Transcript Tom Peters’ X25*: EXCELLENCE. ALWAYS. John Laing Homes Costa Mesa/05 December 2006 *In Search of Excellence 1982-2007

Tom Peters’ X25*:
EXCELLENCE.
ALWAYS.
John Laing Homes
Costa Mesa/05 December 2006
*In Search of Excellence 1982-2007
First page, first item in the LA Times “Homes” section Sunday:
"MAJOR PRICE
REDUCTION!
EXCEPTIONAL VALUE
$43,000,000"
Tom Peters’ X25*:
EXCELLENCE.
ALWAYS.
John Laing Homes
Costa Mesa/05 December 2006
*In Search of Excellence 1982-2007
Downturn = Opportunity
*1% in 30 minutes
*Gamechanger while others
sleep (Sysco)
*Trimming fat
*Remember the one who
brung you … now more
than ever
*Sell! Sell! Sell!
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
“The only way to
whip an army is
to go out and
fight it.” —Grant
Source: John Mosier, Grant
"The art of war is simple
enough. Find out where
your enemy is. Get at him as
soon as you can. Strike at him
as hard as you can and as
often as you can, and keep
moving on." —Grant
“One of my superstitions had
always been when I started
to go anywhere or to do
not to
turn back , or stop,
anything,
until the thing intended was
accomplished.” —Grant
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”
Tom Peters’ X25*:
EXCELLENCE.
ALWAYS.
John Laing Homes
Costa Mesa/05 December 2006
*In Search of Excellence 1982-2007
Slides at …
tompeters.com
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
EXCELLENCE.
STARTERS.
BASICS.
K.I.S.S.
“Why in the
world did
you go to
Siberia?”
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentless.
Senility.
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
EXCELLENCE.
ASPIRATION.
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.***
Enterprise* ** (*at its best):
**Excellence. Always.
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“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)
“In-sane-
ly-great”
EXCELLENCE.
REVENUE.
MATTERS.
MOST.
“Analysts … preferred cost cutting, as long as
they could see two or three years of EPS growth. I preached revenue
and the analysts’ eyes would glaze over. Now revenue is ‘in’ because
They
said, ‘Oh my gosh, you
need revenues to grow
earnings over time.’
Well, Duh!”
so many got caught, and earnings went to hell.
—Dick Kovacevich, Wells Fargo
EXCELLENCE.
SELL.
SELL.
SELL.
“Everyone
lives by
selling
something.”
.
– Robert Louis Stevenson
Sell
Sell
C
*Chief
O*
Revenue
Officer
MBA-On-A-Single-Slide
P=R-C
“I am not a ‘management guru,’ I
am not a ‘public speaker,’ and I
am not a ‘network marketer.’ I am
a ‘direct marketer,’ a proud
as punch traveling salesman,
knocking on any door I can
find—and peddling ideas
whenever I can wedge my
foot in.” —Tom Peters, Direct Marketing Association,
Annual Meeting, 2006
“If you want to
gain competitive
advantage fast, the
best place to do it
is in sales.”
—Larry Webb
Incidentally …
“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
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/2004
Home Depot Business
ToolBox: Payroll processing.
Credit card processing. Personnel
paperwork. Mobile phones. Shipping.
Health insurance. 12K customers
(plumbers, electricians, small
homebuilders and contractors).
Source: Forbes, 0918.06
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging
Solutions
Services
Goods
Raw Materials
EXCELLENCE.
VALUE-ADDED LADDER 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
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
C
*Chief e
O*
Xperience Officer
“Most executives have
no idea how to add value
to a market in the
metaphysical world. But
that is what the market will cry
out for in the future. There is no
lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Female
dominance
Experiences:
EXCELLENCE.
DRAMATIC.
DIFFERENCE.
DOABLE.
This is not a
“mature
category.”
This is an
“undistinguished
category.”
$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods
#1/100
“Best Companies to
Work for”/2005
Wegmans
7X. 730A800P.
F12A.*
*’93-’03/10
yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
4X:
“At
London Drugs,
everyone
cares about
everything.”
—Wynne Powell
EXCELLENCE.
#1T.
Cirque
du Soleil!
And the Winner is …
1. Audacity of Vision
2. Innovation/R&D/Design
3. Talent Acquisition &
Development
4. Resultant “Experience”
5. Strategic Alliances
6. Operations
7. Financial Management
8. Overall/Sustaining Excellence
9. “Wow!”
10. Lovemark!
“Every time we come to a
comfort zone, we will find a way
out.” “No Cloning.” “‘Reinvent
the brand’ with each new show.”
“A typical day at the office for
me begins by asking, ‘What is
impossible that I am going to do
today?’” —Daniel Lamarre, president,
Cirque du Soleil
EXCELLENCE.
#1T.
Jim’s
Group
Jim Penman/“Empire Builders”/MT /
Jan/Feb 2006/Australia
EXPERIENCE.
EXCELLENCE.
BONUS.
FLOWER
POWER
Jim Jeffords
oversight!
The …
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
FLOWER
POWER
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients
become what they want to be.”
—Gian Luigi Longinotti-Buitoni
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
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness,
Friendship and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
The (NEW) Value-added Ladder
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
C
*Chief Dream Merchant
“The sun is setting on the Information Society—even
before we have fully adjusted to its demands as
individuals and as companies. We have lived as hunters
and as farmers, we have worked in factories and now we
live in an information-based society whose icon is the
We stand facing the
fifth kind of society: the
Dream Society. … Future products will
computer.
have to appeal to our hearts, not to our heads. Now is the
time to add emotional value to products and services.”
Rolf Jensen/The Dream Society:How the Coming Shift from
Information to Imagination Will Transform Your Business
EXCELLENCE.
VALUE-ADDED LADDER IV.
LOVE IT.
Kevin Roberts:
Lovemarks!
Tattoo Brand: What %
of users would tattoo the
brand name on their body?
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
C
O*
*Chief Lovemark Officer
EXCELLENCE.
SOUL I.
THE STORY.
“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
Best
story
wins!
C
O*
*Chief Storytelling Officer
EXCELLENCE.
SOUL II.
DESIGN.
All Equal Except …
“At Sony we assume that all products
of our competitors have basically the
same technology, price, performance
Design is the
only thing that
differentiates one
product from another
in the marketplace.” —Norio
and features.
Ohga
“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
“With its carefully conceived mix of colors and textures,
Starbucks
aromas and music,
is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the exemplar
‘Every
Starbucks store is carefully
designed to enhance the quality
of everything the customers see,
touch, hear, smell or taste,’ writes
of … the aesthetic imperative. …
CEO Howard Schultz.”
-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
Westin’s …
Heavenly
Bed
C
O*
*Chief Design Officer
EXCELLENCE.
NEW MARKETS.
ENORMOUS.
OPPORTUNITIES.
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
WOMEN.
“Idiot” is
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%
of Unilever’s
products are purchased by … women.
“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
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
WOMEN.
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
Women > 50% of Household Income in >50% of households.
In 48% of the 55% of households/married couples, women
provide >50% of income. 27% of households are headed by
a single female. 75% of married female execs with the rank
of VP or above out earn their spouse. Women control 51% of
private wealth in the U.S.; head 40% of households with
>$600K assets; 47% of market investors are women.
Major Credit Union: pre Y2K, modal customer was 53-year-old
family man; today, 46-year-old single working woman.
Commercial: 51% purchasing managers are women.
Women make >80% consumer purchases; businesswomen
make >90% of household purchasing decisions. Women:
70% of travel decisions; purchase 57% of consumer
electronics; write 80% of personal checks; purchase >50% of
cars (primary influence >80%).
Source: Don’t Think Pink: What Really Makes Women Buy—and How to
Increase Your Share of This Crucial Market, Lisa Johnson & Andrea Learned
Women
Household spending: 80%
Investment decisions: 53%
Home improvement decisions: 80%
New cars: 60%+
Computers: 60%
Managers and professionals, overall: 51%
New businesses started: 70%* (*Women-owned
businesses as a share of all new businesses: Employee
growth, 3X; Sales growth, 4X.)
Source: Marti Barletta, PrimeTime Women (2007)
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
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
“The most significant
variable in every sales
situation is the gender of
the buyer, and more
importantly, how the
salesperson
communicates to the
buyer’s gender.”
—Jeffery Tobias Halter, Selling to Men, Selling to Women
“Women don’t buy
They
join them.”
brands.
EVEolution
Editorial/Men: Tables, rankings.*
Editorial/Women:
Narratives that cohere.*
*Redwood (UK)
“Women come out better
on almost every count as
investors … They are less likely to
hold a losing investment too long, and
less likely to wait too long to sell a
winner; they’re also less likely to put too
much money into a single investment or
to buy a reputedly hot stock without
doing sufficient research.”
Source: The Merrill report: “When It Comes to Investing,
Gender A Strong Influence on Behavior.”/Atlantic
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.
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
“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
EXCELLENCE.
OPPORTUNITY.
WOMEN.
BUSINESS.
OWNERS.
WOMEN.
DOMINATE.
ECONOMIC.
GROWTH.
“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
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 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.
COROLLARY.
EXCELLENCE.
WOMEN.
RULE.
“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”
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
“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
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
BOOMERS.
GEEZERS.
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of 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%)
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
55-64 vs 25-34
E.g.: New cars & trucks: 20% more
spending. Meals at full-service
restaurants: +29%. Airfare: +38%.
Sports equipment: +58%. Motorized
recreational vehicles: +103%. Wine:
113%. Maintenance, repairs and
home insurance: +127%. Vacation
homes: +258%. Housekeeping & yard
services: +250% to +500%.
Source: Marti Barletta, PrimeTime Women
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
“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
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
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
BONUS.
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
SINGLE-PERSON
HOUSEHOLDS.
Fastest growing demographic:
Single-person
Households (>50%
in London, Stockholm, etc)
Source: Richard Scase
% of homes purchased by
single women: 1981,
10%;2005, 20%
% of homes purchased by
single men: 1981, 10%;
2005, 9%
Source: USA Today/02.15.06
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males/whoops
(Retire-old/Poorly educated-young)
Boomers’-Geezers’ Trifecta
*Buy/all
*Wealth/all
*time left/ lots
Tom Peters/Excellence.2006/1205.2006
X.06.23: Whole Foods Markets …
Starbucks … Wegmans … Commerce
Bank … Apple … London Drugs … Griffin
Hospital/Planetree Alliance … The Met
School/Big Picture … Carl Sewell …
Progressive Insurance … Stanford
women’s sports … Stanford D-School …
HSM … Washington Speakers Bureau …
Build-A-Bear … RE/MAX … Donnelly’s
Weather Strip Service … Jim’s Group …
Cirque du Soleil … (U.S. Grant) …
(Horatio Nelson) … (Stew Leonard’s) …
(DeMar Plumbing) … (FBR/Friedman
Billings Ramsey)
X.06.23: Whole Foods Markets (high-end, experience-design,
demographic) … Starbucks (people, experience) … Wegmans
(people) … Commerce Bank (nuts about customers, WOW, people,
execution) … Apple (design-experience, breakthrough, “virus
management,” resilience, talent, “seriously cool”) … London
Drugs (design-experience, people, “solutions”) … Griffin
Hospital/Planetree Alliance (customer-centric, “whole person”) …
The Met School/Big Picture (engagement, self-control) … Carl
Sewell (experience!) … Progressive Insurance (speed, IT) …
Stanford women’s sports (demographic, Blue Ocean) … Stanford
D-School (design-biz-engineering, Blue Ocean) … HSM (execution,
experience) … WSB (integrity, broad view of customers,
execution) … Build-A-Bear (experience) RE/MAX (people/“create
success stories”) … Donnelly’s Weather Strip Service (high end,
execution-reliability, simply the best) … Jim’s Group (imaginationBlue Ocean, demographic, customer-centric) … Cirque du Soleil
(talent, R&D, Imagination, resilience, design-experience,
partnering) … (U.S. Grant/execution, delegation, people, K.I.S.S.,
action-at-all-costs, win, bold ) … (Horatio Nelson/execution,
delegation, people, K.I.S.S., action-at-all-costs, win, bold) … (Stew
Leonard’s/people, experience-design, Wow) … (DeMar
Plumbing/experience, people, Blue Ocean) … (FBR/Friedman
Billings Ramsey/research, focus)
High end.
Experience.
Design.
Crazy for customers!
Crazy for Patients! (“Whole person”).
Wow!
People first, second, third.
Breakthrough or bust.
“Seriously cool.”
“Virus management.”
Resilience.
Tippy-top talent.
“Solutions,” not “just” “satisfaction.”
Engagement.
Self-control. (Customer/Patient/Student control.)
Blue Ocean.
“Mundane stuff” made great.
Great demographic.
The best. Period.
Effective partnering.
K.I.S.S.
Play to win. (Offense > Defense.)
Bold!
Action! Always!
Integrity-as-strategy.
*Focused on growth and revenue and “offense,”
not defense and cost containment.
*People-talent obsession.
*Provide mind-bending experiences. (Driven
by design primacy.)
*Nuts about customers.
*Happy to use words like “Wow.”
*Pretty close to the high end of the market.
[*Ability to make silk purses filled with gold out of
sows’ ears: Wegmans-Whole Foods-Stew Leonard’s
and groceries; Jim’s Group and dog-walking;
Donnelly and weatherstrip installation; DeMar
and plumbing.]
*Execution!
Cirque du
Soleil
“Every time we come to a
comfort zone, we will find a way
out.” “No Cloning.” “‘Reinvent
the brand’ with each new show.”
“A typical day at the office for
me begins by asking, ‘What is
impossible that I am going to
do today?’” —Daniel Lamarre, president,
Cirque du Soleil
And the Winner is …
1. Audacity of Vision
2. Innovation/R&D/Design
3. Talent Acquisition &
Development
4. Resultant “Experience”
5. Strategic Alliances
6. Operations
7. Financial Management
8. Overall/Sustaining Excellence
9. “Wow!”
10. Lovemark!
Cirque du Soleil: Talent (12 full-time
scouts, database of 20,000).
R&D (40% of
profits; 2X avg corp).
Controls (shows are
profit centers; partners like Disney offset costs;
$100M on $500M).
buzz/brand
Scarcity builds
(1 new show per year. “People
tell me we’re leaving money on the table by not
duplicating our shows. They’re right.”—Daniel
Lamarre, president).
Source: “The Phantasmagoria Factory”/Business 2.0/1-2.2004
Cirque du Soleil
*$500M-$600M revenue
*#22 Interbrand/brand impact (>Microsoft, Disney, VW,
McDonald’s)
*“Every time we come to a comfort zone, we will find a
way out” (Daniel Lamarre/President)
*No Cloning!
*“Reinvent the brand” with EACH new show (max 1/year)
*70% of profits into R&D!
*“A typical day at the office for me begins by asking,
‘What is impossible that I am going to do today?’”
(Daniel Lamarre)
*No deal until creative challenge (no matter $$ on
the table)
*Diverse creative teams! (“Don’t come out until you’ve
done something great.”)
*Recruit the near-great (not prima donnas)
(crazy interviews)
Source: Fast Company/07.05
whole
foods
$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods
starbucks
“It’s simple, really,
Tom. Hire for s,
and, above all,
promote for s.”
—Starbucks middle manager/field
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
Wegmans
#1/100
“Best Companies to
Work for”/2005
FBR
FBR per TP
Make a Difference
Add Exceptional Value
Enduring Relationships with Companies that Have the Potential to
Be Great
After-market Performance
Focus/Strong Sectoral Approach
Focus/Underserved Middle Market/Mid-cap Cos
Dramatic Difference
Research Roots
Research Investment
Unique Analytic Process
Highly Disciplined Fundamental Intrinsic Value Analysis
Partnership Culture
Mutual Support
Enthusiasm
Make a Difference
D.C. as D.C.
D.C. as not Wall Street
Visibility/Tell Story/Brand
London
Drugs
“At London Drugs,
everyone cares about
everything.”
—Wynne Powell
London Drugs
*Each major department a “category killer” (pharmacy,
computers, photo-photo finishing, cosmetics)
*“Service added”/ Experience (e.g., consultation booths for
pharmaceutical Clients)
*Brilliant, eye-popping design-merchandising
*Price point: peanuts to super-premium
*Massive training, very low staff t/o
*Big-bet experimentation-innovation
*Locales begging for LD
*Financials to die for
*IS/IT/SC pioneers (compared favorably to Wal*Mart’s
supply-chain management; exquisite vendor-partner
programs)
*Effectively deflected Wal*Mart incursion
*Philosophy: fun, enthusiasm, innovation, commitment,
care, talent development
Build-A-Bear
Build-A-Bear
*
*
*
*
*
1997 to 2004: $0 to $300M
Maxine Clark/CEO (25 yrs May Dept Stores)
Build-A-Bear Workshops
Engagement! (“Where Best Friends Are Made”)
Theater!
Griffin
Hospital/
Planetree
Alliance
“It was the goal of
Planetree to help
patients not only get
well faster but also to
stay well longer.”
—Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
(Planetree Alliance/Griffin Hospital)
“Planetree is about
human beings
caring for other
human beings.”
—Putting Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel (“Ladies and gentlemen serving
ladies and gentlemen”—4S credo)
The 9 Planetree Practices
1. The Importance of Human Interaction
2. Informing and Empowering Diverse Populations: Consumer
Health Libraries and Patient Information
3. Healing Partnerships: The importance of Including Friends
and Family
4. Nutrition: The Nurturing Aspect of Food
5. Spirituality: Inner Resources for Healing
6. Human Touch: The Essentials of Communicating
Caring Through Massage
7. Healing Arts: Nutrition for the Soul
8. Integrating Complementary and Alternative Practices
into Conventional Care
9. Healing Environments: Architecture and Design Conducive
to Health
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Big Picture
schools/
The Met
EBF* to EBI**
“engage the kids
around their
passions.”
—Dennis Littky/
The Met-Big Picture Schools
* Education By Fiat
** Education By Interest
The Real Goals of Education/Dennis Littky/The Big Picture
*Be lifelong learners
*Be passionate
*Be ready to take risks
*Be able to problem solve and think critically
*Be able to look at things differently
*Be able to work independently and with others
*Be creative
*Care and want to give back to their community
*Persevere
*Have integrity and self-respect
*Have moral courage
*Be able to use the world around them well
*Speak well, write well, read well, and work
well with numbers
*AND TRULY ENJOY THEIR LIFE AND WORK
Progressive
Progressive Is …
* “[Peter] Lewis has created an organization filled with
sharp, type-A personalities who are encouraged to take
risks—even if that sometimes leads to mistakes.”
* “One thing that we’ve noticed is that they’ve always been
very good at avoiding denial. They react quickly to
changes in the marketplace.”—Keith Trauner/
portfolio manager
* “When four successive hurricanes hit Florida and
neighboring states in August and September, Progressive
sent more than 1,000 claims adjusters to the Southeast.
Result: 80% of 21,000 filed claims had been paid by midOctober, an impressive figure. This pleased policy holders
and probably helped Progressive because delays in
claims payments typically mean higher costs.”
Source: Barron’s/ “Polished Performer: The Car Insurance Game’s
Best Managers Have Put Progressive in the Fast Lane”/11.01.04
“We don’t sell insurance
We sell
speed.”
anymore.
—Peter Lewis, Progressive
Commerce
Bank
Commerce Bank:
From “Service” to “Experience”
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap:
48% p.a.
Thesaurus of WOW!
“They” hate it if you call them “bankers.” “They” love it, on the other hand, when
you ask to see their #s—stupendous. “They” are … Commerce Bank. These absurdly
fast growing, insanely profitable “retailers,” rewriting the rules of East Coast retail
banking, sent me a copy of their booklet, “Traditions.” It explicates their
“Wow
the Customer Philosophy.” At the end there’s “A Collection of
Commerce Lingo.” I won’t define (use your imagination), but simply offer a small
sample: “Fans, Not Customers.” “Say YES … 1 to say YES, 2 to say NO.” (A staffer
has to get a supervisor’s approval to say “no” to anything.) “Recover!!! To Err Is
Human; To Recover Is Devine.” “Leave ’Em Speechless.” “Positive Behavior.”
“Positive Language.” “Kill A Stupid Rule.” (Get cash rewards for exposing dumb
internal rules “that impede our ability to WOW!”) Make the ‘WOW! Answer Guide’
Your Best Friend.” “Buzz Bee.” “CommerceWOW!Zone.” (A K-12 financial education
program.) “Doctor WOW!” “Ten-Minute Principle.” (“Stores” open 10 minutes before
posted hours, stay open 10 minutes after posted hours—and the hours, such as
open 7 days a week, are already incredibly generous & tradition-shattering.) “Wall of
WOW!” “WOW! Awards.” (The annual recognition ceremony—Radio City
Music Hall, with the Rockettes, in ’05.) “WOW! Patrol.” “WOW! Spotlight.”
“WOW Van.” “WOW Wiz.” (A service superstar.) Etc.
jim’s group
Jim’s Group: Jim Penman.*
1984: Jim’s Mowing. 2006: Jim’s Group.
2,600 franchisees (Australia, NZ, UK).
Cleaning. Dog washing. Handyman.
Fencing. Paving. Pool care. Etc.
“People first.” Private. Small staff. Franchisees
can leave at will. 0-1 complaint per year is
norm; cut bad ones quickly.
*Ph.D. cross-cultural anthropology; mowing on the side
Source: MT/Management Today (Australia), Jan-Feb 2006
GRANT
“The only way to
whip an army is
to go out and
fight it.” —Grant
Source: John Mosier, Grant
"The art of war is simple
enough. Find out where
your enemy is. Get at him
as soon as you can. Strike
at him as hard as you can
and as often as you can,
and keep moving on." —Grant,
courtesy Richard Cauley at tompeters.com
(original source unknown)
“One of my superstitions had
always been when I started
to go anywhere or to do
not to
turn back , or stop,
anything,
until the thing intended was
accomplished.” —Grant
NELSON
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
The Nelson Baker’s Dozen
1. Simple-clear scheme (“Plan”) (Not wildly imaginative) (Patton: “A good plan
executed with vigor right now tops a ‘perfect’ plan executed next week.”)
2. SOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRING
“GOAL”/“MISSION”/“PURPOSE”/“QUEST”
3. “Conversation”: Engagement of All Leaders
4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability
swift/Micromanagement absent
5. LED BY “LOVE” (Lambert), NOT “AUTHORITY” (Identify with sailors!)
6. Instinct/Seize the Moment/“Impetuosity” (Boyd’s “OODA Loops”: React more
quickly than opponent, destroy his “world view”)
7. VIGOR! (Zander: leader as “Dispenser of Enthusiasm”)
8. Peerless Basic Skills/Mastery of Craft (Seamanship)
9. Workaholic! (“Duty” first, second, and third)
10. LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE (In
Harm’s Way) (Gandhi: “You must be the change you wish to see in the world”/
Giuliani: Show up!)
11. Genius (“Transform the world to conform to their ideas,” “Triumph over rules”)
(Gandhi, Lee-Singapore) , not Greatness (“Make the most of their world”)
12. Luck! (Right time, right place; survivor) (“Lucky Eagle” vs “Bold Eagle”)
13. Others principal shortcoming: “ADMIRALS MORE FRIGHTENED OF LOSING
THAN ANXIOUS TO WIN”
Source: Andrew Lambert, Nelson: Britannia’s God of War
Nelson’s Way: A Baker’s Dozen/Short
1. Simple scheme.
2. Noble purpose!
3. Engage others.
4. Find great talent, let it soar!
5. Lead by Love!
6. Trust your gut, not the focus group: Seize the Moment!
7. Vigor!
8. Master your craft.
9. Work harder than the next person.
10. Show the way, walk the talk, exude confidence! Start a Passion
Epidemic!
11. Change the rules: Create your own game!
12. Shake off the pain, get back up off the ground, the timing may
well be right tomorrow! (E.g., Get lucky!)
13. By hook or by crook, quash your fear of failure, savor your
quirkiness and participate fully in the fray!
Source: Andrew Lambert, Nelson: Britannia’s God of War
EXCELLENCE.
BEDROCK.
LEADERSHIP.
9Ps.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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)
“Management has a lot to do with
answers. Leadership is a function of
questions. And the first question for a
‘Who do
we intend to
be?’ Not ‘What are we going to
leader always is:
do?’ but ‘Who do we intend to be?’”
—Max De Pree, Herman Miller
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first book?”
“Close your eyes and imagine me
immediately doing something about
what you’ve just said. What would it
be?” “Do you feel you have an
obligation to ‘Make the world a
better place’?”
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“Whenever anything is
being accomplished, I
have learned, it is being
done by a monomaniac
with a mission.”
—Peter Drucker
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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 actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!” —RG
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
Relentless: “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
“This [adolescent] incident [of getting from point A to point B] is notable
not only because it underlines Grant’s fearless horsemanship and his
determination, but also it is the first known example of a very important
Grant had an
extreme, almost phobic
dislike of turning back
and retracing his steps.
peculiarity of his character:
If he
set out for somewhere, he would get there somehow, whatever the
difficulties that lay in his way. This idiosyncrasy would turn out to be one
the factors that made him such a formidable general. Grant would always,
always press on—turning back was not an option for him.”
—Michael Korda, Ulysses Grant
“It is no use saying
‘We are doing our
best.’ You have got
to succeed in doing
what is necessary.”
—WSC
"The reasonable man adapts
himself to the world. The
unreasonable one persists in
trying to adapt the world to
himself. Therefore, all
progress depends upon the
unreasonable man.” —GB Shaw,
Man and Superman: The Revolutionists' Handbook.
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
“The most
successful people
are those who
are good at plan B.”
—James Yorke, mathematician, on chaos
theory, in The New Scientist
"Life is not a journey to the
grave with the intention of
arriving safely in one pretty
and well preserved piece, but
to skid across the line
broadside, thoroughly used
up, worn out, leaking oil,
shouting ‘GERONIMO!’ ”
—Bill McKenna, professional motorcycle racer (Cycle magazine)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Beware of the tyranny
of making Small Changes
to Small Things. Rather,
make Big Changes to
Big Things.”
—Roger Enrico, former Chairman, PepsiCo
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.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
EXCELLE
ALWAYS