Presentation on theme: "World Innovation Forum. ("— Presentation transcript:
1 World Innovation Forum. ( 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/
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
15 What “We” Know “For Sure” About Innovation Big mergers [by & large] don’t 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” aren’t 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
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 Hitler’s 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 Guderian’s 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 bysome small bits of Guderian’s forces, Guderian not a disciple ofthe WWI-derived “strategy of indirect approach”Source: Julian Jackson, The Fall of France
18 False Attributions German citizenry low morale, no appetite for war 3rd 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
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 Innovation’s “Secrets” Revealed: Get mad. Do something about it. Now.
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 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 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 —Jim Utterback, Mastering the Art of Innovation “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 flourish—and 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 apocalypse—the transition from a state of continuity to state of discontinuity—has 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 : 4X Source: The Company, John Micklethwait & Adrian Wooldridge ( : 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: I’m 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 companies—those 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? 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 % of the time — Profit /ROA leaders: “aggressively weed out customers who generate low returns” Source: Donald V. Potter, Wall Street Journal
48 “I don’t believe in economies of scale “I don’t believe in economies of scale. You don’t 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. “Microsoft’s Struggle With Scale” —Headline, FT, 09 Scale? “Microsoft’s Struggle With Scale” —Headline, FT, “Troubling Exits at Microsoft” —Cover Story, BW, “Too Big to Move Fast?” —Headline, BW,
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,”
51 “Almost every personal friend I have in the world works on Wall Street “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 I’m not sure we’re actually innovating. … Our challenge is to take nanotechnology into the future, to do personalized medicine …” —Jeff Immelt/2005
55 Bacteria. (“Left tail” limits. ) Productivity of small Bacteria. (“Left tail” limits.) Productivity of small. Failure rate of Big Mergers. Failure rate of Big Companies. Terrorists. Galbraith vs Hayek.
58 What “We” Know “For Sure” About Innovation Big mergers [by & large] don’t 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” aren’t 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” 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 hasn’t 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 industries” —Strategy+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
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 “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. ’ It’s called doing things “We have a ‘strategic plan.’ It’s 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 you’re finding it when you’re drawing maps andstudying 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 “Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.” —Al McDonald
78 “Realism is the heart of execution “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 “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)
82 —Michael Korda, Ulysses Grant “This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s 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 He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd
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 tothe detriment of today’s $$$ 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 decentralizing—tireless in pursuit of wiping outCentralizing 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. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner)14. Execution/Action Bias: Just do it … don’t obsess onhow 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 toretaining top talent (Virgin, GE, PepsiCo)
89 SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus fromthe get-go to the grave (GE, New York Yankees, PepsiCo)19. Up or Out (GE, McKinsey, consultancies and law firmsand ad agencies and movie studios in general)20. Competitive to a fault! (GE, New York Yankees, NewsCorp/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 fewCore Values, Open-minded about everything else(Virgin)
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 similar 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 “Consultants have drained a good deal of the life from our democracy. Specialists in caution, they fear anything they haven’t tested.” —Joe Klein, Politics Lost
95 Innovation’s 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, you’ll get only incremental advances.” —Joseph Morone, President, Bentley CollegeStrong language, no?
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 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 doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t 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 “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/ (commenting on Nokia)
102 “Don’t benchmark, futuremark “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson
103 Employees: “Are there enough weird people in the lab these days. ” V 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 times—see immediately above.)(5) Freaks are the only (ONLY) ones who succeed—as 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 “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)
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 can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s 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)? It’s 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. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s 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 taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company/
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 “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 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 can’t change because our brains become “hardwired” early in life Source: Fast Company/
118 What “We” Know “For Sure” About Innovation Big mergers [by & large] don’t 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” aren’t 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/JKCFind done deals-practicing mavericks/Stone-ReGoBell curves/2016 in 2006Non-industry benchmarkingEverything = PortfolioV.C.s all!Hot language/Wow-Astonish me-Insanely great-immortal-Make something greatLead customers/PW-EmbraerLead suppliers /Top decile R&DWeird alliancesMottos/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”CalendarBig Delta easier than SmallMBWA with freaks-weirdos/JKCMBWA/Boonies’ labsV.C.-formal/IntelAcquire weirdChildren’s crusadeOld farts crusadeGo Global at any sizeStop listening to customersTalent!/Unusual sources-Hire innovators-V.C.sEschew 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 plannersTempo!Final product bears little relation to starting notionDesign! Design! Design! (“culture,” not program)All innovation: Pissed-off peopleGut feel rules!Focus groups suckWeird focus groups okayBe-Do philosophy
122 CelebrationsCulture-little as well as big Inno (“everyone-an-innovator”)Life = Wow ProjectsAcknowledge messiness-pursue serendipity (Blitzkrieg-Containers-Science-Jim Utterback)R.F.A.Culture of execution4/40: decentralization, execution, accountability, 615AMEVP (S.O.U.B.)/Systems-process “un-design”Diversity for diversity’s sakeWomen-Women-Women/customers (they “are the market,” not a “segment”)-leadersBoomers-Geezers (“all the money”)
123 CRO (Chief Revenue Officer) “culture”/top-line obsessed CIO (Chief INNOVATION Officer)LaughterFacility-space configurationExperiments-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 “ARE YOU BEING REASONABLE? Most people are reasonable; that’s why they only do reasonably well.” Source: Paul Arden, Whatever You Think Think the Opposite
126 “TRAPPED. It’s not because you are making the wrong decisions “TRAPPED. It’s not because you are making the wrong decisions. It’s 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 “Making the safe decision is dull, predictable and leads nowhere new. The unsafe decision causes you to think and respond in a way you hadn’t 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 Harper’s Bazaar, Alexey Brodovitch, to the young Richard Avedon, destined to become one of the world’s 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 “Which slogan would you choose for the V&A? THE MUSEUM OF THE ARTS THE ART OF THE MUSEUM THE NEW V&A IT’S NOT FOR BORING OLD ARTS AN ACE CAFF WITH QUITE A NICE MUSEUM ATTACHED “In a museum, the first question is ‘Where’s 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 body—but 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/
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” “Strategic Thrust Overlay”* Sysco Microsoft (I’net, Search) GE (6-Sigma, Workout, etc.) GSK (7 CEDDs) Apple (Mac) Hyundai (et al.) (Electronics, etc.) *Different from Skunkworks
137 Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-TightProperties”
138 What is In Search of Excellence all about: People. Emotion. Engagement 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*: /Forbes.com DJIA: $10,000 yields $85,000 EI: $10,000 yields $140, *Excellence Index /Basket of 32 publicly traded stocks
142 The Peters Principles: Enthusiasm. Emotion. Excellence. Energy 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
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
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! McDonald’s (“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 company’s sales and profits, McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s 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 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. Women’s Market = Opportunity No Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.
177 The Perfect AnswerJill and Jack buy slacks in black…Pick one!
182 Source: Economist, April 15, page 73 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 women’s increased purchasing power; over the past decade the value of shares in “Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s 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
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, promotions—even 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 new giants, India and China.” —Economist, April 15 “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’ nest—eg: 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 thenew giants, India and China.” —Economist, April 15
191 44-65: “New Customer Majority” 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: She’s the most powerful consumer in America “WOMAN of the Year: She’s the most powerful consumer in America. And as she starts to turn sixty this month, the affluent baby boomer is doing what she’s always done—redefining herself.” —Joan Hamilton, Town & Country, JAN06
206 “ ‘Disintermediation’ is overrated “ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of irrelevance—disintermediation is just another way of saying that … you’ve become irrelevant to your customers.” —John Battelle/Point/Advertising Age/07.05
210 Are you the … “Principal Engine of Value Added” 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 The “PSF35”: 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 can’t explain your position in eightwords or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do whatwe do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling“Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Changethe World) 6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent theUniverse”—Steve 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 THEWORD (IDEA) “RADICAL”
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 Leadership’s 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
240 “The leaders of Great Groups love talent and know where to find it “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
244 Leadership 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 Don’t.” Two. 22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid of losingthan anxious to win.”)
245 Kevin Roberts’ Credo 1. Ready. Fire. Aim. 2. If it ain’t broke 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 Avoid moderation!
246 Sir Richard’s Rules: Follow your passions. Keep it simple Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson
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, he’d 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 me—and 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.)(Can’t 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. Punishmediocre 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. Wegman’s.” (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 stateof affairs. Master.)67. Student. Forever.68. “Why?” (Question #1.)69. Don’t 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 wishto 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. Don’t 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?)
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 outwith weird.)120. Weird = Win. (Weird times.)121. “The bottleneck is at the topof 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. Somebody’s doing it today. Find ’em.137. Someone is living 2016 in 2006.(Find ’em. Study ’em.)
274 138. Don’t “benchmark,” “futuremark.” ( 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 ofIntellectual 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. Includingcustomers. (Life. Too short.)156. Under-promise, over-deliver.157. Talent. (Powerful word.)158. “Customer = Anyone whose actionsaffect your results.”159. Competition stinks. (Seek the softspots 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. 165 163. Own up. Quick. ( Denial. Cancer.) 164. Celebrate. Often 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 Evaluation = “Life or death” to evaluee “360” evaluation. No fad Exit when you’re 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 don’t” = “To do.” (“To don’t” >“To do” ?)181. Leaders “Do” People. (Period.)182. Leaders enjoy leading.183. Serious leadership training = Serious.184. Priorities. Obvious. (Or else.)“Priorities” = 0 Priorities.(3 “Priorities” = 0 Priorities?)186. People. First. Last. Always.187. It. Is. Always. The. People.
278 188. Handshake. (Quantity. Quality. ) 189 188. Handshake. (Quantity. Quality.) 189. Don’t 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 Put the customer SECOND (Thanks, Hal.) 193. Flowers. (Or did I say that before? No matter if I did.) 194. Big Mergers don’t work. Small acquisitions can/do work—if you don’t screw with their energy.
279 195. Instinctively “head for the front line. ” (In all contexts. ) 196 195. 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-changingSolutions”): PSF (Professional ServiceFirm “model”) + Wow! Projects(“Different” vs “Better”) + Brand You (“Distinct” or “Extinct”)/2016 has already happened.Find it.
280 199. Kids “know” kids. Oldies “know” oldies. Women “know” women 199. Kids “know” kids. Oldies “know” oldies Women “know” women. (Staff accordingly.) 200. Everybody is my customer Cosset “vendors.” 202. I want to run a Housekeeping department (And you?) 203. The military doesn’t 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 don’t sleight.) 207. Don’t “dumb down.” Ever.
281 208. NO LESS THAN EXCELLENCE. EVER. 209. EXCELLENCE. ALWAYS.
282 Work In Progress XXX. One size fits. One. Only. (Evaluations. Period Work In Progress XXX. One size fits. One. Only. (Evaluations. Period.) XXX. Teaching. Individualized. Only. (6 billion people = billion learning trajectories.) (Montessori.) XXX. First impression. Matters. Shapes all that comes Hard to overcome. (Understatement.) XXX. Jerks. Don’t 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, AM-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/
284 This list was first prepared for GE Energy sales & marketing people in January It started with a half-dozen items, and grew like Topsy. Possibly, given its origins, it’s 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 1. “Strategy” overrated, simply “doin’ stuff” underrated. See Kelleher and Bossidy: “We have a ‘strategic plan,’ it’s 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 logic—ask 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 winners—think search & Google—start as something small. Many big deals—Disney & Pixar—could have been done as little-er deals if you’d had the guts to jump before the value became obvious.
286 6. Non-obvious targets have great potential 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. IT’S RELATIONSHIPS, STUPID—DEEP 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 logical—if you (deeply!) understand the matrix in which they exist.10. Relationships from within our firm are as important—often more important—as those from outside—again broad is as important as deep. Allies—avid 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 —Robert Louis Stevenson “Everyone lives byselling 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 enough—weirdos 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. Don’t short-change (time, money, depth) the proposal process. Miss one tiny nuance, one potential incentive that “makes my day” for a key Client player—and watch the whole gig be torpedoed.16. “Sticking with it” sometimes pays, sometimes not—it 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 RELATIONSHIPS—don’t get hung up—particularly in tech firms—on what industries-countries “women can’t do.” (Or some such bullshit.)
289 18. Work incessantly on your “story”—most economic value springs from a good story (think Perrier)! In sensitive public or quasi-public negotiations, a compelling story is of immense value—politics is about the tension among competing stories. (If you don’t 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 math—i.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 don’t listen, you don’t 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 don’t know Jack Squat about other peoples’ cultures—especially if you are a typically myopic American. (Like me.)26. Are you a great interviewer? It’s 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 life’s work—with stupendous payoff.28. Work like hell on the Big 2: LISTENING/INTERVIEWING, PRESENTING. These are “the essence of [sales] life”—and 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 Mackay’s “Mackay 66”—what you should know about a Client; e.g., birthdays & anniversaries.) (My “flowers budget” is out of control. Hooray for me.)30. You can’t do it all—be clear at what you are good at, bad at, indifferent at. Hubris sucks.
291 anything.” —Carolyn Marland/ “If you don’t listen,you don’t sellanything.” —Carolyn Marland/Managing Director/Guardian Group
292 31. The point is not to “prove yourself. ” (That’s ego-talk 31. The point is not to “prove yourself.” (That’s ego-talk.) Let the best person present to the Client—perhaps 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 haul—if 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.: “We”—the Client & me—“are going to change the world with this service.”)36. Don’t waste your time on jerks—it’ll 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 haven’t a clue as to how this situation will actually play out—be prepared to move fast in a different direction.39. Keep your word.40. KEEP YOUR WORD.41. Underpromise (i.e., don’t over-promise; i.e., cut yourself a little slack) even if it costs you business—winning 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 loss”—if you’ve 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. It’s 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 (GAMECHANGING—hopefully) COMPETITIVE ADVANTAGE!
294 44. Think “legacy”—what 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 can’t explain it in a phrase, a page, or to your 14-year-old ... you haven’t got it right yet.47. Know more than the next guy. Homework pays. (of course it’s obvious—but 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 man’s little stuff is another man’s 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 face—he will always remember you!)50. Don’t hold grudges. (It is the ultimate in small mindedness—and incredibly wasteful and ineffective. There’s always tomorrow.)
295 51. IT’S ALWAYS “THE POLITICS”—wee 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”: It’s 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 fish—you 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 competitor—the 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 answer—end 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 .
297 —Samuel Taylor Coleridge “Nothing is socontagious asenthusiasm.”—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, didn’t someone say, “Pride goeth before the fall”?66. Be hyper-organized about relationship management—you 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 cute—but deep political understanding pays the private-school tuition.)67. Obsess on ROIR (Return On Investment In Relationships).68. “THANK YOU” NOTES: World’s highest-return investment!!69. The way to anyone’s 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 winners—among adversaries at least as much as among “partners.”71. Your colleagues’ successes are your successes. Period. (Trust me, my greatest personal success—financially as well as artistically—has 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 don’t have the time. E. g 72. Lend a helping hand, especially when you don’t have the time. E.g. share relationships—the 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 Dad’s 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 thrill—and 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-ENTHUSIASTS—THEY 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. IT’S ALWAYS YOUR PROBLEM—you sold it to them.
300 77. It’s 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 as—if not more than*--important to the Continuing Relationship as the sale “transaction” itself. (*I vote for “more than.”) You’ll get your biggest “points” with the Client for being an effective after-the-fact go-between with your company.78. Don’t get too hung up on “systems integration”—first & foremost, the individual bits have got to work.79. For God’s sake don’t over promise on “systems integration”—it’s 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 BUSINESS”—no 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. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution”—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale)82. Shit happens. That’s what they pay you for.83. This is not a “GE” or “Ben & Jerry’s” sale—it is a Joe Jones/Jane Jones sale. YOU ARE THE “BRAND” THE CLIENT BUYS—especially over the long haul.84. Duh: You make money, the company makes money—on repeat business.85. Master—yes, you—the “PR” Game. “Word of Mouth” is not accidental! You want Word of Mouth? Make it happen!86. GOAL #1: MAKE YOUR CLIENT A HERO—YOU 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 can’t behave in a calm, rational manner. You’ve got to be out there onthe 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 fast—you 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 worth—it may take a decade to pay off—e.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. It’s all bloody tactics.94. You must ... LOVE .... the product! (Period.)95. YOU MUST LOVE THE PRODUCT!96. Don’t 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. Women’s 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 true—but 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.)
306 122. Luck matters. So: Good luck! 118. The smartest guy in the room rarely wins—alas, he usually is aware he’s thesmartest guy. (And needn’t waste his time on that “soft relationship crap.”)119. Be kind. It works.120. Be especially kind when there are screw-ups. (There’s plenty of time later toPlay 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 day’s events? Who is better at keeping in touch with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson