tom peters with kpmg

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”

SECTION SECTION ONEONE OF TWO OF TWO

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

KPMG/Nairobi/21July2007KPMG/Nairobi/21July2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

EXEXCELLEN CELLEN ALWALWAYSAYS..

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.” —Bill Young, race

car driver (courtesy Andrew Sullivan)

profits, profits, people people or or

people, people, profits? profits?

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

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

The The lastlast word: word: There There is is nono “last “last

word.”word.”

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Wal*Mart … Dell … Intel … Dell … Intel … Yahoo … Home Yahoo … Home

Depot … Depot … Microsoft … GEMicrosoft … GE

Life 101: A 40-year ReflectionLife 101: A 40-year Reflection

Go on offense. Go on offense. Give everybody a shot. Give everybody a shot.

Decentralize. Decentralize. Try a bunch of stuff.Try a bunch of stuff.

Make it up as you go along. Make it up as you go along. Get some stuff wrong.Get some stuff wrong.

Laugh a lot.Laugh a lot.Get some stuff right. Get some stuff right. Become a “success.”Become a “success.”

Extract “lessons learned” or “best practices.”Extract “lessons learned” or “best practices.”Thicken the Book of Rules for Success.Thicken the Book of Rules for Success.

Become evermore serious.Become evermore serious.Enforce the rules to increasingly tight tolerances.Enforce the rules to increasingly tight tolerances.

Go on defense. Go on defense. Install walls. Install walls.

Protect-at-all-costs today’s franchise. Protect-at-all-costs today’s franchise. Centralize. Centralize.

Calcify. Calcify. Install taller walls.Install taller walls.Write more rules.Write more rules.

Become irrelevant and-or die.Become irrelevant and-or die.

Final slide set will appear at …

tompeters.comtompeters.com

NOTE: NOTE: To appreciate this To appreciate this presentation, you need Microsoft presentation, you need Microsoft

fonts:fonts: “Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller” and and “Verdana”“Verdana”

MasterMasterExcellence. Always.Excellence. Always.

part part oneone (of 7) (of 7)

“all you need to know”“all you need to know”(dwelling on the obvious)(dwelling on the obvious)

not your father’s worldnot your father’s world

introduction to excellence.introduction to excellence.18 june 200718 june 2007



Master*Master*ExcellenceExcellence

part part twotwo (of 7) (of 7)innovate.innovate.

Or.Or.Die.Die.

18 june 200718 june 2007



Master/Master/Excellence. Always./Excellence. Always./

part part THREETHREE (of 7) (of 7)

upup,, up, up, up,up, upup … …the value added ladderthe value added ladder (solutions-experiences-dreams-lovemarks)(solutions-experiences-dreams-lovemarks)

18 June 200718 June 2007



Master/Master/Excellence. Always./Excellence. Always./

part part FOURFOUR (of 7) (of 7)

“new” Markets“new” Markets(Stupendous Opportunity)(Stupendous Opportunity)

18 June 200718 June 2007



MasterMasterExcellence. Always.Excellence. Always.

part part FIVEFIVE (of 7) (of 7)

people!people!(Brand you. Talent. Health. (Brand you. Talent. Health.

Education. Leadership.)Education. Leadership.)18 june 200718 june 2007



Master*Master*ExcellenceExcellence

part part SIXSIX (of 7) (of 7)excellence.excellence.summaries.summaries.

Lists.Lists.

18 june 200718 june 2007

Part Part sevenseven

Extended Extended Talent50 & Talent50 &

Leadership50Leadership500618.070618.07

part part oneone

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

2006.2006.

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

SSyynonnonyymsms

PurityPurityTranscendenceTranscendence

VirtueVirtueEleganceEleganceMajestyMajesty

AntonAntonyymsms

MediocrityMediocrity

The Peters PrinciThe Peters Principplesles:: Enthusiasm. Enthusiasm.

Emotion. Emotion. ExcellenceExcellence.. Energy. Excitement. Service. Energy. Excitement. Service.

Growth. Creativity. Growth. Creativity. Imagination. Vitality. Joy. Imagination. Vitality. Joy.

Surprise. Independence. Spirit. Surprise. Independence. Spirit. Community. Limitless human Community. Limitless human

potential. Diversity. potential. Diversity.

Profit.Profit. Innovation. Design. Innovation. Design. Quality. Entrepreneurialism. Quality. Entrepreneurialism.

Wow!Wow!

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

“BUSINESS IS ABOUT

POWER.” —Joanne —Joanne

Lipman, editor, onLipman, editor, on PortfolioPortfolio

TP: “BUSINESS

IS ABOUT ...”

““enterprisesenterprises that that MatterMatter & & changechange the the gamegame … offer … offer solutionssolutions & & experiencesexperiences that that surprisesurprise , , amazeamaze, and , and transformtransform perceptions of perceptions of what’swhat’s possiblepossible —and —and stickstick likelike super-gluesuper-glue in customers’ in customers’

minds.* such offerings are minds.* such offerings are brilliantlybrilliantly conceived and conceived and flawlesslyflawlessly delivered by delivered by

unconventionalunconventional, , creativecreative, , hyperhyper--committedcommitted, , energeticenergetic talent from within talent from within

& outside the organization.”& outside the organization.” —Tom Peters—Tom Peters

E.g.: E.g.: Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jim’s Group, Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jim’s Group,

The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc.,The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wannamaker’s (circa 1880) Ford (circa 1917), IBM (circa 1970), Wannamaker’s (circa 1880)

“To me business isn’t To me business isn’t about wearing suits or about wearing suits or pleasing stockholders.pleasing stockholders. It’s about being true to It’s about being true to yourself, your ideas and yourself, your ideas and

focusing on the focusing on the essentialsessentials.”.” —Richard Branson

““Make sure your executive team includesMake sure your executive team includes top talent in top talent in desidesiggnn, , enenggineerinineering and g and

manufacturinmanufacturing, because that’sg, because that’s

your your onlyonly! ! priority—priority— to to buildbuild! ! CarsCars!! PeoplePeople! ! WantWant! ! to to

buybuy!!.. Hot styling sells them and quality Hot styling sells them and quality

keeps them sold.” keeps them sold.” — — Lee IacoccaLee Iacocca,, Where Have All the Leaders Gone?Where Have All the Leaders Gone?

July 2007. July 2007. Africa. Africa.

Excellence. Excellence. Always. Always.

Guide AttributesGuide Attributes Camp #2 Camp #1, 3Camp #2 Camp #1, 3

Knowledge Knowledge B+B+ BB Curiosity Curiosity B B B+B+Engagement Engagement DD A-A-Eye contactEye contact D- D- A A “People person” “People person” DD AAPeople reader People reader D- D- B+B+Mental-emotional agility Mental-emotional agility D D B+B+Consultative skills Consultative skills D-D- B+B+

Storyteller Storyteller D- D- C+C+

“Would you“Would you recommend recommend NO NO WithWith to others?”to others?” Way!Way! Pleasure!Pleasure!

Alpha & Omega/Fred Alpha & Omega/Fred

Reichheld:Reichheld: “Would “Would you you

recommend to recommend to others?”others?”

Garth Thompson:Garth Thompson:

Skill 10%, Skill 10%, Attitude 90%Attitude 90%

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

William Donald William Donald

SchaefferSchaeffer

Mayor of Baltimore Mayor of Baltimore

He Cared.He Cared.

>4S>4S

Wilderness Wilderness SafarisSafaris

The Case The Case of the Missing of the Missing Sherry Glass.Sherry Glass.

Disney’s Disney’s Parking Lot Parking Lot

AttendantsAttendants = = Alpha Alpha and and

OmegaOmega

Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned

in you long and distinguished career?” in you long and distinguished career?”

His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtub”bathtub”

““substance” substance” + + attitude attitude ++ ExecutionExecution = = ExcellenceExcellence

<TG<TGWWvs.vs.

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

““Rikyu was watching his son Sho-an as he Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been nothing more to be done. The steps have been washed for the third time, the stone planters washed for the third time, the stone planters and the trees are well sprinkled with water, and the trees are well sprinkled with water, moss and lichens are shining with a fresh moss and lichens are shining with a fresh

verdure; not a twig, not a leaf have I left on the verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden, shook a tree and scattered over the

garden gold and crimson leaves, scraps of the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the not cleanliness alone, but the beautiful and the

natural also.”natural also.” —Kakuzo Oakakura, —Kakuzo Oakakura, The Book of TeaThe Book of Tea

““What Rikyu What Rikyu demanded was demanded was not cleanliness not cleanliness alone, but the alone, but the

beautiful and the beautiful and the natural also.”natural also.” —Kakuzo —Kakuzo

Oakakura, Oakakura, The Book of TeaThe Book of Tea

TP: TP: “How to “How to throw away throw away $500,000 in $500,000 in

one easy one easy lesson!!”lesson!!”

Brand Brand = =

Talent.Talent.

Guiding/ClientsGuiding/Clients

SheShe ……

Chooses.Chooses.Arranges.Arranges.“Manages” attitude.“Manages” attitude.

Go-No go on Go-No go on repeat.repeat.

GuidingGuiding

F:F: “I immediately “I immediately establish rapport establish rapport with the woman.” with the woman.”

M:M: “Interesting “Interesting notion …” notion …”

Bush Lesson #1: Bush Lesson #1: Giants Giants attract the attract the

photographers, photographers, SMESMEss do the work do the work

The “New German The “New German Miracle”* = The Miracle”* = The

“Old German “Old German Miracle” = Miracle” =

Mittlestand**Mittlestand***Among other things, #1 in exports*Among other things, #1 in exports

**”No doubt of it, tom [BASF exec/04.07]**”No doubt of it, tom [BASF exec/04.07]

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

Biodiversity Biodiversity

Lesson #1:Lesson #1: Need Need Giants Giants andand

SMESMEss

Bush Lesson #2: Bush Lesson #2: Even if Even if you can-will “Win,” you can-will “Win,” don’t attack if odds don’t attack if odds of a life-threatening of a life-threatening

injury are highinjury are high

perdue, milliken, jim’s perdue, milliken, jim’s group, basement systems group, basement systems

inc, guardsmark, inc, guardsmark, PPI/Professional Parking PPI/Professional Parking

Services Inc, Semco, Services Inc, Semco, Wegmans, John Laing, Wegmans, John Laing,

Commerce Bank, (Brazilian Commerce Bank, (Brazilian discounter), (Cairo discounter), (Cairo

Contractor), etcContractor), etc

Perdue, Milliken, Jim’s Group, Basement Perdue, Milliken, Jim’s Group, Basement Systems Inc, Guardsmark, PPI/Professional Systems Inc, Guardsmark, PPI/Professional

Parking Services Inc, Semco, Wegmans, John Parking Services Inc, Semco, Wegmans, John Laing, Commerce Bank, (Brazilian discounter), Laing, Commerce Bank, (Brazilian discounter),

(Cairo Contractor), etc:(Cairo Contractor), etc: “Soft “Soft stuff”/ people, stuff”/ people,

action, action, Execution, Execution, ExperienceExperience

Leadership’s Leadership’s

1313thth “P”: “P”: PromotionPromotion

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

pissed offpissed off. . PlayfulPlayful..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PeculiarPeculiar..PotentPotent..

PositivePositive..

Leadership’s Leadership’s

1313thth “P”: “P”: PromotionPromotion

““Intelligent” question: Pretty Intelligent” question: Pretty much know the answer. much know the answer.

“Dumb” question: (1) Dumb “Dumb” question: (1) Dumb (you perceived as fool) or (2) (you perceived as fool) or (2) the source of a true insight/all the source of a true insight/all

knowledge. knowledge.

Axiom: Axiom: No “dumb” No “dumb” questions, no questions, no

progress!progress!

All you needAll you need to know … to know …

You = Your You = Your calendarcalendar***Calendars *Calendars nevernever lielie

““The The oneone thinthing you g you need to know about need to know about sustained individual sustained individual

success: Discover what success: Discover what you don’t like doing you don’t like doing

and and stopstop doing doing it.”it.”

—Marcus Buckingham, The One Thing You Need to Know

Thank Thank

youyou!!!!!!

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

The Manager’s The Manager’s Book of Book of DecenciesDecencies: :

How Small How Small /gestures Build /gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

This is it:This is it:All you needAll you need to know … to know …

R.O.I.RR.O.I.R

Measure #1:Measure #1: R.O.I.R.R.O.I.R.*

**Return On Return On Investment In Investment In RelationshipsRelationships

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —Anon.

Servant LeadershipServant Leadership/Robert Greenleaf/Robert Greenleaf

1. 1. Do those served grow asDo those served grow as persons?persons? 2. 2. Do they, while being served, Do they, while being served,

become healthier wiser, freer, become healthier wiser, freer, more autonomous, more likely more autonomous, more likely themselves to become servants?themselves to become servants?

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first response is always to think response is always to think

about the individual about the individual concerned and how things concerned and how things

can be arranged to help that can be arranged to help that individual experience individual experience success.”success.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

This is it:This is it:All you needAll you need to know … to know …

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

““A typical day at the office for A typical day at the office for me begins by asking,me begins by asking,

‘‘What is What is impossible that I impossible that I am going to do am going to do todaytoday?’”?’” —Daniel Lamarre, —Daniel Lamarre,

president,president, Cirque du SoleilCirque du Soleil

“Forget China, India and the

Internet: Economic Growth Is Driven

by WomenWomen.”

—Headline, Economist, April 15, 2006, Leader, page 14

China’s share of global consumption/2005:

Cement … 47%Cotton … 37%Coal … 30% Steel … 26%

Source: BusinessWeek/08.05

2626m*m*

*60,000/3 yrs

THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS

—Clyde Prestowitz

Let’s Let’s get get onon with the with the

show …show …

Really, really Really, really

AllAll you need you need to know …to know …

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!

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 it. Try it. Try it. Try it. Try it. Try it.

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

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

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

EXCELLEXCELL--

ENCE??ENCE??????

“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 Buy a very large one very large one and just waitand just wait.”.”

—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Forbes100” from 1917 to 1987: 3939 members members

of the Class of ’17 were alive in ’87; 18 in ’87 of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly F100; 18 F100 “survivors” significantly

underunderpperformederformed the market; the market;

just just 22 (2%), (2%), GEGE & & KodakKodak, ,

outoutpperformederformed the market from the market from 1917 to 1987. 1917 to 1987.

S&P 500 from 1957 to 1997: 7474 members of the Class of ’57 were alive

in ’97; 1212 (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

Welcome to the “Club of Shattered Dreams”:

Of Korea’s Top 100Top 100 companies

in 1955, only 77 were still on the list in 2004. The 1997 crisis

“destroyed halfhalf of Korea’s

3030 largest conglomerates.”

Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

C.E.O.C.E.O. to

C.D.O.C.D.O.

Language! Language! Language!Language! Language! Language! Language!Language! Language! Language! Language! Language!

““In-sane-In-sane-ly-great”ly-great”

Radically Thrilling Language!

““Radically Radically Thrilling.”Thrilling.”

—BMW Z4 (ad)

““wow”wow”

EXCELLENCE. EXCELLENCE. CIRCA 1982.CIRCA 1982.

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

The older I The older I get the get the lessless boring the boring the “basics” “basics” become!become!

ExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields $85,000$85,000 EI: $10,000 yields $140,050$140,050

*Forbes/Excellence Index /Basket of 32 publicly traded stocks

Importance of Success Factors by VariousImportance of Success Factors by Various “Gurus”/(Unreliable) Estimates by Tom Peters“Gurus”/(Unreliable) Estimates by Tom Peters

StrategyStrategy SystemsSystems PeoplePeople PassionPassion

Porter Porter 5050%% 2020 20 10 20 10

Drucker 25% Drucker 25% 3535 25 15 25 15

Bennis 25% 20 30 Bennis 25% 20 30 25 25

Peters 15% 20 Peters 15% 20 3535 3030

MP:MP: “Get the strategy “Get the strategy right, the rest will right, the rest will take care of itself.”take care of itself.”

TP:TP: “Get the people and “Get the people and execution right, execution right, the strategy willthe strategy will

take care of itself.” take care of itself.”

EXCELLENCEEXCELLENCE..

1982.1982.Hard is soft.Hard is soft.Soft is hard.Soft is hard.

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships))relationships))

““The 7-S Model”The 7-S Model”

StrategyStrategyStructureStructureSystemsSystems

StyleStyleSkillsSkillsStaffStaff

Super-ordinate goalSuper-ordinate goal


“Hard S“Hard Sss”” (Strategy, Structure, Systems)(Strategy, Structure, Systems)

“Soft S“Soft SSS”” (Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)


StrategyStrategyStructureStructureSystemsSystems

StyleStyle (Corporate “Culture,” “The (Corporate “Culture,” “The way we do things around here”)way we do things around here”)

SkillsSkills (“Distinctive Competence/s) (“Distinctive Competence/s)StaffStaff (People-Talent) (People-Talent)

Super-ordinate goalSuper-ordinate goal (Vision, Core (Vision, Core Values)Values)

EXCELLENCE. EXCELLENCE. TOM. 2005.TOM. 2005.

Successful Businesses’ Dozen Truths: TP’s 30-Year Successful Businesses’ Dozen Truths: TP’s 30-Year PerspectivePerspective

1. Insanely Great & Quirky Talent.1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. We Are Here to Do.4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.” for Those Who Don’t “Get It.”6. Speed Demons.6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of the power of a Good Story12. A Crystal Clear Understanding of the power of a Good Story (Brand Power). (Brand Power).

EXCELLENCE. EXCELLENCE.

THEM.THEM.US.US.

“Them” “Us”

Strategy EXECUTIONEXECUTIONPlanning ActionActionMarketing Selling/SalesSelling/SalesMarkets CustomersCustomersCustomers ClientsClientsMicro-segmentation Big Stuff (Women, Boomers)Big Stuff (Women, Boomers)Cost minimization Revenue maximizationRevenue maximizationSynergy/“Efficiencies” DecentralizationDecentralization“Strategic” supplier Pioneering supplierPioneering supplierProcess ProjectProjectEffectiveness ExcellenceExcellenceMen WomenWomenLeadership Management + LeadershipManagement + LeadershipStandardization Exceptionalism (53 = 53)Exceptionalism (53 = 53)Big clients COOL clientsCOOL clientsPrestigious Board INTERESTING BoardINTERESTING Board

“Them” “Us”Big Mid-sizeMid-sizeGrowth by merger Organic growthOrganic growthBuy market share Create NEW marketsCreate NEW marketsEfficient, streamlined Value-creating “PSF”Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunityAmbiguity-opportunityFearful of losing Aggressive pursuitAggressive pursuit of winning of winningPlan PrototypePrototypeCareful evaluation Another prototypeAnother prototypeRevised plan Another prototypeAnother prototypePeople/Employees TalentTalentEffective HR department Rockin’ Talent Rockin’ Talent Development CenterDevelopment Center of Excellence of ExcellenceBenchmark against the Benchmark against theBenchmark against the “best”-“industry leader” “coolest”“coolest”

“Them” “Us”

Benchmark “Future”mark“Future”markOrderly career progression “Up or Out” (PDQ)“Up or Out” (PDQ)Head HeartHeartIQ EQEQ“Professional” PassionatePassionateStoic, humble leaders Noisy, emotionalNoisy, emotional “characters” in charge “characters” in chargeHire for Resume Hire for intangiblesHire for intangiblesMeasured-thoughtful Relentless, pig-headedRelentless, pig-headed approach determinationdeterminationTeamwork comes first Teamwork and disruptiveTeamwork and disruptive individuals equal individuals equal billingbillingListen to customers Lead customersLead customersCustomer “involvement” Intimate-SeamlessIntimate-Seamless customer inter-twining customer inter-twining

“Them” “Us”MBM (Management MBWAMBWA by memo)MBA MFAMFAShareholder Value Great people-product ruleGreat people-product rule comes first Work smart Work hardWork hardBuilt to last Built to Rock the WorldBuilt to Rock the WorldReward successes Reward (EXCELLENT)Reward (EXCELLENT) failures failuresQuality first! Design 1TDesign 1TQuality first Innovation 1TInnovation 1THigh-quality Jaw-dropping ExperienceJaw-dropping Experience transactionCVs demo consistent CVs feature Magic CVs feature Magic MomentsMoments performanceGood grades Cool stuffCool stuff Operational excellence World-rocking World-rocking INNOVATIONINNOVATION

“Them” “Us”Brand LovemarkLovemarkBest analysis wins Best STORY winsBest STORY wins“Beyond politics” Politics-is-life, thePolitics-is-life, the rest is details rest is detailsOutsource BestsourceBestsource“Motivate” Send on QUESTSSend on QUESTS“Motivate” InviteInviteMeasured language HOT languageHOT languageProduct-Service Gamechanging SOLUTION,Gamechanging SOLUTION, Thrilling EXPERIENCE, Thrilling EXPERIENCE, DREAM come true, DREAM come true, LOVEMARK LOVEMARKPastel Technicolor Technicolor Better DifferentDifferent“Mission success” “Mission EXCELLENCE”“Mission EXCELLENCE”Very good EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

good words.good words.Bad wordsBad words.

Words that may NOT be used in my presence:

“Motivate“Motivate””

“In the end, management doesn’t

change culture. Management

invitesinvites

the workforce itself to change the culture.”

—Lou Gerstner

Words that may NOT be used in my presence:

“Marketing“Marketing””

SellSellSellSellSellSell

all you all you need to need to knowknow

EXCELLENCEEXCELLENCE..

“the rules.”“the rules.”



for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)



for initiative-adventures) for initiative-adventures)

DecencyDecency (respect, grace,(respect, grace,

integrity, humane) integrity, humane)

service service (worthy of our clients’ & (worthy of our clients’ &

extended extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)


SpaceSpace (room for/encouragement for initiative-(room for/encouragement for initiative-

adventures) adventures)

DecencyDecency (respect, grace, integrity, humane)(respect, grace, integrity, humane)

service/experiencservice/experience e (worthy of our clients’ & extended family’s continuing (worthy of our clients’ & extended family’s continuing

custom)custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

service/experienceservice/experienceexcellenceexcellence

servant leadership servant leadership

Hire Great PeopleHire Great People (Resilient, Passionate)(Resilient, Passionate)

Try a Lot of StuffTry a Lot of Stuff (S.A.V./R.F.A.)(S.A.V./R.F.A.)

aCCEPT NO LESS THAN aCCEPT NO LESS THAN EXCELLENCE/PURSUE EXCELLENCE/PURSUE Wow!Wow!

enjoy It While It Lastsenjoy It While It Lasts

pursue a mission that pursue a mission that rocksrocks the world the world (Pharmaceuticals, (Pharmaceuticals, Moldy basements)Moldy basements)

Hire Hire awesomeawesome//weirdweird People for People for 100%100% of jobs of jobs (Resilient, (Resilient, Passionate) (Wegmans) (Women RULE!)Passionate) (Wegmans) (Women RULE!)

give ’em lots of room to give ’em lots of room to experimentexperiment, , failfail, , growgrow

make “make “respectrespect” “” “decencydecency” “” “integrityintegrity” our watchwords” our watchwords

trytry aa LotLot of Stuff, fast of Stuff, fast tempotempo (S.A.V./Screw Around Vigorously, (S.A.V./Screw Around Vigorously, R.F.A./Ready. Fire. Aim.)R.F.A./Ready. Fire. Aim.)

Emphasize Emphasize revenuerevenue (Organic growth, Sales/“Top line” rules)(Organic growth, Sales/“Top line” rules)

have have funfun/exude /exude joyjoy

demand demand excellenceexcellence/Make/Make accountability accountability instinctiveinstinctive (“Insane” standards for our mates’ and community’s sake)(“Insane” standards for our mates’ and community’s sake)

never, never forget the “never, never forget the “itit” ” (It’s the PRODUCT, Stupid.) (25!)(It’s the PRODUCT, Stupid.) (25!)

be “be “of of [‘gaspworthy’] [‘gaspworthy’] serviceservice” ” (Cirque du Soleil is our (Cirque du Soleil is our standard— “even” in finance.) (My customer is my partner.) standard— “even” in finance.) (My customer is my partner.) (Remember “She”; remember “Me.”) (“Servant”/“Host” Leadership)(Remember “She”; remember “Me.”) (“Servant”/“Host” Leadership)

Have effective/imaginative/minimalist Have effective/imaginative/minimalist infrastructureinfrastructure (K.I.S.S./Keep It Simple, Stupid) (Systems/No bull: beauty, grace, elegance) (K.I.S.S./Keep It Simple, Stupid) (Systems/No bull: beauty, grace, elegance)

rere--imagineimagine as “routine” as “routine” ” ”

enjoy It enjoy It WhileWhile ItIt LastsLasts

Sir Richard’s RulesSir Richard’s Rules

Follow your passions.Follow your passions.Keep it simple.Keep it simple.

Get the best people to help Get the best people to help you.you.

Re-create yourself.Re-create yourself.Play.Play.

Source: Source: FortuneFortune/10.03/10.03

X + 6: X + 6: The The

“7E“7Ess””

Exuberance! Exuberance! Energy!Energy!

Empathy!Empathy!Engagement!Engagement!

Empowerment!Empowerment!Execution!Execution!

Excellence!Excellence!

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.UNIVERSAL.UNIVERSAL.

Jim’s Jim’s GroupGroup

EXEXCELLE CELLE ALWALWAYSAYS..

End.End.PART PART ONEONE..

part part twotwo


INNOVATE. INNOVATE. OR. OR. DIE.DIE.

EXCELLENCE. EXCELLENCE. INNOVATION.INNOVATION.

THE THE REALREAL STORY.STORY.

Tom Peters/03.29.2007Tom Peters/03.29.2007

““Hard” Hard” Stuff/Analysis & Stuff/Analysis & planning: planning: 2525%%

“Soft” Stuff/people &“Soft” Stuff/people &Politics & PassionPolitics & Passion & execution: & execution: 7575%%

““A pattern emphasized in the case A pattern emphasized in the case studies in this book is the degree to studies in this book is the degree to

which powerful competitors which powerful competitors not onlnot onlyy resist innovative threats, but resist innovative threats, but actuallactuallyy resist all efforts to resist all efforts to

understand themunderstand them, preferring to , preferring to further their positions in older further their positions in older

products.products. This results in a surge of productivity and performance that

may take the old technology to unheard of heights. But in most cases

this is a sign of impending death.” —Jim Utterback, Mastering the Dynamics of Innovation

““Recently I asked three corporate Recently I asked three corporate executives what decisions they had made executives what decisions they had made in the last year that would not have been in the last year that would not have been

made were it not for their corporate made were it not for their corporate plans. All had difficulty identifying one plans. All had difficulty identifying one such decision. Since all of the plans are such decision. Since all of the plans are

marked ‘secret’ or ‘confidential,’marked ‘secret’ or ‘confidential,’ I asked I asked them how their comthem how their comppetitors mietitors migght ht benefit frombenefit from p possession of their ossession of their

pplans. Each answered with lans. Each answered with embarrassment that their embarrassment that their

comcomppetitors would not benefitetitors would not benefit.”.” —Russell Ackoff (from Henry Mintzberg,

The Rise and Fall of Strategic Planning)

““Most of our predictions are Most of our predictions are based on very linear based on very linear

thinking. That’s why they thinking. That’s why they will most likely be wrong.”will most likely be wrong.”

Vinod Khosla, in “GIGATRENDS,” Vinod Khosla, in “GIGATRENDS,” WiredWired 04.01 04.01

BIG???BIG???EXCELLEEXCELLE

NCE?NCE?

Dick Kovacevich: You You don’t get don’t get better by better by

being being bigger. You bigger. You get worse.”get worse.”

““Despite a decade of Despite a decade of banking mergers, there is banking mergers, there is

no evidenceno evidence that big banks that big banks are any more efficient or are any more efficient or

profitable than their smaller profitable than their smaller rivals.”rivals.” —Financial Times,—Financial Times, 0329, on 0329, on

possible Barclays-ABN Amro merger possible Barclays-ABN Amro merger (“When it (“When it comes to asking the stock market whether comes to asking the stock market whether

bigger banks are better, bigger banks are better, the current answer is the current answer is a a resounding ‘noresounding ‘no.”.” —Citigroup analysis, 2006) —Citigroup analysis, 2006)

“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 I’m sure there are success stories out are success stories out

there, but at this there, but at this moment I draw a moment I draw a

blankblank.”.” —Mark Sirower, The Synergy Trap

DDaimler.aimler. And And DDumb. umb. Both Start Both Start with “with “dd.”.”

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

DaimlerChrysler/’98-’07:DaimlerChrysler/’98-’07: DuhDuh,, Duh Duh,, Duh Duh,, Duh Duh and … and … DuhDuh

ManifoldManifold SynergiesSynergies//NoNo

Severe Severe ScaleScale limits/ limits/YesYes

CultureCulture clashes/ clashes/YesYes

Rushmorean Rushmorean egoego issues/ issues/YesYes

CustomerCustomer acceptance acceptance /No/No

$10,000,000/$10,000,000/DayDay

““Mr Zetsche, head of Mr Zetsche, head of Chrysler from 2000Chrysler from 2000

to 2005, to 2005,

denieddenied

he shouldhe should

take take anyany

responsibility for the U.S. responsibility for the U.S. carmaker’s troubles …”carmaker’s troubles …” ——

Financial TimesFinancial Times /05.29.07 /05.29.07


INNOVATE. INNOVATE. OR. OR. DIE.DIE.

“Acquisitions are about buying market share.

Our challenge is Our challenge is to create to create

marketsmarkets.. There is a big difference.”

—Peter Job, former CEO, Reuters

Characteristics of the “Also rans”*Characteristics of the “Also rans”*

“Minimize risk”“Minimize risk”“Respect the chain of “Respect the chain of

command”command”“Support the boss”“Support the boss”

“Make budget”“Make budget”

**FortuneFortune, article on “Most Admired Global Corporations”, article on “Most Admired Global Corporations”

““Companies have Companies have defined so much defined so much

‘best practice’ ‘best practice’ that they are now that they are now

more or less more or less identical.”identical.”

—Jesper Kunde, —Jesper Kunde, Unique Now ... Or NeverUnique Now ... Or Never

InnoTacsInnoTacs

revenue revenue matters matters most most

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

The Commerce Bank ModelThe Commerce Bank Model

“cost cutting “cost cutting is a death is a death spiral.”spiral.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

The Commerce Bank ModelThe Commerce Bank Model

““overover-invest in -invest in our people, our people, overover--

invest in our invest in our facilities.”facilities.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

We We becomebecome who we hang who we hang

out with 1out with 1

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

Why Do I love Freaks?

(1) Because when Anything Interesting happens … it was (1) Because when Anything Interesting happens … it was a a freakfreak who did it. (Period.) who did it. (Period.) (2) (2) FreaksFreaks are fun. (Freaks are also a pain.) (Freaks are are fun. (Freaks are also a pain.) (Freaks are never boring.) never boring.) (3) We need (3) We need freaksfreaks. Especially in freaky times. (Hint: . Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the These are freaky times, for you & me & the CIA & the Army & Avon.) Army & Avon.) (4) A critical mass of (4) A critical mass of freaks-in-our-midstfreaks-in-our-midst automatically make us-who-are-not-so-freaky at least automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) times—see immediately above.) (5)(5) FreaksFreaks are the only (ONLY) ones who succeed—as are the only (ONLY) ones who succeed—as in, make it into the history books. in, make it into the history books. (6) (6) FreaksFreaks keep us from falling into ruts. (If we listen to keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)organizations are in ruts. Make that chasms.)

““Normal” Normal”

= = “o “o forfor 800”800”

“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

Find ’em!Find ’em!

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for things that things that

went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

““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

Demos!Demos! Heroes! Heroes! Stories!Stories!

Find ’em!Find ’em!

Innovation Innovation “Tool”/“Source” # 1:“Tool”/“Source” # 1:

Pissed Off Pissed Off Person/ Person/ PeoplePeople

F(Anger/Passion)F(Anger/Passion) >>>> >>>> f(Pushback f(Pushback from Threatened from Threatened

Fat-cats & Fat-cats & Bureau-crats)Bureau-crats)

send ’em on send ’em on

a quest!a quest!

Leaders-Teachers Do Leaders-Teachers Do NotNot “Transform People”! “Transform People”!

Instead leaders-mentors-teachers (1) Instead leaders-mentors-teachers (1) provide a contextprovide a context which is marked by (2)which is marked by (2) access to a luxuriant portfolio access to a luxuriant portfolio of meaningful opportunitiesof meaningful opportunities (projects)(projects) which (3) which (3) allow allow

people to fullypeople to fully (and safely, mostly—caveat: “they” don’t (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”)engage unless they’re “mad about something”) express their express their

innate curiosityinnate curiosity and (4) and (4) engage in a vigorous engage in a vigorous discovery voyagediscovery voyage (alone and in small teams, assisted by an (alone and in small teams, assisted by an

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

leaders)leaders) had never dreamed existedhad never dreamed existed —and then the —and then the leaders-mentors-teachers (6)leaders-mentors-teachers (6) applaud like hell, stage applaud like hell, stage “photo-ops,” and ring the church bells 100 times “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ to commemorate the bravery of their “followers’

” explorations!” explorations!

““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

Women as Women as innovation innovation

force!force!

““Women Women areare thethe

majority majority market”market”

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

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

Women: Women: Principal Principal Change Change Agents/ Agents/

Health, family Health, family & Finance& Finance

Concoct a Concoct a Parallel Parallel

universe!universe!

““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

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

Speed/ Speed/ Tempo/Tempo/

is-itis-it

“the FedFedExEx EconomyEconomy”

—headline/New York Times

“Any3”: Anything/ Anything/ Anywhere/ Anywhere/ AnytimeAnytime

Power Tools Power Tools For Power For Power StrategiesStrategies

Go for the Go for the BoldBold

* * BoldBold/Aggressive/$$$$/Aggressive/$$$$* * BoldBold/GameChanger /GameChanger * * BoldBold/Creative Destruction/Creative Destruction* * BoldBold/“Cool” Supplier Portfolio/“Cool” Supplier Portfolio* * BoldBold/Web Fanaticism/Web Fanaticism

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 it. Try it. Try it. Try it. Try it. Try it.

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!

do do things.things.

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

drill.drill.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

try try things.things.

““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

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

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

Screw. Screw. things.things.

Up.Up.

““Fail faster. Fail faster. Succeed Succeed Sooner.”Sooner.”

David Kelley/IDEO

““If people tell me If people tell me they skied all day they skied all day

and never fell and never fell down, I tell them down, I tell them to try a different to try a different

mountain.”mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

““In business, you In business, you rewardreward people for taking people for taking risksrisks. .

When it When it doesn’tdoesn’t workwork outout you pyou promoteromote them-because them-because they were willing to try new they were willing to try new

things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try

a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

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

try.try.Miss.Miss.try.try.

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

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

Life 101: A 40-year ReflectionLife 101: A 40-year Reflection

Go on offense. Go on offense. Give everybody a shot. Give everybody a shot.

Decentralize. Decentralize. Try a bunch of stuff.Try a bunch of stuff.

Make it up as you go along. Make it up as you go along. Get some stuff wrong.Get some stuff wrong.

Laugh a lot.Laugh a lot.Get some stuff right. Get some stuff right. Become a “success.”Become a “success.”

Extract “lessons learned” or “best practices.”Extract “lessons learned” or “best practices.”Thicken the Book of Rules for Success.Thicken the Book of Rules for Success.

Become evermore serious.Become evermore serious.Enforce the rules to increasingly tight tolerances.Enforce the rules to increasingly tight tolerances.

Go on defense. Go on defense. Install walls. Install walls.

Protect-at-all-costs today’s franchise. Protect-at-all-costs today’s franchise. Centralize. Centralize.

Calcify. Calcify. Install taller walls.Install taller walls.Write more rules.Write more rules.

Become irrelevant and-or die.Become irrelevant and-or die.

No try. No try. No deal.No deal.


100100%%



Excellence1982: The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

Innovation:Innovation:

GetGet madmad.. Start Start

DoingDoing

somethingsomething

about it. about it. NowNow..

Focus.Focus.

““We will We will notnot, I , I repeat repeat notnot, ,

pretend to be pretend to be ‘all things to all ‘all things to all people.’”people.’” —CEO, Investec (03.06)

#1/Quality #1/Quality = More = More

proceduresprocedures [Main Line Lankenau][Main Line Lankenau]

Source: “In Health Care, Cost Isn’t Proof of High Quality,” Source: “In Health Care, Cost Isn’t Proof of High Quality,” NYTNYT, 0614.07 (PA data, 60 hospitals, bypass surgery), 0614.07 (PA data, 60 hospitals, bypass surgery)

Conscious Conscious measurementmeasurement

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?

personalpersonal

Step #1: Buy a Buy a Mirror!Mirror!

““How can a high-level How can a high-level leader like _____ be so out leader like _____ be so out

of touch with the truth of touch with the truth about himself? It’s more about himself? It’s more common than you would common than you would

imagine. In fact, the imagine. In fact, the higher up the ladder a higher up the ladder a leader climbs, the less leader climbs, the less

accurate his self-accurate his self-assessment is likely to assessment is likely to be. be. The The pproblem is an roblem is an acute lack of feedbackacute lack of feedback [especially on people [especially on people

issues].”issues].” —Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

““CHANGE CHANGE

MANAGEMENT.”MANAGEMENT.”

Tom’s “Change Rules”Tom’s “Change Rules”

Cause. (pissed off.)Cause. (pissed off.)

Try it. (S.A.V.)Try it. (S.A.V.)Fail. Forward. Fast.Fail. Forward. Fast.

Quests. Demos. Heroes. Stories.Quests. Demos. Heroes. Stories. Boonies. (Parallel universe.) Boonies. (Parallel universe.)

<12.<12.Just Say No: Normal.Just Say No: Normal.

Attitude>Ability.Attitude>Ability.Wow. “Insanely great.”Wow. “Insanely great.”

Sell! Sell! Sell!Sell! Sell! Sell!Master politics!Master politics!

Tom’s “Change Rules”Tom’s “Change Rules”

Cause. (ANGRY!.)Cause. (ANGRY!.)RELENTLESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!RELENTLESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Try itTry it. . (S.A.V.) (r.f.a.) (hustle.)(S.A.V.) (r.f.a.) (hustle.)project. Project. Project.project. Project. Project.

POLITICS!POLITICS! (“Soft stuff”) (“Soft stuff”)Wow! (hot language.)Wow! (hot language.)fun. (growth opportunities.)fun. (growth opportunities.)Sky-high aspirations.Sky-high aspirations.

Fail. Forward. Fast.Fail. Forward. Fast.“SMALL WINS.” MOMENTUM. INEVITABILITY.“SMALL WINS.” MOMENTUM. INEVITABILITY.Quests. Demos. Heroes. Stories. Quests. Demos. Heroes. Stories. STATISTICAL INDEPENDENCE. (DIVERSITY.)STATISTICAL INDEPENDENCE. (DIVERSITY.) Boonies. (Parallel universe. Test stuff. Buy WeeCo) Boonies. (Parallel universe. Test stuff. Buy WeeCo)V.C.: Roster = portfolio. everything = portfolio.V.C.: Roster = portfolio. everything = portfolio.Roster = brand yous.Roster = brand yous.PARTNER WITH WIERDOS. (everywhere.)PARTNER WITH WIERDOS. (everywhere.)Diversity @ top.Diversity @ top.Buy a mirror.Buy a mirror.FRUSTRATED “GODFATHER.”FRUSTRATED “GODFATHER.”<12.<12.ALREADY IN PLACE/find ’em.ALREADY IN PLACE/find ’em. JUST Say No: NORMAL. JUST Say No: NORMAL.wikiWorld.wikiWorld.Attitude > Ability.Attitude > Ability.Wow. “Insanely great.”Wow. “Insanely great.”

Sell! Sell! Sell!Sell! Sell! Sell! (master-appreciate politics) (r.o.i.r.)(master-appreciate politics) (r.o.i.r.)


100100%%




4/40.4/40.

4/404/40(Decentralization/Execution/Accountability/6:15A.M.)(Decentralization/Execution/Accountability/6:15A.M.)

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

66:15A.M. :15A.M.

De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!

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.”

No problems = No problems = No progress.No progress.

[Period.][Period.]

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in

your heart, or not.”

—Brian Joffe/BIDvest

Decentralization Decentralization vs Centralization vs Centralization

= “That’s = “That’s AllAll There Is”There Is” (from (from

childrearing 101 to the childrearing 101 to the Federalist PapersFederalist Papers to Org.2007)to Org.2007)

Ex-e-Ex-e-cu-cu-

tion!tion!

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)

(2)(2) sum of sum of Milestones =Milestones = project project

(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

CF: CF: 30%30% (no (no

salesfolk)salesfolk)

MH: MH: 80%80% (salesfolk)(salesfolk)

6:15A.M6:15A.M..

““But it’s But it’s only only

2am!”2am!”

““Where are you going? … But it’s Where are you going? … But it’s only 2am. … You see, you can live only 2am. … You see, you can live your life at 120 miles an hour, and your life at 120 miles an hour, and

that’s pretty impressive. But it’s not that’s pretty impressive. But it’s not good enough. Unless you live atgood enough. Unless you live at 150 miles an hour, the world will 150 miles an hour, the world will

pass you by,” pass you by,” HRH Prince Alwaleed* HRH Prince Alwaleed*

*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc

Source: “Prince Alwaleed, Inside the private world of the Middle East’sSource: “Prince Alwaleed, Inside the private world of the Middle East’s most powerful investor” cover story, most powerful investor” cover story, The BusinessThe Business, 0519.07, 0519.07

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

2a.m.2a.m.

Excellence: The SE22Excellence: The SE22::

ORIGINS OF ORIGINS OF SUSTAINABLE SUSTAINABLE

ENTREPRENEURSHIENTREPRENEURSHIPP

SE22/Origins of Sustainable Entrepreneurship1. Genetically disposed to Innovations that upset apple carts 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, (3M, Apple,

FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT)Fox, Stanford University, MIT)

2. Perpetually determined to outdo oneself, even to 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)(Apple, Cirque du Soleil, Nokia, FedEx)

3. Treat History as the Enemy 3. Treat History as the Enemy (GE)(GE)

4. Love the Great Leap/Enjoy the Hunt 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)(Apple, Oracle, Intel, Nokia, Sony)

5. Use “Strategic Thrust Overlays” to Attack Monster Problems 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, (Sysco, GSK, GE, Microsoft)GSK, GE, Microsoft)

6. Establish a “Be on the COOL Team” Ethos. 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)(Most PSFs, Microsoft)

7. Encourage Vigorous Dissent/Genetically “Noisy” 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, (Intel, Apple, Microsoft, CitiGroup, PepsiCo)Microsoft, CitiGroup, PepsiCo)

8. 8. ““Culturally” as well as Culturally” as well as organizationally Decentralizedorganizationally Decentralized

(GE, J&J, Omnicom)(GE, J&J, Omnicom)

9. Multi-entrepreneurship/Many Independent-minded Stars 9. Multi-entrepreneurship/Many Independent-minded Stars (GE,(GE, PepsiCo)PepsiCo)

SE22/Origins of Sustainable Entrepreneurship

10. Keep decentralizing—tireless in pursuit of wiping 10. Keep decentralizing—tireless in pursuit of wiping outout Centralizing Tendencies Centralizing Tendencies (J&J, Virgin)(J&J, Virgin)

11. Scour the world for Ingenious Alliance Partners— 11. Scour the world for Ingenious Alliance Partners— especially exciting start-ups especially exciting start-ups (Pfizer)(Pfizer)

12. Acquire for Innovation, not Market Share 12. Acquire for Innovation, not Market Share (Cisco, GE)(Cisco, GE)

13. Don’t overdo “pursuit of synergy” 13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner)(GE, J&J, Time Warner)

14. Execution/Action Bias: Just do it … don’t obsess on14. Execution/Action Bias: Just do it … don’t obsess on how it “fits the business model.”how it “fits the business model.” (3M, J & J) (3M, J & J)

15. Find and Encourage and Promote Strong-willed/15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people Hyper-smart/Independent people (GE, PepsiCo, Microsoft)(GE, PepsiCo, Microsoft)

16. Support Internal Entrepreneurs16. Support Internal Entrepreneurs (3M, Microsoft) (3M, Microsoft)

17. Ferret out Talent anywhere/“No limits” approach to17. Ferret out Talent anywhere/“No limits” approach to retaining top talent retaining top talent (Virgin, GE, PepsiCo(Virgin, GE, PepsiCo))

SE22/Origins of Sustainable Entrepreneurship

18. Unmistakable Results & Accountability focus from18. Unmistakable Results & Accountability focus from the get-go to the grave the get-go to the grave (GE, New York Yankees, PepsiCo)(GE, New York Yankees, PepsiCo)

19. 19. Up or OutUp or Out (GE, McKinsey, big consultancies and law (GE, McKinsey, big consultancies and law

firms and ad agencies and movie studios in general)firms and ad agencies and movie studios in general)

20. Competitive to a fault! 20. Competitive to a fault! (GE, New York Yankees, News(GE, New York Yankees, News Corp/Fox, PepsiCo)Corp/Fox, PepsiCo)

21. “Bi-polar” Top Team, with “Unglued” Innovator #1,21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 powerful Control Freak #2 (Oracle, Virgin) (Watch out when(Oracle, Virgin) (Watch out when #2 is missing: Enron)#2 is missing: Enron)

22. Masters of Loose-Tight/Hard-nosed about a very few22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything elseCore Values, Open-minded about everything else (Virgin)(Virgin)

EXEXCELLE CELLE ALWALWAYSAYS..

End.End.PART PART TWOTWO..

tom peters with kpmg

Technology

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excellence parttwoof

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