Tom Peters’ EXCELLENCE. ALWAYS. XAlways/KMAC SEOUL/15 September 2006 Slides at … tompeters.com EXCELLENCE. ALL YOU NEED TO KNOW.
Download ReportTranscript Tom Peters’ EXCELLENCE. ALWAYS. XAlways/KMAC SEOUL/15 September 2006 Slides at … tompeters.com EXCELLENCE. ALL YOU NEED TO KNOW.
Tom Peters’ EXCELLENCE. ALWAYS. XAlways/KMAC SEOUL/15 September 2006 Slides at … tompeters.com EXCELLENCE. ALL YOU NEED TO KNOW. CONTEXT. RADICAL TIMES. DESTRUCTION-AS-“STRATEGY”. EXCELLENCE. NO ALTERNATIVE: THE VALUE-ADDED LADDER. (PLUS: “PSF”/THE PROFESSIONAL SERVICE FIRM “MODEL” … OR ELSE.) THE REAL (MESSY!) STORY ON ISSUE #1: INNOVATION. EXCELLENCE 4/40. TALENT. BRAND YOU. LEADERSHIP. EXCELLENCE. ALWAYS. That’s a Big Number …. THREE BILLION NEW CAPITALISTS —Clyde Prestowitz “There is no job that is America’s God-given right anymore.” —Carly Fiorina/HP/January2004 “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ (500 of 900 Research) headline/FT/0327 “There is no job that is _____’s Godgiven right anymore.” EXCELLENCE. THE DESTRUCTION MANDATE. “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin “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; 2 just (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 “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 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) “It is generally much easier to kill an organization than change it substantially.” —Kevin Kelly, Out of Control “We are in a brawl with no rules.” —Paul Allaire READY. FIRE! AIM. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985) C.E.O. to C.D.O. “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec EXCELLENCE. STARTERS. BASICS. People. Product. Clients. Execution. Enthusiasm. Excellence. EXCELLENCE. THE WORD. Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity EXCELLENCE. GAMECHANGER. Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” EXCELLENCE. ALWAYS. “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.*** Business* ** (*at its best): **Excellence. Always. ***Employees, Customers, Suppliers, Communities, Owners, Temporary partners EXCELLENCE. DEFINED. 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 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?) EXCELLENCE. VALUE ADDED. UP THE LADDER. NO ALTERNATIVE. EXCELLENCE I. SOLVE IT. EXCELLENCE. NECESSITY. OPPORTUNITY. “ ‘Outsourcing’ is overrated. Those who fear outsourcing should in fact be afraid of irrelevance; outsourcing is just another way of saying that … you’ve become irrelevant to your customers.” —John Battelle/Point/Advertising Age/07.05 “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.] The “PSF35”: Thirty-Five Professional Service Firm Marks of Excellence The PSF35: The Work & The Legacy CRYSTAL CLEAR POINT OF VIEW 1. (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” Are you the … “Principal Engine of Value Added” *E.g.: Your R&D budget as robust as the New Products team? 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 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) EXCELLENCE II. EXPERIENCE IT. “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage “The [Starbucks] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District Manager Jim’s Group Jim Penman/“Empire Builders”/MT / Jan/Feb 2006/Australia Up, Up, Up, Up the Value-added Ladder. The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials EXCELLENCE III. DREAM IT. Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions Up, Up, Up, Up the Value-added Ladder. The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials Big Blue* *IBM EXCELLENCE IV. LOVE IT. “Brands have run out of juice. They’re dead.” —Kevin Roberts/Saatchi & Saatchi Kevin Roberts: Lovemarks! 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 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. DESIGN. “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 EXCELLENCE. NEW MARKETS. ENORMOUS. OPPORTUNITIES. EXCELLENCE. OPPORTUNITY. “Women are the majority market” —Fara Warner/The Power of the Purse “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, chances are very high that the clueless salesperson spent most of his time speaking to him.” —Selling to Men, Selling to Women, Jeffery Tobias Halter The Perfect Answer Jill and Jack buy slacks in black… 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. “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 “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 “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” EXCELLENCE. OPPORTUNITY. 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder EXCELLENCE. INNOVATE. OR. DIE. “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; 2 just (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 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.” —Mark Sirower, The Synergy Trap answered: “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, former CEO, Reuters “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only the constant pursuit of innovation can ensure long-term success.” render them obsolete. —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) EXCELLENCE. INNOVATION. THE REAL STORY. The Mess Is the Message! Period! An Economic Interpretation of the Constitution of the United States —Charles Beard (1913) The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger —Marc Levinson Tube: The Invention of Television —David & Marshall Fisher Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World —Jill Jonnes The Soul of a New Machine —Tracy Kidder Rosalind Franklin: The Dark Lady of DNA —Brenda Maddox The Blitzkrieg Myth —John Mosier InnoTacs We become who we spend time with! 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 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 “TRY IT” “NOW” “culture” “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 “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 No. 5. By the time our rivals are ready with wires and screws, we are on version No. 10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg tolerate [encourage?] failure “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “Fail faster. Succeed Sooner.” David Kelley/IDEO Sam’s Secret #1! Concoct a Parallel universe! “Venture” fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks The “Sri Lanka Stratagem” Forward, march: 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? 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 EX-ECUTION! “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 have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher “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 ACCOUNT-ABIL-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) RE-LENTLESSNESS “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 “It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.” —WSC 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! “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 EMPHASIZE THE “SOFT SKILLS.” “It’s simple, really, Tom. Hire for s, and, above all, promote for s.” —Starbucks middle manager/field PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION. DD$21M 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. “Leaders ‘do’ people. Period.” —Anon. 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. EXCELLENCE. INDIVIDUAL. BRAND YOU. “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 Distinct Extinct … or … 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!) EXCELLENCE. BEDROCK. LEADERSHIP. EXCELLENCE. BEDROCK. PURPOSE. “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson EXCELLENCE. ENTHUSIASM. ENERGY. PASSION. “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge EXCELLENCE. AGILITY. “The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory, in The New Scientist EXCELLENCE. BEDROCK. SELFMANAGEMENT. “The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” —RG EXCELLENCE. SHOWING UP. MBWA “You must be the change you wish to see in the world.” Gandhi You = Your calendar* *Calendars NEVER lie!! EXCELLENCE. STRETCH. 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 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! EXCELLENCE. THINK BIG. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” —Nicholas Negroponte “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo 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.”) Enthusiasm Energy Exuberance Voracious Curiosity Irritability/Dis-satisfaction Relentlessness Self-reliance “Closer” (Execution) excellence EXCELLE ALWAYS