Tom Peters’ X25. EXCELLENCE. ALWAYS

Tom Peters’ X25. EXCELLENCE. ALWAYS
Tom Peters’ X25* EXCELLENCE. ALWAYS. Re-imagine2007/Focus Conferences Amsterdam/19 December *In Search of Excellence

Slides* at … tompeters.com *also “long”

Source: Anon. (Posted @ tompeters.com by
“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 possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

The Irreducible209

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.)

The Irreducible209+ One Word+ The Sales122 60TIBs Tom-A-to,Tom-ah-to

EXCELLENCE. ALL YOU NEED TO KNOW.

MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: Muhammad Yunus, Banker to the Poor

EXCELLENCE. ALL YOU NEED TO KNOW. BONUS.

“A man without a smiling face must not open a shop.” —Chinese Proverb

EXCELLENCE. ALL. YOU. NEED. TO. KNOW. ANYWHERE. ANY MARKET. ANY TIME.

Jim’s Group

That’s a Big Number ….

THREE BILLION NEW CAPITALISTS —Clyde Prestowitz

5 (Years) /42 (New Airports)

“There is no job that is America’s God-given right anymore
“There is no job that is America’s God-given right anymore.” —Carly Fiorina/HP/January2004

“There is no job that is _____’s God-given right anymore.”

“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02

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

“Forget China, India and the Internet: Economic Growth Is Driven by Women.”
—Headline, Economist, April 15, 2006, Leader, page 14

EXCELLENCE. EVERYWHERE. ASPIRATION. NECESSITY.

“One Singaporean worker costs as much as … … in Malaysia … in Thailand … in China … in India.” Source: The Straits Times/2003

“Thaksinomics” (after Thaksin Shinawatra) “Bangkok Fashion City”: “managed asset reflation” (add to brand value of Thai textiles by demonstrating flair and design excellence) Source: The Straits Times/2004

Spain Portugal Italy Ireland Singapore Taiwan Thailand Malaysia Singapore Philippines UAE Oman Chile Botswana Romania New Zealand

“Better By Design”: A National Strategy NZ = Design Excellence

“The Creative Age is a wide-open game
“The Creative Age is a wide-open game.” —Richard Florida, The Rise of the Creative Class

EXCELLENCE. THE MANDATE.

“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

“Forbes100” from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from 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

Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in The 1997 crisis “destroyed half of Korea’s 30 largest conglomerates.” Source: “KET Issue Report,” Kim Jong Nyun ( )

S&P Stability Ratings* Low Risk % % Average Risk % % High Risk 35% % *Likelihood of stable long-term earnings growth Source: Fortune (2 October 2006)

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

“It is generally much easier to kill an organization than change it substantially.” —Kevin Kelly, Out of Control

C.E.O. to C.D.O.

“Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” —Kevin Kelly, New Rules for the New Economy

RMcK: “A lot of companies in the Valley fail
RMcK: “A lot of companies in the Valley fail.” RN: “Maybe not enough fail.” RMcK: “What do you mean by that?” RN: “Whenever you fail, it means you’re trying new things.” Source: Fast Company

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

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

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

People. Product. Clients. Execution. Enthusiasm. Excellence. Resilience. Relentless. Senility.

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

—Jim Utterback, Mastering the Dynamics 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 Dynamics of Innovation

EXCELLENCE. THE WORD.

Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity

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”

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

EXCELLENCE. (MAYBE.)

Hardball: Are You Playing to Play or Playing to Win
Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press “The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.” Approximately 640 Index entries: Customer/s (service, retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0. Innovation (product development, research & development, new products), 0.

good words. Bad words.

Words that may NOT be used in my presence: “Motivate”

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

Words that may NOT be used in my presence: “Marketing”

Sell Sell Sell

Incidentally …

“TAKE THIS QUICK QUIZ: Who manages more things at once
“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

Words that may NOT be used in my presence: Customer service that … “Exceeds expectations”

“Radically Thrilling.”
Radically Thrilling Language! “Radically Thrilling.” —BMW Z4 (ad)

EXCELLENCE. ASPIRATION.

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

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.

Enterprise* ** (*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

EXCELLENCE. ASPIRATION. YOU & ME.

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

am going to do today?’” —Daniel Lamarre, president, Cirque du Soleil
“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

“Do one thing every day that scares you.” —Eleanor Roosevelt

EXCELLENCE. DEFINED.

EXCELLENCE. DEFINED. AGENDA. SETTER.

Great Companies … SET THE AGENDA.* (PERIOD.) * “disturb the sleep of …

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Toyota … Sears … GM … ITT … The Gap … Limited … Wal*Mart … Tesco … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Microsoft … Google … Enron … Schwab … GE … Laker … Southwest … People Express … Ogilvy … Virgin … eBay … Amazon … Sony … Amgen … BMW … CNN … Nike

Built to Last vs Built to Change/Rock the World

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

GM25/50-75: “Built to last”????

The last word: There is no last word.

U.S. Steel Ford GM IBM Macy’s Sears Microsoft? Dell? Wal*Mart?

Flat as a Pancake (Or Worse) Wal
Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE

EXCELLENCE. DEFINED. X06.

Commerce Bank: From “Service” to “Experience” 7X. 730A-800P. F12A
Commerce Bank: From “Service” to “Experience” 7X. 730A-800P. F12A.* *’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

Commerce Bank

The Power of WOW! How Commerce Bank Created a Super-Growth Business in a No-Growth Industry Vernon W. Hill, II

“Our whole story is growing revenue
“Our whole story is growing revenue.” —Vernon Hills (Top-line driven; standard is bottom-line driven by cost cutting)

8,000 Radio City Music Hall … J. D
8,000 Radio City Music Hall … J.D. Power/Customer service/Bank/NYC/1st in 5 of 6; 2nd in #6 … Inspired by Ray Kroc … $36B ($100B in 6 years); +$750M per month/373 branches in 7 states/900 in 6 years … player piano … Penny Arcade/$25K per machine … 9M lollipops, 2M dog biscuits … stupid rule (red) button … call center not “cost center,” but opportunity/human by second operation … over-invest in real estate … design-experience fanaticism … Red!/Red Friday/Hot music … deposits available next day (vs ½ on 3rd; ½ on 5th; focus on 99%, not 1%) … LONG HOURS!!!! (7/week/12 hours/Fridays/15 minutes before) … “Do whacky things for customers” (VH) … “create magical moments of surprise and delight for employees” (VH) … “Hire for attitude. Train for skills.” (VH) … Chinatown/10K first day; 28K first week … Commerce U in ’93 (“underlying theme is fun”—VH)

S. M. A. R. T. S. Say Yes (approval for “No”) M
S.M.A.R.T. S. Say Yes (approval for “No”) M. Make Each Customer Feel Special A. Always Keep Customer Promises R. Recover! (“To err is human, to recover is divine.”) T. Think Like Our Customers

“ … cut costs at most banks. ‘We have to push them out of the branches
“ … cut costs at most banks. ‘We have to push them out of the branches.’ ‘We have to push them to machines.’ We have to push them to the Internet.” Source: Vernon Hill

sewell

Customers for Life

FLOWER POWER

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

X.06: Whole Foods Markets … Starbucks … Wegmans … Commerce Bank … John Laing Homes … Apple … London Drugs … Griffin Hospital/ Planetree Alliance … The Met School/Big Picture … Carl Sewell … Progressive Insurance … Stanford women’s sports … Stanford D-School … HSM … Washington Speakers Bureau … Build-A-Bear … RE/MAX … Donnelly’s Weather Strip Service … Jim’s Group … Cirque du Soleil

Crazy for Patients! (“Whole person”). Wow!
High end. Experience. Design. Crazy for customers! Crazy for Patients! (“Whole person”). Wow! People first, second, third. Breakthrough or bust. “Seriously cool.” “Virus management.” Resilience. Tippy-top talent. “Solutions,” not “just” “satisfaction.” Engagement. Self-control. (Customer/Patient/Student control.) Blue Ocean. “Mundane stuff” made great. Great demographic. The best. Period. Effective partnering. K.I.S.S. Play to win. (Offense > Defense.) Bold! Action! Always! Integrity-as-strategy.

*Focused on growth and revenue and “offense,”
not defense and cost containment. *People-talent obsession. *Provide mind-bending experiences. (Driven by design primacy.) *Nuts about customers. *Happy to use words like “Wow.” *Pretty close to the high end of the market. [*Ability to make silk purses filled with gold out of sows’ ears: Wegmans-Whole Foods-Stew Leonard’s and groceries; Jim’s Group and dog-walking; Donnelly and weatherstrip installation; DeMar and plumbing.] *Execution!

EXCELLENCE. REVENUE. MATTERS. MOST.

“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

P = R – C

CRO* *Chief Revenue Officer

P = R – C + E CRO (Revenue) CPO/COO (Processes & Execution) CCO/CFO (Costs)

GE (more or less): The Sales122: 122 Ridiculously Obvious Thoughts About Selling Stuff Tom Peters/

EXCELLENCE. INNOVATE. OR. DIE.

“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

More than $$$$ #1 R&D spending, last 25 years?

“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

“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

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,

“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

“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

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

Spinoffs systematically perform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble” —Jerry Knight/ Washington Post/ 08.05

Private Equity-financed Firm, Best. Case. Focus. Focus. Focus
Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, “skin in the game” *CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight *Worst case: Rape & Pillage

There’s “A” and then there’s “A.”

EVERYTHING YOU THOUGHT YOU KNEW ABOUT INNOVATION IS WRONG

The Mess Is the Message! Period!

The Mess Is the Message. Period
The Mess Is the Message! Period! An Economic Interpretation of the Constitution of the United States —Charles Beard (1913) The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger —Marc Levinson Tube: The Invention of Television —David & Marshall Fisher Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World —Jill Jonnes The Soul of a New Machine —Tracy Kidder Rosalind Franklin: The Dark Lady of DNA —Brenda Maddox The Blitzkrieg Myth —John Mosier

InnoTacs

We become who we spend time with!

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

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

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

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

“[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time. One successful example Mr. Clean Magic Eraser, based on a product found in an Osaka market.” —Fortune,

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” “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

futuremark

“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

“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

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

Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears …
Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears …. Kmart Xerox …. Kodak, IBM

“Don’t benchmark, futuremark
“Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

Find ’em!

“Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.” —Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

Innovation “Tool”/“Source” # 1: Pissed Off Person/ People

invite ’em!

send ’em on a quest!

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.”

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

Concoct a Parallel universe!

“Venture” fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks

“SkunkWorks”/ “ParallelUniverse” “the 1% solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

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

“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 and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter

ready with wires and screws, we are on version
“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg

“We ground up more pig brains!”

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

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

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”

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

tolerate [encourage?] failure

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

“FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett

Sam’s Secret #1!

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

SERIOUS PLAY

“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play SORRY … I LOVE THIS. “SERIOUS PLAY” … OR … FUHGEDDABOUDIT!!!!!!!!!!!!!!!! No bull: I’m 57 … and I believe that this is … THE Truth. NO SHIT.

Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” —Michael Schrage

Think about It!? Innovation = Reaction to the Prototype Source: Michael Schrage
Call this … The Big DUH. You can’t get turned on by something … until … there is … SOMETHING TO GET TURNED ON BY. In Schrage-speak, the Reaction To The Prototype … IS THE INNOVATION. Tom-speak: YOU AIN’T DONE NOTHIN’ ’TIL YOU’VE DONE … SOMETHIN’!

“Learn not to be careful
“Learn not to be careful.” —Photographer Diane Arbus to her students (Careful = The sidelines, from Harriet Rubin in The Princessa)

“Experiment fearlessly” Source: BW0821
“Experiment fearlessly” Source: BW , Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1

Speed/ Tempo/ is-it

“We don’t sell insurance anymore. We sell speed
“We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

Wal*Mart (!) & Katrina

“the FedEx Economy” —headline/New York Times/10.08.05

“Any3”: Anything/ Anywhere/ Anytime

“UPS used to be a trucking company with technology
“UPS used to be a trucking company with technology. Now it’s a technology company with trucks.” —Forbes

Open-source Goldmining!
Rob McEwen, CEO, Goldcorp Inc. “Goldcorp Challenge”/ $575,000 Source: Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams

Power Tools For Power Strategies

Sysco!

Productivity! McKesson 2003-2004: Revenue … +$7B Employees … +500 Source: USA Today

“ebusiness is about rebuilding the organization from the ground up
“ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” —Ray Lane, Kleiner Perkins

5% F500 have CIO on Board: “While some of the world’s most admired companies—Tesco, Wal*Mart —are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value.” Source: Burson-Marsteller

bet big

“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

“[Immelt] is now identifying technologies with which GE will … systematically set out to build entirely new industries” —Strategy+Business, Fall 2005

No Wiggle Room. “Incrementalism is innovation’s worst enemy
No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

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/

Conscious measurement

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?

personal

Step #1: Buy a Mirror!

Inno64: Innovation Strategies & Tactics

Excellence: The SE22: ORIGINS OF SUSTAINABLE ENTREPRENEURSHIP

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 to the 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)

HP’s Big “Duh”! Decentralize ($90B) Undo “Matrix” Accountability Source: “HP Says Goodbye To Drama”/ BW/09.05/re Mark Hurd’s first 5 months

TP “Lessons Learned” Innovation = DisDis (Disciplined Disorganization) Luck is a very good thing.* ** (*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and try a lot of weird stuff, the odds of getting lucky go up remarkably) (**Career success depends on convincing others that you knew what the hell you were doing all along. Good news: Say it long enough and you will believe it. Great news: Keep saying it and you, too, can become a “guru.”)

SE22/Origins of Sustainable Entrepreneurship
18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/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 few Core Values, Open-minded about everything else (Virgin)

EXCELLENCE. 4/40.

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

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

“If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner

The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s

Ex-e- cu-tion!

“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

“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

Projects = Goal (“Vision”) Milestones = Project Rapid Review + Truth-telling = accountability

Ac-count-a-bil-ity!

“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)

6:15A.M.

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

EXCELLENCE. VALUE ADDED. UP THE LADDER.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

Planetary Rainmaker-in-Chief
Planetary Rainmaker-in-Chief! “Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” —Fortune

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004

MasterCard Advisors

“Security ‘devices’” to “Turnkey security solutions” (A/C, elevators, DIY, photo shops, etc, etc)

Huge: Customer Satisfaction versus Customer Success

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

The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials

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

Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

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

“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. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

EXCELLENCE. NECESSITY. OPPORTUNITY.

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

Chicago: HRMAC

“support function” / “cost center”/ “overhead” or …

Are you … “Rock Stars of the Age of Talent”

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

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

Core Mechanism: “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle) + Brand You (“Distinct” or “Extinct”/The Talent) + Wow! Projects (“Different” vs “Better”/The Work)

“Solutions World”: The Mega-PSF

Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm. )
Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)

Are you the … “Principal Engine of Value Added”. E. g
Are you the … “Principal Engine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?

The “PSF35”: Thirty-Five Professional Service Firm Marks of Excellence

The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we 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 Change the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—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 THE WORD (IDEA) “RADICAL”

Pointed Point of View!

Answer: PSF

EXCELLENCE. ATTITUDE. TRANSFORMATION. PSF.

“Purchasing Officer” Thrust #1: Cost (at All Costs
“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization Professional? Or/to: Full Partner-Leader in Lifetime Value-added Maximization? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

PSF Transformation: Credit Department/Trek Was Is Credit Dept Financial Services Hammer on dealers until Make dealers successful so they they pay CAN pay AR sold to 3rd party Trek is the commercial financial commercial co Company 23 employees employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/

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

Experience: “Rebel Lifestyle
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

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

CXO* *Chief eXperience Officer

“Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods: Male dominance Services & Experiences: Female dominance

EXCELLENCE. DRAMATIC. DIFFERENCE. DOABLE.

This is not a “mature category.”

This is an “undistinguished category.”

$415/SqFt/Wal*Mart $798/SqFt/Whole Foods

#1/100 “Best Companies to Work for”/2005

Wegmans

7X. 730A-800P. F12A.* *’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

EXCELLENCE. NO EXCUSES.

WallopWal*Mart16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company

Different” (La Difference ... within our community,
The “Small Guys” Guide: Wallop Wal*Mart16 *Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.) *Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *“Dramatically Different” (La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) *Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

tom peters: what I’ve Learned about “Small Business”

Passion for PRODUCT. OBSESSION With Product. LOVE The Product
Passion for PRODUCT. OBSESSION With Product. LOVE The Product. Aim To Be “ONLY ONES WHO DO WHAT WE DO.” Keep ADDIN’ Stuff. Invest “UNWISELY” in R&D. Reside Permanently In The DISCOMFORT Zone. “Unhealthy” PARANOIA Is A Good Thing. Add Clients That PUSH-PULL. SELL. SELL. SELL. SELL. Go For Broke: CUSTOMER CONTACT PEOPLE. PERFECTION: Customer Contact People. Hire for ATTITUDE. INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal. QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)

Small Giants: Companies That Choose To Be Great Instead Of Big —by Bo Burlingham

Small Giants/Bo Burlingham
"First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." "Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." "Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business -- a relationship that went well beyond the usual concept of `giving back.'" "Fourth, they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises."

Small Giants/Bo Burlingham
"Fifth, the companies also had what struck me as unusually intimate workplaces." "Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." "Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."

Stephen Jay Gould: Bacteria rule. Sizeable cases [e. g
Stephen Jay Gould: Bacteria rule! Sizeable cases [e.g. humans] are virtually irrelevant anomalies.

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

DREAM: “A dream is a complete moment in the life of a client
DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

Furniture vs. Dreams “We do not sell ‘furniture’ at Domain
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

“No longer are we only an insurance provider
“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams —whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.” —Martin Feinstein, CEO, Farmers Group

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

CDM* *Chief Dream Merchant

“Dreams Come True”: IBM

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

EXCELLENCE. VALUE-ADDED LADDER IV. LOVE IT.

Kevin Roberts: Lovemarks!

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

Top 10 “Tattoo Brands”. Harley. … 18. 9% Disney. 14. 8 Coke …. 7
Top 10 “Tattoo Brands”* Harley .… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo … *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

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

CL O* *Chief Lovemark Officer

Ladder.2006: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. SOUL I. THE STORY.

“Storytelling is the core of culture
“Storytelling is the core of culture.” —Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Market Power = Story Power

Best story wins!

“We are in the twilight of a society based on data
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen Institute for Future Studies

CSTO* *Chief Storytelling Officer

EXCELLENCE. SOUL II. DESIGN.

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga

“Design is treated like a religion at BMW.” —Fortune

“We don’t have a good language to talk about this kind of thing
“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” —Steve Jobs

CDO* *Chief Design Officer

EXCELLENCE. WHAT MATTERS.

“What Isn’t Matter Is What Matters” —section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

VA “Teaching Moment” “Andy pointed to a molding, about halfway up the wall …”

The Boot … and Timberland The Tomato/ Farmer … and Campbell’s

EXCELLENCE. NEW MARKETS. ENORMOUS. OPPORTUNITIES.

women. BOOMERS. GEEZERS.

E-nor-mous Strat-eg-ic opp-or-tun-ity

EXCELLENCE. OPPORTUNITY. ENORMOUS. WOMEN.

“Idiot” is too kind a word.

“That’s a very diverse* team.”
—Patrick Cescau, CEO, Unilever** *1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.) **Approximately 85% of Unilever’s products are purchased by … women.

EXCELLENCE. FOUND. DUH.

“To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/CEO/PepsiCo

“To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/ FORMER CEO/PepsiCo

Indra Nooyi

“P&G does more than half its business outside the U.S.,
A[nother] Delightful Blinding Flash of the Obvious!* ** “P&G does more than half its business outside the U.S., so [CEO A.G.] Lafley has recast his top executive group to be 50% non-American.” —Fortune, *I’ll take it! **Women next? 85%?

EXCELLENCE. OPPORTUNITY. ENORMOUS. WOMEN.

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

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

More than 9 in 10 women age 35 - 49 say they
The “91% Factor”! More than 9 in 10 women age say they either make or at least equally influence their household purchases of home electronics. Source: Andrea Learned, co-author, Don’t Think Pink

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

91% women: ADVERTISERS “DON’T UNDERSTAND US. ” (58% “ANNOYED
91% women: ADVERTISERS “DON’T UNDERSTAND US.” (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

The Perfect Answer Jill and Jack buy slacks in black… Pick one!

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

EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early
“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

“Women don’t buy brands. They join them.” EVEolution

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

Editorial/Men: Tables, rankings
Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK)

Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women

2.6 vs. 21

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.

P-l-e-a-s-e Read … Fara Warner: The Power of the Purse

Cases! Cases! 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

Faith, Lys, Marti, Fara … Targeting the New Professional Woman: How to Market and Sell to Today’s 57 Million Working Women —Gerry Myers

rise of 13%.” —Economist, April 15
“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%.” —Economist, April 15

EXCELLENCE. OPPORTUNITY. WOMEN. BUSINESS. OWNERS.

today.” —Margaret Heffernan, How She Does It
“The growth and success of women-owned businesses is one of the most profound changes taking place in the business world today.” —Margaret Heffernan, How She Does It

94% of loans to … women* *Microlending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

WOMEN. DOMINATE. ECONOMIC. GROWTH.

“Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14

“Since 1970, women have held two out of every three new jobs created
“Since 1970, women have held two out of every three new jobs created.” —FT,

Impact! Add It Up! Primary markets/Everything (“Men buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.) Greater global workforce participation rate (“bigger contributor to GDP growth than technology, China, India”—Economist) Higher wages (more seniority, promotions—even if not to CEO; greater pay equity—even if not equal) Business “decision makers” (more seniority, promotions—even if not to CEO) Women-owned businesses (answer to the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

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

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

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by women.” —Aude Zieseniss de Thuin, Financial Times,

COROLLARY. EXCELLENCE. WOMEN. RULE.

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

Women’s Negotiating Strengths
Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

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

New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths
New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/F Dreams Come True/F Spellbinding Experiences/F Gamechanging Solutions/F Services/F Goods/M Raw Materials/M

EXCELLENCE. OPPORTUNITY. ENORMOUS. BOOMERS. GEEZERS.

Subject: Marketers & Stupidity “It’s 18-44, stupid!”

Subject: Marketers & Stupidity Or is it: “18-44 is stupid, stupid!”

“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, they’re yours for life.’ What nonsense!” —Marti Barletta, PrimeTime Women

2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

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

BoomerBucks. Boomer turns 50: every 7 seconds. 2009: majority of U. S
BoomerBucks! Boomer turns 50: every 7 seconds : majority of U.S. households headed by someone over : U.S. population up 22.9 million; 22.1 million in over-50 group : 1 in 5 adults is F, over Women between who are single: 35%. Age 45-54: highest average income, $59, 021 (national average is $42,209). FASTEST GROWING INCOME CATEGORY: WOMEN, (4X men in same category). Women, age 60-64: 50% still in workforce. Highest net worth: families, ($182,000). People over 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. Next 2 decades: BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLION (“largest intergenerational transfer of wealth in history”). —Marti Barletta, PrimeTime Women

Average # of cars purchased per household, “lifetime”: 13 Average # of cars bought per household after the “head of household” reaches age 50: 7 Source: Marti Barletta, PrimeTime Women

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” —Marti Barletta, PrimeTime Women

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

“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

Possession Experiences /“Desires for things”/Young adulthood/to 38 Catered Experiences/ “Desires to be served by others”/Middle adulthood Being Experiences/“Desires for transcending experiences”/Late adulthood Source: David Wolfe and Robert Ageless Marketing

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

“Sixty Is the New Thirty” —Cover/AARP

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

not. Yet. Done.

Just Say “No” (!): Launch an “Initiative.”

Women’s Trifecta+. Buy/all. Wealth/all
Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better Eclipse of males/whoops (Retire-old/Poorly educated-young)

Boomers’-Geezers’-Women’s Trifecta+. Buy/all. Wealth/all
Boomers’-Geezers’-Women’s Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die

E-nor-mous Strat-eg-ic opp-or-tun-ity

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

“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

CtaO* *Chief talent acquisition Officer

INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

“The role of the Director is to create a space where the actor or actress can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance

CQO* *Chief quest-meister

EMPHASIZE THE “SOFT SKILLS.”

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)

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

Second: Putting HR on a par with finance and marketing.
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. Second: Putting HR on a par with finance and marketing.

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

“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

PARC’s Bob Taylor: “Connoisseur of Talent”

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

< CAPEX > People!

LIVE FOR TALENT!

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”!

What’s your company’s … 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

Brand = Talent.

Re-imagine People Power: The Talent50

EXCELLENCE. WOMEN. RULE.

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

EXCELLENCE. INDIVIDUAL. BRAND YOU.

“One of the defining characteristics [of the change] is that it will be less driven by countries or corporations and more driven by real people. It will unleash unprecedented creativity, advancement of knowledge, and economic development. But at the same time, it will tend to undermine safety net systems and penalize the unskilled.” —Clyde Prestowitz, Three Billion New Capitalists

Core Mechanism: “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle) + Brand You (“Distinct” or “Extinct”/The Talent) + Wow! Projects (“Different” vs “Better”/The Work)

“If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired

New Work SurvivalKit.2006 1. MASTERY! (Best/Absurdly Good at Something!) 2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!) 3. A “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty) 5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring “interesting you” to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer) 12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)

“The only thing you have power over is to get good at what you do
“The only thing you have power over is to get good at what you do. That’s all there is; there ain’t no more!” —Sally Field

“You are the storyteller of your own life, and you can create your own legend or not.” —Isabel Allende

Distinct … or … Extinct

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

Getting to WOW Through Mastery of … The Sales25.

Getting Things Done: The Power & Implementation34.

Presentation Excellence: The PresX56

The Interviewing Excellence: The IntX31

EXCELLENCE. MOTIVATIONAL STUFF.

EXCELLENCE. AWOL: THE SCHOOLS FIASCO.

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA!

“How many artists are there in the room
“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is: Every school I visited was participating in the systematic suppression of creative genius.” Source: Gordon MacKenzie, Orbiting the Giant Hairball

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers. Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” —Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

15 “Leading” Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002/Research by Thomas Lockwood

*B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)
M.I.A.*: Talk. (Present.) Listen. (Interview.) Sell. (Life = Sales.) Do. (Execution-Implementation.) Talent. (Recruit-Develop-Retain.) Project Management. (Create. Solicit support. Execution. Adoption-Client “Culture Change.”) Product. (“It.”) Innovation. (Design. Creativity. “Buzz-building.” Politics.) Leadership. (USMA, etc.) E.Q. (Connect.) “Culture” Change. (Lasting impact.) Diversity. (Cross-cultural Effectiveness.) Career Creation. (Brand You life-lifestyle.) Wellness. (Life.) *B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

New Economy Biz Degree Programs MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Woman/Man Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)

EXCELLENCE. BEDROCK. LEADERSHIP.

EXCELLENCE. BEDROCK. LEADERSHIP. 9Ps. L23.

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

“People want to be part of something larger than themselves
“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)

“Management has a lot to do with answers
“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

Ah, kids: “What is your vision for the future
Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?”

“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.” —Peter Drucker

“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

“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.” Gandhi

—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

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

Man and Superman: The Revolutionists' Handbook.
"The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” —GB Shaw, Man and Superman: The Revolutionists' Handbook.

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

—Bill McKenna, professional motorcycle racer (Cycle magazine)
"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)

“Leaders ‘do’ people. Period.” —Anon.

“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

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!

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. Michelangelo

EXCELLENCE. THE LEADERSHIP23.

Leadership23/ML 1. 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.

16. “Reward excellent failures. Punish
Leadership23/ML 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 losing than anxious to win.”)

Enthusiasm Energy Exuberance Voracious Curiosity Irritability/Dis-satisfaction Relentlessness Self-reliance “Closer” (Execution) excellence

Source: Anon. (Posted @ tompeters.com by
“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 possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

EXCELLE ALWAYS.

Tom Peters’ X25. EXCELLENCE. ALWAYS

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