Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years.
Download ReportTranscript 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”!
you will find at updated tompeters.com
Beyond the set of slides here, the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly Part I Master Presentation is context. Part II —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: 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. gratitude from Joe Pine and Jim Gilmore’s 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 the dust. Part IV Experience Economy ) lays out a specific logic for necessarily leaving commodity-like goods and services in argues that in this age of “micro-marketing” there are two macro -markets of astounding size that are dramatically under attended by all but a few; namely women and boomers-geezers. underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. I’ve learned along the way.” Part VI Leadership for turbulent times from several angles.
examines Part VII is a Part V collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things Enjoy! Download! “Steal”—that’s the whole point!
NOTE: To appreciate this presentation [and ensure that it is not a
mess
], you need Microsoft fonts:
“Showcard Gothic,” “Ravie,”
and
“Chiller” “Verdana”
Tom Peters’ X25*
EXCELLENCE. ALWAYS.
Creativity World Forum 12 November 2007 * In Search of Excellence 1982-2007
The “guru Gaffe s ” “hall of shame”: the “Over-rated Eight”!
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Over-rated:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Too big to manage?
Citi/Chuck Prince?
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious :
Buy a very large one and just wait
.” —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 found that
none
of the long term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did .” —Financial Times
#1 Exporter?
#4 Japan
#4 Japan #2T China #2T USA
#4 Japan #2T china #2t USA
#1 Germany
Reason!!!
Mittelstand
e.g. …
Goldmann Produktions
(11/50%/$5M/”dip and coat,” expensive pigments vs “through coloring,” fades Bekro Chemie)
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
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
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Jim’s Group
Jim’s Mowing Canada Jim’s Mowing UK 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 Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
etc.
PRSX/Paragon Railcar Salvage*
*Salvaged railcars into bridges, etc.
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
The last word: There is
no
“last word.”
Headline, Wall Street Journal, 3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed” Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”
Q4/2006
+500,000
= ? Source: Barron’s 0922.07
Q4/2006
+500,000
=
+7,700,000 -7,200,000
Source: Barron’s 0922.07
“Natural selection is death. ...
Without huge amounts of death, organisms do not change over time.
mind ...”
—
... Death is the mother of structure. ... It took four billion years of death ... to invent the human
The Cobra Event
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Mission impossible?
$36B/’98
minus $675M/‘07
Market capitalization lost per day, 1998 2007: $10,000,000/Day
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Hard Is Soft Soft Is Hard
Hard Is Soft (Plans, # s ) Soft Is Hard (people, customers, values, relationships))
Idiots : “ Hard ” ?????
“ Mark-to-market ” “ market ” ???? What (What ’ s market????) CDOs/Consolidated-debt Obligation (Value of underlying asset??????) (Value of $64B “ super-senior ” [ “ super-safe ” ] CDOs at Citi???????) Postscript: Bye, bye Stan/Merrill and Chuck/Citi. You ’ re gonna have to learn to live on $100 million or so [Stan/$160M severance], I guess.
Hard Is Soft Soft Is Hard
Hard Is Soft Soft Is Hard
R.O.I.R.
R
eturn
O
n
I
nvestment In
R
elationships
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.
Hard Is Soft Soft Is Hard
TP:
“How to flush $500,000 down the toilet in one easy lesson!!”
< CAPEX > People!
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
“Strive for Excellence. Ignore success.”
—Bill Young, race car driver (courtesy Andrew Sullivan)
EXCELLENCE.
Circa 1982.
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 7. Simple the Knitting Form, Lean Staff 8. Simultaneous Loose-Tight Properties”
“Breakthrough” 82*
People! Customers! Action! Values!
* In Search of Excellence
EXCELLENCE. ASPIRATION.
2006.
Why in the World did you go to Siberia?
Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
2007.
SEPTEMBER.
SYDNEY.
DRUCKER TRIBUTE.
“ 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 are … 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 perceived soaring purpose and personal and community and client service Excellence.
The “Over-rated Eight”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
“Recently I asked several corporate executives what decisions they had made in the last year that would not have been made were it not for their corporate plans.
All had difficulty identifying one such decision.
Since all of the plans are marked ‘secret’ or ‘confidential,’ I asked them how their competitors might benefit from possession of their plans.
Each answered with embarrassment that their competitors would not benefit.”
—Russell Ackoff (from Henry Mintzberg, The Rise and Fall of Strategic Planning )
EXCELLENCE.
“one idea.” 1966-2007.
try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Screw it up.
Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it.
Screw it up.
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.
and again.
We fixed them by doing it over and over, 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
Screw. things.
Up.
“Fail .
Forward. Fast.”
High Tech CEO, Pennsylvania
“The secret of fast progress is
inefficiency
, fast and furious and numerous failures.” —Kevin Kelly
No try. No deal.
“You miss
100%
of the shots you never take.”
—Wayne Gretzky
The “Esteemed Eight”: SMEs!
Private companies!
“Dull” industries!
Productive churn!
Laudable CEOs!
“Soft” stuff!
Excellence!
Action-Execution!
The “nonsense nine”!
The “Nonsense Nine”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Men!
“Forget
China
,
India
and the
Internet
: Economic Growth Is Driven by
Women
.” Economist , April 15, 2006, Leader, page 14 —Headline,
“Women are
the
majority market”
—Fara Warner/ The Power of the Purse
Repeat:
“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 Home Depot via kids) (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak Nike Bratz (women = “emotional centers of the household”) (> jock endorsements; new def sports; majority consumer) Avon (young girls want “friends,” not a blond stereotype) Source: Fara Warner/ The Power of the Purse
“AS LEADERS, WOMEN RULE:
New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
10 UNASSAILABLE REASONS WOMEN RULE Women Women Women Women make [all] the financial decisions.
control [all] the wealth.
[substantially] outlive men.
start most of the new businesses.
Women’s Women work force participation rates have soared worldwide.
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?
The “Notable Nine”: SMEs!
Private companies!
“Dull” industries!
Churn!
Laudable CEOs!
“Soft” stuff!
Excellence!
Action-Execution!
Women!
The “nefarious nine point five”!
The “Nefarious Nine Point Five”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
“Success”!
Plans!
Men!
Young!
!!!!!!!!!!!!!!!!!
“People turning 50 today have
more than half
of their adult life ahead of them.”
—Bill Novelli, 50+: Igniting a Revolution to Reinvent America
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) ambitiou s, 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 twenty five years . We have arrived!
2000-2010 Stats
18-44:
-1%
55+:
+21% (55-64: +47% )
The “Nifty Nine Point Five”: SMEs!
Private companies!
“Dull” industries!
Churn!
Laudable CEOs!
“Soft” stuff!
Excellence!
Action-Execution!
Women!
Boomers-Geezers!
The “terrible ten”!
The “Terrible Ten”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
Plans!
“Success”!
Men!
Incrementalism-Kaizen
Single greatest act of pure imagination
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
—Nicholas Negroponte
The “Terrific Ten”: SMEs!
Private companies!
“Dull” industries!
Churn!
Laudable CEOs!
“Soft” stuff!
Excellence!
Action-Execution!
Women!
Imagination Unbound!
The “egregious eleven”!
The “Egregious Eleven”:
Big companies!
Public companies!
“Cool” industries!
Stability!
Famous CEOs!
“Hard” stuff!
Plans!
“Success”!
Men!
Incrementalism-Kaizen
Minimization!
The Commerce Bank Model
“cost cutting is a death spiral.”
Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
“Our whole story is growing revenue.”
—Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting)
The Commerce Bank Model
“over-invest in our people, over-invest in our facilities.”
Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
vs. >TG R TGR (“Things gone right”) > TGW (“Things Gone Wrong”) (Operational Excellence+) The “Enviable”: SMEs! Private companies! “Dull” industries! Churn! Laudable CEOs! “Soft” stuff! Excellence! Action-Execution! Women! Imagination Unbound! Emphasize the Positive! The “Despicable Dozen”: Big companies! Public companies! “Cool” industries! Stability! Famous CEOs! “Hard” stuff! Plans! “Success”! Men! Incrementalism-Kaizen Minimization! “Every child is born an artist. The trick is to remain an artist.” —Picasso Muhammad Yunus: “ All human beings are entrepreneurs. When we were in the caves we were all self employed . . . 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 “o for 800” Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners Competitors Customers Product Portfolio IS/IT Projects HQ Location Lunch Mates Language (#, Quality) Innovation Alliance Partners (who we “benchmark” against) Strategic Initiatives (LineEx v. Leap) Board “[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time . One successful example Mr. Clean Magic Eraser, based on a product found in an Osaka market.” — Fortune , 12.18.06 The “Hang Out Axiom”: At its core, is a every (!!!) relationship-partnership decision (employee, vendor, customer, etc) strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” The “Delectable Dozen”: SMEs! Private companies! “Dull” industries! Churn! Laudable CEOs! “Soft” stuff! Excellence! Action-Execution! Women! Imagination Unbound! Accentuate the Positive! The “Delectable Dozen”: SME s ! Private companies! “Dull” industries! Productive Churn! laudable CEOs! “Soft” stuff! Excellence! Action-Execution! Women! (Boomers-Geezers!) Imagination Unbound! Emphasize the Positive! Individuality! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. Leader Job One ! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “ —Samuel Taylor Coleridge PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “ You must the change you wish to see in the world.” Gandhi PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore ( Strategy + Business #45) PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. “ Success seems to be largely a matter of after others have let go.” —William Feather, author PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. potent. Positive. “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “ Dennis, you need a … List !” PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE . Potent. Positive. ‘do’ —Anon. —inspired by Robert Greenleaf PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. 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. PRIORITIES. PEOPLE. Potent. Positive. 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. MichelangeloSingapore Candy
The “despicable Dozen”!
Uniformity!
“Normal” =
Individuality!
EXCELLENCE. BEDROCK.
LEADERSHIP.
10Ps.
Paint Portraits of Excellence
Nothing is so contagious as enthusiasm.”
be
hanging on
Three.
‘To-don’t ’
“Leaders
people. Period.”
“Leaders
‘SERVE’
people. Period.”