Slides* at … tompeters *also “long”

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.Re-imagine2007/Focus Conferences Re-imagine2007/Focus Conferences

Amsterdam/19 December 2006Amsterdam/19 December 2006

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

Slides* at …

tompeters.comtompeters.com*also “long”

““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)

TheThe Irreducible209Irreducible209

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

TheThe Irreducible209+Irreducible209+One Word+One Word+

The Sales122The Sales122 60TIBs60TIBs

Tom-Tom-AA-to,Tom--to,Tom-ahah-to-to

EXCELLENCE.EXCELLENCE.

ALL YOU NEED TO KNOW. ALL YOU NEED TO KNOW.

2255

MBWA, Grameen Style!MBWA, Grameen Style!“Conventional banks ask their clients to come “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor to their office. It’s a terrifying place for the poor and illiterate. … and illiterate. … The entire Grameen Bank The entire Grameen Bank

system runs on the principle that people system runs on the principle that people should not come to the bank, the bank should not come to the bank, the bank

should go to the peopleshould go to the people.. … If any staff … If any staff member is seen in the office, it should be taken member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. as a violation of the rules of the Grameen Bank.

… It is essential that [those setting up a new … It is essential that [those setting up a new village Branch] have village Branch] have nono office and office and nono place to place to stay. The reason is to make us as different as stay. The reason is to make us as different as

possible from government officialspossible from government officials.” .” Source: Source: Muhammad Yunus, Banker to the Poor


ALL YOU NEED TO KNOW. ALL YOU NEED TO KNOW.BONUS.BONUS.

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb


ALL. YOU. NEED. ALL. YOU. NEED. TO. KNOW. TO. KNOW. ANYANYWHERE.WHERE.

ANYANY MARKET. MARKET. ANYANY TIME. TIME.

Jim’s Jim’s GroupGroup

That’s a

BigBig Number ….

THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS

—Clyde Prestowitz

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

Airports)Airports)

“There is no job that

is America’s God-given

right anymore.”

—Carly Fiorina/HP/January2004

“There is no job that

is _____’s God-given

right anymore.”

““Income 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))

“Forget China, India and the

Internet: Economic Growth Is Driven by WomenWomen.”

—Headline, Economist, April 15, 2006, Leader, page 14

EXCELLENCE. EXCELLENCE. EVERYWHERE.EVERYWHERE.ASPIRATION.ASPIRATION.NECESSITY.NECESSITY.

“One Singaporean worker costs as much as …

3 … in Malaysia

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

Source: The Straits Times/2003

“Thaksinomics” (after Thaksin Shinawatra)

“Bangkok Fashion City”:

“managed “managed asset reflation”asset reflation”

(add to brand value of Thai textiles by demonstrating

flair and design excellence)

Source: The Straits Times/2004

SpainPortugal

ItalyIreland

Singapore TaiwanThailandMalaysia

Singapore Philippines

UAEOmanChile

BotswanaRomania

New ZealandNew Zealand

“Better By Design”: A National Strategy

NZ = DesignNZ = Design ExcellenceExcellence

““The Creative The Creative Age is aAge is a widewide--openopen g gameame.”.”

—Richard Florida, The Rise of the Creative Class

EXCELLENCE. THE EXCELLENCE. THE

MANDATE.MANDATE.

“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

Welcome to the “Club of Shattered Dreams”:

Of Korea’s Top 100Top 100 companies in 1955, only 77 were still on the

list in 2004. The 1997 crisis “destroyed halfhalf of Korea’s 3030 largest conglomerates.”

Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

S&P Stability Ratings*

1985 2006Low Risk 41% Low Risk 41% 13%13% Average Risk 24% 14%High RiskHigh Risk 35% 35% 73%73%*Likelihood of stable long-term earnings growth

Source: Fortune (2 October 2006)

““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 responsive one most responsive to changeto change.”.” —Charles Darwin

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

C.E.O.C.E.O. to

C.D.O.C.D.O.

““Wealth in this new regime Wealth in this new regime flows directly from innovation, flows directly from innovation,

not optimization. That is, not optimization. That is, wealth is not gained by wealth is not gained by

perfecting the known, perfecting the known, but by but by imperfectly seizing the imperfectly seizing the unknown.”unknown.” —Kevin Kelly, New Rules for

the New Economy

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

EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.

BASICS.BASICS.K.I.S.S.K.I.S.S.

Raging Success Raging Success == P P-SQUARED-SQUARED. .

CC. . EE-CUBED-CUBED..

PPeople.eople.PProduct.roduct.CClients.lients.

EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.

PPeople.eople.PProduct.roduct.CClients.lients.

EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.

RResilience.esilience.RRelentless. elentless.

SSenility.enility.

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

““A pattern emphasized in the case A pattern emphasized in the case studies in this book is the degree to studies in this book is the degree to

which powerful competitors which powerful competitors not only resist innovative threats, but actually resist all efforts to

understand them, preferring to preferring to further their positions in older further their positions in older

products. This results in a surge of products. This results in a surge of productivity and performance that productivity and performance that

may take the old technology to may take the old technology to unheard of heights. But in most cases unheard of heights. But in most cases

this is a sign of impending death.”this is a sign of impending death.” ——Jim Utterback, Jim Utterback, Mastering the Mastering the

Dynamics of InnovationDynamics of Innovation

EXCELLENCE. EXCELLENCE. THE WORD.THE WORD.

Synonyms

PurityPurityTranscendenceTranscendence

VirtueVirtueEleganceEleganceMajestyMajestyAntonyms

Mediocrity

EXCELLENCE. EXCELLENCE.

PETERS.PETERS.WATERMAN.WATERMAN.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”

ExIn*: 1982-2002/Forbes.com

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

*Forbes/Excellence Index /Basket of 32 publicly traded stocks


(MAYBE.)(MAYBE.)

Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press

“The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit

anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.”

Approximately 640640 Index entries: Customer/s

(service, retention, loyalty), 44. People (employees, motivation, morale,

worker/s), 00. Innovation (product development, research &

development, new products), 00.

good words.good words.Bad wordsBad words.

Words that may NOT be used in my presence:

“Motivate“Motivate””

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

Words that may NOT be used in my presence:

“Marketing“Marketing””

SellSellSellSellSellSell

Incidentally …Incidentally …

“TAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touch Who is better at keeping in touch

with others?”with others?”Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women

Can Outsell Men, Nicki Joy & Susan Kane-Benson

Words that may NOT be used in my presence: Customer

service that …

“Exceeds “Exceeds expectations”expectations”

Radically Thrilling Language!

““Radically Radically Thrilling.”Thrilling.”

—BMW Z4 (ad)

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

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

The Peters Principles: Enthusiasm.Enthusiasm.

Emotion. Emotion. Excellence.Excellence. Energy. Energy. Excitement. Service. Growth. Excitement. Service. Growth.

Creativity. Imagination. Vitality. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Joy. Surprise. Independence. Spirit. Community. Limitless Spirit. Community. Limitless human potential. Diversity. human potential. Diversity. Profit.Profit. Innovation. Design. Innovation. Design.

Quality. Entrepreneurialism. Quality. Entrepreneurialism. Wow.Wow.

Enterprise* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, ,

creativecreative, , entrepreneurialentrepreneurial endeavor that elicits endeavor that elicits maximum concerted maximum concerted human potential in human potential in the the wholehearted wholehearted serviceservice of others of others.***

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

EXCELLENCE.EXCELLENCE.ASPIRATION. ASPIRATION. YOU & ME.YOU & ME.

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a way out. … A typical day at way out. … A typical day at the office for me begins by the office for me begins by

asking, asking, ‘‘What is What is impossible that I impossible that I am going to do am going to do todaytoday?’”?’” —Daniel Lamarre, —Daniel Lamarre,

president, Cirque du Soleilpresident, Cirque du Soleil

““Do one Do one thing every thing every

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

—Eleanor Roosevelt


DEFINED.DEFINED.


DEFINED.DEFINED.AGENDA. AGENDA. SETTER.SETTER.

Great Companies … SETSET THETHE

AGENDAAGENDA.* (PERIOD.)

* “disturb the sleep of …

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers

US Steel … Ford … US Steel … Ford … ToyotaToyota … Sears … … Sears … GM … ITT …GM … ITT … The Gap …The Gap … Limited …Limited …

Wal*MartWal*Mart …… TescoTesco …… P&G … 3M …P&G … 3M … IntelIntel … IBM …… IBM … AppleApple …… NokiaNokia ……

CiscoCisco … … DellDell … MCI … Sun …… MCI … Sun … MicrosoftMicrosoft …… GoogleGoogle … Enron …… Enron …

SchwabSchwab …… GEGE … Laker … … Laker … Southwest Southwest … People Express …… People Express … OgilvyOgilvy …… VirginVirgin

…… eBayeBay …… AmazonAmazon … Sony… Sony …… AmgenAmgen …… BMWBMW … CNN … … CNN … NikeNike

Built to Lastvs

Built Built to to ChangeChange//Rock Rock the the

WorldWorld

TP#1*:

NetscapeNetscape

!!*Where would you rather have worked for those 5 years, Netscape

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

GMGM2525/50-/50-75:75: “Built to “Built to

last”last”????????

The The lastlast word: word: There There

is is nono last last word.word.

U.S. SteelU.S. SteelFord Ford GMGMIBMIBM

Macy’sMacy’sSearsSears

Microsoft?Microsoft?Dell?Dell?

Wal*Mart?Wal*Mart?

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Wal*Mart … Dell … Intel Dell … Intel

… Home … Home Depot … Depot …

Microsoft … Microsoft … GEGE


DEFINED.DEFINED. X06. X06.

Commerce Bank: From “Service” to “Experience”Commerce Bank: From “Service” to “Experience”

7X. 730A-7X. 730A-800P. 800P.

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

Commerce Commerce BankBank

The Power of WOW!The Power of WOW!How Commerce Bank How Commerce Bank

Created a Super-Created a Super-Growth Business in a Growth Business in a No-Growth IndustryNo-Growth Industry

Vernon W. Hill, IIVernon W. Hill, II

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

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

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

8,000 Radio City 8,000 Radio City Music HallMusic Hall … … J.D. Power/Customer J.D. Power/Customer

service/Bank/NYC/1service/Bank/NYC/1stst in 5 of 6; 2 in 5 of 6; 2ndnd in #6 in #6 … Inspired by Ray … Inspired by Ray Kroc … $36B ($100B in 6 years); +$750M per month/373 Kroc … $36B ($100B in 6 years); +$750M per month/373

branches in 7 states/900 in 6 years … branches in 7 states/900 in 6 years … player pianoplayer piano … … Penny Arcade/$25K per machine … Penny Arcade/$25K per machine … 9M lollipops, 2M dog 9M lollipops, 2M dog

biscuitsbiscuits … … stupid rule (red) buttonstupid rule (red) button … … call center not call center not “cost center,” but opportunity/human by second “cost center,” but opportunity/human by second operationoperation … … over-invest in real estateover-invest in real estate … design- … design-

experience fanaticism … Red!/Red Friday/Hot music … experience fanaticism … Red!/Red Friday/Hot music … deposits available next day (vs ½ on 3deposits available next day (vs ½ on 3rdrd; ½ on 5; ½ on 5thth; focus ; focus

on 99%, not 1%)on 99%, not 1%) … … LONG HOURS!!!!LONG HOURS!!!! (7/week/12 (7/week/12 hours/Fridays/15 minutes before) … “Do whacky things hours/Fridays/15 minutes before) … “Do whacky things

forfor customers” (VH) … “create magical moments of customers” (VH) … “create magical moments of surprise and delight for employees” (VH) … “Hire for surprise and delight for employees” (VH) … “Hire for attitude. Train for skills.” (VH) … Chinatown/10K first attitude. Train for skills.” (VH) … Chinatown/10K first day; 28K first week … Commerce U in ’93 (“underlying day; 28K first week … Commerce U in ’93 (“underlying

theme is fun”—VH)theme is fun”—VH)

S.M.A.R.T.S.M.A.R.T.

S.S. Say Yes (approval for “No”) Say Yes (approval for “No”)M.M. Make Each Customer Feel Special Make Each Customer Feel SpecialA.A. Always Keep Customer Promises Always Keep Customer PromisesR.R. Recover! (“To err is human, Recover! (“To err is human, to recover is divine.”) to recover is divine.”)T.T. Think Like Our Customers Think Like Our Customers

“ … “ … cut costs at most cut costs at most banks. ‘We have to push banks. ‘We have to push

them out of the branches.’ them out of the branches.’ ‘We have to push them to ‘We have to push them to

machines.’ We have to push machines.’ We have to push them to the Internet.”them to the Internet.”

Source: Vernon HillSource: Vernon Hill

sewell sewell

Customers Customers for Lifefor Life

FFLLOOWWEERRPPOOWWEERR

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

X.06X.06

X.06X.06:: Whole Foods Markets Whole Foods Markets …… Starbucks Starbucks … … Wegmans Wegmans …… Commerce Commerce Bank Bank …… John Laing Homes John Laing Homes …… Apple Apple ……

London Drugs London Drugs …… Griffin Hospital/ Griffin Hospital/ Planetree Alliance Planetree Alliance …… The Met The Met

School/Big Picture School/Big Picture …… Carl Sewell Carl Sewell …… Progressive Insurance Progressive Insurance …… Stanford Stanford

women’s sports women’s sports …… Stanford D-School Stanford D-School …… HSM HSM …… Washington Speakers Washington Speakers

Bureau Bureau … … Build-A-Bear Build-A-Bear …… RE/MAX RE/MAX … … Donnelly’s Weather Strip Service Donnelly’s Weather Strip Service … …

Jim’s Group Jim’s Group …… Cirque du Soleil Cirque du Soleil

High end.High end.Experience.Experience.

Design.Design.Crazy for customers!Crazy for customers!

Crazy for Patients! (“Whole person”).Crazy for Patients! (“Whole person”).Wow!Wow!

People first, second, third.People first, second, third.Breakthrough or bust.Breakthrough or bust.

““Seriously cool.”Seriously cool.”““Virus management.”Virus management.”

Resilience.Resilience.Tippy-top talent.Tippy-top talent.

“ “Solutions,” not “just” “satisfaction.”Solutions,” not “just” “satisfaction.”Engagement.Engagement.

Self-control. (Customer/Patient/Student control.)Self-control. (Customer/Patient/Student control.)Blue Ocean.Blue Ocean.

““Mundane stuff” made great.Mundane stuff” made great.Great demographic.Great demographic.

The best. Period.The best. Period.Effective partnering.Effective partnering.

K.I.S.S.K.I.S.S.Play to win. (Offense > Defense.)Play to win. (Offense > Defense.)

Bold!Bold!Action! Always!Action! Always!

Integrity-as-strategy.Integrity-as-strategy.

**Focused on Focused on growthgrowth and and revenuerevenue and “ and “offenseoffense,”,” not defense and cost containment.not defense and cost containment.**People-talent obsession.People-talent obsession.**Provide mind-bending experiences. (DrivenProvide mind-bending experiences. (Driven by design primacy.)by design primacy.)**Nuts about customers.Nuts about customers.**Happy to use words like Happy to use words like “Wow.”“Wow.”**Pretty close to the high end of the market.Pretty close to the high end of the market.[*[*Ability to make silk purses filled with gold out ofAbility to make silk purses filled with gold out of sows’ ears: Wegmans-Whole Foods-Stew Leonard’ssows’ ears: Wegmans-Whole Foods-Stew Leonard’s and groceries; Jim’s Group and dog-walking;and groceries; Jim’s Group and dog-walking; Donnelly and weatherstrip installation; DeMarDonnelly and weatherstrip installation; DeMar and plumbing.and plumbing.]]**Execution!Execution!


REVENUE.REVENUE.MATTERS.MATTERS.

MOST.MOST.

““Analysts … preferred cost cuttingAnalysts … preferred cost cutting, as long as they could see two or three years of EPS growth. I

preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and

earnings went to hell. They said, They said, ‘Oh my gosh, you ‘Oh my gosh, you need revenues to need revenues to

grow earnings over grow earnings over time.’ time.’

Well, Duh!Well, Duh!”” —Dick Kovacevich, Wells Fargo

P P == RR –– CC

CCRRO*

*Chief Revenue Officer

P = R – C + E P = R – C + E CROCRO (Revenue)(Revenue)

CPO/COOCPO/COO (Processes (Processes & Execution) & Execution)

CCO/CFOCCO/CFO (Costs) (Costs)

GE GE (more or less)(more or less)::

The Sales122:The Sales122: 122 Ridiculously 122 Ridiculously Obvious Thoughts Obvious Thoughts About Selling StuffAbout Selling Stuff

Tom Peters/0402.2006


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

“Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of

earnings consistency. Immelt hasn’t turned his back on

the old ways. But in his GE, the But in his GE, the new imnew impperatives are eratives are

risk-takinrisk-takingg, , sosopphisticated histicated

marketinmarketingg and, above and, above all, innovationall, innovation.” —BW/2005

More than $$$$

#1#1 R&D

spending, last 25 years?

GGMM

“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

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

Dick Kovacevich/Wells Fargo

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

“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 are success stories

out there, but at this moment I draw a

blank.” —Mark Sirower, The Synergy Trap

““Not a single company Not a single company that qualified as having that qualified as having

made a sustained made a sustained transformation ignited transformation ignited

its leap with a big its leap with a big acquisition or mergeracquisition 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

“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

SpinoffsSpinoffs systematically perform better than IPOs … track

record, profits … “freed from the “freed from the confines of the parent … more confines of the parent … more entrepreneurial, more nimbleentrepreneurial, more nimble”

—Jerry Knight/ Washington Post/ 08.05

Private Equity-financedPrivate Equity-financed Firm, Firm, BestBest *Case *Case

**Focus! Focus! Focus! Focus! Focus!Focus!

*In a [Big] hurry*In a [Big] hurry*CEO/Top team, “skin*CEO/Top team, “skin

in the game” in the game”*CEO, 100% of time*CEO, 100% of time

on the biz on the biz*Merit! Merit!*Merit! Merit!

*Motivated oversight*Motivated oversight*Worst case: Rape & Pillage

There’s “A”“A” and then

there’s “A.”“A.”

EVERYTHING YOU EVERYTHING YOU THOUGHT YOU KNEW THOUGHT YOU KNEW ABOUT INNOVATIONABOUT INNOVATION

IS WRONG IS WRONG

The Mess Is the

Message! Period!

The Mess Is the Message! 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 Container Made the World The Box: How the Shipping Container Made the World Smaller and the World Economy BiggerSmaller and the World Economy Bigger —Marc Levinson

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

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

InnoTacsInnoTacs

We We becomebecome who we who we

spend time spend time with!with!

Innovation’s Saviors-in-WaitingDisgruntledDisgruntled Customers Customers

Off-the-ScopeOff-the-Scope Competitors CompetitorsRogue Rogue EmployeesEmployeesFringeFringe Suppliers Suppliers

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

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers defining customers

may account for only may account for only 2%2% to to 3%3% of your total, of your total, but they represent a but they represent a

crucial window on crucial window on the future.”the future.”

Adrian Slywotzky, Mercer ConsultantsAdrian Slywotzky, Mercer Consultants

Axiom:Axiom: Never use a Never use a vendor who is not in the vendor who is not in the

top quartiletop quartile (decile?) (decile?) in their industry on R&D in their industry on R&D

spending!*spending!*

*Inspired by Hummingbird*Inspired by Hummingbird

Employees: “Are there“Are there enouenougghh weirdweird ppeoeopplele in the lab in the lab

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

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’s focus on inventing all its P&G’s focus on inventing all its

own products to developing own products to developing

others’ inventions others’ inventions at least at least half the timehalf the time.. One One

successful example Mr. Clean successful example Mr. Clean Magic Eraser, based on a product Magic Eraser, based on a product

found in an Osaka market.”found in an Osaka market.” ——FortuneFortune, 12.18.06, 12.18.06

Measure “Strangeness”/Portfolio QualityStaffStaff

ConsultantsConsultantsVendorsVendors

Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners

CustomersCustomersCompetitors 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 Location

Lunch MatesLunch MatesLanguageLanguage

BoardBoard

“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

futuremarkfuturemark

““To grow, companies To grow, companies need to break out of a need to break out of a

vicious cycle of vicious cycle of competitive competitive

benchmarking and benchmarking and imitation.”imitation.” —W. Chan Kim & Renée Mauborgne,

“Think for Yourself —Stop Copying a Rival,” Financial Times/2003

“How do dominant companies lose their position? Two-Two-thirds of the time, thirds of the time,

they pick the wrong they pick the wrong competitor to worry competitor to worry

aboutabout.”.” —Don Listwin, CEO, Openwave Systems/WSJ

COMPETITORS: “The best swordsman “The best swordsman in the world doesn’t need to in the world doesn’t need to

fear the second best fear the second best swordsman in the world;swordsman in the world; no, the

person for him to be afraid of is some ignorant antagonist who has never had a sword in his

hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the

spot.”

—Mark Twain

KodakKodak …. Fuji …. FujiGMGM …. Ford …. FordFordFord …. GM …. GM

IBMIBM …. Siemens, Fujitsu …. Siemens, FujitsuSears Sears …. Kmart…. Kmart

XeroxXerox …. Kodak, IBM …. Kodak, IBM

““Don’t Don’t benchmark, benchmark,

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

not evenly distributed” —William Gibson

Find ’em!Find ’em!

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flamesfan the flames.”.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

Innovation Innovation “Tool”/“Source” # 1:“Tool”/“Source” # 1:

Pissed Off Pissed Off Person/ Person/ PeoplePeople

invite invite ’em!’em!




—Lou Gerstner

send ’em on send ’em on

a quest!a quest!

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 is free to do his or her absolute besther absolute best.”.”

“The best thing a leader can do for a Great Group is to allow its allow its

members to discover their members to discover their ggreatnessreatness.”.”

Leadership’s Mt Everest/Mt ExcellenceLeadership’s Mt Everest/Mt Excellence

““free to do his or her free to do his or her absolute best” …absolute best” …

“allow its members to “allow its members to discover their discover their greatness.”greatness.”

Concoct a Concoct a Parallel Parallel

universe!universe!

““Venture” Venture” fund:fund: Gerstner/Amex, Dow/Marriott, Grove/Intel,

Bedbury/Starbucks

“SkunkWorks”/ “ParallelUniverse”

“the 1%1% solution”

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

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. Try it.Try it. Try it. Try it. Try itTry 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. 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.

“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

““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

““We groundWe ground up more pig up more pig

brains!”brains!”

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

““You miss 100You miss 100 percent of the percent of the

shots you never shots you never take.”take.” —Wayne—Wayne Gretzky

Excellence1982: The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

““Intelligent people Intelligent people can always come up can always come up

with intelligent with intelligent reasons to do reasons to do nothing.”nothing.” —Scott Simon—Scott Simon

tolerate tolerate [encourage?] [encourage?]

failurefailure

““Fail . Forward. Fail . Forward. Fast.”Fast.”

High Tech CEO, Pennsylvania

“Fail faster. “Fail faster. Succeed Succeed Sooner.”Sooner.”

David Kelley/IDEO

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

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. ‘‘SeriousSerious playplay’ 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

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may be be thethe most most

valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototypeSource: Michael SchrageSource: Michael Schrage

““Learn not Learn not to be to be

careful.”careful.”

—Photographer Diane Arbus to her students (Careful = The sidelinesCareful = The sidelines, from

Harriet Rubin in The Princessa)

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1

Speed/ Speed/ Tempo/Tempo/

is-itis-it

“We don’t sell insurance anymore.

WeWe sell sell speedspeed.”.”

Peter Lewis, Progressive

Wal*Mart Wal*Mart (!)(!) & Katrina& Katrina

“the FedFedExEx EconomyEconomy”

—headline/New York Times/10.08.05

“Any3”: Anything/ Anything/ Anywhere/ Anywhere/ AnytimeAnytime

“UPS used to be a trucking company with technology.

Now it’s Now it’s a technoloa technologygy comcomppananyy with with

truckstrucks.”.” —Forbes

Open-source Open-source Goldmining!Goldmining!

Rob McEwen, CEO, Rob McEwen, CEO, Goldcorp Inc.Goldcorp Inc.

““Goldcorp Challenge”/ Goldcorp Challenge”/ $575,000$575,000

Source: Source: Wikinomics: How Mass Collaboration Changes Wikinomics: How Mass Collaboration Changes Everything,Everything, Don Tapscott & Anthony Williams Don Tapscott & Anthony Williams

Power Tools Power Tools For Power For Power StrategiesStrategies

Sysco!Sysco!

Productivity!Productivity!

McKesson 2003-2004: McKesson 2003-2004: Revenue … Revenue … +$7B+$7B

Employees … Employees … +500+500

Source: USA Today

““eebusiness is about business is about rebuilding the rebuilding the

organization from the organization from the ground up.ground up. Most companies today Most companies today

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

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

an ebusiness.”an ebusiness.” —Ray Lane, Kleiner Perkins

5%5% F500 have CIO F500 have CIO on Board:on Board: “While some of the world’s most admired companies—companies—TescoTesco, , Wal*MartWal*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

bet bigbet big

“Beware of the tyranny of making

Small Changes to Small

Things. Rather, make BigBig Changes to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

“[Immelt] is now identifying technologies with which GE

will … systematically systematically set out to build set out to build

entirely new entirely new industriesindustries”” —Strategy+Business, Fall

2005

No Wiggle Room!No Wiggle Room!

“Incrementalism“Incrementalism is innovation’s is innovation’s worstworst enemy.” enemy.”

Nicholas Negroponte

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

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

Step #1: Buy a Buy a Mirror!Mirror!

Inno64: Inno64: Innovation Innovation StrategiesStrategies & Tactics & Tactics

Excellence: The SE22:

ORIGINS OF ORIGINS OF SUSTAINABLE SUSTAINABLE

ENTREPRENEURSHIENTREPRENEURSHIPP

SE22/Origins of Sustainable Entrepreneurship1. Genetically disposed to Innovations that upset apple carts 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, (3M, Apple,

FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT)Fox, Stanford University, MIT)2. Perpetually determined to outdo oneself, even to 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)(Apple, Cirque du Soleil, Nokia, FedEx)3. Treat History as the Enemy 3. Treat History as the Enemy (GE)(GE)4. Love the Great Leap/Enjoy the Hunt 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)(Apple, Oracle, Intel, Nokia, Sony)5. Use “Strategic Thrust Overlays” to Attack Monster Problems 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, (Sysco,

GSK, GE, Microsoft)GSK, GE, Microsoft)6. Establish a “Be on the COOL Team” Ethos. 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)(Most PSFs, Microsoft)7. Encourage Vigorous Dissent/Genetically “Noisy” 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, (Intel, Apple, Microsoft, CitiGroup, PepsiCo)Microsoft, CitiGroup, PepsiCo)

8. 8. ““Culturally” as well as Culturally” as well as organizationally Decentralizedorganizationally Decentralized

(GE, J&J, Omnicom)(GE, J&J, Omnicom)9. Multi-entrepreneurship/Many Independent-minded Stars 9. Multi-entrepreneurship/Many Independent-minded Stars (GE,(GE, PepsiCo)PepsiCo)

HP’s Big “Duh”!

Decentralize Decentralize ($90B)($90B)

Undo Undo “Matrix”“Matrix”AccountabilityAccountability

Source: “HP Says Goodbye To Drama”/BW/09.05/re Mark Hurd’s first 5 months

TP “Lessons Learned”TP “Lessons Learned”

Innovation = DisDisInnovation = DisDis (Disciplined Disorganization)(Disciplined Disorganization)Luck is a very good thing.* **Luck is a very good thing.* **

(*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and (*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and try a lot of weird stuff, the odds of getting lucky go up remarkably) (**Career try a lot of weird stuff, the odds of getting lucky go up remarkably) (**Career

success depends on convincing others that you knew what the hell you success depends on convincing others that you knew what the hell you were doing all along. Good news: Say it long enough and you will believe it. were doing all along. Good news: Say it long enough and you will believe it.

Great news: Keep saying it and you, too, can become a “guru.”)Great news: Keep saying it and you, too, can become a “guru.”)

SE22/Origins of Sustainable Entrepreneurship18. Unmistakable Results & Accountability focus from18. Unmistakable Results & Accountability focus from the get-go to the grave the get-go to the grave (GE, New York Yankees, PepsiCo)(GE, New York Yankees, PepsiCo)

19. 19. Up or OutUp or Out (GE, McKinsey, big consultancies and law (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general)firms and ad agencies and movie studios in general)20. Competitive to a fault! 20. Competitive to a fault! (GE, New York Yankees, News(GE, New York Yankees, News Corp/Fox, PepsiCo)Corp/Fox, PepsiCo)21. “Bi-polar” Top Team, with “Unglued” Innovator #1,21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 powerful Control Freak #2 (Oracle, Virgin) (Watch out when(Oracle, Virgin) (Watch out when #2 is missing: Enron)#2 is missing: Enron)22. Masters of Loose-Tight/Hard-nosed about a very few22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything elseCore Values, Open-minded about everything else (Virgin)(Virgin)


4/40.4/40.

4/404/40

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

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in

your heart, or not.”

—Brian Joffe/BIDvest

““If if feels If if feels painful and painful and

scary—that’s scary—that’s realreal delegation” delegation”

—Caspian Woods, small biz owner

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

Ex-e-Ex-e-cu-cu-

tion!tion!

““ExecutionExecution is is thethe j jobob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

ProjectsProjects = = Goal (“Vision”)Goal (“Vision”)MilestonesMilestones = =

Project Project Rapid ReviewRapid Review + + Truth-tellingTruth-telling = = accountabilityaccountability

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

““GE has set a GE has set a standard of candor. standard of candor.

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

denial in the placedenial in the place.”.” —Kevin Sharer, CEO Amgen,

on the “GE mystique” (Fortune)

6:15A.M6:15A.M..

DECENTRALIZATION.DECENTRALIZATION.EXECUTION.EXECUTION.

ACCOUTABILITY.ACCOUTABILITY.66:15A.M.:15A.M.


VALUE ADDED.VALUE ADDED.UP THE LADDER.UP THE LADDER.


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

$55$55BB

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

““Big Brown’s New Bag: UPSBig Brown’s New Bag: UPS Aims to Be theAims to Be the Traffic Traffic

Manager for Manager for CorCorpporate orate

AmericaAmerica”” —Headline/BW/2004

MasterCard MasterCard AdvisorsAdvisors

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

photo shops, etc, etc)

HugeHuge::

Customer Customer SatisfactionSatisfaction versus versus

Customer Customer

SuccessSuccess

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

UpUp

the Value-added Ladder.

The Value-added Ladder/ STUFF ‘N’ THINGSSTUFF ‘N’ THINGS

GoodsGoods Raw Materials Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONSTRANSACTIONS

ServicesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Gamechanging Gamechanging SolutionsSolutions

ServicesGoods

Raw Materials

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, is : “Our ‘it’ works, is delivered on time” (“Close”)delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our ‘it’ “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)can add value—a ‘useful it’ ” (“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and deliver our ‘system’ can change you and deliver

‘business advantage‘business advantage’’ ” (“Culture- ” (“Culture-Strategic change”)Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Gamechanging Gamechanging Solutions/Business Solutions/Business

AdvantageAdvantageServicesGoods

Raw Materials

“The business of selling is not just about matching viable

solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised by achieve the value promised by

the solution.the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.:

CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

EXCELLENCE.EXCELLENCE.NECESSITY.NECESSITY.

OPPORTUNITY. OPPORTUNITY.

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

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

you’ve become

irrelevant to your

customers.”

—John Battelle/Point/Advertising Age/07.05

Chicago:HRMACHRMAC

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

oror … …

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””


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

Department Head to …

ManaginManaging g

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

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

“Solutions World”:

The Mega-Mega-PSFPSF

Big Idea: “Corporation” as “Corporation” as Mega-“PSFMega-“PSF

”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

Pointed Pointed Point of Point of View!View!

Answer:

PSFPSF


ATTITUDE.ATTITUDE.TRANSFORMATION.TRANSFORMATION.

PSF.PSF.

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

PSF Transformation: Credit Department/TrekWas Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06


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


UpUp


The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding ExperiencesExperiences

Gamechanging SolutionsServicesGoods

Raw Materials

CCXXOO**Chief eXperience Officer

““Most executives Most executives have no idea how to have no idea how to

add value to a add value to a market in the market in the

metaphysical world.metaphysical world. But that is what the market

will cry out for in the future. There is no lack of

‘physical’ products to choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: MaleMale dominance

Services & Experiences: FemaleFemale

dominancedominance

EXCELLENCE. EXCELLENCE. DRAMATIC.DRAMATIC.

DIFFERENCE.DIFFERENCE.DOABLE.DOABLE.

This is notnot a “mature

category.”

This is an “undistinguished category.”

$79$7988

$415$415/SqFt/Wal*Mart$$798798/SqFt/Whole

Foods

#1/10#1/1000

“Best Companies to Work for”/2005

WegmansWegmans

7X.7X. 730A-730A-800P. 800P. F12AF12A..**

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

EXCELLENCE. EXCELLENCE. NO EXCUSES.NO EXCUSES.

WallopWal*Mart1WallopWal*Mart16*6*

*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16The “Small Guys” Guide: Wallop Wal*Mart16**Niche-aimedNiche-aimed.. (Never, ever “all things for all people,” a (Never, ever “all things for all people,” a “ “mini-Wal*Mart.)mini-Wal*Mart.)**Never attack the monsters head on!Never attack the monsters head on! (Instead steal (Instead steal niche business and lukewarm customers.)niche business and lukewarm customers.)

**““DramaticallDramaticallyy DifferentDifferent”” (La Difference ... within our (La Difference ... within our community, community, our industry regionally, etc … is as obvious as the end of one’s nose!)our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)**Compete on value/experience/intimacy, not Compete on value/experience/intimacy, not priceprice.. (You ain’t gonna beat the behemoths on cost-price in (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)9.99 out of 10 cases.)**Emotional bond with Clients, VendorsEmotional bond with Clients, Vendors.. (BEAT THE (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)BIGGIES ON EMOTION/CONNECTION!!)

tom peters:tom peters: what what I’ve Learned I’ve Learned about “Small about “Small

Business”Business”

Passion for PRODUCT.Passion for PRODUCT.OBSESSION With ProductOBSESSION With Product..

LOVE LOVE The Product.The Product.Aim To Be Aim To Be “ONLY ONES WHO DO WHAT WE DO.”“ONLY ONES WHO DO WHAT WE DO.”

Keep Keep ADDIN’ADDIN’ Stuff. Stuff.Invest “UNWISELY” in R&D.Invest “UNWISELY” in R&D.

Reside Permanently In The Reside Permanently In The DISCOMFORTDISCOMFORT Zone. Zone.“Unhealthy” “Unhealthy” PARANOIA PARANOIA Is A Good Thing.Is A Good Thing.

Add Clients ThatAdd Clients That PUSH-PULL. PUSH-PULL.SELL.SELL. SELL. SELL. SELL.SELL. SELL. SELL.

Go For Broke: Go For Broke: CUSTOMER CONTACT PEOPLE.CUSTOMER CONTACT PEOPLE.PERFECTION:PERFECTION: Customer Contact People. Customer Contact People.

Hire for Hire for ATTITUDE.ATTITUDE.INVITE INVITE On An Adventure.On An Adventure. GREATGREAT CFO/Biz Guy-Gal. CFO/Biz Guy-Gal. NASTYNASTY CFO/Biz Guy-Gal. CFO/Biz Guy-Gal.

QUADRANGULAR LEADERSHIP:QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic- Visionary-Talent Fanatic-Project Manager-I.P.M.Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)(I.P.M. = Inspired Profit Mechanic)

Small Giants: Small Giants: Companies That Companies That

Choose To Be Choose To Be Great Instead Of Great Instead Of

BigBig —by Bo Burlingham

Small Giants/Bo Burlingham"First, I could see that, unlike most entrepreneurs, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full their founders and leaders had recognized the full range of choices they had about the type of company range of choices they had about the type of company they would create."they would create." "Second, the leaders had the leaders had overcome the enormous overcome the enormous pressures on successful companies to take paths they pressures on successful companies to take paths they had not chosenhad not chosen and did not necessarily want to and did not necessarily want to follow." follow." "Third, each company had an each company had an extraordinarily intimate extraordinarily intimate relationship with the local city, town, or countyrelationship with the local city, town, or county in in which it did business -- a relationship that went well which it did business -- a relationship that went well beyond the usual concept of `giving back.'" beyond the usual concept of `giving back.'" "Fourth, they cultivated they cultivated exceptionally intimate exceptionally intimate relationships with customers and suppliersrelationships with customers and suppliers, based on , based on personal contact, one-on-one interaction, and mutual personal contact, one-on-one interaction, and mutual commitment to delivering on promises." commitment to delivering on promises."

Small Giants/Bo Burlingham

"Fifth, the companies also had what struck me as the companies also had what struck me as unusually unusually intimate workplacesintimate workplaces." ."

"Sixth, I was impressed by the variety of corporate I was impressed by the variety of corporate structures and modes of governance that these structures and modes of governance that these companies had come up with." companies had come up with."

"Finally, I noticed the I noticed the passionpassion that the leaders that the leaders brought to what the company did. brought to what the company did. They loved the They loved the subject mattersubject matter, whether it be music, safety lighting, , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."records storage, construction, dining, or fashion."

Stephen Jay Gould: Bacteria rule! Bacteria rule!

Sizeable casesSizeable cases [e.g. humans] are virtually are virtually

irrelevant irrelevant anomalies.anomalies.


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III. DREAM IT.DREAM IT.

DREAMDREAM:: “A dream is a A dream is a complete moment in the life complete moment in the life

of a client. Important of a client. Important experiences that tempt the experiences that tempt the client to commit substantial client to commit substantial resources. The essence of resources. The essence of

the desires of the consumer. the desires of the consumer. The opportunity to help The opportunity to help

clients become what they clients become what they want to be.”want to be.”

—Gian Luigi Longinotti-Buitoni

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

““No longer are we only an No longer are we only an insurance provider.insurance provider. Today, Today,

we also offer our we also offer our customers the products customers the products and services that help and services that help

them achieve their them achieve their dreamsdreams —whether it’s —whether it’s

financial security, buying a car, financial security, buying a car, paying for home repairs, or even paying for home repairs, or even taking a dream vacation.”taking a dream vacation.” ——Martin Martin

Feinstein, CEO, Farmers GroupFeinstein, CEO, Farmers Group


UpUp


The Value-added Ladder/ EMOTIONEMOTION

Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

CCDMDM**Chief Dream Merchant

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

IBMIBM

“The sun is setting on the Information Society—even The sun is setting on the Information Society—even before we have fully adjusted to its demands as before we have fully adjusted to its demands as

individuals and as companies. We have lived as hunters individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we and as farmers, we have worked in factories and now we

live in an information-based society whose icon is the live in an information-based society whose icon is the

computer. computer. We stand facing We stand facing the fifth kind of societythe fifth kind of society: : the Dream Societythe Dream Society.. … Future … Future

products will have to appeal to our hearts, not to our products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to heads. Now is the time to add emotional value to

products and services.”products and services.” Rolf Jensen/ Rolf Jensen/The Dream Society:How the Coming Shift from The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your BusinessInformation to Imagination Will Transform Your Business


VALUE-ADDED LADDER IV.VALUE-ADDED LADDER IV.

LOVE IT.LOVE IT.

Kevin Roberts:

LovemarLovemarksks!!

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


UpUp


The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

ServicesServicesGoodsGoods

Raw MaterialsRaw Materials

CCLL OO*

*Chief Lovemark Officer


UpUp


Ladder.2006: 4 of Ladder.2006: 4 of 7!7!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials


SOUL I.SOUL I.THE STORY.THE STORY.

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

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

MarketMarket Power = Power = StoryStory Power Power

Best Best story story wins!wins!

““We are in the twilight of a society based on data. As We are in the twilight of a society based on data. As information and intelligence become the domain of information and intelligence become the domain of computers, society will place more value on the one computers, society will place more value on the one human ability that cannot be automated: emotion. human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we affect everything from our purchasing decisions to how we

work with others.work with others. Companies Companies will thrive on the will thrive on the

basis of their stories basis of their stories and mythsand myths.. Companies will need to Companies will need to understand that their products are less important than understand that their products are less important than

their stories.”their stories.” —Rolf Jensen, Copenhagen Institute—Rolf Jensen, Copenhagen Institute for Future Studies for Future Studies

CCSTSTOO*

*Chief Storytelling Officer


SOUL II.SOUL II.DESIGN.DESIGN.

All Equal Except …“At Sony we assume that all products of our competitors

have basically the same technology, price, performance and features. DesiDesiggn is the n is the

onlonlyy thin thingg that that differentiates one differentiates one

pproduct from another roduct from another in the marketin the marketpplacelace.”.” —

Norio Ohga

“Design is treated like treated like a religiona religion at

BMW.” —Fortune

“We don’t have a good language to talk about this kind of thing. In

most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning

of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs

CCDDOO**Chief Design Officer


WHAT MATTERS.WHAT MATTERS.

““What Isn’t What Isn’t Matter Is Matter Is

What What Matters”Matters”

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

VA “Teaching Moment”

““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the

wall …”wall …”

The The BootBoot … and … and TimberlandTimberlandThe The TomatoTomato//

FarmerFarmer … and … and Campbell’sCampbell’s


NEW MARKETS.NEW MARKETS.ENORMOUS. ENORMOUS.

OPPORTUNITIES.OPPORTUNITIES.

women.women.BOOMERSBOOMERS

..GEEZERS.GEEZERS.

E-nor-mous E-nor-mous Strat-eg-ic Strat-eg-ic opp-or-tun-opp-or-tun-

ityity

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

WOMEN.WOMEN.

““IdiotIdiot”” is too kind a word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 8585%% of Unilever’s

products are purchased by … women.


FOUND.FOUND.DUH.DUH.

““To be a leader in To be a leader in consumer consumer

products, it’s products, it’s critical tocritical to

have have leaders who leaders who represent the represent the population we population we

serveserve.”.” —Steve Reinemund/CEO/PepsiCo

“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have

leaders who leaders who represent the represent the population we population we

serveserve.”.”

—Steve Reinemund/ FORMERFORMER CEO/PepsiCo

Indra NooyiIndra Nooyi

A[nother] Delightful BlindingA[nother] Delightful Blinding Flash of the Obvious!* **Flash of the Obvious!* **

““P&G does more than half P&G does more than half its business outside the its business outside the

U.S.,U.S., so [CEO A.G.] Lafley has so [CEO A.G.] Lafley has recast his top executive recast his top executive group to be group to be 50% non-50% non-AmericanAmerican.” .” ——FortuneFortune, 1218.06, 1218.06

*I’ll take it!*I’ll take it!**Women next? 85%? **Women next? 85%?


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

WOMEN.WOMEN.

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

?????????Home Furnishings … 94%Home Furnishings … 94%

Vacations … 92% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%Houses … 91%D.I.Y. D.I.Y. (major “home projects”) … 80% … 80%

Consumer Electronics … 51% Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)Cars … 68% (90%)AllAll consumerconsumer purchasespurchases … … 83%83%

Bank Account … 89%Bank Account … 89%Household investment decisions … 67%Household investment decisions … 67%Small business loans/biz starts … 70%Small business loans/biz starts … 70%

Health Care … 80%Health Care … 80%

The “91% Factor”!The “91% Factor”!

More than More than 99 in in 1010 women women age 35 - 49 say theyage 35 - 49 say they

either either makemake or at least or at least eeqquallually y influenceinfluence their their household purchaseshousehold purchases of of homehome electronicselectronics..

Source: Andrea Learned, co-author, Source: Andrea Learned, co-author, Don’t Think PinkDon’t Think Pink

““The The most most significant variablesignificant variable in in everyevery sales situation is sales situation is the the 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

9191%% women: women: ADVERTISERS ADVERTISERS

“DON’T “DON’T UNDERSTAND USUNDERSTAND US.” .” (58% “ANNOYED.”)(58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

The Perfect AnswerJill and Jack buy

slacks in black…

“She knows moreknows more about the [Volvo] 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

EVEolution:EVEolution: The Eight Truths The Eight Truths

of Marketing of Marketing to Women to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Connecting Your Female Consumers Female Consumers

to Each Other to Each Other Connects Them to Connects Them to

Your BrandYour Brand

““The ‘Connection Proclivity’ The ‘Connection Proclivity’ in women starts early. in women starts early. When asked, ‘How was When asked, ‘How was

school today?’ a girl usually school today?’ a girl usually tells her mother every tells her mother every

detail of what happened, detail of what happened, while a boy might grunt, while a boy might grunt,

‘Fine.’ ”‘Fine.’ ”EVEolution

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

Selling to men: The The TRANSACTION Model ModelSelling to Women: The The RELATIONAL Model Model

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

Editorial/MenEditorial/Men: : Tables, rankings.*Tables, rankings.*

Editorial/Editorial/WomenWomen: :

NarrativesNarratives that cohere.* that cohere.*

*Redwood (UK)

Purchasing Patterns

WomenWomen: : Harder to convince;Harder to convince; more loyal once convinced.more loyal once convinced.

MenMen: : Snap decision; fickle.Snap decision; fickle.Source: Martha Barletta, Marketing to Women

2.62.6 vs.vs.

2121

1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.

10. 10. Women’s Women’s Market = Market =

Opportunity Opportunity No. 1.No. 1.

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

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

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

Faith, Lys, Marti, Fara …

Targeting the New Targeting the New Professional Woman: Professional Woman:

How to Market and Sell How to Market and Sell to Today’s to Today’s 57 Million 57 Million

Working WomenWorking Women

—Gerry Myers

““Goldman Sachs in Goldman Sachs in TokyoTokyo has has developed an index of 115 developed an index of 115

companies poised to benefit from companies poised to benefit from women’s increased purchasing women’s increased purchasing

power;power; over the past over the past decade the value of decade the value of shares in Goldman’s shares in Goldman’s

basket has risen by 96%, basket has risen by 96%, against the Tokyo against the Tokyo

stockmarket’s stockmarket’s rise of 13%rise of 13%.”.” —Economist—Economist, April 15, April 15

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.

WOMEN.WOMEN. BUSINESS. BUSINESS. OWNERS. OWNERS.

10.610.6

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

9494%% of loans to of loans to ……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

WOMEN.WOMEN.

DOMINATE. DOMINATE. ECONOMIC. ECONOMIC. GROWTH.GROWTH.

““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

““Since Since 19701970, , women have women have

held held twotwo out of out of every every three three new new jobs created.”jobs created.” —FT,

10.03.2006

Impact! Add It Up!

Primary markets/EverythingPrimary markets/Everything (“Men buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce Greater global workforce participation rateparticipation rate (“bigger contributor to GDP growth than technology, China, India”—Economist)

Higher wagesHigher wages (more seniority, promotions—even if not to CEO; greater pay equity—even if not equal)

Business “decision makers”Business “decision makers” (more seniority, promotions—even if not to CEO)

Women-owned businessesWomen-owned businesses (answer to the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULEWomenWomen 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??

Not Just America …Not Just America …

“Boys Falling “Boys Falling SevenSeven Years Years Behind Girls Behind Girls

at GCSE Level”at GCSE Level” —headline, —headline, Weekly TelegraphWeekly Telegraph, UK, 10.25.06, UK, 10.25.06

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘‘womenomicswomenomics,’ the economy ,’ the economy

as thought out and as thought out and practiced by women.”practiced by women.” —Aude —Aude

Zieseniss de Thuin, Financial Times, 10.03.2006Zieseniss de Thuin, Financial Times, 10.03.2006

COROLLARY. COROLLARY. EXCELLENCE. EXCELLENCE.

WOMEN.WOMEN.RULE.RULE.

““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

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

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

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

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

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

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

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

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF

Dreams Come True/Dreams Come True/FF Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/FGoods/M

Raw Materials/M


OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.BOOMERS.BOOMERS.GEEZERS.GEEZERS.


S.S.GEEZERSGEEZERS

..


S.S.GEEZERSGEEZERS

..

Subject: Marketers & StupiditySubject: Marketers & Stupidity

““It’s 18-It’s 18-44, 44,

stupid!”stupid!”

Subject: Marketers & StupiditySubject: Marketers & Stupidity

Or is it: “18-44 is

stupid, stupid!”

““One particularly puzzling category of youth-One particularly puzzling category of youth-obsession is the highly coveted target of men obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly 18-34, and it’s always referred to as ‘highly

coveted category.’ Marketers have been coveted category.’ Marketers have been distracted by men age 18-34 because they are distracted by men age 18-34 because they are getting harder to reach. So what? getting harder to reach. So what? Who wants Who wants

to reach them?to reach them? Beyond fast food and beer, Beyond fast food and beer, they don’t buy much of anything. … The they don’t buy much of anything. … The

theory is that if you ‘get them while they’re theory is that if you ‘get them while they’re

young, they’re yours for life.’young, they’re yours for life.’ What What nonsensenonsense!”!”

——Marti Barletta, Marti Barletta, PrimeTime WomenPrimeTime Women

2000-2010 Stats

18-44: -1%-1%55+: ++2121%%(55-64: ++4747%%)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household

after the “head of household” reaches age

50: 77Source: Marti Barletta, PrimeTime Women

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is Which is pprettrettyy weird when weird when yyou consider aou consider agge 50 is rie 50 is rigght ht

about when about when ppeoeopple who have le who have worked all their lives start to worked all their lives start to have some monehave some moneyy to s to sppendend.”.”

—Marti Barletta, PrimeTime Women

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

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

““The New Customer The New Customer Majority is the only adult Majority is the only adult

market with realistic market with realistic prospects for significant prospects for significant sales growth in dozens of sales growth in dozens of

product lines for product lines for thousands of thousands of companies.”companies.”

—David Wolfe & Robert Snyder, Ageless Marketing

PossessionPossession ExperiencesExperiences /“Desires for /“Desires for

thingsthings”/Young adulthood/to 38”/Young adulthood/to 38CateredCatered Experiences Experiences/ “Desires to / “Desires to

be be servedserved by others”/Middle by others”/Middle adulthoodadulthood

BeinBeing Experiencesg Experiences/“Desires for /“Desires for transcending transcending experiencesexperiences”/Late ”/Late

adulthoodadulthood

Source: David Wolfe and Robert Ageless MarketingAgeless Marketing

““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

““SixtySixty Is Is the New the New ThirtyThirty””

—Cover/—Cover/AARPAARP

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

not.not.Yet.Yet.

Done.Done.

Just Say “No” (!):Just Say “No” (!):

Launch an

“Initiative.”

Women’s Trifecta+Women’s Trifecta+

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

*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

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

E-nor-mous E-nor-mous Strat-eg-ic Strat-eg-ic opp-or-tun-opp-or-tun-

ityity


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

CCtataOO**Chief talent acquisitiontalent acquisition Officer

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




—Lou Gerstner

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

the actor or actress can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

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

CCQQOO*

*Chief quest-meister

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

A Few Lessons from the ArtsEach hired and developed and evaluated in unique waysEach hired and developed and evaluated in unique ways

(23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators)

Attitude/Enthusiasm/Energy paramountAttitude/Enthusiasm/Energy paramountRe-lent-less!Re-lent-less!

“Practice is cool”“Practice is cool” (G Leonard/Mastery)

Team Team and and individual individual Aspire to Aspire to EXCELLENCE EXCELLENCE = Obvious= Obvious

Ex-e-cu-tionEx-e-cu-tionTalent = Brand = DuhTalent = Brand = Duh“The Project” rules“The Project” rulesEmotional languageEmotional language

Bit players. No.Bit players. No.B.I.WB.I.W. (everything)

Delta events = Delta rostersDelta events = Delta rosters (incl leader/s)

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.

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 Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

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

PERSON”? PERSON”? PROVE ITPROVE IT..

““The leaders of Great The leaders of Great Groups Groups lovelove talent talent

and know where to find and know where to find it. They it. They revel revel in the in the talent of others.”talent of others.” —

Warren Bennis & Patricia Ward Biederman, Organizing Genius

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

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 MissionTo 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

Internal Internal “brand “brand

promise”!promise”!

What’s your company’s … EVP/EVP/IBPIBP?*

*Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP

EVP/IBPEVP/IBP = = Remarkable Remarkable challenge, rapid professional challenge, rapid professional growth, respect, satisfaction, growth, respect, satisfaction,

fun, stunning opportunity, fun, stunning opportunity, exceptional reward, amazing exceptional reward, amazing

peer group, full membership in peer group, full membership in Club Adventure, maximized Club Adventure, maximized

future employabilityfuture employabilitySource: Ed Michaels, Source: Ed Michaels, The War for Talent; TPThe War for Talent; TP

Brand Brand = =

Talent.Talent.

Re-imaRe-imaggineinePeoPeopple Power:le Power: The Talent The Talent5050

EXCELLENCE. EXCELLENCE. WOMEN.WOMEN.

RULE.RULE.

““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

EXCELLENCE. EXCELLENCE. INDIVIDUAL.INDIVIDUAL.BRAND YOU.BRAND YOU.

““One of the defining One of the defining characteristics [of the characteristics [of the

change] is that it will be change] is that it will be lessless driven by countries or driven by countries or corporations and corporations and moremore

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

advancement of knowledge, and economic advancement of knowledge, and economic development. But at the same time, it will development. But at the same time, it will tend to undermine safety net systems and tend to undermine safety net systems and penalize the unskilled.”penalize the unskilled.” —Clyde Prestowitz, —Clyde Prestowitz, Three Three

Billion New CapitalistsBillion New Capitalists

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

““If there is nothing If there is nothing very special about very special about your work,your work, no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and

that increasingly means you that increasingly means you won’t get paid much either.”won’t get paid much either.”

—Michael Goldhaber, Wired

New Work SurvivalKit.20061. MASTERY!MASTERY! (Best/Absurdly Good at Something!)2. “Manage” to Legacy“Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)3. A “USP”/UNIQUE SELLING PROPOSITIONA “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Rolodex ObsessionObsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. ENTREPRENEURIAL INSTINCTENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSERCEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)7. Master of ImprovMaster of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)8. Sense of HumorSense of Humor (A willingness to Screw Up & Move On)9. Comfortable with Your SkinComfortable with Your Skin (Bring “interesting you” to work!)10. Intense Appetite for TechnologyIntense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?)11. EMBRACE “MARKETING”EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)12. PASSION FOR RENEWALPASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE!EXECUTION EXCELLENCE! (Show up on time! Leave last!)

““The only thing you The only thing you have power over is have power over is to get good at what to get good at what

you do. That’s all you do. That’s all there is; there ain’t there is; there ain’t

no more!”no more!” —Sally Field

““You are the You are the storyteller of your storyteller of your own life, and you own life, and you

can create your own can create your own legend or not.”legend or not.” —Isabel

Allende

DistinctDistinct … or

…

ExtincExtinctt

““It’s It’s alwaalwayyss

showtime.”showtime.” —David D’Alessandro, Career Warfare

Getting to WOW Getting to WOW Through Mastery of … Through Mastery of …

The The SalesSales2525..

Getting Things Done:Getting Things Done: The The

Power & Power & ImplementationImplementation3434

..

Presentation Presentation Excellence: Excellence: The The

PresX56PresX56

The Interviewing The Interviewing Excellence:Excellence: The IntX31The IntX31

EXCELLENCE.EXCELLENCE.MOTIVATIONAL MOTIVATIONAL

STUFF.STUFF.

EXCELLENCE. EXCELLENCE. AWOL: THE AWOL: THE SCHOOLS SCHOOLS FIASCO. FIASCO.

“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 His teacher informed us that he had informed us that he had

refused to color within the refused to color within the lines, which was a state lines, which was a state

requirement for requirement for demonstrating ‘grade-level demonstrating ‘grade-level

motor skillsmotor skills.’ ” —Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE:

About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached

SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the

group as a ‘closet artist.’ The point is:

Every school I visitedEvery school I visited was participating in was participating in

the systematic suppression the systematic suppression of creative genius of creative genius.”

Source: Gordon MacKenzie, Orbiting the Giant Hairball

Ye gads: ““Thomas Stanley has not only found Thomas Stanley has not only found no correlation between success in school and no correlation between success in school and an ability to accumulate wealth, he’s actually an ability to accumulate wealth, he’s actually found a nefound a neggative correlationative correlation. ‘It seems that . ‘It seems that

school-related evaluations are poor school-related evaluations are poor predictors of economic success,’ Stanley predictors of economic success,’ Stanley

concluded. What did predict success was a concluded. What did predict success was a willingness to take risks. Yet the success-willingness to take risks. Yet the success-

failure standards of most schools penalized failure standards of most schools penalized risk takers. risk takers. Most educational systems reward Most educational systems reward those who play it safe. As a result, those who those who play it safe. As a result, those who

do well in school find it hard to take risks do well in school find it hard to take risks later onlater on.”.” —Richard Farson & Ralph Keyes,

Whoever Makes the Most Mistakes Wins

15 “Leading” Biz Schools

DesignDesign/Core: 00Design/Elective: 1

CreativitCreativityy/Core: 00Creativity/Elective: 4

InnovationInnovation/Core: 00Innovation/Elective: 6

Source: DMI/Summer 2002/Research by Thomas Lockwood

M.I.A.*: TalkTalk.. (Present.) ListenListen.. (Interview.) SellSell.. (Life = Sales.) DoDo.. (Execution-

Implementation.) Talent.Talent. (Recruit-Develop-Retain.) Project Management.Project Management. (Create. Solicit

support. Execution. Adoption-Client “Culture Change.”) Product.Product. (“It.”) Innovation.Innovation. (Design.

Creativity. “Buzz-building.” Politics.) Leadership.Leadership. (USMA, etc.) E.Q.E.Q. (Connect.) “Culture” “Culture”

Change.Change. (Lasting impact.) Diversity. (Cross-cultural Effectiveness.) Career Creation.Career Creation.

(Brand You life-lifestyle.) Wellness. (Life.)

*B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

New Economy Biz Degree ProgramsMBAMBA (Master of Business AdministrationAdministration)

MMM1MMM1 (Master of MetaphysicalMetaphysical Management)

MMM2MMM2 (Master of MetabolicMetabolic Management)MGLFMGLF (Master of Great LeapsLeaps Forward)MTDMTD (Master of TalentTalent Development)

W/MW/MwwGTDGTDw/ow/oCC (Woman/Man Who Gets Gets Things DoneThings Done without Certificate)

DEDE (Doctor of EnthusiasmEnthusiasm)


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

9Ps. L23.9Ps. L23.

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

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..



PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

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

first question for a leader always

is: ‘‘WhoWho dodo wewe iintendntend toto bebe?’?’ Not ‘What are we going to do?’

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

Ah, kids: “What is your vision “What is your vision for the future?” for the future?” “What have “What have you accomplished since your you accomplished since your first book?”first book?” “Close your eyes “Close your eyes and imagine me immediately and imagine me immediately doing something about what doing something about what

you’ve just said. What would it you’ve just said. What would it be?” be?” “Do you feel you have an “Do you feel you have an obligation to ‘Make the world a obligation to ‘Make the world a

better place’?”better place’?”

PURPOSEPURPOSE..

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


PositivePositive..

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

—Samuel Taylor Coleridge

““Whenever anything is Whenever anything is being accomplished, I being accomplished, I

have learned, it is have learned, it is being done by a being done by a

monomaniac with a monomaniac with a mission.”mission.” —Peter Drucker

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..




—Lou Gerstner

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

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

2255

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

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

““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..

““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

RelentlessRelentless:: “One of “One of my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant

"The reasonable man adapts The reasonable man adapts himself to the world. The himself to the world. The

unreasonable one persists in unreasonable one persists in trying to adapt the world to trying to adapt the world to

himself. Therefore, all himself. Therefore, all progress depends upon the progress depends upon the unreasonable man.”unreasonable man.” —GB Shaw,

Man and Superman: The Revolutionists' Handbook.

““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

Feather, author

"Life is not a journey to the "Life is not a journey to the grave with the intention of grave with the intention of arriving safely in one pretty arriving safely in one pretty

and well preserved piece, but and well preserved piece, but to skid across the line to skid across the line

broadside, thoroughly used broadside, thoroughly used up, worn out, leaking oil, up, worn out, leaking oil,

shouting shouting ‘GERONIMO!’‘GERONIMO!’ ” ” —Bill McKenna, professional motorcycle racer (Cycle magazine)


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

“Beware of the tyranny of making

Small Changes to Small

Things. Rather, make BigBig Changes to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

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!!



PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

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..


THE LEADERSHIP23.THE LEADERSHIP23.

Leadership23/ML1. Enthusiasm. Energy. Exuberance.1. Enthusiasm. Energy. Exuberance.2. Action. Execution.2. Action. Execution.3. Tempo. Metabolism.3. Tempo. Metabolism.4. Relentless.4. Relentless.5. Master of Plan B.5. Master of Plan B.6. Accountability.6. Accountability.7. Meritocracy.7. Meritocracy.8. Leaders “do” people. Mentor. (“Success8. Leaders “do” people. Mentor. (“Success creation business.”)creation business.”)9. Women. Diversity.9. Women. Diversity.10. Integrity. Credibility. Humanity. Grace.10. Integrity. Credibility. Humanity. Grace.11. Realism.11. Realism.12. Cause. Adventures. Quests.12. Cause. Adventures. Quests.

Leadership23/ML13. Legacy.13. Legacy.14. Best story wins.14. Best story wins.15. On the edge. (“Wildest chimera of a15. On the edge. (“Wildest chimera of a moonstruck mind.”)moonstruck mind.”)16. “Reward excellent failures. Punish 16. “Reward excellent failures. Punish mediocre successes.”mediocre successes.”17. Different > Better. (“Only ones who do17. Different > Better. (“Only ones who do what we do.”)what we do.”)18. MBWA. Customer MBWA.18. MBWA. Customer MBWA.19. Laughs.19. Laughs.20. Repot. Curiosity. Why?20. Repot. Curiosity. Why?21. You = Calendar. “To Don’t.” Two.21. You = Calendar. “To Don’t.” Two.22. Excellence. Always.22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)of losing than anxious to win.”)

EnthusiasmEnthusiasmEnergyEnergy

ExuberanceExuberanceVoracious CuriosityVoracious Curiosity

Irritability/Dis-satisfactionIrritability/Dis-satisfactionRelentlessnessRelentlessnessSelf-relianceSelf-reliance

“Closer” (Execution)“Closer” (Execution)excellenceexcellence

““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)

EXEXCELLE CELLE ALWALWAYSAYS..

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Slides* at … tompeters *also “long”