Tom Peters’ X25* EXCELLENCE. ALWAYS. Odebrecht/03 August 2007 *In Search of Excellence

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

Tom Peters’ X25* EXCELLENCE. ALWAYS. The airtight case for perpetual rev-o-lu-tion. Odebrecht/03 August 2007 *In Search of Excellence

“Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work

Buy a very large one and just wait.” “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Everything in existence tends to deteriorate”/ “Buy a very large one and just wait” = License (Mandate!) for Radical Approaches

The last word: There is no “last word.”

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

“ 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

tompeters.com Slides [incl LONG] at … tompeters.com

part one

EXCELLENCE. ASPIRATION

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

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 concerted human potential in the wholehearted service of others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” “To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson

All you need to know …

25

You = Your calendar* *Calendars never lie

All you need to know …

“Leaders ‘SERVE’ people. Period.” “Leaders ‘SERVE’ people. Period.” —Anon. (after Robert Greenleaf, Servant Leadership)

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

This is it: All you need to know …

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

“In business, you reward people for taking risks. When it doesn’t work out you promote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/ )

Tom Peters’ X25* EXCELLENCE. ALWAYS. *In Search of Excellence

EXCELL- ENCE???? EXCELL- ENCE????

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 1917 to “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 1917 to S&P 500 from 1957 to 1997 : 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Top half 30 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 ( )

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

EXCELLENCE. CIRCA 1982.

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

$85,000 $140,050 ExIn*: /Forbes.com DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 *Forbes/ Excellence Index /Basket of 32 publicly traded stocks

MP: “Get the strategy right, the rest will take care of itself.” TP: “Get the people and execution right, the strategy will take care of itself.”

EXCELLENCE Hard is soft. Soft is hard.

Hard Is Soft Soft Is Hard

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

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

EXCELLENCE. “the rules.”

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service/experience (worthy of our clients’ & extended family’s continuing custom) excellence (period) servant leadership

Cause Space Decency service/experience excellence servant leadership

Sir Richard’s Rules Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune/10.03

part two

EXCELLENCE. INNOVATE. OR. DIE.

EXCELLENCE. INNOVATION. THE REAL STORY. Tom Peters/

“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. “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

InnoTacs

revenue matters most

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

The Commerce Bank Model “cost cutting is a death spiral.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

We become who we spend with

Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board

“Normal” = “o for 800”

Concoct a Parallel universe!

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

“Parallel Universe” … China!!!!!!!

try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.

What makes God laugh?

People making plans!

do things.

“We have a ‘strategic plan.’ It’s called doing things.” “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher

try things.

“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 ready with wires and screws, we are on version # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg

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

Screw. things. Up.

“Fail. Forward. Fast.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania

No try. No deal.

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

1/50 (“He-she who tries the most stuff wins.”)

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”

Conscious measurement

Innovation Index: Top 5 8 or higher “Weird”/ “Profound”/ “Wow”/“Game- changer” Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird”/ “Profound”/ “Wow”/“Game- changer” Scale?

personal

Buy a Mirror! Step #1: Buy a Mirror!

EXCELLENCE. 4/40.

4/40 (Decentralization/Execution/Accountability/6:15A.M.)

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

Enemy #1 I.C.D. Note 1: Inherent/Inevitable/ Immutable Centralist Drift Note 2: Jim Burke’s 1-word vocabulary: “No.”

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

Ex-e- cu-tion!

systematic process “ Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

Ac-count- a-bil-ity!

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

CF: 30% (no salesfolk) MH: 80% (salesfolk)

6:15A.M.

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

part three

EXCELLENCE. VALUE ADDED. UP THE LADDER.

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

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

“M” = $0

$55B

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

“ ‘Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader

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

OPPORTUNITY-SEEKING Customer Success/ Transformational Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Transformational Solutions Services Goods Raw Materials

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

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

Full Partner- Leader in Lifetime Value-added Maximization “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)

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

how you do it = > what you do

Garth Thompson: Skill 10%, Attitude 90%

TGR [Things Gone WRONG/Things Gone RIGHT] TGR [Things Gone WRONG/Things Gone RIGHT]

The Case of the Missing Sherry Glass.

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

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

EXCELLENCE. SOUL. DESIGN.

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

EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S.

Lisbon/New Biz: Weeks to … Minutes (!!!!) Lisbon/New Biz: Weeks to … Minutes (!!!!)

Peo- ple

EXCELLENCE. INDIVIDUAL. BRAND YOU.

R.D.A.* Rate: 15%?, 25%? Therefore: Formal “Investment Strategy”/ R.I.P.** * R apidly D epreciating A sset ** R enewal I nvestment P lan

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

20 40 $25$80 2 “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” —Ed Michaels, War for Talent

INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

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

“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

EMPHASIZE THE “SOFT SKILLS.”

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

53 = 53

One size … NEVER … fits all.

Promise #1: “Never, ever again will I evaluate anyone using a standardized instrument devised by a “professional” in inhuman Resources.”

53 = 53

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

People! People!

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

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

Internal “brand promise”!

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.

TP: “How to throw away $500,000 in one easy lesson!!”

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

EXCELLENCE. BEDROCK. LEADERSHIP. 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.

“I am a … Dispenser of Enthusiasm!” —Ben Zander

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

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

25

“ 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.

Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” —Grant

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.

Leadership’s 10 th “P”: Promotion Leadership’s 10 th “P”: Promotion

2 per Year/ 20 per Decade = Excellence + Legacy

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

The “1E”

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

EXCELLEN ALWAYS.