Transcript Dubai/ 0416.2007 Franchise Lost! TP: “How many of you really [600] crave a new Chevy?” “Our whole story is growing revenue.” —Vernon Hill (Top-line driven; standard is bottom-line driven by cost.

Dubai/
0416.2007
Franchise Lost!
TP:
“How many of you really
[600]
crave
a new Chevy?”
“Our whole
story is
growing
revenue.”
—Vernon Hill (Top-line driven; standard
is bottom-line driven by cost cutting)
The Commerce Bank Model
“cost cutting
is a death
spiral.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
P=R–C
“If I could have chosen not to tackle the IBM
culture head-on, I probably wouldn’t have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands
[Yet] I
came to see in my time at
IBM that culture isn’t
just one aspect of the
game—it is the game.”
of people is very, very hard.
—Lou Gerstner, Who Says Elephants Can’t Dance
Hard Is Soft
Soft Is Hard
Hard Is Soft (#s)
Soft Is Hard (people)
Jim’s
Group
Basement
Systems inc/
seymour ct
Tom Peters’ X25*
EXCELLENCE.
ALWAYS.
19th Annual Buyouts Seminar/East
New York 18 April 2007
*In Search of Excellence 1982-2007
Slides at …
tompeters.com
New Zealand 2007
Ho hum: 2+ weeks in New Zealand …
Pfizer
Ford
Gap
Chrysler
Yahoo
microsoft
wal*mart
???
???
The last
word:
There is
no “last
word.”
“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
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
Why in the
World did you
go to Siberia?
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!
EXCELLENCE.
INNOVATE.
OR.
DIE.
“I don’t believe in economies of
You don’t get
better by being
bigger. You get
worse.”
scale.
—Dick Kovacevich/Wells Fargo
“Not a single company that
qualified as having made a
sustained transformation
ignited its leap with a big
acquisition or merger. Moreover,
comparison companies—those that failed to make a
leap or, if they did, failed to sustain it—often tried to
make themselves great with a
big acquisition or merger. They failed to grasp the
simple truth that while you can buy
your way to growth, you cannot buy your way to
greatness.” —Jim Collins/Time/2004
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
InnoTacs
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
“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
Screw.
things.
Sam’s
Secret
#1!
try.
Miss.
READY.
FIRE!
No try.
No deal.
“You miss
100% of the
shots you
never take.”
—Wayne Gretzky
EXCELLENCE.
4/40
DECENTRALIZATION.
EXECUTION.
ACCOUnTABILITY.
6:15A.M.
Up,
Up,
Up,
Up
the Value-added Ladder.
This is not
a “mature
category.”
This is an
“undistinguished
category.”
“The ‘surplus society’ has a surplus of
companies, employing
similar
similar
similar
similar
similar
people, with
educational backgrounds, coming up with
similar
similar
ideas, producing
with
prices and
things,
quality.”
—Kjell Nordström and Jonas Ridderstråle, Funky Business
LEAVE IT
TO BEAVER.
Trapper: <$20
per beaver pelt.
Source: WSJ
wdcp/“Wildlife
Damage-control
Professional”: $150 to
“remove” “problem beaver”;
$750-$1,000 for
flood-control piping … so
that beavers can stay.
Source: WSJ
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
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
“NEW”
MARKETS.
women
BOOMERS
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
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?
women
BOOMERS
GEEZERS
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64:
+47%)
EXCELLENCE.
BEDROCK.
LEADERSHIP.
9Ps.
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)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
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
“In the end, management
doesn’t change culture.
Management
invites
the workforce itself to
change the culture.”
—Lou Gerstner
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“You must
be
the change you
wish to see in the
world.”
Gandhi
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
“A man
without a
smiling face
must not open
a shop.”
—Chinese Proverb
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
“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.”
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:
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!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
"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)
EXCELLE
ALWAYS
THE.END