Transcript Tom Peters’ EXCELLENCE. ALWAYS. 13 Axioms. Grupo Modelo/28 May 2008 To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,”

Tom Peters’
EXCELLENCE.
ALWAYS.
13 Axioms.
Grupo Modelo/28 May 2008
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
MBWA
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”
“Breakthrough” 82*
People!
Customers!
Action!
Values!
*In Search of Excellence
Slides* at …
tompeters.com*
*Also long version
#1/13
“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
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
found that
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
“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
“Citigroup merger a mistake ”
“sad story”
“The stockholders have not
benefited. The employees
certainly have not benefited and
I don’t think the customers
have benefited because our
franchises are weaker than
they have been.”
Source: Financial Times, 0404.2008 (All quotes
courtesy John Reed, who crafted the CitiTravelers merger in 1998 in a $166B deal)
Mission impossible?
$36B/’98
minus
$675M/‘07
$10,000,000/Day
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“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
There’s “A”
and then
there’s “A.”
Winning the Merger Game
Is
Possible
--Lots of deals
--Little deals
--Friendly deals
—Stay close to core competence
—Strategy is easy to understand
Source: “The Mega-merger Mouse Trap”/Wall Street Journal/02.17.2004 /
David Harding & Sam Rovit, Bain & Co./re Comcast-Disney
Spinoffs
systematically
perform better than IPOs … track
record, profits … “freed from
the confines of the parent
… more entrepreneurial,
more nimble”
—Jerry Knight/ Washington Post/ 08.05
#1 Exporter?
#4 Japan
#3 USA
#2 China
#1 Germany
Reason!!!
Mittelstand
Or …
Goldmann
Produktions
(11/50%/$5M/”dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
The Red
Carpet
Store
Joel Resnick/Flemington NJ
(referenced in Fame Junkies)
The
black
swan
1982 (-) =
200
Years (+)
1982/Default Latin
America =
years
200
[Total historical earnings]
The Black Swan: The Impact of the
Highly Improbable, Nassim Nicholas Taleb
Career =
1 or 2
black swans
“Character is more crucial now
than ever, because in times of
great uncertainty past
performance is no indicator of
future performance. Experience
falls away and all you’re left
with is character.” —David Rothkopf,
founder of a firm that helps chief
executives manage risks
“Mapping your
competitive
position”
or …
1. Have you in the
last 10 days … visited
a customer?
2. Have you called a
customer … TODAY?
Conrad Hilton, at a gala celebrating his life,
was asked, “What was the most important lesson you’ve learned
in your long and distinguished career?”
His immediate answer:
“remember
to tuck the
shower curtain
inside the
bathtub”
2-cent
candy
<TGW
vs.
>TGR
ry it. Try it. Screw
t up. Try it. Try it
Try it. Try it. Try it
ry it. Screw it up
Try it. Try it. try i
ry it. Screw it up
“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
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
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.”
Ex-ecu-tion!
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“Execution =
Deepest “Blue
Ocean”
Ac-counta-bil-ity!
30%
MH: 80%
CF:
(no salesfolk)
(salesfolk)
6:15A.M.
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
Brand =
Talent.
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years
at Southwest Airlines (SWA’s pilots union took out a full-page
ad in USA Today thanking HK for all he had done; across the
way in Dallas American Airlines’ pilots were picketing the
Annual Meeting)
“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)
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
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
are …
perceived soaring purpose and personal and community
and client service Excellence.
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.”
EMPHASIZE
THE “SOFT
SKILLS.”
2/year =
legacy.
#1 cause of
Dis-satisfaction?
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
“No matter what the
situation, [the excellent
manager’s] first response is
always to think about the
individual concerned and
how things can be arranged
to help that individual
experience success.”
—Marcus Buckingham, The One Thing You Need to Know
“Every child is
born an artist.
The trick is to
remain an
artist.” —Picasso
We are the
company
we keep
The “Hang Out Axiom”: At
its core, every (!!!)
relationship-partnership
decision (employee,
vendor, customer, etc)
is a strategic decision
about:
“Innovate,
‘Yes’ or ‘No’ ”
“Normal” =
“o for 800”
Single
greatest act
of pure
imagination
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
R.O.I.R.
Return On
Investment In
Relationships
“Allied commands depend
on mutual confidence
[and this confidence]
is gained, above all
through the development
of friendships.”
—General D.D. Eisenhower,
Armchair General* (05.08)
*“Perhaps his most outstanding ability [at West Point] was
the ease with which he made friends and earned the trust
of fellow cadets who came from widely varied backgrounds;
it was a quality that would pay great dividends during his
future coalition command
Source: How Doctors Think, Jerome Groopman
Q/Systems Salesperson: “I make the
sale, and then the company screws up
the engineering or delivery or one of a
dozen things. Any suggestions?
“Spend less
time with your
customers!”
A/TP:
Relationships
(of all varieties):
THERE
ONCE WAS A TIME WHEN A
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT RESULTED
IN A COMPLETE RUPTURE.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
“I screwed
up.”*
*The virtuous “circle of blame
Showing up!
Listening!
Volunteering!
Nice!
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“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 by 96%, against
the Tokyo stockmarket’s rise
of 13%.” —Economist, April 15
The Perfect Answer
Jill and Jack buy
slacks in black…
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
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?
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
We are the Aussies & Kiwis & Americans &
Canadians. We are the Western Europeans &
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the
most (yes) ambitious, the most experimental &
exploratory, the most different, the most
indulgent, the most difficult & demanding,
the most service & experience obsessed, the
most vigorous, (the least vigorous,) the most
health conscious, the most female, the most
profoundly important commercial market in
the history of the world—and we will be the
Center of your universe for the next twentyfive years. We have arrived!
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that
differentiates one
product from another
in the marketplace.”
features.
—Norio Ohga
treated
like a religioN*
“Design is
at BMW.”
—Fortune
*“Radically Thrilling”
“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 meaning
Design is the
fundamental soul
of a man-made
creation.”*
of design.
—Steve Jobs
*“Insanely great”
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!*
*Not “like” and “dislike”
“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)