Transcript Tom Peters’ EXCELLENCE. ALWAYS. World Business Forum Frankfurt/24October2006 Slides* at … tompeters.com *also see “Long” version.

Tom Peters’
EXCELLENCE.
ALWAYS.
World Business Forum
Frankfurt/24October2006
Slides* at …
tompeters.com
*also see “Long” version
HA.
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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.
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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.
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”
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
“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!
Get mad. Do
something
about it. Now.
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”
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Speed/
Tempo
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
re-imagine the
“value added”
equation
The [NEW] “Value-added Ladder”
Gamechanging Solutions/
Implemented
Customer success
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials
“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)
“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
HARLEY = “REBEL LIFESTYLE!”
“What we sell is the
ability for a 43-yearold accountant to
dress in BLACK
LEATHER, ride through
small towns and have
people be afraid
of him.”
Harley-Davidson exec, 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
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
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males/whoops
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“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
“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
“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
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.
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
Title, Special Report/BusinessWeek
boomersgeezers
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution to
Reinvent America
We 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.
“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
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.
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
PUT HR AT THE
HEAD OF THE
HEAD TABLE.
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
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)
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“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.
You only
find oil if
you drill
wells.
—The Hunters, by John Masters,
Canadian O & G wildcatter
EXCELLE
ALWAYS