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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!
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NOTE: To appreciate this presentation [and ensure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”
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Tom Peters’ X25* EXCELLENCE. ALWAYS. Tupelo/26 October 2007 *In Search of Excellence 1982-2007
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All you need to know …
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25
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All you need to know … except for …
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Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “ remember to tuck the shower curtain inside the bathtub”
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This is it: All you need to know …
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“ Do one thing every day that scares you.” “ Do one thing every day that scares you.” —Eleanor Roosevelt
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NOT YOUR FATHER’S WORLD! NOT YOUR FATHER’S WORLD!
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THREE BILLION NEW CAPITALISTS THREE BILLION NEW CAPITALISTS —Clyde Prestowitz
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APPARENTLY, NOT YOUR WORLD, EITHER! APPARENTLY, NOT YOUR WORLD, EITHER!
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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.” of a very big iceberg.”
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THE SECRETS OF EXCELLENCE I: THE MID-SIZED ENTERPRISE.
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#1 Exporter?
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#4 Japan #2T China #2T USA
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#4 Japan #3 USA #2 China #1 Germany
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Reason? Daimler? BASF? Siemens? Commerzbank?
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Buy a very large one and just wait.” “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
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Reason!!! Mittelstand
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GEOBRA/Playmobil Trumpf Rational Goldmann Produktions
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Skunk Camp #1: American “Mittelstand” (F500 A.W.O.L.) Frank Perdue/ Perdue Farms (“It takes a tough man to make a tender chicken.”) a tough man to make a tender chicken.”) Tom Malone/ Milliken and Company Don Burr/ People Express Tom Monaghan/ Domino’s Pizza Stew Leonard/ Stew Leonard’s Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs (Bob almost single-handedly invented what we now call single-handedly invented what we now call “knowledge management.”) “knowledge management.”)
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THE SECRETS OF EXCELLENCE II: MAINSTREET. (BEYOND “HIGH VISIBILITY EXPORTERS.”)
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Jim’s Group
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Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
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Basement Systems Inc. Basement Systems Inc.
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*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007: $62,000,000
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etc. PRSX/Paragon Railcar Salvage* *Salvaged railcars into bridges, etc. etc. PRSX/Paragon Railcar Salvage* *Salvaged railcars into bridges, etc.
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* Lived in same town all adult life *First generation wealthy/no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull- normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko
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WallopWal-Mart16* ABSURDLY EASY BEAT GIANT WallopWal-Mart16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company
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The “Small Guys” Guide: Wallop Wal*Mart16 * Niche-aimed. (Never, ever “all things for all people,” a “mini- Wal*Mart.) * Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *“Dramatically Different” (La Difference... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) * Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) * Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
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The “Small Guys” Guide: Wallop Wal*Mart16 * Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) * A community star! (“Sell” local-ness per se. Sell the hell out of it!) * An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) * DESIGN DRIVEN! (“Design” is a premier weapon-in- pursuit-of-the sublime for small-ish enterprises, including the professional services.)
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The “Small Guys” Guide: Wallop Wal*Mart16 * Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) * Sophisticated use of information technology. (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) * Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.) * Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community.)
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The “Small Guys” Guide: Wallop Wal*Mart16 * Brand-Lovemark* (*Kevin Roberts) Maniacs ! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional- niche “lovemark.”) * Focus on women-as-clients. (Most don’t. How stupid.) * Excellence! (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)
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THE SECRETS OF (American) EXCELLENCE III: ACTION- VITALITY- CHURN.
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Q4/2006 +500,000 = ? Source: Barron’s 0922.07
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Q4/2006 +500,000 = +7,700,000 -7,200,000 Source: Barron’s 0922.07
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Ichiro-nomics
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Ichironomics “Spokane, like Minneapolis-St Paul, refuses to bet the economy on one or two industries. Rather, it practices what one city booster calls ‘Ichironomics.’ Like the Seattle Mariners’ center fielder, Ichiro Suzuki, we try to hit singles and doubles. We want to improve the overall conditions for small businesses, not chase the large employer.’”—Rich Karlgaard, Forbes (NB: In 2004 Suzuki broke the all-time record for hits in a single season, with a staggering 262.) in a single season, with a staggering 262.) (NB II: In 2007 the mayor of Lisbon reduced the amount of time to get a business license from weeks or months to, literally, minutes.) a business license from weeks or months to, literally, minutes.)
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THE SECRETS OF EXCELLENCE IV: UNBRIDLED IMAGINATION.
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Single greatest act of pure imagination
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24%
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dubai
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“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
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THE SECRETS OF EXCELLENCE V: EDUCATION FOCUSED ON NURTUTING CREATIVITY.
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“Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class
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“Every child is born an artist. The trick is to remain an artist.” —Picasso
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His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills “My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA!
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Design 0 Creativity 0 Innovation 0 15 “Leading” Biz Schools Design /Core: 0 Design/Elective: 1 Creativity /Core: 0 Creativity/Elective: 4 Innovation /Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002/Research by Thomas Lockwood
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“ Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success- failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” Ye gads: “ Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success- failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” —Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
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Muhammad Yunus: “ All human beings are entrepreneurs. When we were in the caves we were all self- employed... finding our food, feeding ourselves. That’s where human history began... As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006
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THE SECRETS OF EXCELLENCE VI: THE ESSENCE OF ENTERPRISE.
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Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)
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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)
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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
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Cause Space Decency service excellence servant leadership
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EXCELLENCE. CIRCA 1978. CIRCA 1982. CIRCA 1992. CIRCA 1994. CIRCA 1996. CIRCA 2006. CIRCA 2004-2007. CIRCA SEPTEMBER 2007. CIRCA 15 OCTOBER 2007. CIRCA 1966-2007.
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1978. A START.
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Hard Is Soft (# s ) Soft Is Hard (people)
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1982. (OCTOBER) A BOOK.
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Excellence1982: The Bedrock “Eight Basics” 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” Properties”
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“Breakthrough” 82* People! People!Customers!Action!Values! *In Search of Excellence
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1993. LOU FINDS GOLD IN THE RUBBLE.
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$55B
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<$20 Trapper: <$20 per beaver pelt. Source: WSJ
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wdcp/“Wildlife Damage-control Professional”: $150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ
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Trapper = Redneck WDCP = PSF/ Professional Services Provider
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7X to 40X for “Solution” [rather than “service transaction”]
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1994. COOL IS COOL.
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“You know a design is good when you want to lick it.” —Steve Jobs Source: Design: Intelligence Made Visible, Stephen Bayley & Terence Conran Stephen Bayley & Terence Conran
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1996. THE EDUCATION OF TOM.
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“Forget China, India and the Internet : Economic Growth Is Driven by Women.” “Forget China, India and the Internet : Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14
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10.6
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“The growth and success of women- owned businesses is one of the most profound changes taking place in the business world today.” — Margaret Heffernan, How She Does IT: How Women Entrepreneurs Are Changing the Rules of Business Success. today.” — Margaret Heffernan, How She Does IT: How Women Entrepreneurs Are Changing the Rules of Business Success.
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“AS LEADERS, WOMEN RULE: TITLE/ Special Report/ BusinessWeek “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
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10 UNASSAILABLE REASONS WOMEN RULE Women Women Women make [all] the financial decisions. Women control [all] the wealth. Women Women [substantially] outlive men. Women Women start most of the new businesses. Women’s Women’s work force participation rates have soared worldwide. Women Women are closing in on “same pay for same job.” Women Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women Women are better salespersons than men. Women Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men?
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2006. STILL COLD IN MAY.
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Why in the World did you go to Siberia? go to Siberia?
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Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human concerted human potential in the wholehearted service of others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners
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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!
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2004-2007. INVITATIONS.
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NZ = Design Excellence “Better By Design”: A National Strategy NZ = Design Excellence
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2007. SEPTEMBER. SYDNEY. DRUCKER TRIBUTE.
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“ 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. is said and done, a/the “house” in which most of us “live” most of the time.
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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.
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“We are a ‘Life Success’ Company.” “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX
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16 OCTOBER 2007. HAPPY 25.
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“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 practical;... expect more than others think is possible.” is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)
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1966. 2007.
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What makes God laugh?
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People making plans!
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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.
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do things.
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“We have a ‘strategic plan.’ It’s called doing things.” “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher
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try things.
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“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version # 5. By the time our rivals are ready with wires and screws, we are on version ready with wires and screws, we are on version # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg
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Screw. things. Up.
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Sam’s Secret #1!
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“Fail. Forward. Fast.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania
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try. Miss. try.
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READY. FIRE! AIM. READY. FIRE! AIM. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)
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No try. No deal.
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“You miss 100% of the shots you never take.” —WayneGretzky “You miss 100% of the shots you never take.” —Wayne Gretzky
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EXCELLENCE. BEDROCK. LEADERSHIP. 10Ps.
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” — Howard Schultz, Starbucks (IBD/09.05)
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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BZ: “I am a … Dispenser of Enthusiasm!”
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“ Nothing is so contagious as enthusiasm.” “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“ It’s always showtime.” “ It’s always showtime.” —David D’Alessandro, Career Warfare
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“ You must be the change you wish to see in the world.” “ You must be the change you wish to see in the world.” Gandhi
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Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think you’re “in touch with the pulse of things around here”? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are “so much BS”?]
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author
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“The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. potent. Positive.
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“I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade
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“Dennis, you need a … ‘To-don’t ’ List !”
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“The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” “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
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“Leaders ‘do’ people. Period.” “Leaders ‘do’ people. Period.” —Anon.
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“Leaders ‘SERVE’ people. Period.” “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf
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Leadership’s 11 th “P”: Promotion Leadership’s 11 th “P”: Promotion
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2 per Year/ 20 per Decade = Excellence + Legacy
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
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“One who does less than he can is a thief.” —Gandhi
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
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“[other] admirals more frightened of losing than anxious to win” On NELSON: “[other] admirals more frightened of losing than anxious to win”
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PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.
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The “7E s ”
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Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!
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The “1E”
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“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 practical;... expect more than others think is possible.” is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)
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Ger- on-i- mo !
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GERONIMO!’ "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine 02.1982)
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