Transcript Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years.

Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here,
you will find at tompeters.com the last eight years of presentations, a
basketful of “Special Presentations,” and, above all, Tom’s constantly
updated Master Presentation—from which most of the slides in this
presentation are drawn. There are about 3,500 slides in the 7-part “Master
Presentation.” The first five “chapters” constitute the main argument:
Part I is context. Part II is devoted entirely to innovation—the sine qua
non, as perhaps never before, of survival. In earlier incarnations of the
“master,” “innovation” “stuff” was scattered throughout the presentation—
now it is front and center and a stand-alone. Part III is a variation on the
innovation theme—but it is organized to examine the imperative (for most
everyone in the developed-emerging world) of an ultra high value-added
strategy. A “value-added ladder” (the “ladder” configuration lifted with
gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a
specific logic for necessarily leaving commodity-like goods and services in
the dust. Part IV argues that in this age of “micro-marketing” there are
two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V
underpins the overall argument with the necessary bedrock—Talent, with
brief consideration of Education & Healthcare. Part VI examines
Leadership for turbulent times from several angles. Part VII is a
collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things
I’ve learned along the way.”
Enjoy! Download! “Steal”—that’s the whole point!
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this presentation [and ensure
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NOTE:
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Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
World Marketing and Innovation Forum
Madrid/19 November 2007
*In Search of Excellence 1982-2007
“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)
If Not
Excellence,
What?
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”
“Execution is
strategy.”
—Fred Malek
<TGW
vs.
>TGR
“one idea.”
1966-2007.
What makes
God laugh?
People
making
plans!
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
“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
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
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:
Built to Last
vs
Built to
Change/Rock
the World
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
Brand =
Talent.
‘do’
“Leaders
people.
Period.”
—Anon.
“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
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
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!
“Every child is
born an artist.
The trick is to
remain an
artist.” —Picasso
“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!
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
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/0327
Muhammad Yunus:
“All human beings
are entrepreneurs. When we
were in the caves we were all selfemployed . . . finding our food, feeding
ourselves. That’s where human history
began . . . As civilization came we
suppressed it. We became labor
because they stamped us, ‘You are
labor.’ We forgot that we are
entrepreneurs.”
Source: Muhammad Yunus/2006 Nobel Peace prize winner,
father of micro-lending /The News Hour—PBS/1122.2006
Single
greatest act
of pure
imagination
$20,000,000,000
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
—Nicholas Negroponte
3M’s Innovation
Crisis: How Six Sigma
Almost Smothered
Its Idea Culture
Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is
how fast a culture can be torn apart,” 3M lead scientist; “In
an innovation economy, [6 Sigma] is no longer a cure all”/BW)
“Strive for
Excellence.
Ignore
success.”
—Bill Young, race car
driver (courtesy Andrew Sullivan)
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
Why in the
World did you
go to Siberia?
An
emotional, vital, innovative,
joyful, creative,
entrepreneurial endeavor
that elicits maximum
Enterprise* ** (*at its best):
concerted human
potential in the
wholehearted service of
others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“I have always
believed that the
purpose of the
corporation is to be a
blessing to the
employees.” *
—Boyd Clarke
*TP: An “organization” is, in fact and after all
is said and done, a/the “house” in which
most of us “live” most of the time.
Organizations exist to serve. Period.
Leaders live to serve. Period.
Passionate servant leaders, determined to create a
legacy of earthshaking transformation in their domain
create/must necessarily create organizations which
no less than Cathedrals in
which the full and awesome
power of the Imagination and
Spirit and native
Entrepreneurial flair of
diverse individuals is
unleashed … In passionate pursuit of jointly
are …
perceived soaring purpose and personal and community
and client service Excellence.
I’m so angry I
could scream*
(*so I will!)
Rocket Science?
Buffett I:
But what about
the value of the
underlying asset?
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
Hard Is Soft
Soft Is Hard
“What I learned from my years
as a hostage negotiator is that
we do not have to feel
powerless—and that
bonding
is the antidote to
the hostage situation.” —George
Kohlrieser, Hostage at the Table
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”
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
Women Leaders’ Time Has Come …
Project team (old): 23 people, all from our company (More
or less amenable to “orders”)
Project team (new): 43 people from 7 companies in 4
countries on 3 continents (Moved only by effective
persuasion and development of common commitment)
“Worker,” circa 1982: Rote work, incl. most white-collar
work (Amenable to “orders,” power exercised directly)
“Worker,” circa 2007: Project work, team work, mixedgroup work, creative work, co-creation with client—
microprocessors do the “rote stuff” (Commitment is
voluntary, leadership is by developing positive
relationships, inducing “creatives” to stretch, power
exercised indirectly)
“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
Hard Is Soft
Soft Is Hard
R.O.I.R.
Return On
Investment In
Relationships
Relationships
(of all varieties):
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.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
“I’m
really
sorry.”
Don’t forget
the “it”!
“It suddenly
occurred to me …
“It suddenly occurred
to me that in the space
of two or three hours
never
he
talked
about cars.” —Les Wexner
Did one of ’em ever turn to the
other and say: “Wow I wonder
what unimaginable new tools,
otherwise not possible, will
be quickly brought forth for
my 19-year-old daughter
Anne because of
this deal?”
Who buys-uses
“it”/1: Sunset for
men!
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“Women are
the majority
market”
—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
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
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
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 boys in the school
For a number of observers, we
have already entered the age of
‘womenomics,’ the economy as
thought out and practiced by a
woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006
system.
Who buys-uses
“it”/2: Sunrise
for old folks!
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
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!
“gurugate”: The
Gurus’ fixation with
“the wrong stuff”*
*Not “they,” but “us.”
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
“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
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
none
found that
of the longterm survivors managed to outperform
the market. Worse, the longer
companies had been in the database,
the worse they did.” —Financial Times
You don’t
get better by
being bigger.
You get
worse.”
Dick Kovacevich:
#4 Japan
#2T china
#2t USA
#1 Germany
Reason!!!
Mittelstand
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Family Businesses
Two-thirds of total #s
of companies
One-half of biggest companies
>One-half GDP
>One-half employment
6% more profitable
7% better ROA
Higher income growth
Higher revenue growth
Source: John Davis, HBS
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Jim’s
Group
Jim’s Mowing
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
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
“Natural selection is death. ...
Without huge amounts of
death, organisms do not
change over time. ... Death
is the mother of structure. ...
It took four billion years of
death ... to invent the human
mind ...” — The Cobra Event
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability (“Built to last”)!
Famous CEOs!
Mission impossible?
$36B/’98
minus
$675M/‘07
Market capitalization
lost per day, 19982007:
$10,000,000/Day
*Lived in same town all adult life
*First generation that’s wealthy/
no parental support
*“Don’t look like millionaires, don’t
dress like millionaires, don’t eat like
millionaires, don’t act like millionaires”
*“Many of the types of businesses [they] are in could be
classified as ‘dull-normal.’ [They] are welding contractors,
auctioneers, scrap-metal dealers, lessors of portable toilets,
dry cleaners, re-builders of diesel engines, paving
contractors …”
Source: The Millionaire Next Door, Thomas Stanley & William Danko
The “Fabulous Five”:
*SMEs!
*Private companies!
*“Dull” industries!
*Productive churn:
Built to Rock the
World!
*Laudable CEOs!
And in
conclusion …
Sir Richard’s Rules:
Follow your passions.
Keep it simple.
Get the best people to help you.
Re-create yourself.
Play.
Source: Fortune on Branson
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
If Not
Excellence,
What?