Transcript Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November 2006 HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. “I am often asked by would-be entrepreneurs seeking escape from life within huge.

Tom Peters’
EXCELLENCE.
ALWAYS.
Discover Network
Merchant Advisory Council
Chicago/02 November 2006
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
“I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, ‘How do I build a small firm for
Buy
a very large one
and just wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
“Forbes100” from 1917 to
1987: 39 members of the Class of ’17 were
alive in ’87; 18 in ’87 F100; 18 F100 “survivors”
significantly underperformed the market;
just 2 (2%),
GE Kodak,
&
outperformed the market from 1917 to 1987.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the Market
“Ford, GM and Chrysler do
not just make cars
expensively … they make
bad cars expensively.”
—Investec
analyst, International Herald, 0805.06
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
HA.
“It is generally much easier to
organization
kill an
than change it
substantially.”
—Kevin Kelly, Out of Control
Message/Implication: go for it!
C.E.O.
C.D.O.
to
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
“20-minute
rule”
—Craig Johnson/30 yrs
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
“The [Union senior] officers rode past
the Confederates smugly without any
sign of recognition except by one.
‘When General Grant reached
the line of ragged, filthy, bloody,
despairing prisoners strung out on
each side of the bridge, he lifted his
hat and held it over his head until he
passed the last man of that living
funeral cortege. He was the only
officer in that whole train who
recognized us as being on the
face of the earth.’*”
*quote from the diary of a Confederate soldier
EXCELLENCE.
ALL. YOU. NEED.
TO. KNOW.
ANYWHERE.
ANY MARKET.
ANY TIME.
7X. 730A800P.
F12A.*
*’93-’03/10
yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
#1/100
“Best Companies to
Work for”/2005
EXCELLENCE.
ALL. YOU. NEED.
TO. KNOW.
ANYWHERE.
ANY MARKET.
ANY TIME.
Jim’s
Group
EXCELLENCE.
SIBERIA.
“Why in the
world did
you go to
Siberia?”
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Customers.
Execution.
Enthusiasm.
Excellence.
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 the Knitting
7. Simple Form, Lean Staff
8. Simultaneous Loose-Tight Properties”
“Why in the
world did
you go to
Siberia?”
An emotional,
vital, innovative, joyful,
creative, entrepreneurial
endeavor that elicits
maximum concerted human
potential in the
wholehearted service
of others.***
Business* ** (*at its best):
**Excellence. Always.
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“To me business isn’t about
wearing suits or pleasing
stockholders. It’s about
being true to yourself,
your ideas and focusing on
the essentials.” —Richard Branson
“Pierson’s entire focus
was making airplanes.
Forgeard’s focus was
blurred by ambition . He
wanted to move up and
become co-chairman
of EADS.” —Newsweek, 1023.06
EXCELLENCE.
INNOVATE.
OR. DIE.
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
EXCELLENCE.
INNOVATE.
ALL. WRONG.
More Than $$$$
R&D
spending,
last 25 years/USA?
“I don’t believe in economies of
You don’t get
better by being
bigger. You get
worse.”
scale.
—Dick Kovacevich/Wells Fargo
Flat as a Pancake (Or Worse)
Wal*Mart … Dell …
Intel … Home Depot
… Microsoft … GE
“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.”
answered:
—Mark Sirower, The Synergy Trap
EXCELLENCE.
INNOVATE.
AXIOMATIC.
The Mess Is
the Message!
Period!
“We are in a
brawl with
no rules.”
—Paul Allaire
S.A.V.
EXCELLENCE.
INNOVATE.
TACTICS.
Try it. Try it. Try it
Try it. Try it. Try it
Try it. Try it. Try it
Try it. Try it. Try it
Try it. try it. Try it
Try it. try it. Try it
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
“We made mistakes, of course. Most of them were
omissions we didn’t think of when we initially wrote the
software. We fixed them by doing it over and over, again
and again. We do the same today. While our competitors
are still sucking their thumbs trying to make the design
perfect, we’re already on prototype version
#5.
By the time our rivals are
ready with wires and screws, we are on version
#10. It gets back to planning
versus acting: We act from day
one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
READY.
FIRE!
AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
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”
Axiom:
“We are in a brawl
with no rules.” (PA)
Implication:
“The world will
not be kind to those who
‘play by the rules’.”* (TP)
Strategy:
S.A.V./R.F.A. (RP/TP+)
*Axiom: The microprocessor plays by the rules.
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Bonus
Think!
vs.
do!
Tom peters
27 October 2006
Speed/
Tempo
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
re-imagine the
“value added”
equation
Up,
Up,
Up,
Up
the Value-added Ladder.
The [NEW] “Value-added Ladder”
Gamechanging Solutions/
Implemented
Customer success
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials
Department Head
to …
Managing
Partner,
IS
Inc.
[HR, R&D, etc.]
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
UniCredit Group/
UniCredito Italiano* **
—3rd party measurement
—Customer-initiated
measurement
—Primary $$$$ incentives
—“Factories”
—Primary Corporate Initiative
—Etc
*#13
**TP/#1
“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
The [NEW] “Value-added Ladder”
spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This
is accomplished by addressing the
half-formed needs in our customers’
heads. By uncovering these needs,
we, in essence, fill in the blanks. We
convert ‘needs’ into
‘dreams.’ Sales are the
inevitable result.”
— Judy George,
Domain Home Fashions
Up,
Up,
Up,
Up
the Value-added Ladder.
The [NEW] “Value-added Ladder”
dreams come true
spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Dream Merchant:
IBM
[totally] re-imagine
the business around
the two staggering
“new” opportunities
women.
BOOMERS.
GEEZERS.
women
BOOMERS
The Copenhagen (Self) Pact re “This Topic”:
*Early!
*Loud!
*Repetitive!
*Aggressive!
*Unfriendly!/rude!/
insulting!
women
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Women’s Trifecta+
*Buy
*Wealth
*Lead
+ECLIPSE
OF MALES
(Old/Retire; Young/Poorly educated)
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males/whoops
(Retire-old/Poorly educated-young)
1. Women’s CONSUMER GOODS purchases.
2. Women’s COMMERCIAL GOODS purchases.
3. WOMEN ARE THE MARKET. Not an “initiative.”
4. Women-owned BUSINESSES (absolute #s,
acceleration, relative growth).
5. Women’s “brand” of LEADERSHIP SKILLS.
6. women’s strengths match needs of the new
“value-added ladder.”
7. Women’s DRAMATICALLY INCREASING-commanding
WEALTH—absolute, relative. (Jobs. Longevity.
Education. Entrepreneurial. Decline of BOYS. Retirement of
MEN/Senior MEN.)
8. DEMOGRAPHIC TSUNAMI. WOMEN. Women as
solo HEADs-OF-HOUSEHOLD. THE WOMaNBOOMER-GEEZER. LOoooNG-TERM PHENOMENON.
Global phenomenon.
9. SPEED of “change.” mother of all “megatrends.”
1. Participation rate/2 of 3 new jobs, last
30 years.
2. Male workforce departures/SENIOR male
workforce departures.
3. Shrinking pay gap/same jobs.
4. More senior positions. Greater decisionmaking/expenditure/org design authority.
More line jobs.
5. Female solo head-of-household growing.
6. Longevity.
7. Education.
8. More effective money management.
Not. Yet. Done.*
Loyalty programs: M F “Difference” = Yawning gap (173+ degrees)
Forced to do it: e.g., a division aimed at Boomer Women …
Exclusively.
Just say no to “trickle up”: Why have the 5% chase the 95%?)
Men think they’re doing their share (helping, sure, but the buck
stops with her); busy, busy, busy—think Jim’s Group)
New forms of living together, playing together as aging proceeds
(“commune”, Beacon Hill Assn, telemedicine, etc, etc, etc.)
“Grab ’em early & keep ’em”: Total Unmitigated Crap
(TP: 100% brand switch. 100%.)
“They didn’t take it seriously” —German bank exec, Bonn, F
This is not a $%^&ing “program.” This is “NEW Life 101.” This
is Soooo Big it Staggers the Imagination. (Will be paramount
“trend” for 20 years.)
*The Copenhagen Pact
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“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%
products are purchased by … women.
of Unilever’s
“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
Good Thinking, Guys!
“Kodak Sharpens Digital Focus
On Its Best Customers:
Women”
—Page 1 Headline/WSJ/0705
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
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
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
“Women don’t buy
They
join them.”
brands.
EVEolution
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
“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.
“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
96%, against the Tokyo
stockmarket’s rise of 13%.”
by
—Economist, 15 April 2006
P-l-e-a-s-e Read …
Fara Warner:
The Power of
the Purse
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
12.2002: $-344M
*International
*Build
*Men & Children
Source: Fara Warner, The Power of the Purse,
“From Minority to Majority: McDonald’s Discovers
the Woman Inside the Mom”
“Mostly Moms”
“Women were either ignored
in favor of focusing on men—
generally considered the
industry’s most frequent
users and therefore its most
important consumers—or they
were cast in the role of moms
who were simply conduits to
their children.” —Fara Warner, The Power of
the Purse, “From Minority to Majority: McDonald’s Discovers
the Woman Inside the Mom”
“We simply had
stopped being
relevant to women.”
—Kay Napier, SVP Marketing (Fara Warner, The Power of the
Purse, “From Minority to Majority: McDonald’s Discovers the
Woman Inside the Mom”)
“Women [in women-only focus groups]
told us that all moms are
women, but not all women
are moms—so why weren’t
we trying to reach all
women? We realized we
should be finding the woman
inside the mom.” —Carol Koepke,
marketing director (Fara Warner, The Power of the Purse,
“From Minority to Majority: McDonald’s Discovers the
Woman Inside the Mom”)
“McDonald’s shifted its strategy
toward women from one of
‘minority’ consumers who served as
a conduit to the important
children’s market to one in which
women are the company’s majority
consumers and the main driver
behind menu and promotion
innovation.” —Fara Warner,
The Power of the Purse, “From Minority to Majority:
McDonald’s Discovers the Woman Inside the Mom”
New! New! New! New! New!
Women’s
magazines
[“a medium that
McDonald’s had rarely used”]
Source: Fara Warner, The Power of the Purse,
“From Minority to Majority: McDonald’s Discovers
the Woman Inside the Mom”
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline, Economist, April 15, 2006, Leader, page 14
“The growth and
success of womenowned businesses is
one of the most
profound changes
taking place in the
business world
today.” —
Margaret Heffernan, How She Does It
U.S. firms owned or controlled by Women:
10.6 million (48% of all firms)
Growth rate of Women-owned firms vs all
firms: 3X
Rate of jobs created by Women-owned firms
vs all firms: 2X
Ratio of total payroll of Women-owned firms
vs total for Fortune500 firms: >1.0
Ratio of likelihood of Women-owned firms
staying in business vs all firms: >1.0
Growth rate of Women-owned companies
with revenues of >$1,000,000 and >100
employees vs all firms: 2X
Source: Margaret Heffernan, How She Does It
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“Economic Growth
Is Driven by …
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Impact! Add It Up!
Primary markets/Everything
(“Men buy
things that other men will buy for women. I buy things that women want.”—
successful jeweler/F. “Women are the majority market” —Fara Warner/The
Power of the Purse. Women as Purchasing Officers, CIOs, etc.)
Greater global workforce
participation rate (“bigger contributor to GDP
growth than technology, China, India”—Economist)
Higher wages
(more seniority, promotions—even if not to
CEO; greater pay equity—even if not equal)
Business “decision makers”
(more
seniority, promotions—even if not to CEO)
Women-owned businesses
(answer to the
Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing
world)
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.
“Since 1970, women
have held two
out of every
three new jobs
created.”
—FT, 10.03.2006
1. Participation rate/2 of 3 new jobs, last
30 years.
2. Male workforce departures/SENIOR male
workforce departures.
3. Shrinking pay gap/same jobs.
4. More senior positions. Greater decisionmaking/expenditure/organization
design authority. More line jobs.
5. Female solo head-of-household growing.
6. Longevity.
7. Education.
8. More effective money management.
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
Title, Special Report/BusinessWeek
Women’s Strengths Match New
Economy Imperatives: Link [rather than rank]
workers; favor interactive-collaborative leadership
style [empowerment beats top-down decision
making]; sustain fruitful collaborations; comfortable
with sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as
pure “rationality”; inherently flexible; appreciate
cultural diversity. —Judy B. Rosener,
America’s Competitive Secret: Women Managers
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
boomersgeezers
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
Or is it:
“18-44 is
stupid, stupid!”
“One particularly puzzling category of youthobsession is the highly coveted target of men
18-34, and it’s always referred to as ‘highly
coveted category.’ Marketers have been
distracted by men age 18-34 because they are
getting harder to reach. So what? Who wants
to reach them? Beyond fast food and beer, they
don’t buy much of anything. … The theory is
that if you ‘get them while they’re young,
What
nonsense!”
they’re yours for life.’
—Marti Barletta, PrimeTime Women
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
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
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution
to Reinvent America
“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
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
BONUS.
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
GENERIC DEMOGRAPHIC
TSUNAMI.
(UNPRECEDENTED IN HISTORY.)
Demographic Upheaval!
1/1/2008: 60% of the Prime Work Force
(“boomers”), mostly white males, will be able
to retire—at a rate of
10,000 per day.
As of 2005: 75% of people entering the
workforce are women and minorities. As of
“flood the
management ranks” as the
2008, they will
PWF retires.
Programs for recruiting women and minorities
with the necessary intensity: mostly AWOL.
Selling to Men, Selling to Women, Jeffery Tobias Halter
We become
who we spend
time with!
Measure “Strangeness”/Portfolio Quality
Staff
Consultants
Vendors
Out-sourcing Partners (#, Quality)
Innovation Alliance Partners
Customers
Competitors (who we “benchmark” against)
Strategic Initiatives
Product Portfolio (LineEx v. Leap)
IS/IT Projects
HQ Location
Lunch Mates
Language
Board
“The
Bottleneck Is at
the Top of the Bottle”
“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest
reverence for industry dogma:
At the top!”
— Gary Hamel/Harvard Business Review
EXCELLENCE.
1966. 2006.
De-centralization
execution
accountability
6:15a.m.
De-centralization
execution
accountability
6:15a.m.
“‘Decentralization’
is not a piece of
paper. It’s not me.
It’s either in your
heart, or not.”
—Brian Joffe/BIDvest
“If if feels
painful and
scary—that’s
real delegation”
—Caspian Woods, small biz owner
De-centralization
execution
accountability
6:15a.m.
“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
De-centralization
execution
accountability
6:15a.m.
“GE has set a standard
of candor. … There is no
puffery. … There isn’t
an ounce of denial in
the place.”
—Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
De-centralization
execution
accountability
6:15a.m.
De-centralization
execution
accountability
6:15a.m.
EXCELLENCE.
BEDROCK.
TALENT.
Hire very
good
people!
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
changed 20 of his
40 box plant managers
to put more talented,
higher paid managers in
charge. He increased profitability from
Pacific …
$25
million to
$80
million in
—Ed Michaels, War for Talent
2
years.”
INVITE THEM TO
JOIN US IN A
JOURNEY TO
EXCELLENCE!
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
“The role of the Director is to
create a space where the
actor or actress can become
more than they’ve
ever been before, more
than they’ve dreamed
of being.”
—Robert Altman, Oscar
acceptance
EMPHASIZE
THE “SOFT
SKILLS.”
PUT HR AT THE
HEAD OF THE
HEAD TABLE.
DD$21M
A review of Jack and Suzy Welch’s Winning claims there are but
two key differentiators that set GE “culture” apart from the herd:
First: Separating financial forecasting and performance
measurement. Performance measurement based, as it usually is, on budgeting
leads to an epidemic of gaming the system. GE’s performance measurement is
divorced from budgeting—and instead reflects how you do relative to your past
performance and relative to competitors’ performance; i.e., it’s about how you
actually do in the context of what happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Putting HR on
a par with finance
and marketing.
Second:
LIVE FOR
TALENT!
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
PARC’s Bob Taylor:
“Connoisseur
of Talent”
Brand =
Talent.
EXCELLENCE.
BEDROCK.
LEADERSHIP.
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for ,
trust.”
—Howard Schultz, Starbucks (IBD/09.05)
“I never, ever thought
of myself as a
businessman. I was
interested in
creating things I
would be proud
of.”
—Richard Branson
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“Most important,
upped the
energy level at
he
Motorola.”
—Fortune on Ed Zander/08.05
“You must
be
the change you
wish to see in the
world.”
Gandhi
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!” —RG
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
“Success seems to be
largely a matter
of hanging on
after others have
let go.”
—William Feather, author
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
“No leader sets out to be a leader
but rather to
express him- or
herself freely and
fully. That is, leaders have no
per se,
interest in proving themselves,
but an abiding interest in
expressing themselves.”
—Warren Bennis, On Becoming a Leader
You only
find oil if
you drill
wells.
—The Hunters, by John Masters,
Canadian O & G wildcatter
EXCELLE
ALWAYS
Bonus
Think!
vs.
do!
Tom peters
27 October 2006
Think!
vs.
do!
“Never forget
implementation , boys.
In our work, it’s what I
call the ‘last 98
percent’ of the client
puzzle.”
—Al McDonald, former Managing
Director, McKinsey & Co, to a project team that included TP
The (Strange) Case of Peter Drucker &
Michael Porter vs. The “Non-linearists”
HERBERT SIMON. (Administrative Behavior.) JAMES
MARCH. KARL WEICK. (The Social Psychology of
Organizing.) EUGENE WEBB. Henry
MINTZBERG. (The Rise and Fall of Strategic Planning.)
JAMES UTTERBACK. THOMAS KUHN. (The
Structure of Scientific Revolutions.) CHARLES
LINDBLOM. Daniel goleman.
INNOVATION BIOGRAPHERS.* (*Transcontinental
Railroad, Electrification, Radio, Television, Containerization, DNA,
MOST POLITICAL
SCIENTISTS. SILICON VALLEY. Etc.
Computers, Military History, Etc.)
Plan it!
“Non-linearist”: Try it!
“Linearist”:
think!
“Non-linearist”: do!
“Linearist”:
“Linearist”:
hypothesize!
“Non-linearist”:
experiment!
failure =
unnecessary
“Linearist”:
“Non-linearist”:
failure = life
a>b*
“Non-linearist”: b>a**
“Linearist”:
*Attitude shapes behavior
**Behavior shapes attitude
deliberate!*
“Non-linearist”: relentless!**
“Linearist”:
* “Do it right the first time” (Hero: Phil Crosby)
**Never retreat (Hero: U.S. Grant)
“Linearist”:
logical!
“Non-linearist”:
passionate!
give me
genius!
“Non-linearist”: give me
luck!
“Linearist”:
spotless
academic
record!
“Non-linearist”: a.d.d.
“Linearist”:
measured
pace!
“Non-linearist”: Tempo!
Tempo! Tempo!
“Linearist”:
think! Plan!
(r.a.f.*)
“Non-linearist”: Try it!
Screw it up! Fix it!
Try it again! (r.f.a.**)
“Linearist”:
*Ready. Aim. Fire.
**ready. Fire. Aim. (Or, circa 2006: fire. Fire. Fire.)
Cheap Shot
minimize cost.
“Non-linearist”: maximize
revenue.
“Linearist”:
marketing
rules.
“Non-linearist”: sales
rules.
“Linearist”:
“Linearist”
Background:
planning, marketing &
finance.
“Non-linearist”
background:
sales & operations.
“Linearist”
likes: ideas.
“Non-linearist”
likes: people.
“Linearist”
likes: parts.
“Non-linearist”
likes: wholes.
“Linearist”
office: walls.
“Non-linearist”
office: none.
“Linearist”
style: meetings.
“Non-linearist”
style: m.b.w.a.*
*Managing by wandering around
“Linearist”
reads: michael porter.
Peter drucker.*
“Non-linearist”
reads: waterman &
peters. Tom clancy.**
*Michael & peter
**Bob & tom & tom
“Linearist”
reads: michael porter.
Peter drucker.
“Non-linearist”
reads: doesn’t
“Linearist”
preferred baseball
score: 1-0.
“Non-linearist”
preferred baseball
score: 11-9.
“Linearist”
preferred football
score: 7-0.
“Non-linearist”
preferred football
score: 41-38.
“Linearist”
criminal record:
none.
“Non-linearist”
criminal record:
disorderly conduct.
Chronic jaywalking.
“Linearist”
drives: lincoln town
car. Ford explorer
(weekends).
“Non-linearist”
drives: bmw. Harleydavidson (weekends).
The (Strange) Case of Peter Drucker &
Michael Porter vs. The “Non-linearists”
HERBERT SIMON. (Administrative Behavior.) JAMES
MARCH. KARL WEICK. (The Social Psychology of
Organizing.) EUGENE WEBB. Henry
MINTZBERG. (The Rise and Fall of Strategic Planning.)
JAMES UTTERBACK. THOMAS KUHN. (The
Structure of Scientific Revolutions.) CHARLES
LINDBLOM. Daniel goleman.
INNOVATION BIOGRAPHERS.* (*Transcontinental
Railroad, Electrification, Radio, Television, Containerization, DNA,
MOST POLITICAL
SCIENTISTS. SILICON VALLEY. Etc.
Computers, Military History, Etc.)
EXCELLE
ALWAYS