Tom Peters X25* EXCELLENCE. ALWAYS. Bestseller/Goteborg/29 May 2007 *In Search of Excellence

Tom Peters G30* EXCELLENCE. ALWAYS. Bestseller/Goteborg/29 May 2007 * Research for In Search of Excellence (Stop #1: Goteborg)

Slides* at … tompeters.com *Also LONG

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Conrad Hilton, at a gala celebrating his life, on the most important lesson youve learned in you long and distinguished career: remember to tuck the shower curtain inside the bathtub

The Story whats with the excellence bit?. Big = Pitiful. Innovate. Or. Die. Up, Up, Up the Value Added Chain. New Markets (Women, Boomers) Talent = Brand. 21 st Century Leadership. (Ha.)

Bias/es: Trained by Mess- ists. Hobbies are history & statistics.* Professional life, center of, Silicon Valley, Axiom2007: The older I get, the less boring the basics become. *Fooled By Randomness

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

EXCELL- ENCE???? EXCELL- ENCE????

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

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

Daimler. And Dumb. Both Start with d.

Marriage in heaven Daimler- Benz and Chrysler exchange vows, circa 1998 (Jürgen Schrempp) the divorce on earth Daimler exec, circa 2007, on probable Cerberus private equity purchase of Chrysler from Daimler

DaimlerChrysler/98-07: Duh, Duh, Duh, Duh and … Duh Manifold Synergies / No Severe Scale limits/ Yes Culture clashes/ Yes Rushmorean ego issues/ Yes Customer acceptance /No

The last word: There is no last word.

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

BIAS. BUILT. TO. LAST. NOT.

TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someonee.g., grandchildthat you worked?)

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

EXCELLENCE. CIRCA 1982.

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

$85,000 $140,050 ExIn*: /Forbes.com DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 *Forbes/ Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE. ASPIRATION

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

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!

Hard Is Soft Soft Is Hard

EXCELLENCE. ASPIRATION. UNIVERSAL.

Jims Group

Basement Systems Inc. Basement Systems Inc.

EXCELLENCE. INNOVATE. OR. DIE.

What makes God laugh?

People making plans!

The Mess Is The Message! Period!

EXCELLENCE. INNOVATE. OR. DIE.

BIG???

You dont get better by being bigger. You get worse. Dick Kovacevich: You dont get better by being bigger. You get worse.

Im sure there are success stories out there, but at this moment I draw a blank. 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

InnoTac64

We become who we hang out with 1

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

The Hang Out Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: Innovate, Yes or No The Hang Out Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: Innovate, Yes or No

The Bottleneck Is at the Top of the Bottle At the top! 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

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.

do things.

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

drill.

you only find oil if you drill wells. 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

try things.

We made mistakes, of course. Most of them were omissions we didnt 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, were 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

Screw. things. Up.

Sams Secret #1!

No try. No deal.

You miss 100% of the shots you never take. WayneGretzky You miss 100% of the shots you never take. Wayne Gretzky

Intelligent people can always come up with intelligent reasons to do nothing. Scott Simon

personal

Work on me first. Work on me first. Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

EXCELLENCE. 4/40.

DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6 :15A.M.

But its only 2am!

Where are you going? … But its only 2am. … You see, you can live your life at 120 miles an hour, and thats pretty impressive. But its not good enough. Unless you live at 150 miles an hour, the world will pass you by, HRH Prince Alwaleed* *1 day: 573 people met separately, 200 phone calls, 100 text messages, etc Source: Prince Alwaleed, Inside the private world of the Middle Easts most powerful investor cover story, The Business,

DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 2a.m.

24%

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

$55B

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Services Goods Raw Materials

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

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

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

[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 revolutioncommunication technology that allows services to be delivered from afarwill 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.

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

EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

Experiences are as distinct from services as services are from goods. Experiences are as distinct from services as services are from goods. Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. Harley Experience: Rebel Lifestyle! What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. Harley exec, quoted in Results-Based Leadership

MEMORABLE CONNECTION Spellbinding Experiences The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Great Vacation/ Great Conference/ Operation Personal Renewal Beyond the Transaction/ Satisfaction Mentality Good hotel/ Happy guest/ Exceeded Expectations vs. Great Vacation/ Great Conference/ Operation Personal Renewal

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

We sell dreams Furniture vs. Dreams We do not sell furniture at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers heads. By uncovering these needs, we, in essence, fill in the blanks. We convert needs into dreams. Sales are the inevitable result. Judy George, Domain Home Fashions

EMOTION Dreams Come True The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. VALUE-ADDED LADDER III. ALL YOU NEED IS LOVE.

ECSTASY Lovemark The Value-added Ladder/ ECSTASY Lovemark Dreams Come True Spellbinding Experiences Services Goods Raw Materials

Tattoo Brand Tattoo Brand : What % of users would tattoo the brand name on their body?

Harley.… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 Top 10 Tattoo Brands* Harley.… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

NEW MARKETS.

women. BOOMERS. GEEZERS.

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

Womens Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES Womens Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)

Boys Falling Seven Years Behind Girls at GCSE Level Not Just America … Boys Falling Seven Years Behind Girls at GCSE Level headline, Weekly Telegraph, UK,

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

Home Furnishings … 94% Vacations … 92% Houses … 91% D.I.Y. … 80% Consumer Electronics … 51% Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major home projects) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

knows more man low IQ hard of hearing no right speaking to him She knows more about the [Audi] than the sales man who greets her at the door. But how is she treated? As if she has a low IQ, is slightly hard of hearing, and really has no right to be buying a luxury car; and if she brought a male friend with her, odds are 10:1 that the clueless salesperson spent most of his time speaking to him. Selling to Men, Selling to Women, Jeffery Tobias Halter

The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyers gender. The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyers gender. Jeffery Tobias Halter, Selling to Men, Selling to Women

Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Womens work force participation rates have soared worldwide. soared worldwide. Women are closing in on same pay for same job. job. Women are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se]. office per se]. Womens leadership strengths are exceptionally well aligned with new organizational effectiveness & aligned with new organizational effectiveness & value-added imperatives. value-added imperatives. Women are better salespersons than men. Women buy [almost] everythingcommercial as well as consumer goods. as well as consumer goods. So what exactly is … the point of men?

COROLLARY. EXCELLENCE. WOMEN. RULE.

AS LEADERS, WOMEN RULE: TITLE/ Special Report/ BusinessWeekAS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure TITLE/ Special Report/ BusinessWeek

Womens Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity Womens Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity. Judy B. Rosener, Americas Competitive Secret: Women Managers

women. BOOMERS. GEEZERS.

20 $14,000,000,000,000- $25,000,000,000,000

!!!!!!!!!!!!!!!!! People turning 50 today have more than half of their adult life ahead of them. People turning 50 today have more than half of their adult life ahead of them. Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/13

We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the worldand we will be the Center of your universe for the next twenty-five years. We have arrived!

Boomers-Geezers-Womens Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die

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

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

20 40 $25$80 2 We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years. Ed Michaels, War for Talent

INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

invites In the end, management doesnt change culture. Management invites the workforce itself to change the culture. Lou Gerstner

EMPHASIZE THE SOFT SKILLS.

SO YOURE A PEOPLE PERSON? PROVE IT.

PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION.

SO YOURE A PEOPLE PERSON? PROVE IT.

People! People!

LIVE FOR TALENT!

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. 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

Brand = Talent.

EXCELLENCE. AWOL: THE SCHOOLS FIASCO.

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 childlet alone our childreceive 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!

Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes 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, hes 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

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

EXCELLENCE. BEDROCK. LEADERSHIP. 12 P s. BEDROCK. LEADERSHIP. 12 P s. Tom Peters/

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

A leader is a dealer in hope. (+TPs writing room pics) A leader is a dealer in hope. Napoleon (+TPs writing room pics)

Leader Job One Paint Portraits of Excellence !

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

Nothing is so contagious as enthusiasm. Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

The role of the Director is to create a space where the actors and actresses can become more than theyve ever been before, more than theyve dreamed of being. Robert Altman, Oscar acceptance speech

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

You cant be a serious innovator unless and until you are ready, willing and able to seriously play.Serious play is not an oxymoron; it is the essence of innovation. Michael Schrage, Serious Play

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.

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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

incredible power of endurance p olitical colleague, on Nicolas Sarkozy, repeatedly written off by the public and the celestial powers of French politics (FT, )

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

Leadersdo people. Period. Leadersdo people. Period. Anon.

LeadersSERVE people. Period. LeadersSERVE people. Period. Anon.

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

Sorry, Ive got to gothe HR people get on me if I dont go do my shake hands- chat up duty president, large division of large company in the _______ industry

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

Normal = o for 800

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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. Avoid moderation! 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!

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. PEOPLE. Peculiar. Potent. Positive.

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. tompeters.com by K.Sriram, November 27, :17 AM)

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, shoutingGERONIMO! Bill McKenna, professional motorcycle racer (Cycle magazine )

Ger- on-i- mo !