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Punchline …
The  last  word:  There is  no  last word.
NEW ZEALAND 2007
Ho hum: 2+ weeks in New Zealand … Pfizer Ford Gap Chrysler Yahoo microsoft wal*mart ??? ???
“ It is  not  the strongest of the species that survives,  nor  the most intelligent, but  the one most responsive  to change .”   —Charles Darwin
Tom Peters’ X25* EXCELLENCE. ALWAYS. Transforming Life, Work, & Organizations Manchester, England, 07 March 2007 * In Search of Excellence  1982-2007
Slides at … tompeters.com
EXCELL- ENCE????
“ 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
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)
EXCELLENCE. CIRCA 1982.
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”
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
EXCELLENCE. ASPIRATION.
“ Why in the world did you go to S iberia ?”
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
EXCELLENCE. INNOVATE. OR. DIE.
More than $$$$ #1   R&D spending,  last 25 years?
GM
InnoTacs
We  become  who we hang out with 1
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
“ 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
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.)
“ 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
We  become  who we hang out with 2
Whacky Wiki World Wow
Wikinomics: How Mass  Collaboration Changes  Everything — Don Tapscott & Anthony Williams
“ The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’”   —Headline,  FT , 0110.07
Wikinomics WikiWorld Weapons of Mass collaboration CrowdSourcing smart mobs Linux Human genomE project InnoCentive YouTube Second Life Wikipedia Myspace
Rob McEwen/ CEO/ Goldcorp Inc./ Red Lake  gold Source:  Wikinomics: How Mass  Collaboration Changes Everything ,  Don Tapscott & Anthony Williams
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.
do things.
“ We have a ‘strategic  plan.’ It’s called  doing things .”   — Herb Kelleher
drill.
“ 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
try things.
“ 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
Screw. things. Up.
“ FAIL, FAIL AGAIN. FAIL BETTER.”   —Samuel Beckett
“ Fail .  Forward.  Fast.” High Tech CEO, Pennsylvania
“ Fail faster. Succeed Sooner.” David Kelley/IDEO
Sam’s  Secret  #1!
“ Reward   excellent failures.  Punish   mediocre successes.” Phil Daniels, Sydney exec
try. Miss. try.
READY. FIRE! AIM. Ross Perot (vs  “ Aim! Aim! Aim!”   /EDS vs GM/1985)
“ You miss  100 %   of the shots you never take.”   —Wayne   Gretzky
EXCELLENCE. 4/40.
4/40
De-cent-ral-iz- a-tion!
“ If if feels painful and scary—that’s  real  delegation”   —Caspian Woods, small biz owner
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
“ Best practice” =  ZERO  Standard Deviation
Ex-e- cu-tion!
“ Execution  is the  j ob   of the business   leader .”   —Larry Bossidy  & Ram Charan/  Execution: The Discipline of Getting Things Done
“ 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
Goal  (“Vision”) =  Projects  =  Milestones  =   Rapid Review  +   Truth-telling  =  accountability
“ Costco figured out the  big ,  simple  things and  executed  with total  fanaticism .”   —Charles Munger, Berkshire Hathaway
Ac-count-a-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.
DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6 :15A.M.
EXCELLENCE. VALUE ADDED. UP THE LADDER.
EXCELLENCE. VALUE-ADDED LADDER I.  SOLVE IT.
$55B
“ Big Brown’s New Bag: UPS   Aims to Be the   Traffic Manager for Cor p orate America ”   —Headline/ BW /2004
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
“ 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
The Value-added Ladder/  OPPORTUNITY-SEEKING   Im p lemented  Gamechanging Solutions Services Goods  Raw Materials
Hu g e :   Customer  Satisfaction   versus  Customer  Success
Department Head   to … Managin g  Partner ,  IS   [HR, R&D, etc.]   Inc .
Answer: PSF
Core Mechanism : “Game-chan g in g  Solutions”   PSF   (Professional Service Firm “model”/The  Organizing Principle )   + Brand You (“Distinct” or “Extinct”/The  Talent )  + Wow! Projects  (“Different” vs “Better”/The   Work )
HCare CIO :  “Technology Executive”   (workin’ in a hospital)   Or/to:   Full-scale, Accountable   (life or death)   Member-Partner of XYZ Hospital’s  Senior Healin g -Services Team   (who happens to be a techie)
Big Idea:   “Corporation” as  Mega-“PSF”   (Professional Service Firm*)   * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)
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 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
Up,   Up,   Up,  Up   the Value-added Ladder.
The Value-added Ladder/  MEMORABLE CONNECTION Spellbinding Experiences   Gamechanging Solutions Services Goods  Raw Materials
C X O * *Chief e X perience Officer
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
C DM * *Chief Dream Merchant
“ Dreams Come True”: IBM UPS
EXCELLENCE. VALUE-ADDED LADDER III.   ALL YOU NEED IS LOVE.
“ Brands have run out of juice. They’re  dead .”   —Kevin Roberts/Saatchi & Saatchi
Kevin Roberts:   Lovemarks !
Up,   Up,   Up,  Up   the Value-added Ladder.
The Value-added Ladder/  ECSTASY   Lovemark   Dreams Come True  Spellbinding Experiences Services Goods Raw Materials
C L   O * *Chief  Lovemar k  Officer
EXCELLENCE. NEW VALUE EQUATION.  NEW “C-levels.”
C R O * *Chief  Revenue   Officer
C X O * *Chief  e X perience  Officer
C DM * *Chief  Dream   Merchant
C F O* *Chief  Festivals   Officer
C PI * *Chief  Portal Impresario
C  W w   M* *Chief  WikiWorld   Maniac
C C O* *Chief  Conversations   Officer
C L   O * *Chief  Lovemark   Officer
C S O* *Chief  Seduction  Officer
C ST O * *Chief  Storytelling   Officer
C D O * *Chief  Design   Officer
C ta O * *Chief  talent acquisition   Officer
C FA O * *Chief  freaks acquisition   Officer
C Q O * *Chief  quest-meister
C T O * *Chief  Thrills   Officer
C W O * *Chief   WOW   Officer
C ! O * *Chief  !  Officer
women. BOOMERS. GEEZERS.
women. BOOMERS. GEEZERS.
“ Forget  China ,  India  and the  Internet : Economic Growth Is Driven by  Women .”   —Headline,  Economist , April 15, 2006, Leader, page 14
Women’s  Trifecta+ * Buy  * Wealth * Lead   + ECLIPSE OF MALES   (Old/Retire; Young/Poorly educated)
Not Just America … “Boys Falling  Seven  Years Behind Girls  at GCSE Level”   —headline,  Weekly Telegraph , UK, 10.25.06
“ Women are   the   majority market”   —Fara Warner/ The Power of the Purse
The Perfect Answer Jill and Jack buy slacks in black…
 
“ She   knows more  about the [Volvo] than the sales man   who greets her at the door. But how is she treated? As if she has a  low IQ  , is slightly  hard of hearing  , and really has  no right   to be buying a luxury car; and if she brought a male friend with her, odds are 10:1 that the clueless salesperson spent most of his time  speaking to him  .”   —Selling to Men, Selling to Women , Jeffery Tobias Halter
“ Women don’t buy  brands.  They  join them .” EVEolution
Selling to men:   The  TRANSACTION  Model Selling to Women:   The  RELATIONAL  Model Source:  Selling to Men, Selling to Women , Jeffery Tobias Halter
Week #8:  testosterone time! * *Louann Brizendine, Neuropsychiatrist,  The Female Brain .  Week #8/Testosterone surge  kills :  communication cells ;  grows :  sex & aggression cells . Also/E.g.:  10X to 20X, F eye contact/look for emotional signals by 3 months. Later: F, more sentences that  begin with “Let’s …”; more likely to take turns
1. Men and women are different. 2. Very different. 3.  VERY, VERY DIFFERENT . 4. Women & Men have a-b-s-o-l-u-t-e-l-y   nothing in common. 5. Women buy lotsa stuff. 6.  WOMEN BUY A-L-L THE STUFF . 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9.  MEN ARE … TOTALLY, HOPELESSLY   CLUELESS ABOUT WOMEN.
10.  Women’s Market = Opportunity No. 1.
Cases! Cases! Cases! McDonald’s   (“mom-centered” to “majority consumer”; not via kids) Home Depot   (“Do it [everything!] Herself”) P&G   (more than “house cleaner”)  DeBeers   (“right-hand rings”/$4B) AXA Financial Kodak   (women = “emotional centers of the household”) Nike   (> jock  endorsements; new def sports; majority consumer) Avon Bratz   (young girls want “friends,” not a blond stereotype) Source:  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
“ Since  1970 , women have held  two  out of every  three  new jobs created.”   — FT , 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 ?
“ AS LEADERS, WOMEN RULE :   New Studies find that female managers outshine their male counterparts in almost every measure”   TITLE/ Special Report/  BusinessWeek
Women’s Strengths Match New Economy Imperatives :   Link [rather than rank] workers;  favor interactive-collaborative leadership style [empowerment beats top-down decision making];  sustain fruitful collaborations; comfortable with sharing information;  see redistribution of power as victory, not surrender ; favor multi-dimensional feedback;  value technical & interpersonal skills, individual & group contributions equally;  readily accept ambiguity;  honor intuition as well as  pure “rationality”;  inherently flexible;  appreciate cultural diversity .   —Judy B. Rosener,  America’s Competitive Secret: Women Managers
New (4 of 7) Value-added “Ladder”:  Plays to Women’s Inherent Strengths!   Lovemark/ F   Dreams Come True/ F  Spellbinding Experiences/ F Gamechanging Solutions/ F Services/ F Goods/ M Raw Materials/ M
women. BOOMERS. GEEZERS.
Boomers’-Geezers’-Women’s Trifecta+ *Buy/ all  *Wealth/ all   *time left/   lots   *Eclipse of males/ retire - die
!!!!!!!!!!!!!!!!! “ People turning 50 today have  more than   half   of their adult life ahead of them.”   —Bill Novelli,  50+: Igniting a Revolution to Reinvent America
Average # of cars purchased per household, “lifetime”:  13 Average # of cars bought per household after the “head of household” reaches age 50:  7 Source: Marti Barletta,  PrimeTime Women
44-65 :   “New Customer Majority”  * *45% larger than 18-43; 60% larger by 2010 Source:  Ageless Marketing , David Wolfe & Robert Snyder
EXCELLENCE. BEDROCK. TALENT.
Hire  ver y good people!
“ We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific …   changed  20  of his   40   box plant managers to put more talented, higher paid managers in charge.   He increased profitability from  $ 25  million to  $ 80  million in  2  years.”   —Ed Michaels,  War for Talent
SO YOU’RE A “PEOPLE PERSON”?  PROVE IT .
“ 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
PARC’s Bob Taylor:   “Connoisseur  of Talent”
SO YOU’RE A “PEOPLE PERSON”?  PROVE IT .
< CAPEX > People!
The Value-added Ladder/  OPPORTUNITY-SEEKING   Implemented Gamechanging  Solutions  (People intensive) Services  (People & Capital intensive) Goods  (Capital   intensive)  Raw Materials  (Capital intensive)
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. BEDROCK. LEADERSHIP. 9Ps.
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 .
“ Nothing is so contagious as enthusiasm.”   —Samuel Taylor Coleridge
“ Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.”   —Peter Drucker
PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE .  Potent . Positive .
“ 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 actors and  actresses  can   become more than they’ve ever been before, more than they’ve dreamed of being .”   —Robert Altman, Oscar acceptance speech
PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE .  Potent . Positive .
25
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 .
“ 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 of 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
“ Success seems to be largely a matter  of  hanging   on  after others have let go.”   —William Feather, author
PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE .  Potent . Positive .
“ Leaders  ‘ do ’  people.  Period.”   —Anon.
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.
“ Leaders  ‘ SERVE ’  people.  Period.”   —Anon.
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?
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 .
On NELSON:   “[other] admirals more frightened of losing than anxious to win”
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
PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE .  Potent . Positive .
“ 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)
&quot;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)
EX CELLE ALW AYS .

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Tom Peters at Transforming Work, Life, & Organizations conference

  • 2. The last word: There is no last word.
  • 4. Ho hum: 2+ weeks in New Zealand … Pfizer Ford Gap Chrysler Yahoo microsoft wal*mart ??? ???
  • 5. “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change .” —Charles Darwin
  • 6. Tom Peters’ X25* EXCELLENCE. ALWAYS. Transforming Life, Work, & Organizations Manchester, England, 07 March 2007 * In Search of Excellence 1982-2007
  • 7. Slides at … tompeters.com
  • 9. “ 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
  • 10. 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)
  • 12. 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”
  • 13. 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
  • 15. “ Why in the world did you go to S iberia ?”
  • 16. 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
  • 18. More than $$$$ #1 R&D spending, last 25 years?
  • 19. GM
  • 21. We become who we hang out with 1
  • 22. 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
  • 23. “ 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
  • 24. 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.)
  • 25. “ Normal” = “o for 800”
  • 26. “ 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
  • 27. We become who we hang out with 2
  • 29. Wikinomics: How Mass Collaboration Changes Everything — Don Tapscott & Anthony Williams
  • 30. “ The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT , 0110.07
  • 31. Wikinomics WikiWorld Weapons of Mass collaboration CrowdSourcing smart mobs Linux Human genomE project InnoCentive YouTube Second Life Wikipedia Myspace
  • 32. Rob McEwen/ CEO/ Goldcorp Inc./ Red Lake gold Source: Wikinomics: How Mass Collaboration Changes Everything , Don Tapscott & Anthony Williams
  • 33. 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.
  • 35. “ We have a ‘strategic plan.’ It’s called doing things .” — Herb Kelleher
  • 37. “ 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
  • 39. “ 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
  • 41. “ FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett
  • 42. “ Fail . Forward. Fast.” High Tech CEO, Pennsylvania
  • 43. “ Fail faster. Succeed Sooner.” David Kelley/IDEO
  • 45. “ Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
  • 47. READY. FIRE! AIM. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)
  • 48. “ You miss 100 % of the shots you never take.” —Wayne Gretzky
  • 50. 4/40
  • 52. “ If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner
  • 53. 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
  • 54. “ Best practice” = ZERO Standard Deviation
  • 56. “ Execution is the j ob of the business leader .” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
  • 57. “ 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
  • 58. Goal (“Vision”) = Projects = Milestones = Rapid Review + Truth-telling = accountability
  • 59. “ Costco figured out the big , simple things and executed with total fanaticism .” —Charles Munger, Berkshire Hathaway
  • 61. “ 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)
  • 64. EXCELLENCE. VALUE ADDED. UP THE LADDER.
  • 66. $55B
  • 67. “ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Cor p orate America ” —Headline/ BW /2004
  • 68. Up, Up, Up, Up the Value-added Ladder.
  • 69. The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials
  • 70. The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials
  • 71. The Value-added Ladder/ OPPORTUNITY-SEEKING Gamechanging Solutions Services Goods Raw Materials
  • 72. “ 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
  • 73. The Value-added Ladder/ OPPORTUNITY-SEEKING Im p lemented Gamechanging Solutions Services Goods Raw Materials
  • 74. Hu g e : Customer Satisfaction versus Customer Success
  • 75. Department Head to … Managin g Partner , IS [HR, R&D, etc.] Inc .
  • 77. Core Mechanism : “Game-chan g in g Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )
  • 78. HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healin g -Services Team (who happens to be a techie)
  • 79. Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)
  • 80. EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.
  • 81. “ 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
  • 82. 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
  • 83. Up, Up, Up, Up the Value-added Ladder.
  • 84. The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
  • 85. C X O * *Chief e X perience Officer
  • 87. 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
  • 88. Up, Up, Up, Up the Value-added Ladder.
  • 89. The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
  • 90. C DM * *Chief Dream Merchant
  • 91. “ Dreams Come True”: IBM UPS
  • 92. EXCELLENCE. VALUE-ADDED LADDER III. ALL YOU NEED IS LOVE.
  • 93. “ Brands have run out of juice. They’re dead .” —Kevin Roberts/Saatchi & Saatchi
  • 94. Kevin Roberts: Lovemarks !
  • 95. Up, Up, Up, Up the Value-added Ladder.
  • 96. The Value-added Ladder/ ECSTASY Lovemark Dreams Come True Spellbinding Experiences Services Goods Raw Materials
  • 97. C L O * *Chief Lovemar k Officer
  • 98. EXCELLENCE. NEW VALUE EQUATION. NEW “C-levels.”
  • 99. C R O * *Chief Revenue Officer
  • 100. C X O * *Chief e X perience Officer
  • 101. C DM * *Chief Dream Merchant
  • 102. C F O* *Chief Festivals Officer
  • 103. C PI * *Chief Portal Impresario
  • 104. C W w M* *Chief WikiWorld Maniac
  • 105. C C O* *Chief Conversations Officer
  • 106. C L O * *Chief Lovemark Officer
  • 107. C S O* *Chief Seduction Officer
  • 108. C ST O * *Chief Storytelling Officer
  • 109. C D O * *Chief Design Officer
  • 110. C ta O * *Chief talent acquisition Officer
  • 111. C FA O * *Chief freaks acquisition Officer
  • 112. C Q O * *Chief quest-meister
  • 113. C T O * *Chief Thrills Officer
  • 114. C W O * *Chief WOW Officer
  • 115. C ! O * *Chief ! Officer
  • 118. “ Forget China , India and the Internet : Economic Growth Is Driven by Women .” —Headline, Economist , April 15, 2006, Leader, page 14
  • 119. Women’s Trifecta+ * Buy * Wealth * Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)
  • 120. Not Just America … “Boys Falling Seven Years Behind Girls at GCSE Level” —headline, Weekly Telegraph , UK, 10.25.06
  • 121. “ Women are the majority market” —Fara Warner/ The Power of the Purse
  • 122. The Perfect Answer Jill and Jack buy slacks in black…
  • 123.  
  • 124. “ She knows more about the [Volvo] than the sales man who greets her at the door. But how is she treated? As if she has a low IQ , is slightly hard of hearing , and really has no right to be buying a luxury car; and if she brought a male friend with her, odds are 10:1 that the clueless salesperson spent most of his time speaking to him .” —Selling to Men, Selling to Women , Jeffery Tobias Halter
  • 125. “ Women don’t buy brands. They join them .” EVEolution
  • 126. Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women , Jeffery Tobias Halter
  • 127. Week #8: testosterone time! * *Louann Brizendine, Neuropsychiatrist, The Female Brain . Week #8/Testosterone surge kills : communication cells ; grows : sex & aggression cells . Also/E.g.: 10X to 20X, F eye contact/look for emotional signals by 3 months. Later: F, more sentences that begin with “Let’s …”; more likely to take turns
  • 128. 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT . 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF . 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.
  • 129. 10. Women’s Market = Opportunity No. 1.
  • 130. Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/ The Power of the Purse
  • 131. “ Forget China , India and the Internet : Economic Growth Is Driven by Women .” —Headline, Economist , April 15, 2006, Leader, page 14
  • 132. “ Since 1970 , women have held two out of every three new jobs created.” — FT , 10.03.2006
  • 133. 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 ?
  • 134. “ AS LEADERS, WOMEN RULE : New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
  • 135. Women’s Strengths Match New Economy Imperatives : Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender ; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity . —Judy B. Rosener, America’s Competitive Secret: Women Managers
  • 136. New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/ F Dreams Come True/ F Spellbinding Experiences/ F Gamechanging Solutions/ F Services/ F Goods/ M Raw Materials/ M
  • 138. Boomers’-Geezers’-Women’s Trifecta+ *Buy/ all *Wealth/ all *time left/ lots *Eclipse of males/ retire - die
  • 139. !!!!!!!!!!!!!!!!! “ People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America
  • 140. Average # of cars purchased per household, “lifetime”: 13 Average # of cars bought per household after the “head of household” reaches age 50: 7 Source: Marti Barletta, PrimeTime Women
  • 141. 44-65 : “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing , David Wolfe & Robert Snyder
  • 143. Hire ver y good people!
  • 144. “ We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $ 25 million to $ 80 million in 2 years.” —Ed Michaels, War for Talent
  • 145. SO YOU’RE A “PEOPLE PERSON”? PROVE IT .
  • 146. “ 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
  • 147. PARC’s Bob Taylor: “Connoisseur of Talent”
  • 148. SO YOU’RE A “PEOPLE PERSON”? PROVE IT .
  • 149. < CAPEX > People!
  • 150. The Value-added Ladder/ OPPORTUNITY-SEEKING Implemented Gamechanging Solutions (People intensive) Services (People & Capital intensive) Goods (Capital intensive) Raw Materials (Capital intensive)
  • 152. 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
  • 155. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 156. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 157. “ 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)
  • 158. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 159. “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge
  • 160. “ Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” —Peter Drucker
  • 161. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 162. “ In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner
  • 163. “ 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
  • 164. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 165. 25
  • 166. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 167. “ You must be the change you wish to see in the world.” Gandhi
  • 168. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 169. “ 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 of 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
  • 170. “ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author
  • 171. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 172. “ Leaders ‘ do ’ people. Period.” —Anon.
  • 173. 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.
  • 174. “ Leaders ‘ SERVE ’ people. Period.” —Anon.
  • 175. 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?
  • 176. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 177. 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 !
  • 178. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 179. On NELSON: “[other] admirals more frightened of losing than anxious to win”
  • 180. 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
  • 181. PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .
  • 182. “ 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)
  • 183. &quot;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)
  • 184. EX CELLE ALW AYS .