Transcript Tom Peters’ EXCELLENCE. ALWAYS. Istanbul/17October2006 Slides* at … tompeters.com *also “long” The Irreducible209+/ Words+/ The Sales122/ 60TIBs/ Tom-A-to, Tom-ah-to.

Tom Peters’
EXCELLENCE.
ALWAYS.
Istanbul/17October2006
Slides* at …
tompeters.com
*also “long”
The Irreducible209+/
Words+/
The Sales122/
60TIBs/
Tom-A-to, Tom-ah-to
EXCELLENCE.
ALL YOU NEED TO KNOW.
MBWA
MBWA, Grameen Style!
“Conventional banks ask their clients to come
to their office. It’s a terrifying place for the poor
and illiterate. … The entire Grameen Bank
system runs on the principle that people
should not come to the bank, the bank
should go to the people. … If any staff
member is seen in the office, it should be taken
as a violation of the rules of the Grameen Bank.
… It is essential that [those setting up a new
village Branch] have no office and no place to
stay. The reason is to make us as different as
possible from government officials.”
Source: Muhammad Yunus, Banker to the Poor
“hard” is “soft.”
“soft” is “Hard.”
EXCELLENCE.
THE SETTING.
5 /42
(Years)
(New Airports)
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/2003
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—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
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.
S&P 500 from 1957 to 1997:
’97;
74 members of the Class of ’57 were alive in
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
“It is generally much easier to
organization
kill an
than change it
substantially.”
—Kevin Kelly, Out of Control
C.E.O.
to
C.D.O.
EXCELLENCE.
STARTERS.
BASICS.
K.I.S.S.
Franchise Lost!
TP:
“How many of you really
[600]
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
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
BASICS
K.I.S.S.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentlessness.
“Success seems to be
largely a matter of
hanging on after
others have let go.”
—William Feather, author* (*c.f. Woody Allen: “90% of
success is showing up.”)
People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentlessness.
Senility.
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
BASICS
K.I.S.S.
MBA-On-A-Single-Slide
P=R-C
“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
EXCELLENCE.
THE WORD.
Synonyms
Purity
Transcendence
Virtue
Elegance
Majesty
Antonyms
Mediocrity
EXCELLENCE.
GAMECHANGER.
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”
EXCELLENCE.
ASPIRATION.
YOU & ME.
“The First step in a
‘dramatic’
‘organizational change
program’ is obvious—
dramatic personal
change!”
—RG
EXCELLENCE.
INNOVATE.
OR. DIE.
“A focus on cost-cutting and efficiency has
helped many organizations weather the
downturn, but this approach will ultimately
Only the
constant pursuit of
innovation can ensure
long-term success.”
render them obsolete.
—Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia
“I don’t believe in economies of
You don’t get
better by being
bigger. You get
worse.”
scale.
—Dick Kovacevich/Wells Fargo
“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.” —Mark Sirower, The Synergy Trap
answered:
EVERYTHING YOU
THOUGHT YOU KNEW
ABOUT INNOVATION
IS WRONG
The Mess Is
the
Message!
Period!
The Mess Is the Message! Period!
An Economic Interpretation of the Constitution
of the United States —Charles Beard (1913)
The Box: How the Shipping Container Made the World
Smaller and the World Economy Bigger —Marc Levinson
Tube: The Invention of Television —David & Marshall Fisher
Empires of Light: Edison, Tesla, Westinghouse,
and the Race to Electrify the World —Jill Jonnes
The Soul of a New Machine —Tracy Kidder
Rosalind Franklin: The Dark Lady of DNA —Brenda Maddox
The Blitzkrieg Myth —John Mosier
Get mad. Do
something
about it. Now.
Innovation
Tactics
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
Find ’em!
“Some people look for
things that went wrong
and try to fix them. I
look for things that
went right, and try to
build off them.”
—Bob Stone (Mr ReGo)
Stories!
Heroes!
send them on
an adventure!
“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
build a
Parallel
universe!
“SkunkWorks”/ “ParallelUniverse”
“the
solution”
Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
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
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“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
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
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
“Fail . Forward.
Fast.”
High Tech CEO, Pennsylvania
“Fail faster.
Succeed Sooner.”
David Kelley/IDEO
Sam’s
Secret
#1!
Speed/
Tempo
“We don’t sell
insurance anymore.
We sell
speed.”
Peter Lewis, Progressive
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
go for it
“[Immelt] is now identifying
technologies with which GE
systematically
set out to build
entirely new
industries”
will …
—Strategy+Business, Fall 2005
“Beware of the tyranny
of making Small Changes
to Small Things. Rather,
make Big Changes to
Big Things.”
—Roger Enrico, former Chairman, PepsiCo
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
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.
NECESSITY.
OPPORTUNITY.
“ ‘Outsourcing’ is over-emphasized. Those who fear
outsourcing should in fact be afraid of
irrelevance;‘outsourcing’ is just another way of
you’ve become
irrelevant to your
customers.”
saying that …
—John Battelle/Point/Advertising Age/07.05
“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)
EXCELLENCE.
ATTITUDE.
TRANSFORMATION.
PSF.
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
EXCELLENCE.
VALUE-ADDED LADDER II.
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
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
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
#1.
Jim’s Group
Jim Penman/“Empire Builders”/MT /
Jan/Feb 2006/Australia
Jim’s Group: Jim Penman.*
1984: Jim’s Mowing. 2006: Jim’s Group.
2,600 franchisees (Australia, NZ, UK).
Cleaning. Dog washing. Handyman.
Fencing. Paving. Pool care. Etc.
“People first.” Private. Small staff. Franchisees
can leave at will. 0-1 complaint per year is
norm; cut bad ones quickly.
*Ph.D. cross-cultural anthropology; mowing on the side
Source: MT/Management Today (Australia), Jan-Feb 2006
Small Giants:
Companies That
Choose To Be
Great Instead Of
Big
—by Bo Burlingham
EXCELLENCE.
VALUE-ADDED LADDER III.
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. We
convert ‘needs’ into ‘dreams.’
Sales are the inevitable
result.”
— Judy George, Domain Home Fashions
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
“Dreams Come
True”:
IBM
The (NEW) Value-added Ladder
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
EXCELLENCE.
DESIGN.
SYSTEMS.
K.I.S.S.
450/8
"A business unit strategy
should be less than fifty pages
long and should be easy to
understand. Its essence should
be describable in one page ... If
you can't describe your strategy
in twenty minutes, simply and
in plain language, you haven't
got a plan.” —Larry Bossidy
EXCELLENCE.
NEW MARKETS.
ENORMOUS.
OPPORTUNITIES.
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
WOMEN.
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
Selling to men:
The
TRANSACTION Model
Selling to Women:
The
RELATIONAL Model
Source: Selling to Men, Selling to Women, Jeffery Tobias Halter
WOMEN.
DOMINATE.
ECONOMIC.
GROWTH.
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
EXCELLENCE.
OPPORTUNITY.
ENORMOUS.
RAPIDLY AGING
POPULATION.
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
“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
EXCELLENCE.
4/40.
De-central-iza-tion!
“If if feels
painful and
scary—that’s
real delegation”
—Caspian Woods, small biz owner
Ex-ecu-tion!
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
Ac-counta-bil-ity!
“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)
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
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
EMPHASIZE
THE “SOFT
SKILLS.”
PUT HR AT THE
HEAD OF THE HEAD
TABLE. BEST
PEOPLE. NOBLEST
MISSION.
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:
SO YOU’RE A
“PEOPLE
PERSON”?
PROVE IT.
‘do’
“Leaders
people.
Period.”
—Anon.
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.
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! (Best/Absurdly Good at Something!)
2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)
3. A “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession
(From vertical/hierarchy/“suck up” loyalty to
horizontal/“colleague”/“mate” loyalty)
5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity!
6.CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)
7. Master of Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber)
8. Sense of Humor (A willingness to Screw Up & Move On)
9. Comfortable with Your Skin (Bring “interesting you” to work!)
10. Intense Appetite for Technology (E.g.: How Cool-Active is your
Web site? Do you Blog?)
11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)
12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer)
13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)
Distinct
…
… or
Extinct
EXCELLENCE.
BEDROCK.
LEADERSHIP.
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
“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)
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first book?”
“Close your eyes and imagine me
immediately doing something about
what you’ve just said. What would it
be?” “Do you feel you have an
obligation to ‘Make the world a
better place’?”
EXCELLENCE.
ENTHUSIASM.
ENERGY.
PASSION.
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
EXCELLENCE.
SHOWING UP.
“You must
be
the
change you wish to
see in the world.”
Gandhi
EXCELLENCE.
AIM FOR THE
STARS.
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!
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
EXCELLENCE.
THE LEADERSHIP23.
Leadership23/ML
1.
2.
3.
4.
5.
6.
7.
8.
Enthusiasm. Energy. Exuberance.
Action. Execution.
Tempo. Metabolism.
Relentless.
Master of Plan B.
Accountability.
Meritocracy.
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.”)
EXCELLENCE.
DREAM.
DO.
“No leader sets out to
be a leader, but
rather to express
him- or herself
freely and fully.”
—Warren Bennis, On Becoming a Leader
“Everyone lives
by
selling
something.”
—Robert Louis Stevenson
You only
find oil if
you drill
wells.
—The Hunters, by John Masters,
Canadian O & G wildcatter
EXCELLE
ALWAYS