Transcript NEW ZEALAND 2007 Ho hum: 2+ weeks in New Zealand … Pfizer Ford Gap Chrysler Yahoo microsoft wal*mart ??? ???

NEW ZEALAND 2007
Ho hum: 2+ weeks in New Zealand …
Pfizer
Ford
Gap
Chrysler
Yahoo
microsoft
wal*mart
???
???
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
Axiom: We have met the enemy
and he is us.
Axiom: The long-term adaptive
capabilities of Big Corporations
taken as a whole is “problematic”
[read: pathetic].
Antidote: The answer is 75%
internal. To sustain/win, we must
first and foremost and in
perpetuity beat back the forces of
darkness—size and inertia and fear
and timidity and over-complexity.
The last
word:
There is
no last
word.
Flat as a Pancake (Or Worse)
Wal*Mart … Dell …
Intel … Home Depot
… Microsoft … GE
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
International Paper/Sanibel Harbour/0228.07
*In Search of Excellence 1982-2007
Slides* at …
tompeters.com
*also “long”
EXCELLENCE????
“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;
just
2 (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
S&P Stability Ratings*
1985
2006
Low Risk
41%
13%
Average Risk
24%
14%
High Risk 35%
*Likelihood of
73%
stable long-term earnings growth
Source: Fortune (2 October 2006)
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)
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”
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.
ASPIRATION.
“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.
“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
“Everyone
lives by
selling
something.”
.
– Robert Louis Stevenson
C
*Chief
O*
Revenue
Officer
EXCELLENCE.
INNOVATE.
OR. DIE.
More than $$$$
R&D
spending,
last 25 years?
“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:
There’s “A”
and then
there’s “A.”
Spinoffs
systematically
perform better than IPOs … track
record, profits … “freed from
the confines of the parent
… more entrepreneurial,
more nimble”
—Jerry Knight/ Washington Post/ 08.05
InnoTacs
We become
who we hang
out with!
Innovation’s Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
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
“Diverse groups of problem solvers—
groups of people with diverse tools—
consistently outperformed groups of the
best and the brightest. If I formed two
groups, one random (and therefore
diverse) and one consisting of the best
individual performers, the first group
almost always did better. Diversity
trumped ability.” —Scott Page, The Difference: How the Power
of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity
Wikinomics.
WikiWorld.
CrowdSourcing.
“The Billion-man
Research Team:
Companies offering work
to online communities are
reaping the benefits of
‘crowdsourcing.’ ”
—Headline, FT, 0110.07 (cf Wickinomics: How Mass
Collaboration Changes Everything, Don Tapscott &
Anthony Williams)
Try it. Try it. Try it
ry it. Try it. Screw
up. Try it. Try it. Try
t. Try it. Try it. Try
t. Try it. Screw it up
t. Try it. Try it. try
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
“We made mistakes, of course. Most of them were
omissions we didn’t think of when we initially wrote the
software. We fixed them by doing it over and over, again
and again. We do the same today. While our competitors
are still sucking their thumbs trying to make the design
perfect, we’re already on prototype version
#5.
By the time our rivals are
ready with wires and screws, we are on version
#10. It gets back to planning
versus acting: We act from day
one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
Screw.
things.
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
try.
Miss.
READY.
FIRE!
Paul Allaire: “We are in a
brawl with no rules.”
TP: “There’s [literally] only
one possible answer—Screw
Around Vigorously!
“You miss
100% of the
shots you
never take.”
—Wayne Gretzky
Speed/
Tempo/
is-it
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
“UPS used to be a trucking company
Now it’s
a technology
company with
trucks.”
with technology.
—Forbes
Power Tools
For Power
Strategies
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?
personal
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!” —RG
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
EXCELLENCE.
4/40.
De-central-iza-tion!
The True Logic* of Decentralization:
6 divisions = 6 “tries”
6 divisions = 6 DIFFERENT
leaders = 6 INDEPENDENT
“tries” = Max probability
of “win”
*“Driver”: Law of Large #s
Ex-ecu-tion!
“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
Goal (“Vision”) =
Projects =
Milestones =
Rapid Review +
Truth-telling =
accountability
“Costco figured
out the big, simple
things and
executed with
total fanaticism.”
—Charles Munger, Berkshire Hathaway
Ac-counta-bil-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)
6:15A.M.
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ OPPORTUNITY-SEEKING
Implemented
Gamechanging
Solutions
Services
Goods
Raw Materials
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’ ” (“Solve”)
Era #3/Complex Value Networks: “How our
‘system’ can change you and deliver
‘business advantage’ ” (“CultureStrategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
“The business of selling is not just about matching viable
It’s
equally about managing the
change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution. One of the key differentiators of
solutions to the customers that require them.
our position in the market is our attention to managing change
and making change stick in our customers’ organization.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
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
WHAT CAN BROWN
DO FOR YOU?
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
“Dreams Come True”:
IBM
UPS
EXCELLENCE.
BEDROCK.
LEADERSHIP.
9Ps.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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
“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)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Whenever anything is
being accomplished, I
have learned, it is being
done by a monomaniac
with a mission.”
—Peter Drucker
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
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.
“You must
be
the change you
wish to see in the
world.”
Gandhi
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
“The leaders of Great
Groups love talent and
know where to find it. They
revel in the talent of
others.”
—Warren Bennis &
Patricia Ward Biederman, Organizing Genius
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:
< CAPEX
> People!
Brand =
Talent.
“Leaders
‘SERVE’
people.
Period.”
—Anon.
Servant Leadership/Robert Greenleaf
1. Do those served grow as
persons?
2. Do they, while being served,
become healthier wiser, freer,
more autonomous, more likely
themselves to become servants?
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
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.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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)
"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)
EXCELLE
ALWAYS