2. Ho hum: 2+ weeks in New Zealand … Pfizer Ford Gap Chrysler Yahoo microsoft wal*mart ??? ???
3. “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change .” —Charles Darwin
4. On NELSON: “[other] admirals more frightened of losing than anxious to win”
5. Axiom : We have met the enemy and he is us. Axiom : The adaptive capabilities of big corporations taken as a whole is problematic [read: pathetic ]. Antidote : The answer is 75% internal. To sustain/win, we must first and foremost and in perpetuity beat back the forces of darkness— size and inertia and fear and timidity and over-complexity .
6. The last word: There is no last word.
7. Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE
8. Tom Peters’ X25* EXCELLENCE. ALWAYS. International Paper/Sanibel Harbour/0228.07 * In Search of Excellence 1982-2007
9. Slides at … tompeters.com
11. “ 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
12. “ Forbes100” from 1917 to 1987 : 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly under p erformed the market; just 2 (2%), GE & Kodak , out p erformed the market from 1917 to 1987. S&P 500 from 1957 to 1997 : 74 members of the Class of ’57 were alive in ’97; 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
13. Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 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)
14. S&P Stability Ratings* 1985 2006 Low Risk 41% 13% Average Risk 24% 14% High Risk 35% 73% *Likelihood of stable long-term earnings growth Source: Fortune (2 October 2006)
15. EXCELLENCE. GAMECHANGER.
16. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonom y and Entre p reneurshi p 4. Productivity Through Peo p le 5. Hands On , Value-Driven 6. Stick to the Knitting 7. Sim p le Form, Lean Staff 8. Simultaneous Loose-Tight Properties”
17. ExIn*: 1982-2002/Forbes.com DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 * Forbes / Excellence Index /Basket of 32 publicly traded stocks
18. EXCELLENCE. ASPIRATION.
19. “ Why in the world did you go to S iberia ?”
20. The Peters Princi p les : Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow.
21. “ In-sane-ly-great”
22. Enter p rise * ** (*at its best): An emotional , vital , innovative , joyful , creative , entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others . *** **Excellence. Always. ***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
23. EXCELLENCE. REVENUE. MATTERS. MOST.
24. “ 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 so many got caught, and earnings went to hell. They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh! ” —Dick Kovacevich, Wells Fargo
25. C R O* *Chief Revenue Officer
26. . “Everyone lives by selling something.” – Robert Louis Stevenson
27. EXCELLENCE. INNOVATE. OR. DIE.
28. “ 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 /2005
29. More than $$$$ #1 R&D spending, last 25 years?
31. “ I don’t believe in economies of scale. You don’t get better by being bigger. You get worse .” —Dick Kovacevich/Wells Fargo
32. Spinoffs systematically perform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble ” — Jerry Knight / Washington Post/ 08.05
33. “ When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’m sure there are success stories out there, but at this moment I draw a blank .” —Mark Sirower, The Synergy Trap
34. “ Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger . Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.” —Jim Collins/ Time /2004
35. There’s “A” and then there’s “A.”
37. We become who we hang out with!
38. Innovation’s Saviors-in-Waiting Disgruntled Customers Off-the-Sco p e Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
40. Emplo y ees : “Are there enou g h weird p eo p le in the lab these days?” V. Chmn., pharmaceutical house, to a lab director
41. Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks . Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)
42. “ Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity
43. Wikinomics. WikiWorld. CrowdSourcing.
44. “ The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT , 0110.07
45. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.
46. do things.
47. “ We have a ‘strategic plan.’ It’s called doing things .” — Herb Kelleher
49. “ 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
50. try things.
51. “ 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
52. “ Experiment fearlessly” Source: BW 0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1
53. “ We ground up more pig brains!”
54. The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “ far out ”/” 3-sigma ” “win” *“Driver”: Law of Large #s
57. “ Fail . Forward. Fast.” High Tech CEO, Pennsylvania
58. “ Fail faster. Succeed Sooner.” David Kelley/IDEO
59. Sam’s Secret #1!
60. “ Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
61. try. Miss. try.
62. READY. FIRE! AIM. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)
64. Paul Allaire: “We are in a brawl with no rules.” TP: “There’s [literally] only one possible answer— S crew A round V igorously !
65. “ You miss 100 % of the shots you never take.” —Wayne Gretzky
66. Speed/ Tempo/ is-it
67. We all live in Dell - Wal*Mart- e Bay - Google World!
68. “ the Fed Ex Economy ” —headline/ New York Times/ 10.08.05
69. “ Any3”: Anything/ Anywhere/ Anytime
70. “ UPS used to be a trucking company with technology. Now it’s a technolo gy com p an y with trucks .” — Forbes
71. Power Tools For Power Strategies
73. 5% F500 have CIO on Board: “While some of the world’s most admired companies— Tesco , Wal*Mart —are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value.” Source: Burson-Marsteller
75. JackWorld/ [email_address] : (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3) “Workout” Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (1-5/Throughout) TALENT JACK!
76. bet the farm
77. “ Beware of the tyranny of making Small Changes to S mall Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo
78. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
79. Conscious measurement
80. Innovation Index : How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird” / “Profound” / “Wow” / “Game- changer” Scale?
82. Step #1: Buy a Mirror!
83. “ The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change !” —RG
84. “ Do one thing every day that scares you.” —Eleanor Roosevelt
85. EXCELLENCE. 4/40.
87. De-cent-ral-iz- a-tion!
88. The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “ far out ”/” 3-sigma ” “win” *“Driver”: Law of Large #s
89. Decentralization vs Centralization = “That’s All There Is” (from the Federalist Papers to Org.2007)
90. “ If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner
91. Ex-e- cu-tion!
92. “ Execution is the j ob of the business leader .” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
93. “ Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Disci p line of Getting Things Done
101. Excellence: The SE22 : ORIGINS OF SUSTAINABLE ENTREPRENEURSHIP
102. SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8. “ Culturally” as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
103. SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners— especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … don’t obsess on how it “fits the business model.” (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/“No limits” approach to retaining top talent (Virgin, GE, PepsiCo )
104. SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)
105. EXCELLENCE. VALUE ADDED. UP THE LADDER.
106. EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.
108. “ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Cor p orate America ” —Headline/ BW /2004
109. Up, Up, Up, Up the Value-added Ladder.
110. The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials
111. The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials
112. The Value-added Ladder/ OPPORTUNITY-SEEKING Gamechanging Solutions Services Goods Raw Materials
113. Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage ’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
114. “ The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution . One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.” * (*E.g.: CRM failure rate/Gartner: 70 %) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
115. Hu g e : Customer Satisfaction versus Customer Success
116. Department Head to … Managin g Partner , IS [HR, R&D, etc.] Inc .
117. “ Purchasing Officer” Thrust #1 : Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner-Leader in Lifetime Value-added Maximization ? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
118. Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers)
119. EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.
120. “ 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
121. 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
122. WHAT CAN BROWN DO FOR YOU?
123. Up, Up, Up, Up the Value-added Ladder.
124. The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
125. EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.
126. 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
127. Up, Up, Up, Up the Value-added Ladder.
128. The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
129. C DM * *Chief Dream Merchant
130. “ Dreams Come True”: IBM
131. The (NEW) Value-added Ladder Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
132. EXCELLENCE. BEDROCK. LEADERSHIP. 9Ps.
133. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
134. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
135. “ 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)
136. “ Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘ Who do we i ntend to be ?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller
137. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
138. “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge
139. “ Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” —Peter Drucker
140. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
141. “ In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner
142. “ The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being .” —Robert Altman, Oscar acceptance speech
143. 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 g reatness .”
144. Leadership’s Mt Everest/Mt Excellence “ free to do his or her absolute best” … “allow its members to discover their greatness .”
145. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
147. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
148. “ You must be the change you wish to see in the world.” Gandhi
149. “ It’s alwa y s showtime.” —David D’Alessandro, Career Warfare
150. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
151. “ This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character : Grant had an extreme, almost p hobic dislike of turnin g back and retracin g his ste p s . If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on—turning back was not an option for him.” — Michael Korda, Ulysses Grant
152. Relentless : “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back , or stop, until the thing intended was accomplished.” —Grant
153. " The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” —GB Shaw, Man and Superman: The Revolutionists' Handbook.
154. “ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author
155. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
156. “ Leaders ‘ do ’ people. Period.” —Anon.
157. PARC’s Bob Taylor: “Connoisseur of Talent”
158. “ 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
159. 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. Second : Putting HR on a par with finance and marketing.
160. < CAPEX > People!
161. 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
162. Brand = Talent.
163. “ Leaders ‘ SERVE ’ people. Period.” —Anon.
164. Servant Leadership /Robert Greenleaf 1. Do those served grow as persons? 2. Do they, while being served, become healthier wiser, freer, more autonomous, more likely themselves to become servants?
165. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
166. “ Beware of the tyranny of making Small Changes to S mall Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo
167. 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 !
168. "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting ‘ GERONIMO!’ ” — Bill McKenna, professional motorcycle racer ( Cycle magazine)
169. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
170. On NELSON: “[other] admirals more frightened of losing than anxious to win”
171. 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
172. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
173. “ Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)