LONG Tom Peters’

EXCELLENCE. ALWAYS.

XAlways/Austin/07 September 2006

tompeters.com

EXCELLENCE.

ALL YOU NEED TO KNOW.

Execution.

(Discipline.) Accountability.

Action, a Bias for.

(S.A.V./R.F.A.) Relentless.

Experimentation.

(“Innovate or Die.” “He who makes …”) Adaptability.

(Plan B; “We eat …”) “In the moment.” Fun.

(Bertolucci.) Senility.

Exuberance.

Technicolor. Wow!

(Extreme Language.) Quest-Adventure.

By Invitation.

Talent. Roster.

($21M.) Weird.

(Hangin’ Out + Bottlenecks.) D-squared/ “Dramatic Difference.” Up-Up-Up the “VA Ladder.” Trifecta: Wow Projects-Brand You-PSF.

(No Option.) Design.

Women.

4-40 /D.E.A.615. (60TIBs; IRR209.) EXCELLENCE.

That’s a

Big

Number ….

THREE BILLION NEW CAPITALISTS

—Clyde Prestowitz

“

There is no job that is America’s God-given right anymore.”

—Carly Fiorina/HP/January2004

“Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/ FT /0327

(500 of 900 Research)

EXCELLENCE.

MANDATE.

“

If you don’t like change, you’re going to like irrelevance even less.”

—General Eric Shinseki, Chief of Staff. U. S. Army

“It is not of the species that survives, the strongest nor to change.” the most intelligent, but the one most responsive —Charles Darwin

“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; 12 74 members of the Class of ’57 were alive in (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 is generally much easier to

kill an organization

than change it substantially.”

—Kevin Kelly, Out of Control

(Practical)

Implication?

“Go for it!”

(Why not — alternative is slow death, at best)

C.E.O.

to

C.D.O.

Joe J. Jones 1942 – 2006 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

“We are in a brawl with no rules.”

—Paul Allaire

S.A.V.

“The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.

”

—Newsweek/Paul Saffo

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?)

“Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, imperfectly seizing the unknown.”

—Kevin Kelly,

but by

New Rules for the New Economy

New Economy?!

Sergey + Larry > Harvard/ 370

EXCELLENCE. STARTERS.

HORRORS.

Franchise Lost!

TP:

“

How many of you

[600]

really

crave

a new Chevy?”

“Ford, GM and Chrysler do not just make cars expensively … they make bad cars expensively.”

—Investec analyst, International Herald, 0805.06

Sluggish + Sluggish + More Sluggish Obese + Obese + Unimaginative + + More More Obese More Unimaginative + + Even Even More Even More Unimaginative =

NISSAN + RENAULT + GM

= Innovative Challenger for Toyota????

Oh, Great …

Ford: Airplane guy.

GM: CFO.

Small cars HQ: LA.

Big cars HQ: Dallas.

Corporate HQ: Atlanta.

CEO: Roger Enrico Meg Whitman.

or Lou Gerstner or COO: Bob Nardelli.

Chairman: George Steinbrenner or Jack Welch or Ross Perot.

Vice chairman & CFO: Warren Buffett.

Chief Marketing Officer: Brenda Barnes.

Chief Branding Officer: Phil Knight (or Howard Schultz ). Chief Innovation Officer: Steve Jobs or Jeff Immelt.

Chief/Supply Chain: Raid Wal*Mart or CostCo or Dell.

Chief/Dealer Relations: Carl Sewell.

EXCELLENCE. STARTERS.

BASICS.

Did one of ’em ever turn to the other and say: forth Alice, age 17 “Wow, I wonder what unimaginable new tools, otherwise not possible, will be brought for my daughter , because of this deal?”

People.

Product.

Clients.

Execution.

Enthusiasm.

Excellence.

People.

Product.

Clients.

Execution.

Enthusiasm.

Excellence.

Relentlessness.

People.

Product.

Clients.

Execution.

Enthusiasm.

Excellence. Relentlessness. Senility

Wanted * ** :

Corporate Senility!

** *Desperately!

“The problem is never how to get new, innovative thoughts into your mind, how to get the old ones out.” but

—Dee Hock

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

People.

Product.

Customers.

Execution.

Enthusiasm.

Excellence. Relentlessness. Senility

EXCELLENCE. THE WORD.

Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms

Mediocrity

EXCELLENCE. GAMECHANGER.

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”

ExIn*: 1982-2002/Forbes.com

DJIA EI : : $10,000 yields $85,000 $10,000 yields $140,050 *Forbes/ Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE. ALWAYS.

“Why in the world did you go to Siberia?”

The Peters Principles: Enthusiasm.

Emotion. Excellence.

Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit.

Innovation. Design. Quality. Entrepreneurialism. Wow.

Business* ** (*at its best) : An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others.

*** ** Excellence. Always.

***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE. DEFINED.

Great Companies …

SET THE AGENDA

.

*

(PERIOD.) * “disturb the sleep of …

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … GM … ITT … The Gap … Limited … Wal*Mart … Toyota Tesco … Sears … … P&G … 3M … Intel … IBM … Cisco Microsoft Schwab … … Dell GE … Apple … MCI … Sun … Google Amazon … Nokia … … Enron … … Laker … Southwest … People Express … … eBay … Ogilvy … Virgin … Sony … Amgen … BMW … CNN … Nike

Built to Last vs Built for Impact “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 will become ever more fleeting.

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 .”

—Kjell Nordström and Jonas Ridderstråle, Funky Business

EXCELLENCE. VALUE ADDED.

UP THE LADDER.

EXCELLENCE I. SOLVE IT.

“Big Brown’s New Bag: UPS

Aims to Be the

Traffic Manager for Corporate America ”

—Headline/BW/2004

EXCELLENCE.

NECESSITY.

OPPORTUNITY.

EXCELLENCE.

SOLVE IT.

NO OPTION.

PSF. (PSF++)

“ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of irrelevance —disintermediation is just another way of saying that …

you’ve become irrelevant to your customers.”

—John Battelle/Point/Advertising Age/07.05

Chicago: HRMAC

“support function” / “cost center”/ “overhead”

or …

Are you …

“

Rock Stars of the Age of Talent”

Department Head to …

Managing Partner, IS Inc.

[HR, R&D, etc.]

Core Mechanism : “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )

Are you the …

“Principal Engine of Value Added”

*E.g.: Your R&D budget as robust as the New Products team?

Up, Up, Up, Up

the Value-added Ladder.

The Value-added Ladder/ Stuff ‘n’ Things

Goods Raw Materials

The Value-added Ladder/Stuff & Transactions

Services

Goods Raw Materials

The Value-added Ladder/ Opportunity-seeking

Gamechanging Solutions

Services Goods Raw Materials

EXCELLENCE. EXPERIENCE IT.

“

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

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’

And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.”

Nancy Orsolini, District Manager

The Value-added Ladder/ Memorable Connection

Spellbinding Experiences

Gamechanging Solutions Services Goods Raw Materials

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

C O* *Chief e X perience Officer

$415/SqFt/Wal*Mart $798/SqFt/Whole Foods

Summary:

WallopWal*Mart16*

*Or: Why it’s so absurdly easy to beat a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16 * Niche-aimed.

Wal*Mart.) (Never, ever “all things for all people,” a “mini * Never attack the monsters head on!

(Instead steal niche business and lukewarm customers.) * “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, Vendors.

ON EMOTION/CONNECTION!!) (BEAT THE BIGGIES

The Small*Mart Revolution: How Local Businesses Are Beating Local Competition —Michael Shuman

EXCELLENCE. DREAM IT.

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.

convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions We

The Value-added Ladder/Emotion

Dreams Come True

Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

C *Chief Dream Merchant

Big Blue

EXCELLENCE. LOVE IT.

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

Lovemark

Dreams Come True Spellbinding Experiences Gamechanging Solutions

Services Goods Raw Materials

Ladder2006: 4 of 7!

Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions

Services Goods Raw Materials

EXCELLENCE. SOUL.

DESIGN.

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.

Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga

“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 of design.

Design is the fundamental soul of a man-made creation.” —Steve Jobs

Kevin Roberts:

Lovemarks

!

C O * *Chief

Design

Officer

EXCELLENCE.

NEW VALUE EQUATION.

NEW “C-levels”.

C O* *Chief

Revenue

Officer

C O* *Chief e X perience Officer

C O*

*Chief Festivals Officer

C O* *Chief

Conversations

Officer

C

*Chief Portal Impresario

C *Chief Dream Merchant

C O*

*Chief

Lovemar

k Officer

C O*

*Chief

Seduction

Officer

C O*

*Chief

Storytelling

Officer

C O * *Chief

Design

Officer

C O*

*Chief

freaks acquisition

Officer

C O*

*Chief

quest-meister

C O* *Chief

Thrills

Officer

C *Chief

WOW

Officer O*

C O* *Chief

!

Officer

EXCELLENCE. EVERYWHERE.

New Zealand Spain Portugal Italy Ireland Singapore Taiwan Thailand Malaysia SINGAPORE Philippines UAE Oman Chile Romania

Better By Design: A National Strategy

NZ =

Design Excellence

EXCELLENCE.

CENTURY 21.

EMPIRES OF THE MIND.

RICHARD FLORIDA.

JUAN ENRIQUEZ.

“Human creativity is the ultimate economic resource.”

—Richard Florida, The Rise of the Creative Class

“THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND

… AND WHO IGNORE THE TEMPTATION OF —OR DO NOT HAVE THE OPTION OF —EXPLOITING NATURAL RESOURCES.” Source: Juan Enriquez/ As the Future Catches You

Creativity Index: The 3 T’s T echnology (HT Index/firms & $$$, Innovation Index/patent growth) T alent (% with bachelors degrees+) T olerance (Melting Pot Index/foreigners, Bohemian Index/artists et al., Gay Index/rel. #s) Source: Richard Florida, The Rise of the Creative Class

U.S. Historical Strength: Invest in Creativity

*Foster new industries *Free & open society *Investment higher ed, R & D, culture *Immigrants

Source: Richard Florida, The Rise of the Creative Class

Models Of Economic Development * Firm-driven (attract firms) * Social Capital (trust & community-connectedness) * Human Capital (# educated people) * Creative Capital (Florida) Source: Richard Florida, The Rise of the Creative Class

CI/Top10 Metro*:

Austin, SF, Seattle, Boston, Raleigh Durham, Portland, Minneapolis, Washington Baltimore, Sacramento, Denver

CI/Bottom10: Detroit, Norfolk, Cleveland, Milwaukee, Grand Rapids, Memphis, Jacksonville, Greensboro, New Orleans, Buffalo, Louisville *> 1M/49 total Source: Richard Florida, The Rise of the Creative Class

“The extraordinary Tech Revolution … Is fed by a very few ZIP codes Generating New Empires … (and new Ghettoes).” … Source: Juan Enriquez/ As the Future Catches You

“The global talent pool and the high-end, high margin creative industries that used to be the sole province of the U.S., and a critical source of its prosperity, have begun to disperse around the globe. A host of countries — Ireland, Finland, Canada, Australia, New Zealand, among them —are investing in higher education, cultivating creative people, and churning out stellar products, from Nokia phones to the Lord of the Rings movies.. Many of these countries have learned from past U.S. success and are shoring up efforts to attract foreign talent —including Americans. … The United States may well be the Goliath of the twentieth century global economy, but it will take just half a dozen twenty-first-century Davids to begin to wear it down.

To stay innovative, America must continue to attract the world’s sharpest minds. And to do that, it needs to invest in the further development of its creative sector. Because wherever creativity goes —and, by extension, wherever talent goes— innovation and economic growth are sure to follow .”

—“America’s Looming Creativity Crisis”/Richard Florida/ HBR /10.04

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

“The Creative Age is a wide open game.”

—Richard Florida, The Rise of the Creative Class

EXCELLENCE. INNOVATE. OR. DIE.

“A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete.

Only the constant pursuit of innovation can ensure long-term success.” —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

“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 myself?’ The answer seems obvious:

Buy a very large one and just wait.”

—Paul Ormerod, Why Most Things Fail:

Evolution, Extinction and Economics

Sluggish + Sluggish + More Sluggish Obese + Obese + Unimaginative + + More More Obese More Unimaginative + + Even Even More Even More Unimaginative =

NISSAN + RENAULT + GM

= Innovative Challenger for Toyota????

??????????????

Crappy Management (GM) + Arrogant-Overstretched Management (Carlos G) =

Great Management

More than $$$$ #1

R&D spending, last 25 years?

“I don’t believe in economies of scale.

You don’t get better by being bigger. You get worse.”

—Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

Scale?

“Microsoft’s Struggle With Scale” —Headline, FT, 09.2005

“Troubling Exits at Microsoft” —Cover Story, BW, 09.2005

“ Too Big to Move Fast?” —Headline, BW, 09.2005

Wal*Mart + Home Depot + Walt Disney + Intel + Microsoft + Pfizer = Flat Source: “Blue Chip Blues”, Cover, BW, 0417.06

“Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes money, but I’m not sure we’re actually innovating.

… Our challenge is to take nanotechnology into the future, to do personalized medicine …” —Jeff Immelt/2005

What “We” Know “For Sure” About Innovation Big mergers [by & large] don’t work

Scale is over-rated

Strategic planning is the last refuge of scoundrels

Focus groups are counter-productive

“Built to last” is a chimera (stupid)

Success kills

“Forgetting” is impossible

Re-imagine is a charming idea

“Orderly innovation process” is an oxymoronic phrase (= Believed only by morons with ox-like brains)

“Tipping points” are easy to identify … long after they will do you any good

“Facts” aren’t

All information making it to the top is filtered to the point of danger and hilarity

“Success stories” are the illusions of egomaniacs (and “gurus”)

If you believe the memoirs of CEOs you should be institutionalized

“Herd behavior” (XYZ is “hot”) is ubiquitous … and amusing

“Top teams” are “Dittoheads”

CEOs have little effect on performance

“Expert” prediction is rarely better than rolling the dice

“Recently I asked three corporate executives what decisions they had made in the last year that would not have been made were it not for their corporate plans. All had difficulty identifying one such decision. Since all of the plans are marked ‘secret’ or ‘confidential,’ I asked them how their competitors might benefit from possession of their plans. Each answered with embarrassment that their competitors would not benefit.”

—Russell Ackoff (from Henry Mintzberg, The Rise and Fall of Strategic Planning )

“ ‘Good management’ was the most powerful reason [leading firms] failed to stay atop their industries.

Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.” —Clayton Christensen, The Innovator’s Dilemma

Inno64: Innovation Strategies & Tactics

Parallel universe Bell curves2016 in 2006 Non-industry benchmarking Everything = Portfolio V.C.s all!

Weird alliances Opposite”) Weird Boards!!!

/Exec Ed v res MBA End run regnant powers/JKC Find done deals-practicing mavericks/Stone-ReGo Hot language/Wow-Astonish me-Insanely great immortal-Make something great Lead customers/PW-Embraer Lead suppliers /Top decile R&D Mottos/Paul Arden (“Whatever You Think Think the Hire freaks/Enough weird people?

InnoTacs

We become who we hang out with!

Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners Competitors Customers Product Portfolio IS/IT Projects HQ Location Lunch Mates Language (#, Quality) Innovation Alliance Partners (who we “benchmark” against) Strategic Initiatives (LineEx v. Leap) Board

“

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

try it

“Experiment fearlessly”

Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

“Do it. Fix it. Try it.”

Tom Peters/Business Week/07.1978 (Principal #1/first anticipation of “Excellence”)

tolerate [encourage?] failure

“Fail . Forward. Fast.”

High Tech CEO, Pennsylvania

“Fail faster. Succeed Sooner.”

David Kelley/IDEO

Sam’s Secret

#1!

“Reward

excellent failures.

Punish

mediocre successes.”

Phil Daniels, Sydney exec

raison d’etre

“[Immelt] is now identifying technologies with which GE will …

systematically set out to build entirely new industries” — Strategy+Business , Fall 2005

EXCELLENCE. INNOVATION.

REVOLUTION.

ORGANIZATION.

Excellence: The SE22:

“Origins of Sustainable Entrepreneurship”

SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, 8. Microsoft, CitiGroup, PepsiCo) “Culturally” as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)

SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizing —tireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners — especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Don’t overdo “pursuit of synergy” how it “fits the business model.” (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … don’t obsess on (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/“No limits” approach to retaining top talent (Virgin, GE, PepsiCo )

SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from 19. the get-go to the grave (GE, New York Yankees, PepsiCo) Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

“ORGANIZATION” = STRATEGY: THE GUERRILLA ADVANTAGE Tom Peters/04August2006

Small units … agile … lethal … invisible … guerrilla … network warfare … distributed … dispersed … mobile .. Flat [hierarchy] … improvisational … etc.

“Crazy Times Call for Crazy Organizations”

—Subtitle, The Tom Peters Seminar (1993)

EXCELLENCE. 4/40.

De-cent ral-iz a-tion!

Ex-e cu-tion!

Ac-count a-bil-ity!

“GE has set a standard of candor. … There is no puffery. … place.” There isn’t an ounce of denial in the —Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

6:15A.M.

????????

Work Hard > Work Smart

DECENTRALIZATION.

EXECUTION.

ACCOUTABILITY.

6 :15A.M.

EXCELLENCE. ACTION.

ROOTS.

GRANT

“The only way to whip an army is to go out and fight it.”

—Grant Source: John Mosier, Grant

“One of my superstitions had always been when I started to go anywhere or to do anything,

not to turn back

, or stop, until the thing intended was accomplished.”

—Grant

NELSON

On NELSON:

“[other] admirals more frightened of losing than anxious to win”

BOYD

He who has the quickest “O.O.D.A. Loops”* wins!

*Observe. Orient. Decide. Act. /Col. John Boyd

BOSSIDY

“

Execution is the job business leader .” of the

—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

PEROT

READY.

FIRE!

AIM.

Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)

MASTERS

“ 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

HERB

“We have a ‘strategic plan.’ It’s called doing things.”

— Herb Kelleher

TOM & BOB

In Search of Excellence/1982/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”

“ This is so simple it sounds stupid, but it is amazing how few oil people really understand that

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.”

you

Source: The Hunters, by John Masters, Canadian O & G wildcatter

EXCELLENCE. BEDROCK.

TALENT.

Brand = Talent.

“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 2 years.”

—Ed Michaels, War for Talent

DD $21M

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. Second: Putting HR on a par with finance and marketing.

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

Organizing Genius / Warren Bennis and Patricia Ward Biederman “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 .”

Leadership’s Mt Everest/Mt Excellence “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

C O*

*Chief

quest-meister

“We are a ‘Life Success’ Company.”

Dave Liniger, founder, RE/MAX

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

New Work SurvivalKit.2006

1. Mastery!

2. (Best/Absurdly Good at Something!) “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!) 3. A “USP”/Unique Selling Proposition (R.POV8: Remarkable Point of 4. View … captured in 8 or less words) Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty) 5. Entrepreneurial Instinct (A sleepless … Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of Monster Project) 6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from 8. 9. Chief Strategist to Chief Toilet Scrubber) Sense of Humor (A willingness to Screw Up & Move On) Comfortable with Your Skin (Bring “interesting you” to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your 11. Web site? Do you Blog?) Embrace “Marketing” 12. Passion for Renewal (Your own CLO/Chief Learning Officer) 13. Execution Excellence!

(Your own CSO/Chief Storytelling Officer) (Show up on time! Leave last!)

Distinct

… … or

Extinct

“

It’s always showtime.”

—David D’Alessandro, Career Warfare

EXCELLENCE AWOL: THE SCHOOLS FIASCO

“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 grade in art at such a young age?

His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands.

FIRST GRADE

: En mass the children leapt from their seats, arms waving. Every child was an artist.

SECOND GRADE

: About half the kids raised their hands, shoulder high, no higher. The hands were still.

THIRD GRADE

: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached

SIXTH GRADE

, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is: Every school I visited was participating in the systematic suppression of creative genius .”

Source: Gordon MacKenzie, Orbiting the Giant Hairball

Ye gads:

“ Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation.

‘ It seems that school-related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.”

—Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

15 “Leading” Biz Schools Design /Core:

0

Design/Elective: 1 Creativity /Core:

0

Creativity/Elective: 4 Innovation /Core:

0

Innovation/Elective: 6 Source: DMI/Summer 2002/Research by Thomas Lockwood

M.I.A

.*: Sell.

Talk.

(Life = Sales.) Talent.

(Present.) Do.

(Recruit-Develop-Retain.) Management.

Listen.

(Interview.) (Execution-Implementation.) Project (Create. Solicit support. Execution. Adoption Client “Culture Change.”) Product.

(USMA, etc.) Change.

(“It.”) Innovation.

Creativity. “Buzz-building.” Politics.) E.Q.

(Connect.) (Lasting impact.) cultural Effectiveness.) (Brand You life-lifestyle.) (Design. Leadership.

“Culture” Diversity.

(Cross Career Creation.

Wellness.

(Life.) *B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

New Economy Biz Degree Programs

MBA

(Master of Business Administration ) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/M w GTD w/o C (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm )

EXCELLENCE. LEADING.

EXCELLENCE. BEDROCK.

PURPOSE.

“I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.”

— Richard Branson

“ Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is:

‘Who do we intend to be?’

Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

“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

EXCELLENCE.

ENTHUSIASM.

ENERGY. PASSION.

DETERMINATION.

“

Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

BLOOD-Y MIND-ED NESS

“

It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.”

—WSC

Enthusiasm Energy Exuberance Voracious Curiosity Irritability/Dis-satisfaction Relentlessness Self-reliance “Closer” (Execution) excellence

EXCELLENCE. AGILITY.

“The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist

EXCELLENCE. SHOWING UP.

MBWA

“

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

EXCELLENCE. MESSAGE CLARITY.

Message clarity

MBWA + = CALENDAR + Language ENERGY + + Perceived INTENSITY/ENTHUSIASM/ Concrete-Visible support losses” + + Prototypes Tolerance for Failure/“Good Promotions + + Tempo + Resilience + Celebration + Perceived RELENTLESSNESS Training +

Leadership

23

Leadership23/ML 1. Enthusiasm. Energy. Exuberance.

2. Action. Execution.

3. Tempo. Metabolism.

4. Relentless.

5. Master of Plan B.

6. Accountability.

7. Meritocracy.

8. Leaders “do” people. Mentor. (“Success creation business.”) 9. Women. Diversity.

10. Integrity. Credibility. Humanity. Grace.

11. Realism.

12. Cause. Adventures. Quests.

Leadership23/ML 13. Legacy.

14. Best story wins.

15. On the edge. (“Wildest chimera of a moonstruck mind.”) 16. “Reward excellent failures. Punish mediocre successes.” 17. Different > Better. (“Only ones who do what we do.”) 18. MBWA. Customer MBWA.

19. Laughs.

20. Repot. Curiosity. Why?

21. You = Calendar. “To Don’t.” Two.

22. Excellence. Always.

23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)

“AS LEADERS, WOMEN RULE:

New Studies find that female managers outshine their male counterparts in almost every measure” Title , Special Report/ BusinessWeek

10 UNASSAILABLE REASONS WOMEN RULE Women Women Women Women make [all] the financial decisions.

control [all] the wealth.

[substantially] outlive men.

start most of the new businesses.

Women’s Women work force participation rates have soared worldwide.

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 economic point of men?

“Forget China, by India and the Internet: Economic Growth Is Driven Women .” —Headline,

Economist

, April 15, 2006, Leader, page 14

EXCELLENCE. STRETCH.

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

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!

EXCELLENCE. OFFENSE.

Nelson’s secret:

“[Other] admirals more frightened of losing than anxious to win”

You only find oil if you drill wells

.

—T he Hunters, by John Masters, Canadian O & G wildcatter

EX

CELLE ALW

AYS

.