celebrating you!
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Welcome to Tom Peters “PowerPoint World”!Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides Beyond the set of slides here, you will find at here, you will find at tompeters.comtompeters.com the last eight years of the last eight years of presentations, a basketful of “Special Presentations,” and, above all, presentations, a basketful of “Special Presentations,” and, above all, Tom’s Tom’s constantly updatedconstantly updated Master PresentationMaster Presentation—from which most of the —from which most of the slides in this presentation are drawn. There are about 3,500 slides in slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: the main argument: Part IPart I is context. is context. Part IIPart II is devoted entirely to innovation—the sine qua is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. presentation—now it is front and center and a stand-alone. Part IIIPart III is a is a variation on the innovation theme—but it is organized to examine the variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience EconomyExperience Economy) lays out a specific logic for necessarily leaving ) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. commodity-like goods and services in the dust. Part IVPart IV argues that in argues that in this age of “micro-marketing” there are two this age of “micro-marketing” there are two macromacro-markets of -markets of astounding size that are dramatically under-attended by all but a few; astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. namely women and boomers-geezers. Part VPart V underpins the overall underpins the overall argument with the necessary bedrock—Talent, with brief consideration argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. of Education & Healthcare. Part VI Part VI examines Leadership for turbulent examines Leadership for turbulent times from several angles.times from several angles. Part VII Part VII is a collection of a dozen Lists— is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.”way.”
Enjoy! Download! “Steal”—that’s the whole point!Enjoy! Download! “Steal”—that’s the whole point!
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NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure
that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:
“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”
andand “Verdana”“Verdana”
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Celebrating Celebrating you!you!
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Over-rated:Over-rated:
Big companies
! “Cool”
industries!Famous CEOs!
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Over-rated:Over-rated:
Big companie
s! “Cool”
industries!Famous CEOs!
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Dick Kovacevich: You don’t You don’t get better by get better by being bigger. being bigger.
You get You get worse.”worse.”
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“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
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#1 Exporter?#1 Exporter?
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#4 Japan#4 Japan
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#4 Japan#4 Japan#2T China#2T China#2T USA#2T USA
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#4 Japan#4 Japan#2T china#2T china#2t USA#2t USA
#1 #1 GermanyGermany
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Reason!!!Reason!!!
MittelstandMittelstand
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Over-rated:Over-rated:
Big companies!
“Cool” industries!
Famous CEOs!
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Jim’s Jim’s GroupGroup
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Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer Services
Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School
Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
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etc.etc.
PRSX/Paragon PRSX/Paragon Railcar Railcar
Salvage*Salvage**Salvaged railcars into bridges, etc.*Salvaged railcars into bridges, etc.
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**Lived in same town all adult lifeLived in same town all adult life*First generation wealthy/no parental*First generation wealthy/no parental support support*“Don’t look like millionaires, don’t dress*“Don’t look like millionaires, don’t dress like millionaires, don’t eat like like millionaires, don’t eat like millionaires, don’t act like millionaires” millionaires, don’t act like millionaires”*“Many of the types of businesses [they]*“Many of the types of businesses [they] are in could be classified as ‘dull- are in could be classified as ‘dull- normal.’ normal.’ [They] are welding contractors, [They] are welding contractors, auctioneers, scrap-metal dealers, auctioneers, scrap-metal dealers, portable toilets, dry cleaners, re-builders of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” diesel engines, paving contractors …”
Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko
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Over-rated:Over-rated:
Big companies! “Cool”
industries!
Famous CEOs!
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Mission impossible?Mission impossible?
$36B/’98$36B/’98
minus minus $675M/‘$675M/‘
0707
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Market capitalization lost per day, 1998-
2007: $10,000,00
0/Day
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Over-rated:Over-rated:
Big companies
! “Cool”
industries!Famous CEOs!
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What’s “Left”?What’s “Left”?
SMESMEss!! “Real” “Real”
industries!industries!Excellent CEOs!Excellent CEOs!
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Tom Peters’ X25*Tom Peters’ X25*
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
Mind Consulting/BolognaMind Consulting/Bologna09 November 200709 November 2007
**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007
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All you needAll you need to know … to know …
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2255
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“… “… a blinding a blinding flash of the flash of the
obvious”obvious” —Manny Garcia—Manny Garcia
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All you needAll you need to know … to know …
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“A man without A man without a smiling face a smiling face
must not open a must not open a shop.”shop.” —Chinese Proverb
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This is it:This is it:All you needAll you need to know … to know …
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TP: TP: “How to flush
$500,000 down
the toilet in one easy
lesson!!”
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< CAPEX< CAPEX> People!> People!
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This is it:This is it:All you needAll you need to know … to know …
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R.O.I.RR.O.I.R..
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RReturn eturn OOn n
IInvestment In nvestment In
RRelationshipselationships
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““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in
other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to
get other people get other people interested in you.”interested in you.” —Dale
Carnegie
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““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
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““Happy Happy Birthday!”Birthday!”
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““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”
William JamesWilliam James
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THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE
PROBLEM.PROBLEM. THE THE RESPONSE TO THE RESPONSE TO THE
PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE
REAL PROBLEMREAL PROBLEM.
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Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A
THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED
SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A
COMPLETE RUPTURE.COMPLETE RUPTURE.
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The only thing The only thing you needyou need
to know … to know …
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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 your long and distinguished career?” in your 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 bathtubbathtub””
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Hands On!Hands On!People!People!
Relationships!Relationships!“Sweat the small “Sweat the small
stuff!”stuff!”
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Tom Peters’ X25*Tom Peters’ X25*
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
Mind Consulting/BolognaMind Consulting/Bologna09 November 200709 November 2007
**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007
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1982.1982.
(NOVEMBER)(NOVEMBER)
A BOOK.A BOOK.
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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”
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““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
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EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.
2006.2006.
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Why in Why in the the World did World did youyou go to go to SiberiaSiberia??
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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
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2007.2007.
SEPTEMBER.SEPTEMBER.SYDNEY.SYDNEY.DRUCKER DRUCKER TRIBUTE.TRIBUTE.
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““I have always I have always believed that the believed that the
purpose of the purpose of the corporation is to be a corporation is to be a
blessing to the blessing to the employees.”employees.” * * —Boyd Clarke—Boyd Clarke
*TP: An “organization” is, in fact and after all*TP: An “organization” is, in fact and after all is said and done, a/the “house” in which is said and done, a/the “house” in which
most of us “live” most of the time. most of us “live” most of the time.
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Organizations exist to serve. Period.Organizations exist to serve. Period.Leaders live to serve. Period.Leaders live to serve. Period.
Passionate servant leaders, determined to create a Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domainlegacy of earthshaking transformation in their domain create/must create/must necessarilynecessarily create organizations which create organizations which
are …are … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome
power of the Imagination and power of the Imagination and Spirit and native Spirit and native
Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is
unleashedunleashed … … In passionate pursuit of jointly In passionate pursuit of jointly perceived soaring purposeperceived soaring purpose and personal and and personal and
community and client service Excellence. community and client service Excellence.
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““We are a We are a ‘Life ‘Life
Success’ Success’ Company.”Company.”
Dave Liniger, founder, RE/MAX
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EXCELLENCEEXCELLENCE..
“the rules.”“the rules.”
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CauseCause (worthy of commitment)(worthy of commitment)
SpaceSpace (room for/encouragement(room for/encouragement
for initiative) for initiative)
DecencyDecency (respect, (respect,
humane)humane)
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““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to
the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a
college president. college president. He was He was seriously interested in seriously interested in
who you were and what who you were and what you had to sayyou had to say.”.”
Sara Lawrence-Lightfoot, Respect
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CauseCause (worthy of commitment)(worthy of commitment)
SpaceSpace (room for/encouragement(room for/encouragement
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)
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CauseCause (worthy of commitment)(worthy of commitment)
SpaceSpace (room for/encouragement for initiative-(room for/encouragement for initiative-
adventures) adventures)
DecencyDecency (respect, grace, integrity, humane)(respect, grace, integrity, humane)
service service (worthy of our clients’ & extended (worthy of our clients’ & extended
family’s continuing custom) family’s continuing custom)
excellenceexcellence (period) (period)
servant servant leadership leadership
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CauseCause
SpaceSpace
DecencyDecency
serviceserviceexcellenceexcellence
servant leadership servant leadership
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EXCELLENCEEXCELLENCE..
“one idea.” “one idea.”1966-2007.1966-2007.
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What makes What makes God laugh?God laugh?
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PeoplePeople makingmaking plans!plans!
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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.
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drill.drill.
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“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
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try try things.things.
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““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
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Culture of PrototypingCulture of Prototyping
“Effective prototyping may “Effective prototyping may
be be thethe most most valuablevaluable core core competencecompetence an an
innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage
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faIL. faIL. FAST.FAST.
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““Fail .Fail . Forward. Forward.
Fast.”Fast.”High Tech CEO, Pennsylvania
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“Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ...
Death is the mother of structure. ... It took four
billion years of death ... to invent the human mind ...” —
The Cobra Event
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““RewardReward excellent failures.
PunishPunish mediocre
successes.”Phil Daniels, Sydney exec
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try.try.Miss.Miss.try.try.
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READY.READY.FIRE!FIRE!AIM.AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
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No try. No try. No deal.No deal.
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““You miss You miss
100100%%
of the shots of the shots you never you never
take.”take.” —Wayne—Wayne GretzkyGretzky
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EXCELLENCE. EXCELLENCE. INNOVATION. INNOVATION.
JOB ONE.JOB ONE.ALWAYS.ALWAYS.
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INNOVATE. INNOVATE.
OR.OR.
DIE.DIE.
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InnoTacsInnoTacs
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revenue revenue matters matters most most
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The Commerce Bank ModelThe Commerce Bank Model
“Cost “Cost cutting cutting
is a is a deathdeath
spiralspiral.”.”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
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““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)
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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
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We We becomebecome who we who we
spend time spend time with with
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The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)
relationship-partnership relationship-partnership decision (employee, decision (employee,
vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision
about: about:
“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”
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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
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We We becomebecome who we who we
spend time spend time with iiwith ii
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WikiWorld:WikiWorld: “The “The Billion-man Research Billion-man Research
Team: Companies Team: Companies offering work to online offering work to online
communities are communities are reaping the benefits of reaping the benefits of
‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07
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Educate for Educate for creativitycreativity
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““Human Human creativity is creativity is the ultimate the ultimate
economic economic resource.”resource.” —Richard Florida,—Richard Florida,
The Rise of the Creative ClassThe Rise of the Creative Class
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““Every child is Every child is born an artist. born an artist. The trick is to The trick is to
remain an artistremain an artist.”.” —Picasso—Picasso
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Foster Foster independenceindependence
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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
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Race up & up Race up & up & Up the & Up the
“value-added “value-added ladder”: ladder”:
“solutions”“solutions”
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$55$55BB
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The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING
Customer Success/ Customer Success/ Gamechanging Gamechanging
SolutionsSolutionsServicesGoods
Raw Materials
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Race up & up Race up & up & Up the & Up the
“value-added “value-added ladder”: ladder”:
“Experiences”“Experiences”
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““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
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“The [Starbucks] Fix” Is on …
“We have “We have identified a identified a
‘third place.’‘third place.’ And
I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District
Manager
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Experience: “Rebel Lifestyle!”
“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in
black leather, ride black leather, ride through small towns and through small towns and
have people be afraidhave people be afraid of him.” of him.”
HarleyHarley exec, quoted in Results-Based Leadership
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The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION
Spellbinding Spellbinding ExperiencesExperiences
Gamechanging SolutionsServicesGoods
Raw Materials
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<TG<TGWWvs.vs.
>TG>TGRR[Things Gone [Things Gone WRONGWRONG/Things Gone /Things Gone RIGHTRIGHT]]
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Singapore-Singapore-CandyCandy
(Operational Excellence+)(Operational Excellence+)
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3-cent 3-cent lemon!lemon!
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Disney’s Disney’s Parking Lot Parking Lot
AttendantsAttendants = = Alpha Alpha and and
OmegaOmega
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winning winning through through “design” “design”
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“Design is
treated like treated like a religiona religion at
BMW.” —Fortune
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Race up & up & Race up & up & Up the “value-Up the “value-added ladder”: added ladder”: “dreams come “dreams come
true”true”
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““The sun is setting on the Information Society—even The sun is setting on the Information Society—even before we have fully adjusted to its demands as before we have fully adjusted to its demands as
individuals and as companies. We have lived as hunters individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we and as farmers, we have worked in factories and now we
live in an information-based society whose icon is the live in an information-based society whose icon is the
computer. computer. We stand facinWe stand facingg the fifth kind of societthe fifth kind of society: y: the Dream Societthe Dream Society.y. … Future … Future
products will have to appeal to our hearts, not to our products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to heads. Now is the time to add emotional value to
products and services.”products and services.”
Rolf Jensen/ Rolf Jensen/The Dream Society:How the Coming Shift from The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your BusinessInformation to Imagination Will Transform Your Business
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Furniture vs. Dreams
“We do not sell ‘furniture’ at
Domain. We sell We sell dreamsdreams. This is
accomplished by addressing the half-formed needs in our
customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.” — Judy George,
Domain Home Fashions
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Dreams Come TrueDreams Come True Spellbinding Spellbinding ExperiencesExperiences
Gamechanging Gamechanging SolutionsSolutions
ServicesServicesGoodsGoods
Raw MaterialsRaw Materials
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<TG<TGWWvs.vs.
>TG>TGRR[Things Gone [Things Gone WRONGWRONG/Things Gone /Things Gone RIGHTRIGHT]]
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imagination imagination unbound!unbound!
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Single Single greatest act greatest act
of pure of pure imaginationimagination
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24%24%
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dubaidubai
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Women as Women as innovation innovation
force!force!
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““Forget Forget ChinaChina, , IndiaIndia and the and the
InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven
by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
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Pursuing Pursuing humongous humongous
“new” “new” marketsmarkets
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““Women Women areare thethe
majority majority market”market”
—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse
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?????????
Home Furnishings … 94%Home Furnishings … 94%Vacations … 92% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%Houses … 91%D.I.Y. D.I.Y. (major “home projects”) … 80% … 80%
Consumer Electronics … 51% Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)Cars … 68% (90%)AllAll consumerconsumer purchasespurchases … … 83%83%
Bank Account … 89%Bank Account … 89%Household investment decisions … 67%Household investment decisions … 67%Small business loans/biz starts … 70%Small business loans/biz starts … 70%
Health Care … 80%Health Care … 80%
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Repeat:Repeat: “Goldman Sachs in Tokyo “Goldman Sachs in Tokyo has developed an index of 115 has developed an index of 115 companies poised to benefit companies poised to benefit
from women’s increased from women’s increased purchasing power; purchasing power; over the past over the past
decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by
96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise
of 13%of 13%.”.” —Economist, April 15
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““The The most most significant variablesignificant variable
inin everyevery sales situation is sales situation is
thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how
the salesperson the salesperson communicates to the communicates to the
buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women
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Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model
Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model
Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter
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The Perfect Answer
Jill and Jack buy slacks in black…
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Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;
not via kids)
Home DepotHome Depot (“Do it [everything!] Herself”)
P&GP&G (more than “house cleaner”)
DeBeersDeBeers (“right-hand rings”/$4B)
AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)
NikeNike (> jock endorsements; new def sports; majority consumer)
AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)
Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse
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“We simply had
stopped being
relevant to women.”
—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the
Woman Inside the Mom”)
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“Mostly Moms”
““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—
generally considered the generally considered the industry’s most frequent industry’s most frequent
users and therefore its most users and therefore its most important consumers—or they important consumers—or they were cast in the role of moms were cast in the role of moms who were simply conduits to who were simply conduits to
their children.”their children.” —Fara Warner, The Power of
the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”
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““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of
‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important
children’s market to one in which children’s market to one in which women are the company’s women are the company’s
majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and
promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”
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10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE
WomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.
So what exactly is the point of So what exactly is the point of menmen??
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“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all
levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The
phenomenon will only grow as girls prove to be more successful than boys in the school
system. For a number of observers, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as
thought out and practiced by a thought out and practiced by a womanwoman.”.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006
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““new” markets iinew” markets ii
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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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
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7/17/133
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We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, , the the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, ,
the most (yes) the most (yes) ambitiouambitious, the most s, the most experimental & exploratoryexperimental & exploratory, the most , the most
differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,
(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most
profoundly important commercial market in profoundly important commercial market in the history of the world—and we will be the the history of the world—and we will be the Center of your universe for the next Center of your universe for the next twenty-twenty-
fivefive yearsyears. We have arrived!. We have arrived!
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““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 and motivations and
needs are so poorneeds are so poorlyly understoodunderstood.”.”
——Peter Francese, founding publisher, American Demographics
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Conscious Conscious measurementmeasurement
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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 “Wow”“Wow”//“Rock the “Rock the
World”World” Scale?
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EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.
10Ps.10Ps.
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to
be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll
fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)
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Leader Job OneLeader Job One
Paint Paint Portraits of Portraits of
ExcellenceExcellence!!
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PURPOSEPURPOSE..
PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”
—Samuel Taylor Coleridge
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BZBZ:: “I am a … “I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”
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PURPOSEPURPOSE..PASSIONPASSION..
PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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““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
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..
PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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2255
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..
PersonalPersonal..PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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““You must You must bebe the change you the change you
wish to see in the wish to see in the world.”world.”
Gandhi
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““Being aware of Being aware of yourself and how you yourself and how you
affect everyone affect everyone around you is what around you is what
distinguishes a distinguishes a superior leader.”superior leader.”
—Edie Seashore (—Edie Seashore (Strategy + BusinessStrategy + Business #45) #45)
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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““Success seems to Success seems to be largely a be largely a
mattermatter
of of hanginghanging onon after others after others have let go.”have let go.” —William —William
Feather, authorFeather, author
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..
PRIORITIESPRIORITIES. . PEOPLE.PEOPLE.potentpotent..
PositivePositive..
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““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.
ThreeThree..
Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”
— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade
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““Dennis, you need a … Dennis, you need a …
‘To-don’t ’‘To-don’t ’
List !”List !”
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE iPEOPLE i. . PotentPotent..
PositivePositive..
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““Leaders Leaders
‘‘dodo’’ people. people.
Period.”Period.” —Anon.
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““The leaders of Great The leaders of Great
Groups Groups lovelove talent talent and know where to find and know where to find
it. They it. They revel revel in the in the talent of others.”talent of others.”
—Warren Bennis & Patricia Ward Biederman, Organizing Genius
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““Leaders Leaders
‘‘SERVESERVE’’ people. people.
Period.”Period.” —inspired by Robert Greenleaf
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE iiPEOPLE ii. . PotentPotent..
PositivePositive..
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““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots hotshots
for for gguuyys we thous we thougght were better ht were better ppeoeopplele, and watched our guys do a lot better , and watched our guys do a lot better
than the big names, not just in the classroom, but on than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our Again and again, the blue chips faded out, and our
little up-and-comers clawed their way to all-little up-and-comers clawed their way to all-
conference and All-America teams.”conference and All-America teams.” —Bo —Bo Schembechler (and John Bacon), “Recruit for Schembechler (and John Bacon), “Recruit for
Character,” Character,” Bo’s Lasting LessonsBo’s Lasting Lessons
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE iiiPEOPLE iii. . PotentPotent..
PositivePositive..
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53 = 53 = 5353
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““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—
consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two
groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group
almost always did better. … almost always did better. …
DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How
the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE ivPEOPLE iv. . PotentPotent..
PositivePositive..
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““AS AS LEADERS, LEADERS, WOMEN WOMEN
RULERULE:: New Studies find
that female managers outshine their male counterparts in almost every measure”
TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek
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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
14 14 toto 168168**
*Leadership Positions/D&T/1992-2002/*Leadership Positions/D&T/1992-2002/WIAR WIAR (Women’s Initiative Annual Report)(Women’s Initiative Annual Report)
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Period??!!*Period??!!*
Start:Start: 3 0f 14 3 0f 14
18 months later:18 months later: 10 of 10 of 1818
*AIM/September 2007*AIM/September 2007
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE vPEOPLE v. . PotentPotent..
PositivePositive..
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PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.
NOBLEST NOBLEST MISSION.MISSION.
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE viPEOPLE vi. . PotentPotent..
PositivePositive..
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2 2 per Year/per Year/ 20 20 per Decade per Decade == Excellence Excellence
+ Legacy+ Legacy
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLE viiPEOPLE vii. . PotentPotent..
PositivePositive..
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Brand Brand = =
Talent.Talent.
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. .
PotentPotent..PositivePositive..
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““You do not merely want to You do not merely want to
be the best of the best.be the best of the best. You want to be You want to be considered the considered the
only ones who do only ones who do what you dowhat you do.” .” —Jerry
Garcia
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Kevin 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!!
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PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..
PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
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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.
Michelangelo