Tom Peters’ X25* EXCELLENCE. ALWAYS. ESPN/15August2007 PART 1 *In Search of Excellence

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

“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)

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

Tom Peters’ X25* EXCELLENCE. ALWAYS. ESPN/15August2007 PART 1 *In Search of Excellence

tompeters.com Final slide set will appear at … tompeters.com

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Bill Walsh

Bill Walsh 1931 –

Bill Walsh 1931 – Superbowl Wins (3-0)

Bill Walsh 1931 – 2007 He Re-invented Offensive Football

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?)

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

SET THE AGENDA * Great Companies … SET THE AGENDA. * * “disturb the sleep of … ”

Built to Last v. Built to Flip “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.” “Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.” Fast Company

Bill Walsh 1931 – 2007 A Fine Human Being

W. Donald Schaefer 1921-Forever He Cared

Joe J. Jones 1942 – 2006 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

Thomas J. Peters 1942-No rush ! “In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company

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“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia

24%

Single greatest act of pure imagination

“ In-sane- ly-great”

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

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

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!

“Normal” = “o for 800”

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Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity

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”

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Basement Systems Inc. Basement Systems Inc.

*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1993: $0; 2003: $12M; 2006: $50,000,000+

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<$20 Trapper: <$20 per beaver pelt. Source: WSJ

wdcp/“Wildlife Damage-control Professional”: $150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ

7X to 50X

E.g. … UTC/Otis + Carrier: boxes to “integrated building systems”

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“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.” 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

“incredible power of endurance” —p olitical colleague, on Nicolas Sarkozy, repeatedly written off by the public and the celestial powers of French politics (FT, )

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

Re- lent -less

25 2, ,000,000 2,500,000 15

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“You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” —Dale Carnegie

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“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’s Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES Women’s Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)

“Girls are the new boys.” Source: The Daily Mail, , “Why today’s women want a girl”

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

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

Women 80% 53% 80% 60%+ 60% 51% 70% Women Household spending: 80% Investment decisions: 53% Home improvement purchase decisions: 80% New cars: 60%+ Computers: 60% Managers and professionals, overall: 51% New businesses started: 70%* (*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.) Source: Marti Barletta, PrimeTime Women (2007)

???? 80%

Riding Lawnmowers

Men’s median income: +0.6% Women’s median income: + 63% Source: Martha Barletta, Marketing to Women

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

They join them.” “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

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. soared worldwide. Women are closing in on “same pay for same job.” job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se]. office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness & aligned with new organizational effectiveness & value-added imperatives. value-added imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. 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,

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BOOMERS. GEEZERS. MONEY. ALL. NOW.

!!!!!!!!!!!!!!!!! “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

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!

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

80,000,000* * N America, W Europe, Japan (800,000,000)

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

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

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

See me. Watch me. respect me. Suck up to me. Serve me. Love me. Love my longevity. Love my m-o-n-e-y.

Elizabeth Cady Stanton (more or less) (circa )

See “her.” Watch her. respect her. Be obsequious to her. Serve her. Love her. Love her long longevity. Love her m-o-n-e-y. (which is damn near a-l-l the mon-$$$$$$.) the mon-$$$$$$.)

13 7 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

Median Household Net Worth 55-64: $112K 65-69: $114K 70-74: $120K Median Household Net Worth 74: $100K Source: U.S. Census

“New Customer Majority” 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

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.” “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

“While Fox’s overall ratings are down about 6% from last year, the network has moved from fourth place into first among viewers from ages 18 to 49, which all the networks other than CBS Translation … “While Fox’s overall ratings are down about 6% from last year, the network has moved from fourth place into first among viewers from ages 18 to 49, which all the networks other than CBS define as the only competition that counts.” * —NYT/ * * Translation … dumb./ ignorant./ stupid./ all three.

Brand Loyalty: Stable or Unstable/Fickle? Serial Monogamy: A Personal Odyssey Tom Peters/ Brand Loyalty: Stable or Unstable/Fickle? Serial Monogamy: A Personal Odyssey Tom Peters/

“The mature market cannot be dismissed as entrenched in its brand loyalties.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

“Advertisers pay more to reach the kid because they think that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … In fact, this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of youth.” — James Surowiecki (The New Yorker/ )

Beer: National Boh to Bud to Anchor Steam to Zilch Car: Chevrolet ( ) to misc to Subaru Biz Clothes: Various warehouses to Brooks to Nordstrom to Milan Biz: Big (U.S. Navy, McKinsey) to Small (de facto self-employed) Sports clothes: Misc-cheap to Northface Spouse: “Sexy broad” (wife #1) to Best friend/Brainy (+sexy) School: Cornell to Stanford to RISD (Go Nads!) Pens: Cross to Bic Food: Safeway to Whole Foods Music: Beatles to Queen Home Furnishings: With it to Comfortable Home: SF Bay Area to West Tinmouth VT Favorite sport: Lacrosse-Crew to Speed Walking-Trekking-Rowing Favorite MLB, NFL: Orioles- Baltimore Colts to A’s-Raiders (Warriors!) Favorite magazine: Life to Wired Favorite media: Print-Radio to Web-Radio Favorite airline: TWA to American to Lufthansa Home: East to West Vacations: USA to New Zealand Price: Cheap to Varied (Wal*Mart to Milan) Hotel: Ramada/Holiday Inns to Four Seasons/Leading Hotels Restaurants: McDonald’s to Hole in the wall Stores: Misc/Big to Little shops Loyalty: Serial monogamy (just as loyal now as then; “love ’em, then leave ’em”)

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The Black Swan: The Impact of the Highly Improbable Nassim Nicholas Taleb

1982 (-) = 200 Years (+)

1982/Default Latin America = 200 years [Total historical earnings] The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb

This book will (should!) change your life. TP: This book will (should!) change your life.

Siegfried and Roy = 1,000X [gambling variability] The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb

10/50/50* *10 days in 50 years = 50% returns The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb

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blog.

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

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!

“ 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

do things.

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

drill.

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

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

“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

S.A.V.

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

Try Lots of things.

6:15A.M.

“But it’s only 2am!”

“Where are you going? … But it’s only 2am. … You see, you can live your life at 120 miles an hour, and that’s pretty impressive. But it’s not good enough. Unless you live at 150 miles an hour, the world will pass you by,” HRH Prince Alwaleed* *1 day: 573 people met separately, 200 phone calls, 100 text messages, etc Source: “Prince Alwaleed, Inside the private world of the Middle East’s most powerful investor” cover story, The Business,

Screw. things. Up.

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

Sam’s Secret #1!

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

“If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/ )

Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation

0 for 60 China. Iran/79. USSR/bomb/49. Eastern Europe/90. S Korea/50. Cuba/62. Arab- Israeli/73. Afghanistan/79. USSR/1989. Kuwait/90. India/98. WMDs/ Etc. Source: Legacy of Ashes* ** —Tim Weiner *Eisenhower, on the CIA **“The agency has a great reputation but a terrible record.”—Donald Gregg, nat’l security advisor, VP Bush

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

“[other] admirals more frightened of losing than anxious to win” On NELSON: “[other] admirals more frightened of losing than anxious to win”

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

GERONIMO!’ "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 )