and Secret Meanings of Bottles,
Boxes, Cans and Tubes (on Quaker Oats)
Packaging Power: From Quaker Oats
Listerine
PocketPaks
to …
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
packaging
Source: www.ecompany.com
“Packages
are
about containing and labeling and
informing and celebrating. They are
about power and flattery and trying to
win people’s trust. They are about
beauty and craftsmanship and
comfort. They are about color,
protection, survival.” –Thomas Hine, The
Total Package
Message (?????):
cannot
Men
design for women’s
needs.
O*
C
*Chief
Design
Officer
“Business people
don’t need to
‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/
University of Toronto
Message (?????): Men
cannot design for
women’s needs.
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This
is accomplished by addressing the
half-formed needs in our customers’
heads. By uncovering these needs,
we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’
Sales are the inevitable
result.”
— Judy George, Domain Home Fashions
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
“NEW”
MARKETS.
E-nor-mous
Stra-te-gic
opp-or-tun
women.
BOOMERS.
GEEZERS.
women
BOOMERS
“EXCELLENCE.”
AARGH.
Psssst!
Wanna see
my “porn”
collection?
EXCELLENCE.
DUH.
“To be a leader in
consumer products,
it’s critical to have
leaders who
represent the
population we
serve.” —Steve Reinemund,
former CEO, PepsiCo
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
?????????
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%
Women’s Commercial
Purchasing Power
Purchasing mgrs. &
agents: 51%
HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
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
The Perfect Answer
Jill and Jack buy
slacks in black…
“Women don’t buy
They
join them.”
brands.
EVEolution
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
2.6 vs.
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”)
“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”
EXCELLENCE.
OPPORTUNITY.
WOMEN.
BUSINESS.
OWNERS.
“The growth and
success of womenowned businesses is
one of the most
profound changes
taking place in the
business world
today.” —
Margaret Heffernan, How She Does It
Women-owned Biz
U.S. employees >
F500 employees
worldwide
Source: Martha Barletta, Marketing to Women
WOMEN.
DOMINATE.
ECONOMIC.
GROWTH.
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“Since 1970, women
have held two
out of every
three new jobs
created.”
—FT, 10.03.2006
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?
COROLLARY.
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
“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
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”
Period??!!*
Start:
3 0f 14
18 months later:
10 of 18
(“deep dip”!)
*AIM/September 2007
women
BOOMERS
GEEZERS
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
Average # of cars purchased per
household, “lifetime”:
13
Average # of cars bought per household
after the “head of household” reaches
age 50:
7
Source: Marti Barletta, PrimeTime Women
20
$14,000,000,000,000$25,000,000,000,000
women
BOOMERS
GEEZERS
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
Or is it:
“18-44 is
stupid, stupid!”
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
BOOMERS.
GEEZERS.
MONEY.
ALL.
NOW.
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!
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
EXCELLENCE.
BEDROCK.
TALENT.
Hire very
good
people!
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
Pacific …
changed
20 of his
40 box plant managers
to put more talented,
higher paid managers in
charge. He increased profitability from
$25
million to
$80
million in
—Ed Michaels, War for Talent
2
years.”
INVITE THEM TO
JOIN US IN A
JOURNEY TO
EXCELLENCE!
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
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.”
EMPHASIZE
THE “SOFT
SKILLS.”
“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 all-conference and
All-America teams.” —Bo Schembechler
(and John Bacon), “Recruit for Character,”
Bo’s Lasting Lessons
Diversity =
profit
“Where do good new ideas
come from? That’s simple!
From differences. Creativity
comes from unlikely
juxtapositions. The best
way to maximize differences is
to mix ages, cultures and
disciplines.” —Nicholas Negroponte
Build on
strengths
“The key difference between checkers and
chess is that in checkers the pieces all move
the same way, whereas in chess all the pieces
Discover what
is unique about each
person and capitalize
on it.”
move differently. …
—Marcus Buckingham, The One Thing You Need to Know
“The mediocre manager believes that most
things are learnable and therefore that the
essence of management is to identify ach
person’s weaker areas and eradicate them.
The great manager believes the opposite.
He believes that the most
influential qualities of a person
are innate and therefore that the
essence of management is to
deploy these innate qualities as
effectively as possible and so
drive performance.” —Marcus Buckingham,
The One Thing You Need to Know
53 = 53
One size …
NEVER
fits all.
…
“Never, ever again
will I evaluate anyone
using a standardized
instrument devised by
a “professional” in
inhuman Resources.”
Promise #1:
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
“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
PARC’s Bob Taylor:
“Connoisseur
of Talent”
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“No matter what the situation,
[the great manager’s] first response is
always to think about the
individual concerned and how
things can be arranged to help
that individual experience
success.” —Marcus Buckingham,
The One Thing You Need to Know
“Do”
TALENT!
From
sweaters to …
Les Wexner:
people!
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
< CAPEX
> People!
LIVE FOR
TALENT!
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
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.
“I have always
believed that the
purpose of the
corporation is to be
a blessing to the
employees.”
—Boyd Clarke
EXCELLENCE.
BEDROCK.
LEADERSHIP.
10Ps.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for ,
trust.”
—Howard Schultz, Starbucks (IBD/09.05)
Leader Job One
Paint
Portraits of
Excellence!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
BZ: “I am a …
Dispenser of
Enthusiasm!”
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
“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
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.
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
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
“The most
successful people
are those who
are good at plan B.”
—James Yorke, mathematician, on chaos theory
in The New Scientist
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
“Really Important
Roger’s
Rule of
Stuff”:
Three!
“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.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
“Leaders
‘SERVE’
people.
Period.”
—Anon.
Cause
Space
(worthy of commitment)
(room for/encouragement
for initiative)
Decency
(respect, humane)
Officers
eat last!
Leadership’s
th
11
“P”:
Promotion
2 per Year/
20 per Decade =
Excellence +
Legacy
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PRIORITIES.
PEOPLE.
Potent.
Positive.
"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 “7Es”
Exuberance!
Energy!
Empathy!
Engagement!
Empowerment!
Execution!
Excellence!
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!
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)
EXCELLE
ALWAYS