Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
Re-imagine2007/Focus Conferences
Amsterdam/19 December 2006
*In Search of Excellence 1982-2007
Slides* at …
tompeters.com
*also “long”
The Irreducible209+
One Word+
The Sales122
60TIBs
Tom-A-to,Tom-ah-to
The Irreducible209
1.
2.
3.
4.
Hare 1, Tortoise 0. (Hare-y times.)
Tempo. (O.O.D.A.)
MBWA.
Appreciation. (“Motivator” #1.)
(Can’t be faked. Good.)
5. Decency.
6. Hurry.
7. Time out.
8. One matters.
9. Big change. Short time. (Alt not work.)
10. Excellence. Always.
11. Passion. Energy. Hustle. Enthusiasm.
Exuberance. (Move mountains. No alt.)
12. You must care.
13. Emotion.
14. Hard is soft. (Soft is hard.)
EXCELLENCE.
ALL YOU NEED TO KNOW.
MBWA, Grameen Style!
“Conventional banks ask their clients to come
to their office. It’s a terrifying place for the poor
and illiterate. … The entire Grameen Bank
system runs on the principle that people
should not come to the bank, the bank
should go to the people. … If any staff
member is seen in the office, it should be taken
as a violation of the rules of the Grameen Bank.
… It is essential that [those setting up a new
village Branch] have no office and no place to
stay. The reason is to make us as different as
possible from government officials.”
Source: Muhammad Yunus, Banker to the Poor
EXCELLENCE.
ALL. YOU. NEED.
TO. KNOW.
ANYWHERE.
ANY MARKET.
ANY TIME.
Jim’s
Group
That’s a
Big
Number ….
THREE
BILLION NEW
CAPITALISTS
—Clyde Prestowitz
5 /42
(Years)
(New Airports)
“There is no job that
is America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004
“There is no job that
is _____’s Godgiven right anymore.”
“Income Confers
No Immunity as
Jobs Migrate”
—Headline/USA Today/02.2004
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/0327
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline, Economist,
April 15, 2006, Leader, page 14
EXCELLENCE.
EVERYWHERE.
ASPIRATION.
NECESSITY.
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/2003
Thailand
Spain
Portugal
Italy
Ireland
Singapore
Taiwan
Malaysia
Singapore
Philippines
UAE
Oman
Chile
Botswana
Romania
New Zealand
“Better By Design”: A National Strategy
NZ = Design
Excellence
“The
Creative
Age is a wideopen game.”
—Richard Florida, The Rise of the Creative Class
EXCELLENCE.
THE MANDATE.
“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
Welcome to the “Club of Shattered Dreams”:
Of Korea’s Top 100 companies
in 1955, only 7 were still on the
list in 2004. The 1997 crisis
“destroyed half of Korea’s
30 largest conglomerates.”
Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)
S&P Stability Ratings*
1985
2006
Low Risk
41%
13%
Average Risk
24%
14%
High Risk 35%
*Likelihood of stable long-term earnings growth
Source: Fortune (2 October 2006)
73%
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“It is generally much easier to
organization
kill an
than change it
substantially.”
—Kevin Kelly, Out of Control
C.E.O.
to
C.D.O.
“Wealth in this new regime
flows directly from innovation,
not optimization. That is,
wealth is not gained by
but by
imperfectly seizing the
unknown.” —Kevin Kelly, New Rules for
perfecting the known,
the New Economy
RMcK:
RN:
“Maybe not enough fail.”
RMcK:
RN:
“A lot of companies in the
Valley fail.”
“What do you mean
by that?”
“Whenever you fail, it
means you’re trying
new things.”
Source: Fast Company
EXCELLENCE.
STARTERS.
BASICS.
K.I.S.S.
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentless.
Senility.
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
“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
EXCELLENCE.
THE WORD.
Synonyms
Purity
Transcendence
Virtue
Elegance
Majesty
Antonyms
Mediocrity
EXCELLENCE.
PETERS.
WATERMAN.
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”
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
“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)
EXCELLENCE.
(MAYBE.)
Hardball: Are You Playing to Play or Playing to Win?
by George Stalk & Rob Lachenauer/HBS Press
“The winners in business have always played hardball.”
“Unleash massive and overwhelming force.” “Exploit
anomalies.” “Threaten your competitor’s profit
sanctuaries.” “Entice your competitor into retreat.”
Approximately
640 Index entries: Customer/s
(service, retention, loyalty),
worker/s),
4. People (
0. Innovation (
employees, motivation, morale,
product development, research &
development, new products),
0.
good words.
Bad words.
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:
“Marketing”
Sell
Sell
Incidentally …
“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
Words that may NOT be
used in my presence: Customer
service that …
“Exceeds
expectations”
Radically Thrilling Language!
“Radically
Thrilling.”
—BMW Z4 (ad)
EXCELLENCE.
ASPIRATION.
“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.***
Enterprise* ** (*at its best):
**Excellence. Always.
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
EXCELLENCE.
ASPIRATION.
YOU & ME.
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!”
—RG
“Every time we come to a comfort
zone, we will find a way out. … A
typical day at the office for me
begins by asking, ‘What is
impossible that I
am going to do
today?’”
—Daniel Lamarre, president,
Cirque du Soleil
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
EXCELLENCE.
DEFINED.
AGENDA.
SETTER.
Great Companies …
SET
THE
AGENDA.*
* “disturb the sleep of …
(PERIOD.)
AGENDA SETTERS: “Set the Table”/
Pioneers/ Questors/ Adventurers
US Steel … Ford … Toyota … Sears …
GM … ITT … The Gap … Limited …
Wal*Mart … Tesco … P&G … 3M …
Intel … IBM … Apple … Nokia …
Cisco … Dell … MCI … Sun …
Microsoft … Google … Enron …
Schwab … GE … Laker … Southwest
… People Express … Ogilvy … Virgin
… eBay … Amazon … Sony …
Amgen … BMW … CNN … Nike
Built to Last
vs
Built to
Change/Rock
the World
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?)
GM25/50-75:
“Built to
last”????
The last
word:
There is
no last
word.
U.S. Steel
Ford
GM
IBM
Macy’s
Sears
Microsoft?
Dell?
Wal*Mart?
EXCELLENCE.
DEFINED.
X06.
Commerce Bank: From “Service” to “Experience”
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%;
WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
Commerce
Bank
The Power of WOW!
How Commerce Bank
Created a SuperGrowth Business in a
No-Growth Industry
Vernon W. Hill, II
“Our whole
story is
growing
revenue.”
—Vernon Hills (Top-line driven; standard
is bottom-line driven by cost cutting)
8,000 Radio City
Music Hall … J.D. Power/Customer
service/Bank/NYC/1st in 5 of 6; 2nd in #6 … Inspired by Ray
Kroc … $36B ($100B in 6 years); +$750M per
month/373 branches in 7 states/900 in 6 years … player
piano … Penny Arcade/$25K per machine … 9M lollipops,
2M dog biscuits … stupid rule (red) button … call center
not “cost center,” but opportunity/human by second
operation … over-invest in real estate … design-experience
fanaticism … Red!/Red Friday/Hot music … deposits
available next day (vs ½ on 3rd; ½ on 5th; focus on 99%,
not 1%) … LONG HOURS!!!! (7/week/12 hours/Fridays/15
minutes before) … “Do whacky things for customers”
(VH) … “create magical moments of surprise and delight
for employees” (VH) … “Hire for attitude. Train for
skills.” (VH) … Chinatown/10K first day; 28K first week
… Commerce U in ’93 (“underlying theme is fun”—VH)
S.M.A.R.T.
S.
M.
A.
R.
T.
Say Yes (approval for “No”)
Make Each Customer Feel Special
Always Keep Customer Promises
Recover! (“To err is human,
to recover is divine.”)
Think Like Our Customers
“ … cut costs at most banks.
‘We have to push them out
of the branches.’ ‘We have
to push them to machines.’
We have to push them to
the Internet.”
Source: Vernon Hill
sewell
Customers
for Life
FLOWER
POWER
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
High end.
Experience.
Design.
Crazy for customers!
Crazy for Patients! (“Whole person”).
Wow!
People first, second, third.
Breakthrough or bust.
“Seriously cool.”
“Virus management.”
Resilience.
Tippy-top talent.
“Solutions,” not “just” “satisfaction.”
Engagement.
Self-control. (Customer/Patient/Student control.)
Blue Ocean.
“Mundane stuff” made great.
Great demographic.
The best. Period.
Effective partnering.
K.I.S.S.
Play to win. (Offense > Defense.)
Bold!
Action! Always!
Integrity-as-strategy.
*Focused on growth and revenue and “offense,”
not defense and cost containment.
*People-talent obsession.
*Provide mind-bending experiences. (Driven
by design primacy.)
*Nuts about customers.
*Happy to use words like “Wow.”
*Pretty close to the high end of the market.
[*Ability to make silk purses filled with gold out of
sows’ ears: Wegmans-Whole Foods-Stew Leonard’s
and groceries; Jim’s Group and dog-walking;
Donnelly and weatherstrip installation; DeMar
and plumbing.]
*Execution!
EXCELLENCE.
REVENUE.
MATTERS.
MOST.
“Analysts … preferred cost cutting, as long as
they could see two or three years of EPS growth. I preached revenue
and the analysts’ eyes would glaze over. Now revenue is ‘in’ because
They
said, ‘Oh my gosh, you
need revenues to grow
earnings over time.’
Well, Duh!”
so many got caught, and earnings went to hell.
—Dick Kovacevich, Wells Fargo
P=R–C
C
*Chief
O*
Revenue
Officer
EXCELLENCE.
INNOVATE.
OR. DIE.
“Under his former boss, Jack Welch, the skills GE prized
above all others were cost-cutting, efficiency and dealmaking. What mattered was the continual improvement
of operations, and that mindset helped the $152 billion
industrial and finance behemoth become a marvel of
earnings consistency. Immelt hasn’t turned his back on
But in his GE, the
new imperatives are risktaking, sophisticated
marketing and, above all,
innovation.” BW
the old ways.
—
/2005
More than $$$$
R&D
spending,
last 25 years?
“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
“I don’t believe in economies of
You don’t get
better by being
bigger. You get
worse.”
scale.
—Dick Kovacevich/Wells Fargo
Scale?
“Microsoft’s Struggle With
Scale”
—Headline, FT, 09.2005
“Troubling
Exits at Microsoft”
—Cover Story, BW, 09.2005
“Too Big to Move Fast?”
—Headline, BW, 09.2005
“When asked to name just one big
merger that had lived up to
expectations, Leon Cooperman,
former cochairman of Goldman Sachs’
Investment Policy Committee,
I’m sure there
are success stories out
there, but at this
moment I draw a
blank.”
The Synergy Trap
answered:
—Mark Sirower,
“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
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
—Peter Job, former CEO, Reuters
Standard bank: Keep ’em out of branches;
ignore middle income; cost-driven
(“No great
American retailer was ever
created by doing
acquisitions” —VH /
Commerce bank)
following mergers.
CB: deposit focus; customer experience;
best facilities; no stupid rules; revenue
driven; better experience for lower yield
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
Private Equity-financed
Firm, Best *Case
*
Focus! Focus! Focus!
*In a [Big] hurry
*CEO/Top team, “skin
in the game”
*CEO, 100% of time
on the biz
*Merit! Merit!
*Motivated oversight
*Worst case: Rape & Pillage
There’s “A”
and then
there’s “A.”
InnoTacs
We become
who we spend
time with!
Innovation’s Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
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
“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
futuremark
“To grow, companies need
to break out of a vicious
cycle of competitive
benchmarking and
imitation.”
—W. Chan Kim & Renée Mauborgne,
“Think for Yourself —Stop Copying a Rival,” Financial Times/2003
“How do dominant companies
lose their position? Two-
thirds of the time,
they pick the wrong
competitor to worry
about.”
—Don Listwin, CEO,
Openwave Systems/WSJ
Kodak …. Fuji
GM …. Ford
Ford …. GM
IBM …. Siemens, Fujitsu
Sears …. Kmart
Xerox …. Kodak, IBM
“The best swordsman
in the world doesn’t need to
fear the second best swordsman
in the world; no, the person for him to be
COMPETITORS:
afraid of is some ignorant antagonist who has
never had a sword in his hand before; he
doesn’t do the thing he ought to do, and so the
expert isn’t prepared for him; he does the thing
he ought not to do and often it catches the
expert out and ends him on the spot.”
—Mark Twain
“Don’t
benchmark,
futuremark!”
Impetus: “The future is already here; it’s just
not evenly distributed” —William Gibson
Find ’em!
“Somewhere in your
organization, groups of
people are already doing
things differently and better.
To create lasting change, find
these areas of positive
deviance and fan the flames.”
—Richard Pascale & Jerry Sternin,
“Your Company’s Secret Change Agents,” HBR
Innovation
“Tool”/“Source” # 1:
Angry-furiousagitated
Person/ People
invite ’em!
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
send ’em on
a quest!
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.”
Concoct a
Parallel
universe!
“Venture”
fund: Gerstner/Amex,
Dow/Marriott, Grove/Intel,
Bedbury/Starbucks
“SkunkWorks”/ “ParallelUniverse”
“the
solution”
Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
Try it. Try it. Try it
Try it. Try it. Try it
Try it. Try it. Try it
Try it. Try it. Try it
Try it. try it. Try it
Try it. try it. Try it
“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
“We ground
up more pig
brains!”
READY.
FIRE!
AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“You miss 100
percent of the
shots you never
take.”
—Wayne Gretzky
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”
“Intelligent people
can always come up
with intelligent
reasons to do
nothing.”
—Scott Simon
tolerate
[encourage?]
failure
“Fail . Forward.
Fast.”
High Tech CEO, Pennsylvania
“Fail faster.
Succeed Sooner.”
David Kelley/IDEO
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
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
Think about It!?
Innovation =
Reaction to the
Prototype
Source: Michael Schrage
“Learn not to
be careful.”
—Photographer Diane Arbus
to her students (Careful = The sidelines, from
Harriet Rubin in The Princessa)
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
Speed/
Tempo/
is-it
“We don’t sell
insurance anymore.
We sell
speed.”
Peter Lewis, Progressive
Wal*Mart (!)
& Katrina
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
“UPS used to be a trucking company
Now it’s
a technology
company with
trucks.”
with technology.
—Forbes
Open-source
Goldmining!
Rob McEwen, CEO,
Goldcorp Inc.
“Goldcorp Challenge”/
$575,000
Source: Wikinomics: How Mass Collaboration Changes
Everything, Don Tapscott & Anthony Williams
Power Tools
For Power
Strategies
“ebusiness is about
rebuilding the
organization from the
ground up. Most companies today
are not built to exploit the Internet. Their
business processes, their approvals, their
hierarchies, the number of people they
employ … all of that is wrong for running
an ebusiness.” —Ray Lane, Kleiner Perkins
5% F500 have CIO
on Board: “While some of the
world’s most admired companies—Tesco,
Wal*Mart —are transforming the business
landscape by including technology experts on
their boards, the vast majority are missing out
on ways to boost productivity, competitiveness
and shareholder value.”
Source: Burson-Marsteller
bet big
“Beware of the tyranny
of making Small Changes
to Small Things. Rather,
make Big Changes to
Big Things.”
—Roger Enrico, former Chairman, PepsiCo
“[Immelt] is now identifying
technologies with which GE
systematically
set out to build
entirely new
industries”
will …
—Strategy+Business, Fall 2005
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
Nicholas Negroponte
Five MYTHS About Changing Behavior
*Crisis is a powerful impetus for change
*Change is motivated by fear
*The facts will set us free
*Small, gradual changes
are always easier to
make and sustain
*We can’t change because our brains become
“hardwired” early in life
Source: Fast Company/05.2005
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
= #1
Buy a
Mirror!
Step #1:
Inno64:
Innovation
Strategies
& Tactics
Excellence: The SE22:
ORIGINS OF
SUSTAINABLE
ENTREPRENEURSHIP
SE22/Origins of Sustainable Entrepreneurship
1. Genetically disposed to Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,
Fox, Stanford University, MIT)
2. Perpetually determined to outdo oneself, even to
the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)
3. Treat History as the Enemy (GE)
4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)
5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco,
GSK, GE, Microsoft)
6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)
7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple,
Microsoft, CitiGroup, PepsiCo)
8.
“Culturally” as well as
organizationally Decentralized
(GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
HP’s Big “Duh”!
Decentralize ($90B)
Undo “Matrix”
Accountability
Source: “HP Says Goodbye To Drama”/
BW/09.05/re Mark Hurd’s first 5 months
SE22/Origins of Sustainable Entrepreneurship
18. Unmistakable Results & Accountability focus from
the get-go to the grave (GE, New York Yankees, PepsiCo)
19. Up
or Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios in general)
20. Competitive to a fault! (GE, New York Yankees, News
Corp/Fox, PepsiCo)
21. “Bi-polar” Top Team, with “Unglued” Innovator #1,
powerful Control Freak #2 (Oracle, Virgin) (Watch out when
#2 is missing: Enron)
22. Masters of Loose-Tight/Hard-nosed about a very few
Core Values, Open-minded about everything else
(Virgin)
EXCELLENCE.
4/40.
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
“If if feels
painful and
scary—that’s
real delegation”
—Caspian Woods, small biz owner
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
Ex-ecu-tion!
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“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
Projects =
Goal (“Vision”)
Milestones =
Project
Rapid Review +
Truth-telling =
accountability
Ac-counta-bil-ity!
“GE has set a standard
of candor. … There is no
puffery. … There isn’t
an ounce of denial in
the place.”
—Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
6:15A.M.
DECENTRALIZATION.
EXECUTION.
ACCOUTABILITY.
6:15A.M.
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/2004
MasterCard
Advisors
“Security
‘devices’” to
“Turnkey security
solutions”
Huge:
Customer
Satisfaction
versus
Customer
Success
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ STUFF ‘N’ THINGS
Goods
Raw Materials
The Value-added Ladder/Stuff & TRANSACTIONS
Services
Goods
Raw Materials
The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging
Solutions
Services
Goods
Raw Materials
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’ ” (“Solve”)
Era #3/Complex Value Networks: “How our
‘system’ can change you and deliver
‘business advantage’ ” (“CultureStrategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging
Solutions/Business
Advantage
Services
Goods
Raw Materials
“The business of selling is not just about matching viable
It’s
equally about managing the
change process the customer will
need to go through to implement
the solution and achieve the value
promised by the solution. One of the key
solutions to the customers that require them.
differentiators of our position in the market is our attention to
managing change and making change stick in our customers’
organization.”* (*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
EXCELLENCE.
NECESSITY.
OPPORTUNITY.
“ ‘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
Chicago:
HRMAC
“support function” /
“cost center”/
“overhead”
or …
Are you …
“Rock
Stars of the
Age of
Talent”
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
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)
“Solutions World”: The
Mega-PSF
Big Idea:
“Corporation” as
Mega-“PSF”
(Professional Service
Firm*)
* “Virtual” Collection of Entrepreneurially-minded
Professionals (“Talent”/“Roster”) Creating/Applying
Intellectual Capital (“Work Product”)
The “PSF35”:
Thirty-Five
Professional Service Firm
Marks of Excellence
The PSF35: The Work & The Legacy
1.
CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the
Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”
Pointed
Point of
View!
EXCELLENCE.
ATTITUDE.
TRANSFORMATION.
PSF.
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
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
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
C
*Chief e
O*
Xperience Officer
“Most executives have
no idea how to add value
to a market in the
metaphysical world. But
that is what the market will cry
out for in the future. There is no
lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Female
dominance
Experiences:
EXCELLENCE.
DRAMATIC.
DIFFERENCE.
DOABLE.
This is not a
“mature
category.”
This is an
“undistinguished
category.”
7X. 730A800P.
F12A.*
*’93-’03/10
yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
#1/100
“Best Companies to
Work for”/2005
Wegmans
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!!)
tom peters: what
I’ve Learned
about “Small
Business”
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."
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
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
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
“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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
C
*Chief Dream Merchant
“Dreams Come
True”:
IBM
“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
EXCELLENCE.
VALUE-ADDED LADDER IV.
LOVE IT.
Kevin Roberts:
Lovemarks!
Tattoo Brand: What %
of users would tattoo the
brand name on their body?
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ ECSTASY
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
C
O*
*Chief Lovemark Officer
Up,
Up,
Up,
Up
the Value-added Ladder.
Ladder.2006: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOUL I.
THE STORY.
“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
Market Power =
Story Power
Best
story
wins!
“We are in the twilight of a society based on data. As
information and intelligence become the domain of
computers, society will place more value on the one
human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will
affect everything from our purchasing decisions to how we
Companies
will thrive on the
basis of their stories
and myths.
work with others.
Companies will need to
understand that their products are less important than
their stories.” —Rolf Jensen, Copenhagen Institute
for Future Studies
C
O*
*Chief Storytelling Officer
EXCELLENCE.
SOUL II.
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
C
O*
*Chief Design Officer
EXCELLENCE.
NEW MARKETS.
ENORMOUS.
OPPORTUNITIES.
women.
BOOMERS.
GEEZERS.
E-nor-mous
Strat-eg-ic
opp-or-tun
women
BOOMERS
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
WOMEN.
???????
“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.
EXCELLENCE.
FOUND.
DUH.
“To be a leader in
consumer products,
it’s critical to
have leaders who
represent the
population we
serve.”
—Steve Reinemund/CEO/PepsiCo
“To be a leader in
consumer products,
it’s critical to have
leaders who
represent the
population we serve.”
—Steve Reinemund/
FORMER
CEO/PepsiCo
Indra Nooyi
A[nother] Delightful Blinding
Flash of the Obvious!* **
“P&G does more than half its
business outside the U.S.,
so [CEO A.G.] Lafley has
recast his top executive
group to be 50% nonAmerican.” —Fortune, 1218.06
*I’ll take it!
**Women next? 85%?
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
WOMEN.
“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%
The “91% Factor”!
More than 9 in 10 women
age 35 - 49 say they
either make or at least
equally influence their
household purchases
of home electronics.
Source: Andrea Learned, co-author, Don’t Think Pink
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
91%
women:
ADVERTISERS “DON’T
UNDERSTAND US.”
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight
Team (Martha Barletta, Marketing to Women)
The Perfect Answer
Jill and Jack buy
slacks in black…
“She
knows more about the
[Volvo] 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
EVEolution:
The Eight Truths
of Marketing
to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your
Female Consumers to
Each Other Connects
Them to Your Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
‘How was school today?’ a girl
usually tells her mother every
detail of what happened, while a
boy might grunt, ‘Fine.’ ”
EVEolution
“Women don’t buy
They
join them.”
brands.
EVEolution
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
Editorial/Men: Tables, rankings.*
Editorial/Women:
Narratives that cohere.*
*Redwood (UK)
Purchasing Patterns
Women: Harder to convince;
more loyal once convinced.
Men: Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
2.6 vs.
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s
Market =
Opportunity
No. 1.
P-l-e-a-s-e Read …
Fara Warner:
The Power of
the Purse
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
“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.
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
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
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
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)
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?
Not Just America …
“Boys Falling
Seven Years
Behind Girls
at GCSE Level”
—headline, Weekly Telegraph, UK, 10.25.06
“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 women.” —Aude Zieseniss de Thuin, Financial Times,
boys in the school system.
10.03.2006
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
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’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
New (4 of 7) Value-added “Ladder”:
Plays to Women’s Inherent Strengths!
Lovemark/F
Dreams Come True/F
Spellbinding Experiences/F
Gamechanging Solutions/F
Services/F
Goods/M
Raw Materials/M
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
BOOMERS.
GEEZERS.
women
BOOMERS
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%)
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution
to Reinvent America
BoomerBucks!
Boomer turns 50: every 7 seconds. 2009: majority of
U.S. households headed by someone over 50. 20062016: U.S. population up 22.9 million; 22.1 million in
over-50 group. 2006: 1 in 5 adults is F, over 50.
Women between 50-70 who are single: 35%. Age
45-54: highest average income, $59, 021 (national
average is $42,209). FASTEST GROWING INCOME
CATEGORY: WOMEN, 55-64 (4X men in same
category). Women, age 60-64: 50% still in
workforce. Highest net worth: families, 55-64
($182,000). People over 50: 70% to 79% of all
financial assets; 80% of all savings accounts; 62% of
all large Wall Street asset accounts; 66% of $$
invested in the stock market. Age 50+: 29% of
population, 40% of total consumer spending, 50% of
discretionary spending. Next 2 decades: BOOMERS
WILL INHERIT $14 TRILLION-$25 TRILLION (“largest
intergenerational transfer of wealth in history”).
—Marti Barletta, PrimeTime Women
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
“Fifty-four years of age has been
the highest cutoff point for any
marketing initiative I’ve ever been
involved in. Which is pretty weird
when you consider age 50 is right
about when people who have
worked all their lives start to have
some money to spend.” —Marti Barletta,
PrimeTime Women
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
Possession Experiences /“Desires
for things”/Young adulthood/to 38
Catered Experiences/ “Desires to
be served by others”/Middle
adulthood
Being Experiences/“Desires for
transcending experiences”/Late
adulthood
Source: David Wolfe and Robert Ageless Marketing
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution
to Reinvent America
not.
Yet.
Done.
Just Say “No” (!):
Launch an
“Initiative.”
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males/whoops
(Retire-old/Poorly educated-young)
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
E-nor-mous
Strat-eg-ic
opp-or-tun
EXCELLENCE.
BEDROCK.
TALENT.
Hire very
good
people!
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
changed 20 of his
40 box plant managers
to put more talented,
higher paid managers in
charge. He increased profitability from
Pacific …
$25
million to
$80
million in
—Ed Michaels, War for Talent
2
years.”
C
O*
*Chief talent acquisition Officer
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
“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
EMPHASIZE
THE “SOFT
SKILLS.”
A Few Lessons from the Arts
Each hired and developed and evaluated in unique ways
(23 contributors = 23 unique contributions = 23 pathways =
23 personalities = 23 sets of motivators)
Attitude/Enthusiasm/Energy paramount
Re-lent-less!
“Practice is cool” (G Leonard/Mastery)
Team and individual
Aspire to EXCELLENCE = Obvious
Ex-e-cu-tion
Talent = Brand = Duh
“The Project” rules
Emotional language
Bit players. No.
B.I.W. (everything)
Delta events = Delta rosters (incl leader/s)
PUT HR AT THE
HEAD OF THE HEAD
TABLE. BEST
PEOPLE. NOBLEST
MISSION.
A review of Jack and Suzy Welch’s Winning claims there are but
two key differentiators that set GE “culture” apart from the herd:
First: Separating financial forecasting and performance
measurement. Performance measurement based, as it usually is, on budgeting
leads to an epidemic of gaming the system. GE’s performance measurement is
divorced from budgeting—and instead reflects how you do relative to your past
performance and relative to competitors’ performance; i.e., it’s about how you
actually do in the context of what happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Putting HR on
a par with finance
and marketing.
Second:
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.
< 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.
Re-imagine
People Power:
The Talent50
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
EXCELLENCE.
INDIVIDUAL.
BRAND YOU.
“One of the defining
characteristics [of the
change] is that it will be less
driven by countries or
corporations and more driven
by real people. It will unleash
unprecedented creativity, advancement of
knowledge, and economic development. But
at the same time, it will tend to undermine
safety net systems and penalize the
unskilled.” —Clyde Prestowitz, Three Billion New Capitalists
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)
“If there is nothing
very special about
your work, no matter
how hard you apply yourself
you won’t get noticed, and
that increasingly means you
won’t get paid much either.”
—Michael Goldhaber, Wired
New Work SurvivalKit.2006
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!)
“You are the
storyteller of your
own life, and you can
create your own
legend or not.”
—Isabel Allende
Distinct
…
… or
Extinct
Getting to WOW
Through Mastery of …
The Sales25.
Getting Things Done:
Power &
The
Implementation34.
Presentation
Excellence: The
PresX56
The Interviewing
Excellence:
The IntX31
EXCELLENCE.
MOTIVATIONAL
STUFF.
EXCELLENCE.
AWOL: THE
SCHOOLS
FIASCO.
“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!
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
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
New Economy Biz Degree Programs
MBA (Master of Business Administration)
MMM1 (Master of Metaphysical Management)
MMM2 (Master of Metabolic Management)
MGLF (Master of Great Leaps Forward)
MTD (Master of Talent Development)
W/MwGTDw/oC (Woman/Man Who Gets
Things Done without Certificate)
DE (Doctor of Enthusiasm)
EXCELLENCE.
BEDROCK.
LEADERSHIP.
9Ps. L23.
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)
“Management has a lot to do with
answers. Leadership is a function of
questions. And the first question for a
‘Who do
we intend to
be?’ Not ‘What are we going to
leader always is:
do?’ but ‘Who do we intend to be?’”
—Max De Pree, Herman Miller
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first book?”
“Close your eyes and imagine me
immediately doing something about
what you’ve just said. What would it
be?” “Do you feel you have an
obligation to ‘Make the world a
better place’?”
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“Whenever anything is
being accomplished, I
have learned, it is being
done by a monomaniac
with a mission.”
—Peter Drucker
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
“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.
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!” —RG
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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
Grant had an
extreme, almost phobic
dislike of turning back
and retracing his steps.
peculiarity of his character:
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
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
"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.
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
"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)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Beware of the tyranny
of making Small Changes
to Small Things. Rather,
make Big Changes to
Big Things.”
—Roger Enrico, former Chairman, PepsiCo
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.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
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.
THE LEADERSHIP23.
Leadership23/ML
1.
2.
3.
4.
5.
6.
7.
8.
Enthusiasm. Energy. Exuberance.
Action. Execution.
Tempo. Metabolism.
Relentless.
Master of Plan B.
Accountability.
Meritocracy.
Leaders “do” people. Mentor. (“Success
creation business.”)
9. Women. Diversity.
10. Integrity. Credibility. Humanity. Grace.
11. Realism.
12. Cause. Adventures. Quests.
Leadership23/ML
13. Legacy.
14. Best story wins.
15. On the edge. (“Wildest chimera of a
moonstruck mind.”)
16. “Reward excellent failures. Punish
mediocre successes.”
17. Different > Better. (“Only ones who do
what we do.”)
18. MBWA. Customer MBWA.
19. Laughs.
20. Repot. Curiosity. Why?
21. You = Calendar. “To Don’t.” Two.
22. Excellence. Always.
23. Nelsonian! (“Other admirals more afraid
of losing than anxious to win.”)
High end.
Experience.
Design.
Crazy for customers!
Crazy for Patients! (“Whole person”).
Wow!
People first, second, third.
Breakthrough or bust.
“Seriously cool.”
“Virus management.”
Resilience.
Tippy-top talent.
“Solutions,” not “just” “satisfaction.”
Engagement.
Self-control. (Customer/Patient/Student control.)
Blue Ocean.
“Mundane stuff” made great.
Great demographic.
The best. Period.
Effective partnering.
K.I.S.S.
Play to win. (Offense > Defense.)
Bold!
Action! Always!
Integrity-as-strategy.
Enthusiasm
Energy
Exuberance
Voracious Curiosity
Irritability/Dis-satisfaction
Relentlessness
Self-reliance
“Closer” (Execution)
excellence
“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)
EXCELLE
ALWAYS