Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November 2006 Thank You! FLOWER POWER “Courtesies of a small and trivial character are the ones which strike deepest in.
Download ReportTranscript Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November 2006 Thank You! FLOWER POWER “Courtesies of a small and trivial character are the ones which strike deepest in.
Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November 2006 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 … THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* ** *Watergate, M Stewart, BR **And: PERCEPTION IS ALL THERE IS! Relationships 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. (of all varieties) : “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 Wash Your Hands .” and —Mark Pettus, M.D., The Savvy Patient “The most important thing you can do to keep from getting sick is to hands.” wash your —CDC/National Center for Infectious Diseases Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November 2006 Slides* at … tompeters.com *also see “LONG” version 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 “The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’*” *quote from the diary of a Confederate soldier EXCELLENCE. ALL . YOU. NEED. TO. KNOW. “A man without a smiling face must not open a shop.” —Chinese Proverb EXCELLENCE. ALL. YOU. NEED. TO. KNOW. ANYWHERE. ANY MARKET. ANY TIME. #1/100 “Best Companies to Work for”/2005 7X. 730A800P. F12A.* *’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a. Jim’s Group EXCELLENCE. SIBERIA. “Why in the world did you go to Siberia?” Raging Success = P-SQUARED. C. E-CUBED. People. Product. Customers. 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” 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. More Than $$$$ R&D spending, last 25 years/USA? “I don’t believe in economies of You don’t get better by being bigger. You get worse.” scale. —Dick Kovacevich/Wells Fargo Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE “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 EXCELLENCE. INNOVATE. AXIOMATIC. The Mess Is the Message! Period! “We are in a brawl with no rules.” —Paul Allaire S.A.V. 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 “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 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” tolerate [encourage?] failure Sam’s Secret #1! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec Bonus: “long” version Think! vs. do! Tom peters/27 October 2006 re-imagine the “value added” equation Up, Up, Up, Up the Value-added Ladder. The [NEW] “Value-added Ladder” Gamechanging Solutions/ Implemented Customer success Services/Transactions Manufactured Goods/Things Extracted Raw Materials 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) UniCredit Group/ UniCredito Italiano* ** —3rd party measurement —Customer-initiated measurement —Primary $$$$ incentives —“Factories” —Primary Corporate Initiative —Etc *#13 **TP/#1 “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 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 The [NEW] “Value-added Ladder” dreams come true spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials Dream Merchant: IBM [totally] re-imagine the business around the two staggering “new” opportunities women “Forget China, India and the Internet: 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) 1. Women’s CONSUMER GOODS purchases. 2. Women’s COMMERCIAL GOODS purchases. 3. WOMEN ARE THE MARKET. Not an “initiative.” 4. Women-owned BUSINESSES (absolute #s, acceleration, relative growth). 5. Women’s “brand” of LEADERSHIP SKILLS. 6. women’s strengths match needs of the new “value-added ladder.” 7. Women’s DRAMATICALLY INCREASING-commanding WEALTH—absolute, relative. (Jobs. Longevity. Education. Entrepreneurial. Decline of BOYS. Retirement of MEN/Senior MEN.) 8. DEMOGRAPHIC TSUNAMI. WOMEN. Women as solo HEADs-OF-HOUSEHOLD. THE WOMaNBOOMER-GEEZER. LOoooNG-TERM PHENOMENON. Global phenomenon. 9. SPEED of “change.” mother of all “megatrends.” 1. Participation rate/2 of 3 new jobs, last 30 years. 2. Male workforce departures/SENIOR male workforce departures. 3. Shrinking pay gap/same jobs. 4. More senior positions. Greater decisionmaking/expenditure/org design authority. More line jobs. 5. Female solo head-of-household growing. 6. Longevity. 7. Education. 8. More effective money management. “Women are the majority market” —Fara Warner/The Power of the Purse “Idiot” is too kind a word. “That’s a very diverse* team.” —Patrick Cescau, CEO, Unilever** *1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.) **Approximately 85% products are purchased by … women. of Unilever’s “That’s a VERY diverse team.” —Patrick Cescau, CEO, Unilever* ** *1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.) **Approximately 85% of Unilever’s products are purchased by … women. “That’s a VERY man.” —Tom Peters sick Good Thinking, Guys! “Kodak Sharpens Digital Focus On Its Best Customers: Women” —Page 1 Headline/WSJ/0705 EXCELLENCE. FOUND. DUH. “To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/PepsiCo “Women are the majority market” —Fara Warner/The Power of the Purse The Perfect Answer Jill and Jack buy slacks in black… “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 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. “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 “Mostly Moms” “Women were either ignored in favor of focusing on men— generally considered the industry’s most frequent users and therefore its most important consumers—or they were cast in the role of moms who were simply conduits to their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom” “We simply had stopped being relevant to women.” —Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”) “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom” 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” “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 “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 U.S. firms owned or controlled by Women: 10.6 million (48% of all firms) Growth rate of Women-owned firms vs all firms: 3X Rate of jobs created by Women-owned firms vs all firms: 2X Ratio of total payroll of Women-owned firms vs total for Fortune500 firms: >1.0 Ratio of likelihood of Women-owned firms staying in business vs all firms: >1.0 Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all firms: 2X Source: 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 “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 “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 boys in the school For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006 system. Impact! Add It Up! Primary markets/Everything (“Men buy things that other men will buy for women. I buy things that women want.”— successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.) Greater global workforce participation rate (“bigger contributor to GDP growth than technology, China, India”—Economist) Higher wages (more seniority, promotions—even if not to CEO; greater pay equity—even if not equal) Business “decision makers” (more seniority, promotions—even if not to CEO) Women-owned businesses (answer to the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world) “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report/BusinessWeek Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch” 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? 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? … 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%) BoomerBucks! Boomer turns 50: every 7 seconds. 2009: majority of U.S. households headed by someone over 50. 20062016: 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 !!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America “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 Median Household Net Worth <35: $7K 35-44: $44K 45-54: $83K 55-64: $112K 65-69: $114K 70-74: $120K >74: $100K Source: U.S. Census 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing Boomers’-Geezers’-Women’s Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die The Copenhagen (Self) Pact re “This Topic”: *Early! *Loud! *Repetitive! *Aggressive! *Unfriendly!/rude!/ insulting! “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 !!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America We become who we spend time 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 “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 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 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 PUT HR AT THE HEAD OF THE HEAD TABLE. 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. 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. “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 “Most important, upped the energy level at he Motorola.” —Fortune on Ed Zander/08.05 “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 “Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author ‘do’ “Leaders people. Period.” —Anon. PURPOSE. PASSION. Presence. Personal. PERSISTENCE. PEOPLE. EXCELLE ALWAYS