Tom Peters’ EXCELLENCE. ALWAYS. Catalyst For Change National Black MBA Association Washington/17 September 2008

NOTE: To appreciate this presentation [and ensure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”

The 100 Year Storm

***Hubris Axiom [upon which Nobel prizes were won] : We can eradicate risk [with the new math, the new instruments ]. We can refine the eradication process ad infinitum [derivatives of derivatives of derivatives ]. A few tens of trillions of $$ of exposure—so what? We don’t want to be the first1st to bail—only wimps quit when they get their third consecutive $10M bonus at age 29. I got this because I’m smart—this was not repeat not luck; I deserved every damn penny. [Counter text: Fooled By Randomness—Nassim Nicholas Taleb]

***GreedDuh.

***Quant primacy Too much faith in super-smart intellectuals [Reminds me to the point of dotting of the “i”s and crossing of the “t”s of David Halberstam’s The Best & The Brightest—on the Vietnam quagmire] If you’re not a 100% quant convert, you’re “old school” and held up to ridicule—even if you’re Warren Buffett.

***Step shift in complexity Fact is, “it” became incomprehensible. Connectedness [in general, global] totally new and, again, incomprehensible.

***Perception Is Everything Financial markets are, by design, a house of cards—e.g., basic idea is to take a dollar of deposits and lend 10 based thereupon, depending on the depositors not to withdraw all at once. Emotions rule as much on Wall Street as at the football stadium!!!!!! Expectations are everything!!!!! Madness of crowds is just that—madness!!!!! It is axiomatic that house prices will rise and rise and rise—and then rise some more.

***Basics Rotten Mary and Joe couldn’t have paid the loan back if hell had frozen over—they were not, simply, creditworthy. The incentives were nutty—lend to anyone and everyone and collect the full commission when you book the loan and get fired if you don’t book it. [Message from In Search of Excellence, in another context, It’s the basics, stupid—Japan is killing us, circa 1980, because (1) their cars work and (2) they ask their workers how to make them even better.]

***Good Ideology Run Amok De-regulation = Holy. If de-regulation is good, then more is better.

***History Repeats Repeats Repeats Itself South Sea Bubble TulipsEtcEtcEtc S & L Junk bonds Dot-comSub-primeTKTKTK

***Thank God for Paulson—It’d Be Worse Without Him.

***No One Knows the Ending to This Story

***Black Swans Believe it: s%^& happens. [See Taleb once again— The Black Swan.] NB: Your response to one or two black swans is your life legacy—it’s easy to be a genius when the market is rising rising rising.

Slides at … tompeters.com

MBWA

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”

“Breakthrough” 82* People! People!Customers!Action!Values! *In Search of Excellence

Hard Is Soft Soft Is Hard

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

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

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

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

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

… no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

“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

“Leaders ‘SERVE’ people. Period.” “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf

“We Have … Thank you, Howard …

Internal organizational excellence* ** = Deepest “Blue Ocean”

Thank you, Herb …

“You have to treat your employees like customers.” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across the ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the way in Dallas American Airlines’ pilots were picketing the Annual Meeting) Annual Meeting)

Thank you Ben, Norm, Ike, and Delaware …

Give good tea!

“Allied commands depend on mutual confidence [and this confidence] is gained, above all through the development of friendships.” of friendships.” —General D.D. Eisenhower, Armchair General* (05.08) *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command it was a quality that would pay great dividends during his future coalition command

“eighty percent of success is showing up.” —Woody Allen

L(+21) = L(-21)

Leadership(21A.D.) = Leadership(21B.C.)

Thank you, Nelson Mandela …

Thank you, Rich …

“Mapping your competitive position”* or … *Rich D’Aveni/HBR

1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? * * * 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? * * *

The “Have you …” 50* *See Appendix One

Thank you, Conrad …

Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer …

Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “ remember to tuck the shower curtain inside the bathtub”

Thank you Dr. Groopman …

18”

“The four most important words in any organization are … ‘What do you think?’ ” are … ‘What do you think?’ ” Source: courtesy Dave Wheeler, posted at tompeters.com, source of posted at tompeters.com, source of original unknown ( ) original unknown ( )

Thank you, Walter …

??????? “Success doesn’t depend on the number of people you know; it depends on the number of people you know in high places!” or “Success doesn’t depend on the number of people you know; it depends on the number of people you know in low places!”

Loser: “He’s such a suck-up!” Winner: “He’s such a suck-down.”

George Crile (Charlie Wilson’s War) on Gust Avrakotos’ strategy: “He had become something of a legend with these people who manned the underbelly of the Agency [CIA].”

Thank you, Henry …

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

The Manager’s Book of Decencies: How Small /gestures Build Great Companies. The Manager’s Book of Decencies: How Small /gestures Build Great Companies. —Steve Harrison, Adecco

“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

Press Ganey Assoc: 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Kindness is free. “There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Thank you, Heather …

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

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

7/13

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

Thank you, Sheik Mohammad …

24%

Single greatest act of pure imagination

dubai

Thank you Larry and Jim …

*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007: $62,000,000

Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

#4 Japan #3 USA #2 China #1 Germany

Reason!!! Mittelstand

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

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

Thank you, Eleanor and Kevin …

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

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! 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!

Thank you, John …

1/40

you only find oil if you drill wells. “ 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

“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

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

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

Thank you, Fred …

4/40

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

“Execution is strategy.” —Fred Malek

Thank you, ____* *You are what you eat

We are the company we keep we keep

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”

Thank you, 7-11…

TP: TP: “How to flush $500,000 down the toilet in one easy lesson!!”

People! People!

#1 cause of Dis-satisfaction?

2/year = legacy.

53 = 53

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

“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

Brand = Talent.

To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

Thank you, Mike …

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

“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)