Tom Peters’ X25*Tom Peters’ X25*
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
Bestseller/Stockholm/30 May 2007Bestseller/Stockholm/30 May 2007
**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007
Slides* at …Slides* at …
tompeters.comtompeters.com
The StoryThe Story
Not your father’s worldNot your father’s worldBig = Pitiful.Big = Pitiful.
Excellence. Always. (what else?)Excellence. Always. (what else?)Innovate. Or. Die.Innovate. Or. Die.
Up, Up, Up the “Value Added Up, Up, Up the “Value Added Chain.”Chain.”
“New” Markets (Women, “New” Markets (Women, Boomers)Boomers)
Talent = Brand.Talent = Brand.Leading with passionLeading with passion
““It is It is notnot the the strongest of the strongest of the
species that survives, species that survives, nornor the most the most
intelligent, but intelligent, but the the one most one most responsive responsive
to changeto change.”.” —Charles Darwin
Hire Great PeopleHire Great People (Resilient, Passionate)(Resilient, Passionate)
Try a Lot of StuffTry a Lot of Stuff (S.A.V./R.F.A.)(S.A.V./R.F.A.)
Enjoy It While It Enjoy It While It LastsLasts
NOT NOT YOUR YOUR
FATHER’FATHER’S S
WORLD!WORLD!
““Copper Thieves Copper Thieves Cause Havoc for Cause Havoc for Commuters”Commuters” ——The GuardianThe Guardian
(London) 28.05.07(London) 28.05.07
“10 Billion Dollars: Contributing to the “10 Billion Dollars: Contributing to the Development of Knowledge and Culture”Development of Knowledge and Culture” —Mohammed Bin —Mohammed Bin
Rashid Al Maktoum Foundation (Rashid Al Maktoum Foundation (FTFT, 29.05.07), 29.05.07)
*Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone GroupGroup
Chicagoland’s
Mystery Disappearances …
China’s share of global consumption/2005:
Cement … 47%Cotton … 37%Coal … 30% Steel … 26%
Source: BusinessWeek/08.05
““Copper Thieves Cause Havoc forCopper Thieves Cause Havoc for
Commuters” Commuters” ——The GuardianThe Guardian (London) 28.05.07 (London) 28.05.07
“10 Billion Dollars: “10 Billion Dollars: Contributing to the Contributing to the
Development of Development of Knowledge andKnowledge and
Culture” Culture” —Mohammed Bin Rashid Al Maktoum —Mohammed Bin Rashid Al Maktoum
Foundation (Foundation (FTFT, 29.05.07), 29.05.07)
*Last week: Saudis buy GE Plastics for $13B; China gov’t *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone Groupinvestment firm buys 10% of Blackstone Group
2424%%
“There is no job that
is America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004
40,000,000/2040,000,000/20““[Former Fed Vice-chairman Alan] [Former Fed Vice-chairman Alan] Blinder … remains an Blinder … remains an implacable opponent of tariffs and trade barriers. But implacable opponent of tariffs and trade barriers. But
now he is saying loudly that a new industrial revolutionnow he is saying loudly that a new industrial revolution—communication technology that allows services to be —communication technology that allows services to be
delivered from afar—will put as many as delivered from afar—will put as many as 40 40 million Americanmillion American
jobsjobs at risk of being shipped out of the country at risk of being shipped out of the country
in the next decade or two.”*in the next decade or two.”* —Wall Street Journal —Wall Street Journal /0328/0328
*Blinder: 40 million = *Blinder: 40 million = ““only the tiponly the tip of a very big icebergof a very big iceberg.”.”
““Income Income Confers Confers No No
ImmunityImmunity as as Jobs Migrate”Jobs Migrate”
—Headline/USA Today/02.2004
“Deutsche Bank Moves Half of Its Back-office Jobs to India”/
headline/FT/0327 (500 (500 of 900 of 900
ResearchResearch))
20020033: : 98% U.S.98% U.S.20020055: : U.S. 150;U.S. 150; Shanghai 500 Shanghai 500
Level 5 (top) certification/Level 5 (top) certification/Carnegie Mellon Software Engineering Institute: Carnegie Mellon Software Engineering Institute:
3535 of of
7070 companies in world are from Indiacompanies in world are from India
Source: Source: WiredWired
““Teenagers in Teenagers in India have big India have big
ambitions—and ambitions—and the confidence to the confidence to
match”match” —headline/Fortune
““Short on Priests, Short on Priests, U.S. Catholics U.S. Catholics
Outsource Prayer to Outsource Prayer to Indian Clergy”Indian Clergy”
—Headline, New York Times (“Special intentions,” $.90 for Indians, $5.00 for Americans)
““Ogre to Slay? Ogre to Slay? Outsource It to Outsource It to
Chinese”Chinese” (New York Times, (New York Times,
page 1—news section).page 1—news section).
The “factory”: Fuzhou, China. The workers: youngsters logging 12-The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San hour shifts. Their clientele: youngsters from “Seoul to San
Francisco.” The “work”: The Chinese youngsters are playing the early Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.the pain and time associated with those annoying first few levels.
2626m*m*
*60,000/3 yrs
4343h*h*
*200/yr
1 Houston/1 Houston/
Month/15Month/15
55 (Years)(Years) /42/42 (New (New
Airports)Airports)
200 cities with 200 cities with >>1,000,000 1,000,000 population.population.
Source: “China Takes Off”, David Hale &Source: “China Takes Off”, David Hale & Lyric Hughes Hale/ Lyric Hughes Hale/Foreign AffairsForeign Affairs
Chinese Offshore TouristsChinese Offshore Tourists
’93: 3M’93: 3M’03: 21M’03: 21M
THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS
—Clyde Prestowitz
““Where are you going? … Where are you going? … It’s It’s only 2a.m.only 2a.m. … …
You see, you can live your life at 120 miles You see, you can live your life at 120 miles an hour, and that’s pretty impressive. But an hour, and that’s pretty impressive. But it’s not good enough. Unless you live at it’s not good enough. Unless you live at
150 miles an hour, the world will pass you 150 miles an hour, the world will pass you by,” by,”
HRH Prince AlwaleedHRH Prince Alwaleed**
*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc.*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc.
Source: “Prince Alwaleed, Inside the private world of the Middle East’sSource: “Prince Alwaleed, Inside the private world of the Middle East’s most powerful investor” cover story, most powerful investor” cover story, The BusinessThe Business, 0519.07, 0519.07
EXCELLEXCELL--
ENCE??ENCE??????
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The
answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“Forbes100” from 1917 to 1987: 3939 members members
of the Class of ’17 were alive in ’87; 18 in ’87 of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly F100; 18 F100 “survivors” significantly
underunderpperformederformed the market; the market;
just just 22 (2%), (2%), GEGE & & KodakKodak, ,
outoutpperformederformed the market from the market from 1917 to 1987. 1917 to 1987.
S&P 500 from 1957 to 1997: 7474 members of the Class of ’57 were alive
in ’97; 1212 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
BIG?BIG?????
More than $$$$
#1#1 R&D
spending, last 25 years?
GGMM
Dick Kovacevich: You don’t You don’t get better get better by being by being
bigger. You bigger. You get worse.”get worse.”
“When asked to name just one big merger that had lived up to
expectations, Leon Cooperman, former cochairman of Goldman Sachs’
Investment Policy Committee,
answered: I’m sure there I’m sure there are success stories out are success stories out
there, but at this there, but at this moment I draw a moment I draw a
blankblank.”.” —Mark Sirower, The Synergy Trap
Mission impossible?Mission impossible?
$36B/’98$36B/’98
minus minus $675M/‘$675M/‘
0707
DDaimler.aimler. And And DDumb. umb. Both Start Both Start with “with “dd.”.”
““Marriage in Marriage in heaven”heaven” —Daimler-Benz and —Daimler-Benz and
Chrysler exchange vows, circa Chrysler exchange vows, circa 19981998 (Jürgen (Jürgen Schrempp)Schrempp)
“the “the divorce on divorce on earthearth”” —Daimler exec, —Daimler exec,
circa circa 20072007, on probable Cerberus private equity , on probable Cerberus private equity purchase of Chrysler from Daimlerpurchase of Chrysler from Daimler
DaimlerChrysler/’98-’07:DaimlerChrysler/’98-’07: DuhDuh,, Duh Duh,, Duh Duh,, Duh Duh and … and … DuhDuh
ManifoldManifold SynergiesSynergies//NoNo
Severe Severe ScaleScale limits/ limits/YesYes
CultureCulture clashes/ clashes/YesYes
Rushmorean Rushmorean egoego issues/ issues/YesYes
CustomerCustomer acceptance acceptance /No/No
BIAS.BIAS.BUILT.BUILT.
TO.TO.LAST.LAST.NOT.NOT.
TP#1*:TP#1*:
NetscapeNetscape!!
*Where would you rather have worked for those 5 years, Netscape*Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you
rather to be able to tell someone—e.g., grandchild—that you worked?) rather to be able to tell someone—e.g., grandchild—that you worked?)
Built to Lastvs
Built Built to to ChangeChange//Rock Rock the the
WorldWorld
The The lastlast word: word: There There is is nono “last “last
word.”word.”
EXCELLENCE. EXCELLENCE. CIRCA 1982.CIRCA 1982.
Excellence1982: The Bedrock “Eight Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”
EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.
2006.2006.
Why in the Why in the
World did World did youyou
go to go to SiberiaSiberia??
The Peters PrinciThe Peters Principplesles:: Enthusiasm. Enthusiasm.
Emotion. Emotion. ExcellenceExcellence.. Energy. Excitement. Service. Energy. Excitement. Service.
Growth. Creativity. Growth. Creativity. Imagination. Vitality. Joy. Imagination. Vitality. Joy.
Surprise. Independence. Spirit. Surprise. Independence. Spirit. Community. Limitless human Community. Limitless human
potential. Diversity. potential. Diversity.
Profit.Profit. Innovation. Design. Innovation. Design. Quality. Entrepreneurialism. Quality. Entrepreneurialism.
Wow!Wow!
EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum
concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.UNIVERSAL.UNIVERSAL.
Jim’s Jim’s GroupGroup
Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer ServicesJim’s Dog WashJim’s Dog Wash
Jim’s Driving SchoolJim’s Driving SchoolJim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
Basement Basement Systems Inc.Systems Inc.
*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!) (115,000!)
*1993: $0; 2003: $12M; *1993: $0; 2003: $12M; 2006: 2006:
$50,000,000+$50,000,000+
EXCELLENCE. EXCELLENCE.
INNOVATE. INNOVATE. OR. OR. DIE.DIE.
What makes What makes God laugh?God laugh?
PeoplePeople makingmaking plans!plans!
TheThe Mess Mess IsIs TheThe
Message! Message! Period!Period!
An Economic Interpretation of the ConstitutionAn Economic Interpretation of the Constitution of the United States of the United States —Charles Beard (1913)
The Box: How the Shipping The Box: How the Shipping Container Made the World Container Made the World
Smaller and the World Smaller and the World Economy BiggerEconomy Bigger —Marc Levinson
Tube: The Invention of TelevisionTube: The Invention of Television —David & Marshall Fisher
Empires of Light: Edison, Tesla,Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify Westinghouse, and the Race to Electrify
the World the World —Jill Jonnes
The Soul of a New MachineThe Soul of a New Machine —Tracy Kidder
Rosalind Franklin: The Dark Lady of DNARosalind Franklin: The Dark Lady of DNA —Brenda Maddox
The Blitzkrieg MythThe Blitzkrieg Myth —John Mosier
InnoTac64InnoTac64
“Acquisitions are about buying market share.
Our challenge is Our challenge is to create to create
marketsmarkets.. There is a big difference.”
—Peter Job, former CEO, Reuters
Characteristics of the “Also rans”*Characteristics of the “Also rans”*
“Minimize risk”“Respect the chain of
command”“Support the boss”
“Make budget”**FortuneFortune, article on “Most Admired Global Corporations”, article on “Most Admired Global Corporations”
revenue revenue matters matters most most
The Commerce Bank ModelThe Commerce Bank Model
“cost cutting “cost cutting is a death is a death spiral.”spiral.”
Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth
IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman
““Our whole Our whole story is story is growing growing
revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard
is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)
The Commerce Bank ModelThe Commerce Bank Model
““overover-invest in -invest in our people, our people, overover--
invest in our invest in our facilities.”facilities.”
Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth
IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman
CCRR O*
*Chief RevenueRevenue Officer
We We becomebecome who we hang who we hang
out with out with
Measure “StranMeasure “Stranggeness”/Portfolio Qualiteness”/Portfolio Qualityy
StaffStaffConsultantsConsultants
VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)
Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers
Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)
Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)
IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates
LanguageLanguageBoardBoard
The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)
relationship-partnership relationship-partnership decision (employee, decision (employee,
vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision
about: about:
“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”
“The The Bottleneck Bottleneck
Is at the Top Is at the Top of the of the
Bottle”Bottle”“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry dogma:
AtAt thethe totop!”p!”
— Gary Hamel/Harvard Business Review
WhackyWhackyWWikiikiWorldWorld
WowWow
Wikinomics:Wikinomics: How Mass How Mass
Collaboration Collaboration Changes Changes
EverythingEverything
——Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams
““The Billion-man The Billion-man Research Team: Research Team:
Companies offering Companies offering work to online work to online
communities are communities are reaping the benefits of reaping the benefits of
‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07
Concoct a Concoct a Parallel Parallel
universe!universe!
“SkunkWorks”/ “ParallelUniverse”
“the 1%1%
solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)
““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!
try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try
it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.
Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.
do do things.things.
““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher
drill.drill.
“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may
think you’re finding it when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
try try things.things.
““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the
software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to
make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype
versionversion ##55.. By the time our rivals areBy the time our rivals are
ready with wires and screws, we are on versionready with wires and screws, we are on version
##1010.. It gets back to It gets back to
planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by
BloombergBloomberg
try.try.Miss.Miss.try.try.
““We are in a We are in a brawl with no brawl with no
rules.”rules.” —Paul Allaire
S.A.S.A.V.V.
Screw. Screw. things.things.
Up.Up.
““Fail .Fail . Forward. Forward.
Fast.”Fast.”High Tech CEO, Pennsylvania
““RewardReward excellent failures.
PunishPunish mediocre
successes.”Phil Daniels, Sydney exec
No try. No try. No deal.No deal.
““You miss You miss
100100%%
of the shots of the shots you never you never
take.”take.” —Wayne—Wayne GretzkyGretzky
Conscious Conscious measurementmeasurement
Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic
Initiatives/Key Projects score 88 or higher or higher [out of 10] on a
“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game- changer”“Game- changer”
Scale?
personalpersonal
““Work Work on me on me
first.”first.” —Kerry Patterson,
Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
EXCELLENCE.EXCELLENCE.
VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.
$55$55BB
HuHuggee:: Customer
SatisfactionSatisfaction versus Customer
SuccessSuccess
The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING
Customer Success/ Customer Success/ Gamechanging Gamechanging
SolutionsSolutionsServicesGoods
Raw Materials
EXCELLENCE.EXCELLENCE.
SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.
P.S.F.P.S.F.
“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
way of saying that …
yyou’ve ou’ve become become
irrelevant irrelevant toto y your our
customerscustomers.”.”
—John Battelle/Point/Advertising Age/07.05
““[Former Fed Vice-chairman Alan] [Former Fed Vice-chairman Alan] Blinder … Blinder … remains an implacable opponent of tariffs and remains an implacable opponent of tariffs and
trade barriers. But now he is saying loudly that a trade barriers. But now he is saying loudly that a new industrial revolution—communication new industrial revolution—communication
technology that allows services to be delivered technology that allows services to be delivered
from afar—will put as many as from afar—will put as many as 40 40 million Americanmillion American jobsjobs at risk of being shipped out of the at risk of being shipped out of the
country in the next decade or two.”*country in the next decade or two.”* —Wall Street —Wall Street Journal Journal /0328/0328
*Blinder: 40 million = *Blinder: 40 million = “only the tip“only the tip of a very big iceberg.”of a very big iceberg.”
Department Head
to …
ManaginManaging g
PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..
Answer:
PSFPSF
EXCELLENCE.EXCELLENCE.
VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.
““Experiences Experiences are as distinct are as distinct
from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The
Experience Economy: Work Is Theatre & Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in
black leather, ride black leather, ride through small towns and through small towns and
have people be afraidhave people be afraid of him.” of him.”
HarleyHarley exec, quoted in Results-Based Leadership
The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION
Spellbinding Spellbinding ExperiencesExperiences
Gamechanging SolutionsServicesGoods
Raw Materials
CCXXOO**Chief eXperience Officer
EXCELLENCE.EXCELLENCE.
VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.
DREAM IT.DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at
Domain. We sell We sell dreamsdreams. This is
accomplished by addressing the half-formed needs in our
customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.” — Judy George,
Domain Home Fashions
The Value-added Ladder/ EMOTIONEMOTION
Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions
ServicesGoods
Raw Materials
““Dreams Come True”:Dreams Come True”:
IBMIBM
EXCELLENCE.EXCELLENCE.
VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.
ALL YOU NEED IS ALL YOU NEED IS LOVE.LOVE.
““Brands Brands have run out have run out
of juice. of juice. They’re They’re
deaddead.”.” —Kevin Roberts/Saatchi &
Saatchi
Kevin Roberts:
LovemarLovemar
ksks!!
Tattoo BrandTattoo Brand: What % of users would tattoo the brand name on their
body?
Top 10 “Tattoo Brands”*
Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8
Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6
Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6
Nintendo …. 1.5Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
The Value-added Ladder/ The Value-added Ladder/ ECSTASYECSTASY
LovemarkLovemark Dreams Come TrueDreams Come True
Spellbinding Experiences Spellbinding Experiences Gamechanging Solutions Gamechanging Solutions
ServicesServicesGoodsGoods
Raw MaterialsRaw Materials
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
““NEW” NEW” MARKETS.MARKETS.
women.women.BOOMERSBOOMERS
..GEEZERS.GEEZERS.
women.women.BOOMERBOOMER
S.S.GEEZERSGEEZERS
..
““Forget Forget ChinaChina, , IndiaIndia and the and the
InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven
by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
““Women Women areare thethe
majority majority market”market”
—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse
““The The most most significant variablesignificant variable
inin everyevery sales situation is sales situation is
thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how
the salesperson the salesperson communicates to the communicates to the
buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women
Women’sWomen’s Trifecta+ Trifecta+
**BuyBuy * *WealthWealth
**LeadLead
++ECLIPSE OF ECLIPSE OF MALESMALES
(Old/Retire; Young/Poorly educated)
The Perfect Answer
Jill and Jack buy slacks in black…
Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model
Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model
Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter
“She knows moreknows more about the [Audi] than the salesmanman who greets
her at the door. But how is she treated? As if she has a low IQ low IQ , is slightly hard of hearing hard of hearing , and really has no rightno right to be buying a luxury
car; and if she brought a male friend with her, odds are 10:1 that the
clueless salesperson spent most of his time speaking to him speaking to him .” —Selling to Men,
Selling to Women, Jeffery Tobias Halter
““AS AS LEADERS, LEADERS, WOMEN WOMEN
RULERULE:: New Studies find
that female managers outshine their male counterparts in almost every measure”
TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek
10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE
WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.
SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??
women.women.BOOMERBOOMER
S.S.GEEZERSGEEZERS
..
2020
$14,000,000,000,000$14,000,000,000,000--
$25,000,000,000,000 $25,000,000,000,000
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50
today have today have more more thanthan halfhalf of of their adult life their adult life
ahead of them.”ahead of them.” —Bill
Novelli, 50+: Igniting a Revolution to Reinvent America
7/17/133
2000-2010 Stats
18-44: -1%-1%
55+: ++2121%%(55-64: ++4747%%)
We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western Western
EuropeansEuropeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, the , the biggestbiggest, the , the
wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most experimental & experimental &
exploratoryexploratory, the most , the most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult &
demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,
(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most
profoundly important commercial market profoundly important commercial market in the history of the world—and we will be in the history of the world—and we will be the Center of your universe for the next the Center of your universe for the next
twenty-fivetwenty-five yearsyears. We have arrived!. We have arrived!
See me.See me.Watch me.Watch me.respect me.respect me.
Suck up to me.Suck up to me.Serve me.Serve me.Love me.Love me.
Love my longevity.Love my longevity.Love my m-o-n-e-y. Love my m-o-n-e-y.
Elizabeth Cady StantonElizabeth Cady Stanton(more or less) (circa 0331.2007)(more or less) (circa 0331.2007)
See “See “herher.”.”Watch Watch herher..respect respect herher..
Be obsequious to Be obsequious to herher..Serve Serve herher..Love Love herher..
Love her Love her longlong longevity. longevity.Love Love herher m-o-n-e-y. m-o-n-e-y.
(which is damn near (which is damn near a-l-la-l-l the mon-the mon-$$$$$$$$$$$$.) .)
Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+
*Buy/*Buy/allall *Wealth/ *Wealth/allall
*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie
44-65: “New “New Customer Customer Majority”Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.TALENT.TALENT.
Hire Hire ververy y good good
people!people!
“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-
Pacific … changed 2020 of his
4040 box plant managers to put more talented,
higher paid managers in charge. He increased profitability from
$$2525 million to $$8080 million in 22
years.”
—Ed Michaels, War for Talent
INVITE THEM INVITE THEM TO JOIN US IN TO JOIN US IN A JOURNEY TO A JOURNEY TO EXCELLENCE!EXCELLENCE!
“In the end, management doesn’t
change culture. Management
invitesinvites the workforce itself to change the culture.”
—Lou Gerstner
EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT
SKILLS.”SKILLS.”
SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE
PERSON”? PERSON”? PROVE ITPROVE IT..
PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.
NOBLEST NOBLEST MISSION.MISSION.
SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE
PERSON”? PERSON”? PROVE ITPROVE IT..
< CAPEX< CAPEX> People!> People!
LIVE FOR LIVE FOR TALENT!TALENT!
Our Mission
To develop and manage To develop and manage talent;talent;
to apply that talent,to apply that talent,throughout the world, throughout the world,
for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;
to do so with profit.to do so with profit.
WPP
53 = 53 = 5353
Promise #1:Promise #1: ““NeverNever, ever , ever again will I again will I evaluateevaluate
anyone using a anyone using a standardizedstandardized instrument instrument
devised bydevised by a “professional” in a “professional” in inhuman Resources.”inhuman Resources.”
53 = 53 = 5353
One size … One size …
NEVERNEVER
…… fits all. fits all.
Arts/Arts/??????V.P.V.P.ss//??????
Nobel Prizes/Nobel Prizes/??????Our spouse/Our spouse/??????Our children/Our children/??????
NEVERNEVER … ever … ever … ever ……. … ever …….
ever … ever … ever … ever …
everever … ever … ever … ever … … ever … everever … …
EVEREVER … …
ever … ever … ever … ever … ever …ever …
Brand Brand = =
Talent.Talent.
EXCELLENCE.EXCELLENCE. BEDROCK.BEDROCK.
LEADERSHIP.LEADERSHIP.“12 P“12 Pss.”.”
Tom Peters/04.18.2007Tom Peters/04.18.2007
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon
(+TP’s writing room pics)(+TP’s writing room pics)
Leader Job OneLeader Job One
Paint Paint Portraits of Portraits of
ExcellenceExcellence!!
PURPOSEPURPOSE..
PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”
—Samuel Taylor Coleridge
PURPOSEPURPOSE..PASSIONPASSION..
PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors
and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..
PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
2255
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..
PersonalPersonal.. pissed offpissed off. .
PlayfulPlayful..PERSISTENCEPERSISTENCE..
PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““You must You must bebe the change you the change you
wish to see in the wish to see in the world.”world.”
Gandhi
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
Pissed Pissed Off* **Off* **
*As in “I’m pissed off and I’m not gonna take it any more …”*As in “I’m pissed off and I’m not gonna take it any more …”
**Innovation Stems from **Innovation Stems from IrritationIrritation (Re-imagining Results from (Re-imagining Results from
RageRage))
F(Anger/Passion)F(Anger/Passion) >>>> >>>> f(Pushback f(Pushback from Threatened from Threatened
Fat-cats & Fat-cats & Bureau-crats)Bureau-crats)
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. .
PlayfulPlayful..PERSISTENCEPERSISTENCE..
PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
SERIOUS SERIOUS PLAYPLAY
““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and
able to seriously play. able to seriously play. ‘‘Serious playSerious play’ is not an ’ is not an
oxymoron; it is the oxymoron; it is the essenceessence of of innovationinnovation.” .” —Michael Schrage,—Michael Schrage, Serious PlaySerious Play
try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try
it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.
Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““This [adolescent] incident [of getting from point A to point B] is notable This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his not only because it underlines Grant’s fearless horsemanship and his
determination, but also it is the first known example of a very important determination, but also it is the first known example of a very important
peculiarity of his characterpeculiarity of his character:: Grant had an Grant had an extreme, almost phobic extreme, almost phobic dislike of turning back dislike of turning back
and retracing his steps.and retracing his steps. If he If he
set out for somewhere, he would get there somehow, whatever the set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, the factors that made him such a formidable general. Grant would always,
always press on—turning back was not an option for him.”always press on—turning back was not an option for him.”
—Michael Korda, Ulysses Grant
““incredible incredible power of power of
endurance”endurance” ——
ppolitical colleague, on Nicolas Sarkozy, repeatedly written off by the olitical colleague, on Nicolas Sarkozy, repeatedly written off by the public andpublic and
the celestial powers of French politics ( the celestial powers of French politics (FTFT, 0515.07), 0515.07)
““Success seems to Success seems to be largely a be largely a
mattermatter
of of hanginghanging onon after others after others have let go.”have let go.” —William —William
Feather, authorFeather, author
Re-Re-lentlent-less-less
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..
PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““Leaders Leaders
‘‘dodo’’ people. people.
Period.”Period.” —Anon.
““Leaders Leaders
‘‘SERVESERVE’’ people. people.
Period.”Period.” —Anon.
CauseCause (worthy of commitment)(worthy of commitment)
SpaceSpace (room for/encouragement(room for/encouragement
for initiative) for initiative)
DecencyDecency (respect, (respect,
humane)humane)
““Sorry, I’ve got Sorry, I’ve got to go—the HR to go—the HR people get on people get on
me if I don’t go me if I don’t go do my ‘shake do my ‘shake
hands-chat up’ hands-chat up’ duty”duty” —president, large division —president, large division
of large company in the _______ industryof large company in the _______ industry
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .
PeculiarPeculiar..PotentPotent..
PositivePositive..
““Normal” Normal”
= = “o “o forfor 800”800”
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..
PotentPotent..PositivePositive..
Kevin Roberts’ Credo
11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.
10. Avoid moderationAvoid moderation!!
““If I had any epitaph that I If I had any epitaph that I would rather have more than would rather have more than any other, it would be to say any other, it would be to say
that I hadthat I had … …disturbed disturbed the sleep of my the sleep of my
generation.”generation.” —Adlai Stevenson—Adlai Stevenson
““Do one Do one thing every thing every
day that day that scares you.”scares you.”
—Eleanor Roosevelt
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
The greatest dangerThe greatest dangerfor most of usfor most of us
is not that our aim isis not that our aim istoo hightoo high
and we miss it,and we miss it,but that it isbut that it is
too lowtoo lowand we reach it.and we reach it.
Michelangelo
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
pissed offpissed off. . PlayfulPlayful..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..
PositivePositive..
““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”
Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)
"Life is not a journey to the grave with the intention of arriving safely in one pretty
and well preserved piece, but to skid across the line
broadside, thoroughly used up, worn out, leaking oil,
shouting ‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer
(Cycle magazine 02.1982)
Ger-Ger-onon-i--i-momo!!
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