The The Customer Customer

Comes Comes SecondSecond

Tom Peters/0508.2008Tom Peters/0508.2008

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

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

fonts:fonts:

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

andand “Verdana”“Verdana”

The The Siberia Siberia AxiomAxiom

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

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

The CaseThe Case for … for …

“Brand “Brand Inside”Inside”

InternalInternal organizational organizational

excellenceexcellence* *** ** = = Deepest “Blue Deepest “Blue

Ocean”Ocean”

**A “Blue ocean” is by A “Blue ocean” is by definition very profitable … definition very profitable … and will be and will be quicklyquickly copiedcopied. .

““sustainablesustainable blueblue” (Internal ” (Internal organizational excellence) is organizational excellence) is

far more far more difficultdifficult to copy. to copy.

****Internal Internal organizational organizational excellence = excellence =

““BrandBrand insideinside””

B(I) > B(O)B(I) > B(O)

“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

TP Keynotes TP Keynotes the first the first “Drucker “Drucker Tribute”*Tribute”*

*Sydney, September 2007, AIM/*Sydney, September 2007, AIM/the Australian Institute of Managementthe Australian Institute of Management

Organizations Organizations existexist to to serveserve..

Period.Period.

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

Organizations Exist to Serve.Organizations Exist to Serve. Period. Period.Leaders Live to Serve.Leaders Live to Serve. Period. 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 domain in their domain (a 600SF retail space, a 4-person training department, (a 600SF retail space, a 4-person training department,

an urban school, a rural school, a city, a nation), an urban school, a rural school, a city, a nation), create/ must create/ must necessarilynecessarily create organizations which are create organizations which are no no

less than Cathedrals in which the full and less than Cathedrals in which the full and awesome power of the Imagination and Spirit awesome power of the Imagination and Spirit

and native Entrepreneurial flairand native Entrepreneurial flair (We are (We are allall entrepreneurs entrepreneurs

—Muhammad Yunus) —Muhammad Yunus) of diverse individualsof diverse individuals ((100%100% creative Talent creative Talent—from checkout to lab, from Apple to Wegmans to Jane’s one-person accountancy —from checkout to lab, from Apple to Wegmans to Jane’s one-person accountancy

in Invercargill NZ)in Invercargill NZ) is unleashed in passionate pursuit is unleashed in passionate pursuit of jointly perceived soaring purpose of jointly perceived soaring purpose (= win a Nobel (= win a Nobel peace prize like Yunus, or at least do something worthy of bragging about 25 peace prize like Yunus, or at least do something worthy of bragging about 25

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

… … no less than no less than Cathedrals in 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

unleashedunleashed in passionate 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 Capitalism, which is the best hope the best hope for maximizing collective human for maximizing collective human Freedom, Happiness, Prosperity, Freedom, Happiness, Prosperity, WellbeingWellbeing—and, one prays, some —and, one prays, some

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

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative-adventures) for initiative-adventures)

DecencyDecency (respect, grace,(respect, grace,

integrity, humane) integrity, humane)

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

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

excellenceexcellence (period) (period)

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

CauseCause (worthy of commitment)(worthy of commitment)

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

adventures) adventures)

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

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

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

excellenceexcellence (period) (period)

servant servant leadership leadership

The Boyd The Boyd Clarke Clarke

PhilosophyPhilosophy

““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 is said and done, a/the “house”*TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time.in which most of us “live” most of the time.

**The late Boyd Clarke was CEO of the Tom Peters Company at the time of his death.**The late Boyd Clarke was CEO of the Tom Peters Company at the time of his death.

Hostmanship: The Hostmanship: The Art of Making Art of Making People Feel People Feel Welcome Welcome

——Jan Gunnarsson and Olle BlohmJan Gunnarsson and Olle Blohm

““The path to a hostmanship culture paradoxically does not go The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True hostmanship that the guest has nothing to do with it. True hostmanship

leaders focus on their employees. What drives them is finding leaders focus on their employees. What drives them is finding the right people and getting them to love their work and see it the right people and getting them to love their work and see it

as a passion. … as a passion. … The guest comes into the picture The guest comes into the picture only when you are ready to ask, ‘only when you are ready to ask, ‘Would Would yyou ou pprefer to starefer to stayy at a hotel where the staff love at a hotel where the staff love their work or where manatheir work or where managgement has made ement has made

customers its hicustomers its higghest hest pprioritriority?’”y?’”

““We went through the hotel and made a ‘consideration We went through the hotel and made a ‘consideration renovation.’ Instead of redoing bathrooms, dining rooms and renovation.’ Instead of redoing bathrooms, dining rooms and

guest rooms, we gave employees new uniforms, bought guest rooms, we gave employees new uniforms, bought flowers and fruit and changed colors. Our focus was totally on flowers and fruit and changed colors. Our focus was totally on

the staff. the staff. TheTheyy were the ones we wanted to make were the ones we wanted to make hahappy. ppy. We wanted them to wake up everWe wanted them to wake up everyy morninmorningg excited about a new da excited about a new dayy at work at work.”.”

Source: Jan Gunnarsson and Olle BlohmSource: Jan Gunnarsson and Olle Blohm, , Hostmanship: The Art of Making People Feel WelcomeHostmanship: The Art of Making People Feel Welcome

The Dream The Dream ManagerManager

——Matthew KellyMatthew Kelly

??????

% of people % of people with …with …

… … DreamsDreams

The Dream ManagerThe Dream Manager —Matthew —Matthew

KellyKelly

“An organization can only become the-best-version-of-“An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that

organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-

best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the

company achieve its purpose’—but they would be wrong. company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company version-of-himself or –herself. … When a company

forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes

out of business.out of business. Our employees are our Our employees are our first customers, and our most first customers, and our most

important customers.”important customers.”

TP: TP: “How to piss away $500,000

in one easy

lesson!!”

My local 7-11 was a dump. The company My local 7-11 was a dump. The company poured perhaps a half-million dollars into a poured perhaps a half-million dollars into a

thoroughgoing renovation. They might as well thoroughgoing renovation. They might as well have pissed the $$$ down the drain. In the have pissed the $$$ down the drain. In the end, same staff, same crappy attitude—but end, same staff, same crappy attitude—but now it even stood out more in a sparkling now it even stood out more in a sparkling

facility.facility.

< CAPEX< CAPEX> People!> People!

My suggestion, on bended knee: When you My suggestion, on bended knee: When you finish your annual or project budget, go back finish your annual or project budget, go back and cut the “Capex”/Capital Expenditure by and cut the “Capex”/Capital Expenditure by

25%--and25%--and put the $$$ directly into people programs! put the $$$ directly into people programs!

(“Dream Fulfillment Budget”??)(“Dream Fulfillment Budget”??)

The Re/MaxThe Re/MaxRevolutionRevolution

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

The travel services The travel services revolution atrevolution atRosenbluth Rosenbluth

InternationalInternational

The Customer The Customer Comes Second: Put Comes Second: Put Your People First Your People First

and Watch ’Em Kick and Watch ’Em Kick ButtButt

——Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was)was)

The One The One Thing You Thing You

Need to KnowNeed to Know—Marcus Buckingham—Marcus Buckingham

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s]

first resfirst respponse is alwaonse is alwayys to s to think about the individual think about the individual concerned and how thinconcerned and how thinggs s can be arrancan be arrangged to ed to helhelpp

that individual exthat individual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

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

Bennis: Be Bennis: Be All That All That

You Can BeYou Can Be

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.”

““The leaders of Great The leaders of Great

Groups Groups lovelove talent talent and know where to find and know where to find

it. They it. They revel revel in the in the talent of others.”talent of others.”

—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing GeniusOrganizing Genius

PARC’s Bob Taylor:

“Connoisseur “Connoisseur of Talent”of Talent”

(from Warren Bennis & Patricia Ward Biederman, (from Warren Bennis & Patricia Ward Biederman, Organizing Genius)Organizing Genius)

WPP: Be All WPP: Be All That WeThat WeCan BeCan Be

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

Altman’s Altman’s Oscar: Be Oscar: Be MoreMore Than Than You-we Can You-we Can

ImagineImagine

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

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

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

QQuueessttss!!

TP: Send ’em on quests of their own design! TP: Send ’em on quests of their own design!

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

The Last Word/s: The Last Word/s: Commitment to and Commitment to and

nurturing of Personal nurturing of Personal Excellence and Excellence and

aspiration precedes aspiration precedes customer satisfactioncustomer satisfaction

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo

““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)