LONG Tom Peters EXCELLENCE. ALWAYS. Catalyst For Change National Black MBA Association Washington/17 September 2008

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

The 100 Year Storm

***Hubris Axiom [upon which Nobel prizes were won] : We can eradicate risk [with the new math, the new instruments ]. We can refine the eradication process ad infinitum [derivatives of derivatives of derivatives ]. A few tens of trillions of $$ of exposureso what? We dont want to be the first1st to bailonly wimps quit when they get their third consecutive $10M bonus at age 29. I got this because Im smartthis was not repeat not luck; I deserved every damn penny. [Counter text: Fooled By RandomnessNassim Nicholas Taleb]

***GreedDuh.

***Quant primacy Too much faith in super-smart intellectuals [Reminds me to the point of dotting of the is and crossing of the ts of David Halberstams The Best & The Brighteston the Vietnam quagmire] If youre not a 100% quant convert, youre old school and held up to ridiculeeven if youre Warren Buffett.

***Step shift in complexity Fact is, it became incomprehensible. Connectedness [in general, global] totally new and, again, incomprehensible.

***Perception Is Everything Financial markets are, by design, a house of cardse.g., basic idea is to take a dollar of deposits and lend 10 based thereupon, depending on the depositors not to withdraw all at once. Emotions rule as much on Wall Street as at the football stadium!!!!!! Expectations are everything!!!!! Madness of crowds is just thatmadness!!!!! It is axiomatic that house prices will rise and rise and riseand then rise some more.

***Basics Rotten Mary and Joe couldnt have paid the loan back if hell had frozen overthey were not, simply, creditworthy. The incentives were nuttylend to anyone and everyone and collect the full commission when you book the loan and get fired if you dont book it. [Message from In Search of Excellence, in another context, Its the basics, stupidJapan is killing us, circa 1980, because (1) their cars work and (2) they ask their workers how to make them even better.]

***Good Ideology Run Amok De-regulation = Holy. If de-regulation is good, then more is better.

***Thank God for PaulsonItd Be Worse Without Him.

***No One Knows the Ending to This Story

***History Repeats Repeats Repeats Itself South Sea Bubble TulipsEtcEtcEtc S & L Junk bonds Dot-comSub-primeTKTKTK

***Black Swans Believe it: s%^& happens. [See Taleb once again The Black Swan.] NB: Your response to one or two black swans is your life legacyits easy to be a genius when the market is rising rising rising.

Slides at … tompeters.com

MBWA

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

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

Hard Is Soft Soft Is Hard

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

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

Its always showtime. Its always showtime. David DAlessandro, Career Warfare

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

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

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

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

L(+21) = L(-21)

Leadership(21A.D.) = Leadership(21B.C.)

We Have … Thank you, Howard (Starbucks)!

Internal organizational excellence* ** = Deepest Blue Ocean

Thank you,Herb

You have to treat your employees like customers. Herb Kelleher, upon being asked his secret to success Source: Joe Nocera, NYT, Parting Words of an Airline Pioneer, on the occasion of Herb Kellehers retirement after 37 years at Southwest Airlines (SWAs pilots union took out a full-page ad in USA Today thanking HK for all he had done; across the ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines pilots were picketing the way in Dallas American Airlines pilots were picketing the Annual Meeting) Annual Meeting)

Thank you Ben, Norm, Ike, and Delaware

Give good tea!

Allied commands depend on mutual confidence [and this confidence] is gained, above all through the development of friendships. of friendships. General D.D. Eisenhower, Armchair General* (05.08) *Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command it was a quality that would pay great dividends during his future coalition command

eighty percent of success is showing up. Woody Allen

Thank you, Nelson Mandela …

Thank you, Rich …

Mapping your competitive position* or … *Rich DAveni/HBR

1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? * * * 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? * * *

The Have you … 50* *See Appendix One

Thank you, Conrad …

Conrad Hilton, at a gala celebrating his life, was asked, What was the most important lesson youve learned in you long and distinguished career? His immediate answer …

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

Thank you Dr. Groopman

18

The four most important words in any organization are … What do you think? are … What do you think? Source: courtesy Dave Wheeler, posted at tompeters.com, source of posted at tompeters.com, source of original unknown ( ) original unknown ( )

Thank you, Walter

Politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics politics

??????? Success doesnt depend on the number of people you know; it depends on the number of people you know in high places! or Success doesnt depend on the number of people you know; it depends on the number of people you know in low places!

George Crile (Charlie Wilsons War) on Gust Avrakotos strategy: He had become something of a legend with these people who manned the underbelly of the Agency [CIA].

Loser: Hes such a suck-up! Winner: Hes such a suck-down.

Thank you, Henry

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

The Managers Book of Decencies: How Small /gestures Build Great Companies. The Managers Book of Decencies: How Small /gestures Build Great Companies. Steve Harrison, Adecco

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

Press Ganey Assoc: 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patients health outcome PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Kindness is free. There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactionsalienating patients, being non-responsive to their needs or limiting their sense of controlcan be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperativerequiring far more time than it would have taken to interact with them initially in a positive way.Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Thank you Heather

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

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. Womens Womens 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]. Womens Womens leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women Women are better salespersons than men. Women Women buy [almost] everythingcommercial as well as consumer goods. So what exactly is the point of men?

7/13

!!!!!!!!!!!!!!!!! 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

Thank you Sheik Mohammad

24%

Single greatest act of pure imagination

dubai

Thank you Larry and Jim

*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007: $62,000,000

Jims Mowing Canada Jims Mowing UK Jims Antennas Jims Bookkeeping Jims Building Maintenance Jims Carpet Cleaning Jims Car Cleaning Jims Computer Services Jims Dog Wash Jims Driving School Jims Fencing Jims Floors Jims Painting Jims Paving Jims Pergolas [gazebos] Jims Pool Care Jims Pressure Cleaning Jims Roofing Jims Security Doors Jims Trees Jims Window Cleaning Jims Windscreens Note: Download, free, Jim Penmans book: What Will They Franchise Next? The Story of Jims Group

#4 Japan #3 USA #2 China #1 Germany

Reason!!! Mittelstand

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

The last word: There is no last word.

Thank you Eleanor and Kevin

Do one thing every day that scares you. Do one thing every day that scares you. Eleanor Roosevelt

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. 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!

Thank you John

1/40

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

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

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

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

Thank you, USG …

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

Thank you, Fred …

4/40

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

Execution is strategy. Fred Malek

Thank you, Gary …

We are the company we keep we keep

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

Normal = o for 800

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

Thank you, 7-11…

TP: TP: How to flush $500,000 down the toilet in one easy lesson!!

People! People!

Brand = 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

#1 cause of Dis-satisfaction?

2/year = legacy.

53 = 53

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

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

LeadersSERVE people. Period. LeadersSERVE people. Period. inspired by Robert Greenleaf

Thank you, Mike …

EXCELLENCE. BEDROCK. LEADERSHIP. THE 9Ps. THE 1M.

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. 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

Excellence can be obtained if you:... care more than others think... care more than others think is wise;... risk more than others think is wise;... risk more than others think is safe;... dream 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)