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Tom Peters’ Re-Ima gine ! Leading Chan ge , Developing Talent , Driving Innovation , Adding Value , Achieving Excellence Associsation of Chief Executive Officers Athens/09May2006

Part #1: Introduction EXCELLENCE. ALWAYS

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Tom Peters’ Re-Ima g ine ! Leading Chan g e , Developing Talent , Driving Innovation , Adding Value , Achieving Excellence Associsation of Chief Executive Officers Athens/09May2006. Part #1: Introduction EXCELLENCE. ALWAYS. EXCELLENCE. THOUGHTS. Radio City Music Hall September 2005. - PowerPoint PPT Presentation

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Page 1: Part #1: Introduction EXCELLENCE. ALWAYS

Tom Peters’

Re-Imagine!Leading Change,

Developing Talent, Driving Innovation,

Adding Value,Achieving Excellence

Associsation of Chief Executive OfficersAthens/09May2006

Page 2: Part #1: Introduction EXCELLENCE. ALWAYS

Part #1: Introduction

EXCELLENCE. ALWAYS.

Page 3: Part #1: Introduction EXCELLENCE. ALWAYS

EXCELLENCE. THOUGHTS.

Page 4: Part #1: Introduction EXCELLENCE. ALWAYS

Radio City Music HallSeptember 2005

Page 5: Part #1: Introduction EXCELLENCE. ALWAYS

Franchise Lost!

TP: “How many of you [600] really

crave a new Chevy?”

NYC/IIR/061205

Page 6: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 7: Part #1: Introduction EXCELLENCE. ALWAYS

People.Product.

Execution.Enthusiasm.Relentless.Re-invent.Excellence.

Page 8: Part #1: Introduction EXCELLENCE. ALWAYS

My (Les’s) Dinner with Henri

JUST WHAT IS IT YOU MAKE?

Page 9: Part #1: Introduction EXCELLENCE. ALWAYS

EXCELLENCE. THE WORD.

Page 10: Part #1: Introduction EXCELLENCE. ALWAYS

Synonyms

PurityTranscendence

VirtueEleganceMajesty

Antonyms

Mediocrity

Page 11: Part #1: Introduction EXCELLENCE. ALWAYS

EXCELLENCE.

GAMECHANGER.

Page 12: Part #1: Introduction 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”

Page 13: Part #1: Introduction EXCELLENCE. ALWAYS

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.

Page 14: Part #1: Introduction EXCELLENCE. ALWAYS

ExIn*: 1982-2002/Forbes.com

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

*Excellence Index /Basket of 32 publicly traded stocks

Page 15: Part #1: Introduction EXCELLENCE. ALWAYS

EXCELLENCE.

ALWAYS.

Page 16: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 17: Part #1: Introduction EXCELLENCE. ALWAYS

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.

Page 18: Part #1: Introduction EXCELLENCE. ALWAYS

Business* ** (*at its best): An emotional, vital, innovative, joyful,

creative, entrepreneurial endeavor that elicits

maximum concerted human potential in the

wholehearted service of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Page 19: Part #1: Introduction EXCELLENCE. ALWAYS

Business: The Ultimate Creative

Endeavor.

Page 20: Part #1: Introduction EXCELLENCE. ALWAYS

Business: The Ultimate Personal

Development-Growth

Experience.

Page 21: Part #1: Introduction EXCELLENCE. ALWAYS

Business: The Ultimate

Transcendent Service

Opportunity.

Page 22: Part #1: Introduction EXCELLENCE. ALWAYS

Part #2: Principal Argument

Re-Imagine!Leading Change,

Developing Talent, Driving Innovation,

Adding Value,Achieving Excellence

Page 23: Part #1: Introduction EXCELLENCE. ALWAYS

Re-imagine! Not Your Father’s World I.

Page 24: Part #1: Introduction EXCELLENCE. ALWAYS

THREE BILLION NEW CAPITALISTS

—Clyde Prestowitz

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26m

Page 26: Part #1: Introduction EXCELLENCE. ALWAYS

43h

Page 27: Part #1: Introduction EXCELLENCE. ALWAYS

Re-imagine!

Not Your Father’s World II.

Page 28: Part #1: Introduction EXCELLENCE. ALWAYS

“Income Confers No

Immunity as Jobs Migrate”

—Headline/USA Today/02.2004

Page 29: Part #1: Introduction EXCELLENCE. ALWAYS

“Deutsche Bank Moves Half of Its Back-office Jobs to

India”/ headline/FT/0327/500 of 900 Research/JPMorgan

Chase/30% back-office by 12.31.07

Page 30: Part #1: Introduction EXCELLENCE. ALWAYS

“There is no job that

is America’s God-given

right anymore.”

—Carly Fiorina/HP/January2004

Page 31: Part #1: Introduction EXCELLENCE. ALWAYS

Re-imagine!

Not Your Father’s World III.

Page 32: Part #1: Introduction EXCELLENCE. ALWAYS

“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)

Page 33: Part #1: Introduction EXCELLENCE. ALWAYS

“Get better” versus

“Get different”

Page 34: Part #1: Introduction EXCELLENCE. ALWAYS

Point of View!

Point of Dramatic

Difference!

Page 35: Part #1: Introduction EXCELLENCE. ALWAYS

The General’s Story. (And Darwin’s)

Page 36: Part #1: Introduction EXCELLENCE. ALWAYS

“If you don’t like change,

you’re going to like irrelevance even less.” —General Eric

Shinseki, Chief of Staff. U. S. Army

Page 37: Part #1: Introduction EXCELLENCE. ALWAYS

“It is not the strongest of the

species that survives, nor the most intelligent, but the one most

responsive to change.” —Charles Darwin

Page 38: Part #1: Introduction EXCELLENCE. ALWAYS

Everybody’s Story.

Page 39: Part #1: Introduction EXCELLENCE. ALWAYS

“One Singaporean worker costs as much as …

3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/2003

Page 40: Part #1: Introduction EXCELLENCE. ALWAYS

“One Singaporean worker costs as much as …

3 … in Malaysia

8 … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/2003

Page 41: Part #1: Introduction EXCELLENCE. ALWAYS

“Thaksinomics” (after Thaksin Shinawatra, PM)/

“Bangkok Fashion City”:

“managed asset

reflation” (add to

brand value of Thai textiles by demonstrating flair and design excellence)

Source: The Straits Times/2004

Page 42: Part #1: Introduction EXCELLENCE. ALWAYS

New ZealandThailand

SpainPortugalIreland

Singapore Taiwan

PhilippinesUAEChile

Page 43: Part #1: Introduction EXCELLENCE. ALWAYS

Better By Design: A National Strategy

NZ = Design

Excellence

Page 44: Part #1: Introduction EXCELLENCE. ALWAYS

What an Evolving-Bizarre Story: E.g., Life

Sciences

Page 45: Part #1: Introduction EXCELLENCE. ALWAYS

“WE ARE BEGINNING TO ACQUIRE … DIRECT AND DELIBERATE CONTROL … OVER THE EVOLUTION OF ALL LIFE FORMS …

ON THE PLANET.”Source: Juan Enriquez, As The Future Catches You

Page 46: Part #1: Introduction EXCELLENCE. ALWAYS

1. Re-imagine Permanence: The Emperor

Has No Clothes!

Page 47: Part #1: Introduction EXCELLENCE. ALWAYS

“Forbes100” from 1917 to 1987: 39 members of the Class of ’17 were

alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the

market by 20%; just 2 (2%), GE &

Kodak, outperformed the market 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

Page 48: Part #1: Introduction EXCELLENCE. ALWAYS

“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

Page 49: Part #1: Introduction EXCELLENCE. ALWAYS

4/40

Page 50: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 51: Part #1: Introduction EXCELLENCE. ALWAYS

Ex-e-cu-

tion!

Page 52: Part #1: Introduction EXCELLENCE. ALWAYS

Ac-count-a-bil-ity!

Page 53: Part #1: Introduction EXCELLENCE. ALWAYS

“GE has set a standard of candor.

… There is no puffery. … There isn’t an ounce of

denial in the place.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

Page 54: Part #1: Introduction EXCELLENCE. ALWAYS

6:15A.M.

Page 55: Part #1: Introduction EXCELLENCE. ALWAYS

2. Re-imagine:

Innovateor

Die!!

Page 56: Part #1: Introduction EXCELLENCE. ALWAYS

Resist!

Page 57: Part #1: Introduction EXCELLENCE. ALWAYS

“Huff. Puff. Consolidate.

Now. Or else! This is

it!” **Macy’s, Kmart, Xerox, IBM, Microsoft, TimeWarnerAOL …

Page 58: Part #1: Introduction EXCELLENCE. ALWAYS

“Not a single company that qualified as having made a sustained transformation ignited its leap with a big

acquisition or merger. Moreover, comparison companies—those that failed to

make a leap or, if they did, failed to sustain it—often tried to make themselves great with a

big acquisition or merger. They failed to grasp the simple truth that while you can buy

your way to growth, you cannot buy your way

to greatness.” —Jim Collins/Time/2004

Page 59: Part #1: Introduction EXCELLENCE. ALWAYS

Scale?

Page 60: Part #1: Introduction EXCELLENCE. ALWAYS

“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%)

Page 61: Part #1: Introduction EXCELLENCE. ALWAYS

Scale?

“Microsoft’s Struggle With Scale”

—Headline, FT, 09.2005

“Troubling Exits at Microsoft” —Cover Story, BW, 09.2005

“Too Big to Move Fast?” —Headline, BW, 09.2005

Page 62: Part #1: Introduction EXCELLENCE. ALWAYS

Different!*

*“Dramatic Difference” (DH), “Remarkable Point of view” (SG)

Page 63: Part #1: Introduction EXCELLENCE. ALWAYS

This is not a “mature category.”

Page 64: Part #1: Introduction EXCELLENCE. ALWAYS

This is an “undistinguished category.”

Page 65: Part #1: Introduction EXCELLENCE. ALWAYS

“When we did it ‘right’ it was still pretty ordinary.”

—Barry Gibbons on “Nightmare No. 1”

Page 66: Part #1: Introduction EXCELLENCE. ALWAYS

“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/2003

Page 67: Part #1: Introduction EXCELLENCE. ALWAYS

“The short road

to ruin is to emulate the methods of

your adversary.” — Winston

Churchill

Page 68: Part #1: Introduction EXCELLENCE. ALWAYS

“Value innovation is about making the competition

irrelevant by creating uncontested market space. We argue that

beating the competition within the confines of the existing industry is

not the way to create profitable growth.”

—Chan Kim & Renée Mauborgne (INSEAD), from Blue Ocean Strategy (The Times/London)

Page 69: Part #1: Introduction EXCELLENCE. ALWAYS

Focus!

Page 70: Part #1: Introduction EXCELLENCE. ALWAYS

Focus: “All Strategy Is Local: True competitive advantages

are harder to find and maintain

than people realize. The odds are best in

tightly drawn markets, not big,

sprawling ones” —Title/

Bruce Greenwald & Judd Kahn/HBR09.05

Page 71: Part #1: Introduction EXCELLENCE. ALWAYS

Big WinnersLousy industry … Specialty (No

competition) … Smaller than competitors

4 Traits: Sweet spot … Agility … Discipline

… FOCUSSource: Alfred Marcus, Big Winners and Big Losers:

The 4 Secrets of Long-term Business and Failure

Page 72: Part #1: Introduction EXCELLENCE. ALWAYS

“We will not, I repeat not,

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

Page 73: Part #1: Introduction EXCELLENCE. ALWAYS

Easy!

Page 74: Part #1: Introduction EXCELLENCE. ALWAYS

FLASH!

Innovation

is easy!

Page 75: Part #1: Introduction EXCELLENCE. ALWAYS

Innovation’s Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

Page 76: Part #1: Introduction EXCELLENCE. ALWAYS

We become who we hang

out with!

Page 77: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 78: Part #1: Introduction EXCELLENCE. ALWAYS

Hard!

Page 79: Part #1: Introduction EXCELLENCE. ALWAYS

“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/Harvard Business Review

Page 80: Part #1: Introduction EXCELLENCE. ALWAYS

BOLD!

Page 81: Part #1: Introduction EXCELLENCE. ALWAYS

No Wiggle Room!

“Incrementalism

is innovation’s worst enemy.”

Nicholas Negroponte

Page 82: Part #1: Introduction EXCELLENCE. ALWAYS

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make Big Changes

to Big Things.”

—Roger Enrico, former Chairman, PepsiCo

Page 83: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 84: Part #1: Introduction EXCELLENCE. ALWAYS

“Reward excellent failures.

Punish mediocre

successes.”Phil Daniels, Sydney exec

Page 85: Part #1: Introduction EXCELLENCE. ALWAYS

Speed/

Tempo!

Page 86: Part #1: Introduction EXCELLENCE. ALWAYS

“We don’t sell

insurance anymore.

We sell speed.”

Peter Lewis, Progressive

Page 87: Part #1: Introduction EXCELLENCE. ALWAYS

“Strategy meetings held once or twice a year” to

“Strategy meetings needed several times a week”

Source: New York Times on Meg Whitman/eBay

Page 88: Part #1: Introduction EXCELLENCE. ALWAYS

Action

!

Page 89: Part #1: Introduction EXCELLENCE. ALWAYS

TP/BW on BigCo Sin #1:

“too much talk, too little do”

Page 90: Part #1: Introduction EXCELLENCE. ALWAYS

“Ninety percent of what we call

‘management’ consists of making

it difficult for people to get

things done.” – Peter Drucker

Page 91: Part #1: Introduction EXCELLENCE. ALWAYS

“Execution is the job of

the business leader.” —Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

Page 92: Part #1: Introduction EXCELLENCE. ALWAYS

“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

Page 93: Part #1: Introduction EXCELLENCE. ALWAYS

Measurable!

Page 94: Part #1: Introduction EXCELLENCE. ALWAYS

Innovation Index: How many of your Top 5 Strategic

Initiatives/Key Projects score 8 or higher (out of 10) on a

“Weird”/ “Profound”/ “Wow”/“Game- changer”

Scale?

Page 95: Part #1: Introduction EXCELLENCE. ALWAYS

Personal!

Page 96: Part #1: Introduction EXCELLENCE. ALWAYS

Step #1: Buy a Mirror!

Page 97: Part #1: Introduction EXCELLENCE. ALWAYS

“The First step in a ‘dramatic’

‘organizational change program’ is obvious—

dramatic personal change!” —RG

Page 98: Part #1: Introduction EXCELLENCE. ALWAYS

Summary:

WallopWal*Mart16*

*Or: Why it’s so unbelievably easy to beat a GIANT Company

Page 99: Part #1: Introduction EXCELLENCE. ALWAYS

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!!)

Page 100: Part #1: Introduction EXCELLENCE. ALWAYS

$798

Page 101: Part #1: Introduction EXCELLENCE. ALWAYS

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

Foods

Page 102: Part #1: Introduction EXCELLENCE. ALWAYS

7X. 730A-800P.

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

Page 103: Part #1: Introduction EXCELLENCE. ALWAYS
Page 104: Part #1: Introduction EXCELLENCE. ALWAYS

3. Re-imagine Organizing I:

IS/IT as Disruptive Tool!

Page 105: Part #1: Introduction EXCELLENCE. ALWAYS

We all live in

Dell-Wal*Mart-

eBay-Google World!

Page 106: Part #1: Introduction EXCELLENCE. ALWAYS

“the FedEx Economy”

—headline/New York Times/10.08.05

Page 107: Part #1: Introduction EXCELLENCE. ALWAYS

“Any3”: Anything/ Anywhere/ Anytime

Page 108: Part #1: Introduction EXCELLENCE. ALWAYS

Power Tools for Power Solutions/

Strategies! —TP

Page 109: Part #1: Introduction EXCELLENCE. ALWAYS

“Ebusiness is about rebuilding the

organization from the ground up. Most companies today

are not built to exploit the Internet. Their business processes, their approvals, their

hierarchies, the number of people they employ … all of that is wrong for running

an ebusiness.” —Ray Lane, Kleiner Perkins

Page 110: Part #1: Introduction EXCELLENCE. ALWAYS

5% F500 have CIO on Board: “While

some of the world’s most admired companies—

Tesco, Wal*Mart —are transforming the business landscape by including technology experts on their boards, the vast majority are

missing out on ways to boost productivity, competitiveness and shareholder value.”

Source: Burson-Marsteller

Page 111: Part #1: Introduction EXCELLENCE. ALWAYS

4. Re-imagine

Organizing II: The Age of

“Best-sourcing.”

Page 112: Part #1: Introduction EXCELLENCE. ALWAYS

“Organizations will still be critically important in the

world, but as ‘organizers,’ not

‘employers’!” — Charles Handy

Page 113: Part #1: Introduction EXCELLENCE. ALWAYS

TP In Nagano …

Revenue: $10B

FTE: 1*

*Maybe

Page 114: Part #1: Introduction EXCELLENCE. ALWAYS

Not “out sourcing”Not “off shoring”

Not “near shoring”Not “in sourcing”

but …

“Best Sourcing”

Page 115: Part #1: Introduction EXCELLENCE. ALWAYS

“global innovation networks”

vs

“research in large monolithic companies”

Source: George Colony/Forrester Research

Page 116: Part #1: Introduction EXCELLENCE. ALWAYS

5. Re-imagine Business’s

Fundamental Value Proposition: PSFs

Unbound, or Fighting “Inevitable Commoditization”

via “The ‘Gamechanging Solutions’ Imperative.”

Page 117: Part #1: Introduction EXCELLENCE. ALWAYS

Up, Up, Up,

Up

the Value-added Ladder.

Page 118: Part #1: Introduction EXCELLENCE. ALWAYS

$55B

Page 119: Part #1: Introduction EXCELLENCE. ALWAYS

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

Page 120: Part #1: Introduction EXCELLENCE. ALWAYS

“Big Brown’s New Bag: UPS

Aims to Be the Traffic Manager for Corporate

America” —Headline/BW/2004

Page 121: Part #1: Introduction EXCELLENCE. ALWAYS

And …

MasterCard Advisors

Page 122: Part #1: Introduction EXCELLENCE. ALWAYS

Huge: Customer Satisfaction versus Customer

Success

Page 123: Part #1: Introduction EXCELLENCE. ALWAYS

The Value-added Ladder/Stuff ‘n’ Things

Goods Raw Materials

Page 124: Part #1: Introduction EXCELLENCE. ALWAYS

The Value-added Ladder/Stuff & Transactions

ServicesGoods

Raw Materials

Page 125: Part #1: Introduction EXCELLENCE. ALWAYS

The Value-added Ladder/Opportunity-seeking

Gamechanging Solutions

ServicesGoods

Raw Materials

Page 126: Part #1: Introduction EXCELLENCE. ALWAYS

6. Re-imagine Organizing IV: The White-Collar Tsunami and the Professional Service Firm (“PSF”) Imperative.

Page 127: Part #1: Introduction EXCELLENCE. ALWAYS

“ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of

irrelevance—disintermediation is just another way

of saying that … you’ve become

irrelevant to your customers.”

—John Battelle/Point/Advertising Age/07.05

Page 128: Part #1: Introduction EXCELLENCE. ALWAYS

Chicago:

HRMAC

Page 129: Part #1: Introduction EXCELLENCE. ALWAYS

“support function” / “cost center” /

“bureaucratic drag”

or …

Page 130: Part #1: Introduction EXCELLENCE. ALWAYS

Are you … “Rock Stars of the

Age of Talent”

Page 131: Part #1: Introduction EXCELLENCE. ALWAYS

Answer: Professional Service Firm/PSF!

Department Head

to …

Managing

Partner, IS [HR, R&D, etc.] Inc.

Page 132: Part #1: Introduction EXCELLENCE. ALWAYS

Answer:

PSF

Page 133: Part #1: Introduction EXCELLENCE. ALWAYS

The “PSF35”: Thirty-Five

Professional Service Firm Marks of Excellence

Page 134: Part #1: Introduction EXCELLENCE. ALWAYS

The PSF35: The Work & The Legacy

1. CRYSTAL CLEAR POINT OF VIEW (Every 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 Aims7. 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”

Page 135: Part #1: Introduction EXCELLENCE. ALWAYS

Point of View!

Point of Dramatic

Difference!

Page 136: Part #1: Introduction EXCELLENCE. ALWAYS

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet Lifetime Value Maximization

Strategic Supply-chain Executive

Customer Experience Director (via drivers)

Page 137: Part #1: Introduction EXCELLENCE. ALWAYS

“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”/AnonVSE-Spain)

Page 138: Part #1: Introduction EXCELLENCE. ALWAYS

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)

Page 139: Part #1: Introduction EXCELLENCE. ALWAYS

7. Re-imagine Enterprise as

Theater I: A World of Scintillating “Experiences.”

Page 140: Part #1: Introduction EXCELLENCE. ALWAYS

“Experiences are as distinct

from services as services are from

goods.” —Joe Pine & Jim Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

Page 141: Part #1: Introduction EXCELLENCE. ALWAYS

“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

Page 142: Part #1: Introduction EXCELLENCE. ALWAYS

“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

Page 143: Part #1: Introduction EXCELLENCE. ALWAYS

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”

Page 144: Part #1: Introduction EXCELLENCE. ALWAYS

The Value-added Ladder/Memorable Connection

Spellbinding Experiences

Gamechanging SolutionsServicesGoods

Raw Materials

Page 145: Part #1: Introduction EXCELLENCE. ALWAYS

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs.

“Great Vacation”/ “Great Conference”/ “Operation Personal

Renewal”

Page 146: Part #1: Introduction EXCELLENCE. ALWAYS

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”

Page 147: Part #1: Introduction EXCELLENCE. ALWAYS

8. Re-imagine Enterprise as

Theater II: Embracing the “Dream

Business.”

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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

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The Value-added Ladder/Emotion

Dreams Come True

Spellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

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Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell dreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George,

Domain Home Fashions

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IBM, UPS, GE …

Dream Merchants

!

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PSFs (PSF35) …

Dream Merchants!

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9. Re-imagine the “Soul” of New Value: Design

Rules!

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Franchise Lost!

TP: “How many of you [600] really

crave a new Chevy?”

NYC/IIR/061205

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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

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“Design is

treated like a religion at

BMW.”Fortune

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“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. Design is the fundamental soul

of a man-made creation.” —Steve Jobs

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“If you can’t win on ‘cost,’ then you’re left with

‘cool.’ ” —Anon./NZ

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Hypothesis: “Design” is the principle

“metaphor” for the encompassing Value-

added Imperative!

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10. Re-imagine the Fundamental Selling

Proposition: “It” all adds up to …

(THE BRAND.) (THE STORY.)(THE DREAM.)

The Love.

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“Brands have run out

of juice. They’re

dead.” —Kevin Roberts/Saatchi &

Saatchi

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Kevin Roberts:

Lovemarks!

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Up, Up, Up,

Up

the Value-added Ladder.

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Lovemark Dreams Come True

Spellbinding ExperiencesGamechanging Solutions

ServicesGoods

Raw Materials

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Lead It:

New “C-

Levels”

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CXO*

*Chief eXperience Officer

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CDM*

*Chief Dream Merchant

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CL O*

*Chief Lovemark Officer

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CWO*

*Chief WOW Officer

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CSTO*

*Chief Storytelling Officer

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CRO*

*Chief Revenue Officer

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11. Re-imagine the Customer I: Trends Worth Trillion$$$ …

Women Roar.

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“Women are the

majority market”

—Fara Warner/The Power of the Purse

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?????????

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%

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Thanks, Marti

Barletta!

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The Perfect Answer

Jill and Jack buy slacks in black…

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Read This Book …

EVEolution: The Eight

Truths of Marketing

to WomenFaith Popcorn & Lys Marigold

Page 183: Part #1: Introduction EXCELLENCE. ALWAYS

“Women don’t buy

brands. They join them.”

EVEolution

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2.6 vs. 21

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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.

6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

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10. Women’s Market =

Opportunity No. 1.

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Why?

Page 188: Part #1: Introduction EXCELLENCE. ALWAYS

2005

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Good Thinking, Guys!

“Kodak Sharpens Digital Focus

On Its Best Customers:

Women”

—Page 1 Headline/WSJ/0705

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Cases!McDonald’s (“mom-centered” to “majority consumer”; not

via kids)

Home Depot (“Do it Herself”)

P&G (more than “house cleaner”)

DeBeers (“right-hand rings”/$4B)

AXA FinancialKodak (women = “emotional centers of the household”)

Nike (more than jock endorsements; new def sports; majority consumer)

AvonBratz (young girls want “friends,” not a blond sterotype)

Source: Fara Warner/The Power of the Purse

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12. Re-imagine the Customer II: Trends

Worth Trillion$$$ …

Boomer Bonanza/ Godzilla Geezer.

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2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

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44-65: “New Customer Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

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“The New Customer Majority is the only adult

market with realistic prospects for significant

sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder,

Ageless Marketing

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13. Re-imagine the Individual I:

Welcome to a Brand You World …

Distinct or Extinct

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Globalization1.0: Countries globalizing (1492-1800)

Globalization2.0: Companies globalizing (1800-2000)

Globalization3.0 (2000+): Individuals collaborating & competing globally

Source: Tom Friedman/The World Is Flat

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“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

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

not.” —Isabel Allende

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Personal “Brand Equity” Evaluation

– I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].

– My current Project is challenging me …– New things I’ve learned in the last 90 days include

…– My public “recognition program”

consists of …– Additions to my Rolodex in the last 90 days

include …

– My resume is discernibly different from last year’s at this time …

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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!)

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R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.**Renewal Investment Plan

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Distinct … or

… Extinct

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“It’s always

showtime.”

—David D’Alessandro, Career Warfare

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A “position” is not an

“accomplishment.” —TP

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We Live In A “Brand You”

World. Period.

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Getting to WOW Through Mastery of …

The Sales25.

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Getting Things Done: The

Power &

Implementation34.

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Presentation Excellence: The

PresX56

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The Interviewing Excellence: The IntX31

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14. Re-imagine Excellence I: The

Talent Obsession.

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“The Creative Age is a

wide-open game.”

—Richard Florida, The Rise of the Creative Class

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Brand =

Talent.

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“THE FUTURE BELONGS TO …

SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND …

AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE OPTION OF—EXPLOITING NATURAL

RESOURCES.”

Source: Juan Enriquez/As the Future Catches You

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“Leaders

‘do’ people.

Period.” —Anon.

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PARC’s Bob Taylor:

“Connoisseur

of Talent”

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Hire very good

people!

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“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

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DD$21M

Page 219: Part #1: Introduction EXCELLENCE. ALWAYS

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.

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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

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No Excuses!

Page 222: Part #1: Introduction EXCELLENCE. ALWAYS

Wegmans: #1100 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.

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15. Re-imagine Excellence II:

New Education for a New World.

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“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!

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16. Re-imagine Leadership for Totally

Screwed-Up Times: The

Passion Imperative.

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Create a Cause!

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“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)

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G.H.: “Create a ‘cause,’ not a ‘business.’

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“Management has a lot to do with answers. Leadership is a function of questions. And the

first question for a leader always

is: ‘Who do we intend to be?’ Not ‘What are we going to do?’

but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

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Find ’em!

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“The” Secret: Jack didn’t have a

“vision”!

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Les Wexner: From sweaters to …

people!

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Respect ’em!

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Amen!

“What creates trust, in the end, is the leader’s manifest

respect for the followers.”

— Jim O’Toole, Leading Change

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Make It a Grand

Adventure!

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“Ninety percent of what we call

‘management’ consists of making it difficult for people to get things done.” – Peter

Drucker

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Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a

Great Group is to allow its members to discover their

greatness.”

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Yes!!!!!!!!!!!!!!!!!

“free to do his or her absolute best” …

“allow its members to discover their

greatness.”

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“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

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“We are a ‘life

Success Company”’

founder, RE/MAX

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Trumpet an Exhilarating

Story!

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Best Story Wins!

“A key – perhaps the key – to leadership is

the effective communication

of a story.”—Howard Gardner/Leading Minds:

An Anatomy of Leadership

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“Leaders don’t just make products and make

decisions. Leaders make

meaning.” – John Seely Brown

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Live Your

Story!

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“You must

be the

change you wish to see in the

world.”Gandhi

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MBWA**HS/25+

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You = Your calendar*

*Calendars NEVER lie!!

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Try It!

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Sam’s Secret #1!

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“Fail faster. Succeed sooner.”

David Kelley/IDEO

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“Reward excellent failures.

Punish mediocre

successes.”Phil Daniels, Sydney exec

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Insist on

Speed!

Page 253: Part #1: Introduction EXCELLENCE. ALWAYS

“We don’t sell

insurance anymore.

We sell speed.”

Peter Lewis, Progressive

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Demand Action!

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“We have a ‘strategic’ plan. It’s

called ‘doing things.’” — Herb Kelleher

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Put Women

in Charge!

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“AS LEADERS, WOMEN

RULE: New Studies find that

female managers outshine their male counterparts in almost every measure”

Title, Special Report/BusinessWeek

Page 258: Part #1: Introduction EXCELLENCE. ALWAYS

Women’s Strengths Match New Economy Imperatives: Link [rather than rank]

workers; favor interactive-collaborative leadership style [empowerment beats top-down decision

making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily

accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate

cultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

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Dispense Enthusiasm!

Page 260: Part #1: Introduction EXCELLENCE. ALWAYS

“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

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BZ: “I am a … Dispenser of Enthusiasm!”

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“Most important,

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

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Avoid … Moderation!

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Kevin Roberts’ Credo

1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.

10. Avoid moderation!

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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

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“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make Big Changes

to Big Things.”

—Roger Enrico, former Chairman, PepsiCo

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“Reward excellent failures.

Punish mediocre

successes.”Phil Daniels, Sydney exec

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Avoid … Moderation!

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Insanely Great Language!

“Insanely Great.”

—Steve Jobs

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Radically Thrilling Language!

“Radically Thrilling.”

—BMW Z4 (ad)

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“Astonish me!” /S.D.

“Build something great!” /H.Y.

“Make it immortal!” /D.O.

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Gaspworthy!

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CTO**Chief Thrills Officer

Page 274: Part #1: Introduction EXCELLENCE. ALWAYS

CTO**Chief Transcendence Officer

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CWO**Chief WOW Officer

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!

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C!O*Chief ! Officer

Page 278: Part #1: Introduction EXCELLENCE. ALWAYS

Synonyms

PurityTranscendence

VirtueEleganceMajesty

Antonyms

Mediocrity

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Free the Lunatic Within!

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

the lunatic fringe.” — Jack Welch

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EXCELLE ALWAYS.