Tom Peters’ X25* EXCELLENCE. ALWAYS. JIWA Training/Khobar/16January2007 *In Search of Excellence

tompeters.com Slides at … tompeters.com

EXCELLENCE. ALL YOU NEED TO KNOW.

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EXCELLENCE. THE MANDATE.

“ 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

EXCELLENCE. STARTERS. BASICS. K.I.S.S.

Raging Success = P-SQUARED. C. E-CUBED.

People. Product. Clients. Execution. Enthusiasm. Excellence.

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

EXCELLENCE. PETERS. WATERMAN. 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”

EXCELLENCE. ASPIRATION.

“Why in the world did you go to Siberia?”

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. 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.

EXCELLENCE. ASPIRATION. YOU & ME.

“Every time we come to a comfort zone, we will find a way out. … A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil

EXCELLENCE. INNOVATE. OR. DIE.

“ I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/Wells Fargo

Our challenge is to create markets. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” — Peter Job, former CEO, Reuters

InnoTacs

We become who we spend time with!

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 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 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. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.

“Experiment fearlessly” “Experiment fearlessly” Source: BW , Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

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

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

tolerate [encourage?] failure

“Fail. Forward. Fast.” “Fail faster. Succeed Sooner.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania “Fail faster. Succeed Sooner.” David Kelley/IDEO

Sam’s Secret #1!

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

Speed/ Tempo/ is-it

FedEx Economy “the FedEx Economy” —headline/New York Times/

Anything/ Anywhere/ Anytime “Any3”: Anything/ Anywhere/ Anytime

Power Tools For Power Strategies

Conscious measurement

Innovation Index: Top 5 8 or higher “Weird”/ “Profound”/ “Wow”/“Game- changer” 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?

EXCELLENCE. 4/40.

4/40

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

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” — Brian Joffe/BIDvest

Ex-e- cu-tion!

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

systematic process “ 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

Ac-count- a-bil-ity!

“GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” —Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

6:15A.M.

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

EXCELLENCE. VALUE ADDED. UP THE LADDER.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

$55B

Huge: Customer Satisfaction versus Customer Success

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

OPPORTUNITY-SEEKING Gamechanging Solutions/Business Advantage The Value-added Ladder/ OPPORTUNITY-SEEKING Gamechanging Solutions/Business Advantage Services Goods Raw Materials

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

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

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

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

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

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

“Dreams Come True”: IBM

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

20 40 $25$802 “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 doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

is free to do his or her absolute best.” allow its members to discover their greatness.” 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.”

“free to do his or her absolute best” … “allow its members to discover their greatness.” Leadership’s Mt Everest/Mt Excellence “free to do his or her absolute best” … “allow its members to discover their greatness.”

EMPHASIZE THE “SOFT SKILLS.”

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

A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. Putting HR on a par with finance and marketing. Second: Putting HR on a par with finance and marketing.

SO YOU’RE A “PEOPLE PERSON”? PROVE IT.

“Connoisseur of Talent” PARC’s Bob Taylor: “Connoisseur of Talent”

SO YOU’RE 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

Internal “brand promise”!

EVP/ IBP What’s your company’s … EVP/ IBP?* *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP

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

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

Brand = Talent.

Discover what is unique about each person and capitalize on it.” “The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … Discover what is unique about each person and capitalize on it.” —Marcus Buckingham, The One Thing You Need to Know

EXCELLENCE. BEDROCK. LEADERSHIP. THE 9Ps.

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

“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)

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

“ Nothing is so contagious as enthusiasm.” “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge

“Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” “Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” —Peter Drucker

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

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

become more than they’ve ever been before, more than they’ve dreamed of being.” “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

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

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The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” “The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” —RG

“ 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

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

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

“ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author

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)

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

“Leaders ‘do’ people. Period.” “Leaders ‘do’ people. Period.” —Anon.

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

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

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

1. Ready. Fire! Aim. 2. If it ain’t 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 ain’t 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. PERSISTENCE. PEOPLE. Potent. Positive.

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

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. PERSISTENCE. PEOPLE. 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)

EXCELLE ALWAYS.