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

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andand “Verdana”“Verdana”

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Gothic,”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.19 October 200719 October 2007

THE MASTER PRESENTATION:THE MASTER PRESENTATION: There are about There are about 3,500 3,500 slides in this 7-part “Master slides in this 7-part “Master Presentation.” The first six “chapters” are indeed meant add up to a logical, linear Presentation.” The first six “chapters” are indeed meant add up to a logical, linear argument. argument. Part IPart I is context. is context. Part IIPart II is devoted entirely to innovation—the sine qua non, is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. center and a stand-alone. Part IIIPart III is a variation on the innovation theme—but it is is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed world) of an organized to examine the imperative (for most everyone in the developed world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s lifted with gratitude from Joe Pine and Jim Gilmore’s Experience EconomyExperience Economy) lays out a ) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. specific logic for necessarily leaving commodity-like goods and services in the dust. Part Part IVIV argues that in this age of “micro-marketing” there are two argues that in 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; namely women astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. and boomers-geezers. Part VPart V underpins the overall argument with the necessary underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. bedrock—Talent, with brief consideration of Education & Healthcare. Part VIPart VI examines examines Leadership for turbulent times from several angles.Leadership for turbulent times from several angles.

Despite the “logical argument,” I think you’d be better off if you thought of “all this” as Despite the “logical argument,” I think you’d be better off if you thought of “all this” as I do—an I do—an ENCYCLOPEDIA OF IDEASENCYCLOPEDIA OF IDEAS. Various “riffs” are attached throughout which, though . Various “riffs” are attached throughout which, though not perfect fits, serve not perfect fits, serve mymy purpose as “meat” from which I cobble together a finance purpose as “meat” from which I cobble together a finance presentation in Bahrain … or a health-services lecture in Virginia. For example, the day I presentation in Bahrain … or a health-services lecture in Virginia. For example, the day I wrote this I spoke to an association made up of independent middle-size companies. I wrote this I spoke to an association made up of independent middle-size companies. I led off with a new section on the place for and power of middle-sized firms in general, led off with a new section on the place for and power of middle-sized firms in general, featuring the German Mittelstand—which is the basis for that country’s surprise ranking featuring the German Mittelstand—which is the basis for that country’s surprise ranking as the world’s #1 exporter. These agile players, residing in the ultimate high-wage as the world’s #1 exporter. These agile players, residing in the ultimate high-wage nation, tend to “own” a niche courtesy astoundingly high-value-added products. This nation, tend to “own” a niche courtesy astoundingly high-value-added products. This “Mittelstand opener” does not fit in the Master in a tidy fashion, but I want it to be “Mittelstand opener” does not fit in the Master in a tidy fashion, but I want it to be available for future use and it works pretty well in the overall innovation argument—available for future use and it works pretty well in the overall innovation argument—hence its landing in Part II. The placement is not bad, but the point is that this “idea” is hence its landing in Part II. The placement is not bad, but the point is that this “idea” is now available to me—now available to me—and youand you—in my “encyclopedia.”—in my “encyclopedia.”

And there you have it!And there you have it!

19 October 200719 October 2007

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Master*Master*ExcellenceExcellence

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

Or.Or.Die.Die.



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 ((raw materials-manufactured goods-services-raw materials-manufactured goods-services-

solutions-experiences-dreams-lovemarks)solutions-experiences-dreams-lovemarks)



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

part part FOURFOUR (of 7) (of 7)

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




part part FIVEFIVE (of 7) (of 7)

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

Education.)Education.)




part part sixsix (of 7) (of 7)

leadership!leadership!



Master*Master*ExcellenceExcellence

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

Lists.Lists.

Slides at …

tompeters.comtompeters.com

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!

““We all agree your We all agree your theory is crazy. The theory is crazy. The

question, which divides question, which divides us, is whether it is crazy us, is whether it is crazy

enough.”enough.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli

part part oneone

NOTE: NOTE: In what followsIn what follows you will find a variety you will find a variety

of “openings.” I mix and of “openings.” I mix and match from this section match from this section

depending on the depending on the demographics, industry demographics, industry and nationality of the and nationality of the

target audience.target audience.

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

MASTER/Part MASTER/Part ONEONE

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

Story Story Lines.Lines.

Our Story LineOur Story Line

Not your father’s worldNot your father’s worldBig = Pitiful.Big = Pitiful.

Excellence. Always./“only-onesExcellence. Always./“only-ones-who-do-what-we-do.”-who-do-what-we-do.”

(what else?)(what else?)

Innovate. Or. Innovate. Or. DieDie..Up. Up. Up. Up. Up, Up, Up. Up. Up. Up. Up, Up,

Up the “Value Added Chain.”Up the “Value Added Chain.”(Raw materials. Goods. Services. Implemented-gamechanging (Raw materials. Goods. Services. Implemented-gamechanging

Solutions. Scintillating experiences. Dreams come true. Solutions. Scintillating experiences. Dreams come true. Lovemarks.)Lovemarks.)

Stupendous-underserved “New” MarketsStupendous-underserved “New” Markets (Women, Boomers & geezers)(Women, Boomers & geezers)

Talent = Brand. /You = Brand You. /Talent = Brand. /You = Brand You. /educate-for-creativityeducate-for-creativity

Leading with passion & relentlessnessLeading with passion & relentlessness (“21(“21stst Century Leadership. Ha.) Century Leadership. Ha.)

The StoryThe Story

Not your father’s worldNot your father’s worldBig = Pitiful.Big = Pitiful.

Excellence. Always. (what else?)Excellence. Always. (what else?)Innovate. Or. Innovate. Or. Die.Die.

Up, Up, Up the “Value Added Up, Up, Up the “Value Added Chain.”Chain.”

“New” Markets (Women, “New” Markets (Women, Boomers)Boomers)

Talent = Brand.Talent = Brand.Leading with passionLeading with passion

*Context/5/42/500/900.*Context/5/42/500/900.

**Weeks of Whoops!Weeks of Whoops!

**Built to Flop: Pitiful Built to Flop: Pitiful Performance!Performance!**InnovateInnovate. Or. . Or. die. die.

*Value-added Ladder/*Value-added Ladder/raw materials to “lovemarks.” raw materials to “lovemarks.”

*BEDROCK: “MODEL PSF.*BEDROCK: “MODEL PSF.*“New” Markets/*“New” Markets/

women. Boomers-geezers.women. Boomers-geezers.* “aside”: “Eternal” Basics.* “aside”: “Eternal” Basics.

*Talent. BRAND YOU. Education.*Talent. BRAND YOU. Education.*VIRAL Leadership.*VIRAL Leadership.

Re-imagine! Speech: Re-imagine! Speech: Story Line in 100 Words or LessStory Line in 100 Words or Less

1. Wildly altered context (technology, China-India, global 1. Wildly altered context (technology, China-India, global terrorism, etc)terrorism, etc)

2.2. Only answer: adaptive skills and bold-breathtaking innovationOnly answer: adaptive skills and bold-breathtaking innovation (top-line focus rather than cost-cutting focus)(top-line focus rather than cost-cutting focus)3. Race way, way up the value-added curve (implemented “game-3. Race way, way up the value-added curve (implemented “game-

altering solutions” rather than “services,” “experiences” rather altering solutions” rather than “services,” “experiences” rather than “transactions,” and much more)than “transactions,” and much more)

4. As part of value-added exercise, pursue Ripe & Enormous 4. As part of value-added exercise, pursue Ripe & Enormous “new” markets—Women, Boomers & Geezers“new” markets—Women, Boomers & Geezers

5. Radical (!!!) use of IS-IT5. Radical (!!!) use of IS-IT6.6. A “Roster” of Weird & Wondrous & Entrepreneurial “Talent” A “Roster” of Weird & Wondrous & Entrepreneurial “Talent”

engagedengaged in “Wow Projects”in “Wow Projects”7.7. ““Metabolic Leadership” (Passionate-Radical Leaders who instill Metabolic Leadership” (Passionate-Radical Leaders who instill

a Discipline of Execution, a Quick Tempo-Adaptive Culture anda Discipline of Execution, a Quick Tempo-Adaptive Culture and an appetite to “Eat Radical Change for Breakfast”)an appetite to “Eat Radical Change for Breakfast”)

(96 words by my count)(96 words by my count)

Bias/es:Bias/es: Trained by “Mess-ists”—Trained by “Mess-ists”— those with a non-linear view those with a non-linear view of the world. Hobbies are of the world. Hobbies are history & statistics.* history & statistics.* Professional life, center of, Professional life, center of, Silicon ValleySilicon Valley, 1970-2000., 1970-2000.

Axiom2007:Axiom2007: The older I get, the The older I get, the less boring the “basics” less boring the “basics” become. become.**Favorite book, Nassim Nicholas TalebFavorite book, Nassim Nicholas Taleb—Fooled By Randomness—Fooled By Randomness

Palo Alto/30Palo Alto/30California/35California/35

*Entrepreneurial magnet*Entrepreneurial magnet*Talent in general*Talent in general*Critical mass*Critical mass*VCs (all levels)*VCs (all levels)*Immigrants-Diversity*Immigrants-Diversity*Research Universities*Research Universities*Climate-Way of life*Climate-Way of life*Attitude! *Attitude! (Everything is possible!)(Everything is possible!)

*IBM? Who cares?*IBM? Who cares?*Etc*Etc

BedrockBedrock..

““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

Flash …Flash …

Flash …Flash … The The Rich Get Rich Get RicherRicher

#1/10#1/1000

“Best Companies to Work for”/2005

WegmansWegmans

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be corporation is to be

a blessing to the a blessing to the employees.”employees.” —Boyd Clarke —Boyd Clarke

TP: TP: “How to piss away $500,000

in one easy

lesson!!”

““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.”

Headline, Wall Street Journal,

3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed”

Sentence #1: “The Wal*Mart Era, the retailer’s time of overwhelming business and social influence in America, is drawing to a close.”

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

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

2006.2006.

Why in Why in the 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), Wanamaker’s (circa 1880) Ford (circa 1917), IBM (circa 1970), Wanamaker’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?

““It suddenly It suddenly occurred to me that occurred to me that in the space of two in the space of two or three hours he or three hours he

nevernever talke4d about talke4d about cars.” cars.” —Les Wexner—Les Wexner

Game plan: Game plan: TheThe

unvarnished unvarnished BasicsBasics

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.)

Enjoy It While It Enjoy It While It LastsLasts

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!

"Because we are such poor implementors does not mean"Because we are such poor implementors does not mean laws of success [underpinning “built to last”] do not exist.”laws of success [underpinning “built to last”] do not exist.”

——Comment at tompeters.com (0625.07)Comment at tompeters.com (0625.07)

Bingo. nothing amuses me more than, Bingo. nothing amuses me more than, "It's "It's justjust

an implementation problem.”*an implementation problem.”* Good God, Good God, that's the that's the wholewhole damndamn reasonreason we wrote we wrote In Search of ExcellenceIn Search of Excellence 25 years ago! 25 years ago!

MMccKinsey invented "perfect" strategies—It Kinsey invented "perfect" strategies—It was just that our clients were was just that our clients were tootoo stupidstupid to to implementimplement!!!!!! It reminds me of the great ad It reminds me of the great ad man David Ogilvy, "If it doesn't sell it was a man David Ogilvy, "If it doesn't sell it was a

bad aD—regardless of the prizes it won.” bad aD—regardless of the prizes it won.” Implementation is the all-important "last Implementation is the all-important "last 9999%" per me. Companies—e.g. GM—could %" per me. Companies—e.g. GM—could

indeed last forever, save for “lousy indeed last forever, save for “lousy implementation.”implementation.”****

*The close kin, an old joke, “This would work fine if it weren’t for the damn people.”*The close kin, an old joke, “This would work fine if it weren’t for the damn people.”**FYI, I apparently wrote, at Stanford, the first doctoral dissertation**FYI, I apparently wrote, at Stanford, the first doctoral dissertation on … implementation. Needless to say, “all this” is near & dear to on … implementation. Needless to say, “all this” is near & dear to

my heart—and has been for almost 40 years.my heart—and has been for almost 40 years.

The “Big Three” “Justa”sThe “Big Three” “Justa”s

“The strategy is right. It’s “The strategy is right. It’s justjust a a communicationscommunications problem.” problem.”

“The plan is dead on—it’s “The plan is dead on—it’s just just anan imimpplementationlementation problem.” problem.”

“Look, we’ve got the strategy “Look, we’ve got the strategy right—we right—we justjust need to fix need to fix

the p the peoeopplele bit.” bit.”

Excellence! Always! Excellence! Always!

Soft is hard. Soft is hard. Hard is soft.Hard is soft. (People, customers “hard,” #s “soft”) (People, customers “hard,” #s “soft”)2525 (“Blinding flash of the obvious”)(“Blinding flash of the obvious”)

Wow!Wow! (Passion! Enthusiasm! Hot language! “Insanely great”—Steve Jobs) (Passion! Enthusiasm! Hot language! “Insanely great”—Steve Jobs)Wow EVERYWHEREWow EVERYWHERE (Jim’s Group, Basement Systems Inc) (Jim’s Group, Basement Systems Inc)

Innovate. Innovate. Or die.Or die.Top line obsession!!!Top line obsession!!! (C (CRRO/Chief O/Chief RevenueRevenue Officer; Sales>Marketing; “cost cutting = death spiral”—VH) Officer; Sales>Marketing; “cost cutting = death spiral”—VH)

Innovation = MessInnovation = Mess (“What makes God laugh?” “People making plans.”)(“What makes God laugh?” “People making plans.”)1/1001/100 (Big over-rated/Mega-mergers destroy value/“Built to last” chimera (Big over-rated/Mega-mergers destroy value/“Built to last” chimera

““Built to last” v “Built to rock the world” Built to last” v “Built to rock the world” (TP’s love affair with Netscape)(TP’s love affair with Netscape) “Last word” = There is no last word! “Last word” = There is no last word!

0/8000/800 (We are who we hang out with/Weird for weird times) (We are who we hang out with/Weird for weird times)Lead the customer!Lead the customer!

Whacky Wild WikiWorld!Whacky Wild WikiWorld! (Electronic planetary scrum.)(Electronic planetary scrum.)Try stuff!!!!!!!!!Try stuff!!!!!!!!! (R.F.A., S.A.V.) (Ready. Fire. Aim. Screw Around Vigorously.)(R.F.A., S.A.V.) (Ready. Fire. Aim. Screw Around Vigorously.)

Fail. Forward. Fast.Fail. Forward. Fast. (“Reward excellent failures. Punish mediocre successes.) (“Reward excellent failures. Punish mediocre successes.)Try MORE stuff!!!Try MORE stuff!!! (“You miss 100% of the shots you don’t take.”)(“You miss 100% of the shots you don’t take.”)

Parallel UniverseParallel Universe (Jill Ker Conway, Starbucks’ 1%, Intel V.C. fund, China!)(Jill Ker Conway, Starbucks’ 1%, Intel V.C. fund, China!)4/404/40 (4 “learnings” in 40 years: Decentralization, Execution, Accountability, 6:15AM) (4 “learnings” in 40 years: Decentralization, Execution, Accountability, 6:15AM)

Lord NelsonLord Nelson (“Other admirals more afraid of losing …”)(“Other admirals more afraid of losing …”)

Up, Up, Up the VA LadderUp, Up, Up the VA Ladder (Solutions/PSF, Experience; Dreamketing; Lovemark) (Solutions/PSF, Experience; Dreamketing; Lovemark)Women rule!Women rule! (Buy (Buy all all ! Control ! Control allall wealth! Better leaders!) wealth! Better leaders!)

$15,000,000,000,000/7 of 13$15,000,000,000,000/7 of 13 (Boomers. Geezers. Wealth. Half of life still to go) (Boomers. Geezers. Wealth. Half of life still to go)

Brand YouBrand You (Or else!) (Or else!)PSF!!!PSF!!! (All) (All)

Talent = BrandTalent = Brand (“Leaders do people,” “connoisseur of talent,” Send ’em on bold Quests,(“Leaders do people,” “connoisseur of talent,” Send ’em on bold Quests, HR rules! <CapEx$$, >PeopleX$$$ ) (Think: HR rules! <CapEx$$, >PeopleX$$$ ) (Think: WegmansWegmans))

195,000195,000 (Healthcare: Quality-Safety/EMR/DSS, Prevention-Wellness, Public Health #1!) (Healthcare: Quality-Safety/EMR/DSS, Prevention-Wellness, Public Health #1!)“Teach to test” = Evil!“Teach to test” = Evil! ( (The Creative Age is a The Creative Age is a widewide--openopen g gameame.”.” —Richard Florida)

Leadership/12PsLeadership/12Ps (Purpose. Passion. Potential. Presence. Personal. Pissed off. (Purpose. Passion. Potential. Presence. Personal. Pissed off.Playful. Persistence. People. Peculiar. Potent. Positive.)Playful. Persistence. People. Peculiar. Potent. Positive.)

“Do one thing every day that scares you.”“Do one thing every day that scares you.” (Eleanor Roosevelt) (Eleanor Roosevelt)Basics!Basics! (Decency. Flowers. (Decency. Flowers. Grace.Grace. Respect. Servant. Host. Etc.) Respect. Servant. Host. Etc.)

This I Believe: This I Believe: Tom’s Super-TIB25Tom’s Super-TIB25

1. 1. TECHTECHNINICOLCOLOOR R TimesTimes..2. 2. Passion! Enthusiasm! Energy!Passion! Enthusiasm! Energy!3. 3. Action/R.F.A./O.O.D.A. Speed.Action/R.F.A./O.O.D.A. Speed.4. Screw-ups. 4. Screw-ups. BIG SCREW-Ups!BIG SCREW-Ups!5. 5. Mess! Improv!Mess! Improv!6. 6. Revolution! Re-imagine!Revolution! Re-imagine!7. 7. INNOVATE OR DIE! INNOVATE OR DIE! 8.8. Decentralize!Decentralize!9.9. Bulk is BULL! (Mergers don’t work. FOCUS Does!)Bulk is BULL! (Mergers don’t work. FOCUS Does!)1010 “Different” > “Better” “Different” > “Better”11. eALL/Power Tools for Power Strategies!11. eALL/Power Tools for Power Strategies!12. 12. Forgetting/Destruction.Forgetting/Destruction.13. 13. Hot Language Matters!Hot Language Matters!14. 14. WOW!/WOW Projects.WOW!/WOW Projects.15. 15. VA Bedrock: The “PSF.” (Professional Service Firm.)VA Bedrock: The “PSF.” (Professional Service Firm.)16. 16. Daring.Daring.17. 17. Talent Time! Leaders “Do” People!Talent Time! Leaders “Do” People!18. 18. Talent+/Diversity.Talent+/Diversity.19. 19. Talent++/Women Rule!Talent++/Women Rule!20. 20. “Brand You” Universe.“Brand You” Universe.21. 21. Design!Design!22. 22. Gasp-worthy Experiences/Lovemarks.Gasp-worthy Experiences/Lovemarks.23. 23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness.New Market Demographics/Women/Boomers & Geezers/Green/Wellness.24.24. Grace.Grace.25.25. EXCELLENCEEXCELLENCE!!

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

All you needAll you need to know … to know …

The magic number The magic number 25.25.

Mbwa.Mbwa.Calendars never lie.Calendars never lie.

Excellence.Excellence.Always.Always.

Tom Peters/0709.07Tom Peters/0709.07

Though his empire is enormous, and Though his empire is enormous, and his executive team strong, Starbucks his executive team strong, Starbucks

founder Howard Schultz still … founder Howard Schultz still …

religiously …religiously … visitsvisits at at least least 2525 S’bucks S’bucks

shops … per shops … per weekweek!! “Regardless of our size,” he told me, “Regardless of our size,” he told me, “we still sell it one-cup-at-a-time, one “we still sell it one-cup-at-a-time, one

customer-at-a-time, one server-at-customer-at-a-time, one server-at-a-time. I need to see it and touch it a-time. I need to see it and touch it

and feel it.”and feel it.”

MBWAMBWA**5,000 miles for a 5-minute face-to

-face meeting (courtesy super-agent Mark McCormick)

When Bob Waterman and I wrote When Bob Waterman and I wrote In Search of In Search of ExcellenceExcellence in 1982, business was “by the in 1982, business was “by the

numbers”—and the Americans were struggling (to numbers”—and the Americans were struggling (to put it mildly) with hands on, tactile stuff, like put it mildly) with hands on, tactile stuff, like

Japanese quality. Then, at Hewlett Packard, we were Japanese quality. Then, at Hewlett Packard, we were introduced to the famed “HP Way,” the centerpiece introduced to the famed “HP Way,” the centerpiece of which was in-touch management. HP had a term of which was in-touch management. HP had a term

for this … MBWA. for this … MBWA. (Managing By (Managing By Wandering Around.)Wandering Around.) Bob Bob

and I fell in immediate love. Not only was the idea and I fell in immediate love. Not only was the idea per se important and cool, but it symbolized per se important and cool, but it symbolized

everything we were coming to cherish—enterprises everything we were coming to cherish—enterprises where bosses-leaders were in immediate touch with where bosses-leaders were in immediate touch with

and emotionally attached to workers, customers,and emotionally attached to workers, customers, the product. The idea is as important or more the product. The idea is as important or more important in fast-paced 2007 as it was in 1982.important in fast-paced 2007 as it was in 1982.

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

All we have is our time. The All we have is our time. The

way we spend our time way we spend our time isis

our priorities, our priorities, isis our our “strategy.”“strategy.” Your calendar Your calendar knows what you really knows what you really care about. Do you?care about. Do you?

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

““20-20-minute minute

rule”rule” —Craig Johnson/30 yrs

Craig Johnson, a famed Venture Craig Johnson, a famed Venture Capitalist for three decades … Capitalist for three decades …

refuses to invest in refuses to invest in companies that are more companies that are more than a 20-minute drive than a 20-minute drive

from his office.from his office. To guide them To guide them through the serpentine path ahead, he through the serpentine path ahead, he

insists that he must be in constant insists that he must be in constant touch as banker, advisor, friend. touch as banker, advisor, friend.

>70>70*

*Hank Paulson, China visits, Fortune 1127.06

China is clearly our most important China is clearly our most important economic partner. Our dialog with economic partner. Our dialog with

China was not what it might have been China was not what it might have been when Hank Paulson took over as when Hank Paulson took over as

Secretary of the Treasury. Immediate Secretary of the Treasury. Immediate improvement occurred for numerous improvement occurred for numerous

reasons, not least of which were reasons, not least of which were

Paulson’s Paulson’s SEVENTY TRIPSSEVENTY TRIPS to to China while at Goldman Sachs. China while at Goldman Sachs.

““I called 60 CEOs in the I called 60 CEOs in the first week of the year] to first week of the year] to

wish them happy New wish them happy New Year. …”Year. …” —Hank Paulson, former CEO,—Hank Paulson, former CEO,

Goldman Sachs Goldman Sachs

Source: Fortune, “Secrets of Greatness,” 0320.05

MBWA, Grameen Style!MBWA, Grameen Style!“Conventional banks ask their clients to come “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor to their office. It’s a terrifying place for the poor and illiterate. … and illiterate. … The entire Grameen Bank The entire Grameen Bank

system runs on the principle that people system runs on the principle that people should not come to the bank, the bank should not come to the bank, the bank

should go to the people.should go to the people. … If any staff … If any staff member is seen in the office, it should be taken member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. as a violation of the rules of the Grameen Bank.

… It is essential that [those setting up a new … It is essential that [those setting up a new village Branch] have no office and no place to village Branch] have no office and no place to stay. The reason is to make us as different as stay. The reason is to make us as different as

possible from government officialspossible from government officials.” .” Source: Source: Muhammad Yunus, Banker to the Poor

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

“… “… a blinding a blinding flash of the flash of the

obvious”obvious” —Manny Garcia—Manny Garcia

“All this” [this little riff] is indeed, as seminar participant and leading Burger King franchisee Many Garcia once said to me,

“obvious.”* But observation over four decades** suggests that amidst the hubbub and travails of a typical day’s work, the so-

called obvious is often-usually left unattended. For perfectly good reasons, another week passes without a visit to our equivalent of

the Starbucks shops or HP R&D labs, without the equivalent to Hank Paulsen’s “How ya doin’?” call to a key customer. My [Tom

Peters] Job One in life? Remind busy folks of the obvious!

*Manny Garcia/1983: “Tom, I hope you won’t be insulted when I say this was the best seminar I’ve ever been to—and it was

a blinding flash of the obvious.”

**I had two commanding officers during my two Vietnam tours in U.S. Naval Mobile Construction Battalion NINE. One was a Shultz look-alike—instinctively in the field. The other was an in the office “leader.” The one produced. The other didn’t. At age 24 I learned an incredible life lesson, though I couldn’t describe it well until

tripping over HP’s MBWA/Managing By Wandering Around.

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

The “Primitives”:The “Primitives”: CarlosCarlos [Slim][Slim] n’ n’ WarrenWarren [Buffett][Buffett]

““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

All you needAll you need

to know to know … … exceptexcept for … for …

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 bathtub”bathtub”

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

Thank Thank

youyou!!!!!!

Thank Thank youyou

AnnAnn!!!!!!

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

The … Jim Jim Jeffords Jeffords oversighoversigh

t!t!

““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

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE

CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF

THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A THAT RESULTED IN A COMPLETE RUPTURE.COMPLETE RUPTURE.

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.” —Philo of —Philo of

AlexandriaAlexandria

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

W. Donald W. Donald

SchaeferSchaefer

1921-Forever1921-Forever

He CaredHe Cared

William Donald William Donald

SchaeferSchaefer

Mayor of Baltimore Mayor of Baltimore

He Cared.He Cared.

The Manager’s Book of The Manager’s Book of Decencies: How Small gestures Decencies: How Small gestures Build Great Companies.Build Great Companies. —Steve Harrison, Adecco

Servant LeadershipServant Leadership —Robert Greenleaf

One: The Art and Practice of One: The Art and Practice of Conscious LeadershipConscious Leadership —Lance Secretan, founder of Manpower, Inc. (“What would happen if we (“What would happen if we

looked at a customer and saw the face of God in them?”)looked at a customer and saw the face of God in them?”)

““What would happen if we looked at a What would happen if we looked at a customer and saw the face of God in customer and saw the face of God in

them? To most people it sounds like a them? To most people it sounds like a lofty idea. But if you see the face of lofty idea. But if you see the face of

God in a flower, why wouldn’t you see God in a flower, why wouldn’t you see it in the face of a customer? If we it in the face of a customer? If we

treated customers and honored the treated customers and honored the God within them—if we loved them—God within them—if we loved them—

we would not need a ‘quality we would not need a ‘quality program.’”program.’” —Lance Secretan, founder of Manpower, Inc., and most

recently author of One: The Art and Practice of Conscious Leadership

Respect.Respect.Decency.Decency.

Wee Wee Gestures.Gestures.

Success …

Consult Consult everyoneeveryone on on everythingeverything

“Thank you” “Thank you” note note carpetcarpet

bombingbombingSource: Roger Rosenblatt, Source: Roger Rosenblatt, Rules for AgingRules for Aging

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

Return On Return On Investment In Investment In RelationshipsRelationships

network.network.Breadth.Breadth.Depth.Depth.

Recruitment strategy.Recruitment strategy.

Maintenance scheme.Maintenance scheme.

C(I) > C(I) > C(E)C(E)

Master the Master the intricacies of the intricacies of the systemsystem —Tom DeLay (Al Smith, LBJ)—Tom DeLay (Al Smith, LBJ)

““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

““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?

TP:TP: People are People are always ready to always ready to tell their story!tell their story!

See also: “The story leaner’s edge” (Steve See also: “The story leaner’s edge” (Steve Farber)Farber)

“The dream manager” (Matthew Kelly) “The dream manager” (Matthew Kelly)

““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)

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

TP: TP: “How to piss “How to piss away $500,000 away $500,000

in one easy in one easy lesson!!”lesson!!”

Success …

Consult Consult everyoneeveryone on on everythingeverything

“Thank you” “Thank you” note note carpetcarpet

bombingbombingSource: Roger Rosenblatt, Source: Roger Rosenblatt, Rules for AgingRules for Aging

Fred Reichheld’sFred Reichheld’s The Ultimate The Ultimate QuestionQuestion : : Customer satisfaction is Customer satisfaction is

best measured* by one simple best measured* by one simple

question,question, “how likely “how likely are you to are you to

recommend ______ recommend ______ to a friend?” to a friend?”

* “Net Promoter Score”

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE REAL PROBLEMREAL PROBLEM.* **

*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

NOTE: NOTE: you will discover you will discover that the prior slide that the prior slide

appears time and time appears time and time again in this again in this presentation.presentation.

““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!

““I’m not comfortable I’m not comfortable unless I’m unless I’m

uncomfortable.”uncomfortable.”—Jay Chiat

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a

way out.” “No Cloning.” way out.” “No Cloning.” “‘Reinvent the brand’ with “‘Reinvent the brand’ with each new show.” “A typical each new show.” “A typical

day at the office for me day at the office for me begins by asking, ‘begins by asking, ‘What is What is impossible that I am going impossible that I am going to do today?’”to do today?’” —Daniel Lamarre, —Daniel Lamarre,

president,president, Cirque du SoleilCirque du Soleil

““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

“There are people who There are people who prefer to say ‘Yes,’ and prefer to say ‘Yes,’ and there are people who there are people who

prefer to say ‘No.’ Those prefer to say ‘No.’ Those who say ‘Yes’ are rewarded who say ‘Yes’ are rewarded

by the adventures they by the adventures they have,have,

and those who say ‘No’ and those who say ‘No’ are rewarded by the safety are rewarded by the safety they attainthey attain.”.” — —Improv Wisdom: Don’t Improv Wisdom: Don’t Prepare, Just Show UpPrepare, Just Show Up, Patricia Ryan Madson (“ … , Patricia Ryan Madson (“ … yes I said yes I will Yes.”—James Joyce, yes I said yes I will Yes.”—James Joyce, UlyssesUlysses))

1 Person!1 Person!Wendy Kopp, Princeton senior (1989)Wendy Kopp, Princeton senior (1989)

Teach America (19,000-2,400)Teach America (19,000-2,400)10% Dartmouth, Yale10% Dartmouth, Yale

17,000 to date17,000 to datePrincipal hirer of college graduatesPrincipal hirer of college graduates

“One of the few jobs that people pass up “One of the few jobs that people pass up Goldman Sachs for is Teach America” (Edie Goldman Sachs for is Teach America” (Edie

Hunt, HR)Hunt, HR)

Source: Fortune, 1127.06

Bonus … Bonus …

P P [Residual][Residual] = .00= .0004*04*

*4/10,000 [.02 X .02]*4/10,000 [.02 X .02]

1982 1982 (-)(-) = = 200 200

Years Years (+)(+)

Bonus … Bonus …

New Economy?!

Sergey + Sergey + Larry Larry > >

Harvard/Harvard/370370

Truly, truly Truly, truly All you needAll you need to know … to know …

“Forget China, India and the

Internet: Economic Growth Is Driven

by WomenWomen.”

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

Truly Truly All you needAll you need to know … to know …

80,000,0080,000,000*0*

* N America, W Europe, Japan (800,000,000)* N America, W Europe, Japan (800,000,000)

New Zealand 2007New Zealand 2007

Ho hum: 2+ weeks in New Zealand …Ho hum: 2+ weeks in New Zealand …

PfizerPfizerFordFordGapGap

ChryslerChryslerYahooYahoo

microsoftmicrosoftwal*martwal*mart

????????????


word.”word.”

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


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

Depot … Depot … Microsoft … GEMicrosoft … GE

““We may not be We may not be interested in interested in

chaos but chaos chaos but chaos is interested in is interested in

us.”us.” —Robert Cooper, —Robert Cooper, The Breaking of Nations: The Breaking of Nations:

Order and Chaos in the Twenty-first CenturyOrder and Chaos in the Twenty-first Century

The The lastlast word: word: There There

isis a “last a “last word.”word.”

““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’s your g, because that’s your

onlyonly!! priority— priority— to to

buildbuild! ! CarsCars!! PeoplePeople! ! WantWant! ! to to buybuy!! Hot styling sells them Hot styling sells them

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

Radio City Music HallSeptember 2005

Franchise Lost!

TP: “How many of you [600] really

cravecrave a new Chevy?”

My (Les’s) Dinner with Henri

JUSWHATIZZITUMAKE?JUSWHATIZZITUMAKE?

My (Les’s) Dinner with Henri

JUST WHAT IS ITJUST WHAT IS IT YOU YOU MAKEMAKE????????????

“Not long ago, I heard one studio chief utter the

unthinkable: ‘What would ‘What would happen if I made a movie happen if I made a movie I actually looked forward I actually looked forward to seeing?’to seeing?’ ”” —Peter Bart, Editor in Chief,

Variety; former Paramount exec, “Hollywood’s Model Doesn’t Produce Art, or Much Profit” (NYT/0721.06)

Did one of ’em ever turn to the other and say: “Wow, “Wow,

I wonder what I wonder what unimaginable new unimaginable new

tools, tools, otherwise not otherwise not ppossibleossible, will be , will be

brought forth brought forth for mfor myy daudaugghter Alice, ahter Alice, agge e

1717, because, because of this deal?” of this deal?”

Did one of ’em ever turn to the other and say: “Wow I “Wow I

wonder what wonder what unimaginable new unimaginable new

tools, tools, otherwise not otherwise not ppossibleossible, will be , will be

quickly brought forth quickly brought forth for our customersfor our customers

because of because of this deal?”this deal?”

Single Single greatest act greatest act

of pure of pure imaginationimagination

24%24%

dubaidubai

““DubaiDubai the next the next hot location for hot location for

HollywoodHollywood””

—headline, —headline, EmiratesTodayEmiratesToday, 0527.07, 0527.07 (spurred by (spurred by SyrianaSyriana))

“ … “ … joint venture joint venture ……world’s largestworld’s largest shopping zone shopping zone

…”…” ——Khaleej TimesKhaleej Times, , Dubai/UAEDubai/UAE, 0527.07, 0527.07

““Barney’sBarney’s New New York York SoldSold to to Dubai Dubai

Government for Government for $825 Million”$825 Million”Source: Headline, Source: Headline, New York TimesNew York Times, 0623.2007, 0623.2007

““Copper Thieves Cause Havoc forCopper Thieves Cause Havoc for

Commuters” Commuters” ——The GuardianThe Guardian (London) 28.05.07 (London) 28.05.07

“10 Billion Dollars: “10 Billion Dollars: Contributing to the Contributing to the

Development of Development of Knowledge andKnowledge and

Culture” Culture” —Mohammed Bin Rashid Al Maktoum —Mohammed Bin Rashid Al Maktoum

Foundation (Foundation (FTFT, 29.05.07), 29.05.07)

*Last week: Saudis buy GE Plastics for $13B; China gov’t *Last week: Saudis buy GE Plastics for $13B; China gov’t investment firm buys 10% of Blackstone Groupinvestment firm buys 10% of Blackstone Group

NOT NOT YOUR YOUR

FATHER’FATHER’S S

WORLD!WORLD!

““Copper Copper Thieves Thieves

Cause Havoc Cause Havoc for for

Commuters”Commuters”

——The GuardianThe Guardian (London) 28.05.07 (London) 28.05.07

Chicagoland’s

Mystery Disappearances …

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

4343h*h*

*200/yr

1 Houston/1 Houston/

Month/15Month/15

55 (Years)(Years) /42/42 (New (New

Airports)Airports)

China’s share of global consumption/2005:

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

Source: BusinessWeek/08.05

S & P 500, circa 2007: S & P 500, circa 2007:

>50%>50% of of

revenuerevenue from outside the U.S., from outside the U.S.,

first time first time

Source: Source: NYTNYT, 0514.07, 0514.07

200200 cities with cities with

>1,000,000>1,000,000 population.population.

Source: “China Takes Off”, David Hale &Source: “China Takes Off”, David Hale & Lyric Hughes Hale/ Lyric Hughes Hale/Foreign AffairsForeign Affairs

““china and china and India set sights India set sights

on moon on moon mission”mission”

Source: Headline/Source: Headline/FTFT/05.30.2007/05.30.2007

““Non-intervention is our Non-intervention is our brand, like intervention brand, like intervention

is the American’s is the American’s brand,”brand,” Zhou Yuxiao, Chinese diplomat Zhou Yuxiao, Chinese diplomat

on a mission in Africa (on a mission in Africa (U.S. News & World U.S. News & World ReportReport, 0806.07), 0806.07)

THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS

—Clyde Prestowitz

Schools & Shifting Tectonic PlatesSchools & Shifting Tectonic Plates

In:In: "economics, technology, social "economics, technology, social customs and globalization." customs and globalization."

Out:Out: Socialism in general ("one short Socialism in general ("one short chapter"). Chinese communism chapter"). Chinese communism before the 1979 economic revolution before the 1979 economic revolution ("("a a sentencesentence"). Mao ("only once, in a "). Mao ("only once, in a chapter on etiquette").chapter on etiquette").

Source: The Source: The New York TimesNew York Times, p1, 0901.2006, on , p1, 0901.2006, on reported on revised history textbooks for high reported on revised history textbooks for high school seniors in Shanghai, China.school seniors in Shanghai, China.

“Let China sleep, Let China sleep, for when she for when she

awakes she will awakes she will shake the world.” shake the world.”

Source: NapoleonSource: Napoleon

APPARENAPPARENTLY, NOT TLY, NOT

YOUR YOUR WORLD, WORLD, EITHER!EITHER!

40,000,000/2040,000,000/20““[Former Fed Vice-chairman Alan] [Former Fed Vice-chairman Alan] Blinder … remains an Blinder … remains an implacable opponent of tariffs and trade barriers. But implacable opponent of tariffs and trade barriers. But

now he is saying loudly that a new industrial revolutionnow he is saying loudly that a new industrial revolution—communication technology that allows services to be —communication technology that allows services to be

delivered from afar—will put as many as delivered from afar—will put as many as 4040 million Americanmillion American

jobsjobs at risk of being shipped out of the country at risk of being shipped out of the country

in the next decade or two.”*in the next decade or two.”* —Wall Street Journal —Wall Street Journal /0328/0328

*Blinder: 40 million = *Blinder: 40 million = ““only the tiponly the tip of a very big icebergof a very big iceberg.”.”

““Income Income Confers Confers No No

ImmunityImmunity as as Jobs Migrate”Jobs Migrate”

—Headline/USA Today/02.2004

“Deutsche Bank Moves Half of Its Back-office Jobs to India”/

headline/FT/0327 (500 (500 of 900 of 900

ResearchResearch))

“There is no job that

is America’s God-given

right anymore.”

—Carly Fiorina/HP/January2004

““Outsourcing Your Outsourcing Your Life: Taking Your To-Life: Taking Your To-

do List Global”do List Global” —Wall —Wall

Street JournalStreet Journal, “Pursuits,” 0602.07 (e.g., review , “Pursuits,” 0602.07 (e.g., review bids for kitchen design, Philippines; softball bids for kitchen design, Philippines; softball

team logo, Bangalore, math tutorteam logo, Bangalore, math tutor at $4 per hour vs $41, etc.) at $4 per hour vs $41, etc.)

““America, like everyone else, must get America, like everyone else, must get used to being a loser as well as a gainerused to being a loser as well as a gainer in the global economy. In the end, the in the global economy. In the end, the

21 21stst century is unlikely to be the American century is unlikely to be the American Century.”Century.” —“When the Chinese Consumer Is King”/—“When the Chinese Consumer Is King”/New York New York

TimesTimes/12.14.2003./12.14.2003. ““The notion that God The notion that God intended Americans to be permanently intended Americans to be permanently

wealthier than the rest of the world, wealthier than the rest of the world, that gets less and less likely as timethat gets less and less likely as time

goes on goes on.”.” —Robert Solow, Nobel laureate in—Robert Solow, Nobel laureate in economics/ economics/New York TimesNew York Times/12.14.2003/12.14.2003

In Store: In Store: InterInternational Equality, national Equality, IntraIntranational national InequalityInequality

“The new organization of society implied by the “The new organization of society implied by the triumph of individual autonomy and the true triumph of individual autonomy and the true

equalization of opportunity based upon merit will equalization of opportunity based upon merit will lead to very great rewards for merit and great lead to very great rewards for merit and great

individual autonomy. This will leave individuals far individual autonomy. This will leave individuals far more responsible for themselves than they have more responsible for themselves than they have been accustomed to being during the industrial been accustomed to being during the industrial

period. It will also reduce the unearned advantageperiod. It will also reduce the unearned advantage in living standards that has been enjoyed by in living standards that has been enjoyed by

residents of advanced industrial societies residents of advanced industrial societies throughout the 20throughout the 20thth century.” century.”

James Davidson & William Rees-Mogg,James Davidson & William Rees-Mogg,The Sovereign IndividualThe Sovereign Individual

“There is no job that

is _____’s God-given

right anymore.”

20020033: : 98% U.S.98% U.S.20020055: : U.S. 150;U.S. 150; Shanghai 500 Shanghai 500

Level 5 (top) certification/Level 5 (top) certification/Carnegie Mellon Software Engineering Institute: Carnegie Mellon Software Engineering Institute:

3535 of of

7070 companies in world are from Indiacompanies in world are from India

Source: Source: WiredWired

“One Singaporean worker costs as much as …

3 … in Malaysia

88 … in Thailand … in Thailand 13 … in China 18 … in India.”

Source: The Straits Times/2003

““TeenaTeenaggersers in in India have big India have big ambitionsambitions—and —and

the the confidenceconfidence to to match”match” —headline/Fortune

““Short on Priests, Short on Priests, U.S. Catholics U.S. Catholics

Outsource Prayer to Outsource Prayer to Indian Clergy”Indian Clergy”

—Headline, New York Times (“Special intentions,” $.90 for Indians, $5.00 for Americans)

““Ogre to Slay? Ogre to Slay? Outsource It to Outsource It to

Chinese”Chinese” (New York Times, (New York Times,

page 1—news section).page 1—news section).

The “factory”: Fuzhou, China. The workers: youngsters logging 12-The “factory”: Fuzhou, China. The workers: youngsters logging 12-hour shifts. Their clientele: youngsters from “Seoul to San hour shifts. Their clientele: youngsters from “Seoul to San

Francisco.” The “work”: The Chinese youngsters are playing the early Francisco.” The “work”: The Chinese youngsters are playing the early levels of video games for their affluent “clients,” who want to avoid levels of video games for their affluent “clients,” who want to avoid the pain and time associated with those annoying first few levels.the pain and time associated with those annoying first few levels.

““What strategic motto will dominate this What strategic motto will dominate this transition from nation-state to market-transition from nation-state to market-state? If the slogan that animated the state? If the slogan that animated the

liberal, parliamentary nation-states was liberal, parliamentary nation-states was ‘make the world safe for democracy,’ what ‘make the world safe for democracy,’ what

will the forthcoming motto be? Perhaps will the forthcoming motto be? Perhaps ‘making the world available,’‘making the world available,’ which is to which is to say creating new worlds of choice and say creating new worlds of choice and protecting the autonomy of persons to protecting the autonomy of persons to

choose.”choose.” —Philip Bobbitt, —Philip Bobbitt, The Shield of Achilles:The Shield of Achilles: War, Peace, and the Course of History War, Peace, and the Course of History

““better material better material welfare”welfare” vs. vs. “maximize “maximize the opportunity of its the opportunity of its people”people” —Philip Bobbitt, —Philip Bobbitt, The Shield of Achilles: The Shield of Achilles:

War, Peace, and the Course of HistoryWar, Peace, and the Course of History

The facts The facts of (messy) of (messy)

life …life …

““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

““Active Active mutators in mutators in placid placid times tend to die times tend to die off. They are selected off. They are selected

againstagainst. .

Reluctant Reluctant mutators in mutators in quickly quickly changing timeschanging times

are also selected are also selected againstagainst.”.” —Carl Sagan & Ann Druyan, —Carl Sagan & Ann Druyan,

Shadows of Forgotten AncestorsShadows of Forgotten Ancestors

““Natural selection is death. ... Natural selection is death. ...

Without huge amounts Without huge amounts of death, organisms do of death, organisms do not change over time.not change over time. ... ...

Death is the mother of Death is the mother of structure. ... It took four structure. ... It took four

billion years of death ... to billion years of death ... to invent the human mind ...”invent the human mind ...” — —

The Cobra EventThe Cobra Event

““One of my superstitions had One of my superstitions had always been when I started always been when I started

to go anywhere or to do to go anywhere or to do

anything,anything, not to turn not to turn backback ,, or stop, until the or stop, until the

thing intended was thing intended was accomplished.”accomplished.” —Grant

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

““The only way to The only way to whip an army iswhip an army is to go out and to go out and fight it.”fight it.” —Grant

Source: John Mosier, Grant

“recognized the value of recognized the value of momentum … throw momentum … throw

[opponent] off balance … [opponent] off balance … blitzkrieg … traveling light blitzkrieg … traveling light

… headquarters in the … headquarters in the saddle”saddle” —Jean Edward Smith/GRANT

““The Creative Age is The Creative Age is

aa widewide openopen

ggameame.”.” —Richard Florida, The Rise of the Creative Class

Creativity Index:Creativity Index:

The 3 T’sThe 3 T’sTTechnologyechnology (HT Index/firms & $$$,(HT Index/firms & $$$,

Innovation Index/patent growth) Innovation Index/patent growth)

TTalentalent (% with bachelors degrees+)(% with bachelors degrees+)

TToleranceolerance (Melting Pot Index/foreigners, (Melting Pot Index/foreigners,

Bohemian Index/artists et al., Gay Index/rel. #s)Bohemian Index/artists et al., Gay Index/rel. #s)

Source: Richard Florida, Source: Richard Florida, The Rise of the Creative ClassThe Rise of the Creative Class

The Memphis Manifesto*: The Memphis Manifesto*: Building a Community of Ideas Building a Community of Ideas

1. Cultivate & reward creativity.1. Cultivate & reward creativity.2. Invest in the creative ecosystem.2. Invest in the creative ecosystem.3. Embrace diversity.3. Embrace diversity.4. Nurture the creatives.4. Nurture the creatives.5. Value risk-taking.5. Value risk-taking.6. Be authentic (emphasize uniqueness)6. Be authentic (emphasize uniqueness)7. Invest in and build on quality of place.7. Invest in and build on quality of place.8. Remove barriers to creativity.8. Remove barriers to creativity.9. Take responsibility for change. Development as D.I.Y.9. Take responsibility for change. Development as D.I.Y.10. Ensure that every person, especially children, has10. Ensure that every person, especially children, has the right to creativity. Become a “Steward of the right to creativity. Become a “Steward of creativity.” creativity.”

**2003/The Creative 100/Memphis2003/The Creative 100/MemphisSource: Richard Florida, Source: Richard Florida, The Rise of the Creative ClassThe Rise of the Creative Class

““THE FUTURE BELONGS TO … THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO SMALL POPULATIONS … WHO

BUILD EMPIRES OF THE MINDBUILD EMPIRES OF THE MIND … … AND WHO IGNORE THE TEMPTATION OF—OR AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE OPTION OF—EXPLOITING DO NOT HAVE THE OPTION OF—EXPLOITING

NATURAL RESOURCES.”NATURAL RESOURCES.”

Source: Juan Enriquez/Source: Juan Enriquez/AsAs the Future Catches Youthe Future Catches You

““AS A DEVELOPING COUNTRY …AS A DEVELOPING COUNTRY …

YOU CAN LOWER INFLATION …YOU CAN LOWER INFLATION …REDUCE CORRUPTION …REDUCE CORRUPTION …CUT YOUR BUDGET …CUT YOUR BUDGET …PRIVATIZE …PRIVATIZE …

AND STILL NOT GET RICH.AND STILL NOT GET RICH.

BECAUSE YOU ARE NOT GENERATING BECAUSE YOU ARE NOT GENERATING KNOWLEDGE …KNOWLEDGE …JUST PRODUCT.JUST PRODUCT.

(North America, Western Europe, and Japan generated 84 percent (North America, Western Europe, and Japan generated 84 percent of all scientific papers published during 1995.)”of all scientific papers published during 1995.)” Source: Juan Enriquez/ Source: Juan Enriquez/AsAs the Future Catches Youthe Future Catches You

““AS A DEVELOPING COUNTRY …AS A DEVELOPING COUNTRY …

YOU CAN LOWER INFLATION …YOU CAN LOWER INFLATION …REDUCE CORRUPTION …REDUCE CORRUPTION …CUT YOUR BUDGET …CUT YOUR BUDGET …PRIVATIZE …PRIVATIZE …

AND STILL NOT GET RICH.AND STILL NOT GET RICH.

BECAUSE YOU ARE NOT GENERATING BECAUSE YOU ARE NOT GENERATING KNOWLEDGE …KNOWLEDGE …JUST PRODUCT.JUST PRODUCT.

(North America, Western Europe, and Japan generated 84 percent of (North America, Western Europe, and Japan generated 84 percent of all scientific papers published during 1995.)”all scientific papers published during 1995.)” Source: Juan Enriquez/ Source: Juan Enriquez/AsAs the Future Catches Youthe Future Catches You

Hunting for Hunting for the high the high ground …ground …

“Better By Design”: A National Strategy

NZ = DesignNZ = Design ExcellenceExcellence

““We have to move up the value We have to move up the value chain and focus increased chain and focus increased

efforts on becoming a efforts on becoming a knowledge-based, knowledge-based,

entrepreneurial economy if we entrepreneurial economy if we are to prosper in the medium are to prosper in the medium to long term.”to long term.” —Tony Dromgoole, Chief —Tony Dromgoole, Chief

Executive, Irish Management InstituteExecutive, Irish Management Institute

“Thaksinomics” (after Thaksin Shinawatra)

“Bangkok Fashion City”:

“managed “managed asset reflation”asset reflation”

(add to brand value of Thai textiles by demonstrating

flair and design excellence)

Source: The Straits Times/2004

Taiwan, Your Taiwan, Your Partner in Partner in InnoValueInnoValue

Poster/Bucharest/03.06

““THE FUTURE BELONGS THE FUTURE BELONGS TO … SMALL TO … SMALL

POPULATIONS … WHO POPULATIONS … WHO BUILD BUILD EMPIRESEMPIRES OF THEOF THE

MINDMIND … AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE

OPTION OF—EXPLOITING NATURAL RESOURCES.”

Source: Juan Enriquez/As the Future Catches You

““Avoiding the Crush: For countries Avoiding the Crush: For countries to climb the economic ladder they to climb the economic ladder they

need strategies to get around need strategies to get around China” China”

“Beijing’s industrial dominance has “Beijing’s industrial dominance has forced middle-income nations such forced middle-income nations such as the Philippines to complement—as the Philippines to complement—

rather than compete with—the rather than compete with—the wares of the Middle Kingdom”wares of the Middle Kingdom”

Source: Headline, Source: Headline, FTFT, 0614.07, 0614.07

FYIFYI

China : TimberlandChina : Timberland==

Farmer : Campbell Farmer : Campbell SoupSoup

Hold You Horses …Hold You Horses …

*60% of U.S. foreign investment goes to*60% of U.S. foreign investment goes to EuropeEurope*U.S. investment in the smaller European*U.S. investment in the smaller European nations [e.g. Belgium, Ireland] > U.S.nations [e.g. Belgium, Ireland] > U.S. investment in China or India. investment in China or India. *2/3rds of European foreign investment is in *2/3rds of European foreign investment is in the U.S.the U.S.*Europe’s investment in Georgia, Indiana*Europe’s investment in Georgia, Indiana and Texas > U.S. investment in Chinaand Texas > U.S. investment in China and Japan combined.and Japan combined.

Source: Source: Newsweek, Newsweek, 03.200703.2007

0/800/8000

0/800:0/800:

normal!normal!

Keep Austin Keep Austin WeirdWeird

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

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

““Intelligent people Intelligent people can always come up can always come up

with intelligent with intelligent reasons to do reasons to do nothing.”nothing.” —Scott Simon—Scott Simon

Honestly, Honestly, All you needAll you need to know … to know …




Garcia

All you All you need to need to know …know …

““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.”



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

driver (courtesy Andrew Sullivan)

““Life is occupied in both perpetuating Life is occupied in both perpetuating itself and in surpassing itself. If all it itself and in surpassing itself. If all it does is maintain itself, does is maintain itself, then living is then living is

only not dyingonly not dying.”.” —Simone de Beauvoir

“… “… Longevity has its place, but I’m not Longevity has its place, but I’m not concerned about that now. I just want to concerned about that now. I just want to do God’s will, and He’s allowed me to go do God’s will, and He’s allowed me to go up the mountain. And I’ve looked over. up the mountain. And I’ve looked over.

And I have seen the Promised Land. And I have seen the Promised Land. And I don’t mind. … And I don’t mind. … I may not get there I may not get there

with youwith you. …”. …” —MLK/Memphis

Really, really Really, really

AllAll you need you need to know …to know …

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.]

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.

Really, really Really, really

AllAll you need you need to know …to know …

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!

NOTE: NOTE: you will discover you will discover that the prior slide that the prior slide

appears time and time appears time and time again in this again in this presentation.presentation.

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

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

S.A.S.A.V.V.

Paul Allaire/Xerox:Paul Allaire/Xerox: “We are in a “We are in a brawl with no rules.”brawl with no rules.”

TP:TP: “There’s “There’s [literally][literally] only one only one

possible answer … possible answer … SScrew crew

AAround round VVigorouslyigorously!!

““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

““The secret of fast The secret of fast progress is progress is

inefficiencyinefficiency, fast and , fast and furious and numerous furious and numerous

failures.”failures.” —Kevin Kelly

Innovation:Innovation:

GetGet madmad.. Start Start

DoingDoing

somethingsomething

about it. about it. NowNow..

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

S&P Stability Ratings*

1985 2006

Low Risk 41% Low Risk 41% 13%13% Average Risk 24% 14%

High RiskHigh Risk 35% 35% 73%73%

*Likelihood of stable long-term earnings growth

Source: Fortune (2 October 2006)

AxiomAxiom: : We have met the enemy We have met the enemy and he is and he is us.us.

AxiomAxiom:: The adaptive capabilities The adaptive capabilities of big corporations taken as a of big corporations taken as a whole is problematic [read: whole is problematic [read: patheticpathetic].].

AntidoteAntidote: : The answer is 75% The answer is 75% internal.internal. To sustain/win, we must To sustain/win, we must first and foremost and in first and foremost and in perpetuity beat back the forces perpetuity beat back the forces of darkness—of darkness—sizesize and and inertiainertia and and fearfear and and timiditytimidity and and over-over-complexitycomplexity..

““Uncertainty is the Uncertainty is the only thing to be only thing to be sure of.”sure of.” –Anthony Muh,

head of investment in Asia, Citigroup Asset Management

“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

0 for 600 for 60

China. Iran/79. China. Iran/79. USSR/bomb/49. Eastern USSR/bomb/49. Eastern

Europe/90. Europe/90. S Korea/50. Cuba/62. Arab-S Korea/50. Cuba/62. Arab-Israeli/73. Afghanistan/79. Israeli/73. Afghanistan/79.

USSR/1989. Kuwait/90. USSR/1989. Kuwait/90. India/98. WMDs/02-03. Etc.India/98. WMDs/02-03. Etc.

Source: Source: Legacy of AshesLegacy of Ashes* **, Tim Weiner* **, Tim Weiner

*Eisenhower*Eisenhower**“The agency has a great reputation but a terrible **“The agency has a great reputation but a terrible

record.”—Donald Gregg, nat’l security advisor, VP Bushrecord.”—Donald Gregg, nat’l security advisor, VP Bush

I.E.: I.E.: our “best and our “best and brightest … aren’t.brightest … aren’t.

““Mr. Foster and his McKinsey Mr. Foster and his McKinsey colleagues collected detailed colleagues collected detailed

performance data stretching back 40 performance data stretching back 40 years for 1,000 U.S. companies. years for 1,000 U.S. companies. They They

found that none of the long-term found that none of the long-term survivors managed to outperform the survivors managed to outperform the market. Worse, the longer companies market. Worse, the longer companies had been in the database, the worse had been in the database, the worse

they did.”they did.”—Financial Times—Financial Times/11.28.2002/11.28.2002

““It’s just a fact:It’s just a fact:

Survivors Survivors underperform.”underperform.”

—Dick Foster—Dick Foster

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

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

match or outperform the market without match or outperform the market without abandoning the assumption of abandoning the assumption of

continuity.continuity. … The current apocalypse—the … The current apocalypse—the transition from a state of continuity to state of transition from a state of continuity to state of

discontinuity—has the same suddenness [as the discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” trauma that beset civilization in 1000 A.D.]”

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

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)

GMGM2525/50-/50-75:75: “Built to “Built to

last”last”????????

Forget > “Learn”

“The problem is never how to get new, innovative

thoughts into your

mind, but how to get the old ones out.” —Dee Hock

Success Kills!Success Kills!

“The more successful “The more successful a company, the flatter a company, the flatter its forgetting curve.”its forgetting curve.”

— Gary Hamel and C.K. Prahalad— Gary Hamel and C.K. Prahalad

Wanted* ** : Corporate Corporate Senility!Senility!

*Desperately!

** “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

““Biters Bit: How Web Biters Bit: How Web Giants Are Losing Giants Are Losing

Business as Startups Business as Startups Scurry In.”Scurry In.” ——FTFT, 0725.07 (“The , 0725.07 (“The

disruptive innovators of the first disruptive innovators of the first Silicon Valley boom may be failing to Silicon Valley boom may be failing to keep up with a new wave of arrivals.”)keep up with a new wave of arrivals.”)

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

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

(Practical) ImplicationImplication?

“Go for it!”“Go for it!” (Why not—

alternative is slow death, at best)

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

our control:our control: EverEveryythinthingg in existence tends in existence tends to deteriorateto deteriorate.”.”

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

““Everything in Everything in existence tends to existence tends to

deteriorate”/ “Buy a deteriorate”/ “Buy a very large onevery large one and just wait” and just wait”

= License (= License (MandateMandate!)!) for for RadicalRadical Approaches Approaches

Joe J. Jones Joe J. Jones 1937 – 2007 1937 – 2007

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!

Thomas J. PetersThomas J. Peters

1942-1942-No rush !No rush !

“In Tom’s world, it’s always “In Tom’s world, it’s always

better to try a swan dive and better to try a swan dive and

deliver a colossal belly flop deliver a colossal belly flop

than to step timidly off the than to step timidly off the

board while holding your board while holding your

nose.”nose.” — —Fast CompanyFast Company

BIAS.BIAS.BUILT.BUILT.

TO.TO.LAST.LAST.NOT.NOT.

TP#1*:TP#1*:

NetscapeNetscape!!

*Where would you rather have worked for those 5 years, Netscape*Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you

rather to be able to tell someone—e.g., grandchild—that you worked?) rather to be able to tell someone—e.g., grandchild—that you worked?)

Built to Lastvs

Built Built to to ChangeChange//Rock Rock the the

WorldWorld


word.”word.”

RMcK: “A lot of companies in the Valley fail.”

RN: “Maybe not enough fail.”“Maybe not enough fail.”

RMcK: “What do you mean by that?”

RN: “Whenever you fail, it“Whenever you fail, it means you’re trying means you’re trying new things.” new things.”

Source: Fast Company

““Wealth in this new regime Wealth in this new regime flows directly from innovation, flows directly from innovation,

not optimization. That is, not optimization. That is, wealth is not gained by wealth is not gained by

perfecting the known, perfecting the known, but by but by imperfectly seizing the imperfectly seizing the unknown.”unknown.” —Kevin Kelly, New Rules for

the New Economy

Q4/2006Q4/2006

+500,000+500,000

Source: Source: Barron’sBarron’s 0922.07 0922.07

Q4/2006Q4/2006

+500,000+500,000 = ? = ?


Q4/2006Q4/2006

+500,000+500,000 = =+7,700,000+7,700,000-7,200,000-7,200,000


““Five hundred years before Christ in a little Five hundred years before Christ in a little town on the far western border of the settled town on the far western border of the settled and civilized world, a strange new power was and civilized world, a strange new power was at work. … at work. … Athens had entered uAthens had entered uppon her brief on her brief and maand maggnificent flowerinnificent floweringg of of ggenius which so enius which so

molded the world of mind and of spirit that molded the world of mind and of spirit that our mind and sour mind and sppirit todairit todayy are different are different. What . What was then produced of art and of thought has was then produced of art and of thought has

never been surpassed, and the stamp of itnever been surpassed, and the stamp of it is upon all the art and all the thought of is upon all the art and all the thought of the Western world.” the Western world.” —Edith Hamilton, —Edith Hamilton,

The Greek WayThe Greek Way

Great Companies … SETSET THETHE

AGENDAAGENDA.**

* “disturb the sleep of … ”

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

US Steel … Ford … US Steel … Ford … ToyotaToyota … Sears … … Sears … GM … ITT …GM … ITT … The Gap …The Gap … Limited …Limited …

Wal*MartWal*Mart …… TescoTesco …… P&G … 3M …P&G … 3M … IntelIntel … IBM …… IBM … AppleApple …… NokiaNokia ……

CiscoCisco … … DellDell … MCI … Sun …… MCI … Sun … MicrosoftMicrosoft …… GoogleGoogle … Enron …… Enron …

SchwabSchwab …… GEGE … Laker … … Laker … Southwest Southwest … People Express …… People Express … OgilvyOgilvy …… VirginVirgin

…… eBayeBay …… AmazonAmazon … Sony… Sony …… AmgenAmgen …… BMWBMW … CNN … … CNN … NikeNike

Built to Last v. Built to FlipBuilt to Last v. Built to Flip

“The problem with Built to Last is that it’s a “The problem with Built to Last is that it’s a romantic notion. Large companies are incapable romantic notion. Large companies are incapable

of ongoing innovation, of ongoing flexibility.”of ongoing innovation, of ongoing flexibility.”

“Increasingly, successful businesses will be “Increasingly, successful businesses will be ephemeral. They will be built to yield something ephemeral. They will be built to yield something

of value – and once that value has been of value – and once that value has been exhausted, they will vanish.”exhausted, they will vanish.”

Fast CompanyFast Company

Built to Last vs Built for Impact

“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it

will become ever more fleeting. The ultimate The ultimate aim of a business oraim of a business orgganization, an anization, an artist, an athlete or a stockbroker artist, an athlete or a stockbroker mamayy be to ex be to expplode in a dramatic lode in a dramatic frenzfrenzyy of value creation durin of value creation duringg a a

short sshort sppace of time, rather than to ace of time, rather than to live foreverlive forever.”.” —Kjell Nordström and Jonas Ridderstråle,

Funky Business

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

—and old ones to die a timely death. … —and old ones to die a timely death. … We believe We believe that most corporations will find it that most corporations will find it impossible to match or outperform impossible to match or outperform the market without abandoning the the market without abandoning the assumption of continuity.assumption of continuity. … The current … The current

apocalypse—the transition from a state of continuity to state apocalypse—the transition from a state of continuity to state of discontinuity—of discontinuity—

has the same suddenness [as the trauma that beset has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” civilization in 1000 A.D.]”

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

BUILT TO … DETERIORATE!BUILT TO … DETERIORATE!

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

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

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

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

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

higher today than it was in 1998.”)higher today than it was in 1998.”)

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

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

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

Warren Bennis & Patricia Ward Biederman/ Warren Bennis & Patricia Ward Biederman/

Organizing GeniusOrganizing Genius:: Great Great Groups Groups

Don’t Last Don’t Last Very LongVery Long!!

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

F.A. Hayek: F.A. Hayek: Spontaneous Spontaneous Discovery ProcessDiscovery Process.. Joseph Schumpeter: theJoseph Schumpeter: the Gales of Gales of

Creative Creative Destruction.Destruction.

““In Tom’s world, it’s In Tom’s world, it’s always better to try always better to try

a swan dive and a swan dive and deliver a colossal deliver a colossal belly flop than to belly flop than to

step timidly off the step timidly off the board while holding board while holding

your nose.”your nose.” —Fast Company

/October2003

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”

““Astonish me!”Astonish me!” (SD).

“Build something great!”“Build something great!” (HY).

“Make it immortal!”“Make it immortal!” (DO)

“Insanely great” “Insanely great” (SJ)(SJ)

EXCELLENCE. EXCELLENCE. CIRCA 1982.CIRCA 1982.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

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”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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

What is What is In Search of ExcellenceIn Search of Excellence all about all about::

People.People. Emotion. Engagement. Emotion. Engagement. Exuberance. Action-Execution. Exuberance. Action-Execution. Empowerment. Independence. Empowerment. Independence. Initiative. Imagination. Great Initiative. Imagination. Great

Stories. Stories. Incredible Adventures.Incredible Adventures. Trust. Caring. Fun. Joy. Trust. Caring. Fun. Joy.

Customer-centrism. Customer-centrism. Profit.Profit. Growth. “Brand You.” “Dramatic Growth. “Brand You.” “Dramatic Differences.” Experiences that Differences.” Experiences that Make You “Gasp.” Make You “Gasp.” Excellence. Excellence.

Always.Always.

NOTE.: NOTE.: drop the “the drop the “the companies in companies in in search of in search of excellenceexcellence failed”—utter failed”—utter rubbish. They’ve waaaay rubbish. They’ve waaaay

outperformed the market.outperformed the market.

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

DRUCKER’S GREAT CONTRIBUTION: management

per se as a/the principal determinant of institutional

effectiveness

EXCELLENCE. EXCELLENCE.

GAMECHANGER.GAMECHANGER.(MAYBE.)(MAYBE.)

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

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

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

Approximately 640640 Index entries: Customer/s

(service, retention, loyalty), 44. People (employees, motivation, morale,

worker/s), 00. Innovation (product development, research &

development, new products), 00.

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

Excellence2005: The Bedrock Baker’s DozenExcellence2005: The Bedrock Baker’s Dozen

1. 1. A Bias For Action Is Job One!A Bias For Action Is Job One! (Construct a Discipline/Culture of EXECUTION!)(Construct a Discipline/Culture of EXECUTION!)

2. DECENTRALIZATION! ACCOUNTABILITY!2. DECENTRALIZATION! ACCOUNTABILITY! (Tom’s “Top Two”, 1965-2005.)(Tom’s “Top Two”, 1965-2005.)

3. Fail. Forward. Fast.3. Fail. Forward. Fast. (“Reward Excellent Failures, Punish Mediocre Successes.”)(“Reward Excellent Failures, Punish Mediocre Successes.”)

4. “Metabolic Management” Matters!4. “Metabolic Management” Matters! ((Hustle! Adapt! EAT CHANGE! Win theHustle! Adapt! EAT CHANGE! Win the “ “O.O.D.A. Loop” War—Confuse Your Competitors!)O.O.D.A. Loop” War—Confuse Your Competitors!)

5. INNOVATE or Die.5. INNOVATE or Die. (“Game-changers” or Bust! Lead the Customer! Just Shout “NO” to Imitation!)(“Game-changers” or Bust! Lead the Customer! Just Shout “NO” to Imitation!)

6. A Damn 6. A Damn GoodGood Product. Product. (Pursue “Dramatic Difference.”)(Pursue “Dramatic Difference.”)

7. A Damn 7. A Damn CoolCool Product. Product. (Design Rules!)(Design Rules!)

8. Ride the Value Added Curve to the Sky!8. Ride the Value Added Curve to the Sky! (Sell “GamechangerSolutions”; Provide “Scintillating(Sell “GamechangerSolutions”; Provide “Scintillating

Experiences”; Become a “Dream Merchant”; Strive to Be a “Lovemark.”)Experiences”; Become a “Dream Merchant”; Strive to Be a “Lovemark.”)

9. Relentlessly Pursue the “Big Two” Markets.9. Relentlessly Pursue the “Big Two” Markets. (WOMEN Buy Everything(WOMEN Buy Everything BOOMERS & GEEZERS Have All the Money!) BOOMERS & GEEZERS Have All the Money!)

10. Best “Talent”/Roster Wins! 10. Best “Talent”/Roster Wins! ((HR Rules! Everyone a Leader! Women Lead Best!HR Rules! Everyone a Leader! Women Lead Best! “ “Weird” Matters Most! A Workplace to Brag About! Educate for Creativity!)Weird” Matters Most! A Workplace to Brag About! Educate for Creativity!)

11. Wanted/Demanded: Radical Technology Strategies!11. Wanted/Demanded: Radical Technology Strategies! (“Incrementalism” Is for Wimps!)(“Incrementalism” Is for Wimps!)

12. Hard Is Soft! Soft Is Hard!12. Hard Is Soft! Soft Is Hard! (People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST!(People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST! Good Citizenship.)Good Citizenship.)

13. Accept No Less Than EXCELLENCE!13. Accept No Less Than EXCELLENCE! (Excellence, Pursuit thereof, Is the #1 Thing That Vaults (Excellence, Pursuit thereof, Is the #1 Thing That Vaults Us Out of Bed in the Morning) Us Out of Bed in the Morning)

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).

Everything You Need to Know about “Strategy”Everything You Need to Know about “Strategy”

1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you 1. Do you have awesome Talent … everywhere? (“We are the Yankees of home improvement here in Omaha.”) Do you push that Talent to pursue Audacious Quests?push that Talent to pursue Audacious Quests?2. Is your Talent Pool loaded with wonderfully peculiar people who others would2. Is your Talent Pool loaded with wonderfully peculiar people who others wouldcall “problems”? And what about your Extended Community of customers, vendors et al?call “problems”? And what about your Extended Community of customers, vendors et al?3. Is your Board of Directors as cool as your product offerings … and does it have3. Is your Board of Directors as cool as your product offerings … and does it have50 percent (or at least one-third) Women Members?50 percent (or at least one-third) Women Members?4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and 4. Long-term, it’s a “Top-line World”: Is creating a “culture” that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation … not Imitation!Entrepreneurship your primary aim? Remember: Innovation … not Imitation!5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving “Bias for Action,” to quote the co-authors of of In Search of ExcellenceIn Search of Excellence? Are your O.O.D.A. loops shorter than the next guy’s? ? Are your O.O.D.A. loops shorter than the next guy’s? 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per 6. Do you routinely use hot, aspirational words-terms like “Excellence” and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent Jim Collins) and “Let’s make a dent in the Universe” (the Word according to Steve Jobs)? Is “Reward excellent failures, punish mediocre successes” your de facto or de jure motto?failures, punish mediocre successes” your de facto or de jure motto?7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the 7. Do you subscribe to Jerry Garcia’s dictum: “We do not merely want to be the best of the best, we want to be the only ones who do what we do”?only ones who do what we do”?8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to 8. Do you elaborate on and enhance Jerry G’s dictum by adding, “We subscribe to ‘Best Sourcing’—and only want to associate with the ‘best of the best’.” associate with the ‘best of the best’.” 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal?9. Do you embrace the new technologies with child-like enthusiasm and a revolutionary’s zeal?10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an 10. Do you “serve” and “satisfy” customers … or “go berserk” attempting to provide every customer with an “awesome experience” that does nothing less than transform the way she or he sees the world?“awesome experience” that does nothing less than transform the way she or he sees the world?11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and 11. Do you understand … to your very marrow … that the two biggest under-served markets are Women and Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires Boomers-Geezers? And that to “take advantage” of these two Monster “Trends” (FACTS OF LIFE) requires fundamental re-alignment of the enterprise?fundamental re-alignment of the enterprise?12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is “We care” your implicit motto?the enterprise? Is “We care” your implicit motto?13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETE13. Do you understand business mantra #1 of the ’00s: DON’T TRY TO COMPETEWITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)WITH WAL*MART ON PRICE OR CHINA ON COST? (And if you get this last idea, then see the 12 above!)

Ten Good Reasons to “Get Up in the Morning”Ten Good Reasons to “Get Up in the Morning”

1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster 1. Empower one and all to vigorously seek WOW! in their work/projects. (Or else.) Foster the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) the “Brand You Spirit” and the “Entrepreneurial Urge” at every turn. (Or else.) 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, 2. Blow up “education” as we know it today! Re-tool education to emphasize the arts, creativity, entrepreneurial behavior. (Or else.)creativity, entrepreneurial behavior. (Or else.)3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence 3. Seek out the bold, the strange, the misfits, the dreamers—and welcome their presence in our midst.in our midst.4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make 4. Drag enthusiasm, passion, Technicolor and bold commitment out of the closet! Make Passion your Passion! (Hint: Passion makes the world go ‘round.)Passion your Passion! (Hint: Passion makes the world go ‘round.)5. Be a champion for: Women Roar! Women Rule!5. Be a champion for: Women Roar! Women Rule!6. Underscore the importance of/stupendous opportunities associated with the “cool new 6. Underscore the importance of/stupendous opportunities associated with the “cool new markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness.markets”: Women, Boomers and Geezers, Hispanics, Greenies, Wellness.7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention 7. Dramatically re-orient healthcare from after-the-fact “fixes” to before-the-fact attention to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some to prevention-Wellness. (And “kindly suggest” that the “acute-care” “industry” give some passing thought to Quality.)passing thought to Quality.)8. Ensure that the historically neglected “intangibles” are the prime basis for individual 8. Ensure that the historically neglected “intangibles” are the prime basis for individual and enterprise success.and enterprise success.9. Support Globalization as the best—if indeed messy—path to maximum human 9. Support Globalization as the best—if indeed messy—path to maximum human freedom, security and welfare.freedom, security and welfare.10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”10. Swear by the motto: “Reward excellent failures; punish mediocre successes.”

This I Believe: This I Believe: Tom’s Super-TIB25Tom’s Super-TIB25

1. 1. TECHTECHNINICOLCOLOOR R TimesTimes..2. 2. Passion! Enthusiasm! Energy!Passion! Enthusiasm! Energy!3. 3. Action/R.F.A./O.O.D.A. Speed.Action/R.F.A./O.O.D.A. Speed.4. Screw-ups. 4. Screw-ups. BIG SCREW-Ups!BIG SCREW-Ups!5. 5. Mess! Improv!Mess! Improv!6. 6. Revolution! Re-imagine!Revolution! Re-imagine!7. 7. INNOVATE OR DIE! INNOVATE OR DIE! 8.8. Decentralize!Decentralize!9.9. Bulk is BULL! (Mergers don’t work. FOCUS Does!)Bulk is BULL! (Mergers don’t work. FOCUS Does!)1010 “Different” > “Better” “Different” > “Better”11. eALL/Power Tools for Power Strategies!11. eALL/Power Tools for Power Strategies!12. 12. Forgetting/Destruction.Forgetting/Destruction.13. 13. Hot Language Matters!Hot Language Matters!14. 14. WOW!/WOW Projects.WOW!/WOW Projects.15. 15. VA Bedrock: The “PSF.” (Professional Service Firm.)VA Bedrock: The “PSF.” (Professional Service Firm.)16. 16. Daring.Daring.17. 17. Talent Time! Leaders “Do” People!Talent Time! Leaders “Do” People!18. 18. Talent+/Diversity.Talent+/Diversity.19. 19. Talent++/Women Rule!Talent++/Women Rule!20. 20. “Brand You” Universe.“Brand You” Universe.21. 21. Design!Design!22. 22. Gasp-worthy Experiences/Lovemarks.Gasp-worthy Experiences/Lovemarks.23. 23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness.New Market Demographics/Women/Boomers & Geezers/Green/Wellness.24.24. Grace.Grace.25.25. EXCELLENCEEXCELLENCE!!

EXCELLENCE. EXCELLENCE. TOM. 2007.TOM. 2007.



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, Moldy basements)(Pharmaceuticals, Moldy basements)

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

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

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

Leaders “Serve.”Leaders “Serve.” (“Servant”/“Host” Leadership) (“Servant”/“Host” Leadership)

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)

It’s all about Women! It’s all about Women! (Market, Leadership, Wealth, “Womenomics”)(Market, Leadership, Wealth, “Womenomics”)

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

25! 25! (Go, Howard!) (Conrad says, “Don’t forget the shower curtain.)(Go, Howard!) (Conrad says, “Don’t forget the shower curtain.)

be “be “of of [‘gaspworthy’] [‘gaspworthy’] serviceservice” ” (Cirque du Soleil is our standard—”even” in(Cirque du Soleil is our standard—”even” infinance.) (My customer is my partner.) (Remember “She”; finance.) (My customer is my partner.) (Remember “She”; remember “Me” … the latter = Old & $$$. ) remember “Me” … the latter = Old & $$$. )

Create effective/imaginative/minimalist Create effective/imaginative/minimalist infrastructureinfrastructure (K.I.S.S./Keep It Simple, Stupid; (K.I.S.S./Keep It Simple, Stupid; RED RED BUTTON on the terminal)BUTTON on the terminal)

rere--imagineimagine as “routine” as “routine” (Forget > Remember) (Forget > Remember)

enjoy It enjoy It WhileWhile ItIt LastsLasts

EXCELLENCE. EXCELLENCE.

CAUSES.CAUSES.ADVERSARIES.ADVERSARIES.

Causes/1966-2006

Women/Market opportunityWomen/Market opportunityWomen/Leaders Women/Leaders (right for the times)(right for the times)

Design/Design-as-soulDesign/Design-as-soulWow! Wow! (Hot language)(Hot language)

Weird!Weird!Passion!/Enthusiasm!/Exuberance! Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1)(as Leader Lever #1)

Brand You Brand You (or else)(or else)

PSF = Bedrock PSF = Bedrock (add value or bust—every group must(add value or bust—every group must demonstrate economic viability)demonstrate economic viability)

PSF + Brand You + WOW Projects = New Biz LogicPSF + Brand You + WOW Projects = New Biz LogicSales/+R > -C Sales/+R > -C (increasing revenue more important than cutting cost)(increasing revenue more important than cutting cost)

HealthCare/Wellness-Safety-H5N1HealthCare/Wellness-Safety-H5N1Brand = Talent Brand = Talent (best roster wins)(best roster wins)

New VA Ladder/Products-Services-SOLUTIONS-New VA Ladder/Products-Services-SOLUTIONS- EXPERIENCES-DREAMKETING EXPERIENCES-DREAMKETING (Dream Marketing)-(Dream Marketing)-

LOVEMARKLOVEMARKDifferent > > BetterDifferent > > BetterBoomers & Geezers/marketing to new “mega-Boomers & Geezers/marketing to new “mega-segment”segment”

Adversaries

B-schools B-schools (crappy at soft skills, implementation, leadership)(crappy at soft skills, implementation, leadership)

Strategy-is-allStrategy-is-allBy-the-numbers managementBy-the-numbers managementDis-passionate managementDis-passionate managementFocus groupsFocus groupsIntuition discountedIntuition discountedLeading as an intellectual taskLeading as an intellectual taskLeading without passionLeading without passionCool language in Hot timesCool language in Hot timesDilbert Dilbert (accepting cubicle slavery)(accepting cubicle slavery)

Bigness per se Bigness per se (severe scale limitations—even at Microsoft)(severe scale limitations—even at Microsoft)

White guys! White guys! (not really, but enough already)(not really, but enough already)

18-44 emphasis in marketing 18-44 emphasis in marketing (geezers > youth for foreseeable future)(geezers > youth for foreseeable future)

-Cost > +Revenue -Cost > +Revenue (cost cutting more important than organic revenue (cost cutting more important than organic revenue growth) growth)

CI CI (continuous improvement in an age of discontinuous world)(continuous improvement in an age of discontinuous world)

LESS THAN THE NO-HOLDS-BARRED PURSUIT OF LESS THAN THE NO-HOLDS-BARRED PURSUIT OF EXCELLENCEEXCELLENCE

Them-UsThem-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.

TP’TP’ss “23Passions”“23Passions”

by date:by date:1942-20061942-2006

Tom’s 23 PassionsTom’s 23 PassionsB>A* (R.F.A.)B>A* (R.F.A.) (*Behavior drives Attitude)(*Behavior drives Attitude) … ’71-’06Implementation = #1Implementation = #1 … ’73-’77 (’06) “Soft is Hard”“Soft is Hard” (“Management Style”)(“Management Style”) … ’77-’79 (’06)(Org) Structure>Strategy(Org) Structure>Strategy … ’77-’83 (’06)Strategy-Structure+/ “McKinsey 7-S” ModelStrategy-Structure+/ “McKinsey 7-S” Model ... ’77-’81 Action>PlanningAction>Planning … ’74-’06Mess = RealityMess = Reality ... ’77-’06 Skunkworks/Skunks (“Offline” Innovation/Innovators)Skunkworks/Skunks (“Offline” Innovation/Innovators) … ’84-’91MBWAMBWA … ’80-’85 (’06)Excellence IExcellence I … ’79-’84Mid-size biz is coolMid-size biz is cool … ’84-’89 (’06)Customer serviceCustomer service … ’84-’88InnovationInnovation … ’87-’92Free trade/HayekFree trade/Hayek … ’90-’92New Org ModelsNew Org Models … ’92-’96PSFPSF … ’92-’06WOW! (WOW Projects) … ’93-’06Brand YouBrand You … ’94-’00DesignDesign … ’94-’06Women (Markets-Leaders)Women (Markets-Leaders) … ’96-’06EXCELLENCE IIEXCELLENCE II … ’06-??Healthcare (Quality-Wellness-PatientCentric)Healthcare (Quality-Wellness-PatientCentric) … ’06-??Exuberance-PassionExuberance-Passion (Soft is Hard)(Soft is Hard) … ’42-’06

A Life’s WorkA Life’s Work

1966:1966: MBWA/Do>Talk MBWA/Do>Talk

1974:1974: Behavioralism: Do>Talk/IMPLEMENTATION>Strategy Behavioralism: Do>Talk/IMPLEMENTATION>Strategy

1979:1979: 7S/Emphasis on “Soft Ss” (“Hard is soft. Soft is hard.”) 7S/Emphasis on “Soft Ss” (“Hard is soft. Soft is hard.”)

1982:1982: “Beyond strategy” “Beyond strategy”EXCELLENCEEXCELLENCE

“Bias for Action”/“Do it. Fix it. Try it again.” “Bias for Action”/“Do it. Fix it. Try it again.”“Close to the Customer”“Close to the Customer”

MBWA (as metaphor)MBWA (as metaphor) “Management Style” “Management Style”

1990:1990: “Innovate or Die” “Innovate or Die”DesignDesignWomenWomen

Brand YouBrand YouWOW! (Passion. Enthusiasm. Energy. Emotion. Technicolor)WOW! (Passion. Enthusiasm. Energy. Emotion. Technicolor)

2000:2000: “The Work Matters” “The Work Matters”PSF+BY+WowProjects = V.A. Source #1PSF+BY+WowProjects = V.A. Source #1

Brand “Inside”Brand “Inside”

2003:2003: Re-imagine. Re-imagine.Technicolor.Technicolor.

C.D.O. (Chief Destruction Officer)C.D.O. (Chief Destruction Officer)

2007:2007: Excellence! Excellence!Basics!Basics!Action!!Action!!

MBWA (as metaphor)MBWA (as metaphor)Reason for Being.Reason for Being.

Worth.Worth.The.The.

hassle.hassle.

Why I Work/Stuff I Care AboutWhy I Work/Stuff I Care About**“Hard is soft. Soft is hard.” Social stuff, Emotional stuff =“Hard is soft. Soft is hard.” Social stuff, Emotional stuff = Good stuff = The Right Stuff! Good stuff = The Right Stuff! **Mess = Normal = Reality. Rationality = Delusional. Mess = Normal = Reality. Rationality = Delusional. Non-linearity = Life 101. Non-linearity = Life 101. (Embrace it! Design accordingly!)(Embrace it! Design accordingly!)**Failure = Normal/Necessary/Good! “Reward excellent failure.Failure = Normal/Necessary/Good! “Reward excellent failure. Punish mediocre success.” “Fail faster. Succeed sooner.” Punish mediocre success.” “Fail faster. Succeed sooner.” “Fail. Forward. Fast.” Fail. Sam Walton Secret #1: Fail. Fast. “Fail. Forward. Fast.” Fail. Sam Walton Secret #1: Fail. Fast.**Do > Think. Act > Talk. Action bias! RELENTLESSDo > Think. Act > Talk. Action bias! RELENTLESS EXPERIMENTATION! R.F.A./Ready. Fire. Aim. EXPERIMENTATION! R.F.A./Ready. Fire. Aim. S.A.V./Screw Around Vigorously. S.A.V./Screw Around Vigorously.**Decentralization = Holy writ = More independent tries.Decentralization = Holy writ = More independent tries.**Success for Mortals: Indirection. SkunkWorks. End Runs.Success for Mortals: Indirection. SkunkWorks. End Runs. Parallel Universe. 4F/Find a Fellow Freak Faraway. Parallel Universe. 4F/Find a Fellow Freak Faraway. Demos. Heroes. Stories. Demos. Heroes. Stories.**The “Missing 98%”: Implementation-Execution. The “Missing 98%”: Implementation-Execution. **Strategic planning, limits thereto. Severe.Strategic planning, limits thereto. Severe.**Pitiful performance of Huge Companies. Needed: C.D.O./Pitiful performance of Huge Companies. Needed: C.D.O./ Chief Destruction Officer. Chief Destruction Officer.**Severe limits to scale advantage. Mega-mergers = Stupid.Severe limits to scale advantage. Mega-mergers = Stupid.**“Built to last.” Why??? Instead: Built to change the world.“Built to last.” Why??? Instead: Built to change the world.**People First! People Power! Best “Roster” Wins. HR (should)People First! People Power! Best “Roster” Wins. HR (should) rule! Leaders “ rule! Leaders “DODO” People! Respect-Appreciation Rules!” People! Respect-Appreciation Rules!**Freaks for Freaky Times!Freaks for Freaky Times!

Why I Work/Stuff I Care AboutWhy I Work/Stuff I Care About**WOMEN’S WORLD!/WOMENOMICS! #1 MARKET! WEALTH/ALL! WOMEN’S WORLD!/WOMENOMICS! #1 MARKET! WEALTH/ALL! LEADERS/BETTER! (Also: Boomers/Geezers/Many/Money.) LEADERS/BETTER! (Also: Boomers/Geezers/Many/Money.)**Aesthetics! Beauty! Grace! (Design primacy.) Aesthetics! Beauty! Grace! (Design primacy.) **MBWA! (Managing By Wandering Around.)MBWA! (Managing By Wandering Around.)**Basics Rule:Basics Rule: Don’t over-complicate. (Product, People, Action Don’t over-complicate. (Product, People, Action …)…)**Educate for Risk-taking, Creativity, Independence.Educate for Risk-taking, Creativity, Independence.**B-schools suck. Teach all … except what’s important. B-schools suck. Teach all … except what’s important. D-School = Cool. D-School = Cool.**Healthcare’s Big Three: Quality. Prevention. Wellness.Healthcare’s Big Three: Quality. Prevention. Wellness.**R>C. (Adding Revenue > Cutting cost.) Help Wanted: C.R.O./R>C. (Adding Revenue > Cutting cost.) Help Wanted: C.R.O./ Chief Revenue Officer. Chief Revenue Officer. **S>M (Selling > Marketing.) S>M (Selling > Marketing.) SELL! SELL! SELL! SELL!SELL! SELL! SELL! SELL!**Free markets work! Free trade works! Rise of India-China =Free markets work! Free trade works! Rise of India-China = Good thing. Respond with Excellent Performance: Add Good thing. Respond with Excellent Performance: Add “insane”“insane” amounts of value! Become a “Lovemark”!! amounts of value! Become a “Lovemark”!! **Brand You. Self-reliance!! Mastery !! Liberation!!Brand You. Self-reliance!! Mastery !! Liberation!!**Survival = PSF/Professional Service Firm “mindset.” Goal #1:Survival = PSF/Professional Service Firm “mindset.” Goal #1: Enable clients to become successful beyond their dreams! Enable clients to become successful beyond their dreams!**Fun! (“Cool” is Cool.)Fun! (“Cool” is Cool.)**Service-obsessed!/Experience-obsessed! (Object: “Raving Service-obsessed!/Experience-obsessed! (Object: “Raving fans.”)fans.”)**PASSION-EXUBERANCE-ENTHUSIASM. PASSION-EXUBERANCE-ENTHUSIASM. **“Hot” Language! WOW! Insanely great! “Hot” Language! WOW! Insanely great! **EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

TOM PETERS.TOM PETERS.

THE “DAMN ITS.” THE “DAMN ITS.”

To The Mat: The ““5 Damn Its5 Damn Its””

Women.Women.PSF.PSF.

Brand you.Brand you.R.f.a.R.f.a.

EXCELLENCE. EXCELLENCE. ALWAYS.ALWAYS.

M.I.A.Action!Action! *

Implementation!Implementation! **The Work Itself!The Work Itself! ***

*R.F.A.**Execution

***WOW Projects!

““Never forget Never forget

imimpplementationlementation boys. In our work it’s boys. In our work it’s

what I call the what I call the

‘‘missinmissingg 98 98 percentpercent’’ of the of the

client puzzle.”client puzzle.” —Al McDonald

““The first 90% of a The first 90% of a project takes 90% ofproject takes 90% of the time. The last the time. The last

10% takes the other 10% takes the other 90% of the time.”90% of the time.” —Richard —Richard

Templar,Templar, The Rules of ManagementThe Rules of Management

TOM PETERS.TOM PETERS. THE DEAL. THE DEAL.

Revolution-Transformation. Revolution-Transformation. (No long runs on Broadway-Senility.)(No long runs on Broadway-Senility.)

“Soft”>“Hard.” “Soft”>“Hard.” (Culture or Bust.)(Culture or Bust.)

Execution-Action. Execution-Action. (Do>Think.)(Do>Think.)

Clean Sheet of Paper. Clean Sheet of Paper. (Web2.0, Transparency, New Org Form—Itinerant Potential Machines.)(Web2.0, Transparency, New Org Form—Itinerant Potential Machines.)

PSF-Brand You-Wow Projects.PSF-Brand You-Wow Projects.

Up-Up-Up the VA Ladder. Up-Up-Up the VA Ladder. (Gamechanging Solutions-Eyepopping Experiences-Dream Merchants-Lovemarks.)(Gamechanging Solutions-Eyepopping Experiences-Dream Merchants-Lovemarks.)

Weird. Weird. (Innovation “Easy.”)(Innovation “Easy.”)

Energy-Enthusiasm-Relentlessness.Energy-Enthusiasm-Relentlessness.

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

Words that may NOT be used in my presence: “Motivate”“Motivate” … … “Market”“Market” … “MBA” … “Plan” … “MBA” … “Plan”

(mostly)(mostly) … “Worker” … “Job” … … “Worker” … “Job” … “Task” … “Exceeds “Task” … “Exceeds

expectations” … “HR” … expectations” … “HR” … “Employee evaluation” … “Man” “Employee evaluation” … “Man”

(mostly) (mostly) …… “Shareholder Value”“Shareholder Value”

Words that MAY be used in my presence: “Invite” “Invite” (v. “Motivate”)(v. “Motivate”) … “Sell” … “Sell” (v. “Market”)(v. “Market”) … “People” … “People” (we’d like to serve) (we’d like to serve) (v. “Market segment”)(v. “Market segment”) … “Client” … “Client” (v. (v.

“Customer”)“Customer”) “OJT/MFA” “OJT/MFA” (v. “MBA”)(v. “MBA”) … “Act”/ “Execute” … “Act”/ “Execute” (v. “Plan”)(v. “Plan”) … “Talent” … “Talent” (v. “Worker”)(v. “Worker”) … …

“Quest”/“Adventure-in-EXCELLENCE” “Quest”/“Adventure-in-EXCELLENCE” (v. “Job”)(v. “Job”) … … “Wow Project” “Wow Project” (v. “Task”)(v. “Task”) … “Rockin’ (profit-makin’) … “Rockin’ (profit-makin’)

PSF” PSF” (v. “Department”)(v. “Department”) … “Theater” (v. “Office”) … … “Theater” (v. “Office”) … “Breathtaking Experience” “Breathtaking Experience” (v. “Transaction” that “Exceeds (v. “Transaction” that “Exceeds

expectations”)expectations”) … “Talent Fanatics Inc” … “Talent Fanatics Inc” (v. “HR”)(v. “HR”) … … “Brand You adventure” “Brand You adventure” (v “Career development”)(v “Career development”)

“Annual Report development session” … “Annual Report development session” … (v. (v.

“Employee evaluation”)“Employee evaluation”) … “Woman” … “Woman” (v. “Man”)(v. “Man”) … …

Words that MAY be used in my presence: … “Wow!” “Wow!” (v. “Nice”)(v. “Nice”) … “Bloody- … “Bloody-

minded” minded” (v. “Committed”)(v. “Committed”) … “Thank you! … “Thank you! (v. “____”)(v. “____”) … …

“Attack”/Innovate “Attack”/Innovate (v. “defend”/Entrench)(v. “defend”/Entrench)

… “Great stuff. Great people. ‘Do it’ … “Great stuff. Great people. ‘Do it’ fanatics.”fanatics.” (v. “shareholder value”) (v. “shareholder value”) ……

“EXCELLENCE. “EXCELLENCE. ALWAYS.”ALWAYS.” (v. “Good work”) (v. “Good work”)

(v. “shareholder value”)(v. “shareholder value”)

Radically Thrilling Language!

““Radically Radically Thrilling.”Thrilling.”

—BMW Z4 (ad)

““In-sane-In-sane-ly-great”ly-great”




Garcia

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 Soft (#Hard Is Soft (#ss))Soft Is Hard (people)Soft Is Hard (people)

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)



StyleStyle (Corporate “Culture,” “The (Corporate “Culture,” “The wayway

we do things around here”) we do things around here”)SkillsSkills (“Distinctive Competence/s)(“Distinctive Competence/s)

StaffStaff (People-Talent)(People-Talent)Super-ordinate goalSuper-ordinate goal (Vision, (Vision,

Core Values)Core Values)

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t

have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of

people is very, very hard. [Yet] [Yet] I I came to see in my time came to see in my time at IBM that culture isn’t at IBM that culture isn’t just one aspect of the just one aspect of the

game—it is the gamegame—it is the game.”.” —Lou Gerstner, Who Says Elephants Can’t Dance

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

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

**Return On Return On Investment In Investment In RelationshipsRelationships

Axiom #65:Axiom #65: (1)(1) It’s It’s alwaysalways about about

relationships.relationships. (2)(2) Sweat the small Sweat the small

stuff—and the big stuff—and the big stuff will take care stuff will take care

of itself.of itself.

““Soft Skills, Soft Skills, Hard Dollars”Hard Dollars”

Source: Headline, Source: Headline, BigBuilder,BigBuilder, September 2006 September 2006

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

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

““The Mexican Sierra has 17 plus 15 plus 9 spines in the The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the strikes on the line so that our hands are burned, if the

fish sounds and nearly escapes and finally comes in over fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a the rail, his colors pulsing and his tail beating the air, a

whole new relational externality has come into being—an whole new relational externality has come into being—an entity which is more than the sum of the fish plus the entity which is more than the sum of the fish plus the

fisherman. The only way to count the spines of the sierra fisherman. The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a unaffected by this second relational reality is to sit in a

laboratory, open an evil-smelling jar, remove a stiff laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines colorless fish from the formalin solution, count the spines

and writeand write the truth. the truth. There you have recorded a reality which There you have recorded a reality which cannot be assailed—probably the least important cannot be assailed—probably the least important

reality concerning the fish or yourself.reality concerning the fish or yourself. … It is good to … It is good to know what you are doing . The man with this pickled fish know what you are doing . The man with this pickled fish has set down one truth and recorded in his experience has set down one truth and recorded in his experience many lies. The fish is not that color, that texture, that many lies. The fish is not that color, that texture, that

dead, nor does he smell that way.” dead, nor does he smell that way.”

——John SteinbeckJohn Steinbeck


Always.Always.Respect. Respect.

““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

““The The [Union senior][Union senior] officers rode past the officers rode past the Confederates smugly without any sign Confederates smugly without any sign of recognition except by one. ‘When of recognition except by one. ‘When

General Grant reached the line of General Grant reached the line of ragged, filthy, bloody, despairing ragged, filthy, bloody, despairing

prisoners strung out on each side of prisoners strung out on each side of the bridge, he lifted his hat and held it the bridge, he lifted his hat and held it over his head until he passed the last over his head until he passed the last man of that living funeral cortege. He man of that living funeral cortege. He was the only officer in that whole train was the only officer in that whole train

who recognized us as being on the who recognized us as being on the face of the earth.’*”face of the earth.’*”

*quote within a quote from diary of a Confederate soldier

““It’s not people who It’s not people who aren’t credit-worthy. aren’t credit-worthy. It’s banks that aren’t It’s banks that aren’t

people worthy.”people worthy.”Muhammad Yunus

““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

““Don’t Don’t belittle!”belittle!”

—OD Consultant—OD Consultant

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.” —Philo of —Philo of

AlexandriaAlexandria

““Ph.D. in leadership. Short Ph.D. in leadership. Short course: Make a short list of course: Make a short list of all things done to you that all things done to you that

you abhorred. Don’t do them you abhorred. Don’t do them to others. Ever. Make to others. Ever. Make

another list of things done to another list of things done to you that you loved. Do them you that you loved. Do them to others. Always.”to others. Always.” — Dee Hock

““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

R.O.I.R.O.I.R.R. Rules! Rules!

““He had done nothing to sell me on his He had done nothing to sell me on his business, yet he had given me the most business, yet he had given me the most

powerful sales pitch of my life.powerful sales pitch of my life. Because Because his his sole sole concern had concern had been been mymy welfare and welfare and

the success of the success of mymy business.”business.”

—Jim Penman, on learning how to sell (—Jim Penman, on learning how to sell (What WillWhat Will They Franchise Next? The Story of Jim’s Group They Franchise Next? The Story of Jim’s Group))

““If you don’tIf you don’t listen,listen,

youyou don’t selldon’t sellanything.”anything.”

—Carolyn Marland/Managing Director/Guardian Group


2006.2006.

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!

Enterprise* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, ,

creativecreative, , entrepreneurialentrepreneurial endeavor that elicits endeavor that elicits maximum concerted maximum concerted human potential in human potential in the the wholehearted wholehearted serviceservice of others of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Business: The The Ultimate Ultimate CreativeCreative

Endeavor.Endeavor.

Business: The The Ultimate Ultimate Personal Personal

Development-Development-GrowthGrowth

Experience.Experience.

Business: The The Ultimate Ultimate

Transcendent Transcendent Service Service

OpportunityOpportunity..

“BUSINESS IS ABOUT

POWER.” —Joanne —Joanne

Lipman, editor, onLipman, editor, on PortfolioPortfolio

TP: “BUSINESS

IS ABOUT ...”

““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?

““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), Wanamaker’s (circa 1880) Ford (circa 1917), IBM (circa 1970), Wanamaker’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

““No leader sets out to be a No leader sets out to be a

leader per se, leader per se, but rather but rather to express him- or to express him- or

herself freelherself freelyy and full and fully.y. That is leaders have no That is leaders have no

interest in proving interest in proving themselves, but an abiding themselves, but an abiding

interest in expressing interest in expressing themselves.”themselves.” —Warren Bennis,

On Becoming a Leader

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a

way out.” “No Cloning.” way out.” “No Cloning.” “‘Reinvent the brand’ with “‘Reinvent the brand’ with each new show.” “A typical each new show.” “A typical

day at the office for me day at the office for me

begins by asking,begins by asking, ‘‘What What is impossible that I is impossible that I

am going to do am going to do todaytoday?’”?’” —Daniel Lamarre, —Daniel Lamarre,

president,president, Cirque du SoleilCirque du Soleil

““Do one Do one thing every thing every

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

—Eleanor Roosevelt


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

driver (courtesy Andrew Sullivan)

all you all you need to need to knowknow


“the rules.”“the rules.”

The “7Es”The “7Es”

Exuberance! Exuberance! Energy!Energy!

Empathy!Empathy!Engagement!Engagement!

Empowerment!Empowerment!Execution!Execution!Excellence!Excellence!

The “Vigor Axiom”:The “Vigor Axiom”:

Vigorous schools.Vigorous schools.Vigorous people. Vigorous people.

Vigorous Vigorous organizations.organizations.

Vigorous competitors.Vigorous competitors.Vigorous economy.Vigorous economy.

Vigorous nation.Vigorous nation.Vigorous world.Vigorous world.





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

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


servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership



all “wow” all the timeall “wow” all the time

Enjoy It While It LastsEnjoy It While It Lasts

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!

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

Excellence Is a Excellence Is a Universal Universal Striving.Striving.

If Not Excellence, If Not Excellence, What? What?

““ExcellenceExcellence can be obtained if you: can be obtained if you:

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


Organizations exist Organizations exist to serve. Period.to serve. Period.Leaders live toLeaders live to serve. Period.serve. Period.

Tom Peters/10 September 2007Tom Peters/10 September 2007

““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.

Organizations Organizations existexist to to serveserve. Period.. Period.

Leaders Leaders live live toto serveserve. Period.. Period.

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 Passionate servant leaders, determined to create a legacy of earthshaking transformation create a legacy of earthshaking transformation in their domainin their domain (a 600SF retail space, a 4-person training (a 600SF retail space, a 4-person training department, an urban school, a rural school, a city, a nation),department, an urban school, a rural school, a city, a nation),

create/ must create/ must necessarilynecessarily create organizations create organizations which are which are no less than Cathedrals in which the no less than Cathedrals in which the full and awesome power of the Imagination and full and awesome power of the Imagination and Spirit and native Entrepreneurial flairSpirit and native Entrepreneurial flair (We are (We are allall

entrepreneurs—Muhammad Yunus)entrepreneurs—Muhammad Yunus) of diverse individualsof diverse individuals ((100%100% creative Talent—from checkout to lab, from Apple to creative Talent—from checkout to lab, from Apple to

Wegmans to Jane’s one-person accountancy in Invercargill NZ)Wegmans to Jane’s one-person accountancy in Invercargill NZ)

is unleashed in passionate pursuit of jointly is unleashed in passionate pursuit of jointly perceived soaring purposeperceived soaring purpose (= win a Nobel peace prize (= win a Nobel peace prize like Yunus, or at least do something worthy of bragging about like Yunus, or at least do something worthy of bragging about

25 years from now to your grandkids)25 years from now to your grandkids) and personal and and personal and community and client service Excellence. community and client service Excellence.


Passionate servant leaders, determined to Passionate servant leaders, determined to create a legacy of earthshaking transformation create a legacy of earthshaking transformation in their domainin their domain create/ must create/ must necessarilynecessarily create create

organizations which are … organizations which are … no less than no less than Cathedrals in which the full and Cathedrals in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and

native Entrepreneurial flairnative Entrepreneurial flair of of diverse individualsdiverse individuals is unleashedis unleashed

… In passionate pursuit of jointly perceived … In passionate pursuit of jointly perceived soaring purposesoaring purpose and personal and community and personal and community

and client service Excellence. and client service Excellence.

… … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome

power of the Imagination power of the Imagination and Spirit and native and Spirit and native

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashed in passionate unleashed in passionate pursuit of … Excellence.pursuit of … Excellence.

Such Talent unbound pursue QuestsSuch Talent unbound pursue Quests (rapidly (rapidly and relentlessly experimenting and failing and trying and relentlessly experimenting and failing and trying

again)again) which surprise and surpass and which surprise and surpass and redefine the expectations of the individual redefine the expectations of the individual and the servant leader alike. The collective and the servant leader alike. The collective “products” of these Quests offer the best “products” of these Quests offer the best chance of achieving rapid organizational chance of achieving rapid organizational

and individual adaptation to fast-and individual adaptation to fast-transforming environments, and provide transforming environments, and provide

the nutrition for continuing (and sometimes the nutrition for continuing (and sometimes dramatic) re-imaginings which re-draw the dramatic) re-imaginings which re-draw the

boundariesboundaries of industries and communities and human of industries and communities and human

achievement and the very conception ofachievement and the very conception of what is possible.what is possible.

In turn, such organizations, bent upon In turn, such organizations, bent upon excellence and re-imaginings based on excellence and re-imaginings based on

maximizing human creativity and achievement, maximizing human creativity and achievement, will will automaticallyautomatically create cadres of imaginative create cadres of imaginative and inspiring and determined servant leaders and inspiring and determined servant leaders who stick around to take the organization to who stick around to take the organization to

another level, and then another—or, equally or another level, and then another—or, equally or moremore important, leave to spread the virus of important, leave to spread the virus of Freedom-Creativity-Excellence-Transforming Freedom-Creativity-Excellence-Transforming

Purpose by pathfinding new streets, highways Purpose by pathfinding new streets, highways and alleyways which vitalize and revitalize, and alleyways which vitalize and revitalize,

through creative destruction, Entrepreneurial through creative destruction, Entrepreneurial Capitalism, which is the best hope for Capitalism, which is the best hope for maximizing collective human Freedom, maximizing collective human Freedom,

Happiness, Prosperity, Wellbeing—and, one Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth.prays, some measure of Peace on earth.

… … such organizations, bent upon such organizations, bent upon excellence and re-imaginings based excellence and re-imaginings based

on maximizing human creativity on maximizing human creativity and achievement … vitalize and and achievement … vitalize and

revitalize, through creative revitalize, through creative destruction, Entrepreneurial destruction, Entrepreneurial

Capitalism, which is the best hope Capitalism, which is the best hope for maximizing collective human for maximizing collective human Freedom, Happiness, Prosperity, Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some Wellbeing—and, one prays, some

measure of Peace on earth.measure of Peace on earth.

Clever “human resources” programsClever “human resources” programs that take into account the “new that take into account the “new

realities” concerning Gen X or Chinese realities” concerning Gen X or Chinese competition or Web 2.0 are not thecompetition or Web 2.0 are not the

basis for creating “competitive basis for creating “competitive advantage through an excellent advantage through an excellent

workforce.”workforce.” The “great secret” to The “great secret” to “people excellence” is “treat people “people excellence” is “treat people

with manifest respect and appreciation with manifest respect and appreciation and trust, and give them a chance to and trust, and give them a chance to express the best in themselves and express the best in themselves and

dramatically broaden their horizons”—dramatically broaden their horizons”—and “the rest” will take care of itself and “the rest” will take care of itself for Gen A or Gen B or Gen X or Gen for Gen A or Gen B or Gen X or Gen

BoomerBoomer..

The Dream The Dream ManagerManager —Matthew Kelly—Matthew Kelly

E.g.: “An organization can only become the-best-version-of-itself to the E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to extent that the people who drive that organization are striving to

become better-versions-of-themselves.” “A company’s purpose is to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an become the-best-version-of-itself. The question is: What is an

employee’s purpose? Most would say, ‘to help the company achieve its employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the purpose’—but they would be wrong. That is certainly part of the

employee’s role, but an employee’s primary purpose is to become the-employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it best-version-of-himself or –herself. … When a company forgets that it

exists to serve customers, it quickly goes out of business. Our exists to serve customers, it quickly goes out of business. Our

employees are our first customers, and our most important customers.”employees are our first customers, and our most important customers.”

Servant Leadership Servant Leadership —Robert Greenleaf—Robert Greenleaf

The Human Side of EnterpriseThe Human Side of Enterprise ——Douglas McGregorDouglas McGregor

The Manager’s Book of Decencies: How The Manager’s Book of Decencies: How Small gestures Build Great Companies.Small gestures Build Great Companies. ——

Steve HarrisonSteve Harrison

Hostmanship: The Art of Making People Feel Hostmanship: The Art of Making People Feel WelcomeWelcome —Jan Gunnarsson and Olle Blohm—Jan Gunnarsson and Olle Blohm

The SPEED of Trust: The One Thing that The SPEED of Trust: The One Thing that Changes Everything Changes Everything —Stephen M.R. Covey and —Stephen M.R. Covey and

Rebecca MerrillRebecca Merrill

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

The Customer Comes Second: Put Your The Customer Comes Second: Put Your People First and Watch ’em Kick Butt People First and Watch ’em Kick Butt

——Hal Rosenbluth and Diane McFerrin PetersHal Rosenbluth and Diane McFerrin Peters

"We all start out in life loving our fathers and mothers "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with husbands and children and friends and to cooperate with and show respect to all worthy individuals with whom we and show respect to all worthy individuals with whom we come in contact or have an opportunity to reach in other come in contact or have an opportunity to reach in other

ways. We must apply that to nations and to other ways. We must apply that to nations and to other businesses. businesses.

"We in IBM must not confine our thoughts just to IBM. We "We in IBM must not confine our thoughts just to IBM. We must extend our cooperation to all other businesses whether must extend our cooperation to all other businesses whether

we do business with them or not. We are one cog in the we do business with them or not. We are one cog in the industrial wheel. industrial wheel.

"Then as citizens we must extend our respect to all worthy "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome people in all nations. We are moving along in troublesome times, but the love of these various things of which I have times, but the love of these various things of which I have

spoken and of the people in whom we are interested is going spoken and of the people in whom we are interested is going to be the great force which will make us all appreciate the to be the great force which will make us all appreciate the

spiritual values which constitute the only solid foundation on spiritual values which constitute the only solid foundation on which we can build." which we can build."

——Thomas J. Watson, Sr. address to IBM Sales and Service Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, Class 525 and Customer Engineers Class 528,

IBM Country Club, Endicott, NY, October 30, 1941IBM Country Club, Endicott, NY, October 30, 1941

Wherefore The Impact Wherefore The Impact Of Superior Of Superior

Management Practice Management Practice on Increased Human on Increased Human

Welfare and the Pursuit Welfare and the Pursuit of Happiness* of Happiness*

and Excellence?and Excellence?


Wherefore The Impact Of Wherefore The Impact Of Superior Management Practice Superior Management Practice

on Increased Human Welfare and on Increased Human Welfare and

the Pursuit ofthe Pursuit of

Happiness*Happiness* and and Excellence?Excellence?

Wherefore The Impact Of Superior Wherefore The Impact Of Superior Management Practice on Increased Human Management Practice on Increased Human

Welfare and the Pursuit of Welfare and the Pursuit of

Happiness*Happiness*

and Excellence?and Excellence?

*“To Aristotle *“To Aristotle eudaimoniaeudaimonia was what the goodwas what the good life was all about. The complex Greek word is usually life was all about. The complex Greek word is usually

translated as ‘happiness,’ but Aristotle means translated as ‘happiness,’ but Aristotle means something else. Happiness to Aristotle is not a statesomething else. Happiness to Aristotle is not a state but an activity. It is not lying on a beach with a glass but an activity. It is not lying on a beach with a glass of wine and a book, nor having wanton sex with the of wine and a book, nor having wanton sex with the

person of your dreams. person of your dreams. EudaimoniaEudaimonia is better is better translated as ‘flourishing,’ or doing your best with translated as ‘flourishing,’ or doing your best with

what you are best at.” what you are best at.” —Charles Handy, —Charles Handy, Myself and More Important Myself and More Important

MattersMatters

Given that most adults work-“live” forGiven that most adults work-“live” for most of their adult life in organizationsmost of their adult life in organizations (or, as a solo practitioner, within a web(or, as a solo practitioner, within a web

of organizations) …of organizations) …Given that Effective Management is the Given that Effective Management is the

principal mechanism through whichprincipal mechanism through which Organizational Effectiveness is realized …Organizational Effectiveness is realized …Then it follows that “effective” management Then it follows that “effective” management

is the engine of human growth is the engine of human growth (micro-level) and economic well-being (micro-level) and economic well-being

(macro-level) …(macro-level) …

EXCELLENCE AND ENTREPRENEURIAL ENTERPRISEEXCELLENCE AND ENTREPRENEURIAL ENTERPRISE AND HUMAN FREEDOM AND GROWTH:AND HUMAN FREEDOM AND GROWTH:

Effective enterprise always, but today (the creative age) Effective enterprise always, but today (the creative age) more than ever, is a product of maximizing more than ever, is a product of maximizing

human freedom to create and serve.human freedom to create and serve.Organizations exist to serve. Period.Organizations exist to serve. Period.

Leaders exist to serve. Period.Leaders exist to serve. Period.Respond to customers’ desires with products and Respond to customers’ desires with products and

services and experiences (think Cirque du Soleil) that services and experiences (think Cirque du Soleil) that are “gaspworthy,” and a lot of “other issues” willare “gaspworthy,” and a lot of “other issues” will

mostly take care of themselves.mostly take care of themselves.BMW says “radically thrilling” sells cars—and I agree, BMW says “radically thrilling” sells cars—and I agree,

for the country store in Vermont as well … and for the IS for the country store in Vermont as well … and for the IS process devised by the purchasing professional in aprocess devised by the purchasing professional in a

24-person office in Omaha.24-person office in Omaha.Only in touch (MBWA—Managing By Wandering Around) Only in touch (MBWA—Managing By Wandering Around)

leaders inspire commitment from their talent.leaders inspire commitment from their talent.


Only “in love” leaders (outrageously excited byOnly “in love” leaders (outrageously excited by their product and service) inspire commitment from their product and service) inspire commitment from

their talent. their talent. Want “all this” (see above)? It’s the people, stupid!Want “all this” (see above)? It’s the people, stupid!

Maximum human freedom and betterment and growth is Maximum human freedom and betterment and growth is achieved under conditions of free markets and free achieved under conditions of free markets and free

people, governed by law and acknowledging the sanctity people, governed by law and acknowledging the sanctity of contracts (Hayek), which are in turn the product of of contracts (Hayek), which are in turn the product of

education and infrastructure which maximizes the education and infrastructure which maximizes the likelihood of and support for entrepreneurial people and likelihood of and support for entrepreneurial people and

entrepreneurial organizations. entrepreneurial organizations. Entrepreneurs with the freedom and support to startEntrepreneurs with the freedom and support to start and nurture new businesses are the cornerstone ofand nurture new businesses are the cornerstone of the economy. (Said entrepreneurs replace, like cell the economy. (Said entrepreneurs replace, like cell replacement, the current ruling firms—or at the very replacement, the current ruling firms—or at the very

least wake those firms up to the possibility of rebirth.)least wake those firms up to the possibility of rebirth.)


Entrepreneurs withEntrepreneurs withIndividual Independence of Individual Independence of

Mind/Entrepreneurial Spirit = “Brand You” Mind/Entrepreneurial Spirit = “Brand You” = Maximized organizational and social = Maximized organizational and social

effectiveness.effectiveness.Education that unleashes human creativity Education that unleashes human creativity and the entrepreneurial instinct maximizes and the entrepreneurial instinct maximizes

longterm economic growth and realized longterm economic growth and realized human potential.human potential.


Free Markets maximize Entrepreneurial Opportunities Free Markets maximize Entrepreneurial Opportunities which in turn Maximize Growth.which in turn Maximize Growth.

Progress, as commonly defined and through an Progress, as commonly defined and through an American lens: Declaration of Independence (all equal, American lens: Declaration of Independence (all equal, pursuit of happiness); Bill of Rights (e.g., free speech); pursuit of happiness); Bill of Rights (e.g., free speech);

freedom of commerce; Entrepreneurial Opportunity; freedom of commerce; Entrepreneurial Opportunity; effective, efficient, minimalist Infrastructure effective, efficient, minimalist Infrastructure

(transportation, financial stability, available financing, (transportation, financial stability, available financing, access to financing, transparency); laws > men; access to financing, transparency); laws > men;

enforceability of contracts = FREEDOM TO SUCCEED.enforceability of contracts = FREEDOM TO SUCCEED.““Agile organizations” win—in markets and in wars. Agile organizations” win—in markets and in wars.

Agile organizations are the product of people who are Agile organizations are the product of people who are committed and have the freedom to act and create—committed and have the freedom to act and create—

from the checkout to the lab.from the checkout to the lab.The new tech-tools offer astounding “power to the The new tech-tools offer astounding “power to the people”—this is a wonderful expansion of human people”—this is a wonderful expansion of human

freedom and an incredible opportunity for freedom and an incredible opportunity for organizations that become fullscale players in the New organizations that become fullscale players in the New

Regime.Regime.


The new tech-tools offer astounding “power to The new tech-tools offer astounding “power to the people”—this is a wonderful expansion of the people”—this is a wonderful expansion of human freedom and an incredible opportunity human freedom and an incredible opportunity

for organizations that become fullscale for organizations that become fullscale players in the New Regime.players in the New Regime.

Cherish the mid-size organizations—they add Cherish the mid-size organizations—they add incredible value directly and as a spur to incredible value directly and as a spur to

others. (Think Germany’s Mittelstand—the others. (Think Germany’s Mittelstand—the basis for that nations global leadership as an basis for that nations global leadership as an

exporter despite high wages and exporter despite high wages and encompassing social benefits.)encompassing social benefits.)


Good service Good service ++ Good product Good product ++ Good Good people people ++ Good Citizenship Good Citizenship ++ Room to Room to

Experiment and Fail and Grow Experiment and Fail and Grow ++ Commitment to Excellence Commitment to Excellence = = Maximum Maximum Profit Profit ++ Economic Growth Economic Growth ++ Realized Realized

Human Potential.Human Potential.

Bureaucracy kills initiative kills Bureaucracy kills initiative kills entrepreneurship kills productivity kills entrepreneurship kills productivity kills businesses kills economies kills people businesses kills economies kills people

kills nations.kills nations.Dull schools make for dull people make Dull schools make for dull people make

for dull businesses make for dull for dull businesses make for dull economies make for dull (and economies make for dull (and

impoverished) nations.impoverished) nations.


Good service Good service ++ Good product Good product ++ Good people Good people ++ Good Good Citizenship Citizenship ++ Room to Room to

Experiment and Fail and Experiment and Fail and Grow Grow + + Commitment to Commitment to

Excellence Excellence == Maximum Profit Maximum Profit ++ Economic Growth Economic Growth ++

Realized Realized Human Potential.Human Potential.


Decency (relative to all constituencies) isDecency (relative to all constituencies) is the Bedrock of Enterprise Effectivenessthe Bedrock of Enterprise Effectiveness

and Growth.and Growth.Only the full utilization of everyone’s talent Only the full utilization of everyone’s talent enables constant re-imagining. (We call this enables constant re-imagining. (We call this “diversity,” and claim it is “the right thing.” “diversity,” and claim it is “the right thing.”

True, but research shows that diversity True, but research shows that diversity alone alone breeds creative activity.)breeds creative activity.)

Women are “the majority”—the pursuit of Women are “the majority”—the pursuit of Excellence is to a significant degree a matter Excellence is to a significant degree a matter

of appreciating women’s increasingly of appreciating women’s increasingly dominating dominating position in the worldposition in the world

economy—from finance London-style to economy—from finance London-style to micro-lending Yunus-style.micro-lending Yunus-style.

The “Freedom side of the coin”:The “Freedom side of the coin”:

Freedom.Freedom.Choice.Choice.Liberty.Liberty.

Creativity.Creativity.EntrepreneurshipEntrepreneurship

..Health.Health.Wealth.Wealth.

TrustTrust

Trust (1 of 2)Trust (1 of 2)

““The [Union senior] officers rode past the Confederates smugly The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. When General Grant without any sign of recognition except by one. When General Grant

reached the line of ragged, filthy, bloody, despairing prisoners reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral over his head until he passed the last man of that living funeral

cortege. He was the only officer in that whole train who recognized cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.”us as being on the face of the earth.” — —GrantGrant, Jean Edward Smith, Jean Edward Smith

““It was much later that I realized Dad’s secret. He gained respect by It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a Valley who shined shoes the same way he talked and listened to a

bishop or a college president. He was seriously interested in who you bishop or a college president. He was seriously interested in who you were and what you had to say.” were and what you had to say.” —Sara Lawrence-Lightfoot, —Sara Lawrence-Lightfoot, RespectRespect

““I wasn’t bowled over by [David Boies] intelligence. … What I wasn’t bowled over by [David Boies] intelligence. … What impressed me was that when he asked a question, he waited for an impressed me was that when he asked a question, he waited for an answer. He not only listened, he made me feel like I was the only answer. He not only listened, he made me feel like I was the only

person in the room.” person in the room.” —Lawyer Kevin _____, on his first, inadvertent —Lawyer Kevin _____, on his first, inadvertent meeting with David Boies, from Marshall Goldsmith, “The One Skill meeting with David Boies, from Marshall Goldsmith, “The One Skill

That Separates,” That Separates,” Fast CompanyFast Company

Trust (2 of 2)Trust (2 of 2)

““Either love your players or get out of coaching.” Either love your players or get out of coaching.” —Bobby —Bobby Dodd, legendary football coachDodd, legendary football coach (Vince Lombardi reportedly (Vince Lombardi reportedly

said, “I do not need to like my players, but I must love said, “I do not need to like my players, but I must love them.” Couldn’t confirm those exact words from Google, but them.” Couldn’t confirm those exact words from Google, but did find many examples of Lombardi on loving one’s players.)did find many examples of Lombardi on loving one’s players.)

““I have always believed that the purpose of the corporation I have always believed that the purpose of the corporation is to be a blessing to the employees.” is to be a blessing to the employees.” —Boyd Clarke—Boyd Clarke

““The deepest human need is the need to be appreciated.”The deepest human need is the need to be appreciated.”——William JamesWilliam James

““We behaved as if we were guests in their house. We treated We behaved as if we were guests in their house. We treated them not as a defeated people, but as allies. Our success them not as a defeated people, but as allies. Our success

became their success.” became their success.” —“How One Soldier Brought —“How One Soldier Brought Democracy to Iraq: The Mayor of Ar Rutbah” (MAJ James Democracy to Iraq: The Mayor of Ar Rutbah” (MAJ James

Gavrilis/USA Special Forces)Gavrilis/USA Special Forces)

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

concerned and how things can be arranged to help that concerned and how things can be arranged to help that individual experience success.” individual experience success.” —Marcus Buckingham, —Marcus Buckingham, The The

One Thing You Need to KnowOne Thing You Need to Know

The CaseThe Case for for InternalInternal

Focus: Focus: “Brand “Brand inside”inside” Rules! Rules!


An “organization”An “organization” is, in fact, a/the “house” in which most of us is, in fact, a/the “house” in which most of us

“live” most of the time.“live” most of the time.

I have been among those leading the charge, for over a quarter I have been among those leading the charge, for over a quarter century, to reduce corporate myopia by emphasizing external focuscentury, to reduce corporate myopia by emphasizing external focus

—e.g., on the customer and the market. I wouldn’t revise a word. —e.g., on the customer and the market. I wouldn’t revise a word. Still, an ancient incident sticks in my mind.Still, an ancient incident sticks in my mind.

I did a video of case studies in Excellence in the mid-1980s. A I did a video of case studies in Excellence in the mid-1980s. A couple of pieces focused on customer service, and a couple couple of pieces focused on customer service, and a couple

emphasized superb “people programs.” The distributor, out to emphasized superb “people programs.” The distributor, out to make a buck (not all bad), would customize the film, editing out a make a buck (not all bad), would customize the film, editing out a

case or two, upon request. There were, no surprise, few such case or two, upon request. There were, no surprise, few such requests. But one does stick in my mind, and since I heard aboutrequests. But one does stick in my mind, and since I heard about it second hand I will not confirm the corporation by name. I will it second hand I will not confirm the corporation by name. I will

report that it was a major, at the time, airline. The company ordered report that it was a major, at the time, airline. The company ordered a ton of our films—bravo! But … they kept all the “customer a ton of our films—bravo! But … they kept all the “customer

service stuff,” and insisted that we excise all the “people stuff.”* service stuff,” and insisted that we excise all the “people stuff.”* (*The airline is now defunct—not by takeover but by bankruptcy(*The airline is now defunct—not by takeover but by bankruptcy

and disappearance.) and disappearance.)

All of which is to say the obvious: All of which is to say the obvious: There is no great “external There is no great “external focus” unless the bedrock great “internal focus” is in focus” unless the bedrock great “internal focus” is in

place.place. This “obvious” issue reared its head recently … This “obvious” issue reared its head recently …

Isn’t:Isn’t: A A (externally focused) (externally focused) “War for Talent“War for Talent “competing” “against” others “competing” “against” others for the same people for the same people

Is:Is: A competition “against” myselfA competition “against” myself to create the most amazing to create the most amazing workplace imaginable workplace imaginable (see IBP)(see IBP) and define “different” kinds and define “different” kinds of people we’d love to have of people we’d love to have aboard aboard (e.g., Anita R, Planetree)(e.g., Anita R, Planetree)

Fact is, and I’m not happy about this, I got into a bit of a verbal tussle with my client over Fact is, and I’m not happy about this, I got into a bit of a verbal tussle with my client over some “word issues.” It was a meeting of HR execs, and the topic was the, yes, the “war some “word issues.” It was a meeting of HR execs, and the topic was the, yes, the “war

for talent.” Now I’ve used the term—and God only knows I believe that in this age of for talent.” Now I’ve used the term—and God only knows I believe that in this age of “intellectual capital” top talent is arguably more important than ever. (Whoops, I actually “intellectual capital” top talent is arguably more important than ever. (Whoops, I actually think that’s 86% bullshit; top talent has always been the difference—e.g., the quality of think that’s 86% bullshit; top talent has always been the difference—e.g., the quality of

the sea captains in the Royal (British) Navy, circa 18the sea captains in the Royal (British) Navy, circa 18thth and 19 and 19thth century, century, comes quickly to mind.) But I digress. The point is that the discussion at the meetingcomes quickly to mind.) But I digress. The point is that the discussion at the meeting

in question was warfare-ish to a significant degree—how to quickly nab the best in question was warfare-ish to a significant degree—how to quickly nab the best people, etc. I doubtless exaggerate, but to stick with the ancient Navy theme, it waspeople, etc. I doubtless exaggerate, but to stick with the ancient Navy theme, it was like building tools to create the best Press Gangs for “recruiting” sailors from the like building tools to create the best Press Gangs for “recruiting” sailors from the

pubs of Liverpool in 1790. pubs of Liverpool in 1790.

Well, I think that’s all (98%) wrong. As I write in the slide, I contend that the bedrock of Well, I think that’s all (98%) wrong. As I write in the slide, I contend that the bedrock of finding and keeping and co-creating with great folks is not about clever tools to induce finding and keeping and co-creating with great folks is not about clever tools to induce prospective “thems” to “shop [live] with us,” but a 99% prospective “thems” to “shop [live] with us,” but a 99% internal internal effort to create such an effort to create such an exciting, spirited, entrepreneurial, diverse, humane “professional home” that people will exciting, spirited, entrepreneurial, diverse, humane “professional home” that people will

be lining up by the gazillions (physically or electronically) to try and get a chance to be lining up by the gazillions (physically or electronically) to try and get a chance to come and live in our house and become what they’d never imagined they could become!come and live in our house and become what they’d never imagined they could become!

I.e., it’s not an externally directed “war to snatch talent from the other guy” by being I.e., it’s not an externally directed “war to snatch talent from the other guy” by being more aggressive than the competition—but an internally directed competition against more aggressive than the competition—but an internally directed competition against

ourselves (and our outrageously strong beliefs about people) in which we aim to create ourselves (and our outrageously strong beliefs about people) in which we aim to create an unimaginably attractive workplace. Think Apple, BMW, Cirque du Soleil, Wegmans. an unimaginably attractive workplace. Think Apple, BMW, Cirque du Soleil, Wegmans.

And back to the Royal Navy, the Brits built a model of Excellence that had no parallels in And back to the Royal Navy, the Brits built a model of Excellence that had no parallels in its sphere in human history—it was a model about what could be that had never been its sphere in human history—it was a model about what could be that had never been

before, and it was “the other guys” who were forced into the externally aimed before, and it was “the other guys” who were forced into the externally aimed “competitive,” inferior, reactive, copyist mode. “competitive,” inferior, reactive, copyist mode.

What’s your company’s …What’s your company’s … EVPEVP//IBPIBP?*?*

**EEmployee mployee VValue alue PPropositionroposition ((Ed Michaels et Ed Michaels et

al., McKinsey);al., McKinsey); IBP/IBP/IInternal nternal BBrand rand PPromise romise (TP)(TP)

EVP/IBPEVP/IBP = = Remarkable Remarkable challenge, rapid professional challenge, rapid professional growth, respect, satisfaction, growth, respect, satisfaction,

fun, stunning opportunity, fun, stunning opportunity, exceptional reward, amazing exceptional reward, amazing

peer group, full membership in peer group, full membership in Club Adventure, maximized Club Adventure, maximized

future employabilityfuture employability

Source: Ed Michaels,Source: Ed Michaels, TPTP

To translate this point into practice, for better or for worse, a few To translate this point into practice, for better or for worse, a few years ago I started talking about what I called years ago I started talking about what I called “BRAND INSIDE.”“BRAND INSIDE.” The idea is simple (to articulate): To make money (or serve any The idea is simple (to articulate): To make money (or serve any

constituency) one needs an external “brand perception” (we constituency) one needs an external “brand perception” (we overuse the word today—but the idea is unassailable and it is overuse the word today—but the idea is unassailable and it is

based as much on “perception” as on “substance”); to create and based as much on “perception” as on “substance”); to create and maintain said external excellence (Brand maintain said external excellence (Brand OutsideOutside) one needs, and ) one needs, and needs needs before the factbefore the fact, excellent & distinct innards—enter “the way , excellent & distinct innards—enter “the way we do things around here” (circa 1970), “corporate culture” (circa we do things around here” (circa 1970), “corporate culture” (circa

1980) and, I now propose, “Brand Inside” (circa 2000). 1980) and, I now propose, “Brand Inside” (circa 2000).

My old McKinsey pal, Ed Michaels, spent five years on the topic of My old McKinsey pal, Ed Michaels, spent five years on the topic of attracting the best Talent and part of it was what he called the attracting the best Talent and part of it was what he called the

EVP/Employee Value Proposition. I am 100% happy with that idea, EVP/Employee Value Proposition. I am 100% happy with that idea, but chose to add a carbon copy alternative that picked up on my but chose to add a carbon copy alternative that picked up on my

Brand Inside idea—I called Ed’s thing IBP/Internal Brand Promise. Brand Inside idea—I called Ed’s thing IBP/Internal Brand Promise. Between the two of us, you’ll see a list of the sorts of elements that Between the two of us, you’ll see a list of the sorts of elements that

might constitute a robust EVP-IBP.might constitute a robust EVP-IBP.

““If I could have chosen not to tackle the IBM If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My culture head-on, I probably wouldn’t have. My

bias coming in was toward strategy, analysis and bias coming in was toward strategy, analysis and measurement. In comparison, changing the measurement. In comparison, changing the

attitude and behaviors of hundreds of thousands attitude and behaviors of hundreds of thousands

of people is very, very hard.of people is very, very hard. [Yet] I [Yet] I came to see in my time came to see in my time at IBM that culture isn’t at IBM that culture isn’t just one aspect of the just one aspect of the

game—it game—it isis the game.” the game.” ——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

Lou Gerstner and I overlapped a bit at McKinsey. (He was very Lou Gerstner and I overlapped a bit at McKinsey. (He was very senior, about to leave to run most of American Express; I was senior, about to leave to run most of American Express; I was

junior, working on the amorphous thing that became In Search of junior, working on the amorphous thing that became In Search of Excellence). He was not my friend! He was the Prime Mover of the Excellence). He was not my friend! He was the Prime Mover of the “strategy-is-everything” crowd—and I was the kid who didn’t buy “strategy-is-everything” crowd—and I was the kid who didn’t buy

the act. And he, vociferously, didn’t buy my act.the act. And he, vociferously, didn’t buy my act.

Lou went on to transform IBM, the most extraordinary BigCo Lou went on to transform IBM, the most extraordinary BigCo transformation I’ve witnessed—much more profound than Jack transformation I’ve witnessed—much more profound than Jack

Welch’s parallel act at GE. As the prior slide suggests, in his Welch’s parallel act at GE. As the prior slide suggests, in his autobiography no less, he apparently came to see the importance autobiography no less, he apparently came to see the importance

of “the Brand Inside stuff.” I’m not boasting, though I am chortling. of “the Brand Inside stuff.” I’m not boasting, though I am chortling. Hey, he’s the guy with the billion$$$ bank account and I’m not—Hey, he’s the guy with the billion$$$ bank account and I’m not—though I do handily out-Google him, which along with $5 will get though I do handily out-Google him, which along with $5 will get

you a “venti” ice coffee at S’bucks.you a “venti” ice coffee at S’bucks.

Brand Inside rules!Brand Inside rules!

Brand Inside: Core Mechanism:

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

Big Idea/“Meta”-Idea/Premier “EngineBig Idea/“Meta”-Idea/Premier “Engine of Century21 Value Added” of Century21 Value Added”

(1) (1) The TalentThe Talent: “Best Roster” of Entrepreneurial-: “Best Roster” of Entrepreneurial-minded minded Brand Yous.Brand Yous.

(2) (2) The (Virtual) OrganizationThe (Virtual) Organization: Internal or : Internal or External External “PSF”/Professional Service Firm“PSF”/Professional Service Firm

working with “Best Anywhere” = Engine of working with “Best Anywhere” = Engine of Value Added through the Application of Creative Value Added through the Application of Creative

“Intellectual Capital”“Intellectual Capital”

(3) (3) The Work ProductThe Work Product: “Game Changer”/ : “Game Changer”/ “Gaspworthy” “Gaspworthy” WOW ProjectsWOW Projects

PSFPSF (Professional Service Firm) + BYBY (Brand You) + WPWP (WOW Projects) +

DDDD (Dramatic Difference)

+ EE (Excellence) = UVAUVA (Unassailable

Value-Added)

I’ve in fact written tens of thousands of words on the Brand Inside I’ve in fact written tens of thousands of words on the Brand Inside topic (including a 3-book set in 1999), but the nub of it is the topic (including a 3-book set in 1999), but the nub of it is the

structural idea that the innards of the Firm that exploits intellectual structural idea that the innards of the Firm that exploits intellectual capital is independent-minded people capital is independent-minded people (Brand You/s)(Brand You/s), ,

extraordinary work product extraordinary work product (Wow Projects)(Wow Projects) and a “professional” and a “professional” structure which harnesses said intellectual capital structure which harnesses said intellectual capital (the (the

“PSF”/Professional Service Firm)“PSF”/Professional Service Firm).. The prior few slides are The prior few slides are the barest of a bare-bones summary. the barest of a bare-bones summary.

The Customer The Customer Comes Second: Comes Second: Put Your People Put Your People First and Watch First and Watch ’em Kick Butt’em Kick Butt —Hal —Hal

Rosenbluth andRosenbluth and Diane McFerrin Peters* (*no relation)Diane McFerrin Peters* (*no relation)

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

The Dream The Dream ManagerManager —Matthew Kelly—Matthew Kelly

E.g.: “An organization can only become the-best-version-of-itself to the E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to extent that the people who drive that organization are striving to

become better-versions-of-themselves.” “A company’s purpose is to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an become the-best-version-of-itself. The question is: What is an

employee’s purpose? Most would say, ‘to help the company achieve its employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the purpose’—but they would be wrong. That is certainly part of the

employee’s role, but an employee’s primary purpose is to become the-employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it best-version-of-himself or –herself. … When a company forgets that it

exists to serve customers, it quickly goes out of business. Our exists to serve customers, it quickly goes out of business. Our

employees are our first customers, and our most important customers.”employees are our first customers, and our most important customers.”

Organizing GeniusOrganizing Genius / Warren Bennis / Warren Bennis and Patricia Ward Biederman and Patricia Ward Biederman

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

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

“The best thing a leader can do for a “The best thing a leader can do for a

Great Group is to Great Group is to allow its allow its members to discover their members to discover their

ggreatnessreatness.”.”

Leaders’ “Mt Everest Test”Leaders’ “Mt Everest Test”

“free to do his or her “free to do his or her absolute best” …absolute best” …

“allow its members “allow its members to discover their to discover their

greatness.”greatness.”

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!

Hal Rosenbluth took a small family-run travel agency and turned it into a Hal Rosenbluth took a small family-run travel agency and turned it into a progressive, multi-billion giant, which he recently sold to Americanprogressive, multi-billion giant, which he recently sold to American

Express. The title of his book about Rosenbluth International, Express. The title of his book about Rosenbluth International, The Customer The Customer Comes SecondComes Second, reveals a/the key to his extraordinary success. , reveals a/the key to his extraordinary success.

Likewise Dave Lineger successfully (!!!) re-invented real estate practice with Likewise Dave Lineger successfully (!!!) re-invented real estate practice with RE/MAX. The (novel) idea was to free the individual agent’s entrepreneurial RE/MAX. The (novel) idea was to free the individual agent’s entrepreneurial

spirit—to turn her or him into a spirit—to turn her or him into a “life success.”“life success.” Lineger was clear, like Hal, that Lineger was clear, like Hal, that the home buyer came second—and would only truly come first if the agent was the home buyer came second—and would only truly come first if the agent was

“more first” (my ugly term, not Dave’s). “more first” (my ugly term, not Dave’s).

Matthew Kelly’s wonderful Matthew Kelly’s wonderful Dream ManagerDream Manager “simply” argues that we all have “simply” argues that we all have dreams; and that the role of the company’s leadership is to help people to dreams; and that the role of the company’s leadership is to help people to achieve those dreams—whether they are company related dreams or not, achieve those dreams—whether they are company related dreams or not,

people chasing dreams will be more engaged and self-motivated on the from people chasing dreams will be more engaged and self-motivated on the from the janitorial staff to the lab bench.the janitorial staff to the lab bench.

Warren Bennis and Patricia ward Biederman, with Warren Bennis and Patricia ward Biederman, with “free to do his or her absolute “free to do his or her absolute best,”best,” capture the same (BIG) idea in their book about what they call Great capture the same (BIG) idea in their book about what they call Great

Groups —groups that have literally changed the world. Groups —groups that have literally changed the world.

And my halting effort on the slide immediately preceding this one is extracted And my halting effort on the slide immediately preceding this one is extracted from my “Leadership 50” list—it is in fact principle #1, Leaders from my “Leadership 50” list—it is in fact principle #1, Leaders “engage in a “engage in a mutual discovery process.”mutual discovery process.” (The title of the slide, not so incidentally, asserts (The title of the slide, not so incidentally, asserts that leaders do that leaders do notnot “transform” people—I’m wild eyed on this, as I suspect “transform” people—I’m wild eyed on this, as I suspect

Matthew Kelly would be; to the extent that they do, people transform Matthew Kelly would be; to the extent that they do, people transform themselvesthemselves—the leader is importantly but merely a spur.—the leader is importantly but merely a spur.

All of theses case are clearcut examples of “Brand Inside first”! All of theses case are clearcut examples of “Brand Inside first”!

Little shop in LAX:Little shop in LAX: They They felt they knew her felt they knew her

personallypersonally

The Manager’s Book of The Manager’s Book of Decencies: How Small gestures Decencies: How Small gestures Build Great CompaniesBuild Great Companies —Steve Harrison, Adecco

Servant LeadershipServant Leadership —Robert Greenleaf

One: The Art and Practice of One: The Art and Practice of Conscious LeadershipConscious Leadership —Lance Secretan, founder of Manpower, Inc. (“What would happen if we (“What would happen if we

looked at a customer and saw the face of God in them?”)looked at a customer and saw the face of God in them?”)

““What would happen if we looked at a What would happen if we looked at a customer and saw the face of God in customer and saw the face of God in

them? To most people it sounds like a them? To most people it sounds like a lofty idea. But if you see the face of lofty idea. But if you see the face of

God in a flower, why wouldn’t you see God in a flower, why wouldn’t you see it in the face of a customer? If we it in the face of a customer? If we

treated customers and honored the treated customers and honored the God within them—if we loved them—God within them—if we loved them—

we would not need a ‘quality we would not need a ‘quality program.’”program.’” —Lance Secretan, founder of Manpower, Inc., and most

recently author of One: The Art and Practice of Conscious Leadership

Shortly after Shortly after Anita Roddick’sAnita Roddick’s (Body Shop) tragic death at age 64, I was (Body Shop) tragic death at age 64, I was in a Body Shop at LAX. Anita had visited briefly some few years in a Body Shop at LAX. Anita had visited briefly some few years

before. When I expressed my sorrow to the employee, I half expected before. When I expressed my sorrow to the employee, I half expected the young-ish woman to ask, “Who’s Anita Roddick?” I should have the young-ish woman to ask, “Who’s Anita Roddick?” I should have known better. Though her personal contact with AR had lasted but known better. Though her personal contact with AR had lasted but seconds or, at most, a couple of minutes, she responded as if Anita seconds or, at most, a couple of minutes, she responded as if Anita

were an intimate best pal. Anita was exactly that human—she had that were an intimate best pal. Anita was exactly that human—she had that effect on me. (I’m not boasting—it’s just that I miss my friend, who effect on me. (I’m not boasting—it’s just that I miss my friend, who

passed away less than a week before I wrote this.) That, I contend is passed away less than a week before I wrote this.) That, I contend is another classic “Brand Inside first” story!another classic “Brand Inside first” story!

As to the three books listed on the next slide—Wow! Each is a classic, As to the three books listed on the next slide—Wow! Each is a classic, classic in the making, about workplaces that honor what is deeply classic in the making, about workplaces that honor what is deeply human in our “workers.” “Decencies” and “servant” (leader) are human in our “workers.” “Decencies” and “servant” (leader) are

powerful, nay, transforming, concepts. powerful, nay, transforming, concepts.

(As for “face of God” in the customer, well that may be a little too (As for “face of God” in the customer, well that may be a little too much for some of us—e.g., me, I think—but if you treat each humanmuch for some of us—e.g., me, I think—but if you treat each human you encounter with the incredible respect they are due, that’s pretty you encounter with the incredible respect they are due, that’s pretty

much the same thing, I’d judge. It reminds me in a way, of this much the same thing, I’d judge. It reminds me in a way, of this challenging statement: “Be kind, for everyone you meet is fightingchallenging statement: “Be kind, for everyone you meet is fighting

a great battle.”a great battle.” —Philo of Alexandria) —Philo of Alexandria)

An “organization”An “organization” is, in fact, a/the is, in fact, a/the “house” in which “house” in which most of us “live” most of us “live” most of the time.most of the time.

I believe this.I believe this.

10%:10%: Recruiting skills Recruiting skills

90%:90%: attractive (literally) attractive (literally) “culture” “culture”

No:No: “Outwit” your “Outwit” your competitors competitors

Yes:Yes: a “Culture”- a “Culture”- Infrastructure that Infrastructure that is unique (JG) is unique (JG)




Garcia

““If you don’t If you don’t like change, like change,

you’re going to you’re going to like irrelevance like irrelevance even less.”even less.” —General Eric —General Eric

Shinseki, retired Chief of Staff. U. S. ArmyShinseki, retired Chief of Staff. U. S. Army

It’s not about clever recruiting devices (though I’m in favor of It’s not about clever recruiting devices (though I’m in favor of them as “aids.”). And business in general is not about them as “aids.”). And business in general is not about

“outwitting” the competitor—that is a temporary state at best. “outwitting” the competitor—that is a temporary state at best. Success with Market #1 (our people) and Market #2 (customers) Success with Market #1 (our people) and Market #2 (customers)

is a function of our culture-aspirations of Excellence. is a function of our culture-aspirations of Excellence.

TP:TP: I I “benchmark” “benchmark”

against against myself!*myself!*

*I don’t compete with *I don’t compete with GEN Powell, I compete with me!GEN Powell, I compete with me!

““Parcells thought that Taylor’s size and speed were Parcells thought that Taylor’s size and speed were closer to the beginning than the end of the explanation. closer to the beginning than the end of the explanation. [The difference was] Taylor’s peculiar energy and mind: [The difference was] Taylor’s peculiar energy and mind: relentless, manic, with grandiose ambitions and private relentless, manic, with grandiose ambitions and private standards of performance. Parcells believed that even in standards of performance. Parcells believed that even in

the NFL a lot of players were more concerned with the NFL a lot of players were more concerned with seeming to want to win than with actual winning, and seeming to want to win than with actual winning, and that many of them did not know the difference. What that many of them did not know the difference. What

they wanted, deep down, was to keep their jobs, make they wanted, deep down, was to keep their jobs, make their money, and go home. Lawrence Taylor wanted to their money, and go home. Lawrence Taylor wanted to

win. win. He expected more of himself He expected more of himself on the field than any coach on the field than any coach

would dare to ask of any would dare to ask of any playerplayer.”.” —Michael Lewis—Michael Lewis, The Blind Side, The Blind Side

Not a “do gooder,” but a fierce Not a “do gooder,” but a fierce competitor who lives by the Robert competitor who lives by the Robert

Francis Kennedy dogma,Francis Kennedy dogma, "Some "Some men see things as men see things as

they are and say why. they are and say why. I dream things that I dream things that never were and say never were and say

why not."why not."

George W. Bush effectively discards General Powell inGeorge W. Bush effectively discards General Powell in 2004. Suddenly I have a formidable new competitor on the2004. Suddenly I have a formidable new competitor on the

speaking circuit.speaking circuit.

Wrong.Wrong.

Lucky me: My speakers’ bureau has in fact just gotten much more Lucky me: My speakers’ bureau has in fact just gotten much more attractive with GEN/Secretary Powell in the portfolio. As for me, I can’t attractive with GEN/Secretary Powell in the portfolio. As for me, I can’t mimic a Secretary of State. But I can redouble my “competitive” effort; mimic a Secretary of State. But I can redouble my “competitive” effort;

I can do what I love most—compete against myself (as an actor, I can do what I love most—compete against myself (as an actor, athlete, dancer, musician or athlete, dancer, musician or Lawrence TaylorLawrence Taylor does/did) to become does/did) to become

more than I dreamed of becoming—yup, I’m one of those career Dream more than I dreamed of becoming—yup, I’m one of those career Dream Chasers—and, hackneyed as it may sound, the journey is indeed more Chasers—and, hackneyed as it may sound, the journey is indeed more

important than the arriving, which I’ll never do in any event. Sure I important than the arriving, which I’ll never do in any event. Sure I Google myself against my peers, and worry about my backlog—but to Google myself against my peers, and worry about my backlog—but to

play in the A game, and try to do the Jerry Garcia thing (“only ones play in the A game, and try to do the Jerry Garcia thing (“only ones who do what we do”) is all about brutal and exhilarating competition who do what we do”) is all about brutal and exhilarating competition

with myself. As I’ve said to many, all I have (professionally) is the with myself. As I’ve said to many, all I have (professionally) is the speech as I give it; for that hour, or eight, the speech and each speech as I give it; for that hour, or eight, the speech and each

member of an audience of 5 or 5,000 member of an audience of 5 or 5,000 areare my life! I live only to help my life! I live only to help them remember their Dreams and find a way to pursue them.them remember their Dreams and find a way to pursue them.

Brand Inside rules!!Brand Inside rules!!Wow project front and center!!Wow project front and center!!

AxiomAxiom: : We have met the enemy We have met the enemy and he is and he is us.us.

AxiomAxiom:: The adaptive capabilities The adaptive capabilities of big corporations taken as a of big corporations taken as a whole is problematic [read: whole is problematic [read: patheticpathetic].].

AntidoteAntidote: : The answer is 75% The answer is 75% internalinternal.. To sustain/win, we must To sustain/win, we must first and foremost and in first and foremost and in perpetuity beat back the forces perpetuity beat back the forces of darkness—of darkness—sizesize and and inertiainertia and and fearfear and and timiditytimidity and and over-over-complexitycomplexity..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

Forget the Forget the “external focus” “external focus”

crap. My only crap. My only serious serious

competition is competition is internal.internal.

Me.Me.

Forget the Forget the “external focus” “external focus”

crap. My only crap. My only serious serious

competition is my competition is my own conservatism.own conservatism.

Forget the Forget the “external focus” “external focus” crap. My most crap. My most

serious impediment serious impediment is my belief that I is my belief that I can “change the can “change the

culture.”culture.”

Excellence Excellence “defined”“defined”

EG:EG: An amazing performance An amazing performanceA sunrise, a bloom, a smileA sunrise, a bloom, a smile

““Thank you” (a gesture, an act of Grace)Thank you” (a gesture, an act of Grace)Extraordinary performance in an odd place (by an Extraordinary performance in an odd place (by an

“unlikely” person—EWR) (unlikely market—Jim’s Group) “unlikely” person—EWR) (unlikely market—Jim’s Group) X small (X small (Small GiantsSmall Giants))X med (Mittelstand)X med (Mittelstand)

X largeX largeSets the agendaSets the agenda

One at bat (Bobby Thompson, Kurt Gibson)One at bat (Bobby Thompson, Kurt Gibson)A career (Roger Clemens)A career (Roger Clemens)

A novel, a short story, a sentenceA novel, a short story, a sentenceAn Olympian (any)An Olympian (any)

““Loser” with a great story (Rutgers, George Mason)Loser” with a great story (Rutgers, George Mason)Stuff (any sort) that makes you go “Stuff (any sort) that makes you go “wow “/ “insanely wow “/ “insanely

great”/gaspworthy great”/gaspworthy (“The lives of others”)(“The lives of others”)

X + 6: X + 6: The The

“7E“7Ess””

Exuberance! Exuberance! Energy!Energy!

Empathy!Empathy!Engagement!Engagement!

Empowerment!Empowerment!Execution!Execution!

Excellence!Excellence!



World Knowledge ForumWorld Knowledge ForumSeoul/17 October 2007Seoul/17 October 2007


NOTE:NOTE: What follows is An 105-slide What follows is An 105-slide presentation made in Korea on 17 presentation made in Korea on 17

October 2007. It looks at October 2007. It looks at Excellence, the precariousness of Excellence, the precariousness of Excellence, and a few strategies Excellence, and a few strategies

that might stem the Great March to that might stem the Great March to Mediocrity—the presentation was Mediocrity—the presentation was delivered on the 25delivered on the 25thth birthday, to birthday, to

the day (I think),the day (I think), of of IN SEARCH OF EXCELLENCEIN SEARCH OF EXCELLENCE. .

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

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

““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)

Slides at …

tompeters.comtompeters.com

THE LOOOOONG THE LOOOOONG ODDS AGAINST ODDS AGAINST

“LASTING “LASTING EXCELLENCE.” EXCELLENCE.”


word.”word.”


Wal*Mart … Dell Wal*Mart … Dell ……

Intel … Yahoo … Intel … Yahoo … Home Depot … Home Depot …

Microsoft …Microsoft … GE … Citigroup GE … Citigroup

…… Time Warner Time Warner


3 October 2007: “Wal*Mart Era Wanes Amid Big Shifts In

Retail: Rivals Find Strategies To Defeat Low

Prices; World Has Changed”

“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

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

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

“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

““Mr. Foster and his McKinsey Mr. Foster and his McKinsey colleagues collected detailed colleagues collected detailed

performance data stretching back 40 performance data stretching back 40 years for 1,000 U.S. companies. years for 1,000 U.S. companies.

TheTheyy found that none of the found that none of the lonlongg-term survivors mana-term survivors managged ed

to outto outpperform the market. erform the market. Worse, the lonWorse, the longger companies er companies had been in the database, the had been in the database, the worse they didworse they did.”.” —Financial Times—Financial Times

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

our control:our control: EverEveryythinthingg in existence tends in existence tends to deteriorateto deteriorate.”.”

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

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.

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

THE SECRETS OF THE SECRETS OF EXCELLENCE I: EXCELLENCE I:

DECENTRALIZATION. DECENTRALIZATION.

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

your heart, or not.”

—Brian Joffe/BIDvest

Enemy Enemy #1#1

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

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

THE SECRETS OF THE SECRETS OF EXCELLENCE II: EXCELLENCE II:

CHURN. CHURN.

Q4/2006Q4/2006

+500,000+500,000


Q4/2006Q4/2006

+500,000+500,000 = ? = ?


Q4/2006Q4/2006

+500,000+500,000 = =+7,700,000+7,700,000-7,200,000-7,200,000


TheThe Mess Mess IsIs TheThe

Message! Message! Period!Period!

““The secret of fast The secret of fast progress is progress is

inefficiencinefficiencyy, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly—Kevin Kelly

““Natural selection is death. ... Natural selection is death. ...

Without huge amounts Without huge amounts of death, organisms do of death, organisms do not change over time.not change over time. ... ...

Death is the mother of Death is the mother of structure. ... It took four structure. ... It took four

billion years of death ... to billion years of death ... to invent the human mind ...”invent the human mind ...” — —

The Cobra EventThe Cobra Event

““How we feel about the evolving future tells us who we How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for are as individuals and as a civilization: Do we search for

stasis—a regulated, engineered world? stasis—a regulated, engineered world? Or do we Or do we embrace dynamism—a world of constant embrace dynamism—a world of constant

creation, discovery and competition?creation, discovery and competition? Do we Do we value stability and control? value stability and control? Or evolution and Or evolution and

learning?learning? Do we think that progress requires a central Do we think that progress requires a central blueprint? blueprint? Or do we see it as a decentralized, Or do we see it as a decentralized, evolutionary process?evolutionary process? Do we see mistakes as Do we see mistakes as

permanent disasters? permanent disasters? Or the correctable Or the correctable byproducts of experimentation?byproducts of experimentation? Do we crave Do we crave

predictability? predictability? Or relish surprise?Or relish surprise? These two poles, These two poles, stasis and dynamism, increasingly define our political, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.”intellectual and cultural landscape.” —Virginia Postrel, —Virginia Postrel,

The Future and Its EnemiesThe Future and Its Enemies

Palo Alto/30Palo Alto/30California/35California/35

*Entrepreneurial magnet*Entrepreneurial magnet*Talent in general*Talent in general*Critical mass*Critical mass*VCs (all levels)*VCs (all levels)*Immigrants-Diversity*Immigrants-Diversity*Research Universities*Research Universities*Climate-Way of life*Climate-Way of life*Attitude! *Attitude! (Everything is possible!)(Everything is possible!)

*IBM? Who cares?*IBM? Who cares?*Etc*Etc

THE SECRETS OF THE SECRETS OF EXCELLENCE III: EXCELLENCE III: THE MID-SIZED THE MID-SIZED ENTERPRISE. ENTERPRISE.

#1 Exporter?#1 Exporter?

#4 Japan#4 Japan

#4 Japan#4 Japan#3 #3 (#2/2006)(#2/2006)

USAUSA#2 #2 (#3)(#3) China China

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

#2 China#2 China

#1 #1 GermanyGermany

Reason?Reason?

Daimler?Daimler?BASF?BASF?

Siemens?Siemens?Commerzbank?Commerzbank?

Reason!!!Reason!!!

MittelstandMittelstand

GEOBRA/PlaymobilGEOBRA/PlaymobilTrumpfTrumpf

RationalRationalGoldmann ProduktionsGoldmann Produktions

Skunk Camp #1:Skunk Camp #1:American “Mittelstand” American “Mittelstand” (F500 A.W.O.L.)(F500 A.W.O.L.)

Frank Perdue/ Frank Perdue/ Perdue FarmsPerdue Farms (“It takes(“It takes a tough man to make a tender chicken.”)a tough man to make a tender chicken.”)

Tom Malone/ Tom Malone/ Milliken and CompanyMilliken and CompanyDon Burr/ Don Burr/ People ExpressPeople Express

Tom Monaghan/ Tom Monaghan/ Domino’s PizzaDomino’s PizzaStew Leonard/ Stew Leonard/ Stew Leonard’sStew Leonard’s

Hal Rosenbluth/ Hal Rosenbluth/ Rosenbluth InternationalRosenbluth International John Fisher/ John Fisher/ Bank One of ColumbusBank One of Columbus

John McConnell/ John McConnell/ Worthington IndustriesWorthington IndustriesBill and Vieve Gore/ Bill and Vieve Gore/ W.L. GoreW.L. Gore

Bob Buckman/ Bob Buckman/ Buckman LabsBuckman Labs (Bob almost(Bob almost single-handedly invented what we now callsingle-handedly invented what we now call

“ “knowledge management.”)knowledge management.”)

THE SECRETS OF THE SECRETS OF EXCELLENCE IV: EXCELLENCE IV:

MAINSTREET.MAINSTREET.(BEYOND “HIGH VISIBILITY EXPORTERS.”)(BEYOND “HIGH VISIBILITY EXPORTERS.”)

Jim’s Jim’s GroupGroup

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

Basement Basement Systems Inc.Systems Inc.

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!)(115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2007: 2007:

$62,000,000$62,000,000

**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

Small Giants: Small Giants: Companies That Companies That Choose To Be Choose To Be Great InsteadGreat Instead Of Big Of Big —by Bo Burlingham

Small Giants/Bo Burlingham

"First, I could see that, unlike most entrepreneurs, I could see that, unlike most entrepreneurs, their founders and leaders their founders and leaders had recognized the full had recognized the full range of choices they had about the type of company range of choices they had about the type of company they would createthey would create."."

"Second, the leaders had the leaders had overcome the enormous overcome the enormous pressures on successful companies to take paths they pressures on successful companies to take paths they had not chosenhad not chosen and did not necessarily want to and did not necessarily want to follow." follow."

"Third, each company had an each company had an extraordinarily intimate extraordinarily intimate relationship with the local city, town, or countyrelationship with the local city, town, or county in in which it did business -- a relationship that went well which it did business -- a relationship that went well beyond the usual concept of `giving back.'" beyond the usual concept of `giving back.'"

"Fourth, they cultivated they cultivated exceptionally intimate exceptionally intimate relationships with customers and suppliersrelationships with customers and suppliers, based on , based on personal contact, one-on-one interaction, and mutual personal contact, one-on-one interaction, and mutual commitment to delivering on promises." commitment to delivering on promises."

Small Giants/Bo Burlingham

"Fifth, the companies also had what struck me as the companies also had what struck me as unusually unusually intimate workplacesintimate workplaces." ."

"Sixth, I was impressed by the I was impressed by the variety of corporate variety of corporate structures and modes of governancestructures and modes of governance that these that these companies had come up with." companies had come up with."

"Finally, I noticed the I noticed the passionpassion that the leaders that the leaders brought to what the company did. brought to what the company did. They loved the They loved the subject mattersubject matter, whether it be music, safety lighting, , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."records storage, construction, dining, or fashion."

WallopWal*Mart16*WallopWal*Mart16*

*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16

**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Wal*Mart.)Wal*Mart.)

**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)

**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community,

our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)

**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)


**Hands-on, emotional leadership.Hands-on, emotional leadership. (“We are a great & (“We are a great & cool & intimate & joyful & dramatically different team working to cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible transform our Clients lives via Consistently Incredible Experiences!”)Experiences!”)

**A community star!A community star! (“Sell” local-ness per se. Sell the hell (“Sell” local-ness per se. Sell the hell out of it!)out of it!)

**An incredible experience, from the first to last An incredible experience, from the first to last moment—and then in the follow-up!moment—and then in the follow-up! (“These guys (“These guys are cool! They ‘get’ me! They love me!”)are cool! They ‘get’ me! They love me!”)

**DESIGN DRIVEN!DESIGN DRIVEN! (“Design” is a premier weapon-in- (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the pursuit-of-the sublime for small-ish enterprises, including the professional services.)professional services.)


**Employer of choice.Employer of choice. (A very cool, well-paid (A very cool, well-paid place to work/learning and growth experience in at place to work/learning and growth experience in at least the short term … marked by notably progressive least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)policies.) (THIS IS EMINENTLY DO-ABLE!!)

**Sophisticated use of information Sophisticated use of information technologytechnology. (Small-“ish” is no excuse for “small . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!)aims”/execution in IS/IT!)

**Web-power!Web-power! (The Web can make very small very (The Web can make very small very big … if the product-service is super-cool and one big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)purposefully masters buzz/viral marketing.)

**Innovative!Innovative! (Must keep renewing and expanding (Must keep renewing and expanding and revising and re-imagining “the promise” to and revising and re-imagining “the promise” to employees, the customer, the community.)employees, the customer, the community.)


**Brand-Lovemark* Brand-Lovemark* (*Kevin Roberts)(*Kevin Roberts) Maniacs Maniacs! ! (“Branding” is not just for big folks with big budgets. And modest (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”)niche “lovemark.”)

**Focus on women-as-clients.Focus on women-as-clients. (Most don’t. How stupid.) (Most don’t. How stupid.)

**Excellence!Excellence! (A small player … per me … (A small player … per me …

has no right or reason to exist unless they are in Relentless has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen client experience at a time!—to beat the Big Guys in your chosen niche!)niche!)

Ichiro-Ichiro-nomicsnomics

IchironomicsIchironomics““Spokane, like Minneapolis-St Paul, Spokane, like Minneapolis-St Paul,

refuses to bet the economy on one or two refuses to bet the economy on one or two industries. Rather, it practices what one industries. Rather, it practices what one city booster calls ‘Ichironomics.’ Like the city booster calls ‘Ichironomics.’ Like the

Seattle Mariners’ center fielder, Ichiro Seattle Mariners’ center fielder, Ichiro Suzuki, we try to hit singles and doubles. Suzuki, we try to hit singles and doubles. We want to improve the overall conditions We want to improve the overall conditions for small businesses, not chase the large for small businesses, not chase the large

employeremployer.’”—Rich Karlgaard, .’”—Rich Karlgaard, ForbesForbes

(NB: In 2004 Suzuki broke the all-time record for hits(NB: In 2004 Suzuki broke the all-time record for hits in a single season, with a staggering 262.)in a single season, with a staggering 262.)

(NB II: In 2007 the mayor of Lisbon reduced the amount of time to get(NB II: In 2007 the mayor of Lisbon reduced the amount of time to get a business license from weeks or months to, literally, minutes.)a business license from weeks or months to, literally, minutes.)

THE SECRETS OF THE SECRETS OF EXCELLENCE IVA: EXCELLENCE IVA:

MAINSTREET.MAINSTREET.YOU GO GIRL.YOU GO GIRL.

10.610.6

NOTE: There are over 10 NOTE: There are over 10 million women-owned million women-owned

businesses in the United businesses in the United States.States.

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” ——Margaret Heffernan, Margaret Heffernan, How She Does IT: How How She Does IT: How

Women Entrepreneurs Are Changing the Rules of Business SuccessWomen Entrepreneurs Are Changing the Rules of Business Success..

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 10.6 millionmillion ( (48%48% of all firms) of all firms)

Growth rate of Women-owned firms vs all firms:Growth rate of Women-owned firms vs all firms: 3X3X

Rate of jobs created by Women-owned firms vs all Rate of jobs created by Women-owned firms vs all firms:firms: 2X2X

Ratio of total payroll of Women-owned firms vs total Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:for Fortune500 firms: >1.0>1.0

Ratio of likelihood of Women-owned firms staying in Ratio of likelihood of Women-owned firms staying in business vs all firms:business vs all firms: >1.0>1.0

Growth rate of Women-owned companies with Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all revenues of >$1,000,000 and >100 employees vs all firms:firms: 2X2X

Source: Margaret Heffernan, How She Does It

Women-owned BizWomen-owned Biz

U.S. employees > U.S. employees > F500 employees F500 employees

worldwideworldwideSource: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

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

NOTE: Yunus is the father of NOTE: Yunus is the father of micro-lending.micro-lending. He did not set He did not set

out to provide loans to women. out to provide loans to women. But it soon became clear that But it soon became clear that men would often spend their men would often spend their loan on frivolous activities. loan on frivolous activities. Women, with their abiding Women, with their abiding

interest in family affairs, were interest in family affairs, were immediately seen as more immediately seen as more enterprising and far more enterprising and far more

reliable than men.reliable than men.

THE SECRETS OF THE SECRETS OF EXCELLENCE V: EXCELLENCE V:

UNBRIDLED UNBRIDLED IMAGINATION. IMAGINATION.

Single Single greatest act greatest act

of pure of pure imaginationimagination

24%24%

dubaidubai

““THE FUTURE BELONGS TO … THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO SMALL POPULATIONS … WHO

BUILD EMPIRES OF THE MINDBUILD EMPIRES OF THE MIND … … AND WHO IGNORE THE TEMPTATION OF—OR AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE OPTION OF—EXPLOITING DO NOT HAVE THE OPTION OF—EXPLOITING

NATURAL RESOURCES.”NATURAL RESOURCES.”

Source: Juan Enriquez/Source: Juan Enriquez/AsAs the Future Catches Youthe Future Catches You

THE SECRETS OF THE SECRETS OF EXCELLENCE VI: EXCELLENCE VI:

EDUCATION EDUCATION FOCUSED ON FOCUSED ON NURTUTING NURTUTING CREATIVITY.CREATIVITY.

““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

““It is nothing short of It is nothing short of a miracle that a miracle that

modern methods of modern methods of instruction have not instruction have not

yet entirely strangled yet entirely strangled the holy curiosity of the holy curiosity of

inquiry.”inquiry.” —Albert Einstein—Albert Einstein

““The key question isn’t ‘What fosters The key question isn’t ‘What fosters creativity?’ But it is why in God’s creativity?’ But it is why in God’s

name isn’t name isn’t evereveryyoneone creative? creative? Where Where was the human potential lost? How was the human potential lost? How was it crippled?was it crippled? I think therefore a I think therefore a

good question might be good question might be notnot why do people create? But why do why do people create? But why do people people notnot create or innovate? We create or innovate? We have got to abandon that sense of have got to abandon that sense of

amazement in theamazement in the face of creativity, as if it were a face of creativity, as if it were a

miracle if anybody created anything.”miracle if anybody created anything.” —Abe Maslow

““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

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

THE SECRETS OF THE SECRETS OF EXCELLENCE VII: EXCELLENCE VII: THE ESSENCE OF THE ESSENCE OF

ENTERPRISE.ENTERPRISE.





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)



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)


servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

THE SECRETS OF THE SECRETS OF EXCELLENCE VIII: EXCELLENCE VIII:

SERVANT SERVANT LEADERSHIP.LEADERSHIP.

““Leaders Leaders

‘‘SERVESERVE’’ people. people. Period.”Period.”

In the spirit of Robert Greenleaf, Robert Greenleaf, The Servant LeaderThe Servant Leader


Individual freedom Individual freedom ++ Creative Creative education education ++ Entrepreneurial Entrepreneurial capitalism capitalism == Good service Good service ++

Good product Good product ++ Good people Good people ++ Good Citizenship Good Citizenship ++ Room to Room to

Experiment and Fail and Grow Experiment and Fail and Grow + + Commitment to Excellence Commitment to Excellence ++ Servant leaders Servant leaders == Maximum Maximum Profit Profit ++ Economic Growth Economic Growth ++ Realized Human Potential.Realized Human Potential.

EXCELLENCE.EXCELLENCE. CIRCA 1978. CIRCA 1978.CIRCA 1982.CIRCA 1982.CIRCA 1993.CIRCA 1993.CIRCA 1996.CIRCA 1996.CIRCA 2006.CIRCA 2006.

CIRCA 2004-2007.CIRCA 2004-2007.CIRCA 2007.CIRCA 2007.

CIRCA 15 OCTOBER 2007.CIRCA 15 OCTOBER 2007.

1978.1978.

A START.A START.

Hard Is Soft (#Hard Is Soft (#ss))Soft Is Hard (people)Soft Is Hard (people)



StyleStyleSkillsSkillsStaffStaff

Super-ordinate goalSuper-ordinate goal

1982.1982.

A BOOK.A BOOK.

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”

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

1993.1993.

LOU FINDS LOU FINDS GOLD IN THE GOLD IN THE

RUBBLE.RUBBLE.

$55$55BB

1994.1994.

COOL IS COOL IS COOL.COOL.

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

1996.1996.THE THE

EDUCATION EDUCATION OF TOM.OF TOM.

““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

2006.2006.

STILL COLD STILL COLD IN MAY.IN MAY.

2004-2007.2004-2007.

INVITATIONS.INVITATIONS.

“Better By Design”: A National Strategy

NZ = DesignNZ = Design ExcellenceExcellence

““We have to move up the value We have to move up the value chain and focus increased chain and focus increased

efforts on becoming a efforts on becoming a knowledge-based, knowledge-based,

entrepreneurial economy if we entrepreneurial economy if we are to prosper in the medium are to prosper in the medium to long term.”to long term.” —Tony Dromgoole, Chief —Tony Dromgoole, Chief

Executive, Irish Management InstituteExecutive, Irish Management Institute

Taiwan, Your Taiwan, Your Partner in Partner in InnoValueInnoValue

Poster/Bucharest/03.06

2007.2007.


Passionate servant leaders, determined to Passionate servant leaders, determined to create a legacy of earthshaking transformation create a legacy of earthshaking transformation in their domainin their domain create/ must create/ must necessarilynecessarily create create

organizations which are … organizations which are … no less than no less than Cathedrals in which the full and Cathedrals in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and

native Entrepreneurial flairnative Entrepreneurial flair of of diverse individualsdiverse individuals is unleashedis unleashed

… In passionate pursuit of jointly perceived … In passionate pursuit of jointly perceived soaring purposesoaring purpose and personal and community and personal and community

and client service Excellence. and client service Excellence.

… … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome

power of the Imagination power of the Imagination and Spirit and native and Spirit and native

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashed in passionate unleashed in passionate pursuit of … Excellencepursuit of … Excellence..

16 OCTOBER 2007.16 OCTOBER 2007.

HAPPY 25.HAPPY 25.

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think 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. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

EXEXCELLE CELLE ALWALWAYSAYS..

End.End.PART PART ONEONE..

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