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World Innovation Forum* (*Modesty is everything) EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG* (*Except, of course, what the other presenters.

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Presentation on theme: "World Innovation Forum* (*Modesty is everything) EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG* (*Except, of course, what the other presenters."— Presentation transcript:

1 World Innovation Forum* (*Modesty is everything) EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG* (*Except, of course, what the other presenters have said/will say) Tom Peters/New York/0524.2006

2 In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshed and produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce Source: Orson Welles, as Harry Lime, in The Third Man

3 the cuckoo clock.


5 If you dont like change, youre going to like irrelevance even less. General Eric Shinseki, Chief of Staff. U. S. Army

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

7 The most successful people are those who are good at plan B. James Yorke, mathematician, on chaos theory in The New Scientist

8 We are in a brawl with no rules. Paul Allaire

9 S.A.V.

10 Sams Secret #1!

11 Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec

12 In Toms world, its 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

13 Nelsons secret : [Other] admirals more frightened of losing than anxious to win

14 Inno.0524.06

15 What We Know For Sure About Innovation Big mergers [by & large] dont work Scale is over-rated Strategic planning is the last refuge of scoundrels Focus groups are counter-productive Built to last is a chimera (stupid) Success kills Forgetting is impossible Re-imagine is a charming idea Orderly innovation process is an oxymoronic phrase (= Believed only by morons with ox-like brains) Tipping points are easy to identify … long after they will do you any good Facts arent All information making it to the top is filtered to the point of danger and hilarity Success stories are the illusions of egomaniacs (and gurus) If you believe the cause & effect memoirs of CEOs you should be institutionalized Herd behavior (XYZ is hot) is ubiquitous … and amusing Top teams are Dittoheads Statistically, CEOs have little effect on performance Expert prediction is rarely better than rolling the dice

16 Blitzkrieg?

17 Smashing Conventional Wisdom Blitzkrieg in fact emerged in a rather haphazard way from the experience of the French campaign, whose success surprised the Germans as much as the French. Why otherwise did the High Command try on various occasions, with Hitlers backing, to slow the panzers down? The victory in France* came about partly because the German High Command temporarily lost control of the battle. The decisive moment in this process was Guderians decision to move immediately westward on 14 May, the day after the Meuse crossing, wrenching the whole of the rest of the army along behind him. *messed up traffic, little close air support, random heroics by some small bits of Guderians forces, Guderian not a disciple of the WWI-derived strategy of indirect approach Source: Julian Jackson, The Fall of France

18 False Attributions German citizenry low morale, no appetite for war 3 rd Republic government rather well regarded French Army in good shape, surprisingly well armed, decent strategy (in dozens of simulations, French usually win) Blitzkrieg not used Germans very vulnerable Lousy French intelligence* and luck perhaps determinant (*intelligence information tends to be sifted to reinforce received ideas rather than to overturn them) Many plausible competing hypotheses Source: Julian Jackson, The Fall of France (cf Nassim Nicholas Taleb, Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets.)

19 First-level Scientific Success The smartest guy in the room wins Or …

20 First-level Scientific Success Fanaticism Persistence-Dogged Tenacity Patience (long haul/decades) -Impatience (in a hurry/do it yesterday) Passion Energy Relentlessness (Grant-ian) Enthusiasm Driven (nuts!) (Brutal?) Competitiveness Entrepreneurial Pragmatic (R.F!A.) Scrounge (gets the logistics-infrastructure bit) Master of Politics (internal-external) Tactical Genius Pursuit of (Oceanic) Excellence! High EQ/Skillful in Attracting + Keeping Talent/Magnetic Prolific (ground up more pig brains) Egocentric Sense of History-Destiny Futuristic-In the Moment Mono-dimensional (Work-life balance? Ha!) Exceptionally Intelligent Exceptionally Clever (methodological shortcuts/methodological genius) Luck

21 Containerization* *Malcom McLean

22 Lessons Need-driven A thousand parents Messy Evolutionary Trivial Experimentation trial & ERROR Loooong time for systemic adaptation/s (many innovations) (bill of lading, standard time) Not … Plan-driven The product of Strategic Thinking/Planning The product of focus groups

23 Innovations Secrets Revealed: Get mad. Do something about it. Now.


25 Synonyms Purity Transcendence Virtue Elegance Majesty

26 Synonyms Purity Transcendence Virtue Elegance Majesty Antonym/s Mediocrity

27 Antonym/s Mediocrity

28 Whoops!

29 Franchise Lost! TP: How many of you [600] really crave a new Chevy? NYC/IIR/061205

30 Deutsche Bank Moves Half of Its Back-office Jobs to India/ headline/FT/0327; 500 of 900 Research ; JPMorgan Chase30% back- office by 12.31.07

31 New Economy?! Genentech09, Amgen09 > Merck09 (70K-3/394B-5)

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

33 Pathetic!

34 Forbes100 from 1917 to 1987 : 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of 57 were alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

35 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

36 A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death. Jim Utterback, Mastering the Art of Innovation

37 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

38 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 flourishand 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 apocalypsethe transition from a state of continuity to state of discontinuityhas the same suddenness as the trauma that beset civilization in 1000 A.D. Richard Foster & Sarah Kaplan, Creative Destruction (The McKinsey Quarterly)

39 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

40 F500 Exodus 1970-1990: 4X Source: The Company, John Micklethwait & Adrian Wooldridge (1974-2000: One-half biggest 100 disappear)

41 Exit, Stage Right … CEO departure rate, 1995-2004: +300% Source: Booz Allen Hamilton

42 The Bottleneck Is at the Top of the Bottle Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma: At the top! Gary Hamel/Harvard Business Review

43 When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee, answered: Im sure there are success stories out there, but at this moment I draw a blank. Mark Sirower, The Synergy Trap

44 Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companiesthose that failed to make a leap or, if they did, failed to sustain it often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness. Jim Collins/Time/2004

45 Spinoffs perform better than IPOs … track record, profits … freed from the confines of the parent … more entrepreneurial, more nimble Jerry Knight/Washington Post/08.05

46 Market Share, Anyone? 240 industries: Market-share leader is ROA leader 29% of the time Source: Donald V. Potter, Wall Street Journal

47 Market Share, Anyone? 240 industries: Market- share leader is ROA leader 29% of the time Profit /ROA leaders: aggressively weed out customers who generate low returns Source: Donald V. Potter, Wall Street Journal

48 I dont believe in economies of scale. You dont get better by being bigger. You get worse. Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)

49 Scale? Microsofts Struggle With Scale Headline, FT, 09.2005 Troubling Exits at Microsoft Cover Story, BW, 09.2005 Too Big to Move Fast? Headline, BW, 09.2005

50 While many people big oil finds with big companies, over the years about 80 percent of the oil found in the United States has been brought in by wildcatters such as Mr Findley, says Larry Nation, spokesman for the American Association of Petroleum Geologists.WSJ, Wildcat Producer Sparks Oil Boom in Montana, 0405.2006

51 Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes money, but Im not sure were actually innovating. … Our challenge is to take nanotechnology into the future, to do personalized medicine … Jeff Immelt/2005

52 More than $$$$ #1 R&D spending, last 25 years?

53 GM

54 10,000,000,000,000* *2,000,000,000

55 Bacteria. (Left tail limits.) Productivity of small. Failure rate of Big Mergers. Failure rate of Big Companies. Terrorists. Galbraith vs Hayek.

56 Theres A and then theres A.

57 Inno.0524.06

58 What We Know For Sure About Innovation Big mergers [by & large] dont work Scale is over-rated Strategic planning is the last refuge of scoundrels Focus groups are counter-productive Built to last is a chimera (stupid) Success kills Forgetting is impossible Re-imagine is a charming idea Orderly innovation process is an oxymoronic phrase (= Believed only by morons with ox-like brains) Tipping points are easy to identify … long after they will do you any good Facts arent All information making it to the top is filtered to the point of danger and hilarity Success stories are the illusions of egomaniacs (and gurus) If you believe the cause & effect memoirs of CEOs you should be institutionalized Herd behavior (XYZ is hot) is ubiquitous … and amusing Top teams are Dittoheads Statistically, CEOs have little effect on performance Expert prediction is rarely better than rolling the dice

59 Characteristics of the Also rans* Minimize risk Respect the chain of command Support the boss Make budget *Fortune, on Most Admired Global Corporations

60 Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal- making. What mattered was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasnt turned his back on the old ways. But in his GE, the new imperatives are risk- taking, sophisticated marketing and, above all, innovation.BW/2005

61 [Immelt] is now identifying technologies with which GE will … systematically set out to build entirely new industriesStrategy+Business, Fall 2005

62 Analysts preferred cost cutting … as long as they could see two or three years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now revenue is in because so many got caught, and earnings went to hell. They said, Oh my gosh, you need revenues to grow earnings over time. Well, Duh! Dick Kovacevich, Wells Fargo

63 C R O* *Chief Revenue Officer

64 EXCELLENCE. 4/40.

65 4/40

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

67 Decentralization is not a piece of paper. Its not me. Its either in your heart, or not. Brian Joffe/BIDvest

68 Ex-e- cu-tion!

69 Ninety percent of what we call management consists of making it difficult for people to get things done. – Peter Drucker

70 TP/BW on BigCo Sin #1: too much talk, too little do

71 Execution is the job of the business leader. Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

72 Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability. Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

73 We have a strategic plan. Its called doing things. Herb Kelleher

74 This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think youre finding it when youre drawing maps and studying logs, but you have to drill. Source: The Hunters, by John Masters, Canadian O & G wildcatter

75 You only find oil if you drill wells. Source: The Hunters, by John Masters, Canadian O & G wildcatter

76 Never forget implementation boys. In our work its what I call themissing 98 percent of the client puzzle. Al McDonald

77 Ac-count- a-bil-ity!

78 Realism is the heart of execution. Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

79 GE has set a standard of candor. … There is no puffery. … There isnt an ounce of denial in the place. Kevin Sharer, CEO Amgen, on the GE mystique (Fortune)

80 6:15A.M.

81 ???????? Work Hard > Work Smart

82 This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grants fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character: Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on turning back was not an option for him. Michael Korda, Ulysses Grant

83 He who has the quickest O.O.D.A. Loops * wins! *Observe. Orient. Decide. Act. / Col. John Boyd

84 EXCELLENCE. 4/40.


86 Summary/The SE22: Origins of Sustainable Entrepreneurship

87 SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of todays $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use Strategic Thrust Overlays to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a Be on the COOL Team Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically Noisy (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8.Culturally as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)

88 SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizingtireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Dont overdo pursuit of synergy (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … dont obsess on how it fits the business model. (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/No limits approach to retaining top talent (Virgin, GE, PepsiCo )

89 SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. Bi-polar Top Team, with Unglued Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

90 FLASH! Innovation is easy!

91 The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and s imilar quality. Kjell Nordström and Jonas Ridderstråle, Funky Business

92 To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation. W. Chan Kim & Renée Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/2003

93 American political life [has been] overwhelmed by marketing professionals, consultants and pollsters who, with the flaccid acquiescence of the politicians, have robbed public life of much of its romance and vigor. Joe Klein, Politics Lost

94 Consultants have drained a good deal of the life from our democracy. Specialists in caution, they fear anything they havent tested. Joe Klein, Politics Lost

95 Innovations Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

96 CUSTOMERS: Future- defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. Adrian Slywotzky, Mercer Consultants

97 If you worship at the throne of the voice of the customer, youll get only incremental advances. Joseph Morone, President, Bentley College

98 Suppliers: There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

99 Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!* *Inspired by Hummingbird

100 COMPETITORS: The best swordsman in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot. Mark Twain

101 How do dominant companies lose their position? Two-thirds of the time, they pick the wrong competitor to worry about. Don Listwin, CEO, Openwave Systems/WSJ/06.01.2004 (commenting on Nokia)

102 Dont benchmark, futuremark! Impetus: The future is already here; its just not evenly distributed William Gibson

103 Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director

104 Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky timessee immediately above.) (5) Freaks are the only (ONLY) ones who succeedas in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)

105 Well-behaved women rarely make history. Anita Borg, Institute for Women and Technology

106 A Few Lessons from the Arts Each hired and developed and evaluated in unique ways (23 contributors; 23 unique contributions; 23 pathways; 23 personalities; 23 sets of motivators) Attitude/Enthusiasm/Energy paramount Re-lent-less! Practice is cool (G Leonard/Mastery) Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh The Project rules Emotional language Bit players. No. B.I.W. (everything) Delta events = Delta rosters (incl leader/s)

107 We become who we hang out with!

108 Measure Strangeness/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we benchmark against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board

109 This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? Its like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now takenso its no longer remarkable when you decide to do it. Seth Godin, Fast Company/02.2003

110 Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher (out of 10) on a Weird/ Profound/ Wow/Game- changer Scale?

111 Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things. Roger Enrico, former Chairman, PepsiCo

112 Line Extensions: 86 percent of new products. 62 percent of revenues. 39 percent of profit. Source: Blue Ocean Strategy, Chan Kim and Renée Mauborgne

113 Five MYTHS About Changing Behavior *Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free * Small, gradual changes are always easier to make and sustain *We cant change because our brains become hardwired early in life Source: Fast Company/05.2005

114 Radically Thrilling Language! Radically Thrilling. BMW Z4 (ad)

115 The role of the Director is to create a space where the actor or actress can become more than theyve ever been before, more than theyve dreamed of being. Robert Altman, Oscar acceptance

116 My only goal is to have no goals. The goal, every time, is that film, that very moment. Bernardo Bertolucci

117 Inno.0524.06

118 What We Know For Sure About Innovation Big mergers [by & large] dont work Scale is over-rated Strategic planning is the last refuge of scoundrels Focus groups are counter-productive Built to last is a chimera (stupid) Success kills Forgetting is impossible Re-imagine is a charming idea Orderly innovation process is an oxymoronic phrase (= Believed only by morons with ox-like brains) Tipping points are easy to identify … long after they will do you any good Facts arent All information making it to the top is filtered to the point of danger and hilarity Success stories are the illusions of egomaniacs (and gurus) If you believe the cause & effect memoirs of CEOs you should be institutionalized Herd behavior (XYZ is hot) is ubiquitous … and amusing Top teams are Dittoheads Statistically, CEOs have little effect on performance Expert prediction is rarely better than rolling the dice

119 Parallel universe/Exec Ed v res MBA End run regnant powers/JKC Find done deals-practicing mavericks/Stone- ReGo Bell curves/2016 in 2006 Non-industry benchmarking Everything = Portfolio V.C.s all! Hot language/Wow-Astonish me-Insanely great-immortal-Make something great Lead customers/PW-Embraer Lead suppliers /Top decile R&D Weird alliances Mottos/Paul Arden (Whatever You Think Think the Opposite) Hire freaks/Enough weird people? Weird Boards!!!

120 CEO track record of Innovation (nobody starts at 45!) System/GE-Immelt Strategic thrust overlay Calendar Big Delta easier than Small MBWA with freaks-weirdos/JKC MBWA/Boonies labs V.C.-formal/Intel Acquire weird Childrens crusade Old farts crusade Go Global at any size Stop listening to customers Talent!/Unusual sources-Hire innovators-V.C.s Eschew giant mergers

121 Remember: scale economies max out early Assisted suicide! (Built to last = Chimera- snare-delusion) Burn your press clippings Forgetting strategy Fire all strategic planners Tempo! Final product bears little relation to starting notion Design! Design! Design! (culture, not program) All innovation: Pissed-off people Gut feel rules! Focus groups suck Weird focus groups okay Be-Do philosophy

122 Celebrations Culture-little as well as big Inno (everyone- an-innovator) Life = Wow Projects Acknowledge messiness-pursue serendipity (Blitzkrieg-Containers-Science-Jim Utterback) R.F.A. Culture of execution 4/40: decentralization, execution, accountability, 615AM EVP (S.O.U.B.)/Systems-process un-design Diversity for diversitys sake Women-Women-Women/customers (they are the market, not a segment)-leaders Boomers-Geezers (all the money)

123 CRO (Chief Revenue Officer) culture/top- line obsessed CIO (Chief INNOVATION Officer) Laughter Facility-space configuration Experiments-prototypes Reward excellent failures. Punish mediocre successes. Bizarrely high incentives (& penalties) We are what we eat/We are who we hang out with (E.g.: Staff-Consultants-Vendors-Out-sourcing Partners/#, Quality-Innovation Alliance Partners- Customers-Competitors/who we benchmark against -Strategic Initiatives -Product Portfolio/LineEx v. Leap- IS/IT Projects-HQ Location-Lunch Mates-Language- Board)

124 Paul Arden, Whatever You Think Think the Opposite

125 ARE YOU BEING REASONABLE? Most people are reasonable; thats why they only do reasonably well. Source: Paul Arden, Whatever You Think Think the Opposite

126 TRAPPED. Its not because you are making the wrong decisions. Its because you are making the right ones. We try to make sensible decisions based on the facts in front of us. The problem with making sensible decisions is that so is everybody else. Source: Paul Arden, Whatever You Think Think the Opposite

127 Making the safe decision is dull, predictable and leads nowhere new. The unsafe decision causes you to think and respond in a way you hadnt thought of. And that thought will lead to other thoughts which will help you achieve what you want. Start taking bad decisions and it will take you to a place where others only dream of being. Source: Paul Arden, Whatever You Think Think the Opposite

128 The best piece of advice ever given was by the art director of Harpers Bazaar, Alexey Brodovitch, to the young Richard Avedon, destined to become one of the worlds great photographers. The advice was simple:ASTONISH ME. Bear these words in mind, and whatever you do will be creative. Source: Paul Arden, Whatever You Think Think the Opposite

129 Which slogan would you choose for the V&A? THE MUSEUM OF THE ARTS THE ART OF THE MUSEUM THE NEW V&A ITS NOT FOR BORING OLD ARTS AN ACE CAFF WITH QUITE A NICE MUSEUM ATTACHED In a museum, the first question is Wheres the loo? the second is Where is the café? A visit to a museum is an outing; it should be entertaining as well as elevating. Curators have to conserve art, and directors are there to serve the public, the curators and themselves. So put yourself in their position. Which line are you going to choose? One which will be effective with the public, or one that preserves the dignity of the V&A? To her everlasting credit, Elizabeth Esteve-Coll, then Director of the V&A, chose the last line. Source: Paul Arden, Whatever You Think Think the Opposite

130 Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved bodybut rather a skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming, Wow, what a ride! anon.

131 From secret hideouts in South Asia, the Spanish-Syrian al-Qaeda strategist published thousands of pages of tracts on how small teams of Islamic extremists could wage a decentralized global war against the United States and its allies.Washington Post/0523.06

132 Immelt on Innovation breakthroughs: Pull out and fund ideas in each business that will generate >$100M in revenue; find best people to lead (80 throughout GE) Source: Fast Company/07.05

133 Strategic Thrust Overlay* Sysco Microsoft (Inet, Search) GE (6-Sigma, Workout, etc.) GSK (7 CEDDs) Apple (Mac) Hyundai (et al.) (Electronics, etc.) *Different from Skunkworks


135 Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity


137 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

138 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.

139 ExIn*: 1982-2002/ DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 * Excellence Index /Basket of 32 publicly traded stocks


141 Why in the world did you go to Siberia?

142 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.

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

144 Business: The Ultimate Creative Endeavor.

145 Business: The Ultimate Personal Development- Growth Experience.

146 Business: The Ultimate Transcendent Service Opportunity.


148 Tell me, what is it you plan to do with your one wild and precious life? Mary Oliver

149 This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy. GB Shaw/Man and Superman


151 $798

152 $415/SqFt/Wal*Mart $798/SqFt/Whole Foods

153 7X. 730A- 800P. F12A.* *93-03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.


155 Its simple, really, Tom. Hire for s, and, above all, promote for s. Starbucks middle manager/field

156 #1/100 Best Companies to Work for /2005

157 Wegmans


159 Cirque du Soleil !


161 Donnellys Weatherstrip Service Weymouth MA


163 ???????? Weenie of the year, 2006 …

164 ???????? 6/44

165 P&G


167 To be a leader in consumer products, its critical to have leaders who represent the population we serve. Steve Reinemund/PepsiCo


169 2005

170 Good Thinking, Guys! Kodak Sharpens Digital Focus On Its Best Customers: Women Page 1 Headline/WSJ/0705


172 Women are the majority market Fara Warner/The Power of the Purse

173 USA/F.Stats: Short n (Very) Sweet >50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) Source: Fara Warner, The Power of the Purse

174 Cases! McDonalds (mom-centered to majority consumer; not via kids) Home Depot (Do it [everything!] Herself) P&G (more than house cleaner) DeBeers (right-hand rings/$4B) AXA Financial Kodak (women = emotional centers of the household) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want friends, not a blond stereotype) Source: Fara Warner/The Power of the Purse

175 To help revive the companys sales and profits, McDonalds shifted its strategy toward women from one ofminority consumers who served as a conduit to the important childrens market to one in which women are the majority consumers and the main drivers behind menu and promotion innovation. Fara Warner, The Power of the Purse

176 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1.

177 The Perfect Answer Jill and Jack buy slacks in black…


179 Women dont buy brands. They join them. EVEolution

180 2.6 vs. 21

181 10. Womens Market = Opportunity No. 1.

182 Continuing on page 73:A Guide to Womenomics: The Future of the World Economy Lies Increasingly in Female Hands. (Headline.) More stats: Around the globe since 1980, women have filled two new jobs for everyone taken by a man. Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers and investors. Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from womens increased purchasing power; over the past decade the value of shares in Goldmans basket has risen by 96%, against the Tokyo stockmarkets rise of 13%. A couple of final assertions: (1) It is now agreed that the single best investment that can be made in the developing world is educating girls. (2) Also, surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest participation rates, such as Italy and Germany, have the lowest fertility rates. Source: Economist, April 15, page 73


184 10.6


186 Add It Up! Doing it right (Men buy things that other men will buy for women. I buy things that women want.successful jeweler/F) Greater workforce/global participation rate (bigger contributor to GDP growth than technology, China, India) Higher wages (more seniority, promotionseven if not to CEO) Women-owned businesses (answer to the Glass Ceiling)

187 Forget China, India and the Internet: Economic Growth Is Driven by Women. Headline, Economist, April 15, Leader, page 14

188 Forget China, India and the Internet: Economic Growth Is Driven by Women. [Headline.] Even today in the modern, developed world, surveys show that parents still prefer to have a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their parents old age. Yet it is time for parents to think again. Girls may now be a better investment. Girls get better grades in school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn. … And women are more likely to provide sound advice on investing their parents nesteg: surveys show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in the last couple of decades. Those women have contributed more to global GDP growth than have either new technology or the new giants, India and China. Economist, April 15


190 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47% )

191 44-65: New Customer Majority * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

192 The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies. David Wolfe & Robert Snyder, Ageless Marketing

193 Baby-boomer Women: The Sweetest of Sweet Spots for Marketers David Wolfe and Robert Snyder, Ageless Marketing

194 WOMAN of the Year: Shes the most powerful consumer in America. And as she starts to turn sixty this month, the affluent baby boomer is doing what shes always done redefining herself. Joan Hamilton, Town & Country, JAN06

195 Sixty Is the New Thirty Cover/AARP/11.03


197 Women. Women business owners. Boomers-Geezers. Single-adults (Urban)

198 Fastest growing demographic: Single-person Households (>50% in London, Stockholm, etc) Source: Richard Scase

199 % of homes purchased by single women: 1981, 10%; 2005, 20% % of homes purchased by single men: 1981, 10%; 2005, 9% Source: USA Today/02.15.06


201 Women. Women business owners. Boomers-Geezers. Single-adults (Urban)


203 $55B

204 MasterCard Advisors


206 Disintermediation is overrated. Those who fear disintermediation should in fact be afraid of irrelevancedisintermediation is just another way of saying that … youve become irrelevant to your customers. John Battelle/Point/Advertising Age/07.05

207 Chicago: HRMAC

208 support function / cost center/ overhead or …

209 Are you … Rock Stars of the Age of Talent

210 Are you the …Principal Engine of Value Added *Eg: Your R&D budget as robust as the New Products team?

211 Department Head to … Managing Partner, IS [HR, R&D, etc.] Inc.

212 ThePSF35 : Thirty-Five Professional Service Firm Marks of Excellence

213 The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: If you cant explain your position in eight words or less, you dont have a positionSeth Godin) 2. DRAMATIC DIFFERENCE (We are the only ones who do what we doJerry Garcia) 3. Stretch Is Routine (Never bite off less than you can chewanon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling Best TeamFast) 5. Playful Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small Uneconomic Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: Dent the UniverseSteve Jobs) 9. Fire-on-the-spot Anyone Who Says, Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a commodity 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) RADICAL

214 Point of View!


216 Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers)

217 Big Browns New Bag: UPS Aims to Be the Traffic Manager for Corporate America Headline/BW/2004

218 Purchasing Officer Thrust #1: Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner- Leader in Lifetime Value-added Maximization ? (*Lopez: Arguably Villain #1 in GM tragedy/Anon VSE-Spain)

219 HCare CIO: Technology Executive (workin in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospitals Senior Healing-Services Team (who happens to be a techie)


221 C X O* *Chief e X perience Officer

222 C DM* *Chief Dream Merchant

223 C F O* *Chief Festivals Officer

224 C C O* *Chief Conversations Officer

225 C S O* *Chief Seduction Officer

226 C L O* *Chief Lovemar k Officer

227 C PI* *Chief Portal Impresario

228 C W O* *Chief WOW Officer

229 C ST O* *Chief Storytelling Officer

230 C R O* *Chief Revenue Officer

231 . Everyone lives by selling something. – Robert Louis Stevenson

232 Sell Sell Sell


234 Brand = Talent.

235 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.

236 Leaderships Mt Everest/Mt Excellence free to do his or her absolute best … allow its members to discover their greatness.

237 We are a Life Success Company Dave Liniger, founder, RE/MAX

238 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

239 Leadersdo people. Period. Anon.

240 The leaders of Great Groups love talent and know where to find it. They revel in the talent of others. Warren Bennis & Patricia Ward Biederman, Organizing Genius

241 PARCs Bob Taylor: Connoisseur of Talent


243 Leadership 23

244 Leadership23 1. Enthusiasm. Energy. Exuberance. 2. Action. Execution. 3. Tempo. Metabolism. 4. Relentless. 5. Master of Plan B. 6. Accountability. 7. Meritocracy. 8. Leaders do people. Mentor. (Success creation business.) 9. Women. Diversity. 10. Integrity. Credibility. Humanity. Grace. 11. Realism. 12. Cause. Adventures. Quests. 13. Legacy. 14. Best story wins. 15. On the edge. (Wildest chimera of a moonstruck mind.) 16. Reward excellent failures. Punish mediocre successes. 17. Different > Better. (Only ones who do what we do.) 18. MBWA. Customer MBWA. 19. Laughs. 20. Repot. Curiosity. Why? 21. You = Calendar. To Dont. Two. 22. Excellence. Always. 23. Nelsonian! (Other admirals more afraid of losing than anxious to win.)

245 Kevin Roberts Credo 1. Ready. Fire! Aim. 2. If it aint broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

246 Sir Richards Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson

247 Stay Hungry. Stay Foolish. Steve Jobs


249 Insanely Great Language! Insanely Great. Steve Jobs

250 Radically Thrilling Language! Radically Thrilling. BMW Z4 (ad)

251 Gaspworthy!

252 C T O* *Chief Thrills Officer

253 C T O* *Chief Transcendence Officer

254 Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity


256 Its always showtime. David DAlessandro, Career Warfare

257 C W O* *Chief WOW Officer

258 !

259 C ! O *Chief ! Officer


261 The Irreducible209/ Sales122 Tom Peters/04.10.2006

262 The Irreducible209

263 A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter, Gary Hamel, Jim Collins, etc. Finally, hed had enough. What, if anything, he asked, do you believe for sure? I mumbled something, but his query started rumbling around in my mind. Three days later, wandering on a Sunday in London, the idea of the irreducibles occurred to meand I started jotting down notes on stuff I do indeed believe for sure. Before I knew it, a few days later, the list had grown to 209 items. Hence The Irreducible209 that follows. Tom Peters

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

265 15. Men. Women. Different. Contend. Connect. 16. Women. Buy. All. (RU listening?) 17. Quality. (Mind-blowing. Beyond 6-Sigma.) 18. Re-invent. Re-pot. (Required.) 19. Jaywalk. 20. Big change. Small # of people. (Always.) 21. Experiment. Now. 22. Failure. Normal. 23. Most failures, most success. (Fail. Forward. Fast.) 24. Reward excellent failures. Punish mediocre successes. 25. Women leaders. (Altered times.) 26. Extremism. (Good business. Bad politics.) 27. Innovation source. Only. Extreme irritation. 28. Smile.

266 29. You must care. 30. Mentor. (Highest ROI.) 31. Best roster wins. 32. Wow. (Okay in biz.) 33. We all have customers. (Biz. Personal.) 34. All contacts = Experiences. 35. Cirque du Soleil. (Peerless.) 36. Leaders create space for growth. 37. Quests. (Only.) 38. High aspirations, high results. (Self-fulfilling prophecy.) 39. Attitude 1, Skills 0. (Mostly.) (Attitude 1, Skill 0.3?) 40. Sometimes: Skill 1, Attitude 0.1. 41. Must love, not like. 42. Wegmans. (No excuses. Mere groceries.) 43. Less than your best. Cheating.

267 44. Brand You. (No alt.) 45. Self-sufficiency. (Biggest LT turn-on.) 46. In the moment. 47. The moment wins. 48. Tomorrow = Never. 49. Action 1, Plan 0.1. 50. Execution can be a system. 51. Realism. 52. Own up. Move on. 53. Accountability. 54. Work hard > Work smart. (Mostly.) 55. Feedback. Necessary. Fast. (R.F.A. in RFA times.) 56. Customers. Listen. Lead. (Paradox.) 57. On stage. Always. (GW, FDR, RG = Supreme actors.)

268 58. Master statistical analysis. 59. Excellence = Set the table. 60. Legacy. (Will it have mattered?) 61. Great. (Why not?) 62. Radicals rule. (Think … Olympics.) 63. !!! = Good. 64. Red 1, Brown 0. (Red times.) 65. Talk. Listen. (Big 2. Master.) 66. Politics. (Normal-inevitable state of affairs. Master.) 67. Student. Forever. 68. Why? (Question #1.) 69. Dont belittle. 70. Respect. 71. All we have: this moment. (Moments matter most?) 72. Now. (Procrastination. Death.)

269 73. Exercise. 74. Paint. (Leader. Portraits of Excellence.) 75. Best story wins. 76. You must be the change you wish to see in the world. 77. Two big ones. Max. (Priorities.) 78. No I in Team. (I in Win.) 79. I in Win. (No I in Team.) 80. Different 1, Better 0. (Better = 0.1) 81. Imitation = Mistake. (Learn, from who?) 82. Choose/battle the right competitor. 83. Schools. Creativity. Entrepreneurship. (Not.) 84. MBAs. Creativity. Entrepreneurship. Leadership. (Not.) 85. Design. Under-rated. Wildly. (Still.) (Everything.)

270 86. You = Calendar. (Calendar. Never. Lies.) 87. Laugh. 88. Handshake. (Quantity. Quality.) 89. Dont fold your hands in front of your chest. Ever. (Never.) 90. Grace. (Works in biz.) 91. Weird. Wins. (Weird times.) 92. Crazy times. Crazy orgs. 93. Internet. All. 94. Women. Boomers-Geezers. Market. All. 95. Passion. (Repeat. So what?) 96. Energy. (Repeat. So what?) 97. Hustle. (Repeat. So what?) 98. Enthusiasm. (Repeat. So what?) 99. Exuberance. (Repeat. So what?) 100. Smile. (Repeat. So what?) 101. Care. (Repeat. So what?)

271 102. Simplicity. Redundancy. Resilience. Bloody- mindedness. Visible optimism. (Success.) 103. Act. (Repeat. So what?) 104. Appreciate. (Repeat. So what?) 105. Fun. (Biz. Why not?) 106. Joy. (Biz. Why not?) 107. Sales = Life. 108. Marketing = Life. 109. Long-term. Top line. 110. Great company = Creates the most individual success stories. (RE/MAX) 111. Talent first, performance byproduct. 112. Sustained Wow* 1, Shareholder value, 0.2 (*Product, People.) 113. Commitment, by invitation only. 114. Creativity, by invitation only. 115. HR = #1. (Ought to.) 116. Face-to-face. (5K miles, 5 minutes.)

272 117. Negotiation. Make all winners. (Save face.) 118. Grace makes enemies friends. 119. Network. 120. Invest in relationships. (Think ROIR. Return On Investment in Relationships.) 118. Relationship investment. Forethought. Calendar item. Intensity. 119. Innovation. Easy. (Hang out with weird.) 120. Weird = Win. (Weird times.) 121. The bottleneck is at the top of the bottle. 122. Good Board = Weird Board. (At least, surprising.) 123. No contention, no progress.

273 124. Crucial conversations. Crucial confrontations. (Study. Learn. Do.) 125. Honest feedback. 126. Gaspworthy. Yes. 127. Insanely great. 128. Astonish me. 129. Make it immortal. 130. Will you remember it in 20 years? 131. No small opportunities. (Reframe.) 132. One playmate, one playpen = Enough. 133. End run. Sensible. 134. Allies are there for the finding. 135. Find successes. Build on successes. (Pos > Neg. Encourage > Fix.) 136. Somebodys doing it today. Find em. 137. Someone is living 2016 in 2006. (Find em. Study em.)

274 138. Dont benchmark, futuremark. (2016. Happening. Somewhere.) 139. PMA. It works. 140. There are no experts. (You are the expert.) 141. Life is short. 142. Sustained success. Fat chance. Make today matter. (Sustained. Ha.) 143. Collaborate. (Networked world.) 144. Go solo. (Individual. Unit of Intellectual Capital.) 145. There are no perfect plans. (Do. Wins.) 146. Plans motivate. (Right or wrong. Sense of purpose.) 147. Never rest. 148. Get some sleep. 149. Winning = Embracing paradox. 150. Ambiguity = Opportunity.

275 151. Resilience. 152. Relentless-ness. 153. None. Above. Comeuppance. (GM. Sears. U.S. Steel. DEC.) 154. Be yourself. Period. 155. Never work with jerks. Including customers. (Life. Too short.) 156. Under-promise, over-deliver. 157. Talent. (Powerful word.) 158. Customer = Anyone whose actions affect your results. 159. Competition stinks. (Seek the soft spots where you can dominate.) 160. K.I.S.S./Keep It Simple, Stupid. 161. Beauty. (Good biz word.) 162. See the beauty in a hamburger bun. (Go. Ray.)

276 163. Own up. Quick. ( Denial. Cancer.) 164. Celebrate. Often. 165. 78 people = 78 approaches. (Each. Unique.) 166. Weed. Ceaselessly. (Prune. Stupid. Rules. Non-stop.) 167. Get out of the way. (You = The problem.) 168. Smile. Sunny. Optimism. (If it kills you.) 169. Flowers. (Cheery workplace.) 170. Enjoy. (Or get the hell.) 171. Be intolerant of sour. (1 = Major pollution) 172. No quick trigger on promotion. (Too important.) 173. Evaluation = Lots of study-time. 174. Evaluation = Life or death to evaluee. 175. 360 evaluation. No fad. 176. Exit when youre done. (Done. Sooner than you think.)

277 177. Today. Now. My Project. Am. Is. I. Period. 178. Beautiful systems. (Good biz phrase. Not oxymoron.) 179. Build on strengths > Fix weaknesses. 180. To dont = To do. (To dont > To do ?) 181. Leaders Do People. (Period.) 182. Leaders enjoy leading. 183. Serious leadership training = Serious. 184. Priorities. Obvious. (Or else.) 185. 5 Priorities = 0 Priorities. (3 Priorities = 0 Priorities?) 186. People. First. Last. Always. 187. It. Is. Always. The. People.

278 188. Handshake. (Quantity. Quality.) 189. Dont fold your hands in front of your chest. Ever. (Never.) 190. Simplicity. Redundancy. Resilience. Bloody-mindedness. Visible optimism. (Success.) (Repeat.) 191. Employee Entrance = Guest Entrance. 192. Put the customer SECOND. (Thanks, Hal.) 193. Flowers. (Or did I say that before? No matter if I did.) 194. Big Mergers dont work. Small acquisitions can/do workif you dont screw with their energy.

279 195. Instinctively head for the front line. (In all contexts.) 196. Success = DDMMPR/"D-squared, M-squared, PR = DramDiff + Money-Financial Acumen + Good Marketing Instincts + Stellar People + Resilience (The fab five: What. Every. Small. Biz. Needs.) (Big too.) 197. Core Mechanism (Game-changing Solutions): PSF (Professional Service Firm model) + Wow! Projects (Different vs Better) + Brand You (Distinct or Extinct) 198. 2011/2016 has already happened. Find it.

280 199. Kids know kids. Oldies know oldies. Women know women. (Staff accordingly.) 200. Everybody is my customer. 201. Cosset vendors. 202. I want to run a Housekeeping department. (And you?) 203. The military doesnt follow the military model. (Initiative = Excellence.) 204. No such thing as going to absurd lengths to serve the Customer. (HSM & Lefties.) 205. Forget the customer. All = Clients. 206. It takes decades to get over sleights. (So dont sleight.) 207. Dont dumb down. Ever.


282 Work In Progress XXX. One size fits. One. Only. (Evaluations. Period.) XXX. Teaching. Individualized. Only. (6 billion people = 6 billion learning trajectories.) (Montessori.) XXX. First impression. Matters. Shapes all that comes. Hard to overcome. (Understatement.) XXX. Jerks. Dont work with. (Life = Too short.) XXX. Manage [the hell out of] first impressions. XXX. Last impression. Matters. Dominates memory. Hard to overcome. (Understatement.) XXX. Manage [the hell out of] last impressions. XXX. Plain English. XXX. K.I.S.S. (450/8.) XXX. $798. $55,000,000,000. 3,000,000,000. 7AM-7PM. 6:15AM. XXX. Donnelly Weatherstrip rules. XXX. Managers do things right. Leaders do the right thing. NOT.

283 GE (more or less) : The Sales122: 122 Ridiculously Obvious Thoughts About Selling Stuff Tom Peters/0402.2006

284 This list was first prepared for GE Energy sales & marketing people in January 2006. It started with a half- dozen items, and grew like Topsy. Possibly, given its origins, its a little tilted toward complex, engineering- based sales. In any event, it makes a perfect companion to The Irreducibles209. This, too, is effectively a list of irreducibles. Tom Peters

285 1. Strategy overrated, simply doin stuff underrated. See Kelleher and Bossidy: We have a strategic plan, its called doing things.Herb Kelleher. Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability. Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done. Action has its own logicask Genghis Khan, Rommel, COL John Boyd, U.S. Grant, Patton, W.T. Sherman. 2. What are you personally great at? (Key word: great.) Play to strengths! Distinct or Extinct. You should aim to be outrageously good/B.I.W. at a niche area (or more). 3. Are you a personality, a de facto brand in the industry? The Dr Phil of... 4. Opportunism (with a little forethought) mostly wins. (Successful people are the ones who are good at Plan B.) 5. Little starts can lead to big wins. Most true winnersthink search & Googlestart as something small. Many big deals Disney & Pixarcould have been done as little-er deals if youd had the guts to jump before the value became obvious.

286 6. Non-obvious targets have great potential. Among many other things, everybody goes after the obvious ones. Also, the non-obvious are often good Partners for technology experiments. 7. The best relationships are often (usually?) not top to top! (Often the best: hungry division GMs eager to make a mark.) 8. ITS RELATIONSHIPS, STUPIDDEEP AND FROM MULTIPLE FUNCTIONS. 9. In any public-sector business, you must become an avid student of the politics, the incentives and constraints, mostly non-economic, facing all of the players. Politicians are usually incredibly logicalif you (deeply!) understand the matrix in which they exist. 10. Relationships from within our firm are as important often more importantas those from outsideagain broad is as important as deep. Alliesavid supporters!within and from non-obvious places may be more important than relationships at the Client organization. Goal: an insanely unfair market share of insiders time devoted to your projects!

287 Everyone lives by selling something. Robert Louis Stevenson

288 11. Interesting outsiders are essential to innovative proposal and sales teams. An exciting sales-proposal team is as important as a prestigious one. 12. Is the proposal-sales team weird enoughweirdos come up with the most interesting, game-changer ideas. Period. 13. Lunch with at least one weirdo per month. (Goal: always on the prowl for interesting new stuff.) 14. Gratuitous comment: Lunches with good friends are typically a waste of (professional) time. 15. Dont short-change (time, money, depth) the proposal process. Miss one tiny nuance, one potential incentive that makes my day for a key Client playerand watch the whole gig be torpedoed. 16. Sticking with it sometimes pays, sometimes notit takes a lot of tries to forge the best path in. Sometimes you never do, after a literal lifetime. (Ah, life.) 17. WOMEN ARE SIMPLY BETTER AT RELATIONSHIPSdont get hung upparticularly in tech firmson what industries- countries women cant do. (Or some such bullshit.)

289 18. Work incessantly on your storymost economic value springs from a good story (think Perrier)! In sensitive public or quasi-public negotiations, a compelling story is of immense valuepolitics is about the tension among competing stories. (If you dont believe me, ask Karl Rove or James Carville.) (Storytelling is the core of culture. Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell) 19. Call this 18A, or 18 repeat: Become a first-rate Storyteller! (A key – perhaps the key – to leadership is the effective communication of a story.Howard Gardner, Leading Minds: An Anatomy of Leadership) 20. Risk Assessment & Risk Management is more about stories than advanced mathi.e., brilliant scenario construction. 21. Good listeners are good sales people. Period. 22. Lousy listeners are lousy sales people. Period. 23. GREAT LISTENERS ARE GREAT SALES PEOPLE. (Listening skills are hard to learn and subject to immense effort in pursuit of Mastery. A virtuoso listener is as rare as a virtuoso cello player.) (If you dont listen, you dont sell anything.Carolyn Marland/MD/Guardian Group)

290 24. Things that are funny to me (American) are often-mostly not funny to those in other cultures. (Humor is as fine-edged as it gets, and rarely travels.) 25. You dont know Jack Squat about other peoples cultures especially if you are a typically myopic American. (Like me.) 26. Are you a great interviewer? Its a make or break skill. (Think Barbara Walters skill at extracting unwanted truths from pros in persona-protection... in front of 10s of millions of people. 27. Are you a great (not merely good) presenter? Mastering presentation skills is a lifes workwith stupendous payoff. 28. Work like hell on the Big 2: LISTENING/INTERVIEWING, PRESENTING. These are the essence of [sales] lifeand usually picked-up in an amateurish fashion. Mistake! (Become a professional student of these two areas, achieve Mastery.) 29. Are you good at flowers? Think: FLOWER POWER! (see Harvey Mackays Mackay 66what you should know about a Client; e.g., birthdays & anniversaries.) (My flowers budget is out of control. Hooray for me.) 30. You cant do it allbe clear at what you are good at, bad at, indifferent at. Hubris sucks.

291 If you dont listen, you dont sell anything. Carolyn Marland/ Managing Director/ Guardian Group

292 31. The point is not to prove yourself. (Thats ego-talk.) Let the best person present to the Clientperhaps a lower level geek. (Control freaks get their just desserts in the long haul or sooner.) 32. The numbers will more or less take care of themselves over the long haulif the relationship/s is/are solid gold. 33. The Gold Standard in selling: INDISPENSABLE to the Client. No other goal is worthy. 34. Never stop growing-broadening-deepening the relationship. The key to indispensability is to get the Client more and more … and more … and then more … imbedded in our web. Hence the so-called selling process is only the first step! 35. USE THE WORD WE … CONSTANTLY & RELIGIOUSLY! (E.g.: Wethe Client & meare going to change the world with this service.) 36. Dont waste your time on jerksitll rarely work out in the mid- to long-term. 37. Genius is walking away from lousy scores (deals)and accepting the attendant heat. Big Business is the premier home to Big Egos overpaying by a factor of 2 to 22 with billion$$$$ at stake. (Think Jerry Levin and AOL Time Warner.)

293 38. You havent a clue as to how this situation will actually play outbe prepared to move fast in a different direction. 39. Keep your word. 40. KEEP YOUR WORD. 41. Underpromise (i.e., dont over-promise; i.e., cut yourself a little slack) even if it costs you businesswinning is a long-term affair. Over-promising is Sign #1 of a lack of integrity. You will pay the piper. 42. There is such a thing as a good lossif youve tested something new and developed good relationships. A half-dozen honorable, ingenious losses over a two-year period can pave the way for a Big Victory in a New Space in year 3. 43. Its a competitive world out there. New, innovative products are harder to sell than old stand-bys. Nonetheless, you will be a long-term star to the extent that you are willing to push the harder-to-sell-at-the-moment Innovative Products that cement long-term Client success (Indispensability!) even if it means a #s hit this quarter. PART OF YOUR JOB: TAKE CLIENTS ON AN ADVENTURE THAT PUTS THEM AHEAD OF THE GAME CALLED (GAMECHANGINGhopefully) COMPETITIVE ADVANTAGE!

294 44. Think legacywhat the hell is all this really about for you and the world? (Tell me, what is it you plan to do with your one wild and precious life? Mary Oliver) 45. THERE ARE NO MODERATES IN THE HISTORY BOOKS! 46. Keep it simple! (Damn it!) No matter how sophisticated the product. If you cant explain it in a phrase, a page, or to your 14- year-old... you havent got it right yet. 47. Know more than the next guy. Homework pays. (of course its obviousbut in my work it is too often honored in the breach.) 48. Regardless of project size, winning or losing invariably hinges on a raft of little stuff. Little stuff is and always has been everything!!!!!!!!!!!!!!!!!!!!or, one mans little stuff is another mans 7.6 Richter deal-breaker. 49. In public settings in particular, face saving is all. When something changes, allow the other guy to come out looking like a winner, especially if he has lost. (Even if you must accept the egg on your facehe will always remember you!) 50. Dont hold grudges. (It is the ultimate in small mindedness and incredibly wasteful and ineffective. Theres always tomorrow.)

295 51. ITS ALWAYS THE POLITICSwee private-sector deal or giant public sector deal. (Every player, small or large, is angling for something. Master the calculus of advantage.) 52. To beat the turnover problem in key Client posts amidst long negotiations, invest outrageous amounts of time building a wide & deep set of relationships with mid-level (& lower!!) plodding careerists. The invisible careerists are the bedrock upon which repeated success is built! (My Capitol Hill Axiom: Its the 24-year-old LA who in the end briefs the Senator right before she goes to the Floor to vote.) 53. Speaking of she: Gender differences are Enormous dealing with a woman and dealing with a man are different kettles of fishyou must become an A+ student of gender differences. (E.g.: Men are typically more interested in the short-term score. Women are more interested in the long- term consequences.) 54. LITTLE PEOPLE OFTEN HAVE BIG FRIENDS. 55. This is not war, damn it. All parties can win (or not lose, anyway). And losing bidders can walk away from a deal with increased respect for you and your team.

296 56. Never, ever dump on a competitorthe Tom Watson IBM glory-days mantra. 57. Never forget the Law of Cousins! In developing nations in particular, power brokers at all levels are at least cousins! Consideration for a second cousin can pay off big time. 58. Speaking of favors, jail sucks. 59. Work hard beats work smart. (Mostly.) 60. REPEAT: HE/SHE WHO HAS THE MOST-BEST RELATIONSHIPS WINS. RELATIONSHIPS ARE THE ESSENCE OF THE WORK OF THE SALESPERSON. THE HARD... AND LONG... WORK OF THE SALESPERSON. 61. Mano v mano hardball is seldom the answerend runs based and patient multi-level relationship building via deeper- wider networks win. 62. If the deal is wired from below, truly wired, than the so- called big negotiations are essentially irrelevant. 63. If every quarter is a little better than the prior quarter then you are not taking any serious risks. 64. Phones beat email.

297 Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge

298 65. A THREE-MINUTE CALL TODAY CAN AVOID A GAME-LOSER OF A FIASCO NEXT MONTH. There was always a time when a little thing could have been addressed that headed off a subsequent big thing. As to avoiding that call, didnt someone say, Pride goeth before the fall? 66. Be hyper-organized about relationship managementyou are in the anthropology business. Study the great pols! Brilliant NRM (network relationship management) is not accidental! It is not catch-as-catch can. (Football analogies are cutebut deep political understanding pays the private-school tuition.) 67. Obsess on ROIR (Return On Investment In Relationships). 68. THANK YOU NOTES: Worlds highest-return investment!! 69. The way to anyones heart: Doing a nice thing for their kid. (But, gawd, does this take a gentle touch.) 70. Scoring off other people is stupid. Winners are always in the business of creating the maximum # of winnersamong adversaries at least as much as among partners. 71. Your colleagues successes are your successes. Period. (Trust me, my greatest personal successfinancially as well as artisticallyhas been creating a bigger pond in which everyone wins, even if my market share is down.)

299 72. Lend a helping hand, especially when you dont have the time. E.g. share relationshipsthe more you give away the more you get in return (just like they say in church). 73. Listen up: It was much later that I realized Dads 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.e., Respect is Cool.) 74. Mentoring is a thrilland the practical payoff is enormous. The best mentors have the whole world working its buns off for them! 75. Hire for enthusiasm. Promote for enthusiasm. Cherish enthusiasm. REMOVE NON-ENTHUSIASTSTHEY ARE CANCERS. (Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge. A man without a smiling face must not open a shop.Chinese Proverb.) 76. ITS ALWAYS YOUR PROBLEMyou sold it to them.

300 77. Its never over: While there may be an excellent service activity in your company, the relationship belongs to You! Hence the aftersales moments of truth are at least asif not more than*--important to the Continuing Relationship as the sale transaction itself. (*I vote for more than.) Youll get your biggest points with the Client for being an effective after-the-fact go-between with your company. 78. Dont get too hung up on systems integrationfirst & foremost, the individual bits have got to work. 79. For Gods sake dont over promise on systems integrationits nigh on impossible to deliver. 80. On the other hand … winners clamber Up the Value-added Ladder, and offer ever so much more than mere product. ALL SUCCESSFUL SALES PEOPLE ARE IN THE SOLUTIONS BUSINESSno matter how jargony that may sound.

301 81. Systems / Solutions selling means grappling directly with culture change in Client organizations. (The business of selling is not just about matching viable solutions to the customers that require them. Its equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solutionJeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale) 82. Shit happens. Thats what they pay you for. 83. This is not a GE or Ben & Jerrys saleit is a Joe Jones/Jane Jones sale. YOU ARE THE BRAND THE CLIENT BUYSespecially over the long haul. 84. Duh: You make money, the company makes moneyon repeat business. 85. Masteryes, youthe PR Game. Word of Mouth is not accidental! You want Word of Mouth? Make it happen! 86. GOAL #1: MAKE YOUR CLIENT A HEROYOU ARE NOT THERE TO GET CREDIT. (Taking credit is for egomaniacs. And losers.) 87. Decent margins, over the mid- to long-term, are a product of better relationships, not better negotiating skill. (Mostly.)

302 You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringe. Jack Welch

303 88. In the immortal words of ex-GE Vice Chairman Larry Bossidy, more or less, Realism rocks. (Bullshit artist and great salesperson, contrary to conventional wisdom, are Diametric Opposites. Truthteller and Great Salesperson is more like it.) 89. Be the first to tell the Client bad news (e.g., slipped delivery); his intelligence sources will tell him fastyou want to be there first with your story and to enhance your rep as Truthteller! 90. Work like hell to get a reputation as a valued industry expert, to become an industry resource. 91. Work the Trade Association angle for all its worthit may take a decade to pay offe.g., when you become an officer or are on an important panel or testify Before Congress. 92. PAY YOUR DUES IN THE CLIENT ORG AND IN YOUR OWN ORG! 93. Its all bloody tactics. 94. You must... LOVE.... the product! (Period.) 95. YOU MUST LOVE THE PRODUCT! 96. Dont over-schedule. Running late is inexcusable at any level of seniority; it is the ultimate mark of self-importance mixed with contempt.

304 97. Women are better salespeople. (See Addendum.) 98. Women alone understand Women. 99. Actually, Women by and large understand Men better than Men understand Men. 100.Women purchasers buy Stories and recommendations. 101. Women take longer to become Loyal purchasers, but then stay Loyal. 102. Men buy Stats. 103. Men decide fast, but are fickle. 104. Men & Women are … VERY, VERY … Different. 105. Women buy most things. Consumer. Increasingly, professional goods and services. 106. Womens Market is Opportunity #1. 107. Boomers. Many, many. Lots & lots & lots of … $$$. 108. Boomers-Geezers are very different purchasers than those in other categories.

305 109. It takes time to get to know people. (DUH.) 110. The very idea of efficiency in relationship development is... STUPID. 111. MBWA (still) rules. 112. Preparing the soil is the first 98 percent. (Or more.) 113. WORK THE PHONES! 114. Rule 5K-5M: 5K miles for a 5-Minute meeting often makes sense. (Yes, often.) (Even with constrained travel budgets.) (Thanks, super-agent Mark McCormack.) 115. Become a student! Study great salespeople! (Including Presidents.) (Natural is a little bit truebut then Naturals are always the ones who study hardest e.g., Jerry Rice.) 116. Become a student! Yes, you can study Relationship Building. So, study … 117. Beware complexifiers and complicators. (Truly smart people... Simplify things.)

306 118. The smartest guy in the room rarely winsalas, he usually is aware hes the smartest guy. (And neednt waste his time on that soft relationship crap.) 119. Be kind. It works. 120. Be especially kind when there are screw-ups. (Theres plenty of time later to Play the Great Accountability Game.) 121. Presidents never tire of being treated like Presidents. 122. Luck matters. So: Good luck!

307 ADDENDUM: Women Rock … as Salespersons (From Item #98.) And the answers are? TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson


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