Tom Peters’ EXCELLENCE. ALWAYS. World Business Forum Milano/27October2006

tompeters.com Slides* at … tompeters.com

Bonus Think! vs. do! Tom peters 27 October 2006

3/Billion 5/42 500/900 “… America’s god- given right …”

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

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

, 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

“ Ford, GM and Chrysler do not just make cars expensively … they make bad cars expensively.” —Investec analyst, International Herald,

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

“It is generally much easier to kill an organization than change it substantially.” —Kevin Kelly, Out of Control

Message/Implication: go for it C.E.O. C.D.O. Message/Implication: go for it! C.E.O. to C.D.O.

EXCELLENCE. ALL. YOU. NEED. TO. KNOW.

25

“20-minute rule” “20-minute rule” —Craig Johnson/30 yrs

EXCELLENCE. ALL. YOU. NEED. TO. KNOW. ANYWHERE. ANY MARKET. ANY TIME.

Jim’s Group

EXCELLENCE. SIBERIA.

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

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

People. Product. Customers. Execution. Enthusiasm. Excellence.

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”

“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 Business* ** (*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

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

EXCELLENCE. INNOVATE. OR. DIE.

“ 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. INNOVATE. ALL. WRONG.

#1 More Than $$$$ #1 R&D spending, last 25 years/USA?

GM

“ I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/Wells Fargo

“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’m sure there are success stories out there, but at this moment I draw a blank.” —Mark Sirower, The Synergy Trap

EXCELLENCE. INNOVATE. AXIOMATIC.

The Mess Is the Message! Period!

EXCELLENCE. INNOVATE.. EXCELLENCE. INNOVATE. TACTICS.

try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. try it. Try it. Try it. try it. Try it. Try it. 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

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

“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

READY. FIRE! AIM. READY. FIRE! AIM. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)

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”

Get mad. Do something about it. Now.

tolerate [encourage?] failure

Sam’s Secret #1!

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

Speed/ Tempo

FedEx Economy “the FedEx Economy” —headline/New York Times/

Anything/ Anywhere/ Anytime “Any3”: Anything/ Anywhere/ Anytime

re-imagine the “value added” equation

$55B

Gamechanging Solutions/ Implemented Customer success The [NEW] “Value-added Ladder” Gamechanging Solutions/ Implemented Customer success Services/Transactions Manufactured Goods/Things Extracted Raw Materials

Full-scale, Accountable Member-Partner of XYZ Hospital’s Senior Healing-Services Team HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healing-Services Team (who happens to be a techie)

“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

“What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership

spellbinding Experiences Gamechanging Solutions The [NEW] “Value-added Ladder” spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

We sell dreams We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions

dreams come true spellbinding Experiences Gamechanging Solutions The [NEW] “Value-added Ladder” dreams come true spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Dream Merchant: IBM

[totally] re-imagine the business around the two staggering “new” opportunities

women

Women’s Trifecta+ *Buy/all *Wealth/all *Lead/ better +Eclipse of males/whoops

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

“ She knows more about the [Volvo] than the sales man who greets her at the door. But how is she treated? As if she has a low IQ, is slightly hard of hearing, and really has no right to be buying a luxury car; and if she brought a male friend with her, odds are 10:1 that the clueless salesperson spent most of his time speaking to him.” —Selling to Men, Selling to Women, Jeffery Tobias Halter

“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%.” —Economist, 15 April 2006

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

“Since 1970, women have held two out of every three new jobs created.” “Since 1970, women have held two out of every three new jobs created.” —FT,

1. Participation rate/2 of 3 new jobs, last 30 years. 2. Male workforce departures /SENIOR male workforce departures. 3. Shrinking pay gap/same jobs. 4. More senior positions. Greater decision- making/expenditure/organization design authority. More line jobs. 5. Female solo head-of-household growing. 6. Longevity. 7. Education. 8. More effective money management.

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

boomers- geezers

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

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

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

“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 become who we spend time with!

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 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

The Bottleneck Is at the Top of the Bottle” At the top!” “ The Bottleneck Is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma: At the top!” — Gary Hamel/Harvard Business Review

EXCELLENCE

4/40

De-centralization execution accountability 6:15a.m.

“If if feels painful and scary—that’s real delegation” “If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner

De-centralization execution accountability 6:15a.m.

“ Execution is the job of the business leader.” —Larry Bossidy “ Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

De-centralization execution accountability 6:15a.m.

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

20 40 $25$802 “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

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 actor or actress can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance

PUT HR AT THE HEAD OF THE HEAD TABLE.

DD$21M

LIVE FOR 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

Brand = Talent.

EXCELLENCE. BEDROCK. LEADERSHIP.

“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)

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

“ 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

The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” “The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” —RG

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

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

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

PURPOSE. PASSION. Presence. Personal. PERSISTENCE. PEOPLE.

EXCELLE ALWAYS.

Bonus Think! vs. do! Tom peters 27 October 2006

Think! vs. do!

Never forget implementation, boys. In our work, it’s what I call the ‘last 98 percent’ of the client puzzle.” “Never forget implementation, boys. In our work, it’s what I call the ‘last 98 percent’ of the client puzzle.” —Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP

HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc. The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists” HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* (*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, Computers, Military History, Etc.) MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc.

Plan it! Try it! “Linearist”: Plan it! “Non-linearist”: Try it!

think! do! “Linearist”: think! “Non-linearist”: do!

hypothesize! experiment! “Linearist”: hypothesize! “Non-linearist”: experiment!

failure = unnecessary failure = life “Linearist”: failure = unnecessary “Non-linearist”: failure = life

a>b* b>a** “Linearist”: a>b* “Non-linearist”: b>a** *Attitude shapes behavior **Behavior shapes attitude

deliberate!* relentless!** * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant) “Linearist”: deliberate!* “Non-linearist”: relentless!** * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant)

logical! passionate! “Linearist”: logical! “Non-linearist”: passionate!

give me genius! give me luck! “Linearist”: give me genius! “Non-linearist”: give me luck!

spotless academic record! a.d.d. “Linearist”: spotless academic record! “Non-linearist”: a.d.d.

measured pace! Tempo! Tempo! Tempo! “Linearist”: measured pace! “Non-linearist”: Tempo! Tempo! Tempo!

think! Plan! (r.a.f.*) Try it! Screw it up! Fix it! Try it again! (r.f.a.**) *Ready. Aim. Fire. **ready. Fire. Aim. (Or, circa 2006: fire. Fire. Fire.) “Linearist”: think! Plan! (r.a.f.*) “Non-linearist”: Try it! Screw it up! Fix it! Try it again! (r.f.a.**) *Ready. Aim. Fire. **ready. Fire. Aim. (Or, circa 2006: fire. Fire. Fire.)

minimize cost. maximize revenue. Cheap Shot “Linearist”: minimize cost. “Non-linearist”: maximize revenue.

marketing rules. sales rules. “Linearist”: marketing rules. “Non-linearist”: sales rules.

Background: planning, marketing & finance. background: sales & operations. “Linearist” Background: planning, marketing & finance. “Non-linearist” background: sales & operations.

likes: ideas. likes: people. “Linearist” likes: ideas. “Non-linearist” likes: people.

likes: parts. likes: wholes. “Linearist” likes: parts. “Non-linearist” likes: wholes.

office: walls. office: none. “Linearist” office: walls. “Non-linearist” office: none.

style: meetings. style: m.b.w.a.* *Managing by wandering around “Linearist” style: meetings. “Non-linearist” style: m.b.w.a.* *Managing by wandering around

reads: michael porter. Peter drucker.* reads: waterman & peters. Tom clancy.** *Michael & peter **Bob & tom & tom “Linearist” reads: michael porter. Peter drucker.* “Non-linearist” reads: waterman & peters. Tom clancy.** *Michael & peter **Bob & tom & tom

reads: michael porter. Peter drucker. reads: doesn’t “Linearist” reads: michael porter. Peter drucker. “Non-linearist” reads: doesn’t

preferred baseball score: 1-0. preferred baseball score: “Linearist” preferred baseball score: 1-0. “Non-linearist” preferred baseball score: 11-9.

preferred football score: 7-0. preferred football score: “Linearist” preferred football score: 7-0. “Non-linearist” preferred football score:

criminal record: none. criminal record: disorderly conduct. Chronic jaywalking. “Linearist” criminal record: none. “Non-linearist” criminal record: disorderly conduct. Chronic jaywalking.

drives: lincoln town car. Ford explorer (weekends). drives: bmw. Harley- davidson (weekends). “Linearist” drives: lincoln town car. Ford explorer (weekends). “Non-linearist” drives: bmw. Harley- davidson (weekends).

HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc. The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists” HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* (*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, Computers, Military History, Etc.) MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc.

EXCELLE ALWAYS.