Transcript LONG Tom Peters’ EXCELLENCE. ALWAYS. World Business Forum Frankfurt/24October2006 Slides at … tompeters.com The Irreducible209+/ The Sales122/ 60TIBs/ Tom-A-to, Tom-ah-to.

LONG
Tom Peters’
EXCELLENCE.
ALWAYS.
World Business Forum
Frankfurt/24October2006
Slides at …
tompeters.com
The Irreducible209+/
The Sales122/
60TIBs/
Tom-A-to, Tom-ah-to
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;
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
Franchise Lost!
TP:
“How many of you really
[600]
crave
a new Chevy?”
“Ford, GM and Chrysler do
not just make cars
expensively … they make
bad cars expensively.”
—Investec
analyst, International Herald, 0805.06
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
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?)
Those Are
Big
Numbers …
5 /42
(Years)
(New Airports)
“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
(500
of 900
Research)
headline/FT/27.03.06
“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.”
—Carly Fiorina/HP/January2004
PAUSE.
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
Jim’s
Group
EXCELLENCE.
SIBERIA.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
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.
THE WORD.
Synonyms
Purity
Transcendence
Virtue
Elegance
Majesty
Antonyms
Mediocrity
EXCELLENCE.
SIBERIA.
“Why in the
world did
you go to
Siberia?”
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.
INNOVATE.
OR. DIE.
“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
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“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/2004)
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
“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:
Innovation
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 have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“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
#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)
“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”
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Speed/
Tempo
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
re-imagine the
“value added”
equation
The [NEW] “Value-added Ladder”
Gamechanging Solutions
Services
Goods
Raw Materials
Are you …
“Rock
Stars of the
Age of
Talent”
Department Head
to …
Managing
Partner,
IS
Inc.
[HR, R&D, etc.]
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
“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
“Rebel Lifestyle!”/Premier “Tattoo Brand”/“Lovemark”
“What we sell is the
ability for a 43-yearold accountant to
dress in BLACK
LEATHER, ride through
small towns and have
people be afraid
of him.”
Harley-Davidson exec, 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
“Dreams Come
True”:
IBM
“Design is treated
like a religion
at BMW.” —Fortune
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’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
“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
“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, 15 April 2006
“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
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/org design authority.
More line jobs.
5. Female solo head-of-household growing.
6. Longevity.
7. Education.
8. More effective money management.
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
Title, Special Report/BusinessWeek
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
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
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
“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
go for it
“[Immelt] is now identifying
technologies with which GE
systematically
set out to build
entirely new
industries”
will …
—Strategy+Business, Fall 2005
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
“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
“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.
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.”
EMPHASIZE
THE “SOFT
SKILLS.”
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
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:
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
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
PARC’s Bob Taylor:
“Connoisseur
of Talent”
“Leaders
‘do’ people.
Period.”
—Anon.
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
…
… or
Extinct
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.
“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
“Most important,
upped the
energy level at
he
Motorola.”
—Fortune on Ed Zander/08.05
“You must
be
the change you
wish to see in the
world.”
Gandhi
“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
“One of my superstitions had
always been when I started to
go anywhere or to do
not to
turn back , or
anything,
stop, until the thing intended
was accomplished.” —Grant
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Presence.
PERSISTENCE.
PEOPLE.
You only
find oil if
you drill
wells.
—The Hunters, by John Masters,
Canadian O & G wildcatter
EXCELLE
ALWAYS