tom peters at international paper

NEW ZEALAND NEW ZEALAND 20072007

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

PfizerPfizerFordFordGapGap

ChryslerChryslerYahooYahoo

microsoftmicrosoftwal*martwal*mart

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

““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 responsive one most responsive to changeto change.”.” —Charles Darwin

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

anxious to win”anxious to win”

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..

The The lastlast word: word: There There

is is nono last last word.word.

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

Wal*Mart … Wal*Mart … Dell … Intel Dell … Intel

… Home … Home Depot … Depot …

Microsoft … Microsoft … GEGE

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.International Paper/Sanibel Harbour/0228.07International Paper/Sanibel Harbour/0228.07

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

Slides at …

tompeters.comtompeters.com

EXCELLENCEXCELLENC

E????E????

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

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

“Forbes100” from 1917 to 1987: 3939 members members

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

underunderpperformederformed the market; the market;

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

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

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

in ’97; 1212 (2.4%) of 500 outperformed the market from 1957 to 1997.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Welcome to the “Club of Shattered Dreams”:

Of Korea’s Top 100Top 100 companies

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

“destroyed halfhalf of Korea’s

3030 largest conglomerates.”

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

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)

EXCELLENCE. EXCELLENCE.

GAMECHANGER.GAMECHANGER.

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

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

The Peters Principles: Enthusiasm.Enthusiasm.

Emotion. Emotion. Excellence.Excellence. Energy. Energy. Excitement. Service. Growth. Excitement. Service. Growth.

Creativity. Imagination. Vitality. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Joy. Surprise. Independence. Spirit. Community. Limitless Spirit. Community. Limitless human potential. Diversity. human potential. Diversity. Profit.Profit. Innovation. Design. Innovation. Design.

Quality. Entrepreneurialism. Quality. Entrepreneurialism. Wow.Wow.

““In-sane-In-sane-ly-great”ly-great”

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


REVENUE.REVENUE.MATTERS.MATTERS.

MOST.MOST.

““Analysts … preferred cost cuttingAnalysts … preferred cost cutting, as long as they could see two or three years of EPS growth. I

preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and

earnings went to hell. They said, They said, ‘Oh my gosh, you ‘Oh my gosh, you need revenues to need revenues to

grow earnings over grow earnings over time.’ time.’

Well, Duh!Well, Duh!”” —Dick Kovacevich, Wells

Fargo

CCRRO*

*Chief Revenue Officer

. “Everyone “Everyone lives by lives by selling selling

something.”something.”

– Robert Louis Stevenson


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

““Under his former boss, Jack Welch, the skills GE prized above all Under his former boss, Jack Welch, the skills GE prized above all others were cost-cutting, efficiency and deal-making. What mattered others were cost-cutting, efficiency and deal-making. What mattered

was the continual improvement of operations, and that mindset was the continual improvement of operations, and that mindset helped the $152 billion industrial and finance behemoth become a helped the $152 billion industrial and finance behemoth become a marvel of earnings consistency. Immelt hasn’t turned his back on marvel of earnings consistency. Immelt hasn’t turned his back on

the old ways.the old ways. But in his GE, the But in his GE, the new imperatives are risk-new imperatives are risk-

taking, sophisticated taking, sophisticated marketing and, above all, marketing and, above all,

innovationinnovation.” —BW/2005

More than $$$$

#1#1 R&D

spending, last 25 years?

“I don’t believe in

economies of scale. You You don’t get better don’t get better by being bigger. by being bigger. You get worseYou get worse.”.” —

Dick Kovacevich/Wells Fargo

SpinoffsSpinoffs systematically perform better than IPOs … track

record, profits … “freed from the “freed from the confines of the parent … more confines of the parent … more entrepreneurial, more nimbleentrepreneurial, more nimble”

—Jerry Knight/ Washington Post/ 08.05

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman Sachs’

Investment Policy Committee,

answered: I’m sure there I’m sure there are success stories out are success stories out

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

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

““Not a single company that Not a single company that qualified as having made a qualified as having made a sustained transformation sustained transformation ignited its leap with a big ignited its leap with a big

acquisition or mergeracquisition or merger. Moreover, Moreover, comparison companies—those that failed to make a comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to leap or, if they did, failed to sustain it—often tried to

make themselves great with a big acquisition or make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your you can buy your way to growth, you cannot buy your

way to greatness.”way to greatness.” —Jim Collins/—Jim Collins/TimeTime/2004/2004

There’s “A”“A” and then

there’s “A.”“A.”

InnoTacsInnoTacs

We We becomebecome who we hang who we hang

out with!out with!

Innovation’s Saviors-in-Waiting

DisgruntledDisgruntled Customers CustomersOff-the-ScoOff-the-Scoppee Competitors Competitors

Rogue Rogue EmployeesEmployeesFringeFringe Suppliers Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

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

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

Employees: “Are there“Are there enouenougghh weirdweird ppeoeopplele in the lab in the lab

these days?”these days?”V. Chmn., pharmaceutical house, to a lab director

Why Do I love Freaks?

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

““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—

consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group almost always did better. … Diversity almost always did better. … Diversity

trumped ability.”trumped ability.” —Scott Page, —Scott Page, The Difference: How the Power The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversityof Diversity Creates Better Groups, Firms, Schools, and Societies Diversity

Wikinomics.Wikinomics.WikiWorld.WikiWorld.

CrowdSourcing.CrowdSourcing.

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

Companies offering Companies offering work to online work to online

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

‘crowdsourcing.’”‘crowdsourcing.’”

—Headline, —Headline, FTFT, 0110.07, 0110.07

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.

do do things.things.

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

drill.drill.

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

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

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

studying logs, but you have to drill.”

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

try try things.things.

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

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

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

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

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

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

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

BloombergBloomberg

““ExperimenExperiment t

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

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

““We groundWe ground up more pig up more pig

brains!”brains!”

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

Screw. Screw. things.things.

Up.Up.

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

David Kelley/IDEO

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

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

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

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

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

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

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

one possible answer—one possible answer—SScrew crew

AAround round VVigorouslyigorously!

““You miss You miss

100100%% of of the shots you the shots you never take.”never take.”

—Wayne—Wayne GretzkyGretzky

Speed/ Speed/ Tempo/Tempo/

is-itis-it

We We allall live in live in DellDell--Wal*Mart-Wal*Mart-

eeBayBay--Google Google World!World!

“the FedFedExEx EconomyEconomy”

—headline/New York Times/10.08.05

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

“UPS used to be a trucking

company with technology.

Now it’s Now it’s a technoloa technologygy comcomppananyy with with

truckstrucks.”.” —Forbes

Power Tools Power Tools For Power For Power StrategiesStrategies

Sysco!Sysco!

5%5% F500 have CIO F500 have CIO

on Board:on Board: “While some of the

world’s most admired companies—companies—TescoTesco, ,

Wal*MartWal*Mart —are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, competitiveness

and shareholder value.”

Source: Burson-Marsteller

ClarityClarity

JackWorld/1@T1@T: (1) Neutron Neutron

Jack.Jack. (Banish bureaucracy.) (2) “1, 2 or out” “1, 2 or out” Jack.Jack. (Lead or leave.) (3) “Workout” “Workout”

Jack.Jack. (Empowerment, GE style.) (4) 6-Sigma 6-Sigma Jack.Jack. (5) Internet Jack.Internet Jack.

(1-5/Throughout) TALENT JACK!TALENT JACK!

bet the bet the farmfarm

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make BigBig Changes

to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

No Wiggle Room!No Wiggle Room!

“Incrementalism“Incrementalism is innovation’s is innovation’s worstworst enemy.” enemy.”

Nicholas Negroponte

Conscious Conscious measurementmeasurement

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

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

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

Scale?

personalpersonal

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

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

““Do one Do one thing every thing every

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

—Eleanor Roosevelt


4/40.4/40.

4/404/40

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

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

Decentralization Decentralization vs Centralization vs Centralization

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

Federalist PapersFederalist Papers to Org.2007) to Org.2007)

““If if feels If if feels painful and painful and

scary—that’s scary—that’s realreal delegation” delegation”

—Caspian Woods, small biz owner

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

tion!tion!

““ExecutionExecution is is thethe j jobob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

GoalGoal (“Vision”) = (“Vision”) = ProjectsProjects = =

MilestonesMilestones = =

Rapid ReviewRapid Review + + Truth-tellingTruth-telling = = accountabilityaccountability

““Costco figured out Costco figured out the the bigbig, , simplesimple things things

and and executedexecuted with with total total fanaticismfanaticism.”.”

—Charles Munger, Berkshire Hathaway

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

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

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

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

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

““RealismRealism is is the heart of the heart of execution.”execution.”

—Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

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

DECENTRALIZATIODECENTRALIZATION.N.

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

Excellence: The SE22:

ORIGINS OF ORIGINS OF SUSTAINABLE SUSTAINABLE

ENTREPRENEURSHIENTREPRENEURSHIPP

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

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

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

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

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

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

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

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

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

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

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

SE22/Origins of Sustainable Entrepreneurship

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

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

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

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

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

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

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

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

SE22/Origins of Sustainable Entrepreneurship

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

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

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

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

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

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


VALUE ADDED.VALUE ADDED.UP THE LADDER.UP THE LADDER.

EXCELLENCE.EXCELLENCE.

VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

$55$55BB

““Big Brown’s New Bag: UPSBig Brown’s New Bag: UPS

Aims to Be theAims to Be the Traffic Traffic Manager for Manager for CorCorpporate orate

AmericaAmerica”” —Headline/BW/2004

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

The Value-added Ladder/ STUFF ‘N’ THINGSSTUFF ‘N’ THINGS

GoodsGoods Raw Materials Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONSTRANSACTIONS

ServicesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Gamechanging Gamechanging SolutionsSolutions

ServicesGoods

Raw Materials

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, is : “Our ‘it’ works, is delivered on time” (“Close”)delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our ‘it’ “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)can add value—a ‘useful it’ ” (“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and deliver our ‘system’ can change you and deliver

‘business advantage‘business advantage’’ ” (“Culture- ” (“Culture-Strategic change”)Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

Huge: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)


VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

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

Experience Economy: Work Is Theatre & Every Business a Stage

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

WHAT CAN BROWNWHAT CAN BROWN DO FOR YOU? DO FOR YOU?


UpUp


The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding ExperiencesExperiences

Gamechanging SolutionsServicesGoods

Raw Materials


VALUE-ADDED LADDER III.VALUE-ADDED LADDER III.

DREAM IT.DREAM IT.

DREAMDREAM:: “A dream is a A dream is a complete moment in the life complete moment in the life

of a client. Important of a client. Important experiences that tempt the experiences that tempt the client to commit substantial client to commit substantial resources. The essence of resources. The essence of

the desires of the consumer. the desires of the consumer. The opportunity to help The opportunity to help

clients become what they clients become what they want to be.”want to be.”

—Gian Luigi Longinotti-Buitoni


UpUp


The Value-added Ladder/ EMOTIONEMOTION

Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

CCDMDM*

*Chief Dream Merchant

““Dreams Come Dreams Come True”:True”:

IBMIBM

The (NEW) Value-added Ladder

Dreams Come TrueDreams Come TrueSpellbinding Experiences Spellbinding Experiences Gamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

9Ps. 9Ps.

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

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““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)

“Management has a lot to do with answers. Leadership is a function of questions. And the

first question for a leader always

is: ‘‘WhoWho dodo wewe iintendntend toto bebe?’?’ Not ‘What are we going to do?’

but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

PURPOSEPURPOSE..

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


PositivePositive..

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

““Whenever anything is Whenever anything is being accomplished, I being accomplished, I

have learned, it is have learned, it is being done by a being done by a

monomaniac with a monomaniac with a mission.”mission.” —Peter Drucker

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

“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

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

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

Great Group is to allow its allow its members to discover their members to discover their

ggreatnessreatness.”.”

Leadership’s Mt Everest/Mt ExcellenceLeadership’s Mt Everest/Mt Excellence

“freefree to do his or her to do his or her absoluteabsolute best” … best” …

“allow its members to “allow its members to discover their discover their greatnessgreatness.”.”

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

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

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““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



PositivePositive..

“This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his

determination, but also it is the first known example of a very important

peculiarity of his character: Grant had an Grant had an extreme, almost extreme, almost pphobic hobic dislike of turnindislike of turningg back back

and retracinand retracingg his ste his steppss.. If he

set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always,

always press on—turning back was not an option for him.”

—Michael Korda, Ulysses Grant

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

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

"The reasonable man adapts The reasonable man adapts himself to the world. The himself to the world. The

unreasonable one persists in unreasonable one persists in trying to adapt the world to trying to adapt the world to

himself. Therefore, all himself. Therefore, all progress depends upon the progress depends upon the unreasonable man.”unreasonable man.” —GB Shaw,

Man and Superman: The Revolutionists' Handbook.

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William —William

Feather, authorFeather, author


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

““The leaders of Great The leaders of Great

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

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

Warren Bennis & Patricia Ward Biederman, Organizing Genius

A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd:

First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year.

Second: Putting Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

< CAPEX< CAPEX> People!> People!

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

Brand Brand = =

Talent.Talent.

““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?


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make BigBig Changes

to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

Kevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine)



PositivePositive..

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

anxious to win”anxious to win”

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



PositivePositive..

““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..

tom peters at international paper

Business

petersprinci p

p rise

p erformedthe market

sim p leform

productivity throughpeo

forbes excellence index

worse wal

creative destruction