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1 NOTE: To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”

2 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part one (of 7) “all you need to know” (dwelling on the obvious) not your father’s world introduction to excellence. 19 October 2007

3 THE MASTER PRESENTATION: There are about 3,500 slides in this 7-part “Master Presentation.” The first six “chapters” are indeed meant add up to a logical, linear argument. Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Despite the “logical argument,” I think you’d be better off if you thought of “all this” as I do—an ENCYCLOPEDIA OF IDEAS. Various “riffs” are attached throughout which, though not perfect fits, serve my purpose as “meat” from which I cobble together a finance presentation in Bahrain … or a health-services lecture in Virginia. For example, the day I wrote this I spoke to an association made up of independent middle-size companies. I led off with a new section on the place for and power of middle-sized firms in general, featuring the German Mittelstand—which is the basis for that country’s surprise ranking as the world’s #1 exporter. These agile players, residing in the ultimate high-wage nation, tend to “own” a niche courtesy astoundingly high-value-added products. This “Mittelstand opener” does not fit in the Master in a tidy fashion, but I want it to be available for future use and it works pretty well in the overall innovation argument—hence its landing in Part II. The placement is not bad, but the point is that this “idea” is now available to me—and you—in my “encyclopedia.” And there you have it! 19 October 2007

4 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part two (of 7) innovate. Or. Die.

5 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part THREE (of 7) up, up, up, up … the value added ladder (raw materials-manufactured goods-services- solutions-experiences-dreams-lovemarks)

6 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part FOUR (of 7) “new” Markets (Stupendous Opportunity)

7 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part FIVE (of 7) people! (Brand you. Talent. Health. Education.)

8 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part six (of 7) leadership!

9 NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part Seven (of 7) excellence. summaries. Lists.

10 Slides at … tompeters.com

11 Welcome to Tom Peters “PowerPoint World”
Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point!

12 “We all agree your theory is crazy
“We all agree your theory is crazy. The question, which divides us, is whether it is crazy enough.” —Niels Bohr, to Wolfgang Pauli

13 part one

14 NOTE: In what follows you will find a variety of “openings
NOTE: In what follows you will find a variety of “openings.” I mix and match from this section depending on the demographics, industry and nationality of the target audience.

15 Tom Peters’ X25. EXCELLENCE. ALWAYS. MASTER/Part ONE
Tom Peters’ X25* EXCELLENCE. ALWAYS. MASTER/Part ONE *In Search of Excellence

16 Story Lines.

17 Our Story Line Not your father’s world Big = Pitiful. Excellence
Our Story Line Not your father’s world Big = Pitiful. Excellence. Always./“only-ones -who-do-what-we-do.” (what else?) Innovate. Or. Die. Up. Up. Up. Up. Up, Up, Up the “Value Added Chain.” (Raw materials. Goods. Services. Implemented-gamechanging Solutions. Scintillating experiences. Dreams come true. Lovemarks.) Stupendous-underserved “New” Markets (Women, Boomers & geezers) Talent = Brand. /You = Brand You. / educate-for-creativity Leading with passion & relentlessness (“21st Century Leadership. Ha.) 17

18 The Story Not your father’s world Big = Pitiful. Excellence. Always
The Story Not your father’s world Big = Pitiful. Excellence. Always. (what else?) Innovate. Or. Die. Up, Up, Up the “Value Added Chain.” “New” Markets (Women, Boomers) Talent = Brand. Leading with passion 18

19 Context/5/42/500/900. Weeks of Whoops
*Context/5/42/500/900. *Weeks of Whoops! *Built to Flop: Pitiful Performance! *Innovate. Or. die. *Value-added Ladder/ raw materials to “lovemarks.” *BEDROCK: “MODEL PSF. *“New” Markets/ women. Boomers-geezers. * “aside”: “Eternal” Basics. *Talent. BRAND YOU. Education. *VIRAL Leadership.

20 Re-imagine! Speech: Story Line in 100 Words or Less
1. Wildly altered context (technology, China-India, global terrorism, etc) Only answer: adaptive skills and bold-breathtaking innovation (top-line focus rather than cost-cutting focus) 3. Race way, way up the value-added curve (implemented “game-altering solutions” rather than “services,” “experiences” rather than “transactions,” and much more) 4. As part of value-added exercise, pursue Ripe & Enormous “new” markets—Women, Boomers & Geezers 5. Radical (!!!) use of IS-IT A “Roster” of Weird & Wondrous & Entrepreneurial “Talent” engaged in “Wow Projects” “Metabolic Leadership” (Passionate-Radical Leaders who instill a Discipline of Execution, a Quick Tempo-Adaptive Culture and an appetite to “Eat Radical Change for Breakfast”) (96 words by my count)

21 Bias/es: Trained by “Mess-ists”— those with a non-linear view of the world. Hobbies are history & statistics.* Professional life, center of, Silicon Valley, Axiom2007: The older I get, the less boring the “basics” become. *Favorite book, Nassim Nicholas Taleb—Fooled By Randomness 21

22 Palo Alto/30 California/35

23 Entrepreneurial magnet. Talent in general. Critical mass
*Entrepreneurial magnet *Talent in general *Critical mass *VCs (all levels) *Immigrants-Diversity *Research Universities *Climate-Way of life *Attitude! (Everything is possible!) *IBM? Who cares? *Etc

24 Bedrock.

25 Source: Anon. (Posted @ tompeters.com by
“Excellence can be obtained if you: ... care more than others think is wise; risk more than others think is safe; dream more than others think is practical; expect more than others think is possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

26 “Strive for Excellence. Ignore success
“Strive for Excellence. Ignore success.” —Bill Young, race car driver (courtesy Andrew Sullivan)

27 profits, people or people, profits?

28 Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

29 Flash …

30 Flash … The Rich Get Richer

31 #1/100 “Best Companies to Work for”/2005

32 Wegmans

33 Luiza Helena, Magazine Luiza

34 “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke

35 TP: “How to piss away $500,000 in one easy lesson!!”

36 “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin 36

37 The last word: There is no “last word.”

38 Headline, Wall Street Journal,
3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed” Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”

39 Flat as a Pancake (Or Worse) Wal
Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Yahoo … Home Depot … Microsoft … GE

40 EXCELLENCE. ASPIRATION. 2006.

41 Why in the World did you go to Siberia? web

42 Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity

43 The Peters Principles: Enthusiasm. Emotion. Excellence. Energy
The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow!

44 Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 44

45 “BUSINESS IS ABOUT POWER.” —Joanne Lipman, editor, on Portfolio

46 TP: “BUSINESS IS ABOUT ...”

47 “enterprises that Matter & change the game … offer solutions & experiences that surprise , amaze, and transform perceptions of what’s possible —and stick like super-glue in customers’ minds.* such offerings are brilliantly conceived and flawlessly delivered by unconventional, creative, hyper-committed, energetic talent from within & outside the organization.” —Tom Peters E.g.: Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jim’s Group, The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wanamaker’s (circa 1880)

48 “To me business isn’t about wearing suits or pleasing stockholders
“To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson

49 “Make sure your executive team includes top talent in design, engineering and manufacturing, because that’s your only! priority— to build! Cars! People! Want! to buy!. Hot styling sells them and quality keeps them sold.” — Lee Iacocca, Where Have All the Leaders Gone?

50 “It suddenly occurred to me that in the space of two or three hours he never talke4d about cars.” —Les Wexner            

51 Game plan: The unvarnished Basics
Web

52 Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S. A. V
Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) Enjoy It While It Lasts 52

53 Tom’s “Change Rules” Cause. (pissed off. ) Try it. (S. A. V. ) Fail
Tom’s “Change Rules” Cause. (pissed off.) Try it. (S.A.V.) Fail. Forward. Fast. Quests. Demos. Heroes. Stories. Boonies. (Parallel universe.) <12. Just Say No: Normal. Attitude>Ability. Wow. “Insanely great.” Sell! Sell! Sell! Master politics!

54 Bingo. nothing amuses me more than, "It's just
"Because we are such poor implementors does not mean laws of success [underpinning “built to last”] do not exist.” —Comment at tompeters.com ( ) Bingo. nothing amuses me more than, "It's just an implementation problem.”* Good God, that's the whole damn reason we wrote In Search of Excellence 25 years ago! McKinsey invented "perfect" strategies—It was just that our clients were too stupid to implement!!! It reminds me of the great ad man David Ogilvy, "If it doesn't sell it was a bad aD—regardless of the prizes it won.” Implementation is the all-important "last 99%" per me. Companies—e.g. GM—could indeed last forever, save for “lousy implementation.”** *The close kin, an old joke, “This would work fine if it weren’t for the damn people.” **FYI, I apparently wrote, at Stanford, the first doctoral dissertation on … implementation. Needless to say, “all this” is near & dear to my heart—and has been for almost 40 years.

55 The “Big Three” “Justa”s “The strategy is right
The “Big Three” “Justa”s “The strategy is right. It’s just a communications problem.” “The plan is dead on—it’s just an implementation problem.” “Look, we’ve got the strategy right—we just need to fix the people bit.”

56 Excellence. Always. Soft is hard. Hard is soft
Excellence! Always! Soft is hard. Hard is soft. (People, customers “hard,” #s “soft”) 25 (“Blinding flash of the obvious”) Wow! (Passion! Enthusiasm! Hot language! “Insanely great”—Steve Jobs) Wow EVERYWHERE (Jim’s Group, Basement Systems Inc) Innovate. Or die. Top line obsession!!! (CRO/Chief Revenue Officer; Sales>Marketing; “cost cutting = death spiral”—VH) Innovation = Mess (“What makes God laugh?” “People making plans.”) 1/100 (Big over-rated/Mega-mergers destroy value/“Built to last” chimera “Built to last” v “Built to rock the world” (TP’s love affair with Netscape) “Last word” = There is no last word! 0/800 (We are who we hang out with/Weird for weird times) Lead the customer! Whacky Wild WikiWorld! (Electronic planetary scrum.) Try stuff!!!!!!!!! (R.F.A., S.A.V.) (Ready. Fire. Aim. Screw Around Vigorously.) Fail. Forward. Fast. (“Reward excellent failures. Punish mediocre successes.) Try MORE stuff!!! (“You miss 100% of the shots you don’t take.”) Parallel Universe (Jill Ker Conway, Starbucks’ 1%, Intel V.C. fund, China!) 4/40 (4 “learnings” in 40 years: Decentralization, Execution, Accountability, 6:15AM) Lord Nelson (“Other admirals more afraid of losing …”) Up, Up, Up the VA Ladder (Solutions/PSF, Experience; Dreamketing; Lovemark) Women rule! (Buy all ! Control all wealth! Better leaders!) $15,000,000,000,000/7 of 13 (Boomers. Geezers. Wealth. Half of life still to go) Brand You (Or else!) PSF!!! (All) Talent = Brand (“Leaders do people,” “connoisseur of talent,” Send ’em on bold Quests, HR rules! <CapEx$$, >PeopleX$$$ ) (Think: Wegmans) 195,000 (Healthcare: Quality-Safety/EMR/DSS, Prevention-Wellness, Public Health #1!) “Teach to test” = Evil! (The Creative Age is a wide-open game.” —Richard Florida) Leadership/12Ps (Purpose. Passion. Potential. Presence. Personal. Pissed off. Playful. Persistence. People. Peculiar. Potent. Positive.) “Do one thing every day that scares you.” (Eleanor Roosevelt) Basics! (Decency. Flowers. Grace. Respect. Servant. Host. Etc.)

57 This I Believe: Tom’s Super-TIB25 1. TECHNICOLOR Times. 2. Passion
This I Believe: Tom’s Super-TIB TECHNICOLOR Times. 2. Passion! Enthusiasm! Energy! 3. Action/R.F.A./O.O.D.A. Speed. 4. Screw-ups. BIG SCREW-Ups! 5. Mess! Improv! 6. Revolution! Re-imagine! 7. INNOVATE OR DIE! 8. Decentralize! 9. Bulk is BULL! (Mergers don’t work. FOCUS Does!) 10 “Different” > “Better” 11. eALL/Power Tools for Power Strategies! 12. Forgetting/Destruction. 13. Hot Language Matters! 14. WOW!/WOW Projects. 15. VA Bedrock: The “PSF.” (Professional Service Firm.) 16. Daring. 17. Talent Time! Leaders “Do” People! 18. Talent+/Diversity. 19. Talent++/Women Rule! 20. “Brand You” Universe. 21. Design! 22. Gasp-worthy Experiences/Lovemarks. 23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness. 24. Grace. 25. EXCELLENCE!

58 Sir Richard’s Rules Follow your passions. Keep it simple
Sir Richard’s Rules Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune/10.03

59 All you need to know …

60 25

61 The magic number 25. Mbwa. Calendars never lie. Excellence. Always
The magic number 25. Mbwa. Calendars never lie. Excellence. Always. Tom Peters/

62 25

63 Though his empire is enormous, and his executive team strong, Starbucks founder Howard Schultz still … religiously … visits at least 25 S’bucks shops … per week! “Regardless of our size,” he told me, “we still sell it one-cup-at-a-time, one customer-at-a-time, one server-at- a-time. I need to see it and touch it and feel it.”

64 MBWA* *5,000 miles for a 5-minute face-to -face meeting (courtesy super- agent Mark McCormick)

65 When Bob Waterman and I wrote In Search of Excellence in 1982, business was “by the numbers”—and the Americans were struggling (to put it mildly) with hands on, tactile stuff, like Japanese quality. Then, at Hewlett Packard, we were introduced to the famed “HP Way,” the centerpiece of which was in-touch management. HP had a term for this … MBWA. (Managing By Wandering Around.) Bob and I fell in immediate love. Not only was the idea per se important and cool, but it symbolized everything we were coming to cherish—enterprises where bosses-leaders were in immediate touch with and emotionally attached to workers, customers, the product. The idea is as important or more important in fast-paced 2007 as it was in 1982.

66 You = Your calendar* *Calendars never lie

67 All we have is our time. The way we spend our time is our priorities, is our “strategy.” Your calendar knows what you really care about. Do you?

68 “You must be the change you wish to see in the world.” Gandhi

69 “It’s always showtime.” —David D’Alessandro, Career Warfare

70 “20-minute rule” —Craig Johnson/30 yrs

71 Craig Johnson, a famed Venture Capitalist for three decades … refuses to invest in companies that are more than a 20-minute drive from his office. To guide them through the serpentine path ahead, he insists that he must be in constant touch as banker, advisor, friend.

72 >70* *Hank Paulson, China visits, Fortune 1127.06

73 China is clearly our most important economic partner
China is clearly our most important economic partner. Our dialog with China was not what it might have been when Hank Paulson took over as Secretary of the Treasury. Immediate improvement occurred for numerous reasons, not least of which were Paulson’s SEVENTY TRIPS to China while at Goldman Sachs.

74 “I called 60 CEOs in the first week of the year] to wish them happy New Year. …” —Hank Paulson, former CEO, Goldman Sachs Source: Fortune, “Secrets of Greatness,”

75 MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: Muhammad Yunus, Banker to the Poor

76 “You must be the change you wish to see in the world.” Gandhi

77 “It’s always showtime.” —David D’Alessandro, Career Warfare

78 “… a blinding flash of the obvious” —Manny Garcia

79 “All this” [this little riff] is indeed, as seminar participant and leading Burger King franchisee Many Garcia once said to me, “obvious.”* But observation over four decades** suggests that amidst the hubbub and travails of a typical day’s work, the so-called obvious is often-usually left unattended. For perfectly good reasons, another week passes without a visit to our equivalent of the Starbucks shops or HP R&D labs, without the equivalent to Hank Paulsen’s “How ya doin’?” call to a key customer. My [Tom Peters] Job One in life? Remind busy folks of the obvious! *Manny Garcia/1983: “Tom, I hope you won’t be insulted when I say this was the best seminar I’ve ever been to—and it was a blinding flash of the obvious.” **I had two commanding officers during my two Vietnam tours in U.S. Naval Mobile Construction Battalion NINE. One was a Shultz look-alike—instinctively in the field. The other was an in the office “leader.” The one produced. The other didn’t. At age 24 I learned an incredible life lesson, though I couldn’t describe it well until tripping over HP’s MBWA/Managing By Wandering Around.

80 The older I get the less boring the “basics” become!

81 The “Primitives”: Carlos [Slim] n’ Warren [Buffett]

82 “The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know

83 All you need to know … except for …

84 Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in your long and distinguished career?” His immediate answer: “remember to tuck the shower curtain inside the bathtub” 84

85 This is it: All you need to know …

86 Thank you!!!

87 Thank you Ann!!! 87

88 FLOWER POWER FLOWER POWER web

89 The … Jim Jeffords oversight!

90 “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay

91 Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.

92 “Be kind, for everyone you meet is fighting a great battle
“Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria

93 The Manager’s Book of Decencies: How Small /gestures Build Great Companies. —Steve Harrison, Adecco

94 W. Donald Schaefer 1921-Forever He Cared

95 William Donald Schaefer Mayor of Baltimore He Cared.

96 The Manager’s Book of Decencies: How Small gestures Build Great Companies. —Steve Harrison, Adecco
Servant Leadership —Robert Greenleaf One: The Art and Practice of Conscious Leadership —Lance Secretan, founder of Manpower, Inc. (“What would happen if we looked at a customer and saw the face of God in them?”)

97 “What would happen if we looked at a customer and saw the face of God in them? To most people it sounds like a lofty idea. But if you see the face of God in a flower, why wouldn’t you see it in the face of a customer? If we treated customers and honored the God within them—if we loved them—we would not need a ‘quality program.’” —Lance Secretan, founder of Manpower, Inc., and most recently author of One: The Art and Practice of Conscious Leadership

98 Respect. Decency. Wee Gestures.

99 Success … Consult everyone on everything “Thank you” note carpet bombing Source: Roger Rosenblatt, Rules for Aging

100 This is it: All you need to know …

101 R.O.I.R 101

102 Return On Investment In Relationships
102

103 network. Breadth. Depth. Recruitment strategy. Maintenance scheme.
103

104 C(I) > C(E) 104

105 Master the intricacies of the system —Tom DeLay (Al Smith, LBJ)

106 “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” —Dale Carnegie

107 “Leaders ‘SERVE’ people. Period.” —Anon.

108 1. Do those served grow as persons?
Servant Leadership/Robert Greenleaf 1. Do those served grow as persons? 2. Do they, while being served, become healthier wiser, freer, more autonomous, more likely themselves to become servants?

109 TP: People are always ready to tell their story
TP: People are always ready to tell their story! See also: “The story leaner’s edge” (Steve Farber) “The dream manager” (Matthew Kelly)

110 “No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know

111 “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX

112 Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)
112

113 Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

114 TP: “How to piss away $500,000 in one easy lesson!!”

115 Success … Consult everyone on everything “Thank you” note carpet bombing Source: Roger Rosenblatt, Rules for Aging

116 Fred Reichheld’s The Ultimate Question : Customer satisfaction is best measured* by one simple question, “how likely are you to recommend ______ to a friend?” * “Net Promoter Score”

117 *Watergate, M Stewart, BR **And: PERCEPTION IS ALL THERE IS!
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* ** *Watergate, M Stewart, BR **And: PERCEPTION IS ALL THERE IS!

118 This is it: All you need to know …

119 “Do one thing every day that scares you.” —Eleanor Roosevelt

120 NOTE: you will discover that the prior slide appears time and time again in this presentation.

121 “Intelligent” question: Pretty much know the answer
“Intelligent” question: Pretty much know the answer. “Dumb” question: (1) Dumb (you perceived as fool) or (2) the source of a true insight/all knowledge. Axiom: No “dumb” questions, no progress!

122 “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat

123 “Every time we come to a comfort zone, we will find a way out
“Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil

124 “You do not merely want to be the best of the best
“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia 124

125 “There are people who prefer to say ‘Yes,’ and there are people who prefer to say ‘No.’ Those who say ‘Yes’ are rewarded by the adventures they have, and those who say ‘No’ are rewarded by the safety they attain.” —Improv Wisdom: Don’t Prepare, Just Show Up, Patricia Ryan Madson (“ … yes I said yes I will Yes.”—James Joyce, Ulysses)

126 This is it: All you need to know …

127 1 Person! Wendy Kopp, Princeton senior (1989) Teach America (19,000-2,400) 10% Dartmouth, Yale 17,000 to date Principal hirer of college graduates “One of the few jobs that people pass up Goldman Sachs for is Teach America” (Edie Hunt, HR) Source: Fortune,

128 Bonus …

129 P [Residual] = .0004* *4/10,000 [.02 X .02]

130 1982 (-) = 200 Years (+)

131 Bonus …

132 New Economy?! Sergey + Larry > Harvard/370

133 Truly, truly All you need to know …

134 “Forget China, India and the Internet: Economic Growth Is Driven by Women.”
—Headline, Economist, April 15, 2006, Leader, page 14

135 Truly All you need to know …

136 80,000,000* * N America, W Europe, Japan (800,000,000)

137 All you need to know …

138 New Zealand 2007 web

139 Ho hum: 2+ weeks in New Zealand … Pfizer Ford Gap Chrysler Yahoo microsoft wal*mart ??? ???

140 The last word: There is no “last word.”

141 The last word: There is no “last word.”

142 Headline, Wall Street Journal,
3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed” Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”

143 Flat as a Pancake (Or Worse) Wal
Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Yahoo … Home Depot … Microsoft … GE

144 “We may not be interested in chaos but chaos is interested in us
“We may not be interested in chaos but chaos is interested in us.” —Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

145 All you need to know …

146 The last word: There is a “last word.”

147 “Make sure your executive team includes top talent in design, engineering and manufacturing, because that’s your only! priority— to build! Cars! People! Want! to buy! Hot styling sells them and quality keeps them sold.” — Lee Iacocca, Where Have All the Leaders Gone? 147

148 Radio City Music Hall September 2005

149 Franchise Lost! TP: “How many of you [600] really crave a new Chevy?”

150 My (Les’s) Dinner with Henri JUSWHATIZZITUMAKE?

151 My (Les’s) Dinner with Henri JUST WHAT IS IT YOU MAKE??????

152 “Not long ago, I heard one studio chief utter the unthinkable: ‘What would happen if I made a movie I actually looked forward to seeing?’ ” —Peter Bart, Editor in Chief, Variety; former Paramount exec, “Hollywood’s Model Doesn’t Produce Art, or Much Profit” (NYT/ )

153 Did one of ’em ever turn to the other and say: “Wow, I wonder what unimaginable new tools, otherwise not possible, will be brought forth for my daughter Alice, age 17, because of this deal?”

154 Did one of ’em ever turn to the other and say: “Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth for our customers because of this deal?”

155 All you need to know …

156 Single greatest act of pure imagination
web

157 24% web

158 dubai web

159 “Dubai the next hot location for Hollywood” —headline, EmiratesToday, 0527.07 (spurred by Syriana)

160 “ … joint venture …world’s largest shopping zone …” —Khaleej Times, Dubai/UAE, 0527.07

161 “Barney’s New York Sold to Dubai Government for $825 Million” Source: Headline, New York Times,

162 “Copper Thieves Cause Havoc for Commuters” —The Guardian (London) 28
“Copper Thieves Cause Havoc for Commuters” —The Guardian (London) “10 Billion Dollars: Contributing to the Development of Knowledge and Culture” —Mohammed Bin Rashid Al Maktoum Foundation (FT, ) *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone Group 162

163 All you need to know …

164 NOT YOUR FATHER’S WORLD!
164

165 “Copper Thieves Cause Havoc for Commuters” —The Guardian (London) 28
165

166 Chicagoland’s Mystery Disappearances …
166

167 China’s share of global consumption/2005: Cement … 47% Cotton … 37% Coal … 30% Steel … 26% Source: BusinessWeek/08.05 167

168 26m* *60,000/3 yrs 168

169 43h* *200/yr 169

170 1 Houston/ Month/15 170

171 5 (Years) /42 (New Airports)
171

172 China’s share of global consumption/2005: Cement … 47% Cotton … 37% Coal … 30% Steel … 26% Source: BusinessWeek/08.05 172

173 S & P 500, circa 2007: >50% of revenue from outside the U. S
S & P 500, circa 2007: >50% of revenue from outside the U.S., first time Source: NYT,

174 200 cities with >1,000,000 population
200 cities with >1,000,000 population. Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs 174

175 “china and India set sights on moon mission” Source: Headline/FT/05.30.2007
175

176 “Non-intervention is our brand, like intervention is the American’s brand,” Zhou Yuxiao, Chinese diplomat on a mission in Africa (U.S. News & World Report, )

177 THREE BILLION NEW CAPITALISTS —Clyde Prestowitz
177

178 Schools & Shifting Tectonic Plates
In: "economics, technology, social customs and globalization." Out: Socialism in general ("one short chapter"). Chinese communism before the 1979 economic revolution ("a sentence"). Mao ("only once, in a chapter on etiquette"). Source: The New York Times, p1, , on reported on revised history textbooks for high school seniors in Shanghai, China. 178

179 “Let China sleep, for when she awakes she will shake the world
“Let China sleep, for when she awakes she will shake the world.” Source: Napoleon

180 APPARENTLY, NOT YOUR WORLD, EITHER!
180

181 *Blinder: 40 million = “only the tip
40,000,000/20 “[Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as 40 million American jobs at risk of being shipped out of the country in the next decade or two.”* —Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg.” 181

182 “Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02
182

183 “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327 (500 of 900 Research)
183

184 “There is no job that is America’s God-given right anymore
“There is no job that is America’s God-given right anymore.” —Carly Fiorina/HP/January2004

185 “Outsourcing Your Life: Taking Your To-do List Global” —Wall Street Journal, “Pursuits,” (e.g., review bids for kitchen design, Philippines; softball team logo, Bangalore, math tutor at $4 per hour vs $41, etc.)

186 “America, like everyone else, must get used to being a loser as well as a gainer in the global economy. In the end, the 21st century is unlikely to be the American Century.” —“When the Chinese Consumer Is King”/New York Times/ “The notion that God intended Americans to be permanently wealthier than the rest of the world, that gets less and less likely as time goes on.” —Robert Solow, Nobel laureate in economics/New York Times/

187 In Store: International Equality, Intranational Inequality “The new organization of society implied by the triumph of individual autonomy and the true equalization of opportunity based upon merit will lead to very great rewards for merit and great individual autonomy. This will leave individuals far more responsible for themselves than they have been accustomed to being during the industrial period. It will also reduce the unearned advantage in living standards that has been enjoyed by residents of advanced industrial societies throughout the 20th century.” James Davidson & William Rees-Mogg, The Sovereign Individual

188 “There is no job that is _____’s God-given right anymore.”

189 2003: 98% U.S. 2005: U.S. 150; Shanghai 500 189

190 Level 5 (top) certification/ Carnegie Mellon Software Engineering Institute: of 70 companies in world are from India Source: Wired 190

191 “One Singaporean worker costs as much as … … in Malaysia … in Thailand … in China … in India.” Source: The Straits Times/2003

192 “Teenagers in India have big ambitions—and the confidence to match” —headline/Fortune
192

193 “Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy” —Headline, New York Times (“Special intentions,” $.90 for Indians, $5.00 for Americans) 193

194 “Ogre to Slay? Outsource It to Chinese” (New York Times, page 1—news section).
The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels. 194

195 “What strategic motto will dominate this transition from nation-state to market-state? If the slogan that animated the liberal, parliamentary nation-states was ‘make the world safe for democracy,’ what will the forthcoming motto be? Perhaps ‘making the world available,’ which is to say creating new worlds of choice and protecting the autonomy of persons to choose.” —Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

196 “better material welfare” vs
“better material welfare” vs. “maximize the opportunity of its people” —Philip Bobbitt, The Shield of Achilles: War, Peace, and the Course of History

197 The facts of (messy) life …

198 “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin

199 “Active mutators in placid times tend to die off
“Active mutators in placid times tend to die off. They are selected against Reluctant mutators in quickly changing times are also selected against.” —Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors

200 “Natural selection is death
“Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event

201 “One of my superstitions had always been when I started
to go anywhere or to do anything, not to turn back , or stop, until the thing intended was accomplished.” —Grant

202 On NELSON: “[other] admirals more frightened of losing than anxious to win”

203 “The only way to whip an army is to go out and fight it
“The only way to whip an army is to go out and fight it.” —Grant Source: John Mosier, Grant

204 “recognized the value of momentum … throw [opponent] off balance … blitzkrieg … traveling light … headquarters in the saddle” —Jean Edward Smith/GRANT

205 “The Creative Age is a wide open game
“The Creative Age is a wide open game.” —Richard Florida, The Rise of the Creative Class

206 Creativity Index: The 3 T’s Technology (HT Index/firms & $$$, Innovation Index/patent growth) Talent (% with bachelors degrees+) Tolerance (Melting Pot Index/foreigners, Bohemian Index/artists et al., Gay Index/rel. #s) Source: Richard Florida, The Rise of the Creative Class

207 The Memphis Manifesto. : Building a Community of Ideas 1
The Memphis Manifesto*: Building a Community of Ideas 1. Cultivate & reward creativity. 2. Invest in the creative ecosystem. 3. Embrace diversity. 4. Nurture the creatives. 5. Value risk-taking. 6. Be authentic (emphasize uniqueness) 7. Invest in and build on quality of place. 8. Remove barriers to creativity. 9. Take responsibility for change. Development as D.I.Y. 10. Ensure that every person, especially children, has the right to creativity. Become a “Steward of creativity.” *2003/The Creative 100/Memphis Source: Richard Florida, The Rise of the Creative Class

208 “THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND … AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE OPTION OF—EXPLOITING NATURAL RESOURCES.” Source: Juan Enriquez/As the Future Catches You

209 “AS A DEVELOPING COUNTRY … YOU CAN LOWER INFLATION … REDUCE CORRUPTION … CUT YOUR BUDGET … PRIVATIZE … AND STILL NOT GET RICH. BECAUSE YOU ARE NOT GENERATING KNOWLEDGE … JUST PRODUCT. (North America, Western Europe, and Japan generated 84 percent of all scientific papers published during 1995.)” Source: Juan Enriquez/As the Future Catches You

210 “AS A DEVELOPING COUNTRY … YOU CAN LOWER INFLATION … REDUCE CORRUPTION … CUT YOUR BUDGET … PRIVATIZE … AND STILL NOT GET RICH. BECAUSE YOU ARE NOT GENERATING KNOWLEDGE … JUST PRODUCT. (North America, Western Europe, and Japan generated 84 percent of all scientific papers published during 1995.)” Source: Juan Enriquez/As the Future Catches You

211 Hunting for the high ground …

212 “Better By Design”: A National Strategy NZ = Design Excellence

213 “We have to move up the value chain and focus increased efforts on becoming a knowledge-based, entrepreneurial economy if we are to prosper in the medium to long term.” —Tony Dromgoole, Chief Executive, Irish Management Institute

214 “Thaksinomics” (after Thaksin Shinawatra) “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/2004

215 Taiwan, Your Partner in InnoValue Poster/Bucharest/03.06

216 “THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND … AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE OPTION OF—EXPLOITING NATURAL RESOURCES.” Source: Juan Enriquez/As the Future Catches You

217 “Avoiding the Crush: For countries to climb the economic ladder they need strategies to get around China” “Beijing’s industrial dominance has forced middle-income nations such as the Philippines to complement—rather than compete with—the wares of the Middle Kingdom” Source: Headline, FT,

218 FYI

219 China : Timberland = Farmer : Campbell Soup

220 Hold You Horses … *60% of U.S. foreign investment goes to Europe
*U.S. investment in the smaller European nations [e.g. Belgium, Ireland] > U.S. investment in China or India. *2/3rds of European foreign investment is in the U.S. *Europe’s investment in Georgia, Indiana and Texas > U.S. investment in China and Japan combined. Source: Newsweek,

221 All you need to know …

222 0/800

223 0/800: normal!

224 Keep Austin Weird

225 F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats)

226 “Intelligent people can always come up with intelligent reasons to do nothing.” —Scott Simon

227 Honestly, All you need to know …

228 “You do not merely want to be the best of the best
“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia

229 All you need to know …

230 Source: Anon. (Posted @ tompeters.com by
“Excellence can be obtained if you: ... care more than others think is wise; risk more than others think is safe; dream more than others think is practical; expect more than others think is possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

231 “Strive for Excellence. Ignore success
“Strive for Excellence. Ignore success.” —Bill Young, PR driver (courtesy Andrew Sullivan)

232 And I don’t mind. … I may not get there with you. …” —MLK/Memphis
“Life is occupied in both perpetuating itself and in surpassing itself. If all it does is maintain itself, then living is only not dying.” —Simone de Beauvoir “… Longevity has its place, but I’m not concerned about that now. I just want to do God’s will, and He’s allowed me to go up the mountain. And I’ve looked over. And I have seen the Promised Land. And I don’t mind. … I may not get there with you. …” —MLK/Memphis

233 Really, really All you need to know …

234 Enemy #1 I.C.D. Note 1: Inherent/Inevitable/ Immutable Centralist Drift Note 2: Jim Burke’s 1-word vocabulary: “No.”

235 No problems = No progress. [Period.]

236 Life 101: A 40-year Reflection Go on offense. Give everybody a shot.
Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a “success.” Extract “lessons learned” or “best practices.” Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs today’s franchise. Centralize. Calcify. Install taller walls. Write more rules. Become irrelevant and-or die.

237 Really, really All you need to know …

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

239 What makes God laugh?

240 People making plans!

241 NOTE: you will discover that the prior slide appears time and time again in this presentation.

242 READY. FIRE! AIM. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

243 S.A.V.

244 Paul Allaire/Xerox: “We are in a brawl with no rules
Paul Allaire/Xerox: “We are in a brawl with no rules.” TP: “There’s [literally] only one possible answer … Screw Around Vigorously!

245 “Fail . Forward. Fast.” High Tech CEO, Pennsylvania

246 “You miss 100% of the shots you never take.” —Wayne Gretzky

247 “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly

248 Innovation: Get mad. Start Doing something about it. Now.

249 Tom Peters’ X25* EXCELLENCE. ALWAYS. *In Search of Excellence 1982-2007
249

250 EXCELL- ENCE????

251 “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

252 S&P Stability Ratings* Low Risk % % Average Risk % % High Risk 35% % *Likelihood of stable long-term earnings growth Source: Fortune (2 October 2006)

253 Axiom: We have met the enemy and he is us
Axiom: We have met the enemy and he is us. Axiom: The adaptive capabilities of big corporations taken as a whole is problematic [read: pathetic]. Antidote: The answer is 75% internal. To sustain/win, we must first and foremost and in perpetuity beat back the forces of darkness—size and inertia and fear and timidity and over-complexity.

254 “Uncertainty is the only thing to be sure of
“Uncertainty is the only thing to be sure of.” –Anthony Muh, head of investment in Asia, Citigroup Asset Management

255 “Forbes100” from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from to S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

256 0 for 60 China. Iran/79. USSR/bomb/49. Eastern Europe/90. S Korea/50
0 for 60 China. Iran/79. USSR/bomb/49. Eastern Europe/90. S Korea/50. Cuba/62. Arab-Israeli/73. Afghanistan/79. USSR/1989. Kuwait/90. India/98. WMDs/ Etc. Source: Legacy of Ashes* **, Tim Weiner *Eisenhower **“The agency has a great reputation but a terrible record.”—Donald Gregg, nat’l security advisor, VP Bush

257 I.E.: our “best and brightest … aren’t.

258 “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.”—Financial Times/

259 “It’s just a fact: Survivors underperform.” —Dick Foster

260 “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

261 Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in The 1997 crisis “destroyed half of Korea’s 30 largest conglomerates.” Source: “KET Issue Report,” Kim Jong Nyun ( )

262 GM25/50-75: “Built to last”????

263 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

264 Success Kills! “The more successful a company, the flatter its forgetting curve.” — Gary Hamel and C.K. Prahalad

265 Wanted* ** : Corporate Senility!
*Desperately! ** “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock

266 “It is generally much easier to kill an organization than change it substantially.” —Kevin Kelly, Out of Control

267 “Biters Bit: How Web Giants Are Losing Business as Startups Scurry In
“Biters Bit: How Web Giants Are Losing Business as Startups Scurry In.” —FT, (“The disruptive innovators of the first Silicon Valley boom may be failing to keep up with a new wave of arrivals.”)

268 C.E.O. to C.D.O.

269 (Practical) Implication. “Go for it
(Practical) Implication? “Go for it!” (Why not—alternative is slow death, at best)

270 “Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work

271 “Everything in existence tends to deteriorate”/ “Buy a very large one and just wait” = License (Mandate!) for Radical Approaches

272 Joe J. Jones 1937 – 2007 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

273 Thomas J. Peters 1942-No rush
Thomas J. Peters 1942-No rush ! “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company

274 BIAS. BUILT. TO. LAST. NOT.

275 TP#1*: Netscape! *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?)

276 Built to Last vs Built to Change/Rock the World

277 The last word: There is no “last word.”
277

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

279 “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” —Kevin Kelly, New Rules for the New Economy

280 Q4/ , Source: Barron’s

281 Q4/ ,000 = ? Source: Barron’s

282 Q4/2006 +500,000 = +7,700,000 -7,200,000 Source: Barron’s 0922.07

283 “Five hundred years before Christ in a little town on the far western border of the settled and civilized world, a strange new power was at work. … Athens had entered upon her brief and magnificent flowering of genius which so molded the world of mind and of spirit that our mind and spirit today are different. What was then produced of art and of thought has never been surpassed, and the stamp of it is upon all the art and all the thought of the Western world.” —Edith Hamilton, The Greek Way

284 Headline, Wall Street Journal,
3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed” Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”

285 Great Companies … SET THE AGENDA.* * “disturb the sleep of … ”

286 AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Toyota … Sears … GM … ITT … The Gap … Limited … Wal*Mart … Tesco … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Microsoft … Google … Enron … Schwab … GE … Laker … Southwest … People Express … Ogilvy … Virgin … eBay … Amazon … Sony … Amgen … BMW … CNN … Nike

287 Built to Last v. Built to Flip “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.” “Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.” Fast Company

288 Built to Last vs Built for Impact “But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

289 “The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity— has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” —Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

290 BUILT TO … DETERIORATE! “When it comes to investing, I’m old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. There’s only one problem. When I checked the drawer recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy. Today, it no longer makes sense.”—Charles Stein/ “Investment Strategies Must Shift with Realities”/Boston Globe/ A sample of Stein’s “Blue Chip-turned-clunker” examples: Fannie Mae (featured in Collins’ Good to Great). Coke. (“Clunker,” make that “Stinker.”) Merck. (The mightiest fall—stock down 63 percent since 2000; tumble preceded Vioxx) Uh … Microsoft. (“Microsoft’s stock price is no higher today than it was in 1998.”) “It is not clear there is such a thing as a ‘Blue Chip,’” Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. “Kravetz’s point is a serious one,” Stein continues. “Greatness is not permanent. … The process of creative destruction isn’t new. But with the world moving ever faster, and with competition on steroids, the quaint notion of buying and holding is hopelessly out of step.”

291 Warren Bennis & Patricia Ward Biederman/ Organizing Genius: Great Groups Don’t Last Very Long!

292 Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F. A
Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

293 “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003

294 Language! Language! Language! Language! Language! Language!
294

295 “In-sane-ly-great” 295

296 “Radically Thrilling.”
Radically Thrilling Language! “Radically Thrilling.” —BMW Z4 (ad) 296

297 “wow” 297

298 ! 298

299 “Astonish me!” (SD). “Build something great!” (HY). “Make it immortal!” (DO) “Insanely great” (SJ)

300 EXCELLENCE. CIRCA 1982.

301 Excellence1982: The Bedrock “Eight Basics”
1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

302 3. Autonomy and Entrepreneurship 4. Productivity Through People
Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

303 *In Search of Excellence
“Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

304 The older I get the less boring the “basics” become!

305 ExIn*: /Forbes.com DJIA: $10,000 yields $85,000 EI: $10,000 yields $140, *Forbes/Excellence Index /Basket of 32 publicly traded stocks

306 What is In Search of Excellence all about: People. Emotion. Engagement
What is In Search of Excellence all about: People. Emotion. Engagement. Exuberance. Action-Execution. Empowerment. Independence. Initiative. Imagination. Great Stories. Incredible Adventures. Trust. Caring. Fun. Joy. Customer-centrism. Profit. Growth. “Brand You.” “Dramatic Differences.” Experiences that Make You “Gasp.” Excellence. Always.

307 NOTE.: drop the “the companies in in search of excellence failed”—utter rubbish. They’ve waaaay outperformed the market.

308 Importance of Success Factors by Various “Gurus”/(Unreliable) Estimates by Tom Peters Strategy Systems People Passion Porter % Drucker % Bennis % Peters %

309 DRUCKER’S GREAT CONTRIBUTION: management per se as a/the principal determinant of institutional effectiveness

310 EXCELLENCE. GAMECHANGER. (MAYBE.)

311 Hardball: Are You Playing to Play or Playing to Win
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 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0.

312 EXCELLENCE. TOM 312

313 Excellence2005: The Bedrock Baker’s Dozen
1. A Bias For Action Is Job One! (Construct a Discipline/Culture of EXECUTION!) 2. DECENTRALIZATION! ACCOUNTABILITY! (Tom’s “Top Two”, ) 3. Fail. Forward. Fast. (“Reward Excellent Failures, Punish Mediocre Successes.”) 4. “Metabolic Management” Matters! (Hustle! Adapt! EAT CHANGE! Win the “O.O.D.A. Loop” War—Confuse Your Competitors!) 5. INNOVATE or Die. (“Game-changers” or Bust! Lead the Customer! Just Shout “NO” to Imitation!) 6. A Damn Good Product. (Pursue “Dramatic Difference.”) 7. A Damn Cool Product. (Design Rules!) 8. Ride the Value Added Curve to the Sky! (Sell “GamechangerSolutions”; Provide “Scintillating Experiences”; Become a “Dream Merchant”; Strive to Be a “Lovemark.”) 9. Relentlessly Pursue the “Big Two” Markets. (WOMEN Buy Everything BOOMERS & GEEZERS Have All the Money!) 10. Best “Talent”/Roster Wins! (HR Rules! Everyone a Leader! Women Lead Best! “Weird” Matters Most! A Workplace to Brag About! Educate for Creativity!) 11. Wanted/Demanded: Radical Technology Strategies! (“Incrementalism” Is for Wimps!) 12. Hard Is Soft! Soft Is Hard! (People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST! Good Citizenship.) 13. Accept No Less Than EXCELLENCE! (Excellence, Pursuit thereof, Is the #1 Thing That Vaults Us Out of Bed in the Morning)

314 Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective 1
Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.” 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of the power of a Good Story (Brand Power).

315 Everything You Need to Know about “Strategy”
1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue Audacious Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others would call “problems”? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings … and does it have 50 percent (or at least one-third) Women Members? 4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors of In Search of Excellence? Are your O.O.D.A. loops shorter than the next guy’s? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto? 7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”? 8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal? 10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world? 11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto? 13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

316 Ten Good Reasons to “Get Up in the Morning”
1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, creativity, entrepreneurial behavior. (Or else.) 3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst. 4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make Passion your Passion! (Hint: Passion makes the world go ‘round.) 5. Be a champion for: Women Roar! Women Rule! 6. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness. 7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some passing thought to Quality.) 8. Ensure that the historically neglected “intangibles” are the prime basis for individual and enterprise success. 9. Support Globalization as the best—if indeed messy—path to maximum human freedom, security and welfare. 10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”

317 This I Believe: Tom’s Super-TIB25 1. TECHNICOLOR Times. 2. Passion
This I Believe: Tom’s Super-TIB TECHNICOLOR Times. 2. Passion! Enthusiasm! Energy! 3. Action/R.F.A./O.O.D.A. Speed. 4. Screw-ups. BIG SCREW-Ups! 5. Mess! Improv! 6. Revolution! Re-imagine! 7. INNOVATE OR DIE! 8. Decentralize! 9. Bulk is BULL! (Mergers don’t work. FOCUS Does!) 10 “Different” > “Better” 11. eALL/Power Tools for Power Strategies! 12. Forgetting/Destruction. 13. Hot Language Matters! 14. WOW!/WOW Projects. 15. VA Bedrock: The “PSF.” (Professional Service Firm.) 16. Daring. 17. Talent Time! Leaders “Do” People! 18. Talent+/Diversity. 19. Talent++/Women Rule! 20. “Brand You” Universe. 21. Design! 22. Gasp-worthy Experiences/Lovemarks. 23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness. 24. Grace. 25. EXCELLENCE!

318 EXCELLENCE. TOM 318

319 Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S. A. V
Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) aCCEPT NO LESS THAN EXCELLENCE/PURSUE Wow! enjoy It While It Lasts 319

320 pursue a mission that rocks the world (Pharmaceuticals, Moldy basements) Hire awesome/weird People for 100% of jobs (Resilient, Passionate) (Wegmans) give ’em lots of room to experiment, fail, grow make “respect” “decency” “integrity” our watchwords Leaders “Serve.” (“Servant”/“Host” Leadership) try a Lot of Stuff, fast tempo (S.A.V./Screw Around Vigorously, R.F.A./Ready. Fire. Aim.) Emphasize revenue (Organic growth, Sales/“Top line” rules) have fun/exude joy demand excellence/Make accountability instinctive (“Insane” standards for our mates’ and community’s sake) It’s all about Women! (Market, Leadership, Wealth, “Womenomics”) never, never forget the “it” (It’s the PRODUCT, Stupid.) 25! (Go, Howard!) (Conrad says, “Don’t forget the shower curtain.) be “of [‘gaspworthy’] service” (Cirque du Soleil is our standard—”even” in finance.) (My customer is my partner.) (Remember “She”; remember “Me” … the latter = Old & $$$. ) Create effective/imaginative/minimalist infrastructure (K.I.S.S./Keep It Simple, Stupid; RED BUTTON on the terminal) re-imagine as “routine” (Forget > Remember) enjoy It While It Lasts 320

321 EXCELLENCE. CAUSES. ADVERSARIES.

322 Causes/1966-2006 Women/Market opportunity
Women/Leaders (right for the times) Design/Design-as-soul Wow! (Hot language) Weird! Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1) Brand You (or else) PSF = Bedrock (add value or bust—every group must demonstrate economic viability) PSF + Brand You + WOW Projects = New Biz Logic Sales/+R > -C (increasing revenue more important than cutting cost) HealthCare/Wellness-Safety-H5N1 Brand = Talent (best roster wins) New VA Ladder/Products-Services-SOLUTIONS- EXPERIENCES-DREAMKETING (Dream Marketing)- LOVEMARK Different > > Better Boomers & Geezers/marketing to new “mega-segment”

323 Adversaries B-schools (crappy at soft skills, implementation, leadership) Strategy-is-all By-the-numbers management Dis-passionate management Focus groups Intuition discounted Leading as an intellectual task Leading without passion Cool language in Hot times Dilbert (accepting cubicle slavery) Bigness per se (severe scale limitations—even at Microsoft) White guys! (not really, but enough already) 18-44 emphasis in marketing (geezers > youth for foreseeable future) -Cost > +Revenue (cost cutting more important than organic revenue growth) CI (continuous improvement in an age of discontinuous world) LESS THAN THE NO-HOLDS-BARRED PURSUIT OF EXCELLENCE

324 Them-Us

325 “Them” “Us” Strategy EXECUTION Planning Action Marketing Selling/Sales Markets Customers Customers Clients Micro-segmentation Big Stuff (Women, Boomers) Cost minimization Revenue maximization Synergy/“Efficiencies” Decentralization “Strategic” supplier Pioneering supplier Process Project Effectiveness Excellence Men Women Leadership Management + Leadership Standardization Exceptionalism (53 = 53) Big clients COOL clients Prestigious Board INTERESTING Board

326 “Them” “Us” Big Mid-size Growth by merger Organic growth Buy market share Create NEW markets Efficient, streamlined Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunity Fearful of losing Aggressive pursuit of winning Plan Prototype Careful evaluation Another prototype Revised plan Another prototype People/Employees Talent Effective HR department Rockin’ Talent Development Center of Excellence Benchmark against the Benchmark against the “best”-“industry leader” “coolest”

327 “Them” “Us” Benchmark “Future”mark Orderly career progression “Up or Out” (PDQ) Head Heart IQ EQ “Professional” Passionate Stoic, humble leaders Noisy, emotional “characters” in charge Hire for Resume Hire for intangibles Measured-thoughtful Relentless, pig-headed approach determination Teamwork comes first Teamwork and disruptive individuals equal billing Listen to customers Lead customers Customer “involvement” Intimate-Seamless customer inter-twining

328 “Them” “Us” MBM (Management MBWA by memo) MBA MFA Shareholder Value Great people-product rule comes first Work smart Work hard Built to last Built to Rock the World Reward successes Reward (EXCELLENT) failures Quality first! Design 1T Quality first Innovation 1T High-quality Jaw-dropping Experience transaction CVs demo consistent CVs feature Magic Moments performance Good grades Cool stuff Operational excellence World-rocking INNOVATION

329 “Them” “Us” Brand Lovemark Best analysis wins Best STORY wins “Beyond politics” Politics-is-life, the rest is details Outsource Bestsource “Motivate” Send on QUESTS “Motivate” Invite Measured language HOT language Product-Service Gamechanging SOLUTION, Thrilling EXPERIENCE, DREAM come true, LOVEMARK Pastel Technicolor Better Different “Mission success” “Mission EXCELLENCE” Very good EXCELLENCE. ALWAYS.

330 TP’s “23Passions” by date: 1942-2006

331 Tom’s 23 Passions B>A. (R. F. A. ) (
Tom’s 23 Passions B>A* (R.F.A.) (*Behavior drives Attitude) … ’71-’06 Implementation = #1 … ’73-’77 (’06) “Soft is Hard” (“Management Style”) … ’77-’79 (’06) (Org) Structure>Strategy … ’77-’83 (’06) Strategy-Structure+/ “McKinsey 7-S” Model ... ’77-’81 Action>Planning … ’74-’06 Mess = Reality ... ’77-’06 Skunkworks/Skunks (“Offline” Innovation/Innovators) … ’84-’91 MBWA … ’80-’85 (’06) Excellence I … ’79-’84 Mid-size biz is cool … ’84-’89 (’06) Customer service … ’84-’88 Innovation … ’87-’92 Free trade/Hayek … ’90-’92 New Org Models … ’92-’96 PSF … ’92-’06 WOW! (WOW Projects) … ’93-’06 Brand You … ’94-’00 Design … ’94-’06 Women (Markets-Leaders) … ’96-’06 EXCELLENCE II … ’06-?? Healthcare (Quality-Wellness-PatientCentric) … ’06-?? Exuberance-Passion (Soft is Hard) … ’42-’06

332 A Life’s Work 1966: MBWA/Do>Talk 1974: Behavioralism: Do>Talk/IMPLEMENTATION>Strategy 1979: 7S/Emphasis on “Soft Ss” (“Hard is soft. Soft is hard.”) 1982: “Beyond strategy” EXCELLENCE “Bias for Action”/“Do it. Fix it. Try it again.” “Close to the Customer” MBWA (as metaphor) “Management Style” 1990: “Innovate or Die” Design Women Brand You WOW! (Passion. Enthusiasm. Energy. Emotion. Technicolor) 2000: “The Work Matters” PSF+BY+WowProjects = V.A. Source #1 Brand “Inside” 2003: Re-imagine. Technicolor. C.D.O. (Chief Destruction Officer) 2007: Excellence! Basics! Action!! MBWA (as metaphor) Reason for Being.

333 Worth. The. hassle.

334 Why I Work/Stuff I Care About. “Hard is soft. Soft is hard
Why I Work/Stuff I Care About *“Hard is soft. Soft is hard.” Social stuff, Emotional stuff = Good stuff = The Right Stuff! *Mess = Normal = Reality. Rationality = Delusional Non-linearity = Life 101. (Embrace it! Design accordingly!) *Failure = Normal/Necessary/Good! “Reward excellent failure. Punish mediocre success.” “Fail faster. Succeed sooner.” “Fail. Forward. Fast.” Fail. Sam Walton Secret #1: Fail. Fast. *Do > Think. Act > Talk. Action bias! RELENTLESS EXPERIMENTATION! R.F.A./Ready. Fire. Aim S.A.V./Screw Around Vigorously. *Decentralization = Holy writ = More independent tries. *Success for Mortals: Indirection. SkunkWorks. End Runs. Parallel Universe. 4F/Find a Fellow Freak Faraway. Demos. Heroes. Stories. *The “Missing 98%”: Implementation-Execution. *Strategic planning, limits thereto. Severe. *Pitiful performance of Huge Companies. Needed: C.D.O./ Chief Destruction Officer. *Severe limits to scale advantage. Mega-mergers = Stupid. *“Built to last.” Why??? Instead: Built to change the world. *People First! People Power! Best “Roster” Wins. HR (should) rule! Leaders “DO” People! Respect-Appreciation Rules! *Freaks for Freaky Times!

335 Why I Work/Stuff I Care About. WOMEN’S WORLD. /WOMENOMICS. #1 MARKET
Why I Work/Stuff I Care About *WOMEN’S WORLD!/WOMENOMICS! #1 MARKET! WEALTH/ALL! LEADERS/BETTER! (Also: Boomers/Geezers/Many/Money.) *Aesthetics! Beauty! Grace! (Design primacy.) *MBWA! (Managing By Wandering Around.) *Basics Rule: Don’t over-complicate. (Product, People, Action …) *Educate for Risk-taking, Creativity, Independence. *B-schools suck. Teach all … except what’s important D-School = Cool. *Healthcare’s Big Three: Quality. Prevention. Wellness. *R>C. (Adding Revenue > Cutting cost.) Help Wanted: C.R.O./ Chief Revenue Officer. *S>M (Selling > Marketing.) SELL! SELL! SELL! SELL! *Free markets work! Free trade works! Rise of India-China = Good thing. Respond with Excellent Performance: Add “insane” amounts of value! Become a “Lovemark”!! *Brand You. Self-reliance!! Mastery !! Liberation!! *Survival = PSF/Professional Service Firm “mindset.” Goal #1: Enable clients to become successful beyond their dreams! *Fun! (“Cool” is Cool.) *Service-obsessed!/Experience-obsessed! (Object: “Raving fans.”) *PASSION-EXUBERANCE-ENTHUSIASM. *“Hot” Language! WOW! Insanely great! *EXCELLENCE. ALWAYS.

336 TOM PETERS. THE “DAMN ITS.”

337 To The Mat: The “5 Damn Its” Women. PSF. Brand you. R.f.a. EXCELLENCE. ALWAYS.

338 M. I. A. Action. Implementation. The Work Itself. R. F. A. Execution
M.I.A. Action! * Implementation! ** The Work Itself! *** *R.F.A. **Execution ***WOW Projects!

339 “Never forget implementation boys
“Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.” —Al McDonald

340 “The first 90% of a project takes 90% of the time
“The first 90% of a project takes 90% of the time. The last 10% takes the other 90% of the time.” —Richard Templar, The Rules of Management

341 TOM PETERS. THE DEAL.

342 Revolution-Transformation. (No long runs on Broadway-Senility
Revolution-Transformation. (No long runs on Broadway-Senility.) “Soft”>“Hard.” (Culture or Bust.) Execution-Action. (Do>Think.) Clean Sheet of Paper. (Web2.0, Transparency, New Org Form—Itinerant Potential Machines.) PSF-Brand You-Wow Projects. Up-Up-Up the VA Ladder. (Gamechanging Solutions-Eyepopping Experiences-Dream Merchants-Lovemarks.) Weird. (Innovation “Easy.”) Energy-Enthusiasm-Relentlessness. Excellence. Always.

343 good words. Bad words.

344 Words that may NOT be used in my presence: “Motivate”

345 “In the end, management doesn’t change culture
“In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

346 Words that may NOT be used in my presence: “Marketing”

347 Sell Sell Sell

348 Words that may NOT be used in my presence: “Motivate” … “Market” … “MBA” … “Plan” (mostly) … “Worker” … “Job” … “Task” … “Exceeds expectations” … “HR” … “Employee evaluation” … “Man” (mostly) … “Shareholder Value”

349 Words that MAY be used in my presence: “Invite” (v
Words that MAY be used in my presence: “Invite” (v. “Motivate”) … “Sell” (v. “Market”) … “People” (we’d like to serve) (v. “Market segment”) … “Client” (v. “Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute” (v. “Plan”) … “Talent” (v. “Worker”) … “Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) … “Wow Project” (v. “Task”) … “Rockin’ (profit-makin’) PSF” (v. “Department”) … “Theater” (v. “Office”) … “Breathtaking Experience” (v. “Transaction” that “Exceeds expectations”) … “Talent Fanatics Inc” (v. “HR”) … “Brand You adventure” (v “Career development”) “Annual Report development session” … (v. “Employee evaluation”) … “Woman” (v. “Man”) …

350 Words that MAY be used in my presence: … “Wow. ” (v
Words that MAY be used in my presence: … “Wow!” (v. “Nice”) … “Bloody-minded” (v. “Committed”) … “Thank you! (v. “____”) … “Attack”/Innovate (v. “defend”/Entrench) … “Great stuff. Great people. ‘Do it’ fanatics.” (v. “shareholder value”) … “EXCELLENCE. ALWAYS.” (v. “Good work”) (v. “shareholder value”)

351 “Radically Thrilling.”
Radically Thrilling Language! “Radically Thrilling.” —BMW Z4 (ad)

352 “In-sane-ly-great”

353 “You do not merely want to be the best of the best
“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia

354 EXCELLENCE. 1982. Hard is soft. Soft is hard.

355 Hard Is Soft Soft Is Hard

356 Hard Is Soft (#s) Soft Is Hard (people)

357 Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships))

358 “The 7-S Model” Strategy Structure Systems Style Skills Staff Super-ordinate goal

359 “The 7-S Model” “Hard Ss” (Strategy, Structure, Systems) “Soft SS” (Style, Skills, Staff, Super-ordinate goal)

360 “The 7-S Model” Strategy Structure Systems Style (Corporate “Culture,” “The way we do things around here”) Skills (“Distinctive Competence/s) Staff (People-Talent) Super-ordinate goal (Vision, Core Values)

361 —Lou Gerstner, Who Says Elephants Can’t Dance
“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance

362 R.O.I.R.

363 Measure #1: R.O.I.R.* *Return On Investment In Relationships

364 Axiom #65: (1) It’s always about relationships
Axiom #65: (1) It’s always about relationships. (2) Sweat the small stuff—and the big stuff will take care of itself.

365 “Soft Skills, Hard Dollars” Source: Headline, BigBuilder, September 2006

366 “A man without a smiling face must not open a shop.” —Chinese Proverb

367 “The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin
“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into being—an entity which is more than the sum of the fish plus the fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what you are doing . The man with this pickled fish has set down one truth and recorded in his experience many lies. The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

368 EXCELLENCE. Always. Respect.

369 Sara Lawrence-Lightfoot, Respect
“It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say.” Sara Lawrence-Lightfoot, Respect

370 *quote within a quote from diary of a Confederate soldier
“The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’*” *quote within a quote from diary of a Confederate soldier

371 “It’s not people who aren’t credit-worthy
“It’s not people who aren’t credit-worthy. It’s banks that aren’t people worthy.” Muhammad Yunus

372 “The deepest human need is the need to be appreciated.” William James

373 “Don’t belittle!” —OD Consultant

374 “Be kind, for everyone you meet is fighting a great battle
“Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria

375 “Ph.D. in leadership. Short course: Make a short list of all things done to you that you abhorred. Don’t do them to others. Ever. Make another list of things done to you that you loved. Do them to others. Always.” — Dee Hock

376 “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” —Dale Carnegie

377 R.O.I.R. Rules!

378 “He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life. Because his sole concern had been my welfare and the success of my business.” —Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)

379 anything.” —Carolyn Marland/Managing Director/Guardian Group
“If you don’t listen, you don’t sell anything.” —Carolyn Marland/Managing Director/Guardian Group

380 EXCELLENCE. ASPIRATION. 2006.

381 Why in the World did you go to Siberia? web

382 Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity

383 The Peters Principles: Enthusiasm. Emotion. Excellence. Energy
The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow!

384 Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 384

385 Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others.*** **Excellence. Always. ***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

386 Business: The Ultimate Creative Endeavor.

387 Business: The Ultimate Personal Development-Growth Experience.

388 Business: The Ultimate Transcendent Service Opportunity.

389 “BUSINESS IS ABOUT POWER.” —Joanne Lipman, editor, on Portfolio

390 TP: “BUSINESS IS ABOUT ...”

391 “Make sure your executive team includes top talent in design, engineering and manufacturing, because that’s your only! priority— to build! Cars! People! Want! to buy!. Hot styling sells them and quality keeps them sold.” — Lee Iacocca, Where Have All the Leaders Gone?

392 “enterprises that Matter & change the game … offer solutions & experiences that surprise , amaze, and transform perceptions of what’s possible —and stick like super-glue in customers’ minds.* such offerings are brilliantly conceived and flawlessly delivered by unconventional, creative, hyper-committed, energetic talent from within & outside the organization.” —Tom Peters E.g.: Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jim’s Group, The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wanamaker’s (circa 1880)

393 “To me business isn’t about wearing suits or pleasing stockholders
“To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson

394 “No leader sets out to be a leader per se, but rather to express him- or herself freely and fully. That is leaders have no interest in proving themselves, but an abiding interest in expressing themselves.” —Warren Bennis, On Becoming a Leader

395 EXCELLENCE. ASPIRATION.

396 “Every time we come to a comfort zone, we will find a way out
“Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.” “A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil

397 “Do one thing every day that scares you.” —Eleanor Roosevelt

398 “Strive for Excellence. Ignore success
“Strive for Excellence. Ignore success.” —Bill Young, PR driver (courtesy Andrew Sullivan)

399 all you need to know

400 EXCELLENCE. “the rules.”

401 *In Search of Excellence
“Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

402 The “7Es” Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!

403 Vigorous organizations.
The “Vigor Axiom”: Vigorous schools. Vigorous people. Vigorous organizations. Vigorous competitors. Vigorous economy. Vigorous nation. Vigorous world.

404 Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

405 Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) 405

406 Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) servant leadership 406

407 Cause Space Decency service excellence servant leadership
407

408 Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S. A. V
Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) all “wow” all the time Enjoy It While It Lasts 408

409 Tom’s “Change Rules” Cause. (pissed off. ) Try it. (S. A. V. ) Fail
Tom’s “Change Rules” Cause. (pissed off.) Try it. (S.A.V.) Fail. Forward. Fast. Quests. Demos. Heroes. Stories. Boonies. (Parallel universe.) <12. Just Say No: Normal. Attitude>Ability. Wow. “Insanely great.” Sell! Sell! Sell! Master politics!

410 pursue a mission that rocks the world (Pharmaceuticals, Moldy basements) Hire awesome/weird People for 100% of jobs (Resilient, Passionate) (Wegmans) (Women RULE!) give ’em lots of room to experiment, fail, grow make “respect” “decency” “integrity” our watchwords try a Lot of Stuff, fast tempo (S.A.V./Screw Around Vigorously, R.F.A./Ready. Fire. Aim.) Emphasize revenue (Organic growth, Sales/“Top line” rules) have fun/exude joy demand excellence/Make accountability instinctive (“Insane” standards for our mates’ and community’s sake) never, never forget the “it” (It’s the PRODUCT, Stupid.) (25!) be “of [‘gaspworthy’] service” (Cirque du Soleil is our standard— “even” in finance.) (My customer is my partner.) (Remember “She”; remember “Me.”) (“Servant”/“Host” Leadership) Have effective/imaginative/minimalist infrastructure (K.I.S.S./Keep It Simple, Stupid) (Systems/No bull: beauty, grace, elegance) re-imagine as “routine” ” enjoy It While It Lasts 410

411 Excellence Is a Universal Striving.
If Not Excellence, What?

412 Source: Anon. (Posted @ tompeters.com by
“Excellence can be obtained if you: ... care more than others think is wise; risk more than others think is safe; dream more than others think is practical; expect more than others think is possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

413 Organizations exist to serve. Period.
Leaders live to serve. Period. Tom Peters/10 September 2007

414 *TP: An “organization” is, in fact and after all
“I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time.

415 Organizations exist to serve. Period.
Leaders live to serve. Period.

416 Organizations exist to serve. Period. Leaders live to serve. Period.
Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain (a 600SF retail space, a 4-person training department, an urban school, a rural school, a city, a nation), create/ must necessarily create organizations which are no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair (We are all entrepreneurs—Muhammad Yunus) of diverse individuals (100% creative Talent—from checkout to lab, from Apple to Wegmans to Jane’s one-person accountancy in Invercargill NZ) is unleashed in passionate pursuit of jointly perceived soaring purpose (= win a Nobel peace prize like Yunus, or at least do something worthy of bragging about 25 years from now to your grandkids) and personal and community and client service Excellence.

417 Organizations exist to serve. Period. Leaders live to serve. Period.
Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/ must necessarily create organizations which are … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed … In passionate pursuit of jointly perceived soaring purpose and personal and community and client service Excellence.

418 … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

419 Such Talent unbound pursue Quests (rapidly and relentlessly experimenting and failing and trying
again) which surprise and surpass and redefine the expectations of the individual and the servant leader alike. The collective “products” of these Quests offer the best chance of achieving rapid organizational and individual adaptation to fast-transforming environments, and provide the nutrition for continuing (and sometimes dramatic) re-imaginings which re-draw the boundaries of industries and communities and human achievement and the very conception of what is possible.

420 In turn, such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement, will automatically create cadres of imaginative and inspiring and determined servant leaders who stick around to take the organization to another level, and then another—or, equally or more important, leave to spread the virus of Freedom-Creativity-Excellence-Transforming Purpose by pathfinding new streets, highways and alleyways which vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth.

421 … such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement … vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth.

422 Clever “human resources” programs
that take into account the “new realities” concerning Gen X or Chinese competition or Web 2.0 are not the basis for creating “competitive advantage through an excellent workforce.” The “great secret” to “people excellence” is “treat people with manifest respect and appreciation and trust, and give them a chance to express the best in themselves and dramatically broaden their horizons”—and “the rest” will take care of itself for Gen A or Gen B or Gen X or Gen Boomer.

423 The Dream Manager —Matthew Kelly E. g
The Dream Manager —Matthew Kelly E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.” 423

424 Servant Leadership —Robert Greenleaf The Human Side of Enterprise
—Douglas McGregor The Manager’s Book of Decencies: How Small gestures Build Great Companies. —Steve Harrison Hostmanship: The Art of Making People Feel Welcome —Jan Gunnarsson and Olle Blohm The SPEED of Trust: The One Thing that Changes Everything —Stephen M.R. Covey and Rebecca Merrill The Dream Manager —Matthew Kelly The Customer Comes Second: Put Your People First and Watch ’em Kick Butt —Hal Rosenbluth and Diane McFerrin Peters

425 "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with and show respect to all worthy individuals with whom we come in contact or have an opportunity to reach in other ways. We must apply that to nations and to other businesses. "We in IBM must not confine our thoughts just to IBM. We must extend our cooperation to all other businesses whether we do business with them or not. We are one cog in the industrial wheel. "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome times, but the love of these various things of which I have spoken and of the people in whom we are interested is going to be the great force which will make us all appreciate the spiritual values which constitute the only solid foundation on which we can build." —Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, IBM Country Club, Endicott, NY, October 30, 1941

426 Wherefore The Impact Of Superior Management Practice on Increased Human Welfare and the Pursuit of Happiness* and Excellence? Tom Peters/16 September 2007

427 Wherefore The Impact Of Superior Management Practice on Increased Human Welfare and the Pursuit of Happiness* and Excellence?

428 *“To Aristotle eudaimonia was what the good
Wherefore The Impact Of Superior Management Practice on Increased Human Welfare and the Pursuit of Happiness* and Excellence? *“To Aristotle eudaimonia was what the good life was all about. The complex Greek word is usually translated as ‘happiness,’ but Aristotle means something else. Happiness to Aristotle is not a state but an activity. It is not lying on a beach with a glass of wine and a book, nor having wanton sex with the person of your dreams. Eudaimonia is better translated as ‘flourishing,’ or doing your best with what you are best at.” —Charles Handy, Myself and More Important Matters

429 Given that most adults work-“live” for
most of their adult life in organizations (or, as a solo practitioner, within a web of organizations) … Given that Effective Management is the principal mechanism through which Organizational Effectiveness is realized … Then it follows that “effective” management is the engine of human growth (micro-level) and economic well-being (macro-level) …

430 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Effective enterprise always, but today (the creative age) more than ever, is a product of maximizing human freedom to create and serve. Organizations exist to serve. Period. Leaders exist to serve. Period. Respond to customers’ desires with products and services and experiences (think Cirque du Soleil) that are “gaspworthy,” and a lot of “other issues” will mostly take care of themselves. BMW says “radically thrilling” sells cars—and I agree, for the country store in Vermont as well … and for the IS process devised by the purchasing professional in a 24-person office in Omaha. Only in touch (MBWA—Managing By Wandering Around) leaders inspire commitment from their talent.

431 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Only “in love” leaders (outrageously excited by their product and service) inspire commitment from their talent. Want “all this” (see above)? It’s the people, stupid! Maximum human freedom and betterment and growth is achieved under conditions of free markets and free people, governed by law and acknowledging the sanctity of contracts (Hayek), which are in turn the product of education and infrastructure which maximizes the likelihood of and support for entrepreneurial people and entrepreneurial organizations. Entrepreneurs with the freedom and support to start and nurture new businesses are the cornerstone of the economy. (Said entrepreneurs replace, like cell replacement, the current ruling firms—or at the very least wake those firms up to the possibility of rebirth.)

432 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Entrepreneurs with Individual Independence of Mind/Entrepreneurial Spirit = “Brand You” = Maximized organizational and social effectiveness. Education that unleashes human creativity and the entrepreneurial instinct maximizes longterm economic growth and realized human potential.

433 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Free Markets maximize Entrepreneurial Opportunities which in turn Maximize Growth. Progress, as commonly defined and through an American lens: Declaration of Independence (all equal, pursuit of happiness); Bill of Rights (e.g., free speech); freedom of commerce; Entrepreneurial Opportunity; effective, efficient, minimalist Infrastructure (transportation, financial stability, available financing, access to financing, transparency); laws > men; enforceability of contracts = FREEDOM TO SUCCEED. “Agile organizations” win—in markets and in wars. Agile organizations are the product of people who are committed and have the freedom to act and create—from the checkout to the lab. The new tech-tools offer astounding “power to the people”—this is a wonderful expansion of human freedom and an incredible opportunity for organizations that become fullscale players in the New Regime.

434 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: The new tech-tools offer astounding “power to the people”—this is a wonderful expansion of human freedom and an incredible opportunity for organizations that become fullscale players in the New Regime. Cherish the mid-size organizations—they add incredible value directly and as a spur to others. (Think Germany’s Mittelstand—the basis for that nations global leadership as an exporter despite high wages and encompassing social benefits.)

435 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Good service + Good product + Good people + Good Citizenship + Room to Experiment and Fail and Grow + Commitment to Excellence = Maximum Profit + Economic Growth + Realized Human Potential. Bureaucracy kills initiative kills entrepreneurship kills productivity kills businesses kills economies kills people kills nations. Dull schools make for dull people make for dull businesses make for dull economies make for dull (and impoverished) nations.

436 EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE
AND HUMAN FREEDOM AND GROWTH: Good service + Good product + Good people + Good Citizenship + Room to Experiment and Fail and Grow + Commitment to Excellence = Maximum Profit + Economic Growth + Realized Human Potential.

437 Decency (relative to all constituencies) is
EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE AND HUMAN FREEDOM AND GROWTH: Decency (relative to all constituencies) is the Bedrock of Enterprise Effectiveness and Growth. Only the full utilization of everyone’s talent enables constant re-imagining. (We call this “diversity,” and claim it is “the right thing.” True, but research shows that diversity alone breeds creative activity.) Women are “the majority”—the pursuit of Excellence is to a significant degree a matter of appreciating women’s increasingly dominating position in the world economy—from finance London-style to micro-lending Yunus-style.

438 The “Freedom side of the coin”:
Choice. Liberty. Creativity. Entrepreneurship. Health. Wealth.

439 Trust

440 Trust (1 of 2) “The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.” —Grant, Jean Edward Smith “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say.” —Sara Lawrence-Lightfoot, Respect “I wasn’t bowled over by [David Boies] intelligence. … What impressed me was that when he asked a question, he waited for an answer. He not only listened, he made me feel like I was the only person in the room.” —Lawyer Kevin _____, on his first, inadvertent meeting with David Boies, from Marshall Goldsmith, “The One Skill That Separates,” Fast Company

441 “The deepest human need is the need to be appreciated.”
Trust (2 of 2) “Either love your players or get out of coaching.” —Bobby Dodd, legendary football coach (Vince Lombardi reportedly said, “I do not need to like my players, but I must love them.” Couldn’t confirm those exact words from Google, but did find many examples of Lombardi on loving one’s players.) “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke “The deepest human need is the need to be appreciated.” —William James “We behaved as if we were guests in their house. We treated them not as a defeated people, but as allies. Our success became their success.” —“How One Soldier Brought Democracy to Iraq: The Mayor of Ar Rutbah” (MAJ James Gavrilis/USA Special Forces) “No matter what the situation, [the excellent manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know

442 The Case for Internal Focus: “Brand inside” Rules
The Case for Internal Focus: “Brand inside” Rules! Tom Peters/16 September 2007

443 An “organization” is, in fact, a/the “house” in which most of us “live” most of the time.
443

444 I have been among those leading the charge, for over a quarter century, to reduce corporate myopia by emphasizing external focus—e.g., on the customer and the market. I wouldn’t revise a word. Still, an ancient incident sticks in my mind. I did a video of case studies in Excellence in the mid-1980s. A couple of pieces focused on customer service, and a couple emphasized superb “people programs.” The distributor, out to make a buck (not all bad), would customize the film, editing out a case or two, upon request. There were, no surprise, few such requests. But one does stick in my mind, and since I heard about it second hand I will not confirm the corporation by name. I will report that it was a major, at the time, airline. The company ordered a ton of our films—bravo! But … they kept all the “customer service stuff,” and insisted that we excise all the “people stuff.”* (*The airline is now defunct—not by takeover but by bankruptcy and disappearance.) All of which is to say the obvious: There is no great “external focus” unless the bedrock great “internal focus” is in place. This “obvious” issue reared its head recently … 444

445 Isn’t: A (externally focused) “War for Talent “competing” “against” others for the same people Is: A competition “against” myself to create the most amazing workplace imaginable (see IBP) and define “different” kinds of people we’d love to have aboard (e.g., Anita R, Planetree) 445

446 Fact is, and I’m not happy about this, I got into a bit of a verbal tussle with my client over some “word issues.” It was a meeting of HR execs, and the topic was the, yes, the “war for talent.” Now I’ve used the term—and God only knows I believe that in this age of “intellectual capital” top talent is arguably more important than ever. (Whoops, I actually think that’s 86% bullshit; top talent has always been the difference—e.g., the quality of the sea captains in the Royal (British) Navy, circa 18th and 19th century, comes quickly to mind.) But I digress. The point is that the discussion at the meeting in question was warfare-ish to a significant degree—how to quickly nab the best people, etc. I doubtless exaggerate, but to stick with the ancient Navy theme, it was like building tools to create the best Press Gangs for “recruiting” sailors from the pubs of Liverpool in Well, I think that’s all (98%) wrong. As I write in the slide, I contend that the bedrock of finding and keeping and co-creating with great folks is not about clever tools to induce prospective “thems” to “shop [live] with us,” but a 99% internal effort to create such an exciting, spirited, entrepreneurial, diverse, humane “professional home” that people will be lining up by the gazillions (physically or electronically) to try and get a chance to come and live in our house and become what they’d never imagined they could become! I.e., it’s not an externally directed “war to snatch talent from the other guy” by being more aggressive than the competition—but an internally directed competition against ourselves (and our outrageously strong beliefs about people) in which we aim to create an unimaginably attractive workplace. Think Apple, BMW, Cirque du Soleil, Wegmans. And back to the Royal Navy, the Brits built a model of Excellence that had no parallels in its sphere in human history—it was a model about what could be that had never been before, and it was “the other guys” who were forced into the externally aimed “competitive,” inferior, reactive, copyist mode. 446

447 What’s your company’s … EVP/ IBP
What’s your company’s … EVP/ IBP?* *Employee Value Proposition (Ed Michaels et al., McKinsey); IBP/Internal Brand Promise (TP)

448 EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, TP

449 To translate this point into practice, for better or for worse, a few years ago I started talking about what I called “BRAND INSIDE.” The idea is simple (to articulate): To make money (or serve any constituency) one needs an external “brand perception” (we overuse the word today—but the idea is unassailable and it is based as much on “perception” as on “substance”); to create and maintain said external excellence (Brand Outside) one needs, and needs before the fact, excellent & distinct innards—enter “the way we do things around here” (circa 1970), “corporate culture” (circa 1980) and, I now propose, “Brand Inside” (circa 2000). My old McKinsey pal, Ed Michaels, spent five years on the topic of attracting the best Talent and part of it was what he called the EVP/Employee Value Proposition. I am 100% happy with that idea, but chose to add a carbon copy alternative that picked up on my Brand Inside idea—I called Ed’s thing IBP/Internal Brand Promise. Between the two of us, you’ll see a list of the sorts of elements that might constitute a robust EVP-IBP. 449

450 “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance

451 Lou Gerstner and I overlapped a bit at McKinsey
Lou Gerstner and I overlapped a bit at McKinsey. (He was very senior, about to leave to run most of American Express; I was junior, working on the amorphous thing that became In Search of Excellence). He was not my friend! He was the Prime Mover of the “strategy-is-everything” crowd—and I was the kid who didn’t buy the act. And he, vociferously, didn’t buy my act. Lou went on to transform IBM, the most extraordinary BigCo transformation I’ve witnessed—much more profound than Jack Welch’s parallel act at GE. As the prior slide suggests, in his autobiography no less, he apparently came to see the importance of “the Brand Inside stuff.” I’m not boasting, though I am chortling. Hey, he’s the guy with the billion$$$ bank account and I’m not—though I do handily out-Google him, which along with $5 will get you a “venti” ice coffee at S’bucks. Brand Inside rules! 451

452 Brand Inside: Core Mechanism: PSF (Professional Service Firm “model”/The Organizing Principle) + Brand You (“Distinct” or “Extinct”/The Talent) + Wow! Projects (“Different” vs “Better”/The Work)

453 Big Idea/“Meta”-Idea/Premier “Engine of Century21 Value Added” (1) The Talent: “Best Roster” of Entrepreneurial-minded Brand Yous. (2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects

454 PSF (Professional Service Firm) + BY (Brand You) + WP (WOW Projects) + DD (Dramatic Difference) + E (Excellence) = UVA (Unassailable Value-Added)

455 I’ve in fact written tens of thousands of words on the Brand Inside topic (including a 3-book set in 1999), but the nub of it is the structural idea that the innards of the Firm that exploits intellectual capital is independent-minded people (Brand You/s), extraordinary work product (Wow Projects) and a “professional” structure which harnesses said intellectual capital (the “PSF”/Professional Service Firm). The prior few slides are the barest of a bare-bones summary. 455

456 Diane McFerrin Peters* (*no relation)
The Customer Comes Second: Put Your People First and Watch ’em Kick Butt —Hal Rosenbluth and Diane McFerrin Peters* (*no relation)

457 “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX

458 The Dream Manager —Matthew Kelly E. g
The Dream Manager —Matthew Kelly E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.” 458

459 Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

460 Leaders’ “Mt Everest Test” “free to do his or her absolute best” … “allow its members to discover their greatness.”

461 Leaders-Teachers Do Not “Transform People”
Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-leaders) had never dreamed existed —and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!

462 All of theses case are clearcut examples of “Brand Inside first”!
Hal Rosenbluth took a small family-run travel agency and turned it into a progressive, multi-billion giant, which he recently sold to American Express. The title of his book about Rosenbluth International, The Customer Comes Second, reveals a/the key to his extraordinary success. Likewise Dave Lineger successfully (!!!) re-invented real estate practice with RE/MAX. The (novel) idea was to free the individual agent’s entrepreneurial spirit—to turn her or him into a “life success.” Lineger was clear, like Hal, that the home buyer came second—and would only truly come first if the agent was “more first” (my ugly term, not Dave’s). Matthew Kelly’s wonderful Dream Manager “simply” argues that we all have dreams; and that the role of the company’s leadership is to help people to achieve those dreams—whether they are company related dreams or not, people chasing dreams will be more engaged and self-motivated on the from the janitorial staff to the lab bench. Warren Bennis and Patricia ward Biederman, with “free to do his or her absolute best,” capture the same (BIG) idea in their book about what they call Great Groups —groups that have literally changed the world. And my halting effort on the slide immediately preceding this one is extracted from my “Leadership 50” list—it is in fact principle #1, Leaders “engage in a mutual discovery process.” (The title of the slide, not so incidentally, asserts that leaders do not “transform” people—I’m wild eyed on this, as I suspect Matthew Kelly would be; to the extent that they do, people transform themselves—the leader is importantly but merely a spur. All of theses case are clearcut examples of “Brand Inside first”!

463 Little shop in LAX: They felt they knew her personally
463

464 The Manager’s Book of Decencies: How Small gestures Build Great Companies —Steve Harrison, Adecco
Servant Leadership —Robert Greenleaf One: The Art and Practice of Conscious Leadership —Lance Secretan, founder of Manpower, Inc. (“What would happen if we looked at a customer and saw the face of God in them?”)

465 “What would happen if we looked at a customer and saw the face of God in them? To most people it sounds like a lofty idea. But if you see the face of God in a flower, why wouldn’t you see it in the face of a customer? If we treated customers and honored the God within them—if we loved them—we would not need a ‘quality program.’” —Lance Secretan, founder of Manpower, Inc., and most recently author of One: The Art and Practice of Conscious Leadership

466 a great battle.” —Philo of Alexandria)
Shortly after Anita Roddick’s (Body Shop) tragic death at age 64, I was in a Body Shop at LAX. Anita had visited briefly some few years before. When I expressed my sorrow to the employee, I half expected the young-ish woman to ask, “Who’s Anita Roddick?” I should have known better. Though her personal contact with AR had lasted but seconds or, at most, a couple of minutes, she responded as if Anita were an intimate best pal. Anita was exactly that human—she had that effect on me. (I’m not boasting—it’s just that I miss my friend, who passed away less than a week before I wrote this.) That, I contend is another classic “Brand Inside first” story! As to the three books listed on the next slide—Wow! Each is a classic, classic in the making, about workplaces that honor what is deeply human in our “workers.” “Decencies” and “servant” (leader) are powerful, nay, transforming, concepts. (As for “face of God” in the customer, well that may be a little too much for some of us—e.g., me, I think—but if you treat each human you encounter with the incredible respect they are due, that’s pretty much the same thing, I’d judge. It reminds me in a way, of this challenging statement: “Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria)

467 An “organization” is, in fact, a/the “house” in which most of us “live” most of the time.
467

468 I believe this.

469 10%: Recruiting skills 90%: attractive (literally) “culture”

470 No: “Outwit” your competitors Yes: a “Culture”- Infrastructure that is unique (JG)

471 “You do not merely want to be the best of the best
“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia 471

472 “If you don’t like change, you’re going to like irrelevance even less
“If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, retired Chief of Staff. U. S. Army

473 It’s not about clever recruiting devices (though I’m in favor of them as “aids.”). And business in general is not about “outwitting” the competitor—that is a temporary state at best. Success with Market #1 (our people) and Market #2 (customers) is a function of our culture-aspirations of Excellence.

474 TP: I “benchmark” against myself
TP: I “benchmark” against myself!* *I don’t compete with GEN Powell, I compete with me! 474

475 “Parcells thought that Taylor’s size and speed were closer to the beginning than the end of the explanation. [The difference was] Taylor’s peculiar energy and mind: relentless, manic, with grandiose ambitions and private standards of performance. Parcells believed that even in the NFL a lot of players were more concerned with seeming to want to win than with actual winning, and that many of them did not know the difference. What they wanted, deep down, was to keep their jobs, make their money, and go home. Lawrence Taylor wanted to win. He expected more of himself on the field than any coach would dare to ask of any player.” —Michael Lewis, The Blind Side

476 Not a “do gooder,” but a fierce competitor who lives by the Robert Francis Kennedy dogma, "Some men see things as they are and say why. I dream things that never were and say why not." 476

477 Brand Inside rules!! Wow project front and center!!
George W. Bush effectively discards General Powell in 2004. Suddenly I have a formidable new competitor on the speaking circuit. Wrong. Lucky me: My speakers’ bureau has in fact just gotten much more attractive with GEN/Secretary Powell in the portfolio. As for me, I can’t mimic a Secretary of State. But I can redouble my “competitive” effort; I can do what I love most—compete against myself (as an actor, athlete, dancer, musician or Lawrence Taylor does/did) to become more than I dreamed of becoming—yup, I’m one of those career Dream Chasers—and, hackneyed as it may sound, the journey is indeed more important than the arriving, which I’ll never do in any event. Sure I Google myself against my peers, and worry about my backlog—but to play in the A game, and try to do the Jerry Garcia thing (“only ones who do what we do”) is all about brutal and exhilarating competition with myself. As I’ve said to many, all I have (professionally) is the speech as I give it; for that hour, or eight, the speech and each member of an audience of 5 or 5,000 are my life! I live only to help them remember their Dreams and find a way to pursue them. Brand Inside rules!! Wow project front and center!!

478 Axiom: We have met the enemy and he is us
Axiom: We have met the enemy and he is us. Axiom: The adaptive capabilities of big corporations taken as a whole is problematic [read: pathetic]. Antidote: The answer is 75% internal. To sustain/win, we must first and foremost and in perpetuity beat back the forces of darkness—size and inertia and fear and timidity and over-complexity.

479 On NELSON: “[other] admirals more frightened of losing than anxious to win”

480 Forget the “external focus” crap
Forget the “external focus” crap. My only serious competition is internal. Me.

481 Forget the “external focus” crap
Forget the “external focus” crap. My only serious competition is my own conservatism.

482 Forget the “external focus” crap
Forget the “external focus” crap. My most serious impediment is my belief that I can “change the culture.”

483 Excellence “defined”

484 EG: An amazing performance A sunrise, a bloom, a smile
“Thank you” (a gesture, an act of Grace) Extraordinary performance in an odd place (by an “unlikely” person—EWR) (unlikely market—Jim’s Group) X small (Small Giants) X med (Mittelstand) X large Sets the agenda One at bat (Bobby Thompson, Kurt Gibson) A career (Roger Clemens) A novel, a short story, a sentence An Olympian (any) “Loser” with a great story (Rutgers, George Mason) Stuff (any sort) that makes you go “wow “/ “insanely great”/gaspworthy (“The lives of others”)

485 X + 6: The “7Es”

486 Exuberance. Energy. Empathy. Engagement. Empowerment. Execution
Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!

487 Tom Peters’ X25. EXCELLENCE. ALWAYS
Tom Peters’ X25* EXCELLENCE. ALWAYS. World Knowledge Forum Seoul/17 October *In Search of Excellence

488 NOTE: What follows is An 105-slide presentation made in Korea on 17 October It looks at Excellence, the precariousness of Excellence, and a few strategies that might stem the Great March to Mediocrity—the presentation was delivered on the 25th birthday, to the day (I think), of IN SEARCH OF EXCELLENCE.

489 $10,000,000/Day 489

490 Mission impossible? $36B/’98 minus $675M/‘07
490

491 “Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals.” —Financial Times, 0329, on possible Barclays-ABN Amro merger (“When it comes to asking the stock market whether bigger banks are better, the current answer is a resounding ‘no.” —Citigroup analysis, 2006)

492 Slides at … tompeters.com

493 THE LOOOOONG ODDS AGAINST “LASTING EXCELLENCE.”

494 The last word: There is no “last word.”

495 Flat as a Pancake (Or Worse) Wal
Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Yahoo … Home Depot … Microsoft … GE … Citigroup … Time Warner

496 Headline, Wall Street Journal,
3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed”

497 “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

498 Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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