Transcript Tom Peters’ EXCELLENCE. ALWAYS. ONO/Management Forum Madrid/30 November 2006 Slides* at … tompeters.com *also see LONG version.

Tom Peters’
EXCELLENCE.
ALWAYS.
ONO/Management Forum
Madrid/30 November 2006
Slides* at …
tompeters.com
*also see LONG version
EXCELLENCE.
ALL . YOU.
NEED. TO.
KNOW.
EXCELLENCE.
ANY MARKET.
ANYWHERE.
ANY TIME.
Jim’s
Group
EX-CELLENCE. NOT .
“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
Welcome to the “Club of Shattered Dreams”:
Of Korea’s
Top 100
7
companies in 1955, only
were
still on the list in 2004. The 1997
crisis “destroyed
half of Korea’s
30 largest conglomerates.”
Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)
S&P Stability Ratings*
1985
2006
Low Risk
41%
13%
Average Risk
24%
14%
High Risk 35%
*Likelihood of
73%
stable long-term earnings growth
Source: Fortune (2 October 2006)
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?)
EXCELLENCE.
SIBERIA.
“Why in the
world did
you go to
Siberia?”
Raging Success =
P-SQUARED.
C. E-CUBED.
People.
Product.
Clients.
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”
The older I
get the less
boring the
“basics”
become!
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.
“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
1
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:
EXCELLENCE.
INNOVATE.
TACTICS.
Try it. Try it. Try it
Try it. Try it. Try it
ry it. Try it. Try i
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
READY.
FIRE!
AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“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
tolerate
[encourage?]
failure
Sam’s
Secret
#1!
Speed/ Tempo/
is-it-Telecom
FedEx
Economy”
“the
—headline/New York Times/10.08.05
Anything/
Anywhere/
Anytime
“Any3”:
Wal*Mart (!)
& Katrina
Power Tools
For Power
Strategies
place big
bets
“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
measure
Innovation Index: How many
of your Top 5 Strategic
Initiatives/Key Projects
score 8 or higher [out of 10] on a
“Profound”/
“Amazing”/“Gamechanger” Scale?
re-imagine the
“value added”
equation
Up,
Up,
Up,
Up
the Value-added Ladder.
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW/2004
The [NEW] “Value-added Ladder”
Gamechanging Solutions/
Implemented Customer
culture change & success
Services/Transactions
Manufactured Goods/Things
Extracted Raw Materials/Stuff
Up,
Up,
Up,
Up
the Value-added Ladder.
“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
Up,
Up,
Up,
Up
the Value-added Ladder.
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 Merchants:
IBM
UPS
[totally] re-imagine
the business around
the two staggering
“new” opportunities
women
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline, Economist, April 15, 2006, Leader, page 14
“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
For a number of
observers, we have already
entered the age of ‘womenomics,’
the economy as thought out and
practiced by a woman.”
boys in the school system.
—Aude Zieseniss de Thuin, Financial Times, 10.03.2006
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?
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
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
!!!!!!!!!!!!!!!!!
“People turning 50
today have more
than half of their
adult life ahead of
them.”
—Bill Novelli, 50+: Igniting a Revolution
to Reinvent America
EXCELLENCE.
1966. 2006.
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.
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.
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.
< CAPEX
> People!
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)
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“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
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
EXCELLE
ALWAYS