Transcript EXCELLENCE. The Basics. Now More than ever. Tom Peters’

Tom Peters’
EXCELLENCE.
The Basics.
Now More than ever.
PCBC2008
27 June/George Moscone Center
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Note to Readers not involved with the PCBC2008* and the
California residential real estate industry:
Obviously, times are tough for these folks. (I was explicitly
asked to speak on “excellence in adverse circumstances.”)
And the tougher the times the more important the need for
a little humor and flippancy to accompany one’s otherwise
sober message.
Moreover, despite my residence in Vermont, I spent 35 adult
years in California, mostly in NCal, but also in SCal. My
fondness for our great state-republic is infinite—as is my
comfort among Californians. Hence there is an “insider”
character to the start of this presentation, and a tone that
comes from overwhelmingly feeling among friends—and
also, probably, some indecipherable shorthand.
The immediately following 4 slides were the basis for
almost all my remarks to PCBC2008 …
*Pacific Coast Builders Conference
Off The Top Observations, With Prejudice
**Angelo Mozilo is a big fat jerk.
**Ken Lewis is a fool.
**Where is A.P. Giannini when we need him?
**Barry Bonds was the best natural hitter ever.
**That which goes up also comes down. (That assertion
alone is worth the price of admission.)
**That which goes waaaaaay up also comes waaaaaay
down. (“It was in the Beginning and now and ever shall
be. Amen.”)
**IQs rise as markets go up. (Isn’t it amazing how smart
we all were 18 months ago?)
**Why have we done this s%^# over & over & over?
**Why will we do this s%^# again & again & again?
**The “madness of crowds” is the most profound
statement of truth ever.
**My Dear Old Dad’s preference for real estate over
stocks still suits his son.
**Dollar for dollar, landscaping is the premier source of
value added to residential property.
**Bigger is almost never better.
**Big mergers are stupid.
**Big mergers spring naturally from big egos.
**Carly Fiorina saved HP.
**Malcolm Gladwell gives good hair.
**I miss Bill Walsh.
**San Francisco is the greatest city in the world—and LA
ain’t all bad (neither is-are Oxnard-Port Hueneme).
**It doesn’t get any better than this—U.S. Grant, Abraham
Lincoln and John C. Fremont were born for moments like
this. There is no such thing as a good-great leader who
has not confronted, been battered by and stumbled
through-overcome a catastrophe. The Upside for the
gutsy and creative is as high as the downside is low.
**Jerry Rice is the greatest football player ever—and
Willie Mays is the best baseball player ever. (And
Sandy Koufax was okay too.)
**Women rule. And make (almost) all the res real estate
decisions.
**Decency must not be sacrificed in tough times.
**Decency is more important than ever in tough times.
**Painful decisions must be made—make them as
gracefully as possible; doing so is the best investment in
the long term possible. Your reputation will be shaped by
the long memory of how you behaved when the fan was
covered with yogurt.
**Tough decisions mostly affect other people’s families.
You must still make the tough decisions, but the minute
they cease to be agonizing, resign—you’re not worth
saving, you’ve become a mini-Mozilo.
**Character rules in adverse times.
**Now is when investment in relationships pays off—and
now is when you pay the full price of not having invested
in relationships when times were good and you didn’t
“need to be nice” to others.
**Keep good people—if it kills you.
**If your world is in relatively good order do not be tempted
to use this “opportunity” to “consolidate” by acquiring
questionable assets at firesale prices—you are not
good enough to turn cow pies into gold; only your ego
thinks you are, and your ego is as usual wrong.
**Smaller but really good is a better place to be. (So you’ll
be ready to fully participate in the next round of folly
when the next Moment of Madness arrives.)
**You will be remembered in the long haul for the quality of
you work, not the quantity of your work—the quantity part
is just your defective ego talking. (No one evaluates
Picasso, based on the number of paintings he churned
out.)
**Work out more and harder in bad times—get high or less
low on chemical cocktails generated by killer workouts.
**Take advantage of tough times to realize that in the long
haul you will be remembered for you humanity not your
net worth—think Tim Russert.
**If not Excellence, what?
Tom Peters’
EXCELLENCE.
The Basics.
Now More than ever.
PCBC2008
27 June/George Moscone Center
Slides at …
tompeters.com
“Allied commands depend
on mutual confidence
[and this confidence]
is gained, above all
through the development
of friendships.”
—General D.D. Eisenhower,
Armchair General* (05.08)
*“Perhaps his most outstanding ability [at West Point] was
the ease with which he made friends and earned the trust
of fellow cadets who came from widely varied backgrounds;
it was a quality that would pay great dividends during his
future coalition command
Give
good
tea!
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years
at Southwest Airlines (SWA’s pilots union took out a full-page
ad in USA Today thanking HK for all he had done; across the
way in Dallas American Airlines’ pilots were picketing the
Annual Meeting)
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“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 by 96%, against
the Tokyo stockmarket’s rise
of 13%.” —Economist, April 15
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
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?
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!*
*Not “like” and “dislike”
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
Message (?????):
cannot
Men
design for women’s
needs.
“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
You don’t
get better
by being
bigger. You
Dick Kovacevich:
#4 Japan
#3 USA
#2 China
#1 Germany
Reason!!!
Mittelstand
Basement
Systems
Inc.
*Basement Systems Inc.
*Larry Janesky
*Dry Basement Science
(115,000!)
*1990: $0; 2003: $13M;
2007:
$62,000,000
Focus: “A recent study by [Stanford]
Business School faculty shows that
producers whose offerings or
expertise are more clearly
associated with one or two product
categories have better sales
than those whose goods or
professional identity span multiple
categories. More focused producers throw off
subtle hints that they know their stuff, which is
not lost on customers. In short, says professor
Michael Hannan, ‘The jack of all trades is the
master of none governs consumer choices of
whose goodies to buy.’ ” —Stanford Business, 0208
General David Petraeus’ “White lines along the road”:
“Secure and serve the population.
Live among the people.
Promote reconciliation.
Move mounted, work dismounted;
situational awareness can only be
achieved by operating face-to-face,
not separated by ballistic glass.
Walk.*”
—David Petraeus, Men’s Journal (06.08)
* “I love that last one for its simplicity.” —DP
Conrad Hilton, at a gala
celebrating his life,
was asked, “What was the
most important lesson
you’ve learned in you long
and distinguished career?”
His immediate answer …
“remember
to tuck the
shower curtain
inside the
bathtub.”
2-cent
candy
<TGW
vs.
>TGR
ry it. Try it. Screw
t up. Try it. Try it
Try it. Try it. Try it
ry it. Screw it up
Try it. Try it. try i
ry it. Screw it up
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“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
Ex-ecu-tion!
“Execution is
strategy.”
—Fred Malek
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
K.i.s.s.
*Keep It Simple, Stupid
Compression hose would mostly fix the hospital
problem: “According to the American Heart Association,
up to two million Americans are affected annually by deep
vein thrombosis. Of those who develop pulmonary
embolism, up to 300,000 will die each year. ... Deep vein
thrombosis also is among the leading causes of
preventable hospital death. Even more disturbing is the
fact that, according to a U.S. multi-center study published
by two of ClotCare's editorial board members,
58%
of patients who developed a DVT while in
the hospital received no preventive
treatment despite the presence of
multiple risk factors and overwhelming
data that prophylaxis is very effective at
reducing these events.” —Marie B. Walker,
clotcare.com, March 2008
“Beware of the
tyranny of making
Small Changes to Small
Things. Rather, make
Big
Changes to
Things.”
Big
—Roger Enrico, former Chairman, PepsiCo
“Beware of the tyranny of making
Small
Things.
Small
Changes to
Rather, make Big
Big Things …
using Small, Almost
Invisible
Straightforward
Levers with Big
Systemic Impact.”
Changes to
—TP
“Everything matters”
-80%
Source: Nudge, Richard Thaler and Cass
Sunstein, etching of fly in the urinal
reduces “spillage” by 80%, Schiphol Airport
Ac-counta-bil-ity!
SECDEF Bob Gates:
Walter Reed, Army
Sec’y; Nucs, USAF
Sec’y & COS
“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.
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
Action.
EXECUTION.
ACCOUTABILITY.
6:15A.M.
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
… no less than
Cathedrals
in which the full and
awesome power of the
Imagination and Spirit and
native Entrepreneurial flair
of diverse individuals is
unleashed in passionate
pursuit of … Excellence.
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
“The four most important
words in any
organization
‘What do
you think?’ ”
are …
Source: courtesy Dave Wheeler,
posted at tompeters.com, source of
original unknown (0609.08)
EMPHASIZE
THE “SOFT
SKILLS.”
#1 cause of
Dis-satisfaction?
Employee retention & satisfaction:
Overwhelmingly,
based on their
immediate manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All
the Rules:
What the World’s Greatest Managers Do Differently
2/year =
legacy.
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
R.O.I.R.
Return On
Investment In
Relationships
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
Relationships
(of all varieties):
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.
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
EXCELLENCE.
BEDROCK.
LEADERSHIP.
THE 9Ps.
L(+21) = L(-21)
Leadership(21A.D.) =
Leadership(21B.C.)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“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)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“I am a …
Dispenser of
Enthusiasm!”
—Ben Zander
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
MBWA
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
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!
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.