NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

insure that it is not a insure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

InnovateInnovate..OrOr DieDie..

ExpoManagement MexicoExpoManagement MexicoCentro de Exposiciones Banamex/10 November 2010Centro de Exposiciones Banamex/10 November 2010

(Slides at tompeters.com)(Slides at tompeters.com)

Paul Ormerod: “I am often I am often asked by would-be asked by would-be

entrepreneurs seeking entrepreneurs seeking escape from life within escape from life within

huge corporate huge corporate structures, ‘How do I structures, ‘How do I build a small firm for build a small firm for myself?’ The answer myself?’ The answer

seems obviousseems obvious … …

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How

do I build a small firm for myself?’ The answer seems

obvious: Buy a very Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.

TheTheyy found that found that nonenone ofof

the lon the longg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

The The InnovateInnovate

or Die or Die 1818

#1#1

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

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it. Try it. Try it. try it. Try it. Try it. try it.

Try it.Try it. Screw it up.Screw it up. Try Try it. Try it. Try it. it. Try it. Try it.

1/451/45

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs Ross Perot (vs “Aim! Aim! Aim!”“Aim! Aim! Aim!” /EDS vs GM/1985 /EDS vs GM/1985)

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for ActionA Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties

#1A#1A

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly

Read This!

Richard Farson & Ralph Keyes:

Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox

of Innovationof Innovation

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

#1B#1B

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

#2#2

The “Parallel The “Parallel Universe” Universe”

AxiomAxiom

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flamesfan the flames.”.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

#3#3

Little =Little =

BIGBIG***Thank you, Mr. Prime Minister*Thank you, Mr. Prime Minister

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

Socks = Socks = 10,00010,000

see see greengreen = recover = recover

20% 20% fasterfaster

#4#4

XFX = XFX = #1#1

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure! Monthly! Part of evaluation! [The PA’s *Measure! Monthly! Part of evaluation! [The PA’s Club.]Club.]

““XFXXFX Social Social Accelerators.” Accelerators.”

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! functions! (Purposefully. Consistently. Measurably.)(Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. freelancer/Brand You, or as entrepreneur.

THE WHOLE POINT HERE IS THAT “XFX” IS THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINLY THE #1 OPPORTUNITY ALMOST CERTAINLY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX MOMENT-TO-MOMENT AFFAIRS, XFX PER SE PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE THE TOP OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.

#5#5

1980:1980: “Strategic “Strategic Thrust Thrust

Overlay”Overlay”

GEGE

WorkoutWorkoutVA/ServiceVA/ServiceSix SigmaSix SigmaInflationInflationR&D/BusinessR&D/Business Development DevelopmentRisk ManagementRisk Management

G[B]TD: TacticsG[B]TD: Tactics

SmallSmall [but powerful] Central [but powerful] Central “Staff”* [*Line-like] “Staff”* [*Line-like]Senior “Homegrown” Boss [& Staff]Senior “Homegrown” Boss [& Staff]Enormous IncentivesEnormous Incentives [$/Eval] [$/Eval]Line Accountability [Line Accountability [NotNot “Matrix” “Matrix” ] ]Demo-led [Emergent Methodology]Demo-led [Emergent Methodology]“Tour of [External] Excellence”“Tour of [External] Excellence”“Blitz” Training“Blitz” TrainingCentral Unit/Finite LifeCentral Unit/Finite LifeSpeed!Speed!Goal: Goal: “Culture Change”!“Culture Change”!

#6#6

“‘“‘Decentralization’ Decentralization’ is is notnot a piece of a piece of

paper. It’s paper. It’s notnot me. me. It’s either in your It’s either in your heartheart, or not.”, or not.”

——Brian Joffe/BIDvestBrian Joffe/BIDvest

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

#7#7

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

Reason:Reason:

Mittelstand!Mittelstand!**

*E.g.: Goldmann Produktion*E.g.: Goldmann Produktion

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

#8#8

We We areare the the companycompany we keepwe keep

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing focus on inventing

all its own products to developingall its own products to developing

others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful

example, Mr. Clean Magic Eraser, based on a product found in example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.”an Osaka market.” ——FortuneFortune

““Don’t Don’t benchmark, benchmark,

futuremark!”futuremark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

CUSTOMERS: “Future-“Future-defining customers defining customers

may account for only may account for only 2%2% to to 3%3% of your total, of your total, but they represent a but they represent a

crucial window on crucial window on the future.”the future.”

Adrian Slywotzky, Mercer Consultants

#8A#8A

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt

#8B#8B

“The The Bottleneck Bottleneck

……

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”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:

AtAt thethe totop!”p!” — Gary Hamel/Harvard Business Review

#9#9

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

#10#10

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

1818 secondsseconds

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than that from any other single activity.)that from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

#11#11

The The fourfour most most importantimportant wordswords in any in any

organization are …organization are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.comSource: courtesy Dave Wheeler, posted at tompeters.com

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.

Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]colleagues]

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““Managing winds up being Managing winds up being the management of the the management of the allocation of resources allocation of resources

against tasks. Leadership against tasks. Leadership

focuses on people. focuses on people. MMyy definition of a leader definition of a leader

is someone who is someone who helhelpps s ppeoeopple le

succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are entrepreneursbeings are entrepreneurs..

When we were in the caves we were When we were in the caves we were all self-employed . . . finding our food, all self-employed . . . finding our food,

feeding ourselves. That’s where feeding ourselves. That’s where human history began . . . As human history began . . . As

civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped us, ‘You are labor.’ We forgot that we us, ‘You are labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.”

Source: Muhammad Yunus/The News Hour—PBS/1122.2006

#12#12

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

#13#13

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your your

glasses, glasses, sir?”*sir?”*

*Kingfisher Air*Kingfisher Air

2-cent 2-cent candycandy

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

parkingparking lotlot**

*Disney*Disney

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

<TG<TGWWand …and …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

StarbucksStarbucks = = ShaShapperer ofof CultureCulture:: “At our core, “At our core,

we’re a coffee company, we’re a coffee company, but the opportunity we but the opportunity we

have to extend the brand is have to extend the brand is

beyond coffee; beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

CCXXOO**Chief eXperience Officer

#14#14

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

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

most people’s vocabularies, design most people’s vocabularies, design means veneer. … But to me, nothing means veneer. … But to me, nothing could be further from the meaning could be further from the meaning

of design.of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs—Steve Jobs

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe principalrincipal

differencedifference between love between love

and hate! and hate!

CCDDOO**Chief DesignDesign Officer

National Strategy!National Strategy!

New ZealandNew ZealandKoreaKorea

#15#15

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to India combined—more than twice as big in fact. Given those numbers, it would be foolish to

ignore or underestimate the female consumer. And yet many companies do just that—even ones ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s that are confidant that they have a winning strategy when it comes to women. Consider Dell’s

…”…”

•Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““One thing is certain: women’s rise in power, which is linked to the increase in wealth One thing is certain: women’s rise in power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labour or to be consumers with rising budgets and longer content to provide efficient labour or to be consumers with rising budgets and more autonomy to spend. They are increasingly becoming directors, managers and more autonomy to spend. They are increasingly becoming directors, managers and entrepreneurs. Some studies have shown a correlation between the presence of entrepreneurs. Some studies have shown a correlation between the presence of women in managerial positions and a company’s financial results.women in managerial positions and a company’s financial results. ““This is just the beginning. The phenomenon will only grow as girls prove to be more This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system and enroll in higher numbers in successful than boys in the school system and enroll in higher numbers in

universities. universities. For a number of For a number of observers, we have alreadobservers, we have alreadyy entered the aentered the agge of e of ‘WOMENOMICS,’ the ‘WOMENOMICS,’ the economeconomy y as thouas thougght out and ht out and ppracticed bracticed byy women women.. Those Chinese who Those Chinese who

desire that their only child be male may soon realise that a daughter could be a desire that their only child be male may soon realise that a daughter could be a better investment. Bosses know full well that a team of both men and women is more better investment. Bosses know full well that a team of both men and women is more creative and efficient than one comprised of only men.creative and efficient than one comprised of only men.

Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)Women’s Forum for the Economy and Society (FT)

““Power Women 100”/Forbes 25.10.10Power Women 100”/Forbes 25.10.1026 CEOs Public Companies:26 CEOs Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

**Women Women decidedecide**Women Women savesave**Women Women ssppendend**Women Women rulerule

#16#16

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

44-6544-65:: “New “New Customer Customer Majority”Majority” * *

*45% larger than 18-43; 60% larger by 2010*45% larger than 18-43; 60% larger by 2010

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

#17#17

Tweet 10.05.10:Tweet 10.05.10: Word Word "commodity" "commodity" obscene! ! "Commodity" state of "Commodity" state of

mind! mind! ANYTHINGANYTHING ... can be ... can be differentiated numerous differentiated numerous

ways—logistics, quality of ways—logistics, quality of relationship, co-relationship, co-

development of new use ...development of new use ...

$50B+*$50B+**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

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

AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

MasterCard MasterCard AdvisorsAdvisors

The Value-added Ladder

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesServicesGoodsGoods

Raw Materials Raw Materials

#18#18

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through service. through service.

Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative, and open-minded.Be adventurous, creative, and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

14,00014,00020,00020,000

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

““Insanely Insanely Great”Great”

Steve JobsSteve Jobs

““Radically Radically thrilling”thrilling”

BMW

““We are crazy. We should do We are crazy. We should do something when people say it is something when people say it is

‘crazy.’‘crazy.’ If people say If people say something is ‘good’, it something is ‘good’, it means someone else means someone else is already doing it.”is already doing it.”

—Hajime Mitarai, Canon—Hajime Mitarai, Canon

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

MichelangeloMichelangelo

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game-changer”“Game-changer”

Scale?

Excellence.Excellence.Always.Always.

InnovateInnovate..OrOr DieDie..