Tom Peters_excellence_always_Creative Destruction.ppt

Tom Peters’
EXCELLENCE.
ALWAYS.
XAlways.LONG.1339.05October2006

Slides* at …
tompeters.com
*also “long”

The
Irreducible209+/
Sales122/60TIBs

A frustrated participant at a seminar for investment bankers in Mauritius listened
impatiently to my explanation of differences of opinion among me, Mike Porter,
Gary Hamel, Jim Collins, etc. Finally, he’d had enough. “What,
if anything,” he asked,
“do you believe ‘for
sure’?” I mumbled something, but his query started rumbling
around in my mind. Three days later, wandering on a Sunday in London, the idea of
“the irreducibles” occurred to
me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before
I knew it, a few days later, the list had grown to 209 items. Hence “The
Irreducible209” that follows.
Tom Peters

1. Hare 1, Tortoise 0. (Hare-y times.)
2. Tempo. (O.O.D.A.)
3. MBWA.
4. Appreciation. (“Motivator” #1.)
(Can’t be faked. Good.)
5. Decency.
6. Hurry.
7. Time out.
8. One matters.
9. Big change. Short time. (Alt not work.)
10. Excellence. Always.
11. Passion. Energy. Hustle. Enthusiasm.
Exuberance. (Move mountains. No alt.)
12. You must care.
13. Emotion.
14. Hard is soft. (Soft is hard.)

EXCELLENCE.
ALL YOU NEED TO KNOW.

. “Everyone lives by
selling something.”
– Robert Louis Stevenson

A Few Biases You Should Know About
*I am not a macro-economist.
*I am whollybiasedby 30 years(1970-2000)in Silicon Valley.
*I wouldratherworkfor eBaythanBankAmerica.
*I believe that the Giant Merger Game is the single greatest
waste of energy in the world of business.
*Economies of scale are wildly over-rated.
*I find the entire notion of “career” to be disturbing and a little silly.
*I find the notion of “built to last” hilarious.
*Between 1965 and 1980 I turned 179.9 degrees from “Mr Big
Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you,
Frank Perdue.)
*Joseph Schumpeter (“gales of creative destruction”) and F.A. Hayek
are my economist “gods”; JK Galbraith is my bête noir.
*“Innovation” is a wonderfully messy & chaotic process—not
amenable to “strategic plans.”
*I believe in Luck. (Fooled by Randomness—best book
I’ve ever read.)

A Few Biases You Should Know About
*I find most strategic plans (and strategic planners) to be amusing.
*I am not … Mike Porter.
*I am not … Peter Drucker.
*I am not … Jim Collins.
*I believe that the resilience of Giant Companies is
wildly-absurdly over-rated.
*I believethatAmerica’sproductivityedgecomesfromcar
dealers morethanGiantCos.
*No“businessmodel”is“thelastword.”
*I ama GreatBelieverin“thebasics”: product,people,
customers,execution. (Hence there is nothing very interesting,
save one thing, in In Search of Excellence.)
*I believethatEXCELLENCEisa legitimateaspirationforeach
of us;andthatanylesseraspirationisunconscionable.

Execution. (Discipline.)
Accountability.
Action, a Bias for. (S.A.V./R.F.A.)
Relentless.
Experimentation. (“Innovate or Die.” “He who makes …”)
Adaptability. (Plan B; “We eat …”)
“In the moment.” (Bertolucci.)
Senility.
Exuberance.
Fun.
Technicolor. Wow! (Extreme Language.)
Quest-Adventure.
By Invitation.
Talent. Roster. ($21M.)
Weird. (Hangin’ Out + Bottlenecks.)
D-squared/“Dramatic Difference.”
Up-Up-Up the “VA Ladder.”
Trifecta: Wow Projects-Brand You-PSF. (No Option.)
Design.
Women.
4-40/D.E.A.615. (60TIBs; IRR209.)
EXCELLENCE.

TP’s “23Passions”
by date:
1942-2006

B>A* (R.F.A.) (*Behavior drives Attitude) … ’71-’06
Implementation = #1 … ’73-’77 (’06)
“Soft is Hard” (“Management Style”) … ’77-’79 (’06)
(Org) Structure>Strategy … ’77-’83 (’06)
Strategy-Structure+/ “McKinsey 7-S” Model ... ’77-’81
Action>Planning … ’74-’06
Mess = Reality ... ’77-’06
Skunkworks/Skunks (“Offline” Innovation/Innovators) … ’84-’91
MBWA … ’80-’85 (’06)
Excellence I … ’79-’84
Mid-size biz is cool … ’84-’89 (’06)
Customer service … ’84-’88
Innovation … ’87-’92
Free trade/Hayek … ’90-’92
New Org Models … ’92-’96
PSF … ’92-’06
WOW! (WOW Projects) … ’93-’06
Brand You … ’94-’00
Design … ’94-’06
Women (Markets-Leaders) … ’96-’06
EXCELLENCE II … ’06-??
Healthcare (Quality-Wellness-PatientCentric) … ’06-??
Exuberance-Passion (Soft is Hard) … ’42-’06

TOM PETERS.
THE “DAMN ITS.”

To The Mat: The “5 Damn Its”
Women.
PSF.
Brand you.
R.f.a.
EXCELLENCE. ALWAYS.

M.I.A.
Action! *
Implementation! **
The Work Itself! ***
*R.F.A.
**Execution
***WOW Projects!

“Never forget
implementation
boys. In our work it’s
what I call the
‘missing 98
percent’ of the client
puzzle.” —Al McDonald

Revolution-Transformation.
(No long runs on Broadway-Senility.)
“Soft”>“Hard.”
(Culture or Bust.)
Execution-Action.
(Do>Think.)
Clean Sheet of Paper.
(Web2.0, Transparency, New Org Form—Itinerant Potential Machines.)
PSF-Brand You-Wow Projects.
Up-Up-Up the VA Ladder.
(Gamechanging Solutions-Eyepopping Experiences-Dream Merchants-Lovemarks.)
Weird.
(Innovation “Easy.”)
Energy-Enthusiasm-Relentlessness.
Excellence. Always.

THREE
BILLION NEW
CAPITALISTS
—Clyde Prestowitz

Schools & Shifting Tectonic Plates
In: "economics, technology, social
customs and globalization."
Out: Socialism in general ("one short
chapter"). Chinese communism
before the 1979 economic revolution
("a sentence"). Mao ("only once--in a
chapter on etiquette").
Source: The New York Times, p1, 0901.2006, on
reported on revised history textbooks for high school
seniors in Shanghai, China.

“There is no job that is
America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004

“There is no job that is
_____’s God-given right
anymore.”

“Income Confers No
Immunity as Jobs Migrate”
—Headline/USA Today/02.2004

“Deutsche Bank Moves Half of Its
Back-office Jobs to India”/
headline/FT/0327 (500 of
900 Research)

“Forget China,
India and the
Internet: Economic
Growth Is Driven
by Women.”
—Headline, Economist,
April 15, 2006, Leader, page 14

Savings, internal
investment,
external investment
> 50% GDP

Unparalleled in “Our” Professional Lifetime
Terrorism
Middle East instability
China screw-ups
Globalization backlash
Energy dependence
Environmental threats
Life sciences
“Cold War” with China
Fraying American fabric
Debt
H5N1
U.S. impotence in the face of Asia’s rise

“This is a dangerous world and
it is going to become more dangerous.”
“We may not be interestedinchaos
but chaosis interestedin us.”
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century

EXCELLENCE.
EVERYWHERE.
ASPIRATION.
NECESSITY.

“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … inThailand
13 … in China
18 … in India.”
Source: The Straits Times/2003

“Thaksinomics” (after Thaksin Shinawatra)
“Bangkok Fashion City”: “managed
asset reflation” (add to
brand value of Thai textiles by demonstrating
flair and design excellence)
Source: The Straits Times/2004

Spain
Portugal
Italy
Ireland
Singapore
Taiwan
Thailand
Malaysia
Singapore
Philippines
UAE
Oman
Chile
Botswana
Romania
New Zealand

“Better By Design”: A National Strategy
NZ = Design
Excellence

“THEFUTUREBELONGSTO … SMALL
POPULATIONS… WHOBUILDEMPIRES
OF THEMIND … AND WHO IGNORE THE
TEMPTATION OF—OR DO NOT HAVE THE
OPTION OF—EXPLOITING NATURAL
RESOURCES.”
Source: Juan Enriquez/As the Future Catches You

Spain
Portugal
Italy
Ireland
Singapore
Thailand
Malaysia
Singapore
Philippines
UAE
Oman
Chile
Botswana
Romania
New Zealand
Taiwan

“ ‘MADE IN
TAIWAN’: From
Cheap
Manufacturing to
Chic Branding”
—Headline/Advertising Age/06.05

Taiwan, Your
Partner in
InnoValue
Poster/Bucharest/03.06

Spain
Portugal
Italy
Ireland
Singapore
Thailand
Malaysia
Philippines
Dubai
Oman
Chile
Botswana
Romania
Australia
New Zealand
Taiwan

EXCELLENCE.
EVERYWHERE.
NECESSITY.
ROOTS.

Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute

Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers)
Conceptual Age (creators and empathizers)
Source: Dan Pink, A Whole New Mind

“Human creativity is
the ultimate
economic resource.”
—Richard Florida,
The Rise of the Creative Class

“The Creative Age
is a wide-open
game.”
—Richard Florida, The Rise of the Creative Class

London circa 1976: “You can’t
build a ‘real economy’ on
services, finance,
advertising, etc.”
London circa 2006: deliberately
aims to be the “capital of the
21st century”

CI/Top10 Metro*: Austin,
SF, Seattle, Boston, Raleigh-Durham, Portland,
Minneapolis, Washington-Baltimore,
Sacramento, Denver
CI/Bottom10: Detroit, Norfolk, Cleveland, Milwaukee, Grand Rapids,
Memphis, Jacksonville, Greensboro, New Orleans, Buffalo, Louisville
*> 1M/49 total
Source: Richard Florida, The Rise of the Creative Class

“If youdon’tlike change,
you’re going to like irrelevance
evenless.” —General Eric Shinseki, Chief of Staff.
U. S. Army

“It is notthe strongest of the species that
survives, northe most intelligent, but
the one mostresponsive
to change.” —Charles Darwin

“The most
successful people
are those who
are good at ‘plan B’.”
—James Yorke, mathematician, on chaos
theory in The New Scientist

“Forbes100” from 1917 to 1987: 39 members of
the Class of ’17 were alive in ’87; 18 in ’87
F100; 18 F100 “survivors” significantly
underperformed the market;
just 2 (2%), GE& Kodak,
outperformed the market from
1917 to 1987.
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

“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

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)

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)

Flat as a Pancake (Or Worse)
Wal*Mart … Dell … Intel
… Home Depot …
Microsoft … GE

Day of Shame/end of a glorious era
“I do not accept personal
responsibility for what
happened.” —Patricia Dunn/0928.2006

“It is generally much easier to kill an
organization than change it
substantially.”
—Kevin Kelly, Out of Control

“The difficulties arise from the inherent conflict between the need to
control existing operations and the need to create the kind of
environment that will permit new ideas to flourish—and old ones to
die a timely death. … We believe that most
corporations will find it
impossible to match or
outperform the market without
abandoning the assumption of
continuity. … The current apocalypse—the transition
from a state of continuity to state of discontinuity—has the same
suddenness as the trauma that beset civilization in 1000 A.D.”
Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

(Practical) Implication?
“Go for it!” (Why not—alternative is slow
death, at best)

Axiom: “We are in a brawl with no rules.” (PA)
Implication: “The world will not be kind to
those who ‘play by the rules’.”* (TP)
Strategy: S.A.V./R.F.A. (RP/TP+)
*Axiom: The microprocessor plays by the rules.

“Activemutatorsinplacidtimestendtodieoff.
Theyareselectedagainst.
Reluctantmutatorsinquicklychangingtimesare
alsoselectedagainst.”
—Carl Sagan & Ann Druyan,
Shadows of Forgotten Ancestors

“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

“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.” —Kevin Kelly

“Uncertainty is the
only thing to be sure
of.” –Anthony Muh,
head of investment in Asia, Citigroup Asset Management

“The Silicon Valley of
today is built less atop
the spires of earlier
triumphs than upon the
rubble of earlier
debacles.” —Newsweek/Paul Saffo

TP#1*:
Netscape!
*Where would you rather have worked for those 5 years, Netscape
or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you
rather to be able to tell someone—e.g., grandchild—that you worked?)

RMcK: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RMcK: “What do you mean
by that?”
RN: “Whenever you fail, it
means you’re trying
new things.”
Source: Fast Company

“Wealth in this new regime
flows directly from innovation,
not optimization. That is,
wealth is not gained by
perfecting the known, but by
imperfectly seizing the
unknown.” —Kevin Kelly, New Rules for
the New Economy

New Economy?!
Sergey + Larry >
Harvard/370

“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec

Joe J. Jones
1942 – 2006
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!

“It is the foremost task—and responsibility—of
our generation to re-imagine enterprises and
institutions, public
and private.”
from the back cover of Re-imagine!

EXCELLENCE.
STARTERS.
HORRORS.

Radio City Music Hall
September 2005

Franchise Lost!
TP: “Howmanyof you [600]
reallycrave
a new Chevy?”

“Ford, GMand Chrysler
do not just make cars
expensively … they make
bad cars expensively.”
—Investec analyst, International Herald, 0805.06

My (Les’s) Dinner with Henri
JUSWHATIZZITUMAKE?

My (Les’s) Dinner with Henri
JUST WHAT IS IT
YOU MAKE?

Sluggish + Obese +
Unimaginative + More
Sluggish + More Obese +
More Unimaginative + Even
More Sluggish + Even More
Obese + Even More
Unimaginative = NISSAN +
RENAULT + GM = Innovative
Challenger for Toyota????

??????????????
Crappy Management (GM) +
Arrogant-Overstretched
Management (Carlos G) = Great
Management

Oh, Great …
Ford: Airplane guy.
GM: CFO.

Small cars HQ: LA. Big cars HQ: Dallas.
Corporate HQ: Atlanta.
CEO: Roger Enrico or Lou Gerstner or
Meg Whitman. COO: Bob Nardelli.
Chairman: George Steinbrenner or
Jack Welch or Ross Perot. Vice-
chairman & CFO: Warren Buffett.
Chief Marketing Officer: Brenda Barnes.
Chief Branding Officer: Phil Knight
(or Howard Schultz). Chief Innovation
Officer: Steve Jobs or Jeff Immelt.
Chief/Supply Chain: Raid Wal*Mart
or CostCo or Dell. Chief/Dealer
Relations: Carl Sewell.

“Not long ago, I heard one
studio chief utter the
unthinkable: ‘Whatwouldhappenif I
madea movieI actuallylookedforwardto
seeing?’ ” —Peter Bart, Editor in Chief, Variety; former
Paramount exec, “Hollywood’s Model Doesn’t Produce Art, or
Much Profit” (NYT/0721.06)

Did one of ’em ever turn to
the other and say: “Wow, I
wonder what unimaginable
new tools, otherwise not
possible, will be brought
forth for my daughter Alice,
age 17, because
of this deal?”

Did one of ’em ever turn to
the other and say: “Wow I
wonder what unimaginable
new tools, otherwise not
possible, will be quickly
brought forth for our
customers because of
this deal?”

EXCELLENCE.
STARTERS.
BASICS.
K.I.S.S.

People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.

“Tome businessisn’taboutwearingsuitsor
pleasingstockholders. It’sabout beingtrueto
yourself,yourideasandfocusingon the
essentials.” —Richard Branson

People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.

People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentlessness.

“One of my superstitions had
always been when I started to
go anywhere or to do
anything, not to turnback, or
stop, until the thing intended
was accomplished.” —Grant

"Thereasonablemanadaptshimselftotheworld.The
unreasonableonepersistsintryingtoadapttheworldto
himself.Therefore,all progressdependsuponthe
unreasonableman.”
—GB Shaw, Man and Superman: The Revolutionists' Handbook.

People.
Product.
Clients.
Execution.
Enthusiasm.
Excellence.
Resilience.
Relentlessness.
Senility.

Forget>“Learn”
“The problemis never howto get
new, innovativethoughtsinto your
mind, but how to get the old
ones out.” —Dee Hock

“A pattern emphasized in the case
studies in this book is the degree to
which powerful competitors not only
resist innovative threats, but actually
resist all efforts to understand them,
preferring to further their positions in
older products. This results in a surge
of productivity and performance that
may take the old technology to
unheard of heights. But in most cases
this is a sign of impending death.”
—Jim Utterback, Mastering the
Dynamics of Innovation

Wanted* ** : Corporate
Senility!
*Desperately!
** “The problem is never how to get new,
innovative thoughts into your mind, but
how to get the old ones out.” —Dee Hock

People.
Product.
Invention.
Senility.
Quests.
Tryit.
Screwitup.
Clients.
weirdos
Execution.
Tempo.
Relentlessness.
Enthusiasm.
Boldness.
Character.
Mbwa.
Systems.
Profit.
Excellence.

People.
Product.
Invention.
Senility.
Quests.
Tryit.
Screwitup.
Clients.
weirdos
Execution.
Tempo.
Relentlessness.
Enthusiasm.
Boldness.
Character.
Mbwa.
Systems.
Profit.
Excellence. Always.

Enthusiasm
Energy
Exuberance
Voracious Curiosity
Irritability/Dis-satisfaction
artistic inclination Relentlessness
Self-reliance
“Closer” (Execution)
engagement
excellence

Enthusiasm! Exuberance!
Execution!
Excellence!

MBA-On-A-Single-Slide
P = R - C

“One bank is currently claiming to … ‘leverage
its global footprint to provide
effective financial solutions for
its customers by providing a
gateway to diverse markets.”
—Charles Handy

“I assume that it is just
saying that it is there to
‘help its customers
wherever they are’.”
—Charles Handy

Synonyms
Purity
Transcendence
Virtue
Elegance
Majesty
Antonyms
Mediocrity

Excellence1982: The Bedrock “Eight Basics”
1. A Bias for Action
2. Close to the Customer
3. Autonomy and Entrepreneurship
4. Productivity Through People
5. Hands On, Value-Driven
6. Stick to the Knitting
7. Simple Form, Lean Staff
8. Simultaneous Loose-Tight
Properties”

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

X06/Excellence2006: The Bedrock Baker’s Dozen
1. A Bias For Action/Culture of Execution = Job One!
2. DECENTRALIZATION! ACCOUNTABILITY!
3. Fail. Forward. Fast.
4. Velocity! Tempo! “Metabolic Management” Matters!
5. INNOVATE … or Die.
6. A Damn Good Product. A Damn Cool Product.
7. Ride the Value Added Curve to the Sky: Insure
“Gamechanging Solutions”; Provide “Spellbinding
Experiences”; Become a “Dream Merchant”; Strive to Be
a “Lovemark;” Seek “Tattoo Brand” status.
8. Relentlessly Pursue the “Big Two” Markets: Women,
Boomers & Geezers.
9. Best Talent Wins! Women Rule! HR at the Head Table!
10. Educate for Creativity, Entrepreneurship & “Brand You”
Independence.
11. Demanded: Radical Technology Strategies!
12. Passion! Enthusiasm! Energy! Excitement! Relentlessness!
13. No Less Than EXCELLENCE. Ever.

EXCELLENCE.
GAMECHANGER.
(MAYBE.)

Hardball: Are You Playing to Play or Playing to Win?
by George Stalk & Rob Lachenauer/HBS Press
“The winners in business have always played hardball.”
“Unleash massive and overwhelming force.” “Exploit
anomalies.” “Threaten your competitor’s profit
sanctuaries.” “Entice your competitor into retreat.”
Approximately 640 Index entries: Customer/s
(service, retention, loyalty), 4. People (employees, motivation, morale,
worker/s), 0. Innovation (product development, research &
development, new products), 0.

EXCELLENCE.
CAUSES.
ADVERSARIES.

Causes/1966-2006
Women/Market opportunity
Women/Leaders (right for the times)
Design/Design-as-soul
Wow! (Hot language)
Weird!
Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1)
Brand You (or else)
PSF = Bedrock (add value or bust—every group must
demonstrate economic viability)
PSF + Brand You + WOW Projects = New Biz Logic
Sales/+R > -C (increasing revenue more important than cutting cost)
HealthCare/Wellness-Safety-H5N1
Brand = Talent (best roster wins)
New VA Ladder/Products-Services-SOLUTIONS-
EXPERIENCES-DREAMKETING (Dream Marketing)-LOVEMARK
Different > > Better
Boomers & Geezers/marketing to new “mega-segment”

Adversaries
B-schools (crappy at soft skills, implementation, leadership)
Strategy-is-all
By-the-numbers management
Dis-passionate management
Focus groups
Intuition discounted
Leading as an intellectual task
Leading without passion
Cool language in Hot times
Dilbert (accepting cubicle slavery)
Bigness per se (severe scale limitations—even at Microsoft)
White guys! (not really, but enough already)
18-44 emphasis in marketing (geezers > youth for foreseeable future)
-Cost > +Revenue (cost cutting more important than organic revenue
growth)
CI (continuous improvement in an age of discontinuous world)
LESS THAN THE NO-HOLDS-BARRED PURSUIT OF
EXCELLENCE

“Them” “Us”
Strategy EXECUTION
Planning Action
Marketing Selling/Sales
Markets Customers
Customers Clients
Micro-segmentation Big Stuff (Women, Boomers)
Cost minimization Revenue maximization
Synergy/“Efficiencies” Decentralization
“Strategic” supplier Pioneering supplier
Process Project
Effectiveness Excellence
Men Women
Leadership Management + Leadership
Standardization Exceptionalism (53 = 53)
Big clients COOL clients
Prestigious Board INTERESTING Board

“Them” “Us”
Big Mid-size
Growth by merger Organic growth
Buy market share Create NEW markets
Efficient, streamlined Value-creating “PSF”
“department”
Certainty-predictability Ambiguity-opportunity
Fearful of losing Aggressive pursuit
of winning
Plan Prototype
Careful evaluation Another prototype
Revised plan Another prototype
People/Employees Talent
Effective HR department Rockin’ Talent
Development Center
of Excellence
Benchmark against the Benchmark against the
“best”-“industry leader” “coolest”

“Them” “Us”
Benchmark “Future”mark
Orderly career progression “Up or Out” (PDQ)
Head Heart
IQ EQ
“Professional” Passionate
Stoic, humble leaders Noisy, emotional
“characters” in charge
Hire for Resume Hire for intangibles
Measured-thoughtful Relentless, pig-headed
approach determination
Teamwork comes first Teamwork and disruptive
individuals equal billing
Listen to customers Lead customers
Customer “involvement” Intimate-Seamless
customer inter-twining

“Them” “Us”
MBM (Management MBWA
by memo)
MBA MFA
Shareholder Value Great people-product rule
comes first
Work smart Work hard
Built to last Built to Rock the World
Reward successes Reward (EXCELLENT)
failures
Quality first! Design 1T
Quality first Innovation 1T
High-quality Jaw-dropping Experience
transaction
CVs demo consistent CVs feature Magic Moments
performance
Good grades Cool stuff
Operational excellence World-rocking INNOVATION

“Them” “Us”
Brand Lovemark
Best analysis wins Best STORY wins
“Beyond politics” Politics-is-life, the
rest is details
Outsource Bestsource
“Motivate” Send on QUESTS
“Motivate” Invite
Measured language HOT language
Product-Service Gamechanging SOLUTION,
Thrilling EXPERIENCE,
DREAM come true,
LOVEMARK
Pastel Technicolor
Better Different
“Mission success” “Mission EXCELLENCE”
Very good EXCELLENCE. ALWAYS.

Porter.
Drucker.
Bennis.
Peters.

Importance of Success Factors by Various
“Gurus”/Biased Estimates by Tom Peters
Strategy Systems Passion Execution
Porter 50% 20 15 15
Drucker 35% 30 15 20
Bennis 25% 20 30 25
Peters 15% 25 25 35

Importance of Success Factors by Various
“Gurus”/(Unreliable) Estimates by Tom Peters
Strategy Systems People Passion
Porter 50% 20 20 10
Drucker 25% 35 25 15
Bennis 25% 20 30 25
Peters 15% 20 40 25

Words that may NOT be
used in my presence:
“Motivate”

“In the end, management
doesn’t change culture.
Management invites
the workforce itself to
change the culture.”
—Lou Gerstner

Words that may NOT be
used in my presence:
“Marketing”

Words that may NOT be used in
my presence: “Motivate” …
“Market” … “MBA” … “Plan”
(mostly) … “Worker” … “Job” …
“Task” … “Exceeds
expectations” … “HR” …
“Employee evaluation” … “Man”
(mostly) …“Shareholder Value”

Words that MAY be used in my presence: “Invite”
(v. “Motivate”) … “Sell” (v. “Market”) … “People” (we’d
like to serve) (v. “Market segment”) … “Client” (v.
“Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute”
(v. “Plan”) … “Talent” (v. “Worker”) …
“Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) …
“Wow Project” (v. “Task”) … “Rockin’ (profit-makin’)
PSF” (v. “Department”) … “Theater” (v. “Office”) …
“Breathtaking Experience” (v. “Transaction” that “Exceeds
expectations”) … “Talent Fanatics Inc” (v. “HR”) …
“Brand You adventure” (v “Career development”)
“Annual Report development session” … (v.
“Employee evaluation”) … “Woman” (v. “Man”) …

Words that MAY be used in my
presence: … “Wow!” (v. “Nice”) … “Bloody-
minded”
(v. “Committed”) … “Thank you! (v. “____”) …
“Attack”/Innovate (v. “defend”/Entrench)
… “Great stuff. Great people. ‘Do it’
fanatics.” (v. “shareholder value”) …
“EXCELLENCE.
ALWAYS.”(v. “Good work”)
(v. “shareholder value”)

Radically Thrilling Language!
“Radically Thrilling.”
—BMW Z4 (ad)

EXCELLENCE:
MANAGEMENT
VERSUS (??)
LEADERSHIP

Not!
“Leadership is doing
the right things.
Management is doing
things right.” —WB et al.

The Twain SHALL Meet!
Leadership: Invite
Associates/Colleagues/Talent to
join a Gaspworthy Adventure in
EXCELLENCE which will provide
matchless Personal and Professional
Growth and be of Dramatically
Different Service
to selected Clients
Management: Do it!

Re-imagine! Speech:
Story Line in 100 Words
or Less
Tom Peters/2006

Re-imagine! Speech: Story Line in 100 Words or Less
1. Wildly altered context (technology, China-India,
global terrorism, etc)
2. Only answer: adaptive skills and bold-breathtaking innovation
(top-line focus rather than cost-cutting focus)
3. Race way, way up the value-added curve (implemented “game-
altering solutions” rather than “services,” “experiences” rather
than “transactions,” and much more)
4. As part of value-added exercise, pursue Ripe & Enormous “new”
markets—Women, Boomers & Geezers
5. Radical (!!!) use of IS-IT
6. A “Roster” of Weird & Wondrous & Entrepreneurial “Talent”
engaged in “Wow Projects”
7. “Metabolic Leadership” (Passionate-Radical Leaders who instill a
Discipline of Execution, a Quick Tempo-Adaptive Culture and
an appetite to “Eat Radical Change for Breakfast”)
(96 words by my count)

Everything You Need to Know about “Strategy”: Tom’s Baker’s Dozen Axioms
1. Do you have Awesome Talent … Everywhere? Do you push that Talent to pursue …
Gaspworthy Quests?
2. Is your Talent Pool loaded with Wonderfully Peculiar People who others would
call “problems”? And what about your Extended Community of customers, vendors et al?
3. Is your Board of Directors as Cool as your product offerings … and does it have
50 percent (or at least one-third) Women Members?
4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation
and Entrepreneurship your primary aim? Remember: Innovation … not Imitation!
5. Are the Ultimate Rewards heaped upon those who exhibit an Unswerving “Bias for Action,” to
quote the co-authors of In Search of Excellence?
6. Do you routinely use hot, Aspirational Words-terms like “Excellence” and B.H.A.G. (Big Hairy
Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according
to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto motto?
7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we
want to be the only ones who do what we do”?
8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—
and only want to associate with the ‘best of the best’.”
9. Do you Embrace the New Technologies with child-like enthusiasm and a revolutionary’s zeal?
10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer
with an “awesome experience” that does nothing less than transform the way she or he sees
the world?
11. Do you understand … to your very marrow … that the two biggest under-served markets are
Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends”
(FACTS OF LIFE) requires fundamental re-alignment of the enterprise?
12. Are your leaders Accessible? Do they wear their Passion on their sleeves? Does Integrity ooze out
of every pore of the enterprise? Is “We care” your implicit motto?

This I Believe: Tom’s Super-TIB25
1. TECHNICOLOR Times.
2. Passion! Enthusiasm! Energy!
3. Action/R.F.A./O.O.D.A. Speed.
4. Screw-ups. BIG SCREW-Ups!
5. Mess! Improv!
6. Revolution! Re-imagine!
7. INNOVATE OR DIE!
8. Decentralize!
9. Bulk is BULL! (Mergers don’t work. FOCUS Does!)
10 “Different” > “Better”
11. eALL/Power Tools for Power Strategies!
12. Forgetting/Destruction.
13. Hot Language Matters!
14. WOW!/WOW Projects.
15. VA Bedrock: The “PSF.” (Professional Service Firm.)
16. Daring.
17. Talent Time! Leaders “Do” People!
18. Talent+/Diversity.
19. Talent++/Women Rule!
20. “Brand You” Universe.
21. Design!
22. Gasp-worthy Experiences/Lovemarks.
23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness.
24. Grace.
25. EXCELLENCE!

“Why in the
world did you
go to
Siberia?”

The Peters
Principles: 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.

Business* ** (*at its best): An emotional,vital,
innovative, joyful,creative, entrepreneurial endeavor
that elicits maximumconcertedhumanpotentialin
the wholeheartedservice
of others.***
**Excellence. Always.
***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Business* (*at its “excellent” best) can be: An emotional, vital,
audacious, innovative, joyful, frightening, risky, creative, entrepreneurial
endeavor that breathes life & fire into our work & life & elicits maximum
concerted human potential
in the wholehearted effort to help others ** [**employees, clients,
suppliers, communities, owners, temporary partners]
succeed & profit & imagine & reach places they’d never dreamed they
could go.

Business: The Ultimate
Creative Endeavor.

Business: The Ultimate Personal
Development-Growth
Experience.

Business: The Ultimate
Transcendent Service
Opportunity.

“No leader sets out to be a
leader per se, but rather to
express him- or herself
freely and fully. That is
leaders have no interest in
proving themselves, but an
abiding interest in expressing
themselves.” —Warren Bennis,
On Becoming a Leader

“The role of the Director is to create a
space where the actors and actresses
can becomemorethanthey’veeverbeen
before, morethanthey’vedreamedof being.”
—Robert Altman, Oscar acceptance speech

“Astonishme!” (SD).
“Buildsomethinggreat!” (HY).
“Make it immortal!” (DO)
“Insanely great” (SJ)

HTSH/Hands That Shape Humanity: Engage!*
Commit! Engage! Try! Fail! Get up! Try
again! Fail again! Try again! But never,
ever stop moving on! Progress for
humanity is engendered by those who join
and savor the fray by giving one hundred
percent of themselves to their dreams!
Not by those timid souls who remain
glued to the sidelines, stifled by tradition,
and fearful of losing face or giving offense
to the reigning authorities.
Key words: Commit!Engage!Try!Fail!Persist!
*HTST/Hands That Shape Humanity, Tom Peters’ contribution
to a Bishop Tutu Foundation exhibit

A Comment on Tom Peters in the
Context of the Reagan Revolution …
“Tom Peters and Steve
Jobs did more to makebusiness
cool ‘for the rest of us’
than any others.” —Rich
Karlgaard, publisher, Forbes

Great Companies … SET
THE AGENDA.*
(PERIOD.)
* “disturb the sleep of …

AGENDA SETTERS: “Set the Table”/
Pioneers/ Questors/ Adventurers
US Steel … Ford … Toyota … Sears …
GM … ITT … The Gap … Limited …
Wal*Mart … Tesco … P&G … 3M …
Intel … IBM … Apple … Nokia …
Cisco … Dell … MCI … Sun …
Microsoft … Google … Enron …
Schwab … GE … Laker … Southwest
… People Express … Ogilvy … Virgin
… eBay … Amazon … Sony …
Amgen … BMW … CNN … Nike

Built to Last vs Built for Impact
“But what if [former head of strategic planning at Royal
Dutch Shell] Arie De Geus is wrong in suggesting, in
The Living Company, that firms should aspire to live
forever? Greatness is fleeting and, for corporations, it
will become ever more fleeting. The ultimate
aim of a business organization, an
artist, an athlete or a stockbroker
may be to explode in a dramatic
frenzy of value creation during a
short space of time, rather than to
live forever.” —Kjell Nordström and Jonas Ridderstråle,
Funky Business

Built to Last
vs
Built to Change/Rock the World

GM25/50-75:
“Built to
last”????

“Life is occupied in both perpetuating
itself and in surpassing itself. If all it
does is maintain itself, then living is only
not dying.” —Simone de Beauvoir
“… Longevity has its place, but I’m not
concerned about that now. I just want to
do God’s will, and He’s allowed me to go
up the mountain. And I’ve looked over.
And I have seen the Promised Land.
And I don’t mind. … I may not get there
with you. …” —MLK/Memphis

“In Tom’s world, it’s
always better to try a
swan dive and deliver a
colossal belly flop than
to step timidly off the
board while holding
your nose.” —Fast Company /October2003

No “Last word” models.
Period.

U.S. Steel
Ford
GM
IBM
Macy’s
Sears
Microsoft?
Dell?
Wal*Mart?

“Seeking Growth
in Urban Areas,
Wal*Mart Gets Cold
Shoulder” —WSJ (09.25.06)

EXCELLENCE.
ASPIRATION.
YOU & ME.

“The First stepin a ‘dramatic’ ‘organizational
changeprogram’ is obvious—dramatic
personal change!” —RG

“Work
on me
first.”—Kerry Patterson,
Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

“This is the true joy of Life, the
being used for a purpose
recognized by yourself as a
mighty one … the being a force of
Nature instead of a feverish,
selfish little clod of ailments
and grievances complaining that
the world will not devote itself
to making you happy.”
—GB Shaw/Man and Superman

“Life is not a journey to the
grave with the intention of
arriving safely in a pretty and
well-preserved body—but
rather a skid in broadside,
thoroughly used up, totally
worn out, and loudly
proclaiming, ‘Wow, what
a ride!’ ” —anon.

"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)

A “position” is not
an
“accomplishment.”
—TP

EXCELLENCE.
REVENUE.
MATTERS.
MOST.

“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. Theysaid,
‘Oh my gosh, youneedrevenuesto grow
earningsover time.’
Well, Duh!” —Dick Kovacevich, Wells Fargo

This is not about …
“customer centrism”
“integrated marketing”
etc.
etc.
etc.
It is about …

… sellin’ a whole lotta stuff and
having customers go bananas
with love to the point that
they tell every damn friend they
have and then start buttonholing
strangers on trains and planes
and busses.

M.I.A.*: Talk. (Present.) Listen. (Interview.) Sell.
(Life = Sales.) Do. (Execution-Implementation.) Talent.
(Recruit-Develop-Retain.) Project Management.
(Create. Solicit support. Execution. Adoption-Client “Culture
Change.”) Product. (“It.”) Innovation. (Design.
Creativity. “Buzz-building.” Politics.) Leadership. (USMA,
etc.) E.Q. (Connect.) “Culture” Change. (Lasting
impact.) Diversity. (Cross-cultural Effectiveness.)
Career Creation. (Brand You life-lifestyle.)
Wellness. (Life.)
*B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

“TAKE THIS QUICK QUIZ: Who manages more
things at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills?
Who is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer ‘to
do’ list? Who enjoys a recap to the day’s
events? Who is better at keeping in touch with
others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can
Outsell Men, Nicki Joy & Susan Kane-Benson

TP.27 …
on Selling
(Short) (Personal)

Out-prepare!! (huge time commitment!)
Learn the “culture”
Practice!
Care-Empathy
Listen-Empathetic listening (SC)
“Listen”-Body language
K.I.S.S. (1-page summary. 1 = 1.)
Enthusiasm-ENERGY-“Authenticity”!!
OBVIOUS belief in product
Selling: Solution-Success-Experience-Dream come true-Love-Dramatic Difference
Selling: Better STORY! (“Best story wins”)
Selling: Yourself! (Brand you)
“Obvious” Wow!
No exaggeration!
Spell out commitments!
SIMPLE timeline
Sell “inside”-First! Thorough!
Relationships-“Way down”!!
Time!!!! (E.g., build trust)
Ooze integrity
Introduce to rest of team, esp. “mechanics”
SBWA (5K for 5M)
Remember: Close!
Gotta-make-a-profit (be ready to walk away!)
“Good loss”
Don’t dis competitors!!
Make her-him-target SUCCESSFUL (in a personal way)

“It’s always showtime.”
—David D’Alessandro, Career Warfare

GE (more or less):
The Sales122:
122 Ridiculously
Obvious Thoughts
About Selling Stuff
Tom Peters/0402.2006

See below (End of
presentation)

EXCELLENCE.
VALUE ADDED.
UP THE LADDER.

EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.

And the “M” Stands for … ?
Gerstner’s IBM: “Systems
Integrator of choice.”/BW
(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )
IBM Global Services* (*Integrated Systems
Services Corp.): $55B

Planetary Rainmaker-in-Chief!
“Palmisano’s strategy is
to expand tech’s borders
by pushing users—and
entire industries—toward
radically different
business models. The payoff for IBM
would be access to an ocean of revenue—Palmisano
estimates it at $500 billion a year —that technology
companies have never been able to touch.” —Fortune

“By making the Global Delivery Model both legitimate and mainstream,
we have brought the battle to our territory. That is, after all, the purpose
of strategy. We have become the leaders, and incumbents [IBM, Accenture]
are followers, forever playing catch-up. … However, creating a new
business innovation is not enough for rules to be changed. The
innovation must impact clients, competitors, investors, and society. We
have seen all this in spades. Clients have embraced the model and are
demanding it in even greater measure. The acuteness of their
circumstance, coupled with the capability and value of our solution, has
made the choice not a choice. Competitors have been dragged kicking
and screaming to replicate what we do. They face trauma and disruption,
but the game has changed forever. Investors have
grasped that this is not a passing
fancy, but a potential restructuring
of the way the world operates and
how value will be created in the
future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report

“Big Brown’s New Bag: UPS
Aims to Be the Traffic
Manager for Corporate
America”—Headline/BW/2004

“SCS”/Supply Chain
Solutions: 750 locations;
$2.5B; fastest growing
division; 19 acquisitions,
including a bank
Source: Fast Company

“Security ‘devices’”
to “Turnkey security
solutions” (A/C, elevators, DIY,
photo shops, etc, etc)

Home Depot Business
ToolBox: Payroll processing.
Credit card processing. Personnel
paperwork. Mobile phones. Shipping. Health
insurance. 12K customers (plumbers,
electricians, small homebuilders and
contractors).
Source: Forbes, 0918.06

Gamechanging “Solutions”: Bet-the-Company
IBM
UPS
Xerox
MasterCard
GE
BestBuy

I. LAN Installation Co. (3%)
II. Geek Squad. (30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.

Huge: Customer
Satisfaction versus
Customer
Success

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

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

EXCELLENCE.
NECESSITY.
OPPORTUNITY.

“ ‘Disintermediation’ is overrated. Those who fear
disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
way of saying that … you’ve
become irrelevant to
your customers.”
—John Battelle/Point/Advertising Age/07.05

Sarah: “ Mom, what
do you do?”
Mom: “I’m ‘overhead.’”

“support function” /
“cost center”/
“overhead”
or …

Are you … “Rock Stars of the Age
of Talent”

EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)

Department Head
to …
Managing Partner,
IS [HR, R&D, etc.] Inc.

“Typically in a mortgage company or financial
services company, ‘risk management’ is an
overhead, not a revenue center. We’ve become
more than that. We pay for
ourselves, and we
actually make money for
the company.” —Frank Eichorn, Director of
Credit Risk Data Management Group, Wells Fargo Home Mortgage
(Source: sas.com)

Core Mechanism:
“Game-changing Solutions”
PSF
(Professional Service Firm “model”/The Organizing Principle)
+
Brand You
(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects
(“Different” vs “Better”/The Work)

The New Enterprise Value-Added Equation/Mark2006
(1) 100% “WOW PROJECTS”
(New Org “DNA”/“The Work”)
+
(2) Incredible “TALENT” Transformed into
(3) Entrepreneurial “BRAND YOUs” and
(4) Launched on Awesome “QUESTS FOR EXCELLENCE”
=
(5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly
Innovative Professional Service Firms) …
(6) Which Coalesce to Transform the FEVP/Fundamental Enterprise
Value Proposition from “Superior Products & Services” to
“ENCOMPASSING SOLUTIONS” &
“GAME-CHANGING CLIENT SUCCESS”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”
(1) The Talent: “Best Roster” of Entrepreneurial-
minded Brand Yous.
(2) The (Virtual) Organization: Internal or
External “PSF”/Professional Service Firm
working with “Best Anywhere” = Engine of
Value Added through the Application of Creative
“Intellectual Capital”
(3) The Work Product: “Game Changer”/
“Gaspworthy” WOW Projects

Core Mechanism:
PSF
+
BrandYou
+
Wow! Projects

“Solutions World”: The
Mega-PSF

Big Idea: “Corporation” as
Mega-“PSF”(Professional
Service Firm*)
* “Virtual” Collection of Entrepreneurially-minded
Professionals (“Talent”/“Roster”) Creating/Applying
Intellectual Capital (“Work Product”)

Core Mechanism:
Brand You(S)
+
Wow! Project(s)
=
PSF(S)
=
“Corporation” as
“Mega-PSF”

Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers)
Conceptual Age* (creators)
*Murakami Teruyasu: “Age of Creation Intensification”
Source: Dan Pink, A Whole New Mind

The “PSF35”:
Thirty-Five
Professional Service Firm
Marks of Excellence

The PSF35: The Work & The Legacy
1. CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the
Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”

?????
Do good (excellent?!) work
Make a lot of money

R.POV8*
*Remarkable Point Of View/8 Words or less/“If you can’t state your
position in eight words or less you don’t have a position.”—SG

“If you can’t write your
movie idea on the back
of a business
card, you ain’t got a
movie.” —Samuel Goldwyn

The PSF35: The Client Experience
11. Always team with client: “full partners in
achieving memorable results” (Wanted: “Chimeras
of Moonstruck Minds”!)
12. We will seek assistance Anywhere to assemble the Best-in-
Planet Team for the Project
13. Client Team Members routinely declare that working with us
was “the Peak Experience of my Career”
14. The job’s not done until implementation is
“100.00% complete” (Those who don’t “get it” must go)
15. IMPLEMENTATION IS NOT COMPLETE UNTIL
THE CLIENT HAS EXPERIENCED “CULTURE
CHANGE”
16. IMPLEMENTATION IS NOT COMPLETE UNTIL
SIGNIFICANT “TECHNOLOGY TRANSFER HAS
TAKEN PLACE-ROOT (“Teach a man to fish …”)
17. The Final Exam: DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?

“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.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale

The PSF35: The People & The Leadership
18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)
19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old,
same old”)
20. Early Opportunities (vs. “Wait your turn”)
21. Up or Out (Based on “Legacy”/Mentoring as much as
“Billings”/“Rainmaking”)
22. Slide the Old Aside/Make Room for Youth (Find oldsters
new roles?)
23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO
DAY #“R” [R = Retirement]
24. Office/Practice Leaders Evaluated Primarily on
Mentoring-Team Building Skills
25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)
26. Team Leadership Skills Valued Early
27. Partner with B.I.W. [Best In World] Outsiders as Needed
and to Infuse Different Views

The PSF35: The Firm & The Brand
28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is
my message”—Gandhi)
29. Excellence+ in EXECUTION … 100.00% of the Time
(No such thing as a “small sins”/World Series Ring to
the Batboy!)
30. “Drop everything”/“Swarm” to Support a Harried-On
The Verge Team
31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR
CIRQUE DU SOLEIL
32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO,
old EDS)
33. Web (Technology) Obsession
34. BRAND/“LOVEMARK” MANIACS (Organize Around a Point
of View Worth BROADCASTING: “You must be the
change you wish to see in the world”—Gandhi)
35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as
much a place at the Head Table in a “PSF” as in a
widgets factory: “You can’t behave in a calm, rational
manner. You’ve got to be out there on the lunatic
fringe”—Jack Welch)

The PSF35: The Firm & The Brand
28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life
is my message”—Gandhi)
29. Excellence+ in EXECUTION … 100.00% of the Time
30. “Drop everything”/“Swarm” to Support a Harried-On
The Verge Team
31. SPEND ON R&D LIKE A TECH FIRM.
32. A PROPRIETARY METHODOLOGY (FBR, McKinsey,
Chiat Day, IDEO, old EDS)
33. BRAND MANIACS (Organize Around a Point of View Worth
BROADCASTING)
34. PASSION! ENTHUSIASM!
35. EXCELLENCE. ALWAYS.

“PSF” Nirvana
Counselor
Trusted Advisor

PSF (Professional Service
Firm) + BY (Brand You) +
WP (WOW Projects) +
DD (Dramatic Difference)
+ E (Excellence) =
UVA (Unassailable
Value-Added)

“Big Brown’s New Bag: UPS
Aims to Be the Traffic
Manager for
Corporate
America” —Headline/BW/2004

Static/Imitative
Integrity.
Quality.
Continuous Improvement.
Superior Service (Exceeds Expectations.)
Completely Satisfactory Transaction.
Smooth Evolution.
Market Share.
Dynamic/Different
Dramatic Difference!
Disruptive!
Insanely Great! (Quality++++)
Life-(Industry-)changing Experience!
Game-changing!
WOW!
Surprise!
Delight!
Breathtaking!
Punctuated Equilibrium!
Market Creation!

EXCELLENCE =
Flawless EXECUTION
+ Continuous IMPROVEMENT
+ Brilliantly Trained PEOPLE
+
Gamechanging QUESTS +
WEIRD Rosters +
GASPWORTHY Results

EXCELLENCE.
ATTITUDE.
TRANSFORMATION.
PSF.

Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?

Fleet Manager
Rolling Stock Cost
Minimization Officer
vs/or
Chief of Fleet Lifetime
Value Maximization
Strategic Supply-chain Executive
Customer Experience Director
(via drivers)

“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)

HCare CIO: “Technology
Executive” (workin’ in a hospital)
Or/to: Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Healing-Services
Team (who happens to be a techie)

PSF Transformation: Credit Department/Trek
Was Is
Credit Dept Financial Services
Hammer on dealers until Make dealers successful so they
they pay CAN pay
AR sold to 3rd party Trek is the commercial financial
commercial co. Company
23 employees 12 employees
Oversee peak AR of $70M Oversee peak AR of $160M
Identify risky dealers Identify opportunities
Cost Center Profit Center
No products Products: Consulting, MC/Visa,
Stored value of gift cards, Gift card
peripherals, Online payments
Source: John Burke/0330.06

Trapper: <$20
per beaver pelt.
Source: WSJ

WDCP*: $150 to remove
“problem beaver”; $750-
$1,000 for flood-control
piping … so that beavers can
stay.
*“Wildlife Damage-control Professional”
Source: WSJ

Your Current Project?
1. Another day’s work/Pays
the rent.
4. Of value.
7. Pretty Damn Cool/Definitely
subversive.
10. WEAIMTO CHANGETHE
WORLD. (Insane!/Insanely
Great!/WOW!)

“Astonishme!” (S.D).
“Buildsomethinggreat!” (H.Y.).
“Makeit immortal!” (D.O.)

If you are not
prepared to be
fired over your beliefs
… you are working on
the wrong project. —TP

Will you actually
remember it as
worthwhile 10 years from
now?” —S.H.

You! =
Your Project Portfolio!

WOW! Projects:
Nuts & Bolts (a few)

Playmate!*
Playpen!
*Can be Client, supplier … as well as Insider

Playmate!*
Playpen!
Prototype!
*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:
F.F.F.F.
(Find a Fellow Freak Faraway)

Forward, march: The “Sri
Lanka Stratagem”

Where NOT to look for “Playmates”: BIG
Division, BIG Customer,
BIG Vendor, UP

Culture of Prototyping
“Effective prototyping may be
the mostvaluable core competence an
innovative organization can
hope
to have.” —Michael Schrage

Starting a WOW!
Projects
Epidemic: Demos,
Heroes, Stories!

Premise: “Ordering”
Systemic Change is a
Waste of Time!

“Somewhere in your
organization, groups of
people are already doing
things differently and
better. To create lasting
change, find these areas of
positive deviance and fan
the flames.” —Richard Tanner Pascale & Jerry
Sternin, “Your Company’s Secret Change Agents,” HBR

“Some people look for
things that went wrong
and try to fix them. I
look for things that
went right, and try to
build off them.” —Bob Stone
(Mr ReGo)

Demo = Story
“A key – perhaps the key –
to leadership is the
effective communication
of a story.”
—Howard Gardner, Leading Minds:
An Anatomy of Leadership

REAL Org Change: Demos & Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to
reinvent gov’t”)/ Stories & Storytellers (Props!)/
Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/
New Language (Hot/Emotional/WOW)/ Seekers
(networking mania)/ Protectors/ Support Groups/
End Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field “Real
People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Lessons from an Uncivil Servant

JKC
1. Scour for renegades;
wine & dine.
2. Go outside for funds.

“Make your own
McKinsey” (AP)

Build a “School on top of
a school”/Continuing-
Exec Ed (The Parallel Universe
Strategy)

Stories… Paint me a picture… Story
“infrastructure” … Demos… Quickprototypes…
Experiments … Heroes … Renegades…
Skunkworks… DemoFunds…V.C. … G.M. …
Roster … Portfolio… Stone’sRules… JKC’sRules

Tempo: He who has the
quickest O.O.D.A. Loops*
wins!
*Observe. Orient. Decide. Act. / Col. John Boyd

Subversive Change
Be(very)ware “genetic constraints” (history’s looong arm)
You must “do” Gandhi
Hire weird (fulltime or temp)
Find the extant crazies (troll for them via offers to join
weird project teams)
Create a (quiet) “Crazies Club”/Keep extendin’ the Web
Create “boondocks projects” by the truckload (with
partners of every flavor)
Understand: Yours is a “protection racket”
Sky High Standards!! (There’s a deadly serious reason for
“all this”—life or death)
TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway;
Kelly Johnson; John Boyd

“Never doubt that a small
group of committed people
can change the
world. Indeed it is
the only thing that
ever has.” —Margaret Mead

SP: “But can you turn a ‘defensive player’
into an ‘offensive player’?”
TP: “Yes! Work with him/her to re-frame
their principal project to the point that
their ego is fully engaged and it becomes
something of a ‘life compulsion.’ ” *
* “If you and I had $150K in the bank and on the line
and the day before the opening the Fire Inspector …”

EXCELLENCE.
VALUE-ADDED LADDER II.
EXPERIENCE IT.

“Experiences are as distinct
fromservices as servicesarefrom
goods.” —Joe Pine & Jim Gilmore, The Experience
Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …
“We have
identified a ‘third
place.’ And I really believe
that sets us apart. The third place is
that place that’s not work or home. It’s
the place our customers come for
refuge.” —Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”
“Whatwe sellis the abilityfor a 43-year-old
accountantto dress in blackleather, ride through
small townsand have peoplebe afraid
of him.”
Harley exec, quoted in Results-Based Leadership

“Club Med is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption

The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials

Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“OperationPersonal Renewal”

Q: “Why did you buy Jordan’s
Furniture?”
A: “Jordan’s is spectacular.
It’s all showmanship.”
Source: Warren Buffet interview/
Boston Sunday Globe/12.05.2004

C O*
*Chief eXperience Officer

“Most executives have
no idea how to add value
to a market in the
metaphysical world. But
that is what the market will cry
out for in the future. There is no
lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance

EXCELLENCE.
EXPERIENCE.
BONUS.

Where Are Your
“2-cent Candies”?
Beltramo’s checkout.
SFFD door-to-door fire-
hazard check.
Carpet installer booties.
Singapore candies @
Immigration

And You?
Stockholm: blanket
at outside
table (August)

The … Jim Jeffords
oversight!

EXCELLENCE.
DRAMATIC.
DIFFERENCE.
DOABLE.

“The ‘surplus society’ has a surplus of similar
companies, employing similar people, with
similar educational backgrounds, coming up with
similar ideas, producing similar things,
with similar prices and similar quality.” —
Kjell Nordström and Jonas Ridderstråle, Funky Business

This is not a
“mature
category.”

This is an
“undistinguished
category.”

“When we did it
‘right’ it was still
pretty ordinary.”
—Barry Gibbons on “Nightmare No. 1”

$415/SqFt/Wal*Mart
$798/SqFt/Whole
Foods

#1/100
“Best Companies to
Work for”/2005

7X. 730A-800P.
F12A.*
*’93-’03/10 yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.

“It’s simple, really,
Tom. Hire for s, and,
above all, promote for
s.”
—Starbucks middle manager/field

“A manwithout a smiling face
must not opena shop.” —Chinese
Proverb

Donnelly’s
Weatherstrip
Service
Weymouth MA

Jim’s Group
Jim Penman/“Empire Builders”/MT /
Jan/Feb 2006/Australia

Jim’s Group: Jim Penman.* 1984: Jim’s
Mowing. 2006: Jim’s Group. 2,600
franchisees (Australia, NZ, UK). Cleaning. Dog
washing. Handyman. Fencing. Paving. Pool care. Etc.
“People first.” Private. Small staff. Franchisees
can leave at will. 0-1 complaint per year is
norm; cut bad ones quickly.
*Ph.D. cross-cultural anthropology; mowing on the side
Source: MT/Management Today (Australia), Jan-Feb 2006

The “Missing 900M”
Will the Boat Sink the
Water: The Life of
China’s Peasants
—Chen Guidi and Wu Chuntao

And the Winner is …
1. Audacity of Vision
2. Innovation/R&D/Design
3. Talent Acquisition &
Development
4. Resultant “Experience”
5. Strategic Alliances
6. Operations
7. Financial Management
8. Overall/Sustaining Excellence
9. “Wow!”
10. Lovemark!

“Every time we come to a
comfort zone, we will find a way
out.” “No Cloning.” “‘Reinvent
the brand’ with each new show.”
“A typical day at the office for
me begins by asking, ‘What is
impossible that I am going to do
today?’” —Daniel Lamarre, president,
Cirque du Soleil

WallopWal*Mart16*
*Or: Why it’s so ABSURDLY EASY
to BEAT a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “mini-
Wal*Mart.)
*Never attack the monsters head on! (Instead steal niche
business and lukewarm customers.)
*“Dramatically
Different”(La Difference ... within our community, our
industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS
WHERE MOST MIDGETS COME UP SHORT.)
*Compete on value/experience/intimacy, not price. (You
ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
*Emotional bond with Clients, Vendors. (BEAT THE BIGGIES
ON EMOTION/CONNECTION!!)

“This is an essay about what it takes to create and sell something remarkable. It is a
plea for originality, passion, guts and daring. You can’t be remarkable by following
someone else who’s remarkable. One way to figure out a theory is to look at what’s
working in the real world and determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-
Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and
Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive
looking in the rearview mirror. The thing that all
these companies have in
common is that they have
nothing in common. They are outliers. They’re
on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big
or extremely small. The reason it’s so hard to follow the leader is this: The leader is
the leader precisely because he did something remarkable. And that remarkable
thing is now taken—so it’s no longer remarkable when you decide to do it.”
—Seth Godin, Fast Company

*Hands-on, emotional leadership. (“We are a great &
cool & intimate & joyful & dramatically different team working to
transform our Clients lives via Consistently Incredible
Experiences!”)
*A community star! (“Sell” local-ness per se. Sell the hell
out of it!)
*An incredible experience, from the first to last
moment—and then in the follow-up! (“These guys
are cool! They ‘get’ me! They love me!”)
*DESIGN DRIVEN! (“Design” is a premier weapon-in-
pursuit-of-the sublime for small-ish enterprises, including the
professional services.)

*Employer of choice. (A very cool, well-paid
place to work/learning and growth experience in at
least the short term … marked by notably progressive
policies.) (THIS IS EMINENTLY DO-ABLE!!)
*Sophisticated use of information
technology. (Small-“ish” is no excuse for “small
aims”/execution in IS/IT!)
*Web-power! (The Web can make very small very
big … if the product-service is super-cool and one
purposefully masters buzz/viral marketing.)
*Innovative! (Must keep renewing and expanding
and revising and re-imagining “the promise” to
employees, the customer, the community.)

*Brand-Lovemark* (*Kevin Roberts) Maniacs!
(“Branding” is not just for big folks with big budgets. And modest
size is actually a Big Advantage in becoming a local-regional-
niche “lovemark.”)
*Focus on women-as-clients. (Most don’t. How stupid.)
*Excellence!(A small player … per me …
has no right or reason to exist unless they are in Relentless
Pursuit of Excellence. One earns the right—one damn day and
client experience at a time!—to beat the Big Guys in your chosen
niche!)

tompeters: what I’veLearned
about “Small Business”

Passion for PRODUCT.
OBSESSION With Product.
LOVE The Product.
Aim To Be “ONLY ONES WHO DO WHAT WE DO.”
Keep ADDIN’ Stuff.
Invest “UNWISELY” in R&D.
Reside Permanently In The DISCOMFORT Zone.
“Unhealthy” PARANOIA Is A Good Thing.
Add Clients That PUSH-PULL.
SELL. SELL. SELL. SELL.
Go For Broke: CUSTOMER CONTACT PEOPLE.
PERFECTION: Customer Contact People.
Hire for ATTITUDE.
INVITE On An Adventure.
GREAT CFO/Biz Guy-Gal.
NASTY CFO/Biz Guy-Gal.
QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-
Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)

Seminars + Travel: 65%
Research & Writing: 40-50%*
Admin/“Stuff”: 15%
*Greater than 100%; considerable research-writing is performed on
the road

GREAT Logo.
DESIGN!
“OVERDO” Marketing Materials.
WOMEN Roar. WOMEN Rule. WOMEN Buy.
Diversity = $$$$$$
Be RELENTLESS. Cut And RUN.
Product Includes-Features the PACKAGING.
Define Your DRAMATIC DIFFERENCE (R.P.O.V.8)
Best STORY Wins.
DRESS For Success.
First Goal: AMUSE Yourself.
Know YOURSELF.
DON’T Do Stuff You Hate.
“Over-invest” In RELATIONSHIPS.
(R.O.I.R.: Return On Investment in Relationships)
SYSTEMATICALLY “Manage” Relationships.
“Work” The SUPPORT PEOPLE In Client Orgs.

BLOG As If Your Life Depended On It.
SOPHISTICATED Use Of Infotech.
RESPONSE To Problems.
Make ’Em PAY.
CLOSE The Sale.
Invest BIGTIME In PR.
Media FRIENDLY.
Live-To-SCHMOOZE.
Fun/Laughter = $$$$
MBWA: Stay In Touch.
“You Must Be The Change You Wish
To See In The World”/GANDHI
5K For 5M.
Your CALENDAR Never Lies.
OUT: Pastels. IN: Technicolor

JUST SAY “NO” TO C.E.O.: CIO/Chief Innovation
Officer. CSO/Chief Sales Officer. CWO/
Chief Wow Officer
EXCELLENCE Is Very Cool.
“MICRO-MANAGE” Your Reputation.
Wear Your Integrity On Your SLEEVE.
KEEP Your Promises.
EXECUTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
“A Man Without A Smiling Face
MUST NOT Open His Shop.”
RECOGNITION!
Work HARD, Not Smart.
“Insanely Great.” THE STANDARD.

Tom/2006/Q97-Q100
Study more.
Renew more.
Tailor more.
Offer more.
Listen more.
Market more.
Practice more.
Challenge more.
Socialize more.
Smile more.
Follow-up more.
Plan execution more.
Cost control more.

The Fab Five: What Every Small Biz Needs
Success = DDMMPR/
"D-squared, M-squared, PR” =
DramDiff + Money-Financial
Acumen + Good “Marketing”
Instincts + Stellar People +
Resilience

Hmmm …
Bacteria. (“Left tail” limits.)
Productivity of small.
Failure rate of Big Mergers.
Failure rate of Big Companies.
Terrorists.
Galbraith vs Hayek.

Productivity Pandemic
IMAOA: Institute of Modest
Advances in (Many, Many) Ordinary
Activities

“While many people big oil finds
with big companies, over the years
about 80 percent of the oil
found in the United States has been
brought in by wildcatters such
as Mr Findley, says Larry Nation,
spokesman for the American
Association of Petroleum
Geologists.” —WSJ, “Wildcat Producer Sparks Oil
Boom in Montana,” 0405.2006

Small Giants:
Companies That
Choose To Be
Great Instead Of
Good —by Bo Burlingham

Small Giants/Bo Burlingham
"First, I could see that, unlike most entrepreneurs,
their founders and leaders had recognized the full
range of choices they had about the type of company
they would create."
"Second, the leaders had overcomethe enormouspressuresonsuccessful
companiesto takepathstheyhadnot chosen and did not necessarily want
to follow."
"Third, each company had an extraordinarilyintimaterelationshipwiththe
localcity,town, or county in which it did business -- a relationship
that went well beyond the usual concept of `giving
back.'"
"Fourth, they cultivated exceptionallyintimaterelationshipswithcustomersand
suppliers, based on personal contact, one-on-one
interaction, and mutual commitment to delivering on
promises."

Small Giants/Bo Burlingham
"Fifth, the companies also had what struck me as
unusually intimateworkplaces."
"Sixth, I was impressed by the variety of corporate
structures and modes of governance that these
companies had come up with."
"Finally, I noticed the passion that the leaders brought to
what the company did. Theylovedthesubjectmatter, whether it be
music, safety lighting, food, special effects, constant
torque hinges, beer, records storage, construction,
dining, or fashion."

The Small*Mart
Revolution: How
Local Businesses
Are Beating Local
Competition —Michael Shuman

I [“Bacteria Man”] HEREBY PLEDGE:
When asked, “What are some examples
of companies stepping up to today’s
challenges?” … I will … NEVER
AGAIN … offer an example of a
Giant Company; instead I’ll refer to
Cirque du Soleil, Donnelly’s Weatherstrip
Service, 3K tanning salons, 10.6M
women-owned businesses (or the
typically/95+% female recipients of
micro-lending) …*
*There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”

EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.

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

The Marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’ dreams.
Dreamketing: The art of telling stories
and entertaining.
Dreamketing: Promote the dream,
not the product.
Dreamketing: Build the brand around
the main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni

Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We selldreams. 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

“No longer are we only an insurance
provider. Today, we also offer
our customers the products
and services that help them
achieve their dreams —
whether it’s financial security, buying
a car, paying for home repairs, or even
taking a dream vacation.” —Martin Feinstein,
CEO, Farmers Group

Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness,
Friendship and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business

Six Market Profiles
1. Adventures for Sale/ IBM-UPS
2. The Market for Togetherness, Friendship
and Love/ IBM-UPS
3. The Market for Care/ IBM-UPS
4. The Who-Am-I Market/ IBM-UPS
5. The Market for Peace of Mind/ IBM-UPS
6. The Market for Convictions/ IBM-UPS
Rolf Jensen/The Dream Society: How the Coming Shift from

The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Services
Goods
Raw Materials

The (NEW) Value-added Ladder
DreamsComeTrue
SpellbindingExperiencesGamechanging
Solutions
Services
Goods
Raw Materials

“The sun is setting on the Information Society—even
before we have fully adjusted to its demands as
individuals and as companies. We have lived as hunters
and as farmers, we have worked in factories and now we
live in an information-based society whose icon is the
computer. We stand facing the
fifth kind of society: the
Dream Society. … Future products will
have to appeal to our hearts, not to our heads. Now is the
time to add emotional value to products and services.”
Rolf Jensen/The Dream Society:How the Coming Shift from

EXCELLENCE.
VALUE-ADDED LADDER IV.
LOVE IT.

“Brands have
run out of
juice. They’re
dead.” —Kevin Roberts/Saatchi & Saatchi

Brand …………………………………………………. Lovemark
Recognized by consumers ………………. Loved by People
Generic ………………………………………………… Personal
Presents a narrative ………………….. Creates a Love story
The promise of quality ……………… A touch of Sensuality
Symbolic ………………………………………………….. Iconic
Defined ………………………………………………….. Infused
Statement ………………………………………………….. Story
Defined attributes ……………………... Wrapped in Mystery
Values ………………………………………………………. Spirit
Professional …………………………... Passionately Creative
Advertising agency ………………………….. Ideas company
Source: Kevin Roberts, Lovemarks

“When we were working
through the essentials of a
Lovemark, Mystery
was always at the top of the
list.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

“Lovemarks are
owned by the
people who love
them.” —Lovemarks: The Future Beyond
Brands, Kevin Roberts

Tattoo Brand: What %
of users would tattoo the
brand name on their body?

Top 10 “Tattoo Brands”*
Harley.… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi.... 6.1
Rolex…. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom

Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Your name here … ??
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom

The Value-added Ladder/ ECSTASY
Lovemark
Dreams Come True
Services
Goods
Raw Materials

Lovemark?!
IBM
UPS
PSF
Logistics “Department”
HR “Department”

Ladder.2006: 4 of 7!
Lovemark
Dreams Come True
Services
Goods
Raw Materials

EXCELLENCE.
SOUL I.
THE STORY.

“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell

C O*
*Chief Storytelling Officer

“We are in the twilight of a society based on data. As
information and intelligence become the domain of
computers, society will place more value on the one human
ability that cannot be automated: emotion. Imagination, myth,
ritual - the language of emotion - will affect everything from
our purchasing decisions to how we work with others.
Companies will thrive on
the basis of their stories
and myths. Companies will need to
understand that their products are less important than their
stories.” —Rolf Jensen, Copenhagen Institute for Future Studies

Franchise Lost!
TP: “How many of you [600]
reallycrave a new
Chevy?”
NYC/IIR/061205

All Equal Except …
“At Sony we assume that all products
of our competitors have basically the
same technology, price, performance
and features. Design is the only
thing that differentiates one
product from another in the
marketplace.” —Norio Ohga

“Design is treated
like a religion
at BMW.” —Fortune

“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
meaning of design. Designis the
fundamental soul of a man-made
creation.” —Steve Jobs

“With its carefully conceived mix of colors and textures,
aromas and music, Starbucks is more indicative of our
era than the iMac. It is to the Age of Aesthetics what
McDonald’s was to the Age of Convenience or Ford was
to the Age of Mass Production—the touchstone success
story, the exemplar of … the aesthetic imperative. …
‘Every Starbucks store is carefully
designed to enhance the quality of
everything the customers see, touch,
hear, smell or taste,’ writes CEO Howard
Schultz.”
-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness

Marketing “Magic”*
The “Missing 95%”:
TheUnconscious!
*E.g. ZMET/Zaltman Metaphor Evaluation Technique

EXCELLENCE.
SYSTEMS.
DESIGN.
K.I.S.S.

“One bank is currently
claiming to … ‘leverageits global
footprint to provideeffective financial
solutionsfor itscustomersby
providing a gatewayto diverse
markets.”
—Charles Handy

"A business unit strategy
should be less than fifty pages
long and should be easy to
understand. Its essence should
be describable in one page ... If
you can't describe your strategy
in twenty minutes, simply and
in plain language, you haven't
got a plan.” —Larry Bossidy

First Steps: “Beauty Contest”!
1. Select one form/document:
invoice, airbill, sick leave policy,
customer returns claim form.
2. Rate the selected doc on a scale of
1 to 10 [1 = Bureaucratica
Obscuranta/Sucks; 10 = Work of
Art] on four dimensions: Beauty.
Grace.
Clarity. Simplicity.
3. Re-invent!
4. Repeat, with a new selection,
every 15 working days.

“I wanted GE to operate with the
speed, informality, and open
communication of a corner
store. Corner stores often have
strategy right. With their limited
resources, they have to rely on
laser-like focus on doing one
thing very well.” —Jack Welch/
Fortune/04.05

Lee’s Rule: Run
It off a
Blackberry!

EXCELLENCE.
NEW VALUE
EQUATION.
NEW “C-levels”.

C O*
*Chief Conversations Officer

C O*
*Chief talentacquisition Officer

C O*
*Chief freaks acquisition Officer

C O*
*Chief Transcendence Officer

“What Isn’t
Matter Is What
Matters”
—section title, Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell

VA “Teaching Moment”
“Andy pointed to a
molding, about
halfway up the wall
…”

EXCELLENCE.
NEW MARKETS.
ENORMOUS.
OPPORTUNITIES.

EXCELLENCE.
OPPORTUNITY.
WOMEN.

“Idiot”is
too kind a
word.

“That’s a very
diverse* team.”
—Patrick Cescau, CEO, Unilever**
*1 of 14 Board of Directors members is a woman
(not an exec); 2 of 7 Exec Team members
are … Indians. (Source: FT/24-25 June.)
**Approximately 85%of Unilever’s
products are purchased by … women.

“That’s a
VERY
diverse team.”
—Patrick Cescau, CEO, Unilever* **
*1 of 14 Board of Directors members is a woman
(not an exec); 2 of 7 Exec Team members
are … Indians. (Source: FT/24-25 June.)
**Approximately 85% of Unilever’s products
are purchased by … women.

“That’s a VERY
sick man.”
—Tom Peters

“Idiots”is
too kind a
word.

????????
Weenie of the
year, 2006 …

“To be a leaderinconsumerproducts,
it’scritical to haveleaderswho
represent thepopulationwe serve.”
—Steve Reinemund/PepsiCo

Good Thinking, Guys!
“Kodak Sharpens Digital Focus
On Its Best Customers:
Women”
—Page 1 Headline/WSJ/0705

EXCELLENCE.
WOMEN
BUY.
EVERYTHING.

“Women are
the majority
market”
—Fara Warner/The Power of the Purse

?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care … 80%

Women
Household spending: 80%
Investment decisions: 53%
Home improvement purchase decisions: 80%
New cars: 60%+
Computers: 60%
Managers and professionals, overall: 51%
New businesses started: 70%* (*Women-owned
businesses as a share of all new businesses: Employee
growth, 3X; Sales growth, 4X.)
Source: Marti Barletta, PrimeTime Women (2007)

Tom Peters_excellence_always_Creative Destruction.ppt

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