Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation— now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under- attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point!

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

Tom Peters’ X25* EXCELLENCE. ALWAYS. World Marketing and Innovation Forum Madrid/19 November 2007 *In Search of Excellence

#1/14

“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)

If Not Excellence, What? What?

#2

25

#3-4

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

“Execution is strategy.” —Fred Malek

TGR TGR

#5

“one idea.” “one idea.”

What makes God laugh?

People making plans!

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.

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

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

“The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly

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

#6

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

Headline, Wall Street Journal, 3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed” Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”

Built to Change/Rock the World Built to Last vs Built to Change/Rock the World

#7

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

People! People!

Brand = Talent.

#7A

#7B

53 = 53

#7c

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

“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

#7d

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

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

#8

“ 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!

#8a

“Every child is born an artist. The trick is to remain an artist.” —Picasso

His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills “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!

Design 0 Creativity 0 Innovation 0 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

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

Muhammad Yunus: “ All human beings are entrepreneurs. When we were in the caves we were all self- employed... finding our food, feeding ourselves. That’s where human history began... As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/2006 Nobel Peace prize winner, father of micro-lending /The News Hour—PBS/

#9

Single greatest act of pure imagination

24%

dubai

$20,000,000,000 $20,000,000,000

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

3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture Source: Title/Cover Story, BW, ( “What’s remarkable is how fast a culture can be torn apart,” 3M lead scientist; “In an innovation economy, [6 Sigma] is no longer a cure all”/BW)

#10

“Strive for Excellence. Ignore success.” “Strive for Excellence. Ignore success.” —Bill Young, race car driver (courtesy Andrew Sullivan)

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

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

“ I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. is said and done, a/the “house” in which most of us “live” most of the time.

Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which are … 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 jointly perceived soaring purpose and personal and community and client service Excellence.

#11

I’m so angry I could scream* (*so I will!)

Rocket Science? Buffett I: But what about the value of the underlying asset?

#11A

Hard Is Soft Soft Is Hard

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

—it is the game.” “ If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game —it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance

#11B

Hard Is Soft Soft Is Hard

95%

“What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table

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 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 21 st -century negotiator will need the female touch”

#11C

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

Women Leaders’ Time Has Come … Project team (old): 23 people, all from our company (More or less amenable to “orders”) Project team (new): 43 people from 7 companies in 4 countries on 3 continents (Moved only by effective persuasion and development of common commitment) “Worker,” circa 1982: Rote work, incl. most white-collar work (Amenable to “orders,” power exercised directly) “Worker,” circa 2007: Project work, team work, mixed- group work, creative work, co-creation with client— microprocessors do the “rote stuff” (Commitment is voluntary, leadership is by developing positive relationships, inducing “creatives” to stretch, power exercised indirectly)

“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 “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?” Selling Is a Woman’s Game: 15 Powerful Reasons Why with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

#11d

Hard Is Soft Soft Is Hard

R.O.I.R.

R eturn O n I nvestment In R elationships

#11e

THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.

“I’m really sorry.” “I’m really sorry.”

#12

Don’t forget the “it”!

“It suddenly occurred to me …

“It suddenly occurred to me that in the space of two or three hours he never talked about cars.” —Les Wexner “It suddenly occurred to me that in the space of two or three hours he never talked about cars.” —Les Wexner

“Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth for my 19-year-old daughter Anne because of this deal?” Did one of ’em ever turn to the other and say: “Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth for my 19-year-old daughter Anne because of this deal?”

#12A

Who buys-uses “it”/1: Sunset for men!

“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

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

“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%.” of 13%.” —Economist, April 15

Cases! Cases! Cases! McDonald’s Home Depot P&G DeBeers AXA Financial Kodak Nike Avon Bratz 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

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?

For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” “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 a woman.” —Aude Zieseniss de Thuin, Financial Times,

#12B

Who buys-uses “it”/2: Sunrise for old folks!

!!!!!!!!!!!!!!!!! “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

7/13

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

We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the next twenty- five years. We have arrived!

#13

“gurugate”: The Gurus’ fixation with “the wrong stuff”* *Not “they,” but “us.”

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

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

“Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long- term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

Dick Kovacevich: You don’t get better by being bigger. You get worse.”

#4 Japan #2T china #2t USA #1 Germany

Reason!!! Mittelstand

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

Jim’s Group

Jim’s Mowing 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

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

“Natural selection is death.... Without huge amounts of death, organisms do not change over time.... Death is the mother of structure.... It took four billion years of death... to invent the human mind...” — The Cobra Event

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

Mission impossible? $36B/’98 minus $675M/‘07

Market capitalization lost per day, : $10,000,000/Day

* Lived in same town all adult life *First generation that’s wealthy/ no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko

The “Fabulous Five”: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs! The “Fabulous Five”: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs!

#14

And in conclusion …

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

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

If Not Excellence, What? What?