hrmaster tom peters/hr.com/10.26.2004. #1 tom peters’ re-imagine! business excellence in a...

HRmaster

Tom Peters/HR.com/10.26.2004

Tom Peters’

Re-Imagine!Business Excellence in

a Disruptive Age

HR.com/Phoenix/26October2004

Slides at …

tompeters.com

Re-imagine!

Summer 2004: Not Your

Father’s World I.

International Herald Tribune

/09.13.2004: p.1/600 foreign R&D labs in China, 200 new

per year

60,000*

*New factories in China opened by foreigners/2000-2003/

Edward Gresser, Progressive Policy Institute/Wall Street Journal 09.27.04

“Reuters Plans To Triple Jobs at Site In India” —Headline/

New York Times/ World Business/10.08.04/10% of total workforce in Bangalore by 2006

Level 5 (top) ranking/Carnegie Mellon

Software Engineering Institute: 35 of 70

companies in world are from India

Source: Wired/02.04

Re-imagine!

Summer 2004: Not Your

Father’s World II.

“A focus on cost-cutting and efficiency has helped many

organizations weather the downturn, but this approach will ultimately render them obsolete. Only the

constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka,

Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

“We’re now entering a new phase of business where the group will be a

franchising and management company where brand management is central.” —David

Webster, Chairman, InterContinental Hotels Group

“InterContinental will now have far more to do with brand ownership than hotel

ownership.” —James Dawson of Charles Stanley (brokerage)

Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

My Story.

A Coherent Story: Context-Solution-BedrockContext1: Intense Pressures (China/Tech/Competition)

Context2: Painful/Pitiful Adjustment (Slow, Incremental, Mergers)

Solution1: New Organization (Technology, Web+ Revolution, Virtual-“BestSourcing,”“PSF” “nugget”)

Solution2: No Option: Value-added Strategy (Services- Solutions-Experiences-DreamFulfillment “Ladder”)

Solution3: “Aesthetic” “VA” Capstone (Design-Brands)

Solution4: New Markets (Women, ThirdAge)

Bedrock1: Innovation (New Work, Speed, Weird, Revolution)

Bedrock2: Talent (Best, Creative, Entrepreneurial, Schools)

Bedrock3: Leadership (Passion, Bravado, Energy, Speed)

1. Re-imagine Everything: All Bets Are Off.

Jobs New Technology

GlobalizationSecurity

“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04

“One Singaporean worker costs as much as …

3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/08.18.03

“Thaksinomics” (after Thaksin Shinawatra, PM)/ “Bangkok

Fashion City”/ “managed asset reflation” (add to brand value of

Thai textiles by demonstrating flair and design excellence)

Source: The Straits Times/03.04.2004

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

“Asia’s rise is the economic event of our age. Should it

proceed as it has over the last few decades, it will bring the two centuries of global domination by Europe and,

subsequently, its giant North American offshoot to an end.”

—Financial Times (09.22.2003)

“This is a dangerous world and it is going to become more dangerous.”

“We may not be interested in chaos but

chaos is interested in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

2. Re-imagine Permanence:

The Emperor Has No Clothes!

Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive

in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market

by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.

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 1997.

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

“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms

listened to their customers, invested aggressively in technologies that would provide their customers more

and better products of the sort they wanted, and because they carefully studied market trends and

systematically allocated investment capital to innovations that promised the best returns, they lost

their positions of leadership.”

Clayton Christensen, The Innovator’s Dilemma

3. Re-imagine Organizing I:

IS/IT Leads the (Virtual) Way!

Productivity!

McKesson 2002-2003: Revenue … +$7B

Employees … +500

Source: USA Today/06.14.04

“Don’t own nothin’ if you can help it. If you can, rent your

shoes.”F.G.

Ford: “Vehicle brand owner” (“design, engineer, and

market, but not actually make”)

Source: The Company, John Micklethwait & Adrian Wooldridge

07.04/TP In Nagano …

Revenue: $10B

FTE: 1*

*Maybe

Not “out sourcing”Not “off shoring”

Not “near shoring”Not “in sourcing”

but …

“Best Sourcing”

4. Re-imagine the Organizing II: The

Professional Service Firm (“PSF”) Imperative.

Sarah: “ Papa, what do you do?”

Papa: “I’m ‘overhead.’ ”

Sarah: “ Daddy, what do you do?”

Papa: “I manage a ‘cost center.’ ”

Sarah: “ Daddy, what do you do?”

Papa: “I’m a ‘bureaucrat.’ ”

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, Finance [IS, etc.] Inc.

“Typically in a mortgage company or financial services company, ‘risk

management’ is an overhead, not a revenue center. We’ve become more

than that. We pay for ourselves, and we

actually make money for the company.” —Frank

Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)

Eichorning

Mantra: “Eichorn it!”

Eichorning

Mantra: “We’re Eichorning”

5. Re-imagine Business’

Basic Value Proposition: PSFs Unbound/ The

“Solutions Imperative.”

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, coming up

with similar ideas, producing

similar things, with similar prices

and similar quality.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of choice.” (BW)

IBM Global Services: $35B

New York-Presbyterian: 7-year, $500M consulting (systemic) and equipment contract with

GE Medical Systems

Source: NYT/07.18.2004

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager

for Corporate America” —Headline/BW/07.19.2004

6. Re-imagine Enterprise as

Theater I: A World of Scintillating “Experiences.”

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

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

WHAT CAN BROWN DO FOR YOU?

The “Experience Ladder”

Experiences Services

Goods Raw Materials

“Most executives have no idea how to add value to a market in the metaphysical

world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to

choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

7. Re-imagine Enterprise as

Theater II: Embracing the

“Dream Business.”

DREAM: “A dream is a complete moment in the life of a client.

Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The

opportunity to help clients become what they want to be.” —Gian Luigi

Longinotti-Buitoni

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as

companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based

society whose icon is the computer. We stand facing the fifth kind of

society: the Dream Society.

… Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and

services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

Experience Ladder/TP

Dreams Come True Awesome Experiences

SolutionsServicesGoods

Raw Materials

Six Market Profiles

1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for Convictions

Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

Six Market Profiles

1. Adventures for Sale/IBM2. The Market for Togetherness, Friendship and Love/IBM3. The Market for Care/IBM4. The Who-Am-I Market/IBM5. The Market for Peace of Mind/IBM6. The Market for Convictions/IBM

’70s: Cost (BCG’s “cost curves”)

’80s: TQM-CI (Japan)

’90s: Service

’00s: Solutions/Experiences’10s: Dream Fulfillment

8. Re-imagine the “Soul” of Enterprise:

Design Rules!

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

“Having spent a century or more focused on other goals—solving manufacturing problems, lowering

costs, making goods and services widely available, increasing convenience, saving energy—we are

increasingly engaged in making our world special. More people in more aspects of life are drawing

pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the

chance, we’re adding sensory, emotional appeal to ordinary function.” — Virginia Postrel, The Substance of Style: How

the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

9. Re-imagine the Fundamental Selling

Proposition: “It” all adds up to …

THE BRAND (THE STORY).

“WHO ARE WE?”

“WHAT’S OUR

STORY?”

“WHAT’S THE

DREAM?”

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions

to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

Story > Brand

10. Re-imagine the Roots of Innovation: THINK WEIRD … the

High Value Added Bedrock.

FLASH:

Innovation is

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

“To grow, companies need to break out of a

vicious cycle of competitive

benchmarking and imitation.” —W. Chan Kim & René

Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

“How do dominant companies lose there

position? Two-thirds of the time, they pick the wrong competitor to

worry about.” —Don Listwin, CEO,

Openwave Systems/WSJ/06.01.2004 (commenting on Nokia)

Kodak …. FujiGM …. FordFord …. GM

IBM …. Siemens, FujitsuSears … Kmart

Xerox …. Kodak, IBM

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure

out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and

Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo

(marketing the same Game Boy 14 years in a row)? It’s like trying to drive

looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes.

Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The

leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you

decide to do it.” —Seth Godin, Fast Company/02.2003

“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, “Strategy or Revolution”/

Harvard Business Review

Innovation!

Imitation

Measure “Strangeness”/Portfolio Quality

StaffConsultants

BoardVendors

Out-sourcing Partners (#, Quality)

Innovation Alliance PartnersCustomers

Competitors (who we “benchmark” against)

Strategic Initiatives Product Portfolio (LineEx v. Leap)

IS/ITHQ LocationLunch Mates

Language

11. Re-imagine the Customer I:

Trends Worth Trillion$$$ …

Women Roar.

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)All consumer purchases … 83%

Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%

Health Care … 80%

91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

12. Re-imagine the Customer II: Trends Worth

Trillion$$$ … Boomer Bonanza/ Godzilla

Geezer.

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

“The New Customer Majority [age 44-65] is the only

adult market with realistic prospects for significant

sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert

Snyder, Ageless Marketing

“Marketers attempts at reaching those over 50 have

been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter

Francese, founding publisher, American Demographics

Bonus.

The Hunch of a Lifetime: An Emergent (Market) Nexus

I have a sense/hunch there’s an interesting nexus among several of the ideas about New Market Realities that I promote … namely Women-Boomers-Wellness-Green-Intangibles. Each one drives the Fundamental (Traditional) Economic Value Proposition toward the “softer side”: From facts- & figures-obsessed males toward relationship-oriented Women. From goods-driven youth toward “experiences”-craving Boomers. From quick-fix & pill-popping “healthcare” toward a holistically inclined “Wellness Revolution.” From mindless exploitation of the Earth’s resources toward increased awareness of the fragility and preciousness of our Environment. From “goods” and “services” toward Design- & Creativity-rich Intangibles-Experiences-Dreams Fulfilled. This so-called “softer side”—as the disparate likes of IBM’s Sam Palmisano and Harley-Davidson’s Rich Teerlink teach us—is now & increasingly “where the loot is,” damn near all the loot. That is, the “softer side” has become the Prime Driver of tomorrow’s “hard” economic value. Furthermore, each of the Five Key Ideas (Women-Boomers-Wellness-Green-Intangibles) feeds off and complements the other four. Dare I use the word “synergy”? Perhaps. (Or: Of course!) I can imagine an enterprise defining its raison d’etre in terms of these Five Complementary Key Ideas. (HINT: DAMN FEW DO TODAY.)

An Emergent Nexus

Men …………………………….……………….... WomenYouth ………………………………… Boomers/Geezers“Fix It”Healthcare………………... Wellness/PreventionExploit-the-Earth ……...... Preserve/Cherish the PlanetTangibles ……………………………………… Intangibles

13. Re-imagine

Excellence I: The Talent

Obsession.

Brand = Talent.

Agriculture Age (farmers)

Industrial Age (factory workers)

Information Age (knowledge workers)

Conceptual Age (creators and empathizers)

Source: Dan Pink, A Whole New Mind

From “1, 2 or you’re out” [JW] to …

“Best Talent in each industry segment to build

best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent

“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

Did We Say “Talent Matters”?

“The top software developers are more productive than

average software developers not by a factor of 10X or 100X, or

even 1,000X,

but 10,000X.” —Nathan Myhrvold,

former Chief Scientist, Microsoft

14. Re-imagine Excellence II: Meet the

New Boss … Women Rule!

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report/BusinessWeek

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers;

favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure

“rationality”; inherently flexible; appreciate cultural diversity.

Source: Judy B. Rosener, America’s Competitive Secret: Women Managers

15. Re-imagine Excellence III: New

Education for A New World

“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!

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an

ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-

related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.

Yet the success-failure standards of most schools penalized risk takers. Most educational

systems reward those who play it safe. As a result, those who do well in school find it hard to

take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

16. Re-imagine Leadership for Totally Screwed-Up

Times:

The Passion Imperative.

Start a Crusade!

G.H.: “Create a ‘cause,’ not a ‘business.’

“Beware of the tyranny of making Small

Changes to Small

Things. Rather, make

Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

Make It a Grand

Adventure!

“Ninety percent of what we call ‘management’ consists of making it difficult for people to

get things done.” – Peter Drucker

“I don’t know.”

Quests!

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a

Great Group is to allow its members to discover their

greatness.”

Yes!!!!!!!!!!!!!!!!!

“free to do his or her absolute best” …

“allow its members to discover their

greatness.”

“Reward excellent

failures. Punish mediocre

successes.”Phil Daniels, Sydney exec (and, de facto, Jack)

Dispense Enthusiasm!

BZ: “I am a … Dispenser of Enthusiasm!”

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

Gandhi

New Economy Biz Degree Programs

MBA (Master of Business Administration) MMM1 (Master of Metaphysical Management)

MMM2 (Master of Metabolic Management)

MGLF (Master of Great Leaps Forward)

MTD (Master of Talent Development)

W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)

DE (Doctor of Enthusiasm)

Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press

“The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit

anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.”

Approximately 640 Index entries: Customer/s (service,

retention, loyalty), 4. People (employees, motivation, morale, worker/s), 0.

Innovation (product development, research & development, new products), 0.

“You can’t behave in a calm, rational

manner. You’ve got to be out there on

the lunatic fringe.” —

Jack Welch

Importance of Success Factors by Various “Gurus”/Estimates by Tom Peters

Strategy Systems Passion Execution Porter 50% 20 15 15

Drucker 35% 30 15 20

Bennis 25% 20 30 25

Peters 15% 20 35 30

“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 /October2003

Re-imagine Leadership for Totally Screwed-Up Times:

The Passion Imperative.

Start a Crusade!

G.H.: “Create a ‘cause,’ not a ‘business.’

“Beware of the tyranny of making Small

Changes to Small

Things. Rather, make

Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Make It a Grand

Adventure!

“I don’t know.”

Quests!

greatness.”

Yes!!!!!!!!!!!!!!!!!

“free to do his or her absolute best” …

“allow its members to discover their

greatness.”

Insist on Speed &

Excellence!

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

“Reward excellent

failures. Punish mediocre

successes.”Phil Daniels, Sydney exec (and, de facto, Jack)

Dispense Enthusiasm!

“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

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

Gandhi

15 “Leading” Biz Schools

Design/Core: 0Design/Elective: 1

Creativity/Core: 0Creativity/Elective: 4

Innovation/Core: 0Innovation/Elective: 6

Source: DMI/Summer 2002

“Most executives have no idea how to add value to a

market in the metaphysical world. But

that is what the market will cry out for in the future. There is no

lack of ‘physical’ products to choose between.”

“Strategy meetings held once

or twice a year” to “Strategy meetings needed several

times a week”

Source: New York Times on Meg Whitman/eBay

Have you changed

civilization today?

Source: HP banner ad

“When assessing candidates, the first thing I looked for was energy and

enthusiasm for execution. Does she talk about the thrill of getting things

done, the obstacles overcome, the role her people played—or does she keep

wandering back to strategy or philosophy?” —Larry Bossidy,

Honeywell/AlliedSignal, in Execution

Jack Welch

Drucker 35% 30 15 20

Bennis 25% 20 30 25

Peters 15% 20 35 30

Creativity: Short Takes

Tom Peters/10.26.2004

Work Stats

-Formulaic intelligence (health record clerks, 63%/36K;

secretaries & typists, 30%/1.3M; bookkeepers, 13%/247K)

Manual dexterity (sewing machine ops, 50%/347K; lathe ops, 49%/30K; butchers, 23%/67K)

Muscle power (timber cutters, 32%/25K; farm workers, 20%/182K)

Source: “Where the Jobs Are”/NYT/05.13.2004/data 1994-2004

+People skills & emotional intelligence (financial service sales, 78%/248K; RNs, 28%/512K; lawyers, 24%/182K)

Imagination & creativity (architects, 44%/60K; designers, 43%/230K; photographers, 38%/50K)

Analytic reasoning (legal assts, 66%/159K; electronic engs, 28%/147K)

Source: “Where the Jobs Are”/NYT/05.13.2004/data 1994-2004

“Over the past decade the biggest employment gains came in occupations that rely on people skills and emotional intelligence ... and among jobs that require imagination and creativity. …

Trying to preserve existing jobs will prove futile—trade and technology will transform the

economy whether we like it or not. Americans will be better off if they strive to move up the hierarchy of human talents. That’s where our

future lies.” —Michael Cox, Richard Alm and Nigel Holmes/“Where the Jobs Are”/NYT/05.13.2004

Frameworks

Age of AgricultureIndustrial Age

Age of Information IntensificationAge of Creation Intensification

Source: Murikami Teruyasu, Nomura Research Institute

“The Dawn of the Creative Age”

“There’s a whole new class of workers in the U.S. that’s 38-million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians

and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare

and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of

independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the

workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion)—almost as much as the manufacturing and service sectors together. Indeed, the United States has now entered

what I call the Creative Age.” —“America’s Looming Creativity Crisis”/ Richard Florida/ HBR/10.04

TP’s “New World of Work”/Circa 1995

Context: White-collar BloodbathWork: WOW Projects!Individual: Brand You

Org: PSF (Professional Service Firm) “Model”

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“Historically, smart people have always turned to where the money was. Today, money is turning to

where the smart people are.” —FT/06.03.03

Talent!

Tina Brown: “The first thing to do is to hire enough

talent that a critical mass of excitement starts to

grow.”Source: Business2.0/12.2002-01.2003

Schools: K-MBA

“Our education system is a second-rate, factory-

style organization, pumping out obsolete information in

obsolete ways. [Schools] are simply not connected to the

future of the kids they’re responsible for.”

Alvin Toffler, Business 2.0

“The main crisis in school today is irrelevance.” —Daniel Pink,

Free Agent Nation

“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!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I

reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being

identified by the group as a ‘closet artist.’ The point is: Every school I visited was was participating

in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

RichardFlorida

“The global talent pool and the high-end, high margin creative industries that used to be the sole province of the U.S., and a critical source of its prosperity,

have begun to disperse around the globe. A host of countries—Ireland, Finland, Canada, Australia, New Zealand, among them—are investing in higher education, cultivating creative people, and churning out stellar

products, from Nokia phones to the Lord of the Rings movies.. Many of these countries have learned from past U.S. success and are shoring up efforts to

attract foreign talent—including Americans. … The United States may well be the Goliath of the twentieth century global economy, but it will take just half a

dozen twenty-first-century Davids to begin to wear it down. To stay innovative, America must continue to attract the world’s sharpest minds. And to do that, it needs to invest in the

further development of its creative sector. Because wherever creativity goes—and, by extension, wherever talent goes—innovation and economic growth are sure

to follow.” —“America’s Looming Creativity Crisis”/Richard Florida/HBR/10.04

“The Dawn of the Creative Age”

“There’s a whole new class of workers in the U.S. that’s 38-million strong: the creative class. At its core are the scientists, engineers, architects, designers, educators, artists, musicians

and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare

and related fields, in which knowledge workers engage in complex problem solving that involves a great deal of

independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the

workforce (more than all of manufacturing) and accounts for more than half of all wage and salary income (some $2 trillion)—almost as much as the manufacturing and service sectors together. Indeed, the United States has now entered

what I call the Creative Age.” —“America’s Looming Creativity Crisis”/ Richard Florida/ HBR/10.04

CM Prof Richard Florida on

“Creative Capital”: “You cannot get a technologically

innovative place unless it’s open to weirdness,

eccentricity and difference.”

Source: New York Times/06.01.2002

Dan Pink

“The era of ‘left brain’ dominance—and the

Information Age it engendered—Is giving way to a new world in which ‘right brain’ qualities—

inventiveness, empathy, meaning—will govern.” —Dan Pink, A

Whole New Mind

“The past few decades have belonged to a certain kind of person with a certain kind of mind—computer

programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch

numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of

person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers.

These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its

greatest joys.” —Dan Pink, A Whole New Mind

L-Directed Thinking: sequential, literal, functional, textual,

analyticto

R-Directed Thinking: simultaneous, metaphorical,

aesthetic, contextual, syntheticSource: Dan Pink/A Whole New Mind

“Left-brain style thinking used to be the driver, and right-brain style thinking the passenger. Now R-Directed Thinking is

suddenly grabbing the wheel, stepping on the gas, and determining where we’re

going and how we’re going to get there. L-Directed aptitudes—the kind measured by the SAT and employed by CPAs—are still

necessary. But they’re no longer sufficient.” —Dan Pink, A Whole New Mind

The Big Three Drivers of Change

Abundance

Automation

Source” Dan Pink, A Whole New Mind

“But abundance has also produced an ironic result: The very triumph of L-Directed Thinking has lessened its significance. The prosperity it has

unleashed has placed a premium on things that appeal to less rational,

more R-Directed sensibilities—beauty, spirituality, emotion.” —Dan Pink,

A Whole New Mind

350,000 engineering grads per year

>50% F500 outsource software work to India

GE: 48% of software developed in India (Sign in GE India office: “Trespassers will be recruited”)

Software’s Enormous Inroads

Lawyers

Accountants

“The MFA is the new

MBA.” —Dan Pink, A Whole New Mind

“What does this mean for you and me? How can we prepare for the conceptual age? On one

level, the answer is straightforward. In a world tossed by Abundance, Asia and Automation, in a which L-Directed Thinking remains necessary

but no longer sufficient, we must become proficient in R-Directed Thinking and master aptitudes that are ‘high concept’ and ‘high touch.’ But on another level, that answer is

inadequate. What exactly are we supposed to do?” —Dan Pink, A Whole New Mind

Design.Story.

Symphony.Empathy.

Play.Source: Dan Pink, A Whole New Mind

Not just function, but also … DESIGN.Not just argument, but also … STORY.Not just focus, but also … SYMPHONY.

Not just logic, but also … EMPATHY.Not just seriousness, but also … PLAY.

New Economy. New Biz Degrees.

MBA (Master of Business Administration)

MFA (Master of Fine Arts)

MMM1 (Master of Metaphysical Management)

MMM2/MM (Master of Metabolic Management, or Master of Madness)

G/GWGTDw/oC (Guy/Gal Who Gets Things Done without Certificate)

“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms

listened to their customers, invested aggressively in technologies that would provide their customers more

and better products of the sort they wanted, and because they carefully studied market trends and

systematically allocated investment capital to innovations that promised the best returns, they lost

their positions of leadership.”

Clayton Christensen, The Innovator’s Dilemma

“Never mind your happiness; do your

duty.” —Peter Drucker

(BrainyQuote.com)

“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

“There is little evidence that mastery of the knowledge

acquired in business schools enhances people’s careers, or

that even attaining the MBA credential itself has much effect on graduates’ salaries or career attainment.” —Jeffrey Pfeffer (tenured professor,

Stanford GSB/2004)

“The past few decades have belonged to a certain kind of person with a certain kind of mind—computer

programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch

numbers. But the keys to the kingdom are changing hands. The future belongs to a very different kind of

person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers.

These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its

greatest joys.” —Dan Pink, A Whole New Mind

“The MFA is the new

MBA.” —Dan Pink, A Whole New

“Having spent a century or more focused on other goals—solving manufacturing problems, lowering

costs, making goods and services widely available, increasing convenience, saving energy—we are

increasingly engaged in making our world special. More people in more aspects of life are drawing

pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the

chance, we’re adding sensory, emotional appeal to ordinary function.” — Virginia Postrel, The Substance of Style: How

the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same

technology, price, performance and

features. Design is the only thing that differentiates one product from another in the

marketplace.”Norio Ohga

“We don’t have a good language to talk about this kind of thing. In most people’s

vocabularies, design means veneer. … But to me, nothing could be further from the

meaning of design. Design is the fundamental soul

of a man-made creation.”

Steve Jobs

“We’re now entering a new phase of business where the group will be a

franchising and management company where brand management is central.” —David

Webster, Chairman, InterContinental Hotels Group

“InterContinental will now have far more to do with brand ownership than hotel

ownership.” —James Dawson of Charles Stanley (brokerage)

Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance

Ford: “Vehicle brand owner” (“design, engineer, and

market, but not actually make”)

Source: The Company, John Micklethwait & Adrian Wooldridge

“Experiences are as distinct from services as services are from

goods.”Joseph Pine & James Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an

entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

“With its carefully conceived mix of colors and

textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass

Production—the touchstone success story, the exemplar of all that is good and bad about the

aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style:

How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

Bob Lutz: “I see us as being in the art business. Art,

entertainment and mobile sculpture, which,

coincidentally, also happens to provide transportation.”

Source: NYT 10.19.01

“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders,

and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not

enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all

this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their

circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed

forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and

how value will be created in the future.”

—Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

DREAM: “A dream is a complete moment in the life of a client.

Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The

opportunity to help clients become what they want to be.” —Gian Luigi

Longinotti-Buitoni

Six Market Profiles

1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for Convictions

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

“The Ritz-Carlton experience enlivens the

senses, instills well-being, and fulfills even

the unexpressed wishes and needs of our guests.”

— from the Ritz-Carlton Credo

“Most executives have no idea how to add value to a market in the metaphysical

world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to

choose between.”

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as

companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based

society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right

now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic

reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your Business

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.

Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions

to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand

that their products are less important than their stories.”

Rolf Jensen, Copenhagen Institute for Future Studies

Market Power = Story Power

Brand = Story

Story > Brand

MMM2/MM (Master of Metabolic Management/Master of Madness)

“The organizations we created have become tyrants. They have taken

control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls

that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez &

René Tissen, Zero Space: Moving Beyond Organizational Limits.

“This is a dangerous world and it is going to become more dangerous.”

“We may not be interested in chaos but

chaos is interested in us.”

Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century

“We are in a

brawl with no rules.”

Paul Allaire

“How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation,

discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable

byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles,

stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel,

The Future and Its Enemies

“Strategy meetings held once

or twice a year” to “Strategy meetings needed several

times a week”

Source: New York Times on Meg Whitman/eBay

“Don’t own nothin’ if you can help it. If you can, rent your

shoes.”F.G.

“Organizations will still be critically important in

the world, but as ‘organizers,’ not

‘employers’!” — Charles Handy

07.04/TP In Nagano …

Revenue: $10B

FTE: 1*

*Maybe

“Ebusiness is about rebuilding the organization from the

ground up. Most companies today are not built to exploit the Internet.

Their business processes, their approvals, their hierarchies, the

number of people they employ … all of that is wrong for running an

ebusiness.”

Ray Lane, Kleiner Perkins

Fail. Forward. Fast. –High-tech Exec

“I’m not comfortable unless

I’m uncomfortable.”—Jay Chiat

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

“Blitzkrieg is far more than lightning thrusts that most people think of

when they hear the term; rather it was all about high operational tempo

and the rapid exploitation of opportunity.”/ “Arrange the mind of

the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a

bee.”—Ali

BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

“Maneuverists”

BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

“If it works, it’s

obsolete.”

—Marshall McLuhan

“A focus on cost-cutting and efficiency has helped many

organizations weather the downturn, but this approach will ultimately render them obsolete. Only the

constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka,

Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

BUILT TO … DETERIORATE!

“When it comes to investing, I am old school. Buy a good stock, stick it in the drawer and when you check back years later the stock should be worth more. There’s only one problem. When I checked the drawer

recently it was full of clunkers, including Lucent, down 94 percent from its 1999 high. Maybe once upon a time buy and hold was a viable strategy.

Today, it no longer makes sense.”—Charles Stein/ “Investment Strategies Must Shift with Realities”/Boston Globe/10.10.04

A sample of Stein’s “Blue Chip-turned-clunker” examples: Fannie Mae (featured in Collins’ Good to Great). Coke. (“Clunker,” make that

“Stinker.”) Merck. (The mightiest fall—stock down 63 percent since 2000; tumble preceded Vioxx) Uh … Microsoft. (“Microsoft’s stock price is no

higher today than it was in 1998.”)

“It is not clear there is such a thing as a ‘Blue Chip,’” Shawn Kravetz, president of Boston-based hedge fund Esplanade Capital, told Stein. “Kravetz’s point is a serious one,” Stein continues. “Greatness is not

permanent. … This process of creative destruction isn’t new. But with the world moving ever faster, and with competition on steroids, the quaint

notion of buying and holding is hopelessly out of step.”

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and

financially, yes, but not structurally and economically.”

Peter Drucker, Business 2.0

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Forget>“Learn”

“The problem is never how to get new, innovative

thoughts into your mind, but how to get the

old ones out.”Dee Hock

Just Say No …

“I don’t intend to be known as the ‘King of

the Tinkerers.’ ”CEO, large financial services company

“To grow, companies need to break out of a vicious

cycle of competitive benchmarking and

imitation.” —W. Chan Kim & René Mauborgne,

“Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

“Beware of the tyranny of making

Small Changes to Small Things. Rather, make Big Changes to Big

Things.” —Roger Enrico, former Chairman, PepsiCo

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure

out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and

Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo

(marketing the same Game Boy 14 years in a row)? It’s like trying to drive

looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes.

Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The

leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you

decide to do it.” —Seth Godin, Fast Company/02.2003

“Wealth in this new regime flows directly from innovation, not

optimization. That is, wealth is not gained by perfecting the known,

but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

Re-imagine General Electric

“Welch was to a large degree a growth by acquisition man. ‘In the late ’90s,’ Immelt says, ‘we became

business traders, not business growers. Today organic growth is absolutely the biggest task of everyone of

our companies. If we don’t hit our organic growth

targets, people are not going to get paid.’ … Immelt has staked GE’s future growth on the force

that guided the company at it’s birth and for much of its history: breathtaking, mind-

blowing, world-rattling technological innovation.” —“GE Sees the Light”/Business 2.0/July 2004

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

Bottom line: No promotion to senior levels of public or private enterprise should ever again be granted to anyone who does not

present a CV saturated by a clear and compelling demonstration of sustained commitment to Radical Change. Do we wish for “good

strategists”? Why not! But the heart of the matter goes far beyond any plan, no matter how brilliant. The heart of the matter is Heart &

Will ... a record of upsetting apple carts, dislodging “establishments,” and fundamentally altering deep-rooted

“cultures” to embrace change of the most primal sort. I titled my most recent book Re-imagine! Business Excellence in a Disruptive

Age. “Excellence” in a “disruptive age” is not excellence amidst placid waters. The notion of excellence itself changes ...

dramatically. We need our public and private Churchills, leaders who can re-imagine, who can call forth wellsprings of daring and

guts and spirit and spunk, from one and all, to topple the way things may have been for many generations—and who inspire us

to venture forth into today’s and tomorrow’s whitewaters with insouciance and bravado and determination.

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!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

They say “Improve.”I say “Re-imagine!”

Brand = Talent.

Organizing Genius

PARC’s Bob Taylor:

“Connoisseur of Talent”

“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

Did We Say “Talent Matters”?

“The top software developers are more productive than

average software developers not by a factor of 10X or 100X, or

even 1,000X,

but 10,000X.” —Nathan Myhrvold,

former Chief Scientist, Microsoft

“Top performing companies are two to four times more likely

than the rest to pay what it takes to prevent losing

top performers.”

Ed Michaels, War for Talent (05.17.00)

The Cracked Ones Let in the Light

“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found

among non-conformists, dissenters and rebels.”

David Ogilvy

“H.R.” to “H.E.D.” ???

Enablement

Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

Quests!

greatness.”

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.

every measure”Title, Special Report/BusinessWeek

Source: Judy B. Rosener, America’s Competitive Secret: Women Managers

“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

GGWGTDw/oC(Guy/Gal Who Gets Things Done without Certificate)

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

“When assessing candidates, the first thing I looked for was energy and

enthusiasm for execution. Does she talk about the thrill of getting things

done, the obstacles overcome, the role her people played—or does she keep

wandering back to strategy or philosophy?” —Larry Bossidy,

Honeywell/AlliedSignal, in Execution

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

A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.”

“Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I

give you my word as a gentleman that I will pay you what you ask.”

The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single

sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent.

And paid him the agreed-upon $25,000.

1. Every morning, write a list of the things that need to be done that day.

2. Do them.

Source: Hugh MacLeod/tompeters.com/NPR

“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.

They’re eviscerated in public for lousy

products. Yet they persist, through version after version, until they get

something good enough. Then they leverage the power they’ve gained in

other markets to enforce their standard.”Seth Godin, Zooming

“A body can pretend to care, but they

can’t pretend to be there.” — Texas Bix Bender

“My education was a prolonged and

concerted attack on my individuality.” —Neil

Crofts, Authentic

“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

DE!(Doctor of Enthusiasm) (!)

Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

“I’m not sure about his politics, but that’s not what made him great. He inspired people. He made us all feel better about ourselves.” —bystander,

California, during RR funeral

“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

USN&WR/What traits do successful activists share?

Studs Terkel, age 91: “They have hope, and

they imbue others with hope.”

“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

“The leader must have infectious optimism. … The final test of a leader is the feeling you

have when you leave his presence after a conference.

Have you a feeling of uplift and confidence?” —Field Marshall Bernard

Montgomery

“Make it fun to work at your agency. …

Encourage exuberance. Get rid

of sad dogs who spread gloom.” —David Ogilvy

“Astonish me!” / S.D.

“Build something great!” / H.Y.

“Immortal!” / D.O.

“If you ask me what I have come to do in

this world, I who am an artist, I will reply: I am here to live my life out loud.” — Émile Zola

“You can’t lead a cavalry charge if you think you look funny on a

horse.” —John Peers, President, Logical

Machine Corporation

Have you changed

civilization today?

Source: HP banner ad

Drucker 35% 30 15 20

Bennis 25% 20 30 25

Peters 15% 20 35 30

The Re-imagineer’s Credo … or, Pity the Poor Brown*

Technicolor Times demand …Technicolor Leaders and Boards who recruit …

Technicolor People who are sent on …Technicolor Quests to execute …

Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …

Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …

Technicolor Times.

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!

Sir Richard’s Rules:

Follow your passions.Keep it simple.

Get the best people to help you.Re-create yourself.

Source: Fortune/10.03

Jack Welch

“Dream as if you’ll live

forever. Live as if you’ll die today.”

—James Dean

Tom Peters’

Talent50

The Talent50

1. People first!2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added.4. Talent “excellence” in every part of the organization.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.7. HR is “cool.”

The Talent50

8. Re-name “HR.” (Talent Department, Center of Talent Excellence)9. There’s an HR Strategy10. There is a FORMAL Recruitment Strategy.11. There is a FORMAL Leadership Development Strategy.12. There is a “world class” Leadership Development Center.13. There is a FORMAL-STRATEGIC HR Review Process.14. The “Top100,” and every unit’s Top10, are consciously managed.

The Talent50

15. “People/Talent Reviews” are the FIRST reviews.16. HR Strategy = Business Strategy.17. Make it a Cause Worth Signing Up For..

18. Set Sky High Standards.19. Enlist everyone in Challenge Century21.20. Pursue the Best!21. Up or Out.22. Ensure that the Review Process has INTEGRITY.23. Pay!

The Talent50

24. Training I: Train! Train! Train!25. TII: 100% “business people.”26. TIII: 100% Leaders.27. TIV: Boss as Trainer-in-Chief.28. Open Communication I: NO BARRIERS.29. Open Communication II: Share Information. (ALL!)30. Respect!31. INTEGRITY!32. Treat the Whole Individual.

The Talent50

33. Places of “grace.”34. MBWA: The “Rudy Rule.”35. Thank You!36. Promote for “people skills.” (ALL ELSE IS SECONDARY.)37. Honor youth.38. Early leadership assignments.39. Fast Tracking is the norm.40. Create a System of Mentoring.

The Talent50

41. Diversity!42. Diversity starts on the Board of Directors.43. WOMEN RULE.44. Weird Wins.45. We are all unique. 46. Bosses “win people over.”47. GOAL: Adventures of Mutual Discovery.48. Foster Independence.49. Enthusiasm!

The Talent50

50. Talent = Brand.

Tom Peters’

Talent50 02.20.2003

1. People First!

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Talent!

Tina Brown: “The first thing to do is to hire enough

talent that a critical mass of excitement starts to

grow.”Source: Business2.0/12.2002-01.2003

Whoops: Jack didn’t have a vision!*

*GE = “Talent Machine” (Ed Michaels)

2. Soft Is Hard.

“Soft” Is “Hard”

- ISOE

3. FUNDAMENTAL PREMISE: We Are in an

Age of Talent/ Creativity/

Intellectual-capital Added.

Age of AgricultureIndustrial Age

Age of Information IntensificationAge of Creation Intensification

Source: Murikami Teruyasu, Nomura Research Institute

4. Talent “Excellence” in

Every Part of the Organization.

5. P.O.T./ Pursuit Of Talent =

OBSESSION.

Model 25/8/53

Sports Franchise GM*

*48 = $500M

Organizing Genius

PARC’s Bob Taylor:

“Connoisseur of Talent”

Les Wexner: From sweaters to people!

6. Talent Masters Understand Talent’s

Intangibles.

Visibly energetic/ Passionate/ Enthusiastic … about everything.

Engaging/ Inspires others. (Inspires the interviewer!)

Loves messes & pressure. Impatient/ Action fanatic.

A finisher.Exhibits: Fat “WOW Project” Portfolio. (Loves to talk about

her work.)Smart.

Curious/ Eclectic interests/ A little (or more) weird.Well-developed sense of humor/ Fun to be around.

******

No. 1 re bosses: Exceptional talent selection & development record. (Former co-workers: “Did you visibly grow while

working with X?” / “How has the department/team grown on a ‘world-class’ scale during X’s tenure?”)

7. HR Is “Cool.”

ChicagoNovember 1999:

“support function” / “cost center” / “bureaucratic

drag”

or …

Are you “Rock Stars of the

Age of Talent”

Have you changed

civilization today?Source: HP banner ad

8. HR Sits at The Head

Table.

DD$21M

9. Re-name “HR.”

Talent Department

People Department

Center for Talent Excellence

Seriously Cool People Who Recruit & Develop Seriously Cool People

10. There Is an “HR

Strategy.”

11. There Is a FORMAL

Recruitment Strategy.

The NFL Standard!

12. There Is a FORMAL Leadership

Development Strategy.

13. There is a “World Class”

Leadership Development

CENTER.

DD: 0 to 60 in a flash (months)

14. There Is a FORMAL

STRATEGIC HR Review Process.

15. The “Top100,” and Every Unit’s

Top10, Are Consciously

Managed.

“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division

for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent

Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed

Michaels

16. “People”/ Talent” Reviews

Are the FIRST Reviews.

17. HR Strategy = Business Strategy.

18. Make it a “Cause Worth

Signing Up For.”

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley Brown

19. Set Sky High

Standards.

20. Enlist Everyone in Challenge Century21.

“If there is nothing very special about

your work, no matter how hard you apply yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

IBM’s Project

eLiza!** “Self-bootstrapping”/ “Artilects”

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

BW Cover/02.2003

“IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic

Research—even Financial Analysis. Can America Lose These

Jobs and Still Prosper?”

21. Pursue the Best!

“Differentiation is all about being extreme, rewarding the best and

weeding out the ineffective. … You build strong teams by treating

individuals differently. Just look at the way baseball teams pay 20-

game winning pitchers and 40-plus homerun hitters.”—Jack Welch

“best person in the world” —Arthur

22. Up or Out.

“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

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

23. Ensure that the Review

Process Has INTEGRITY.

25 = 100** “But what do I do that’s more important than developing

people? I don’t do the damn work. They do.”

24. Fork Over!

“Top performing companies are two to four times more likely

than the rest to pay what it takes to prevent losing

top performers.”

Ed Michaels, War for Talent (05.17.00)

25. Training I: Train! Train!

Train!

3 Weeks in May

“Training” & Prep: 187“Work”: 41

(“Other”: 17)

1% vs.

Divas do it. Violinists do it. Sprinters do it. Golfers do it.

Pilots do it. Soldiers do it. Surgeons do it. Cops do it.

Astronauts do it. Why don’t businesspeople do it?

“Knowledge becomes obsolete incredibly fast. The

continuing professional education of adults is the

No. 1 industry in the next 30 years … mostly on line.”

Peter Drucker,Business 2.0 (22August2000)

Edward Jones’ Training Machine*

146 hours/employee/yearNew hires: 4X avg.

3.8% of payroll

* #1, “The 100 Best Companies To Work For”/Fortune/01.2003

26. Training II: 100% “Business

People.”

27. Training III: 100%

LEADERS.

“I start with the premise that the

function of leadership is to produce more leaders, not more

followers.”—Ralph Nader

Brand You, Big Time!

I AM AN ARMY OF

28. Training IV: Boss as Trainer-

in-Chief.

Workout = 24 DPY in the Classroom

29. Open Communication I:

NO BARRIERS.

“The organizations we created have become tyrants. They have taken

control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls

that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez & Rene Tissen, Zero Space: Moving Beyond Organization Limits.

“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office

quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the

years ahead.

“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to

give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based

targeting systems to make the air strikes brutally effective.

“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the

real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly

together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business

2.0/ OCT2002

30. Open Communication II:

Share (ALL) Information.

m-“On” or Out of the Loop

“Managers in Finland always keep their phones on. Customers expect

fast reactions. And if you can’t reach a superior, you make many decisions

yourself—managers who want to influence decisions of subordinates must keep their phones open.” —Risto Linturi, Finnish m-guru, in Howard Rheingold’s Smart

31. Respect!

“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

“Leaders are living individuals whom employees smell, feel, touch their

presence.”#49

32. Embrace the Whole Individual.

33. Build Places of “Grace.”

“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

Rodale’s on “Grace” …

elegance … charm … loveliness … poetry in motion … kindliness ..

benevolence … benefaction … compassion … beauty

34. MBWA: The “Rudy

Rule.”

“The first and greatest imperative of command

is to be present in person. Those who

impose risk must be seen to share it.” —John

Keegan, The Masks of Command

35. Thank You!

“The deepest human

need is the need to be appreciated.”

William James

“The two most powerful things

in existence: a kind word and a thoughtful gesture.”

Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

36. Promote for “people skills.” (THE REST IS

DETAILS.)

33 Division Titles. 26 League Pennants. 14

World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.

Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky

Anderson—1 season.

37. Honor Youth.

“Why focus on these late teens and twenty-

somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history,

children are more comfortable, knowledgeable and literate than their parents about an

innovation central to society. … The Internet has triggered the first industrial revolution in history

to be led by the young.”

The Economist [12/2000]

8 Minutes*

—Dr. Sugata Mira, NIIT/ New Delhi/ 1999**

*Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”

38. Provide Early Leadership

Assignments.

39. Create a FORMAL System

of Mentoring.

W. L. GoreQuad/Graphics

40. Diversity!

“Diversity defines the health and wealth of nations in a new

century. Mighty is the mongrel. The hybrid is hip. The impure, the mélange, the adulterated, the

blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth.

Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs

economic growth and empowers nations.”

G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

CM Prof Richard Florida on

“Creative Capital”: “You cannot get a technologically

innovative place unless it’s open to weirdness,

eccentricity and difference.”

Source: New York Times/06.01.2002

“Where do good new ideas come from? That’s simple! From

differences. Creativity comes from unlikely juxtapositions.

The best way to maximize differences is to mix ages, cultures and

disciplines.”

Nicholas Negroponte

Duh!“We want our associate population to mirror our

customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the

neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s

what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking

staff in the store.”—Larry Johnston, CEO, Albertson’s

41. WOMEN RULE.*

every measure”Title, Special Report, Business Week, 11.20.00

“American women possess leadership abilities that are particularly effective in today’s organizations, yet their abilities remain undervalued and underutilized. In the future, what will distinguish one

organization and one country from another will be its use of human

resources. Today human resource utilization is not only a matter of social

justice but a bottom-line issue.”

Judy Rosener, America’s Competitive Secret

Source: Judy B. Rosener, America’s Competitive Secret

“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?”

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

“Investors are looking more and more for a relationship with their financial

advisers. They want someone they can trust, someone who listens. In my experience, in general,

women may be better at these relationship-building skills than are

men.”

Hardwick Simmons, CEO, Prudential Securities

“Thank you”

17 Men: 84 Women: 19

“Women speak and hear a language of connection and intimacy, and men

speak and hear a language of status and independence. Men communicate to obtain information, establish their

status, and show independence. Women communicate to create

relationships, encourage interaction, and exchange feelings.”

Judy Rosener, America’s Competitive Secret

63 of 2,500 top earners in F500

8% Big 5 partners

14% partners at top 250 law firms

43% new med students; 26% med

faculty; 7% deans

Source: Susan Estrich, Sex and Power

Opportunity!

U.S. G.B. E.U. Ja.

M.Mgt. 41% 29% 18% 6%

T.Mgt. 4% 3% 2% <1%

Peak Partic. Age 45 22 27 19

% Coll. Stud. 52% 50% 48% 26%

Source: Judy Rosener, America’s Competitive Secret

Ass Of The Year2002 (?): Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team

“In a lot of countries of the world, it would be very difficult for a woman to

be a good CEO. … I have a responsibility to do the best we can for

shareholders.” * **

*Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face

… to Margaret Thatcher or Carly Fiorina? (I would.)

“Deloitte was doing a great job of hiring high-performing women; in fact, women often earned

higher performance ratings than men in their first years with the firm. Yet the percentage of women

decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s male-dominated culture and found them wanting.

Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched

professions.”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. …

Male partners made assumptions: ‘I wouldn’t put her on that kind of

company because it’s a tough manufacturing environment.’ ‘That

client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”

Douglas McCracken, “Winning the Talent War for Women” [HBR]

Goldsmith College research (UK): Gender stereotypes re-enforced. Men who extoll successes rewarded, women not. Men

who face interviewer head on upgraded; women who look at floor or use sidelong

glances do better. Women who nod repeatedly do better, not men. Men who

give long answers score well, women who give short answers do well. (College grads

seeking jobs; HR interviewers—2 M, 2F.)

Source: The Observer/ London/ 01.12.2003

The Core Argument

1. We are in a War for Talent.2. The war will intensify.3. Women are under-represented in our leadership ranks.4. Women and men are different.5. Women’s strengths match the New Economy’s leadership needs—to a striking degree.6. Women are also the principal purchasers of goods and services—retail and commercial.7. Ergo, women are a large part of “the answer” to the War for Talent issue/opportunity.

42. Diversity Starts on the Board of Directors.

“Would Congress [the Boardroom] be a different place if half the members

were women?”

From Sex and Power, Susan Estrich

Norwegian Law: Boards must have

at least 40%

women.

43. Hire (& Protect) Weird.

“Are there enough weird people in

the lab these days?”V. Chmn., pharmaceutical house, to a lab director (06.01)

The Cracked Ones Let in the Light

“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found

among non-conformists, dissenters and rebels.”

David Ogilvy

Deviants, Inc. “Deviance tells the story of every mass

market ever created. What starts out weird and dangerous

becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way

out there.”

Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

“Rumsfeld values mavericks and tries

to protect and promote them.” —

Newsweek/ 09.16.02

44. Cherish Boldness!

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

“In the modern military, risk is anathema to rising stars, who cannot afford any slip-ups on

their records. ‘Zero defects’ and ‘zero tolerance’ are common

bywords.”—Newsweek/09.16.02

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

45. We Are All Unique.

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures.

46. Bosses “Win People

Over.”

WHAT AN IDIOT: “Instead of employees being in the driver’s

seat, now we’re in the driver’s seat.”

PJ: “Coaching is winning

players over.”

47. GOAL: Voyages of

Mutual Discovery.

I am inalterably opposed to “organization change,”

“empowerment,” “motivation.” The goal: to awaken the latent talent

already within, by providing opportunities worthy of the

individual’s investment of her or his most precious resources …

time and emotional commitment.

Leaders-Teachers Do Not “Transform People”!

Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which

(3) allow people to fully (and safely, mostly—caveat: “they”

don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous

discovery voyage (alone and in small teams, assisted by an

extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers-

leaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage

“photo-ops,” and ring the church bells 100 times to commemorate the bravery of their

“followers’ ” explorations!

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

“H.R.” to “H.E.D.” ???

Enablement

Department

48. Foster Independence.

“You must realize that how you invest your human capital matters as much as how you

invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’

you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they

appreciate? How much will my portfolio of career options grow?’ ”

THE rise up and flee your cubicle STREET JOURNAL

Adventures in Capitalism

THE I work for a company called

Me STREET JOURNAL

Adventures in Capitalism

Thriving in 24/7 (Sally Helgesen)

START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of

where we are.

LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.

CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your

own business.

WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking

people up.”

49. Enthusiasm!

“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

50. Talent = Brand.

What’s your company’s …

EVP?Employee Value Proposition, per Ed

Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

The Top 5 “Revelations”

Better talent wins.

Talent management is my job as leader.

Talented leaders are looking for the moon and stars.

Over-deliver on people’s dreams – they are volunteers.

Pump talent in at all levels, from all conceivable sources, all the time.

Source: Ed Michaels et al., The War for Talent

MantraM3

Talent = Brand

Tom Peters Squares Off with Jim Collins. Or:

The Case for …

Technicolor!Tom Peters/03.16.2004

“intrepid, unprincipled, reckless, predatory, with

boundless ambition, civilized in externals but

a savage at heart.”

Herman Melville on JPJ: “intrepid, unprincipled,

reckless, predatory, with boundless ambition,

civilized in externals but a savage at heart.” —from Evan

Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy

“Humility: The Surprise Factor in Leadership … bosses with Gung-

ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/

re JCollins/10.03

Jim & Tom. Joined at the

hip. Not.

I. Good to GreatII. Built to LastIII. Quiet, Humble Leaders

Good to Great: Fannie Mae … Kroger … Walgreens … Philip

Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo

Good to Great: Fannie Mae … Kroger … Walgreens … Philip

Morris … Pitney Bowes … Abbott … Kimberly-Clark … Wells Fargo

Good to Great: “Fannie Mae and Freddie Mac receive as much as

$164 billion in implicit federal subsidies but have done little to

increase home ownership or reduce the cost of home loans,

according to a draft study by the Federal Reserve.” —New York Times/12.23.03

(Average rate reduction is 7 basis points, or .07%)

Great Companies … SET THE AGENDA.

(Period.)

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers

US Steel … Ford … Macy’s … Sears … Litton Industries … ITT … The Gap … Limited … Wal*Mart … P&G … 3M …

Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Oracle …

Microsoft … Enron … Schwab … GE … Southwest … Laker …People Express

… Ogilvy … Chiat/Day … Virgin … eBay … Amazon … Sony … BMW … CNN …

T & B: Atari, DEC, WANG?

J vs. T: HP/CarlyF?

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

Warren Bennis & Patricia Ward Biederman/

Organizing Genius: Great Groups Don’t

Last Very Long!

W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791

HE CHANGED THE WORLDHE CHANGED THE WORLD

AND AND

ENRICHED HUMANITY ENRICHED HUMANITY

“We are in a

brawl with no rules.”

Paul Allaire

“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a

timely death. … We believe that most corporations will find it impossible to

match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—has the same suddenness [as the trauma that beset civilization in

1000 A.D.]”

Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

Rate of Leaving F500

1970-1990: 4XSource: The Company, John Micklethwait & Adrian

Wooldridge (1974-200: One-half biggest 100 disappear)

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and

financially, yes, but not structurally and economically.”

Peter Drucker, Business 2.0

“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms

should aspire to live forever? Greatness is fleeting and, for corporations, it will become

ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic

frenzy of value creation during a short space of time, rather than to live forever.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness.

F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.

“Quiet, workmanlike, stoic leaders bring about the big

transformations.”--JC

“Humility: The Surprise Factor in Leadership … bosses with Gung-

ho Qualities and Charisma May Be Out of Fashion” —Headline/FT/

re JCollins/10.03 (TP: scribble: “Nelson, Wellington, Montgomery, Disraeli, Churchill, Thatcher”)

WellingtonNelsonDisraeliChurchill

MontgomeryThatcher

“Humble” Pastels?

T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. FranklinA. Lincoln/U.S. Grant/W.T. Sherman

TR/FDR/LBJ/RR/JFKPatton/Monty/Halsey

M.L. King/C. de Gaulle/M. Gandhi/W. ChurchillPicasso/Mozart/Copernicus/Newton/Einstein/Djarassi/Watson

H. Clinton/G. Steinem/I. Gandhi/G. Mieir/M. Thatcher E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/

S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/

T.A. Edison Rummy/Norm/Henry/Wolfie

Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth

Dickinson/Arabella Babb Mansfield/Margaret Sanger

“You can’t behave in a calm, rational manner. You’ve got to

be out there on the lunatic fringe.” — Jack Welch,

on GE’s quality program

“When it comes to transformative technologies, overoptimistic investors are actually working for the common good—even if they don’t know it. We can be

glad that investors financed the construction of thousands of miles of track in the middle of the nineteenth century, despite the fact that most of

them dropped a bundle doing it. The same goes for over-optimistic investors who poured money into

semiconductors thirty years ago, financed undersea fiber-optic cables in the late nineties, and now are poised to lose their shirts in the coming

nanobubble. In the dreams of avarice lie the seeds of progress.” —James Surowiecki/New Yorker/03.2004

“the wildest chimera of a moonstruck

mind” —The Federalist on

Jefferson’s Louisiana Purchase

“Roosevelt’s duplicity, Churchill’s self-absorption” … “We are all

worms. But I do believe that I am a glow-worm.” (WSC) … “Imperial

and bold” [WSC and TR] … “arrogance and instability” … “rough, sarcastic, bullying”

Source: Jon Meacham, Franklin and Winston, et al.

“a vainglorious self-promoter spoiling for

a fight” —Arthur Koestler on Galileo

“In my experience, all successful

commanders are prima donnas, and must be so

treated.” —George S. Patton

Herman Melville on JPJ: “intrepid, unprincipled,

reckless, predatory, with boundless ambition,

civilized in externals but a savage at heart.” —from Evan

Thomas, John Paul Jones: Sailor, Hero, Father of the American Navy

Audie Murphy was the most decorated soldier in WW2.

He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he

never won …

… the Good Conduct medal.

“Men with no vices have very few virtues.” —A. Lincoln

Jim Collins vs. Michael Maccoby

“quiet, workmanlike, stoic”vs.

“larger-than-life leaders”/ “egoists, charmers, risk-takers with big

visions”: Carnegie, Rockefeller, Edison, Ford, Welch, Jobs, Gates

The Re-imagineer’s Credo … or, Pity the Poor Brown*

Technicolor Times demand …Technicolor Leaders and Boards who recruit …

Technicolor People who are sent on …Technicolor Quests to execute …

Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …

Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …

Technicolor Times.

“In Italy for 30 years under the Borgias they had warfare, terror, murder,

bloodshed—and produced Michelangelo, da Vinci and the

Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce

—the cuckoo clock.”

Orson Welles, as Harry Lime, in “The Third Man”

The SE17: Origins of Sustainable

Entrepreneurship

SE17/Origins of Sustainable Entrepreneurship

1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab,

Starbucks, Oracle, Sun, Fox, Stanford University, MIT)2. Perpetually determined to outdo oneself, even to the

detriment of today’s $$$ winners (Apple, Cirque du Soleil, Microsoft, Nokia, FedEx)

3. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)

4. Culture of Outspoken-ness (Intel, Microsoft, FedEx, CitiGroup, PepsiCo)

5. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft)

6. “Culturally” as well as organizationally Decentralized (GE, J & J, Omnicom)7. Multi-entrepreneurship/Many Independent-minded Stars (GE, Time Warner)8. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J & J, Virgin)9. Scour the world for Ingenious Alliance Partners—especially exciting startups (Pfizer)10. Don’t overdo “pursuit of synergy” (GE, J & J, Time Warner)11. Find and Encourage and Promote Strong-willed/ Independent people (GE, PepsiCo)12. Ferret out Talent … anywhere and everywhere/ “No limits” approach to retaining top talent (Nike, Virgin, GE, PepsiCo)

13. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo)14. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general)15. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo)16. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin, old Raychem) (God help you when #2 is missing: Enron)17. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

Tom Peters’

Re-imagine Manifesto!

v09.14.2004

Tom Peters’ Re-imagine Manifesto!

New Delhi. Thirteen September 2004. I awoke, jetlagged and sweaty, at 3A.M. I’d had a nightmare. Stark realism. I was, as usual, accused of overstatement and a few (or more) too many exclamation marks (!!!!!). Only this time I’d acceded to “They.” The “They” who believe in The Plan and Built to Last and Continuous Improvement and Quiet, Humble Leaders. No! No! I had failed, in my dream, to live up to my Fervent Beliefs! This must not pass! In a sweat, fearful that the time would not come ’round again, I turned on the light, picked up a pad of paper, and began to scribble frantically. Herewith the result.

Tom’s Re-imagine Manifesto!

They say … my (Tom) language is extreme.I say … the times are extreme.

They say I’m extreme.I say I’m a realist.

They say I demand too much.I say they accept mediocrity & continuous improvement too readily.

They say “We can’t handle this much change.”I say “Your job and career are in jeopardy; what other options do you have?”

They say Brand You is not for everyone.I say the alternative is unemployment.

They say “What’s wrong with a ‘good product’?”I say Wal*Mart or China or both are about to eat your lunch. Why can’t you provide instead a Fabulous Experience?

They say “Take a deep breath. Be calm.”I say “Tell it to Wal*Mart. Tell it to China. Tell it to India. Tell it to Dell. Tell it to Microsoft.”

They say the Web is a “useful tool.”I say the Web changes everything. Now.

They say “We need an Initiative.”I say “We need a Dream. And Dreamers.”

They say Great Design is “nice.”I say Great Design is “necessary.”

They say I “overplay” the “women’s thing.”I say the share of Women in Senior Leadership Positions is a Waste and a Disgrace and a Strategic Marketing Error.

They say the Women’s Market Opportunity I harp on is “doubtless important.”I say 9 out of 10, make that 99 out of 100, companies aren’t within striking distance of accurately estimating the potential of the Women’s Market … let alone exploiting it.

They say the boomer-geezer market is also “doubtless important.”I say the boomer-geezer market amounts to a Redefining Moment.

They say we need a “project” to exploit the women-boomer-geezer market.I say we need Total Strategic Realignment to exploit the Women-Boomer- Geezer Opportunity.

They say “Wow” is “typical Tom.”I say “WOW” is a Minimum Survival Requirement.

They say “effective governance” is important.I say bold-brash Boards that are representative of the market served—more than a token woman or two and an empty seat for the “forthcoming Hispanic”—are an Imperative. Now.

They say “Plan it.”I say “DO IT.”

They say “We need more steady, loyal employees.”I say “WE NEED MORE FREAKS WHO ROUTINELY TELL THOSE ‘IN CHARGE’ TO TAKE A FLYING LEAP … BEFORE IT’S TOO LATE.”

They say “We need Good People.”I say “We need Quirky Talent.”

They say “We like people who, with steely determination, say, “I can make it better.’”I say “I love people who, with a certain maniacal gleam in their eye, perhaps even a giggle, say, ‘I can turn the world upside down. Watch me!’”

They say “We must speed things up.”I say “We must Radically change the Corporate Metabolism until Insane Urgency becomes a Sacrament.”

They say “Sure, we need ‘Change.’”I say we need “REVOLUTION NOW.”

They say (acknowledge), “Okay, we need revolution.”

I say “REVOLUTION.”They say “fast follower.”I say “battered and bruised leader.”

They say “Conglomerate & Imitate!”I say “Create & Innovate!”

They say “Market share.”I say “Market CREATION.”

They say “Improve & Maintain.” I say “DESTROY & RE-IMAGINE.”

They say “We like words such as ‘calm’ … ‘certainty’ … ‘is.’”I say “I like words/phrases such as ‘turbulent’ ‘opportunity’ … ‘might be’.”

They vote for Republicans and Democrats.I vote for Independents and Libertarians.

They say “Normal.”I say “Weird.”

They say “Happy balance.”I say “Creative Tension.”

They say they favor a “team” that works & lives in “harmony.”I say “give me a raucous brawl among the most creative people imaginable.”

They say “Peace, brother.”I say “Bruise my feelings. Flatten my ego. SAVE MY JOB.”

They say “Vanilla.”I say “Cherry Garcia.”

They say “Basic Black.”I say “TECHNICOLOR RULES!”

They say “Branding is for the likes of Nike.”I say “Branding is for Everyone & Anyone with the Passion & Tenacity to foist their Wonderful & Weird Point of View on the world … and the New World’s (read: Web’s) power allows- encourages such “silly” (until recently) visions-of-ubiquity to become reality, perhaps overnight.”

They say we need “happy customers.”I say “Give me pushy, needy, nasty, provocative customers who will drag me down Innovation Boulevard.”

They say they want to partner with “best of breed.”I say “Give me Coolest of Breed.”

They say we need “supply chain harmony.”I say we need “supply chain Innovation.”

They say “We seek Harvard MBAs.”I say I seek Certificate-free “PhDs” from the School of Hard Knocks.

They say they want recruits with a “spotless records.”I say “the Spots are what matter most.”

They say “Integrity is important.”I say “Tell the Unvarnished Truth, All the Time … or take a Long Hike.”

They read Jim Collins and grok on “quiet, humble leaders.”I say “Give me the Bold, the Brash, the Brassy, the Egocentric Dreamers who, like Steve Jobs, ‘Dent the Universe.’”

They say they need a “vision” born of McKinsey.I say we need a “Grandiose Dream” born of a Passionate & Intemperate Belief that the world can be a different, better place.

They say healthcare, our biggest industry, is “a mess.”I say our hospitals, which kill over 100,000 patients a year, are part of a system that is “a disgrace.”

They say “obesity is a problem” … “lose some weight.”I say Re-imagine the entire healthcare system … NOW … to focus on Prevention & Wellness.

They say “no child left behind.”I say “education” is leaving ALL our children behind, as it is totally mis-aligned to deal with tomorrow’s (this afternoon’s) uncertain, ambiguous, creativity-driven economy.

They say “Of course we believe in marketing.”I say “Is the CMO [Chief Marketing Officer] on the Board of Directors?”

They say “Of course we believe in marketing.”I say “Has your customer data base won numerous major industry awards?”

They say “Of course we believe in marketing.”I say “Is your Web site Sooooo Cool, Sooooo Fresh, Sooooo Friendly to Use that it gives you goose pimples just to e-visit, even though you’ve seen it 1000 times?”

They say “Of course we believe in marketing.”I say “How many in-depth customer visits did the CEO make last month?”

They say “Yes, the ‘Women’s thing’ is important.”I say “Do women hold at least 1/3rd of your Board seats?”

They say “We’re coming around on the design bit.”I say “Is, as at Braun, your Chief Design Officer on the Board of Directors?”

Tom’ Re-imagine Manifesto!

They say “Of course we think the ‘experiences thing’ is important.”I say “Is there an ‘EVP Experiences’?”

They say “Of course innovation is important.”I say “Is your percentage of revenue devoted to R & D at least 1.5 (2.0? 2.5?) times the industry average?”

They say “Of course we believe in IS/IT.”I say “Is the CIO on the Board of Directors?” (Only 5% of Fortune500 CIOs are on the Board. One example: Wal*Mart.)

They say “Of course we believe in IS/IT.”I say “How many members of your Board are under 35 years old?”

They say “We believe in having a ‘flat organization.’”I say “Is your headquarters in a Tower?”

They say “Improve.”I say “Re-imagine!”

They say we need to “bring effectiveness to the supply chain.”I say we need an IS/IT/Best Sourcing revolution based on nothing less than an Entirely Original Vision of what organizations are and how they interact.

They say “Globalization is a bumpy road.”I say India and China and Asia in general are within two decades of running the show: Get ready or get trounced.

They say “defense” and “consolidation” are musts for a global game.I say encourage Offense, nurture a Generation (or 10) of Entrepreneurs, cherish Creativity & Risk-taking from primary school onwards … and don’t expect to be saved by a bunch of bulky, retro behemoths commanded by a phalanx of Old White Guys who think 30 minutes a day on the corporate treadmill and 27 holes on the links are a fit defense against Revolution.

They say “Get an MBA.”I say “Get an MFA.”

They say “If it can’t be precisely measured then it isn’t real.” (And I suppose if it can be measured it is real? Think Enron? Adelphia? WorldCom?)

I say “If it can be precisely measured it isn’t real.” (Think Age of Intangibles & Relationships.) (Think: “He knew the price of everything and the value of nothing.”)

They say “Rationality is the Bedrock of Modern Society.”I say “Irrationality [irrational exuberance?] is the Mother of all True Entrepreneurial Pilgrimages.”

They say “Order is the necessary precursor to measured, sustainable success.”I say “Dis-order is the precursor to Opportunistic Sorties, Market Creation, Quantum Leaps, and Entrepreneurial Adventure.

They say “To get anywhere, you have to know exactly where the hell you’re headed.”I say “If you know precisely where you’re headed and exactly how you’re gonna get there, then you clearly suffer from Advanced Shrivelus Imaginationus.” (This disease is fatal.)

They say “Employees need Well-defined Structure.”I say “Talent should be encouraged to embark on Quests to the Unknown.”

They say “I’m here to maximize shareholder value.”I say “I’m here to inflame each & every member of my Awesome Staff to embark with Vigor & Determination & Passion & Enthusiasm on a Quest of Monumental Consequence.” (And if I come even close to succeeding, it will, in fact, dramatically up the odds of Thriving Amidst Today’s Chaos—and creating untold shareholder value in the process.)

They say “men.”I say “WOMEN.”

They say Diversity is a “good thing.”I say Diversity is a Fresh Breath of Creative Air … Absolutely Necessary for Economic Salvation in perilous times.

They say “Wait your turn, honor those who have marched these corridors before you.”I say Get Off Your Butt & Go for the Gold … TODAY … or sign the transfer papers willing your job in perpetuity to a Chinese or Indian who Gives a Shit and Gets Up (VERY) Early and works Saturdays & Sundays.

They say “offshoring” is a “blight.”I say the Earth proved not to be the center of the Solar System … and the USA is not the epicenter-in-perpetuity of the Earth … and that we had best learn … NOW … to prosper and take pleasure in a dynamic, exciting, creative, multi-polar economic environment. (Damn it.)

They say “It’s a fright.”I say “It’s a Helluva Ride.”

They say it’s “daunting.”I say it’s “a bronco-bustin’ day at the rodeo.”

They say “Life is a marathon; husband your strength.”I say “Life is a sprint. Begin planning your World-beating Me Inc. start-up … TODAY.”

They say lifetime employment was a boon.I say lifetime employment was Indentured Servitude, modern- day Slavery.

They say “safety net.”I say “I am my safety net; give me the ‘Ownership Society.’” (And I’m a lifelong Democrat.)

They say “zero defects.”I say “A day without a screw-up or two is a day pissed away.”

They say “Think about it.”I say “Try it.”

They say “Plan it.”I say “Test it.”

They say “continuous improvement.”I say “Bold Leaps.”

They say “Keep on Improvin’.”I say “Keep on Leapin’.”

They say “Built to last.”I say “Built to Soar. We’re all dead in the long run … live your Insane Fantasy. Devil take the hindmost.”

They (Jim Collins) say “Walgreens is Cool.”I say “I love Larry Ellison.” (Oracle rules … at least for the next ten minutes.)

They say “Play the odds.”I say “Reward excellent failures. Punish mediocre successes.” (Thanks, Phil Daniels.)

They say “Eighty-hour weeks will kill you.” I say “Work 35-hour weeks, and the Chinese will kill you.”

They say “Install cost controls with teeth.”I say “Ha. Ha. Ha. Blow Up the existing enterprise and start with a Clean Sheet of Paper.”

They say “Install cost controls with teeth.”I say “Grow the Top Line.”

They say “Radical change takes a decade.”I say “Radical change takes a Minute.” (See AA.)

They say “Times are changing.”I say “Everything has already changed. Tomorrow is the First Day of Your Revolution … or you’re Toast.”

They say “We can’t all be Anita Roddick or Maxine Clark or Stan Shih or Les Wexner or Jerry Yang.”I say “Why not?”

They say “We can’t all be Revolutionaries.”I say “Why not?”

They say “We can’t all be a Brand.”I say “Why not?”

They say “Beware the Hype.”I say “Been to China lately? Visited Infosys in Bangalore lately?”

They say this is just a Rant.I say this is just Reality.

They say “The man is not nice.”I say “The times are not forgiving.”

Brand Talent+: The Education

Fiasco

FES/NOV2001: New Work. New Education.

The Twain Must Meet.

TP Mood

Anger.Despair.

Hopelessness.

Losing the War to Bismarck (and Rockefeller)

J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect docility to our

molding hands. … The task is simple. We will organize children and teach

them in a perfect way the things their fathers and mothers are doing in an imperfect way.”

John Taylor Gatto, A Different Kind of Teacher

“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!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND

GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out

of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:

Every school I visited was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

An Unnatural Way to “Learn”

Schools’ “Kafka-like rituals”: “enforce sensory deprivation on classes of children held in

featureless rooms … sort children into rigid categories by the use of fantastic measures such as

age-grading, or standardized test scores … train children to drop whatever they are occupied with and to move as a body from room to room at the sound of a bell, buzzer, horn, or klaxon … keep children under constant surveillance, depriving

them of private time and space …

Kafka-like rituals (cont.): “assign children numbers constantly, feigning the ability to

discriminate qualities quantitatively … insist that every moment of time be filled with low-

level abstractions … forbid children their own discoveries, pretending to possess some vital secret to which children must surrender their

active learning time to acquire.”

Doing Stuff that Matters!

“During the first years of life, youngsters all over

the world master a breathtaking array of

competences with little formal tutelage.”

Howard Gardner, The Unschooled Mind

The Learner’s Manifesto

The brain is always learning.Learning does not require coercion.

Learning must be meaningful.Learning is incidental.

Learning is collaborative.The consequences of worthwhile learning

are obvious.Learning always involves feelings.

Learning must be free of risk.

Frank Smith, Insult to Intelligence

“Really bright kids who just needed to get excited” —teacher,

Oakley School

Tom’s Edu3M

Manifesto**Manifesto for Education in the 3rd Millennium

Education3MLearning is a normal state.Children are learnavores.

Prodigious feats of learning are common as dirt. [Watch an H.S. QB studying game film.]

We learn at different rates.We learn in different ways.

Boys and girls learn [very] differently.In a class of 25, there are 25 different trajectories.

Learning in 40-minutes blocks is bullshit.Learning for tests is utterly insane.

There are numerous rigorous evaluation schemes, of which testing is but one—and abnormal, by “real

world” standards.

Education3M

We learn most/fastest/most completely when we are passionate about what we are learning and it

matters to us. [Salience rules!] Think EBI/LBI: Education by Interest/

Learning by Internship.Classrooms are abnormal places.

We need changes of pace. [Japanese recesses after each class.]

International test scores are not correlated with hours-per-year in class.

Big classes are slightly problematic. Big schools suck. Period.

Education3M

“All this”—the right stuff—fits the NWW/New World of Work hand-in-glove. [NWW = Age of Creativity.]

U.S. schools circa 2001 are a vestige of the Prussian-Fordist model, more interested in shaping behavior than stoking the fires of lifelong learning.

Cutting art-music budgets is truly dumb.Learning is a matter of Intensity of Engagement, not elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]

Teachers need enough space-time-flexibility to get to know kids as individuals.

Scientific discovery processes and the teaching of science are utterly at odds. [Exploration vs. spoon-feeding.]

Education3M

Our toughest “learning achievement”—mastering our native language—does not

require schools, or even competent parents. [It does require a desperate need-to-know.]

Great teachers are great learners, not imparters-of-knowledge.

Great teachers ask great questions—that launch kids on lifelong quests.

The world is not about “right” & “wrong” answers; it is about the pursuit of increasingly

sophisticated questions—just ask a ski instructor or neurosurgeon.

Education3M

Most schools spend most of their time setting up contexts in which kids learn not to like

particular subjects. [Evidence shows that such anti-learning sticks!]

Vigorous exploration is normal … until you are incarcerated in a school.

“Bite size” education-learning is neither education nor learning.

Learning takes place rapidly on the cheerleading squad, the football team, the school newspaper, the drama club, at the after-class job--just not in

the hyper-structured classroom.

Education3M

The “school reform” “movement” is a giant step … backwards … embracing the Prussian-Fordist paradigm with renewed vigor—at exactly the

wrong time.There are large numbers of superb schools, superb principals, superb teachers; sadly, they not only fail

to infect the [largely timid] rest, but are ordinarily supplanted by wusses & wimps.

Alas, the teaching profession does not ordinarily attract “cool dudes & dudettes.”

Schools of “education” should by and large have their charters revoked.

Education3M

Stability is dead; “education” must therefore “educate” for an unknowable,

ambiguous, changing future; thence, learning to learn & change is far more

important than mastery of a static body of “facts.”

“Education” must “develop in youth the capabilities for engaging in intense concentrated

involvement in an activity.” [James Coleman, 1974.] [Hint: It doesn’t.] [Hint: Understatement.]

“The boys who made the best ‘Grotties’ usually

turned out to be nonentities later; boys who hated

Groton did much better.”FDR biographer John Gunther (quoted in Whoever Makes the

Most Mistakes Wins, Richard Farson & Ralph Keyes)

“Fail . Forward.

Fast.”High Tech CEO, Pennsylvania

Read This!

Richard Farson & Ralph Keyes: Whoever Makes the Most

Mistakes Wins: The Paradox of Innovation

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