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

tompeters.com Slides at … tompeters.com

EXCELLENCE. ALL YOU NEED TO KNOW.

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“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.” “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

EXCELLENCE. THE MANDATE.

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

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

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

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

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

EXCELLENCE. PETERS. WATERMAN. CIRCA 1982.

Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties” Properties”

EXCELLENCE. ASPIRATION.

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

An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others 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.

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

EXCELLENCE. BEDROCK. TALENT.

People Power: The Talent 50 People Power: The Talent 50

1. People First!

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

Whoops: Jack didn’t have a vision!* *GE = “Talent Machine” (Ed Michaels)

2. Soft Is Hard.

Message: Leading “Talent” is all about Emotion: Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.

3. FUNDAMENTAL PREMISE: We Are in an Age of Talent/Creativity/ Intellectual-capital Added.

Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind

4. Talent “Excellence” in Every Part of Every Organization.

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

5. P.O.T./ Pursuit Of Talent = OBSESSION.

“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

6. Talent Masters Understand Talent’s Intangibles.

Visibly energetic /Passionate/Enthusiastic … about everything. Engaging/Inspires others. (Inspires the interviewer!) Loves messes & pressure. Impatient/ Action fanatic. A finisher. Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about her work.) Smart. Curious/ Eclectic interests/ A little (or more) weird. Well-developed sense of humor/ Fun to be around. ****** No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while working with X?” /“How has the department/team grown on a ‘world-class’ scale during X’s tenure?”)

7. HR Is “Cool.”

“support function” / “cost center” / “bureaucratic drag” or … “support function” / “cost center” / “bureaucratic drag” or …

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

8. HR Sits at The Head Table.

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 a par with finance and marketing. and marketing.

9. Re-name “HR.”

Talent Department

10. There Is an “HR Strategy”/ “HR Vision”

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. 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

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 challenges, rapid professional growth, wholesale respect, deep satisfaction, fun, stunning opportunities, exceptional rewards, amazing peer group, full membership in Club Adventure, maximized future employability EVP/IBP = Remarkable challenges, rapid professional growth, wholesale respect, deep satisfaction, fun, stunning opportunities, exceptional rewards, amazing peer group, full membership in Club Adventure, maximized future employability

11. Acquire for Talent!

Omnicom's acquisitions: “not for size per se”; “buying talent;” “deepen a relationship with a client.” Source: Advertising Age

12. There Is a FORMAL Recruitment Strategy.

“Busy Executives Fail To Give Recruiting Attention It Deserves” —Headline, WSJ, “Busy Executives Fail To Give Recruiting Attention It Deserves” —Headline, WSJ,

Cirque du Soleil !

13. There Is a FORMAL Leadership Development Strategy.

DD: 0 to 60mph in a flash (months)

14. There is a “World Class” Leadership Development CENTER.

Crotonville!

15. There Is a FORMAL STRATEGIC HR Review Process.

“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.” “In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.” —Ed Michaels

16. “People”/ Talent” Reviews Are the FIRST Reviews.

17. HR Strategy = BUSINESS Strategy.

Wegmans: #1/100 Best Companies to Work for 84%: Grocery stores “are all alike” 46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup) “Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, grocery consultant “ You cannot separate their strategy as a retailer from their strategy as an employer.” — Darrell Rigby, Bain & Co.

18. Make it a “Cause Worth Signing Up For.”

“People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” —Howard Schultz, Starbucks (IBD/09.05)

19. Unleash “Their” Full Potential!

“Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” “Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.” —Tim Hall et al., “The New Protean Career Contract”

A “Life Success Company” RE/MAX: A “Life Success Company” Source: Everybody Wins, Phil Harkins & Keith Hollihan

20. Set Sky High Standards.

Did We Say “Talent Matters”? “The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but 10,000X.” —Nathan Myhrvold, former Chief Scientist, Microsoft

21. Enlist Everyone in Challenge Century21.

Distinct … or … Extinct

22. Pursue the Best!

From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

23. Up or Out.

“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.” “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

24. Ensure that the Review Process Has INTEGRITY.

25 = 100* 25 = 100* * “But what do I do that’s more important than developing people? I don’t do the work. They do.”—GK

25. Pay Up!

“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” “Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” —Ed Michaels, War for Talent

26. Training I: Train! Train! Train!

26.3

“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” “Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0

27. Training II: 100% “Business People.”

“ 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.” “ 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

28. Training III: 100% LEADERS.

“I start with the premise that the function of leadership is to produce more leaders, not more followers.” — Ralph Nader

29. Training IV: Boss as Trainer- in-Chief.

“Workout” = 24 DPY in the Classroom

30. Training V: The REAL Bedrock of the “Talent Thing.”

“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!

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

31. Wide-open Communication: NO BARRIERS.

“ The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” — Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits

32. Respect!

“What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change

“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

33. Embrace the Whole Individual.

“Be kind, for everyone you meet is fighting a great battle.” “Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria

34. Build Places of “Grace.”

Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness... benevolence … benefaction … compassion … beauty

35. MBWA*: Visible Leadership! *Managing By Wandering Around

“The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.” “The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.” —John Keegan, The Mask of Command

36. Thank You!

“The deepest human need is the need to be appreciated.” —William James

37. Promote for “people skills.” (THE REST IS DETAILS.)

When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in Execution “ When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Honeywell/AlliedSignal, in Execution

38. Honor Youth.

“Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” “Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” The Economist

39. Provide Early Leadership Assignments.

The WOW! Project

40. Create a FORMAL System of Mentoring.

W. L. Gore Quad/Graphics

41. Diversity!

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

“We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor.” “We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor.” —Larry Johnston, CEO, Albertsons

42. SERVE.

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

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

43. Hire (& Protect!) Weird!

The Cracked Ones Let in the Light “Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non- conformists, dissenters and rebels.” —David Ogilvy

44. We Are Each Unique.

53 Players = 53 Projects = 53 different success measures.

45. Capitalize on Strengths.

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

“ The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know

46. Bosses “Win People Over.”

“Coaching is winning players over.” PJ: “Coaching is winning players over.”

47. GOAL: Voyages of Mutual Discovery.

Quests!

48. Foster Independence.

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

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

49. Enthusiasm!

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

50. Talent = Brand.

The Top 5 “Revelations” Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent

Brand = Talent.

“I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke

EXCELLENCE. BEDROCK. LEADERSHIP. THE 9Ps.

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

“People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” — Howard Schultz, Starbucks (IBD/09.05)

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

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

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

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

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

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

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“ You must be the change you wish to see in the world.” “ You must be the change you wish to see in the world.” Gandhi

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

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.” "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.

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

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

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

1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. Avoid moderation! Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

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

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

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

“Excellence can be obtained if you:... care more than others think is wise;... risk more than others think is safe;... dream more than others think is practical;... expect more than others think is practical;... expect more than others think is possible.” is possible.” Source: Anon. tompeters.com by K.Sriram, November 27, :17 AM)

EXCELLE ALWAYS.