Slides* at … tompeters

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

Bestseller/Stockholm/30 May 2007Bestseller/Stockholm/30 May 2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

Slides* at …Slides* at …

tompeters.comtompeters.com

The StoryThe Story

Not your father’s worldNot your father’s worldBig = Pitiful.Big = Pitiful.

Excellence. Always. (what else?)Excellence. Always. (what else?)Innovate. Or. Die.Innovate. Or. Die.

Up, Up, Up the “Value Added Up, Up, Up the “Value Added Chain.”Chain.”

“New” Markets (Women, “New” Markets (Women, Boomers)Boomers)

Talent = Brand.Talent = Brand.Leading with passionLeading with passion

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

Hire Great PeopleHire Great People (Resilient, Passionate)(Resilient, Passionate)

Try a Lot of StuffTry a Lot of Stuff (S.A.V./R.F.A.)(S.A.V./R.F.A.)

Enjoy It While It Enjoy It While It LastsLasts

NOT NOT YOUR YOUR

FATHER’FATHER’S S

WORLD!WORLD!

““Copper Thieves Copper Thieves Cause Havoc for Cause Havoc for Commuters”Commuters” ——The GuardianThe Guardian

(London) 28.05.07(London) 28.05.07

“10 Billion Dollars: Contributing to the “10 Billion Dollars: Contributing to the Development of Knowledge and Culture”Development of Knowledge and Culture” —Mohammed Bin —Mohammed Bin

Rashid Al Maktoum Foundation (Rashid Al Maktoum Foundation (FTFT, 29.05.07), 29.05.07)

*Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone GroupGroup

Chicagoland’s

Mystery Disappearances …

China’s share of global consumption/2005:

Cement … 47%Cotton … 37%Coal … 30% Steel … 26%

Source: BusinessWeek/08.05

““Copper Thieves Cause Havoc forCopper Thieves Cause Havoc for

Commuters” Commuters” ——The GuardianThe Guardian (London) 28.05.07 (London) 28.05.07

“10 Billion Dollars: “10 Billion Dollars: Contributing to the Contributing to the

Development of Development of Knowledge andKnowledge and

Culture” Culture” —Mohammed Bin Rashid Al Maktoum —Mohammed Bin Rashid Al Maktoum

Foundation (Foundation (FTFT, 29.05.07), 29.05.07)

*Last week: Saudis buy GE Plastics for $13B; China gov’t *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone Groupinvestment firm buys 10% of Blackstone Group

2424%%

“There is no job that

is America’s God-given

right anymore.”

—Carly Fiorina/HP/January2004

40,000,000/2040,000,000/20““[Former Fed Vice-chairman Alan] [Former Fed Vice-chairman Alan] Blinder … remains an Blinder … remains an implacable opponent of tariffs and trade barriers. But implacable opponent of tariffs and trade barriers. But

now he is saying loudly that a new industrial revolutionnow he is saying loudly that a new industrial revolution—communication technology that allows services to be —communication technology that allows services to be

delivered from afar—will put as many as delivered from afar—will put as many as 40 40 million Americanmillion American

jobsjobs at risk of being shipped out of the country at risk of being shipped out of the country

in the next decade or two.”*in the next decade or two.”* —Wall Street Journal —Wall Street Journal /0328/0328

*Blinder: 40 million = *Blinder: 40 million = ““only the tiponly the tip of a very big icebergof a very big iceberg.”.”

““Income Income Confers Confers No No

ImmunityImmunity as as Jobs Migrate”Jobs Migrate”

—Headline/USA Today/02.2004

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

headline/FT/0327 (500 (500 of 900 of 900

ResearchResearch))

20020033: : 98% U.S.98% U.S.20020055: : U.S. 150;U.S. 150; Shanghai 500 Shanghai 500

Level 5 (top) certification/Level 5 (top) certification/Carnegie Mellon Software Engineering Institute: Carnegie Mellon Software Engineering Institute:

3535 of of

7070 companies in world are from Indiacompanies in world are from India

Source: Source: WiredWired

““Teenagers in Teenagers in India have big India have big

ambitions—and ambitions—and the confidence to the confidence to

match”match” —headline/Fortune

““Short on Priests, Short on Priests, U.S. Catholics U.S. Catholics

Outsource Prayer to Outsource Prayer to Indian Clergy”Indian Clergy”

—Headline, New York Times (“Special intentions,” $.90 for Indians, $5.00 for Americans)

““Ogre to Slay? Ogre to Slay? Outsource It to Outsource It to

Chinese”Chinese” (New York Times, (New York Times,

page 1—news section).page 1—news section).

The “factory”: Fuzhou, China. The workers: youngsters logging 12-The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San hour shifts. Their clientele: youngsters from “Seoul to San

Francisco.” The “work”: The Chinese youngsters are playing the early Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.the pain and time associated with those annoying first few levels.

2626m*m*

*60,000/3 yrs

4343h*h*

*200/yr

1 Houston/1 Houston/

Month/15Month/15

55 (Years)(Years) /42/42 (New (New

Airports)Airports)

200 cities with 200 cities with >>1,000,000 1,000,000 population.population.

Source: “China Takes Off”, David Hale &Source: “China Takes Off”, David Hale & Lyric Hughes Hale/ Lyric Hughes Hale/Foreign AffairsForeign Affairs

Chinese Offshore TouristsChinese Offshore Tourists

’93: 3M’93: 3M’03: 21M’03: 21M

THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS

—Clyde Prestowitz

““Where are you going? … Where are you going? … It’s It’s only 2a.m.only 2a.m. … …

You see, you can live your life at 120 miles You see, you can live your life at 120 miles an hour, and that’s pretty impressive. But an hour, and that’s pretty impressive. But it’s not good enough. Unless you live at it’s not good enough. Unless you live at

150 miles an hour, the world will pass you 150 miles an hour, the world will pass you by,” by,”

HRH Prince AlwaleedHRH Prince Alwaleed**

*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc.*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc.

Source: “Prince Alwaleed, Inside the private world of the Middle East’sSource: “Prince Alwaleed, Inside the private world of the Middle East’s most powerful investor” cover story, most powerful investor” cover story, The BusinessThe Business, 0519.07, 0519.07

EXCELLEXCELL--

ENCE??ENCE??????

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Forbes100” from 1917 to 1987: 3939 members members

of the Class of ’17 were alive in ’87; 18 in ’87 of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly F100; 18 F100 “survivors” significantly

underunderpperformederformed the market; the market;

just just 22 (2%), (2%), GEGE & & KodakKodak, ,

outoutpperformederformed the market from the market from 1917 to 1987. 1917 to 1987.

S&P 500 from 1957 to 1997: 7474 members of the Class of ’57 were alive

in ’97; 1212 (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

BIG?BIG?????

More than $$$$

#1#1 R&D

spending, last 25 years?

GGMM

Dick Kovacevich: You don’t You don’t get better get better by being by being

bigger. You bigger. You get worse.”get worse.”

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman Sachs’

Investment Policy Committee,

answered: I’m sure there I’m sure there are success stories out are success stories out

there, but at this there, but at this moment I draw a moment I draw a

blankblank.”.” —Mark Sirower, The Synergy Trap

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

DDaimler.aimler. And And DDumb. umb. Both Start Both Start with “with “dd.”.”

““Marriage in Marriage in heaven”heaven” —Daimler-Benz and —Daimler-Benz and

Chrysler exchange vows, circa Chrysler exchange vows, circa 19981998 (Jürgen (Jürgen Schrempp)Schrempp)

“the “the divorce on divorce on earthearth”” —Daimler exec, —Daimler exec,

circa circa 20072007, on probable Cerberus private equity , on probable Cerberus private equity purchase of Chrysler from Daimlerpurchase of Chrysler from Daimler

DaimlerChrysler/’98-’07:DaimlerChrysler/’98-’07: DuhDuh,, Duh Duh,, Duh Duh,, Duh Duh and … and … DuhDuh

ManifoldManifold SynergiesSynergies//NoNo

Severe Severe ScaleScale limits/ limits/YesYes

CultureCulture clashes/ clashes/YesYes

Rushmorean Rushmorean egoego issues/ issues/YesYes

CustomerCustomer acceptance acceptance /No/No

BIAS.BIAS.BUILT.BUILT.

TO.TO.LAST.LAST.NOT.NOT.

TP#1*:TP#1*:

NetscapeNetscape!!

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

Built to Lastvs

Built Built to to ChangeChange//Rock Rock the the

WorldWorld

The The lastlast word: word: There There is is nono “last “last

word.”word.”

EXCELLENCE. EXCELLENCE. CIRCA 1982.CIRCA 1982.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

2006.2006.

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

The Peters PrinciThe Peters Principplesles:: Enthusiasm. Enthusiasm.

Emotion. Emotion. ExcellenceExcellence.. Energy. Excitement. Service. Energy. Excitement. Service.

Growth. Creativity. Growth. Creativity. Imagination. Vitality. Joy. Imagination. Vitality. Joy.

Surprise. Independence. Spirit. Surprise. Independence. Spirit. Community. Limitless human Community. Limitless human

potential. Diversity. potential. Diversity.

Profit.Profit. Innovation. Design. Innovation. Design. Quality. Entrepreneurialism. Quality. Entrepreneurialism.

Wow!Wow!

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.UNIVERSAL.UNIVERSAL.

Jim’s Jim’s GroupGroup

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer ServicesJim’s Dog WashJim’s Dog Wash

Jim’s Driving SchoolJim’s Driving SchoolJim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

Basement Basement Systems Inc.Systems Inc.

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!) (115,000!)

*1993: $0; 2003: $12M; *1993: $0; 2003: $12M; 2006: 2006:

$50,000,000+$50,000,000+

EXCELLENCE. EXCELLENCE.

INNOVATE. INNOVATE. OR. OR. DIE.DIE.

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!

TheThe Mess Mess IsIs TheThe

Message! Message! Period!Period!

An Economic Interpretation of the ConstitutionAn Economic Interpretation of the Constitution of the United States of the United States —Charles Beard (1913)

The Box: How the Shipping The Box: How the Shipping Container Made the World Container Made the World

Smaller and the World Smaller and the World Economy BiggerEconomy Bigger —Marc Levinson

Tube: The Invention of TelevisionTube: The Invention of Television —David & Marshall Fisher

Empires of Light: Edison, Tesla,Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify Westinghouse, and the Race to Electrify

the World the World —Jill Jonnes

The Soul of a New MachineThe Soul of a New Machine —Tracy Kidder

Rosalind Franklin: The Dark Lady of DNARosalind Franklin: The Dark Lady of DNA —Brenda Maddox

The Blitzkrieg MythThe Blitzkrieg Myth —John Mosier

InnoTac64InnoTac64

“Acquisitions are about buying market share.

Our challenge is Our challenge is to create to create

marketsmarkets.. There is a big difference.”

—Peter Job, former CEO, Reuters

Characteristics of the “Also rans”*Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”**FortuneFortune, article on “Most Admired Global Corporations”, article on “Most Admired Global Corporations”

revenue revenue matters matters most most

The Commerce Bank ModelThe Commerce Bank Model

“cost cutting “cost cutting is a death is a death spiral.”spiral.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

The Commerce Bank ModelThe Commerce Bank Model

““overover-invest in -invest in our people, our people, overover--

invest in our invest in our facilities.”facilities.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

CCRR O*

*Chief RevenueRevenue Officer

We We becomebecome who we hang who we hang

out with out with

Measure “StranMeasure “Stranggeness”/Portfolio Qualiteness”/Portfolio Qualityy

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”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:

AtAt thethe totop!”p!”

— Gary Hamel/Harvard Business Review

WhackyWhackyWWikiikiWorldWorld

WowWow

Wikinomics:Wikinomics: How Mass How Mass

Collaboration Collaboration Changes Changes

EverythingEverything

——Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

Concoct a Concoct a Parallel Parallel

universe!universe!

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)

““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.

Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.

do do things.things.

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

drill.drill.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

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

try try things.things.

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

try.try.Miss.Miss.try.try.

““We are in a We are in a brawl with no brawl with no

rules.”rules.” —Paul Allaire

S.A.S.A.V.V.

Screw. Screw. things.things.

Up.Up.

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

No try. No try. No deal.No deal.

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Conscious Conscious measurementmeasurement

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

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

Scale?

personalpersonal

““Work Work on me on me

first.”first.” —Kerry Patterson,

Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

EXCELLENCE.EXCELLENCE.

VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

$55$55BB

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesGoods

Raw Materials


SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.

P.S.F.P.S.F.

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

yyou’ve ou’ve become become

irrelevant irrelevant toto y your our

customerscustomers.”.”

—John Battelle/Point/Advertising Age/07.05

““[Former Fed Vice-chairman Alan] [Former Fed Vice-chairman Alan] Blinder … Blinder … remains an implacable opponent of tariffs and remains an implacable opponent of tariffs and

trade barriers. But now he is saying loudly that a trade barriers. But now he is saying loudly that a new industrial revolution—communication new industrial revolution—communication

technology that allows services to be delivered technology that allows services to be delivered

from afar—will put as many as from afar—will put as many as 40 40 million Americanmillion American jobsjobs at risk of being shipped out of the at risk of being shipped out of the

country in the next decade or two.”*country in the next decade or two.”* —Wall Street —Wall Street Journal Journal /0328/0328

*Blinder: 40 million = *Blinder: 40 million = “only the tip“only the tip of a very big iceberg.”of a very big iceberg.”

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF


VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding ExperiencesExperiences

Gamechanging SolutionsServicesGoods

Raw Materials

CCXXOO**Chief eXperience Officer


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

DREAM IT.DREAM IT.

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. 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

The Value-added Ladder/ EMOTIONEMOTION

Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

““Dreams Come True”:Dreams Come True”:

IBMIBM


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

ALL YOU NEED IS ALL YOU NEED IS LOVE.LOVE.

““Brands Brands have run out have run out

of juice. of juice. They’re They’re

deaddead.”.” —Kevin Roberts/Saatchi &

Saatchi

Kevin Roberts:

LovemarLovemar

ksks!!

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

body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8

Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6

Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6

Nintendo …. 1.5Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

The Value-added Ladder/ The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding Experiences Gamechanging Solutions Gamechanging Solutions

ServicesServicesGoodsGoods

Raw MaterialsRaw Materials

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

““NEW” NEW” MARKETS.MARKETS.

women.women.BOOMERSBOOMERS

..GEEZERS.GEEZERS.

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

Women’sWomen’s Trifecta+ Trifecta+

**BuyBuy * *WealthWealth

**LeadLead

++ECLIPSE OF ECLIPSE OF MALESMALES

(Old/Retire; Young/Poorly educated)

The Perfect Answer

Jill and Jack buy slacks in black…

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

“She knows moreknows more about the [Audi] than the salesmanman who greets

her at the door. But how is she treated? As if she has a low IQ low IQ , is slightly hard of hearing hard of hearing , and really has no rightno right to be buying a luxury

car; and if she brought a male friend with her, odds are 10:1 that the

clueless salesperson spent most of his time speaking to him speaking to him .” —Selling to Men,

Selling to Women, Jeffery Tobias Halter

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

2020

$14,000,000,000,000$14,000,000,000,000--

$25,000,000,000,000 $25,000,000,000,000

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

2000-2010 Stats

18-44: -1%-1%

55+: ++2121%%(55-64: ++4747%%)

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western Western

EuropeansEuropeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, the , the biggestbiggest, the , the

wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most experimental & experimental &

exploratoryexploratory, the most , the most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult &

demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,

(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most

profoundly important commercial market profoundly important commercial market in the history of the world—and we will be in the history of the world—and we will be the Center of your universe for the next the Center of your universe for the next

twenty-fivetwenty-five yearsyears. We have arrived!. We have arrived!

See me.See me.Watch me.Watch me.respect me.respect me.

Suck up to me.Suck up to me.Serve me.Serve me.Love me.Love me.

Love my longevity.Love my longevity.Love my m-o-n-e-y. Love my m-o-n-e-y.

Elizabeth Cady StantonElizabeth Cady Stanton(more or less) (circa 0331.2007)(more or less) (circa 0331.2007)

See “See “herher.”.”Watch Watch herher..respect respect herher..

Be obsequious to Be obsequious to herher..Serve Serve herher..Love Love herher..

Love her Love her longlong longevity. longevity.Love Love herher m-o-n-e-y. m-o-n-e-y.

(which is damn near (which is damn near a-l-la-l-l the mon-the mon-$$$$$$$$$$$$.) .)

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

44-65: “New “New Customer Customer Majority”Majority” *

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

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.TALENT.TALENT.

Hire Hire ververy y good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22

years.”

—Ed Michaels, War for Talent

INVITE THEM INVITE THEM TO JOIN US IN TO JOIN US IN A JOURNEY TO A JOURNEY TO EXCELLENCE!EXCELLENCE!

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE

PERSON”? PERSON”? PROVE ITPROVE IT..

PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.

NOBLEST NOBLEST MISSION.MISSION.

SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE

PERSON”? PERSON”? PROVE ITPROVE IT..

< CAPEX< CAPEX> People!> People!

LIVE FOR LIVE FOR TALENT!TALENT!

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

53 = 53 = 5353

Promise #1:Promise #1: ““NeverNever, ever , ever again will I again will I evaluateevaluate

anyone using a anyone using a standardizedstandardized instrument instrument

devised bydevised by a “professional” in a “professional” in inhuman Resources.”inhuman Resources.”

53 = 53 = 5353

One size … One size …

NEVERNEVER

…… fits all. fits all.

Arts/Arts/??????V.P.V.P.ss//??????

Nobel Prizes/Nobel Prizes/??????Our spouse/Our spouse/??????Our children/Our children/??????

NEVERNEVER … ever … ever … ever ……. … ever …….

ever … ever … ever … ever …

everever … ever … ever … ever … … ever … everever … …

EVEREVER … …

ever … ever … ever … ever … ever …ever …

Brand Brand = =

Talent.Talent.

EXCELLENCE.EXCELLENCE. BEDROCK.BEDROCK.

LEADERSHIP.LEADERSHIP.“12 P“12 Pss.”.”

Tom Peters/04.18.2007Tom Peters/04.18.2007

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

pissed offpissed off. . PlayfulPlayful..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..

PositivePositive..




PositivePositive..

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon

(+TP’s writing room pics)(+TP’s writing room pics)

Leader Job OneLeader Job One

Paint Paint Portraits of Portraits of

ExcellenceExcellence!!

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..



PositivePositive..

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..



PositivePositive..

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

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

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

2255

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal.. pissed offpissed off. .

PlayfulPlayful..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..

PositivePositive..

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi




PositivePositive..

Pissed Pissed Off* **Off* **

*As in “I’m pissed off and I’m not gonna take it any more …”*As in “I’m pissed off and I’m not gonna take it any more …”

**Innovation Stems from **Innovation Stems from IrritationIrritation (Re-imagining Results from (Re-imagining Results from

RageRage))

F(Anger/Passion)F(Anger/Passion) >>>> >>>> f(Pushback f(Pushback from Threatened from Threatened

Fat-cats & Fat-cats & Bureau-crats)Bureau-crats)


pissed offpissed off. .

PlayfulPlayful..PERSISTENCEPERSISTENCE..


PositivePositive..

SERIOUS SERIOUS PLAYPLAY

““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and

able to seriously play. able to seriously play. ‘‘Serious playSerious play’ is not an ’ is not an

oxymoron; it is the oxymoron; it is the essenceessence of of innovationinnovation.” .” —Michael Schrage,—Michael Schrage, Serious PlaySerious Play

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.

Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.




PositivePositive..

““This [adolescent] incident [of getting from point A to point B] is notable This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his not only because it underlines Grant’s fearless horsemanship and his

determination, but also it is the first known example of a very important determination, but also it is the first known example of a very important

peculiarity of his characterpeculiarity of his character:: Grant had an Grant had an extreme, almost phobic extreme, almost phobic dislike of turning back dislike of turning back

and retracing his steps.and retracing his steps. If he If he

set out for somewhere, he would get there somehow, whatever the set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, the factors that made him such a formidable general. Grant would always,

always press on—turning back was not an option for him.”always press on—turning back was not an option for him.”

—Michael Korda, Ulysses Grant

““incredible incredible power of power of

endurance”endurance” ——

ppolitical colleague, on Nicolas Sarkozy, repeatedly written off by the olitical colleague, on Nicolas Sarkozy, repeatedly written off by the public andpublic and

the celestial powers of French politics ( the celestial powers of French politics (FTFT, 0515.07), 0515.07)

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William —William

Feather, authorFeather, author

Re-Re-lentlent-less-less



PERSISTENCEPERSISTENCE..


PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —Anon.

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

““Sorry, I’ve got Sorry, I’ve got to go—the HR to go—the HR people get on people get on

me if I don’t go me if I don’t go do my ‘shake do my ‘shake

hands-chat up’ hands-chat up’ duty”duty” —president, large division —president, large division

of large company in the _______ industryof large company in the _______ industry



PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PeculiarPeculiar..PotentPotent..

PositivePositive..

““Normal” Normal”

= = “o “o forfor 800”800”



PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..

PotentPotent..PositivePositive..

Kevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

““If I had any epitaph that I If I had any epitaph that I would rather have more than would rather have more than any other, it would be to say any other, it would be to say

that I hadthat I had … …disturbed disturbed the sleep of my the sleep of my

generation.”generation.” —Adlai Stevenson—Adlai Stevenson

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt




PositivePositive..

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo




PositivePositive..

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

"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!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

Ger-Ger-onon-i--i-momo!!

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