Tom Peters’

Health(care) Excellence: The Relentless Pursuit of Dramatic Difference !

Part II/Version Two Leaders in Healthcare/Dubai/22January2006

Part I: Healthcare “Manifesto” Part II: Getting It Done!

Slides at …

tompeters.com

Period

!

“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 the strongest of the species that survives, nor the most intelligent, but to change.” the one most responsive

—Charles Darwin

“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

Franchise Lost!

TP:

“

How many of you

crave

Chevy?”

NYC/IIR/061205 [600]

really a new

This is not a “mature category.”

This is an

“ un

distinguished

category.”

“It” Can Be Done

!

“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)

“Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasn’t turned his back on the old ways.

But in his GE, the new imperatives are risk-taking, sophisticated marketing and, above all, innovation .”

—BW/032805

“ Value innovation

is about making the competition irrelevant by creating uncontested market space. We argue that beating the competition within the confines of the existing industry is not the way to create profitable growth.” —Chan Kim & Renée Mauborgne (INSEAD), from

Blue Ocean Strategy

(The Times/London)

“It” Can Be Done

!

$415/SqFt $798/SqFt

2%/ 50%

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

7X.

730A 800P.

F12A

.*

*

’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

4

days/week

Just Say “No” to “Better”

!

GH (+TP):

“Get better”

vs

“Get different”

Great Companies …

SET THE AGENDA.

(Period.)

Up, Up,

Up,

Up, Up

the Value-added Ladder.

Solve It

!

And the “M” Stands for … ?

Gerstner’s IBM:

“Systems Integrator of choice.” (BW)

IBM Global Services:

$55B

“Big Brown’s New Bag: UPS

Aims to Be the

Traffic Manager for Corporate America ”

—Headline/BW/07.19.2004

“Instant Infrastructure: GE Becomes a General Store for Developing Countries” —headline/ NYT/07.16.05

Experience it

!

“

Experiences

are as distinct from services as services are from goods.”

Joseph Pine & James Gilmore,

The Experience Economy: Work Is Theatre & Every Business a Stage

“Club Med

is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ” Source: Jean-Marie Dru, Disruption

The “Experience Ladder”

Experiences

Services Goods Raw Materials

The “Experience Ladder”

E xperiences

Gamechanging Solutions

Services Goods Raw Materials

Dream it

!

DREAM:

“A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.”

—Gian Luigi Longinotti-Buitoni

Experience Ladder

Dreams Come True

Awesome Experiences Gamechanging Solutions

Services Goods Raw Materials

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer.

We stand facing the fifth kind of society: the Dream Society.

… Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/

The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

Lead It …Loud

!

Create a Cause

!

G.H.:

“Create a ‘cause,’ not a ‘business.’ ”

Think Big

!

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 Things.”

Big

—Roger Enrico, former Chairman, PepsiCo

Think Big

!

GH (+TP):

“Get better”

vs

“Get different”

“Insanely Great”

Find ’em

!

“The” Secret:

Jack didn’t have a “vision”!

“Leaders ‘

do’

people.”

—Anon.

PARC’s Bob Taylor:

“Connoisseur of Talent”

“The leaders of Great Groups

love talent

and know where to find it. They

revel in the talent of others

.” Warren Bennis & Patricia Ward Biederman,

Organizing Genius

Did We Say “Talent Matters”?

“The top software developers are more productive than average software developers not by a factor of 10X or 100X, but or even 1,000X,

10,000X

.”

—Nathan Myhrvold, former Chief Scientist, Microsoft

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

Make It a Grand Adventure

!

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 .”

Yes!!!!!!!!!!!!!!!!!

“free to do his or her absolute best” … “allow its members to discover their greatness.”

Quests!

Make “Action” a Religion

!

“ Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done .”

– Peter Drucker

“Execution is the job leader.” of the business

—Larry Bossidy & Ram Charan/

Execution: The Discipline of Getting Things Done

“I saw that leaders placed too much emphasis on what some call high level strategy, on intellectualizing and philosophizing, and not enough on implementation.

come of it.” People would agree on a project or initiative, and then nothing would

—Larry Bossidy & Ram Charan/

Execution: The Discipline of Getting Things Done

“Execution is a process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” systematic

—Larry Bossidy & Ram Charan/

Execution: The Discipline of Getting Things Done

The Leader’s Seven Essential Behaviors *Know your people and your business *Insist on realism *Set clear goals and priorities *Follow through *Reward the doers *Expand people’s capabilities *Know yourself Source: Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

“Realism is the heart of execution.”

—Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

“The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb people.

But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.”

—Larry Bossidy (Larry Bossidy & Ram Charan/Execution:

The Discipline of Getting Things Done)

A man approached JP Morgan , held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.” “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope.

JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent.

And paid him the agreed upon $25,000 …

1. Every morning, write a list of the things that need to be done that day.

2.

Do them.

Source: Hugh MacLeod/tompeters.com/NPR

Make Accountability Your Creed!

35 years in the baking …

Ac-count a-bil-ity!!

De-cent ral-iz a-tion!!

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”

Excellence2005: The Bedrock Baker’s Dozen 1. A Bias For Action Is Job One!

(Construct a Discipline/Culture of EXECUTION!) 2. DECENTRALIZATION! ACCOUNTABILITY!

(Tom’s “Top Two”, 1965-2005.) 3. Fail. Forward. Fast.

(“Reward Excellent Failures, Punish Mediocre Successes.”) 4. “Metabolic Management” Matters!

( Hustle! Adapt! EAT CHANGE! Win the “O.O.D.A. Loop” War—Confuse Your Competitors!) 5. INNOVATE or Die.

(“Game-changers” or Bust! Lead the Customer! Just Shout “NO” to Immitation!) 6. A Damn Good Product.

(Pursue “Dramatic Difference.”) 7. A Damn Cool Product.

(Design Rules!) 8. Ride the Value Added Curve to the Sky!

(Sell “GamechangerSolutions”; Provide “Scintillating Experiences”; Become a “Dream Merchant”; Strive to Be a “Lovemark.”) 9. Relentlessly Pursue the “Big Two” Markets.

(WOMEN Buy Everything BOOMERS & GEEZERS Have All the Money!) 10. Best “Talent”/Roster Wins! ( HR Rules! Everyone a Leader! Women Lead Best!

“Weird” Matters Most! A Workplace to Brag About! Educate for Creativity!) 11. Wanted/Demanded: Radical Technology Strategies!

(“Incrementalism” Is for Wimps!) 12. Hard Is Soft! Soft Is Hard!

Good Citizenship.) (People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST!

13. Accept No Less Than EXCELLENCE!

Vaults Us Out of Bed in the Morning) (Excellence, Pursuit thereof, Is the #1 Thing That

Live Your Story

!

“You must world.” be the change you wish to see in the

Gandhi

MBWA

You = Your Calendar

“ The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!”

—RG

Eat Change For Breakfast!

“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

Keep It Simple

!

Sir Richard’s Rules:

Follow your passions.

Keep it simple.

Get the best people to help you.

Re-create yourself.

Play.

Source: Fortune on Branson/10.03

Dispense Enthusiasm

!

“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

“Most important, he

upped the energy level

Motorola.” —Fortune on Ed Zander/08.05

at

Radiate Passion

!

“

Charles Handy on the “Alchemists”:

Passion was what drove these people, passion for their product or their cause.

If you care enough, you will find out what you need to know. Or you will experiment and not worry if the experiment goes wrong.

Passion

as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly,

passion

is not a word often heard in the elephant organizations, nor in schools, where it can seem disruptive.”

Accept Nothing Less Than Transformation!

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

Avoid … Moderation!

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.”

— Jack Welch