All You Need to Know* *more or less Tom Peters/21June2006 All You Need to Know* *more or less.
Download ReportTranscript All You Need to Know* *more or less Tom Peters/21June2006 All You Need to Know* *more or less.
All You Need to Know* *more or less Tom Peters/21June2006 All You Need to Know* *more or less Slides at … tompeters.com Astounding Tales THREE BILLION NEW CAPITALISTS —Clyde Prestowitz “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” —Peter Drucker “This is a dangerous world and it is going to become more dangerous.” “We may not be interested in chaos but chaos is interested in us.” Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century “the metabolically dominant soldier” Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodies—and What It Means to Be Human, Joel Garreau Chicagoland’s Mystery Disappearances … “New Economy”! Sergey + Larry > Harvard/370 All You Need to Know* *more or less Cause “Create a ‘cause,’ not a ‘business.’’ —Gary Hamel “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) “Management has a lot to do with answers. Leadership is a function of questions. And the first question for a ‘Who do we intend to be?’ leader always is: Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller Quest “I don’t know.” Source: Karl Weick “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.” Source: Organizing Genius/Warren Bennis & Patricia Ward Biederman Leadership’s Mt Everest “free to do his or her absolute best” … “allow its members to discover their greatness.” “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 “In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner “We are a ‘life Success Company”’ —Dave Linegar, founder, RE/MAX Best Story “Storytelling is the core of culture.” —Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell Artist Leader Job One Paint Portraits of Excellence! People “Leaders ‘do’ people.” —Anon. Les Wexner: From sweaters to people! “Connoisseur of Talent” Source: Colleague on PARC’s Bob Taylor Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft “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 $25 million to $80 million in 2 years.” —Ed Michaels, War for Talent Pacific Brand = 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 People II Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director People III 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; ie 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. Second: Putting HR on a par with finance and marketing. DD$21M Decency “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say.” —Sara Lawrence-Lightfoot, Respect Amen! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke Grace Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness .. benevolence … benefaction … compassion … beauty “Thank you” “The deepest human need is the need to be appreciated.” —William James “The two most powerful things in existence: a kind word and a thoughtful gesture.” —Ken Langone Say it with … FLOWERS Intangibles “Hard is soft. Soft is hard.”* *In Search of Excellence Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM STINKS.] Intangibles II* (*Bonus) Stating the Obvious: THE PROBLEM IS RARELY THE PROBLEM. OFTEN AS NOT/MORE OFTEN THAN NOT THE UNDERLYING PROBLEM IS IN FACT NOT MUCH OF A PROBLEM. PERCEPTION IS ALL THERE IS. PERIOD.* *From Whole Foods to IBM to the corner deli POWER WORDS! “I’m sorry.” 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. Relationships (of all varieties): Selfmanagement “The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” —RG You = Your Calendar “You must be the change you wish to see in the world.” Gandhi MBWA “You can’t lead a cavalry charge if you think you look funny on a horse.” —John Peers, President, Logical Machine Corporation “The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.” —John Keegan, The Mask of Command “A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender “To change minds effectively, leaders make particular use of two tools: the stories that they tell and the lives that they lead.” Changing Minds —Howard Gardner, Curiosity “Why?” Ears “If you don’t listen, you don’t sell anything.” —Carolyn Marland/MD/Guardian Group Conformity “While everything may be it is also increasingly the same.” better, —Paul Goldberger on retail, “The Sameness of Things,” The New York Times “Companies have defined so much ‘best practice’ that they are now more or less identical.” —Jesper Kunde, Unique Now ... or Never “To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.” —W. Chan Kim & René Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03 “The short road to ruin is to emulate the methods of your adversary.” — Winston Churchill Conformity II “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/“Strategy or Revolution”/Harvard Business Review Action “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher “Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done Action/ Bedrock “Realism is the heart of execution.” —Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done “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) Try It Try It Try It “This is so simple it sounds stupid, but it is amazing you only find oil if you drill wells. how few oil people really understand that 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 (80%) “We made mistakes. 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 No. 5. By the time our rivals are ready with wires and screws, we are on version No. 10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” Michael Schrage Try It/ Logic of “We are in a brawl with no rules.” —Paul Allaire S.A.V. Screw Around Vigorously Screw It Up “Fail faster. Succeed sooner.” David Kelley/IDEO “Fail. Forward. Fast.” –High-tech Exec/PA “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Sam’s Secret #1! “Tom, very simple. Sam was not afraid to fail.” —David Glass to TP, on the occasion of Sam’s induction into The Sales & Marketing Hall of Fame De-central-iza-tion! Ex-ecu-tion! Ac-counta-bil-ity! 6:15A.M. Dramatic Difference Point of View!/Point of Dramatic Difference! 7X. 730A800P. F12A.* *’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a. “It’s simple, really, Tom. Hire for s, and, above all, promote for s.” —Starbucks middle manager/field “[Immelt] is now identifying technologies with which GE systematically set out to build entirely new industries” will … —Strategy+Business, Fall 2005 The “Small Guys” Guide: Wallop Wal*Mart16 *Niche-aimed. (Never, ever “all things for all people,” a “miniWal*Mart.) *Never attack the monsters head business and lukewarm customers.) on! (Instead steal niche *“Dramatically Different” (La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) *Emotional bond with Clients, ON EMOTION/CONNECTION!!) Vendors. (BEAT THE BIGGIES Donnelly’s Weatherstrip Service Weymouth MA SET THE AGENDA.* (Period.) Great Companies … * “disturb the sleep of … AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Toyota … Sears … GM … ITT … The Gap … Limited … Wal*Mart … Tesco … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Microsoft … Google … Enron … Schwab … GE … Laker … Southwest … People Express … Ogilvy … Virgin … eBay … Amazon … Sony … Amgen … BMW … CNN … Nike “But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.” will become ever more fleeting. —Kjell Nordström and Jonas Ridderstråle, Funky Business Create “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will Only the constant pursuit of innovation can ensure long-term success.” ultimately render them obsolete. —Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04) “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, CEO, Reuters Revenue “Analysts … preferred cost cutting, as long as they could see two or three years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!” so many got caught, and earnings went to hell. —Dick Kovacevich, Wells Fargo C *Chief O* Revenue Officer Top Line, Anyone? Point (Advertising Age), to Phil Kotler: “Who should the CMO [Chief Marketing Officer] report Kotler: “Maybe a to?” Chief Revenue Officer—the cost side has been squeezed, now companies have to focus on top-line growth—or maybe a Customer Officer. Chief (TP: Or maybe both!) Sell Sell “Everyone lives by selling something.” . – Robert Louis Stevenson Sell Sell “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 Bonus: TP.27 … on Selling (Short) (Personal) Out-prepare!! (huge time commitment!) Learn the “culture” Practice! Care-Empathy Listen-Empathetic listening (SC) “Listen”-Body language K.I.S.S. (1-page summary. 1 = 1.) Enthusiasm-ENERGY-“Authenticity”!! OBVIOUS belief in product Selling: Solution-Success-Experience-Dream come true-Love-Dramatic Difference Selling: Better STORY! (“Best story wins”) Selling: Yourself! (Brand you) “Obvious” Wow! No exaggeration! Spell out commitments! SIMPLE timeline Sell “inside”-First! Thorough! Relationships-“Way down”!! Time!!!! (Eg, build trust) Ooze integrity Introduce to rest of team, esp “mechanics” SBWA (5K for 5M) Remember: Close! Gotta-make-a-profit (be ready to walk away!) “Good loss” Don’t dis competitors!! Make her-him-target SUCCESSFUL (in a personal way) “It’s always showtime.” —David D’Alessandro, Career Warfare Women Buy Women Lead “Women are the majority market” —Fara Warner/The Power of the Purse 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. 10. Women’s Market = Opportunity No. 1. The Perfect Answer Jill and Jack buy slacks in black… “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/BusinessWeek “To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/PepsiCo ???????? “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 Boomers Buy Geezers Buy 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 Valueadded And the “M” Stands for … ? “Systems Integrator of choice.”/BW Gerstner’s IBM: (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services* Services Corp.): $55B (*Integrated Systems And … MasterCard Advisors Valueadded II “ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of irrelevance—disintermediation is just another way you’ve become irrelevant to your customers.” of saying that … —John Battelle/Point/Advertising Age/07.05 Answer: Professional Service Firm/PSF! Department Head to … Managing Partner, IS [HR, R&D, etc.] Inc. “Game-changing Solutions”: Core Mechanism PSF (Professional Service Firm “model”) + Wow Projects (“Different” vs “Better”) + Brand You (“Distinct” or “Extinct”) Answer: Experience Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-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 $415/SqFt $798/SqFt Q: “Why did you buy Jordan’s Furniture?” A: “Jordan’s is spectacular. It’s all showmanship. Source: Warren Buffet interview/Boston Sunday Globe C *Chief e O* Xperience Officer Love Kevin Roberts: Lovemarks! 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 “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 Design is the fundamental soul of a man-made creation.” meaning of design. Steve Jobs Focus “Dennis, you need a ‘Todon’t ’ List !” “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “We will not, I repeat not, pretend to be ‘all things to all people.’” —CEO, Investec (03.06) K.I.S.S. 450/8 Danger: S.I.O. (Strategic Initiative Overload) “I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy right. With their limited resources, they have to rely on laser-like focus on doing one thing very well.” —Jack Welch/Fortune/04.05 Relentless “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 peculiarity of his character: Grant had an extreme, almost phobic dislike of turning back and retracing his steps. 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 “It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.” —WSC Change “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army “We eat change for breakfast! —Harry Quadracci, QuadGraphics “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat “The most successful people are those who are good at ‘plan B.’” —James Yorke, mathematician, on chaos theory in The New Scientist Change II We become who we hang out 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 “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson Forget Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock “Forgetting strategy”? Big Change No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo Five MYTHS About Changing Behavior *Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free *Small, gradual changes are always easier to make and sustain *We can’t change because our brains become “hardwired” early in life Source: Fast Company/05.2005 Big Bigger Biggest ?????? “I don’t believe in economies of You don’t get better by being bigger. You get worse.” scale. —Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%) “Forbes100” from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 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 “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 New Economy?! Genentech09, Amgen09 > Merck09 (70K-3/394B-5) Agressive “[Other] admirals more frightened of losing than anxious to win” Nelson’s secret: Speed “We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive Tempo He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd Kevin & Richard Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9. If it ain’t broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff. 10. Avoid moderation! Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Passion & Enthusiasm “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “I am a dispenser of enthusiasm.” —Ben Zander Enthusiasm … the ultimate virus “A man without a smiling face must not open a shop.” —Chinese Proverb* *Courtesy Tom Morris, The Art of Achievement Passion & Enthusiasm II “Before you can inspire with emotion, you must be swamped with it yourself. Before you can move their tears, your own must flow. To convince them, you must yourself believe.” —Winston Churchill Hustle “Most important, upped the energy level he at Motorola.” —Fortune on Ed Zander/08.05 Sunny “A leader is a dealer in hope.” Napoleon Sunny II “Ronald Reagan radiated an almost transcendent happiness.” —Lou Cannon Aim High 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 Dream “the wildest chimera of a moonstruck mind” —The Federalist on TJ’s Louisiana Purchase “Tell me, what is it you plan to do with your one wild and precious life?” —Mary Oliver No Limits “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch “You do not merely want to be You want to be considered the only ones who do what you do.” the best of the best. —Jerry Garcia Stay Hungry. Stay Foolish. Steve Jobs HTSH: Engage!* Commit! Engage! Try! Fail! Get up! Try again! Fail again! Try again! But never, ever stop moving on! Progress for humanity is engendered by those who join and savor the fray by giving one hundred percent of themselves to their dreams! Not by those timid souls who remain glued to the sidelines, stifled by tradition, and fearful of losing face or giving offense to the reigning authorities. Key words: Commit! Engage! Try! Fail! Persist! *HTST/Hands That Shape Humanity, Tom Peters’ contribution to a Bishop Tutu Foundation travelling exhibit