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To appreciate
this presentation [and insure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Tom Peters’
Excellence.
Always.
Innovate.
Or Die.
ExpoManagement Mexico
Centro de Exposiciones Banamex/10 November 2010
(Slides at tompeters.com)
Paul Ormerod:
“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 …
“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
“Mr. Foster and his McKinsey colleagues
collected detailed performance data stretching
back
40 years for 1,000
They found that
U.S. companies.
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
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
The
Innovate
or Die
18
ry it. Try it. Try it
ry it. Try it. Screw i
p. Try it. Try it. Try
Try it. Try it. Try i
ry it. Screw it up. it
ry it. Try it. try it
READY.
FIRE!
AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“Experiment
fearlessly”
Source: BusinessWeek, 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
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
“Fail.
Forward.
Fast.”
High Tech CEO, Pennsylvania
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
Read This!
Richard Farson & Ralph Keyes:
Whoever Makes
the Most Mistakes
Wins: The Paradox
of Innovation
“It is not enough to
‘tolerate’ failure—
you must
‘celebrate’
failure.”
—Richard Farson (Whoever Makes the
Most Mistakes Wins)
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
#2
The “Parallel
Universe” Axiom
“SkunkWorks”/ “ParallelUniverse”
“the
solution”
Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
SkunkWorks/
“Skunks” (!!!)
“Somewhere in your
organization, groups of
people are already doing
things differently and better.
To create lasting change, find
these areas of positive
deviance and fan the flames.”
—Richard Pascale & Jerry Sternin,
“Your Company’s Secret Change Agents,” HBR
#3
Little =
*Thank you, Mr. Prime Minister
Big carts =
Source: Walmart
Bag sizes = New markets:
Source: PepsiCo
Socks =
10,000
see green =
recover
20% faster
XFX = #1
Never
waste a
lunch!
????
% XF
lunches*
*Measure! Monthly! Part of evaluation! [The PA’s
Club.]
“XFX Social Accelerators.”
1. EVERYONE’s [more or less] JOB #1: Make friends in other functions!
(Purposefully. Consistently. Measurably.)
2. “Do lunch” with people in other functions!! Frequently!! (Minimum
10% to 25% for everyone? Measured.)
3. Ask peers in other functions for references so you can become
conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMNism.)
4. Invite counterparts in other functions to your team meetings.
Religiously. Ask them to present “cool stuff” from “their world” to your
group. (B-I-G deal; useful and respectful.)
5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO
ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY
… make a short call or visit or send an email of “Thanks” for some sort
of XFX gesture by your folks and some other function’s folks.)
6. Present counterparts in other functions awards for service to your
group. Tiny awards at least weekly; and an “Annual All-Star Supporters
[from other groups] Banquet” modeled after superstar salesperson
banquets.
7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of
cross-functional co-operation at every Team Meeting.
“XFX Social Accelerators.”
8. When someone in another function asks for assistance, respond
with … more … alacrity than you would if it were the person in the
cubicle next to yours—or even more than you would for a key external
customer. (Remember, XFX is the key to Customer Retention which is
in turn the key to “all good things.”)
9. Do not bad mouth ... “the damned accountants,” “the bloody HR
guy.” Ever. (Bosses: Severe penalties for this—including public tonguelashings.)
10. Get physical!! “Co-location” may well be the most powerful “culture
change lever.” Physical X-functional proximity is almost a …
guarantee … of remarkably improved co-operation—to aid this one
needs flexible workspaces that can be mobilized for a team in a flash.
11. Formal evaluations. Everyone, starting with the receptionist,
should have a significant XF rating component in their evaluation. (The
“XFX Performance” should be among the Top 3 items in all managers’
evaluations.)
12. Demand XF experience for, especially, senior jobs. For example,
the U.S. military requires all would-be generals and admirals to have
served a full tour in a job whose only goals were cross-functional
achievements.
13. XFX is … PERSONAL … as well as about organizational
effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to
personal success—in terms of organizational career, freelancer/Brand
You, or as entrepreneur.
THE WHOLE POINT HERE IS THAT “XFX” IS
ALMOST CERTAINLY THE #1 OPPORTUNITY
FOR STRATEGIC DIFFERENTIATION. WHILE
MANY WOULD LIKELY AGREE, IN OUR
MOMENT-TO-MOMENT AFFAIRS, XFX PER SE IS
NOT SO OFTEN VISIBLY & PERPETUALLY AT
THE TOP OF EVERY AGENDA. I ARGUE HERE
FOR NO LESS THAN …
VISIBLE.
CONSTANT.
OBSESSION.
#5
“Strategic
Thrust
Overlay”
1980:
GE
Workout
VA/Service
Six Sigma
Inflation
R&D/Business
Development
Risk Management
G[B]TD: Tactics
Small [but powerful] Central
“Staff”* [*Line-like]
Senior “Homegrown” Boss [& Staff]
Enormous Incentives [$/Eval]
Line Accountability [Not
“Matrix” ]
Demo-led [Emergent Methodology]
“Tour of [External] Excellence”
“Blitz” Training
Central Unit/Finite Life
Speed!
Goal: “Culture Change”!
#6
“‘Decentralization’
is not a piece of
paper. It’s not me.
It’s either in your
heart, or not.”
—Brian Joffe/BIDvest
Enemy
#1
I.C.D.
Inherent/Inevitable/
Immutable Centralist Drift
Note 1:
Note 2: Jim Burke’s 1-word vocabulary: “No.”
#7
#4 Japan
#3 USA
#2 China
#1 Germany
Reason:
Mittelstand!*
*E.g.: Goldmann Produktion
“Be the best.
It’s the only
market that’s
not crowded.”
From: Retail Superstars: Inside the 25 Best
Independent Stores in America, George Whalin
#8
We are the
company
we keep
The “We are what we eat”
axiom: At its core, every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc) is
a strategic decision about:
“Innovate,
‘Yes’ or ‘No’ ”
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
“[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
“Don’t
benchmark,
futuremark!”
Impetus: “The future is already here; it’s just
not evenly distributed” —William Gibson
“Future-defining
customers may account for
only 2% to 3% of your total,
CUSTOMERS:
but they represent a
crucial window on the
future.”
Adrian Slywotzky, Mercer Consultants
“Who’s the most
interesting person
you’ve met in the
last 90 days? How
do I get in touch
with them?”
—Fred Smith
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
“The
Bottleneck …
“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
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT, 0110.07
Rob McEwen/CEO/
Goldcorp Inc./
Red Lake
gold
Wikinomics: How Mass
Collaboration Changes Everything,
Don Tapscott & Anthony Williams
Source:
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
seconds
[An obsession with] Listening is ... the ultimate mark
of Respect.
Listening is ... the heart and soul of Engagement.
Listening is ... the heart and soul of Kindness.
Listening is ... the heart and soul of Thoughtfulness.
Listening is ... the basis for true Collaboration.
Listening is ... the basis for true Partnership.
Listening is ... a Team Sport.
Listening is ... a Developable Individual Skill.* (*Though women
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
are far better at it than men.)
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that last.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organizational effectiveness.)
[cont.]
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
the engine of superior EXECUTION.
the key to making the Sale.
the key to Keeping the Customer’s Business.
the engine of Network development.
the engine of Network maintenance.
the engine of Network expansion.
Social Networking’s “secret weapon.”
Learning.
the sine qua non of Renewal.
the sine qua non of Creativity.
the sine qua non of Innovation.
the core of taking Diverse opinions aboard.
Strategy.
Source #1 of “Value-added.”
Differentiator #1.
Profitable.* (*The “R.O.I.” from listening is higher than
that from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE
*Listening is of the
utmost … strategic
importance!
*Listening is a proper …
core value !
*Listening is … trainable
!
*Listening is a … profession
!
four most
important
words in any
The
organization are …
The four most important words in any organization
are …
“What do
you
think?”
Source: courtesy Dave Wheeler, posted at tompeters.com
… 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 … Excellence.
Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.
Hence, our job as leaders—the alpha and the omega and
everything in between—is abetting the sustained growth and
success and engagement and enthusiasm and commitment to
Excellence of those, one at a time, who directly or indirectly
serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth and
Development and Success and Aspiration to Excellence
business.”
“We” [leaders] only grow when “they” [each and every one of our colleagues] are
growing.
“We” [leaders] only succeed when “they” [each and every one of our colleagues]
are succeeding.
“We” [leaders] only energetically march toward Excellence when
“they” [each and every one of our colleagues] are energetically marching
toward Excellence.
Period.
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“Managing winds up being
the management of the
allocation of resources
against tasks. Leadership
My
definition of a leader
is someone who
helps people
succeed.”
focuses on people.
—Carol Bartz, Yahoo!
“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
Brand =
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
Muhammad Yunus:
“All human beings
are entrepreneurs. When we
were in the caves we were all selfemployed . . . 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/The News Hour—PBS/1122.2006
Iron Innovation Equality Law:
The quality and
quantity and
imaginativeness
of innovation shall be
the same in all
functions —e.g., in HR and
purchasing as much as in marketing or
product development.*
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I
clean your
glasses,
sir?”*
*Kingfisher Air
2-cent
candy
7X.
7:30A-8:00P.
F12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
parking
lot*
*Disney
BEGINS
(and ENDS)
It
in the …
<TGW
and …
>TGR
[Things Gone WRONG-Things Gone RIGHT]
“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
Starbucks = Shaper
of Culture: “At our core,
we’re a coffee company,
but the opportunity we
have to extend the brand is
it’s
entertainment.”
beyond coffee;
—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)
C
*Chief e
O*
Xperience Officer
“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
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!
O*
C
*Chief
Design
Officer
National Strategy!
New Zealand
Korea
“Forget China, India
and the Internet:
Economic Growth Is
Driven by
Women.”
Source: Headline, Economist
W>
2X (C + I)*
*“Women now drive the global economy. Globally, they control
about $20 trillion in consumer spending, and that figure could
climb as high as $28 trillion in the next five years. Their $13
trillion in total yearly earnings could reach $18 trillion in the same
period. In aggregate, women represent a growth market bigger than China and India
combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or
underestimate the female consumer. And yet many companies do just that—even ones that are
confidant that they have a winning strategy when it comes to women. Consider Dell’s …”
•Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“One thing is certain: women’s rise in 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 labour or to be consumers with rising budgets and
more autonomy to spend. They are increasingly becoming directors, managers and
entrepreneurs. Some studies have shown a correlation between the presence of
women in managerial positions and a company’s financial results.
“This is just the beginning. The phenomenon will only grow as girls prove to be more
successful than boys in the school system and enroll in higher numbers in universities.
For a number of observers,
we have already entered the
age of ‘WOMENOMICS,’ the
economy as thought out and
practiced by women.
Those Chinese who
desire that their only child be male may soon realise that a daughter could be a better
investment. Bosses know full well that a team of both men and women is more
creative and efficient than one comprised of only men.
Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the
Women’s Forum for the Economy and Society (FT)
“Power Women 100”/Forbes 25.10.10
26 CEOs Public Companies:
Vs. Men/Market:
(*Post-appointment)
Vs. Industry:
+28% *
+15%
*Women
*Women
*Women
*Women
decide
save
spend
rule
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“Marketers attempts at reaching
those over 50 have been miserably
No market’s
motivations and
needs are so
poorly understood.”
unsuccessful.
—Peter Francese, founding publisher, American Demographics
Word
"commodity" obscene!
"Commodity" state of mind!
ANYTHING ... can be
differentiated numerous
ways—logistics, quality of
relationship, codevelopment of new use ...
Tweet 10.05.10:
$50B+*
*IBM Global Services/
“Systems integrator of choice”
“Big Brown’s New Bag: UPS Aims
to Be the Traffic Manager for
Corporate America” —Headline/BW
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.” —ecompany.com
(E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
MasterCard
Advisors
The Value-added Ladder
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
Zappos 10 Corporate Values
Deliver
“WOW!”
through service.
Embrace and drive change.
Create fun and a little weirdness.
Be adventurous, creative, and open-minded.
Pursue growth and learning.
Build open and honest relationships with
communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined.
Be humble.
Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com
14,000
20,000
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
“Insanely Great”
Steve Jobs
“Radically
thrilling”
BMW
“We are crazy. We should do
something when people say it is
If people say
something is ‘good’, it
means someone else
is already doing it.”
‘crazy.’
—Hajime Mitarai, Canon
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.
3.
4.
5.
6.
7.
8.
9.
If it ain’t broke ... Break it!
Hire crazies.
Ask dumb questions.
Pursue failure.
Lead, follow ... or get out of the way!
Spread confusion.
Ditch your office.
Read odd stuff.
10.
Avoid moderation!
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.
Always.
Innovate.
Or Die.