Transcript Tom Peters’ EXCELLENCE. ALWAYS. World High Performance Forum Art Institute/17 November 2006 Slides* at … tompeters.com *also see LONG version.

Tom Peters’
EXCELLENCE.
ALWAYS.
World High Performance Forum
Art Institute/17 November 2006
Slides* at …
tompeters.com
*also see LONG version
3,000,000,000
5/42
500/900
“… America’s godgiven right …”
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.
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
Jim’s
Group
EXCELLENCE.
SIBERIA.
“Why in the
world did
you go to
Siberia?”
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Clients.
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”
The older I
get the less
boring the
“basics”
become!
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.
“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
More Than $$$$
R&D
spending,
last 25 years/USA?
EXCELLENCE.
INNOVATE.
ALL. WRONG.
The Mess Is
the Message!
Period!
The Mess Is the Message! Period!
An Economic Interpretation of the Constitution
of the United States —Charles Beard (1913)
The Box: How the Shipping Container Made the World
Smaller and the World Economy Bigger —Marc Levinson
Tube: The Invention of Television —David & Marshall Fisher
Empires of Light: Edison, Tesla, Westinghouse,
and the Race to Electrify the World —Jill Jonnes
The Soul of a New Machine —Tracy Kidder
Rosalind Franklin: The Dark Lady of DNA —Brenda Maddox
The Blitzkrieg Myth —John Mosier
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
“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
“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
“We ground
up more pig
brains!”
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”
“You miss 100
percent of the
shots you never
take.”
—Wayne Gretzky
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
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
Plan it!
“Non-linearist”: Try it!
“Linearist”:
think!
“Non-linearist”: do!
“Linearist”:
“Linearist”:
hypothesize!
“Non-linearist”:
experiment!
failure =
unnecessary
“Linearist”:
“Non-linearist”:
failure = life
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”: hypomanic!
“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
“Linearist”:
Optimizer/optimizer/
minimize cost.
“Non-linearist”: maximizer/
drive revenue.
marketing
rules.
“Non-linearist”: sales
rules.
“Linearist”:
“Linearist”
office: walls.
“Non-linearist”
office: none.
“Linearist”
style: meetings +
PowerPoints.
“Non-linearist”
Style: MBWA +
whiteboards
*Managing by wandering around
“Linearist”
reads: michael porter.
Peter drucker.
“Non-linearist”
reads: carl hiaasen.
Tom clancy.**
“Linearist”
preferred football
score: 3-0.
“Non-linearist”
preferred football
score: 41-38.
“Linearist”
criminal record: none.
“Non-linearist”
criminal record:
speeding.
Reckless driving.
disorderly conduct.
Public nuisance.
Think!
vs.
do!
“Action is the
foundational
key of all
success.”
—Picasso
“The secret of
getting ahead
is getting
started.” —
Agatha Christie
“A year from now
you may wish
You had
started today.”
—Karen Lamb
“The secret to
having good ideas
is to have a lot of
ideas, then throw
the bad ones
away.”
—Linus Pauling
A man approached JP Morgan, held up an envelope, and said,
“Sir, in my hand I hold a guaranteed formula for success, which I will
gladly sell you for $25,000.”
“Sir,” JP Morgan replied, “I do not know what is in the envelope,
however if you show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.”
The man agreed to the terms, and handed over the envelope.
JP Morgan opened it, and extracted a single sheet of paper.
He gave it one look, a mere glance, then handed the piece of paper
back to the gent.
And paid him the
agreed-upon $25,000 …
1. Every morning, write a
list of the things that
need to be done that
day.
2.
Do them.
“Intelligent people
can always come up
with intelligent
reasons to do
nothing.”
—Scott Simon
re-imagine the
“value added”
equation
“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”
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials/Stuff
The [NEW] “Value-added Ladder”
Gamechanging Solutions/
Implemented Customer
culture change & success
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials/Stuff
“ ‘Disintermediation’ is overrated. Those who fear
disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
you’ve
become irrelevant to
your customers.”
way of saying that …
—John Battelle/Point/Advertising Age/07.05
Are you …
“Rock
Stars of the
Age of
Talent”
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)
“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
Up,
Up,
Up,
Up
the Value-added Ladder.
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
Dream Merchants:
IBM
UPS
The [NEW] “Value-added Ladder”
dreams come true
spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ ECSTASY
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
[totally] re-imagine
the business around
the two staggering
“new” opportunities
women
“Economic Growth
Is Driven by …
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
Women’s Trifecta+
*Buy/all
*Wealth/all
*Lead/ better
+Eclipse of males/whoops
(Retire-old/Poorly educated-young)
“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
“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
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”
“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
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“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
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
For a number of
observers, we have already
entered the age of ‘womenomics,’
the economy as thought out and
practiced by a woman.”
boys in the school system.
—Aude Zieseniss de Thuin, Financial Times, 10.03.2006
“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
New Steps (4 of 7) on the Value-added “Ladder”:
Play to Women’s Inherent Strengths!
Lovemark/F
Dreams Come True/F
Spellbinding Experiences/F
Gamechanging Solutions/F
Services/F
Goods/M
Raw Materials/M
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%)
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution
to Reinvent America
BoomerBucks!
Boomer turns 50: every 7 seconds. 2009: MAJORITY
OF U.S. HOUSEHOLDS HEADED BY SOMEONE OVER 50.
2006-2016: 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
“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
44-65:
“New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
Boomers’-Geezers’-Women’s Trifecta+
*Buy/all
*Wealth/all
*time left/ lots
*Eclipse of males/retire-die
EXCELLENCE.
1966. 2006.
De-centralization
execution
accountability
6:15a.m.
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
“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
“Never forget
implementation
boys. In our work
it’s what I call the
‘missing 98 percent’
of the client
puzzle.”
—Al McDonald
“The first 90% of a
project takes 90% of
the time. The last 10%
takes the other 90% of
the time.”
—Richard Templar,
The Rules of Management
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.
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.
Thank
You!
FLOWER
POWER
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
Jim Jeffords
oversight!
The …
“You can make more
friends in two months by
becoming interested in
other people than you
can in two years by
trying to get other people
interested in you.”
—Dale Carnegie
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
“If God spoke to me by saying, ‘Mark, you’re down to your
last three words: What would you want to say to your
fellow humans that would make the most positive impact?’
It would be a close call between Love Thy
Neighbor and
Wash Your
Hands .”
—Mark Pettus, M.D., The Savvy Patient
“The most important thing you can do to keep
wash
your hands.”
from getting sick is to
—CDC/
National Center for Infectious Diseases
“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
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
EXCELLE
ALWAYS