Transcript LONG Tom Peters’ EXCELLENCE. ALWAYS. DealerTrack Las Vegas/08 November 2006 FLOWER POWER Thank You! “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and.

LONG
Tom Peters’
EXCELLENCE.
ALWAYS.
DealerTrack
Las Vegas/08 November 2006
FLOWER
POWER
Thank
You!
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
Jim Jeffords
oversight!
The …
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
Tom Peters’
EXCELLENCE.
ALWAYS.
DealerTrack
Las Vegas/08 November 2006
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
“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.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the Market
“Ford, GM and Chrysler do
not just make cars
expensively … they make
bad cars expensively.”
—Investec
analyst, International Herald, 0805.06
Flat as a Pancake (Or Worse)
Wal*Mart … Dell …
Intel … Home Depot
… Microsoft … GE
The “last
word”:
There is
no “last
word.”
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
“It is generally much easier to
organization
kill an
than change it
substantially.”
—Kevin Kelly, Out of Control
Message/Implication: go for it!
C.E.O.
C.D.O.
to
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
“20-minute
rule”
—Craig Johnson/30 yrs
EXCELLENCE.
ALL. YOU. NEED.
TO. KNOW.
ANYWHERE.
ANY MARKET.
ANY TIME.
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
A store is
a store is a
store is a
EXCELLENCE.
ALL. YOU. NEED.
TO. KNOW.
ANYWHERE.
ANY MARKET.
ANY TIME.
Jim’s
Group
EXCELLENCE.
SIBERIA.
“Why in the
world did
you go to
Siberia?”
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Customers.
Execution.
Enthusiasm.
Excellence.
Excellence1982: The Bedrock “Eight Basics”
1. A Bias for
Action
2. Close to the Customer
3. Autonomy and Entrepreneurship
4. Productivity Through
People
5. Hands On, Value-Driven
6. Stick to the Knitting
7. Simple Form, Lean Staff
8. Simultaneous Loose-Tight Properties”
The older I
get the less
boring the
“basics”
become!
EXCELLENCE.
INNOVATE.
OR. DIE.
EXCELLENCE.
INNOVATE.
ALL. WRONG.
More Than $$$$
R&D
spending,
last 25 years/USA?
“I don’t believe in economies of
You don’t get
better by being
bigger. You get
worse.”
scale.
—Dick Kovacevich/Wells Fargo
EXCELLENCE.
INNOVATE.
AXIOMATIC.
The Mess Is
the Message!
Period!
“We are in a
brawl with
no rules.”
—Paul Allaire
S.A.V.
EXCELLENCE.
INNOVATE.
TACTICS.
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
READY.
FIRE!
AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
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”
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Speed.
Tempo.
is-it.
We all live in
Dell-Wal*MarteBay-Google
World!
“We don’t sell
insurance anymore.
We sell
speed.”
Peter Lewis, Progressive
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
Wal*Mart (!)
& Katrina
“UPS used to be a trucking company
Now it’s
a technology
company with
trucks.”
with technology.
—Forbes
Grunge Removal 101
Ellie Mae
email from … JUDITH SINNARD
(smarteplans.com): Judith has a “little” idea.
She provides eServices to the Houston real
estate community. She measures rooms at a
MLS home, provides at a Click dimensions
thereof … as well as photos of each room.
The average
days-on-market for one of
“her” homes was 33 last
year, compared to the
average of 82 days. “Little” idea.
Little deal? Big deal?
Big industry! Big difference!
Wikinomics:
How Mass
Collaboration
Changes
Everything
by: Don Tapscott & Anthony Williams
Power Tools
For Power
Strategies
Sysco!
Go for the Bold
* Bold/Aggressive/$$$$
* Bold/GameChanger
* Bold/Creative Destruction
* Bold/Web Fanaticism
Productivity!
McKesson 2003-2004:
Revenue … +$7B
Employees … +500
Source: USA Today
“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
re-imagine the
“value added”
equation
Up,
Up,
Up,
Up
the Value-added Ladder.
The [NEW] “Value-added Ladder”
Gamechanging Solutions/
Implemented
Customer success
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials
“Experiences
are as distinct
from services as
services are from
goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-old accountant
to dress in black
leather, ride through
small towns and have
people be afraid
of him.”
Harley exec, quoted in Results-Based Leadership
The [NEW] “Value-added Ladder”
spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
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 [NEW] “Value-added Ladder”
dreams come true
spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
[totally] re-imagine
the business around
the two staggering
“new” opportunities
women.
BOOMERS.
GEEZERS.
The Copenhagen (Self) Pact re “This Topic”:
*Loud!
*Repetitive!
*Aggressive!
*Unfriendly!/rude!/
insulting!
women
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males /whoops
(Retire-old/Poorly educated-young)
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“Idiot” is
(far) too
kind a word.
“That’s a very
diverse* team.”
—Patrick Cescau, CEO, Unilever**
*1 of 14 Board of Directors members is a woman
(not an exec); 2 of 7 Exec Team members
are … Indians. (Source: FT/24-25 June.)
**Approximately
85%
products are purchased by … women.
of Unilever’s
“That’s a
VERY
diverse team.”
—Patrick Cescau, CEO, Unilever* **
*1 of 14 Board of Directors members is a woman
(not an exec); 2 of 7 Exec Team members
are … Indians. (Source: FT/24-25 June.)
**Approximately 85% of Unilever’s products
are purchased by … women.
“That’s a
VERY
man.”
—Tom Peters
sick
EXCELLENCE.
FOUND.
DUH.
“To be a leader in
consumer products,
it’s critical to have
leaders who
represent the
population we serve.”
—Steve Reinemund/PepsiCo
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
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
“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
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.
“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
96%, against the Tokyo
stockmarket’s rise of 13%.”
by
—Economist, 15 April 2006
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
“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”
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline, Economist, April 15, 2006, Leader, page 14
“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
“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?
“One thing is certain: Women’s rise to power, which is
linked to the increase in wealth per capita, is happening
in all domains and at all levels of society. Women are no
longer content to provide efficient labor or to be
consumers with rising budgets and more autonomy to
spend. … This is just the beginning. The phenomenon
will only grow as girls prove to be more successful than
For a number of
observers, we have already
entered the age of ‘womenomics,’
the economy as thought out
and practiced by a woman.”
boys in the school system.
—Aude Zieseniss de Thuin, Financial Times, 10.03.2006
1. Participation rate/2 of 3 new jobs, last
30 years.
2. Male workforce departures/SENIOR male
workforce departures.
3. Shrinking pay gap/same jobs.
4. More senior positions. Greater decisionmaking/expenditure/organization
design authority. More line jobs.
5. Female solo head-of-household growing.
6. Longevity.
7. Education.
8. More effective money management.
“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
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
boomersgeezers
“One particularly puzzling category of youthobsession is the highly coveted target of men
18-34, and it’s always referred to as ‘highly
coveted category.’ Marketers have been
distracted by men age 18-34 because they are
getting harder to reach. So what? Who wants
to reach them? Beyond fast food and beer, they
don’t buy much of anything. … The theory is
that if you ‘get them while they’re young,
What
nonsense!”
they’re yours for life.’
—Marti Barletta, PrimeTime Women
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
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
3Q/2006.
$312M. (+18%.)
$1.6B. (+14%.)
Source: BusinessWeek, 1106.06, “Harley Just Keeps on
Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely.
So why is the stock at a record high?”
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
Median Household Net Worth
<35: $7K
35-44: $44K
45-54: $83K
55-64: $112K
65-69: $114K
70-74: $120K
>74: $100K
Source: U.S. Census
“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
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
BONUS.
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
GENERIC DEMOGRAPHIC
TSUNAMI.
(UNPRECEDENTED IN HISTORY.)
Demographic Upheaval!
1/1/2008: 60% of the Prime Work Force
(“boomers”), mostly white males, will be able
to retire—at a rate of
10,000 per day.
As of 2005: 75% of people entering the
workforce are women and minorities. As of
“flood the
management ranks” as the
2008, they will
PWF retires.
Programs for recruiting women and minorities
with the necessary intensity: mostly AWOL.
Selling to Men, Selling to Women, Jeffery Tobias Halter
EXCELLENCE.
1966. 2006.
De-centralization
execution
accountability
6:15a.m.
“If if feels
painful and
scary—that’s
real delegation”
—Caspian Woods, small biz owner
De-centralization
execution
accountability
6:15a.m.
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
De-centralization
execution
accountability
6:15a.m.
“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)
De-centralization
execution
accountability
6:15a.m.
De-centralization
execution
accountability
6:15a.m.
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.”
INVITE THEM TO
JOIN US IN A
JOURNEY TO
EXCELLENCE!
“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
PUT HR AT THE
HEAD OF THE
HEAD TABLE.
DD$21M
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
Brand =
Talent.
Urgent/Angry
Message to
Convenience Store
Execs: Less on
“Renovation.” More
on “People”!
EXCELLENCE.
BEDROCK.
LEADERSHIP.
“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)
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!” —RG
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
EXCELLE
ALWAYS