Tom Peters excellent slides of Toronto october 2009Presentation Transcript
“ 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
“ Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. The y found that none of the lon g -term survivors mana g ed to out p erform the market. Worse, the lon g er com p anies had been in the database, the worse the y did .” —Financial Times
“ 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
“ 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
“ Data drawn from the real world attest to a fact that is beyond our control: Ever y thin g in existence tends to deteriorate .” —Norberto Odebrecht, Education Through Work
14,000 20,000 30
14,000/ e Bay 20,000/Amazon 30 /Craigslist
“ The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think
[An obsession with] Listening is ... the ultimate mark of Respect . Listening is ... the heart and soul of Engagement . Listening is ... the heart and soul of Kindness . Listening is ... the heart and soul of Thoughtfulness . Listening is ... the basis for true Collaboration. Listening is ... the basis for true Partnership . Listening is ... a Team Sport . Listening is ... a Developable Individual Skill .* (*Though women are far better at it than men.) Listening is ... the basis for Community . Listening is ... the bedrock of Joint Ventures that work . Listening is ... the bedrock of Joint Ventures that last . Listening is ... the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organizational effectiveness.) [cont.]
Listening is ... the engine of superior EXECUTION. Listening is ... the key to making the Sale. Listening is ... the key to Keeping the Customer’s Business . Listening is ... the engine of Network development. Listening is ... the engine of Network maintenance . Listening is ... the engine of Network expansion . Listening is ... Social Networking’s “secret weapon.” Listening is ... Learning. Listening is ... the sine qua non of Renewal . Listening is ... the sine qua non of Creativity . Listening is ... the sine qua non of Innovation . Listening is ... the core of taking Diverse opinions aboard . Listening is ... Strategy . Listening is ... Source #1 of “Value-added.” Listening is ... Differentiator #1. Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than from any other single activity.) Listening is … the bedrock which underpins a Commitment to EXCELLENCE
*Listening is of the utmost … strategic importance! *Listening is a proper … core value ! *Listening is … trainable ! *Listening is a … profession !
“ I regard … a p olo g izin g … as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith , What Got You Here Won’t Get You There: How Successful People Become Even More Successful
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM . * *PERCEPTION IS ALL THERE IS!
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.
*effective apologizing is of the utmost … strategic importance! *effective apologizing is a proper … core value ! *effective apologizing is … trainable ! *effective apologizing is a … profession !
“ The four most important words in any organization are …
The four most important words in any organization are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com
“ The deepest human need is the … need to be appreciated.” —William James
“ It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say .” Source: Sara Lawrence-Lightfoot, Respect
*appreciation is of the utmost … strategic importance! *appreciation is a proper … core value ! *appreciation is … trainable ! *appreciation is a … profession !
And the answer is …. otis
Press Ganey Assoc : 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome P.S. directl y related to Staff Interaction P.P.S. directl y correlated with Emplo y ee Satisfaction Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
“ There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free . Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
“ Kindness is free.”
“ We are thoughtful in all we do.”
Thoughtfulness is key to customer retention . Thoughtfulness is key to em p lo y ee recruitment and satisfaction . Thoughtfulness is key to brand perception . Thoughtfulness is key to your ability to look in the mirror —and tell your kids about your job. “ Thoughtfulness is free .” Thoughtfulness is key to s p eedin g thin g s u p— it reduces friction . Thoughtfulness is key to trans p arenc y and even cost containment —it abets rather than stifles truth-telling.
*Thoughtfulness is of the utmost … strategic importance! *thoughtfulness is a proper … core value ! *Thoughtfulness is … trainable ! *Thoughtfulness is a … profession !
“ Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay
“ AS LEADERS, WOMEN RULE : New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
“ Forget China , India and the Internet : Economic Growth Is Driven by Women .” Source: Headline, Economist
“ 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 boys in the school system. For a number of observers, we have already entered the age of ‘ womenomics,’ the economy as thought out and practiced by a woman .” —Aude Zieseniss de Thuin, Women’s Forum for the Economy and Society
94 % of loans to … women * * M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner
problem #1. Opportunity #1. Period.
X =XFX* * Excellence = Cross-functional Excellence
Never waste a lunch!
???? % XF lunches* *Measure!
(Way) Underutilized Lever Space! Space! Space! Space!
Geologists + Geophysicists + A little bit of love = Oil
>100 feet = 100 miles
Lunch + Proximity > SAP/Oracle
GSK: 7 “CEDDs” … Centers of Excellence for Drug Discovery
The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”* *Entire “XF-50” List is at Appendix ONE
Little = BIG
Big carts = 1.5X Source: Wal*Mart
Bag sizes = New markets: $B Source: PepsiCo
see green = recover 20% faster
Round = 2X/all x
6.5 feet Away = - 63 % “Seconds”
Socks = 10,000
It BEGINS (and ENDS ) in the …
parking lot * *Disney
(1) Amenable to rapid experimentation/ failure “free” (PR, $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier (5) An “Attitude”
One week/5 experiments
(3) One month/Select best 2
(4) 60-90 days/Roll out
“ Design is ever y thin g. Everything is desi g n .” “ We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson
<TG W and … >TG R [Things Gone WRONG -Things Gone RIGHT ]
*2-cent candy *“May I clean your glasses, sir?”
Conrad Hilton, at a gala celebrating his career, 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 ”
“ Execution is strategy.” —Fred Malek
“ almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. Grant )
“ 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 phobic dislike of turning back and retracing his steps . 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
“ The art of war does not require complicated maneuvers; the simplest are the best and common sense is fundamental. From which one might wonder how it is generals make blunders; it is because the y tr y to be clever .” —Napoleon
Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation
“ Fail . Forward. Fast.” High Tech CEO, Pennsylvania
“ FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett
“ Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
“ In business, you reward people for taking risks. When it doesn’t work out you p romote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg
“ The secret of fast progress is inefficienc y , fast and furious and numerous failures.” —Kevin Kelly
“ Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event
“ It is not enough to ‘tolerate’ failure—you must ‘celebrate’ failure.” —Richard Farson ( Whoever Makes the Most Mistakes Wins )
LONG Tom Peters’ Excellence. Always. Toronto/16 October 2009
Slides [incl. “LONG”] at … tompeters.com
NOTE : To appreciate this presentation [and ensure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”
Message from a banker, circa 1988: “Tom let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesn’t go in or any such thing, just drives by and takes a look.”
Skip the map
“ Mapping your competitive position” or …
The “Have you …” 50
1. Have you in the last 10 days … visited a custome r? 2. Have you called a customer … TODAY ?
1. Have you in the last 10 days … visited a custome r? 2. Have you called a customer … TODAY ? 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours ? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation ? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)
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”
“ Breakthrough” 82* People! Customers! Action! Values! * In Search of Excellence
Hard Is Soft Soft Is Hard
Hard Is Soft (Plans, # s ) Soft Is Hard (people, customers, values, relationships))
Why in the World did you go to Siberia ?
Enterprise * ** (*at its best): An emotional , vital , innovative , joyful , creative , entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others .** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners
Organizations exist to serve . Period. Leaders live to serve . Period.
… 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 .
“ Leaders ‘ SERVE ’ people. Period.” —inspired by Robert Greenleaf
“ Business has to give people enriching, rewarding lives … or it's simply not worth doing .” — Richard Branson
Good News 2009: Leadership* is a sacred trust. *President, classroom teacher, CEO, shop foreman
“ You have to treat your employees like customers.” —Herb Kelleher, complete answer, upon being asked his “secrets 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)
“ We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX
The Dream Manager —Matthew Kelly “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an emplo y ee’s p ur p ose? Most would sa y , ‘to hel p the com p an y achieve its p ur p ose’—but the y would be wron g. That is certainl y part of the emplo y ee’s role, but an emplo y ee’s p rimar y p ur p ose is to become the-best-version-of-himself or –herself . … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.”
Our goal is to serve our customers brilliantly and profitably over the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving over the long haul the people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business.” “ We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. “ We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. “ We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence. Period. Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE
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
“ 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
“ Managers have lost dignity over the past decade in the face of wide spread institutional breakdown of trust and self-policing in business. To re g ain societ y ’s trust, we believe that business leaders must embrace a wa y of lookin g at their role that g oes be y ond their res p onsibilit y to the shareholders to include a civic and p ersonal commitment to their dut y as institutional custodians . In other words, it is time hat management became a profession.” —Rakesh Khurana & Nitin Nohria, “It’s Time To Make Management a True Profession,” HBR/10.08
2009 New Delhi
“ The ONE Question”: “In the last year [3 years, current job], name the … three people … whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people grow along the way.”
“ Development can help great people be even better— but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door .” — Paul Russell, Director, Leadership & Development, Google
#1 cause of Dis-satisfaction?
Employee retention & satisfaction: Overwhelmin g l y , based on the first-line mana g er ! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently
2/year = legacy.
*Hiring *Frontline Supervisor *legacy
“ d”iversity: “ 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
“ How do dominant companies lose their position? Two-thirds of the time, the y p ick the wron g competitor to worr y about .” —Don Listwin, CEO, Openwave Systems/ WSJ
“ [CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time . One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” — Fortune
The “We are what we eat” axiom: At its core, ever y (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strate g ic decision about: “Innovate, ‘Yes’ or ‘No’ ”
“ You will become like the five people you associate with the most—this can be either a blessing or a curse.” — Billy Cox
“ The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT , 0110.07
Rob McEwen/ CEO/ Goldcorp Inc./ Red Lake gold Source: Wikinomics: How Mass Collaboration Changes Everything , Don Tapscott & Anthony Williams
“ Normal” = “o for 800”
“ 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 to p!” — Gary Hamel/ Harvard Business Review
“ 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
!!!!!!!!!!!!!!!!! “ People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America
We are the Aussies & Kiwis & Americans & Canadians . We are the Western Europeans & Japanese . We are the fastest growing , the biggest , the wealthiest , the boldest , the most (yes) ambitiou s, the most experimental & exploratory , the most different , the most indulgent , the most difficult & demanding , the most service & experience obsessed , the most vigorous , (the least vigorous,) the most health conscious , the most female , the most profoundly important commercial market in the history of the world—and we will be the Center of y our universe for the next twent y -five y ears . We have arrived!
“ Data drawn from the real world attest to a fact that is beyond our control: Ever y thin g in existence tends to deteriorate .” —Norberto Odebrecht, Education Through Work
More than $$$$ #1 R&D spending, last 25 years?
#4 Japan #3 USA #2 China #1 Germany
Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007: $62,000,000
* Lived in same town all adult life *First generation that’s wealthy/no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull- normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessons of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door , Thomas Stanley & William Danko
Guru Gaffes: Big companies ….… SMEs Public companies … Private companies “ Cool” industries ….. Dull industries
Innovation’s “Fourteen Imperatives”
Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!)
Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction to Proto.)
(7) Co-invent with outsiders./ Entwined with outsiders.
Innovation’s “Fourteen Imperatives” (8) “Strategic” Listening = Core competence. (9) Hire and promote 100% innovators. Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.” (10) XFX/Cross-functional Excellence!! (#1??) (11) Chief Complexity & Systems Destruction Officer. (12) R&D Equality. All functions equal. (VA centerpiece./ All staff VA-meisters.) (13) Fun! Self-deprecating! (14) Good luck! (Entropy rules.) (Major acquisition = Dumb.) (All these things work except when they don’t.)
L(+21) = L(-21)
Leadership(21A.D.) = Leadership(21B.C.)
“ Allied commands depend on mutual confidence [and this confidence] is gained, above all through the develo p ment of friendshi p s .” —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!
Delaware Rules: “ eighty percent of success is showing up.” —Woody Allen
“ Mandela, a model host [in his prison hospital room] smiled grandly, put [Justice Minister Kobie] Coetzee at his ease, and almost immediately, to their quietly contained surprise, prisoner and jailer found themselves chatting amiably. … [ It had mostl y ] to do with bod y lan g ua g e, with the im p act Mandela’s manner had on p eo p le he met. First there was his erect p osture. Then there was the wa y he shook hands. The effect was both re g al and intimidatin g , were it not for Mandela’s warm g aze and his bi g , eas y smile . … Coetzee was surprised by Mandela’s willingness to talk in Afrikaans, his knowledge of Afrikaans history.” Coetzee: “He was a born leader. And he was affable. He was obviously well liked by the hospital staff and yet he was respected even though they knew he was a prisoner.” Source: John Carlin, Playing the Enemy: Nelson Mandela and the Game that Made a Nation. (Mandela meets surreptitiously with justice minister after decades in prison—and turns on the charm)
The Real World’s “Little” Rule Book Ben/tea Norm/tea DDE/make friends WFBuckley/make friends-help friends Gust/Suck down Charlie/poker pal-BOF EVII/dance-flatter-mingle-learn the language Vlad/birthday party of outgroup guy’s wife CIO/finance network ERP installer/consult-“one line of code” GE Energy/make friends risk assessment GWB/check the invitation list GHWB/T-notes Hank/60 calls MarkM/5K-5M Delaware/show up Oppy/snub Lewis Strauss NM/smile -$4.3T/tin ear tp.com/Big 4-What do you think? Women/genes Banker/after church Total Bloody Mess/Can they pay back the loan?