EXCELLENCE. ALWAYS. Tom Peters/14 April 2006/Novosibirsk

EXCELLENCE.

ALWAYS.Tom Peters/14 April 2006/Novosibirsk

“Organizations are not machines. That has been the central message of all my books. They are living communities of

individuals. To describe them we need to use the language of communities and the language of

individuals. That means a mix of words we use in politics and in ordinary everyday life. The essential

task of leadership (a word from political theory, unlike the word ‘manager’) is to combine the aspirations and needs of individuals with the

purposes of the larger community to which they all belong.” —Charles Handy

P.P.E.E.R.E.

People.Product.

Execution.Enthusiasm.Relentless.Excellence.

EXCELLENCE.

ALWAYS.Tom Peters/14 April 2006/Novosibirsk

Slides at …

tompeters.com

EXCELLENCE.

ALWAYS.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties”

What is In Search of Excellence all about:

People. Emotion. Engagement. Exuberance. Action-Execution. Empowerment. Independence. Initiative. Imagination. Great

Stories. Incredible Adventures. Trust. Caring. Fun. Joy. Customer-centrism. Profit. Growth. “Brand

You.” “Dramatic Differences.”Experiences. That Make You “Gasp.” Excellence. Always.

ExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields $85,500 EI: $10,000 yields $140,050

*Excellence Index/Basket of 32 publicly traded stocks

!

First-level Scientific Success:

Beyond Brains

Tom Peters/14April2006

First-level Scientific Success

The smartest guy in the room wins”

Or …

First-level Scientific Success

FanaticismPersistence-Dogged Tenacity

Patience (long haul/decades)-Impatience (in a hurry/”do it yesterday”)

PassionEnergy

Relentlessness (Grant-ian)

EnthusiasmDriven (nuts!)

(Brutal?) CompetitivenessEntrepreneurialPragmatic (R.F!A.)

Scrounge (“gets” the logistics-infrastructure bit)

Master of Politics (internal-external)Tactical Genius

Pursuit of (Oceanic) Excellence!High EQ/Skillful in Attracting + Keeping Talent/Magnetic

Prolific (“ground up more pig brains”)

Egocentric

Sense of History-DestinyFuturistic-In the Moment

Mono-dimensional (“Work-life balance”? Ha!)

Exceptionally IntelligentExceptionally Clever (methodological shortcuts/methodological genius)

Luck

First-level Scientific Success/Short Form

Scientific Success (Nobel-level) = Genius +

Execution + Master of Soft Skills + Enthusiasm + Magnetism + Destiny

(sense of) + Energy

Biz Bonanza Success = DDMMSTERL =

DramaticDifference + “Business” Acumen/Money + Good

“Marketing” Instinct/“Ice-to-Eskimos” Sales Instincts + Stellar

Talent + Aim for Excellence + Resilience/Tenacity/ Adaptability + Luck (The “Necessary Nine”: What Every Small Biz

Requires to Excel.) (Big, too.)

!

4/40Tom Peters/Novosibirsk/14 April 2006

De-cent-ral-iz-a-tion!

Ex-e-cu-tion!

Ac-count-a-bil-ity!

6:15A.M.

!

All You Need to Know*

*more or less

Tom Peters/14 April 2006/Novosibirsk

Amazing Tales

THREE BILLION NEW

CAPITALISTS —Clyde Prestowitz

Cause

“Create a ‘cause,’ not a ‘business.’’

—Gary Hamel

“I never, ever thought of myself as a businessman.

I was interested in creating things

I would be proud of.” —Richard Branson

Quest

“Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.”“The best thing a leader can do

for a Great Group is to allow its members to discover their

greatness.”

Source: Organizing Genius/Warren Bennis & Patricia Ward Biederman

Leadership’s Mt Everest

“free to do his or her absolute

best” …

“allow its members to

discover their greatness.”

“The role of the Director is to create a space where the actor or actress can become more than they’ve ever been before, more than

they’ve dreamed of being.” —Robert Altman, Oscar acceptance

“We are a ‘Life

Success’ Company”

—Dave Liniger, RE/MAX

Artist

Leader Job 1

Paint Portraits of Excellence!

Best Story

“Storytelling

is the core of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Point of

View!

People

“Leaders

‘do’ people.” —Anon.

“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

Brand = 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

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.

People

Employees: “Are there enough weird people in the lab

these days?”V. Chmn., pharmaceutical house, to a lab director

Decency

Amen!

“What creates trust, in the end,

is the leader’s manifest respect

for the followers.”

— Jim O’Toole, Leading Change

Care

“The deepest human

need is the need to be

appreciated.”—William James

“The two most powerful things in existence: a kind

word and a thoughtful

gesture.” —Ken Langone

Intangibles

“Hard is soft. Soft is hard.”*

*In Search of Excellence

“Organizations are not machines. That has been the central message of

all my books. They are living communities of individuals. To describe them we need to use the language of

communities and the language of individuals. That means a mix of words we

use in politics and in ordinary everyday life. The essential task of leadership (a word

from political theory, unlike the word ‘manager’) is to combine the aspirations

and needs of individuals with the purposes of the larger community to which they all

belong.” —Charles Handy

Self-management

“The First step in a ‘dramatic’

‘organizational change program’ is obvious—dramatic

personal change!” —RG

You = Your

Calendar

“You must

be the change you

wish to see in the world.”

—Gandhi

“To change minds effectively, leaders make particular use

of two tools: the stories they tell and

the lives they lead.” —Howard Gardner, Changing Minds

MBWA

>25

“You can’t lead a cavalry charge if you think you look funny on a

horse.” —John Peers, President, Logical Machine

Corporation

Curiosity

“Why?”

Ears

“If you don’t listen, you don’t sell

anything.”

—Carolyn Marland/MD/Guardian Group

Conformity

“While everything may

be better, it is also increasingly the same.”

—Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“To grow, companies need to

break out of a vicious cycle of

competitive benchmarking and imitation.” —W. Chan Kim & Renée

Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

Conformity

“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 top!”

— Gary Hamel/“Strategy or Revolution”/Harvard Business Review

Dramatic Difference

Point of View!/Point of

Dramatic Difference!

“[Immelt] is now identifying technologies with which GE

will … systematically set out to build

entirely new industries.” —Strategy+Business, Fall

2005

Action

“Ninety percent of what we call

‘management’ consists of making

it difficult for people to get

things done.” – Peter Drucker

“Execution is the job 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 Discipline of Getting Things Done

“The person who is a little less conceptual but is absolutely determined to succeed will usually find the

right people and get them together to achieve objectives. I’m not knocking education or looking for

dumb people. But if you have to choose between someone with a

staggering IQ and an elite education who’s gliding along,

and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” —Larry

Bossidy/Execution: The Discipline of Getting Things Done

“GE has set a standard of candor.

… There isn’t an ounce of denial in

the place.” —Kevin Sharer, CEO

Amgen, on the “GE mystique” (Fortune)

“Never forget implementation

boys. In our work it’s what I call the ‘missing 98

percent’ of the client puzzle.” —Al

McDonald

Try ItTry ItTry It

Sam’s Secret

#1!

“Fail faster. Succeed sooner.”

—David Kelley/IDEO

“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

“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,” 04.05.2006

“You only find oil if

you drill wells.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

Focus

“I used to have a rule for myself that at any point in time I

wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was

trying to get done.

Three. Not two.

Not four. Not five. Not ten. Three.”

— Richard Haass, The Power to Persuade

“Dennis, you need a ‘To-don’t ’

List !”

“We will not, I repeat not,

pretend to be ‘all things to all people.’” —CEO, Investec (03.06)

K.I.S.S.

450/8

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

Handy

“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

Change

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army

Change

We become who we

spend time with!

Measure “Strangeness”/Portfolio Quality

StaffConsultants

VendorsOut-sourcing Partners (#, Quality)

Innovation Alliance PartnersCustomers

Competitors (who we “benchmark” against)

Strategic Initiatives Product Portfolio (LineEx v. Leap)

IS/IT ProjectsHQ LocationLunch Mates

LanguageBoard

“Don’t benchmark, futuremark!

” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

“[Immelt] is now identifying technologies with which GE

will … systematically set out to build

entirely new industries.” —Strategy+Business, Fall

2005

Forget

Forget > “Learn”

“The problem is never how to get new,

innovative thoughts into your mind, but

how to get the old ones out.” —Dee Hock

BigChange

No Wiggle Room!

“Incrementalism

is innovation’s worst enemy.”

Nicholas Negroponte

“Beware of the tyranny of making Small

Changes to Small Things.

Rather, make Big Changes to

Big Things.” —Roger

Enrico, former Chairman, PepsiCo

Five MYTHS About Changing Behavior

*Crisis is a powerful impetus for change*Change is motivated by fear*The facts will set us free

*Small, gradual changes are always easier to make and sustain*We can’t change because our brains become “hardwired” early in life

Source: Fast Company/05.2005

“Reward excellent failures.

Punish mediocre

successes.”Phil Daniels, Sydney exec

BigBiggerBiggest??????

“I don’t believe in

economies of scale. You don’t get better by being bigger. You get worse.” —

Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%;

J.P. Morgan Chase, 0.9%)

Agressive

Nelson’s secret: “[Other] admirals more frightened of losing than

anxious to win”

Speed-Tempo

“We don’t sell

insurance anymore.

We sell speed.”

Peter Lewis, Progressive

Passion & Enthusiasm

“Nothing is so contagious

as enthusiasm.”

—Samuel Taylor Coleridge

“A man without a

smiling face must not

open a shop.” —Chinese Proverb*

*Courtesy Tom Morris, The Art of Achievement

I am a dispenser of enthusiasm.

” —Ben Zander

Hustle

“Most important,

he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05

Sunny

Half-full Cups: “Ronald Reagan radiated

an almost transcendent

happiness.” —Lou Cannon

Aim High

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Get “better” vs

Get “different”

“You do not merely want to

be the best of the best. You want to be considered the

only ones who do what

you do.” —Jerry Garcia

Create

“A focus on cost-cutting and efficiency has helped many organizations weather the

downturn, but this approach will

ultimately render them obsolete. Only the constant

pursuit of innovation can ensure long-term success.”

—Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

SellSellSelll

. “Everyone lives by selling

something.”

– Robert Louis Stevenson

Value-added

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of

choice.”

IBM Global Services: $55B

No Limits

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.”

— Jack Welch

!

Leadership23

Tom Peters/Novosibirsk/14April2006

Leadership23

1. Enthusiasm. Energy. Exuberance.2. Action. Execution.3. Tempo. Metabolism.4. Relentless.5. Master of Plan B.6. Accountability.7. Meritocracy.8. Leaders “do” people. Mentor. (“Success creation business.”)9. Women. Diversity.10. Integrity. Credibility. Humanity. Grace.11. Realism.12. Cause. Adventures. Quests.13. Legacy.14. Best story wins.15. On the edge. (“Wildest chimera of a moonstruck mind.”)16. “Reward excellent failures. Punish mediocre successes.”17. Different > Better. (“Only ones who do what we do.”)18. MBWA. Customer MBWA.19. Laughs.20. Repot. Curiosity. Why?21. You = Calendar. “To Don’t.” Two.22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)

Sir Richard’s Rules:

Follow your passions.Keep it simple.

Get the best people to help you.

Re-create yourself.Play.

Source: Fortune on Branson

!

People Power!

Tom Peters/Novosibirsk/14April2006

People Power: “Brand You”

Days

“One of the defining characteristics [of the change] is

that it will be less driven by countries or corporations and

more driven by real people. It will unleash unprecedented creativity,

advancement of knowledge, and economic development. But at the same time, it will tend to undermine safety net systems and

penalize the unskilled.” —Clyde Prestowitz, Three Billion

New Capitalists

“If there is nothing very special about

your work, no matter how hard

you apply yourself you won’t get noticed, and that

increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired

“You are the storyteller of your own life, and you can create your own legend or

not.” —Isabel Allende

Distinct … or

… Extinct

New Work SurvivalKit.2006

1. Mastery! (Best/Absurdly Good at Something!)2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)3. A “USP”/Unique Selling Proposition (R.POV8: Remarkable Point of View … captured in 8 or less words) 4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. Entrepreneurial Instinct (A sleepless … Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of Monster Project)6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!)7. Master of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)8. Sense of Humor (A willingness to Screw Up & Move On)9. Comfortable with Your Skin (Bring “interesting you” to work!)10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?)11. Embrace “Marketing” (Your own CSO/Chief Storytelling Officer)12. Passion for Renewal (Your own CLO/Chief Learning Officer) 13. Execution Excellence! (Show up on time! Leave last!)

“It’s always

showtime.”

—David D’Alessandro, Career Warfare

“Knowledge becomes obsolete incredibly fast.

The continuing professional education of

adults is the No. 1 industry in the next 30

years … mostly on line.” —Peter Drucker

!

People Power: The

Talent50

1. People First!

“The Creative Age

is a wide-open

game.” —Richard Florida,

The Rise of the Creative Class

Whoops: Jack didn’t have a

vision!*

*GE = “Talent Machine” (Ed Michaels)

2. Soft Is Hard.

Message: Leading “Talent” is all about

Love: Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures,

Bizarre Failures, Growth, Insatiable Appetite for Change.

3. FUNDAMENTAL PREMISE: We Are in an Age

of Talent/Creativity/ Intellectual-capital Added.

“Human creativity

is the ultimate economic

resource.” —Richard Florida,

The Rise of the Creative Class

4. Talent “Excellence” in Every Part of

Every Organization.

Wegmans:

#1/100

“Best Companies to

Work for”/2005

5. P.O.T./ Pursuit Of Talent =

OBSESSION.

“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

Les Wexner: From sweaters to … people!

6. Talent Masters Understand

Talent’s Intangibles.

Q: “If it were your $50K [life’s savings] and my $50K, what sort of Waiters would we look for?”A:

“Enthusiasts!”

7. HR Is “Exciting.”

Chicago:HRMAC

Are you …

“Rock Stars of the Age of Talent”?

“HR doesn’t tend to hire a lot of

independent thinkers or people who stand

up as moral compasses.” —Garold Markle,

Shell Offshore HR Exec (FC/08.05)

8. HR Sits at The Head

Table.

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; ie 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.

9. Re-name “HR.”

Talent Departm

ent

10. There Is an “HR Strategy”/

“HR Vision”

“Omnicom very simply is about talent.

It’s about the acquisition of talent,

providing the atmosphere so talent

is attracted to it.” —John Wren

What’s your company’s … EVP/IBP?*

*Employee Value Proposition, per Ed Michaels et al., The War for Talent;

IBP/Internal Brand Promise per TP

EVP/IBP = Remarkable challenges, rapid professional

growth, wholesale respect, deep satisfaction, fun,

stunning opportunities, exceptional rewards, amazing peer group, full membership in

Club Adventure, maximized future employability

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

11. Acquire for Talent!

Omnicom's acquisitions: “not for

size per se”; “buying talent;” “deepen a

relationship with a client.”

Source: Advertising Age

12. There Is a FORMAL

Recruitment Strategy.

“Busy Executives Fail To Give Recruiting

Attention It Deserves”

—Headline, WSJ, 11.21.05

13. There Is a FORMAL Leadership Development

Strategy.

DD: 0 to 60mph in a flash (months)

14. There is a “World Class”

Leadership Development

CENTER.

Crotonville!

15. There Is a FORMAL

STRATEGIC HR Review Process.

“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit

each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool

strengthening issues. The Talent Review Process is a

contact sport at GE; it has the intensity and the

importance of the budget process at most

companies.” —Ed Michaels

16. “People”/ Talent” Reviews Are the FIRST

Reviews.

17. HR Strategy = BUSINESS Strategy.

Wegmans: #1/100 Best Companies to Work for

84%: Grocery stores “are all alike”46%: additional spend if customers have an “emotional connection” to

a grocery store rather than “are satisfied” (Gallup)

“Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, grocery consultant

“You cannot separate their strategy as a retailer from their

strategy as an employer.” —Darrell Rigby, Bain & Co.

18. Make it a “Cause Worth

Signing Up For.”

“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)

19. Unleash “Their” Full Potential!

“No matter what the situation, [the great manager’s]

first response is always to think about the individual concerned and how things can be arranged to help

that individual experience success.” —Marcus Buckingham,

The One Thing You Need to Know

RE/MAX: A “Life Success

Company”Source: Everybody Wins, Phil Harkins & Keith Hollihan

20. Set Sky High

Standards.

Did We Say “Talent Matters”?

“The top software developers are more productive than average software

developers not by a factor of 10X or 100X,

or even 1,000X, but

10,000X.”

—Nathan Myhrvold, former Chief Scientist, Microsoft

21. Enlist Everyone in Challenge Century21.

Distinct …

or … Extinct

22. Pursue the Best!

From “1, 2 or you’re out” [JW] to …

“Best Talent in each industry segment to

build best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent

23. Up or Out.

“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

24. Ensure that the Review

Process Has INTEGRITY.

25 = 100*

* “But what do I do that’s more important than developing people? I don’t do the damn work. They do.”—GS

25. Pay Up!

“Top performing companies are two to four times more likely

than the rest to pay what it takes to

prevent losing top performers.” —Ed Michaels,

War for Talent

26. Training I: Train! Train!

Train!

26.3

3 Weeks in May

“Training” & Prep: 187“Work”: 41

(“Other”: 17)

1%

vs.

367%

Divas do it. Violinists do it. Sprinters do it. Golfers do it.

Pilots do it. Soldiers do it. Surgeons do it. Cops do it.

Astronauts do it. Why don’t businesspeople do it?

27. Training II: 100% “Business

People.”

28. Training III: 100%

LEADERS.

“I start with the premise that the

function of leadership is to produce more leaders, not more followers.” —Ralph Nader

29. Training IV: Boss as Trainer-

in-Chief.

“Workout” = 24 DPY in the Classroom

30. Training V: The REAL

Bedrock of the “Talent Thing.”

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator

artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child

—let alone our child—receive a poor grade in art at such a

young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-

level motor skills.’ ” —Jordan

Ayan, AHA!

31. Wide-open Communication: NO BARRIERS.

“The organizations we created have become tyrants. They have

taken control, holding us fettered, creating barriers that

hinder rather than help our businesses. The lines that we

drew on our neat organizational diagrams

have turned into walls that no one can scale or

penetrate or even peer over.” —Frank Lekanne Deprez & René Tissen, Zero Space: Moving

Beyond Organizational Limits

32. Respect!

“What creates trust, in the end,

is the leader’s manifest respect

for the followers.” — Jim O’Toole,

Leading Change

33. Embrace the Whole Individual.

34. Build Places of “Grace.”

35. MBWA*: Visible

Leadership!*Managing By Wandering Around

“The first and greatest imperative of command is to be present in person. Those who impose

risk must be seen to share it.” —John Keegan,

The Mask of Command

36. Thank You!

“The deepest human

need is the need to be

appreciated.” —William James

37. Promote for “people skills.” (THE REST IS

DETAILS.)

“When assessing candidates, the first thing I looked for was energy

and enthusiasm for execution. Does she talk about the thrill of getting things done, the

obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in

Execution

38. Honor Youth.

“Why focus on these late teens and twenty-

somethings? Because they are the first young who are both in a position to change the world,

and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has

triggered the first industrial revolution in history to be led by the young.”

The Economist

39. Provide Early Leadership

Assignments.

The

WOW!

Project

40. Create a FORMAL System of Mentoring.

41. Diversity!

“To be a leader in consumer

products, it’s critical to have

leaders who represent the population we

serve.” —Steve Reinemund/PepsiCo

42. WOMEN RULE.

“AS LEADERS, WOMEN RULE: New

Studies find that female managers outshine their

male counterparts in almost every measure”

Title, Special Report/BusinessWeek

The Core Argument

1. We are in a War for Talent.2. The war will intensify.3. Women are under-represented in our leadership ranks.4. Women and men are different.5. Women’s strengths match the New Economy’s leadership needs—to a striking degree.6. Women are also the principal purchasers of goods and services—retail and commercial.7. Ergo, women are a large part of “the answer” to the War for Talent issue/opportunity.

43. Hire (& Protect!) Weird!

The Cracked Ones Let in the Light

“Our business needs a massive transfusion of

talent, and talent, I believe, is most likely to be found

among non-conformists,

dissenters and rebels.” —David Ogilvy

44. We Are All Unique.

Beware Standardized Evals: One size NEVER fits all. One size fits

one. Period.

45. Capitalize on Strengths.

“The key difference between checkers and

chess is that in checkers the pieces all move the same way, whereas in

chess all the pieces move differently. … Discover

what is unique about each person and capitalize on

it.” —Marcus Buckingham,

The One Thing You Need to Know

46. Bosses “Win People

Over.”

PJ: “Coaching is winning

players over.”

47. GOAL: Voyages of

Mutual Discovery.

Quests!

48. Foster Independence.

“You must realize that how you invest your human capital matters as much as how you invest your

financial capital. Its rate of return determines your

future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer

asking, ‘Where do you see yourself in 5 years?’ you’ll ask,

‘If I invest my mental assets with you for 5 years, how much will

they appreciate? How much will my portfolio of career options

grow?’ ”Source: Stan Davis & Christopher Meyer, futureWEALTH

49. Enthusiasm!

“It’s simple, really, Tom. Hire for s,

and, above all, promote for s.”

—Starbucks follower/WS analyst

50. Talent = Brand.

The Talent50

1. People first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added.4. Talent “excellence” in every part of the organization.5. P.O.T./Pursuit Of Talent = Obsession.

6. HR sits at The Head Table.7. HR is “cool.”

Brand =

Talent.

!

The Irreducible20

9Tom Peters/Novosibirsk/14April2006

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.)

15. Men. Women. Different. Contend. Connect.16. Women. Buy. All. (RU listening?)17. Quality. (“Mind-blowing.” Beyond 6-Sigma.)18. Re-invent. Re-pot. (Required.)19. Jaywalk.20. Big change. Small # of people. (Always.)21. Experiment. Now.22. Failure. Normal. 23. Most failures, most success. (Fail. Forward. Fast.) 24. “Reward excellent failures. Punish mediocre successes.”25. Women leaders. (Altered times.) 26. Extremism. (Good business. Bad politics.)27. Innovation source. Only. Extreme irritation.28. Smile.

29. You must care.30. Mentor. (Highest ROI.)31. Best “roster” wins.32. Wow. (Okay in biz.)33. We all have customers. (Biz. Personal.)34. All contacts = Experiences.35. Cirque du Soleil. (Peerless.)36. Leaders create space for growth.37. Quests. (Only.)38. High aspirations, “high” results. (Self-fulfilling prophecy.)39. Attitude 1, Skills 0. (Mostly.) (Attitude 1, Skill 0.3?)40. Sometimes: Skill 1, Attitude 0.1.41. Must “love,” not “like.”42. Wegmans.” (No excuses. “Mere” groceries.)43. Less than your best. Cheating.

44. Brand You. (No alt.)45. Self-sufficiency. (Biggest LT turn-on.)46. In the moment.47. The moment wins.48. Tomorrow = Never. 49. Action 1, Plan 0.1.50. “Execution” can be a “system.”51. Realism.52. Own up. Move on.53. Accountability.54. Work hard > Work smart. (Mostly.)55. Feedback. Necessary. Fast. (R.F.A. in “RFA times.”)56. Customers. Listen. Lead. (Paradox.)57. “On stage.” Always. (GW, FDR, RG = Supreme actors.)

58. Master statistical analysis.59. Excellence = Set the table.60. Legacy. (Will it have mattered?)61. “Great.” (Why not?)62. Radicals rule. (Think … Olympics.)63. !!! = Good.64. Red 1, Brown 0. (Red times.)65. Talk. Listen. (“Big 2.” Master.)66. Politics. (Normal-inevitable state of affairs. Master.)67. Student. Forever.68. “Why?” (Question #1.)69. Don’t belittle.70. Respect.71. All we have: this moment. (“Moments matter most”?) 72. Now. (Procrastination. Death.)

73. Exercise.74. Paint. (Leader. Portraits of Excellence.)75. Best story wins.76. “You must be the change you wish to see in the world.”77. Two “big ones.” Max. (Priorities.)78. No “I” in Team. (“I” in Win.)79. “I” in Win. (No “I” in Team.)80. Different 1, Better 0. (Better = 0.1)81. Imitation = Mistake. (Learn, from who?)82. Choose/battle the “right” competitor.83. Schools. Creativity. Entrepreneurship. (Not.)84. MBAs. Creativity. Entrepreneurship. Leadership. (Not.)85. Design. Under-rated. Wildly. (Still.) (Everything.)

86. You = Calendar. (Calendar. Never. Lies.)87. Laugh.88. Handshake. (Quantity. Quality.)89. Don’t fold your hands in front of your

chest. Ever. (Never.)90. Grace. (“Works” in biz.)91. Weird. Wins. (Weird times.)92. Crazy times. Crazy orgs.93. Internet. All.94. Women. Boomers-Geezers. Market. All.95. Passion. (Repeat. So what?)96. Energy. (Repeat. So what?)97. Hustle. (Repeat. So what?)98. Enthusiasm. (Repeat. So what?)99. Exuberance. (Repeat. So what?)100. Smile. (Repeat. So what?)101. Care. (Repeat. So what?)

102. Simplicity. Redundancy. Resilience. Bloody- mindedness. Visible optimism. (Success.) 103. Act. (Repeat. So what?) 104. Appreciate. (Repeat. So what?)105. Fun. (Biz. Why not?)106. Joy. (Biz. Why not?)107. Sales = Life.108. Marketing = Life.109. Long-term. “Top line.”110. Great company = Creates the most individual success stories. (RE/MAX)111. Talent first, performance byproduct.112. Sustained Wow* 1, “Shareholder value,” 0.2 (*Product, People.)113. Commitment, by invitation only.114. Creativity, by invitation only. 115. HR = #1. (Ought to.)116. Face-to-face. (5K miles, 5 minutes.)

117. Negotiation. Make all winners. (Save face.)118. Grace makes enemies friends.119. Network.120. Invest in relationships. (Think ROIR. Return On Investment in Relationships.)118. Relationship investment. Forethought. Calendar item. Intensity.119. Innovation. Easy. (Hang out with weird.)120. Weird = Win. (Weird times.)121. “The bottleneck is at the top of the bottle.”122. Good Board = Weird Board. (At least, surprising.)123. No contention, no progress.

124. “Crucial conversations.” “Crucial confrontations.” (Study. Learn. Do.)125. Honest feedback.126. Gaspworthy. Yes. 127. “Insanely great.”128. “Astonish me.”129. “Make it immortal.”130. “Will you remember it in 20 years?”131. No small opportunities. (Reframe.)132. One playmate, one playpen = Enough.133. End run. Sensible.134. Allies are there for the finding.135. Find successes. Build on successes. (Pos > Neg. Encourage > Fix.)136. Somebody’s doing it today. Find ’em.137. Someone is living 2016 in 2006. (Find ’em. Study ’em.)

138. Don’t “benchmark,” “futuremark.” (2016. Happening. Somewhere.)139. “PMA.” It works.140. There are no experts. (You are the expert.)141. Life is short. 142. “Sustained success.” Fat chance. Make today matter. (“Sustained.” Ha.)143. Collaborate. (Networked world.)144. Go solo. (Individual. Unit of Intellectual Capital.)145. There are no “perfect” plans. (Do. Wins.)146. Plans motivate. (Right or wrong. Sense of purpose.)147. Never rest.148. Get some sleep.149. Winning = Embracing paradox.150. Ambiguity = Opportunity.

151. Resilience.152. Relentless-ness.153. None. Above. Comeuppance. (GM. Sears. U.S. Steel. DEC.)154. Be yourself. Period.155. Never work with jerks. Including customers. (Life. Too short.)156. Under-promise, over-deliver.157. Talent. (Powerful word.)158. “Customer = Anyone whose actions affect your results.”159. Competition stinks. (Seek the soft spots where you can dominate.)160. K.I.S.S./Keep It Simple, Stupid.161. Beauty. (Good biz word.)162. “See the beauty in a hamburger bun.” (Go. Ray.)

163. Own up. Quick. ( Denial. Cancer.)164. Celebrate. Often.165. 78 people = 78 approaches. (Each. Unique.)166. Weed. Ceaselessly. (Prune. Stupid. Rules. Non-stop.)167. Get out of the way. (You = The problem.)168. Smile. Sunny. Optimism. (If it kills you.)169. Flowers. (Cheery workplace.)170. Enjoy. (Or get the hell.)171. Be intolerant of “sour.” (1 = Major pollution)172. No “quick trigger” on promotion. (Too important.)173. Evaluation = Lots of study-time.174. Evaluation = “Life or death” to evaluee.175. “360” evaluation. No fad.176. Exit when you’re done. (Done. Sooner than you think.)

177. Today. Now. My Project. Am. Is. I. Period.178. “Beautiful” systems. (Good biz phrase. Not oxymoron.)179. Build on strengths > Fix weaknesses.180. “To don’t” = “To do.” (“To don’t” > “To do” ?)181. Leaders “Do” People. (Period.)182. Leaders enjoy leading.183. Serious leadership training = Serious.184. Priorities. Obvious. (Or else.)185. 5 “Priorities” = 0 Priorities. (3 “Priorities” = 0 Priorities?)186. People. First. Last. Always.187. It. Is. Always. The. People.188. Handshake. (Quantity. Quality.)

189. Don’t fold your hands in front of your chest. Ever. (Never.)190. Simplicity. Redundancy. Resilience. Bloody-mindedness. Visible optimism. (Success.) (Repeat.)191. Employee Entrance = Guest Entrance.192. Put the customer SECOND. (Thanks, Hal.)193. Flowers. (Or did I say that before? No matter if I did.)194. Big Mergers don’t work. Small acquisitions can/do work—if you don’t screw with their energy.

195. Instinctively “head for the front line.” (In all contexts.)196. Success = DDMMPR/"D-squared, M-squared, PR” = DramDiff + Money-Financial Acumen + Good “Marketing” Instincts + Stellar People + Resilience (The “fab five”: What. Every. Small. Biz. Needs.) (Big too.)197. Core Mechanism (“Game-changing Solutions”): PSF (Professional Service Firm “model”) + Wow! Projects (“Different” vs “Better”) + Brand You (“Distinct” or “Extinct”)198. 2011/2016 has already happened. Find it.

199. Kids “know” kids. Oldies “know” oldies. Women “know” women. (Staff accordingly.)200. Everybody is my customer.201. Cosset “vendors.”202. I want to run a Housekeeping department. (And you?)203. The military doesn’t follow the “military model.” (Initiative = Excellence.)204. No such thing as “going to absurd lengths” to serve the Customer. (HSM & Lefties.)205. Forget the “customer.” All = “Clients.”206. It takes decades to get over “sleights.” (So don’t sleight.)207. Don’t “dumb down.” Ever.

208. NO LESS THAN EXCELLENCE. EVER.209. EXCELLENCE. ALWAYS.

!

Tom’s

60TIBs**TIB = This I Believe

Version: 14April2006

1. TECHNICOLOR RULES! (Passion Moves

Mountains!)

2. Audacity Matters!

3. Revolution Now!

4. Question Authority! (& Hire

Disrespectful People.)

5. Disorganization Wins! (LOVE THE

MESS!)

6. Think 3M: Markets Matter Most. ONLY EXTREME

COMPETITION STAVES OFF STALENESS. (You can take the

boy out of Silicon Valley, but you can’t take Silicon Valley

out of the boy!)

7. Three Hearty Cheers for Weirdos. (Bill Gates,

Steve Jobs, Larry Ellison, Scott McNealy, Craig

Venter et al.)

8. Message 2006: Technology Change (Info-sciences, Biosciences) Is in Its Infancy! (WE AIN’T

SEE NOTHIN’ YET!)

9. Everything Is Up For Grabs! Volatility Is Thy Name! (Forever & Ever. Amen.) RE-INVENT …

OR DIE!

10. Big Stinks. (Mostly.) (VERY

Mostly.)

11. “Permanence” Is a Snare & a Delusion.

(Forget “Built to Last.” It’s Yesterday’s

Idea.) (Try “Built for Impact.”)

12. “Kaizen” (Continuous

Improvement) Is VDS/ Very … Dangerous

… Stuff.

13. DESTRUCTION RULES!

14. Forget It! (“Learning” = Easy. “Forgetting” = Nigh

on Impossible.)

15. Innovation Is Easy: Hang Out with Freaks.

(Employees, Board Members, Customers, Suppliers, Alliance

Partners, Consultants.)

16. Boring Begets Boring. (Cool Begets Cool.)

17. Think “Portfolio.” (We’re All V.C.s.)

18. Perception Is All There Is. (“Insiders” … ALWAYS … overestimate the Radicalism

of What They’re Up To.)

19. Action … ALWAYS … Takes Precedence. Think:

R.F!A./Ready. Fire! Aim. (REWARD SUCCESS. REWARD

FAILURE. PUNISH … INACTION.)

20. He Who Makes & Tests the Quickest & Coolest Prototypes

Reigns!

21. Haste Makes Waste.

(SO GO WASTE!)

22. Screw-ups are … the … Mark of Excellence. (“Do It

Right the First Time” Is a Very Stupid Idea.)

23. Play Hard! Play Now! (Cherish Play!)

24. TALENT TIME! (He/She Who Has the Best “Roster”

Rules!)

25. Re-do Education. Totally. (FOSTER CREATIVITY … NOT

UNIFORMITY.) (THE NOISIEST CLASSROOM

WINS.)

26. Diversity’s Hour Is Now!

27. SHE … Is the Best

Leader!

28. MARKETING MANTRA: Embrace the “BIG THREE”

Demographics. (1) SHE … is the Customer. (For everything.) (2)

Rapidly Aging Boomers Have … ALL THE MONEY. (3) Green

Matters. (TRILLIONS OF $$$$$ Are at Stake.) (NOBODY … Gets It.)

(Mere “Programs” Will Not Suffice.)

29. Re-boot Healthcare. (UNDERSTATEMENT.)

30. WHAT ARE WE SELLING? “Experiences” &

“Solutions” > “Quality” & “Satisfaction.” (The

Traditional Value-added Equation Is Being Set

on Its Ear.)

31. DESIGN = New Seat of the Soul.

32. Branding Is for … EVERYONE. He Who Has the

… BEST STORY … Takes Home the Marbles.

33. DRAMATIC DIFFERENCE = Only Difference.

34. WORDS/Language Matters … a Lot. (E.g.: Three Hearty Cheers

for “Wow”!)

35. WHAT MATTERS IS STUFF THAT

MATTERS. (Query #1: “Are You Proud

of It?”)

36. eALL. (IS/IT: Half-way = No Way.)

37. DREAM … Big! DREAM … Enormous!

DREAM … Gargantuan! (These Are XXX Times.)

38. THINK MIKE! (Michelangelo: “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.”)

39. There Is Only … ONE BIG ISSUE: (Crappy) Cross-

functional Communication.

40. Stop Doing Dumb Stuff. (SYSTEMATIZE THE

PROCESS OF “UN-DUMBING.”)

41. Beautiful Systems Are …

BEAUTIFUL.

42. The … WHITE-COLLAR

REVOLUTION … Will Devour

Everything in Its Path.

43. Take Charge of Your Destiny!

BrandYou Moment! DISTINCT … OR

EXTINCT!

44. “Powerlessness” Is a State of Mind!

Think: King. Gandhi. De Gaulle.

45. Pursue Adventure … in

Every Task.

46. EXCELLENCE … Is a State of Mind.

(Excellence Takes a Minute.) (No Bull.)

47. SHOW UP! (If You Care, You’re

There.)

48. YOUR CALENDAR KNOWS ALL.

(You = Calendar.) (Mind Your “TO DON’T” List.)

49. LIFE IS SALES. (The Rest Is

Details.)

50. Boss Mantra #1: “I DON’T KNOW.” (“I

Don’t Know” = Permission to

Explore.)

51. Management Role 1: GET OUT OF THE WAY.

(Clear the Way.) (“Manager” = Hurdle Removal

Professional.)

52. Epitaph from Hell: “He Woulda Done Some

Truly Cool Stuff … But His Boss Wouldn’t

Let Him.”

53. Change Takes However Long You

Think It Takes. (Eschew …

“Incrementalism.”)

54. Respect! (Rule 1: Don’t Belittle!)

55. “Thank You” Trumps All!

56. Integrity Matters! Integrity = Credibility.

(Dennis K. Is a Jerk.)

57. SOFT IS HARD. HARD IS SOFT. (Numbers Are

Soft. People Are Not.)

58. Try Sunny! (Sunny Begets

Sunny. Gloomy Begets

Gloomy.)

59. DISPENSE

ENTHUSIASM!

60. FUN …Is Not a 4-Letter Word. So, too … JOY. (And GRACE.)

The End.

!