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To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” LONG Tom Peters’ X25* EXCELLENCE. ALWAYS. People. Period. Taleo/0910.2007/San Francisco *In Search of Excellence 1982-2007 Slides at … tompeters.com Establishing Shot #1 Q4/2006 +500,000 Source: Barron’s 0922.07 Q4/2006 +500,000 = ? Source: Barron’s 0922.07 Q4/2006 +500,000 = +7,700,000 -7,200,000 Source: Barron’s 0922.07 Establishing Shot #2 Flash … The Rich Get Richer Flash … #1/100 “Best Companies to Work for”/2005 Wegmans “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke Establishing Shot #3 “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) profits, people or people, profits? 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 “How to piss away $500,000 in one easy lesson!!” TP: Establishing Shot #4 EXCELLENCE. ASPIRATION. 2006. Why in the World did you go to Siberia? Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. The Peters Principles: Wow! An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others.** **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 Organizations exist to serve. Period. Leaders live to serve. Period. Summer 2007. Organizations exist to serve. Period. Leaders live to serve. Period. Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain (a 600SF retail space, a 4-person training department, an urban school, a rural school, a city, a nation), create/ must necessarily create organizations which are no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair (We are all entrepreneurs—Muhammad Yunus) of diverse individuals (100% creative Talent—from checkout to lab, from Apple to Wegmans to Jane’s one-person accountancy in Invercargill NZ) is unleashed in passionate pursuit of jointly perceived soaring purpose (= win a Nobel peace prize like Yunus, or at least do something worthy of bragging about and personal and community and client service Excellence. 25 years from now to your grandkids) Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/ must necessarily create organizations which are 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 jointly perceived soaring purpose and personal and community and client service Excellence. … 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. Such Talent unbound pursue Quests (rapidly and relentlessly experimenting and failing and trying which surprise and surpass and redefine the expectations of the individual and the servant leader alike. The collective “products” of these Quests offer the best chance of achieving rapid organizational and individual adaptation to fast-transforming environments, and provide the nutrition for continuing (and sometimes dramatic) reimaginings which re-draw the boundaries of industries and communities and human achievement and the very conception of what is possible. again) In turn, such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement, will automatically create cadres of imaginative and inspiring and determined servant leaders who stick around to take the organization to another level, and then another—or, equally or more important, leave to spread the virus of Freedom-CreativityExcellence-Transforming Purpose by pathfinding new streets, highways and alleyways which vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth. … such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement … vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth. Did one of ’em ever turn to the other and say: “Wow, I wonder what unimaginable new tools, otherwise not possible, will be brought forth for my daughter Alice, age 17, because of this deal?” Did one of ’em ever turn to the other and say: “Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth for our customers because of this deal?” “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 “It’s just a fact: Survivors underperform.” —Dick Foster Built to Last vs Built to Change/Rock the World TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?) “Do one thing every day that scares you.” —Eleanor Roosevelt Truly, truly All you need to know … “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 Elizabeth Cady Stanton (more or less) (circa 0331.2007) All you need to know … Single greatest act of pure imagination EXCELLENCE. CIRCA 1982. 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 $85,000 EI: $10,000 yields $140,050 DJIA: $10,000 yields *Forbes/Excellence Index /Basket of 32 publicly traded stocks EXCELLENCE. TOM. 2007. Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) aCCEPT NO LESS THAN EXCELLENCE/PURSUE Wow! enjoy It While It Lasts EXCELLENCE. 1982. Hard is soft. Soft is hard. Hard Is Soft Soft Is Hard Hard Is Soft (#s) Soft Is Hard (people) EXCELLENCE. “the rules.” Cause Space (worthy of commitment) (room for/encouragement for initiative) Decency (respect, humane) Cause Space (worthy of commitment) (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) Cause Space Decency service (worthy of commitment) (room for/encouragement for initiative-adventures) (respect, grace, integrity, humane) (worthy of our clients’ & extended family’s continuing custom) excellence servant leadership (period) Cause Space Decency service excellence servant leadership “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) all “wow” all the time Enjoy It While It Lasts EXCELLENCE. ASPIRATION. UNIVERSAL. Jim’s Group Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group Basement Systems Inc. *Basement Systems Inc. *Larry Janesky *Dry Basement Science (115,000!) *1993: $0; 2003: $12M; 2006: $50,000,000+ Perdue, Semco, Wegmans, John Laing, Commerce Bank, Milliken, Jim’s Group, Basement Systems Inc, Guardsmark, “Soft stuff”/ people, action, Execution, Quality of the Experience PPI/Professional Parking Services Inc, : EXCELLENCE. INNOVATE. OR. DIE. InnoTacs We become who we hang out with 1 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 “Normal” = “o for 800” Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.) “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 Memphis Manifesto*: Building a Community of Ideas 1. Cultivate & reward creativity. 2. Invest in the creative ecosystem. 3. Embrace diversity. 4. Nurture the creatives. 5. Value risk-taking. 6. Be authentic (emphasize uniqueness) 7. Invest in and build on quality of place. 8. Remove barriers to creativity. 9. Take responsibility for change. Development as D.I.Y. 10. Ensure that every person, especially children, has the right to creativity. Become a “Steward of creativity.” *2003/The Creative 100/Memphis Source: Richard Florida, The Rise of the Creative Class 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 What makes God laugh? People making plans! “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “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 SERIOUS PLAY “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play Screw. things. “Fail . Forward. Fast.” High Tech CEO, Pennsylvania Sam’s Secret #1! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/0625.07) Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation try. Miss. READY. FIRE! No try. No deal. “You miss 100% of the shots you never take.” —Wayne Gretzky 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 Buy a Mirror! Step #1: “Work on me first.” —Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations EXCELLENCE. 4/40. (Decentralization/Execution/Accountability/6:15A.M.) DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6:15A.M. De-central-iza-tion! Enemy #1 I.C.D. Inherent/Inevitable/ Immutable Centralist Drift Note 1: Note 2: Jim Burke’s 1-word vocabulary: “No.” No problems = No progress. [Period.] Or Is It Mike Who’s Crazy? “Isn’t it crazy that your child is learning different material and being held to a different standard than, say, your sister’ children in another state?” —Mike Petrilli, Fordham Institute (U.S. News & World Report, 0305.07) Ex-ecu-tion! “Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. 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 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) “Mr Zetsche, head of Chrysler from 2000 to 2005, denied he should take any responsibility for the U.S. carmaker’s troubles …” —Financial Times /05.29.07 $10,000,000/Day 6:15A.M. EXCELLENCE. INDIVIDUAL. BRAND YOU. “If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired BRAND YOU. NO OPTION. 12January2006 th, Happy 300 Brand You! The electrician knows! EXCELLENCE. BEDROCK. TALENT. Hire very good people! “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $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 EMPHASIZE THE “SOFT SKILLS.” A Few Lessons from the Arts Each hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators) Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” (G Leonard/Mastery) Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W. (everything) Delta events = Delta rosters (incl leader/s) Diversity = profit “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the blackand-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” —G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge Build on strengths “The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know 53 = 53 “Never, ever again will I evaluate anyone using a standardized instrument devised by a “professional” in inhuman Resources.” Promise #1: SO YOU’RE A “PEOPLE PERSON”? PROVE IT. “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 PARC’s Bob Taylor: “Connoisseur of Talent” “Do” TALENT! ‘do’ “Leaders people. Period.” —Anon. From sweaters to … Les Wexner: people! 220 workdays = 220 “rosters” Source: Coach K SO YOU’RE A “PEOPLE PERSON”? PROVE IT. < CAPEX > People! SO YOU’RE A “PEOPLE PERSON”? PROVE IT. PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION. 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. “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke EXCELLENCE. AWOL. THE SCHOOLS FIASCO. K-12. “The Creative Age is a wideopen game.” —Richard Florida, The Rise of the Creative Class “Every child is born an artist. The trick is to remain an artist.” —Picasso “My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” grade in art at such a young age? —Jordan Ayan, AHA! EXCELLENCE. BEDROCK. LEADERSHIP. 9Ps. st “21 -century Leadership” = Bunkum 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) Leader Job One Paint Portraits of Excellence! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive. Ben Zander: “I am a … Dispenser of Enthusiasm!” PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive. “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. “It’s always showtime.” —David D’Alessandro, Career Warfare PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive. “You must be the change you wish to see in the world.” Gandhi 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 “Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author Relent PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive. “Leaders ‘SERVE’ people. Period.” —Anon. Leaders Understand: Brand = Talent. Leadership’s th 10 “P”: Promotion “Everyone studies the brigadier general promotion list like tarot cards—who makes it, who doesn’t. It communicates what qualities are valued and not valued.” —Colonel, unidentified, from “Challenging the Generals,” Sunday Times Magazine, 0826.07 2 per Year/ 20 per Decade = Excellence + Legacy 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! “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive. 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 “[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 02.1982) Geron-imo!