excellence. always. tom peters/expomanagement mexico d.f./08june 2006
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EXCELLENCE.
ALWAYS.Tom Peters/ExpoManagement
Mexico D.F./08June 2006
25
Slides at …
tompeters.com
The Irreducible20
9
A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter,
Gary Hamel, Jim Collins, etc. Finally, he’d had enough. “What, if anything,” he asked,
“do you believe ‘for sure’?” I mumbled something, but his query started rumbling
around in my mind. Three days later, wandering on a Sunday in London, the idea of “the irreducibles” occurred to
me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before
I knew it, a few days later, the list had grown to 209 items. Hence “The Irreducible209” that follows.
Tom Peters
Manhole Cover
Madness and More ….
Chicagoland’s
Mystery Disappearances …
THREE BILLION NEW CAPITALISTS
—Clyde Prestowitz
“One Singaporean worker costs as much as …
3 … in Malaysia
8 … in Thailand 13 … in China 18 … in India.”
Source: The Straits Times/2003
“Thaksinomics” (after Thaksin Shinawatra, PM)/
“Bangkok Fashion City”:
“managed asset
reflation” (add to
brand value of Thai textiles by demonstrating flair and design excellence)
Source: The Straits Times/2004
“Forget China, India and the
Internet: Economic Growth Is Driven
by Women.” —Headline, Economist,
April 15, 2006, Leader, page 14
EXCELLENCE. THE
MANDATE.
“If you don’t like change,
you’re going to like irrelevance even less.” —General Eric
Shinseki, Chief of Staff. U. S. Army
“It is not the strongest of the
species that survives, nor the most
intelligent, but the one most
responsive to change.” —Charles
Darwin
“We are in a brawl with
no rules.” —Paul Allaire
Sam’s Secret
#1!
"I think it is very important for you to do two things: act on your temporary conviction as if it was a
real conviction; and when you realize that you are
wrong, correct course very quickly.” —Andy Grove
“We made mistakes, of course. Most of them were omissions we didn’t think of when we
initially wrote the software. We fixed them by doing it over and over, again and again. We
do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype
version No. 5. By the time our rivals are ready with wires and screws, we are on version
No. 10. It gets back to planning versus acting: We act from day one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only find oil if you drill 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
“Reward excellent failures.
Punish mediocre
successes.”Phil Daniels, Sydney exec
EXCELLENCE. THE
GENERAL’S STORY.
“If you don’t like change,
you’re going to like irrelevance even less.” —General Eric
Shinseki, Chief of Staff. U. S. Army
“It is not the strongest of the
species that survives, nor the most intelligent, but the one most
responsive to change.” —Charles Darwin
Nelson’s secret:
“[Other] admirals more frightened of losing than
anxious to win”
EXCELLENCE. STARTERS.
Radio City Music HallSeptember 2005
Franchise Lost!
TP: “How many of you [600] really
crave a new Chevy?”
NYC/IIR/061205
P.P.E.E.R.R.E.
People.Product.
Execution.Enthusiasm.Relentless.Re-invent.Excellence.
People.Product.
Execution.Enthusiasm.
Relentless.Re-invent.Excellence.
EXCELLENCE. THE WORD.
Synonyms
PurityTranscendence
VirtueEleganceMajesty
Antonyms
Mediocrity
EXCELLENCE.
GAMECHANGER.
Excellence1982: The Bedrock “Eight Basics”
1. A Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties”
ExIn*: 1982-2002/Forbes.com
DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
EXCELLENCE.
CAUSES.ADVERSARIES.
Causes/1966-2006
Implementation/Small Wins (Stanford GSB/PhD thesis; 1st on implementation per se)
EXCELLENCE (as a worthy business pursuit)
Management Style/Corporate CultureSoft “Ss”/7-S (Waterman-Peters complete “business model”; waaaaay beyond Strategy & Structure)
Structure > Strategy (“We shape our structures, then they shape us …”—Churchillian paraphrase)
Soft Change Levers (> structure; symbols, patterns & settings)
Close to the Customer (novel idea, circa 1982)
MBWA (Managing By Wandering Around—courtesy a much more intimate than today HP)
Productivity through People (novel idea, circa 1982)
Chaos/Crazy Times Call for Crazy OrganizationsMiddle-sized companies are cool Re-imagine!/Innovate or Die!Small-ish/Scale & Synergy limits-delusions/anti-Big Mergers
Causes/1966-2006
Women/Market opportunityWomen/Leaders (right for the times)
Design/Design-as-soulWow! (Hot language)
Weird!Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1)
Brand You (or else)
PSF = Bedrock (add value or bust—every group must demonstrate economic viability)
PSF + Brand You + WOW Projects = New Biz LogicSales/+R > -C (increasing revenue more important than cutting cost)
HealthCare/Wellness-Safety-H5N1Brand = Talent (best roster wins)
New VA Ladder/Products-Services-SOLUTIONS-EXPERIENCES-DREAMKETING (Dream Marketing)-LOVEMARKDifferent > > BetterBoomers & Geezers/marketing to new “mega-segment”
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 640 Index entries: Customer/s
(service, retention, loyalty), 4. People (employees, motivation, morale,
worker/s), 0. Innovation (product development, research &
development, new products), 0.
M.I.A.*: Talk. (Present.) Listen. (Interview.) Sell. (Life = Sales.) Do. (Execution-
Implementation.) Talent. (Recruit-Develop-Retain.) Project Management. (Create. Solicit
support. Execution. Adoption-Client “Culture Change.”) Product. (“It.”) Innovation. (Design.
Creativity. “Buzz-building.” Politics.) Leadership. (USMA, etc.) E.Q. (Connect.) “Culture”
Change. (Lasting impact.) Diversity. (Cross-
cultural Effectiveness.) Career Creation. (Brand You life-lifestyle.) Wellness. (Life.)
*B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)
Adversaries
B-schools (crappy at soft skills, implementation, leadership)
Strategy-is-allBy-the-numbers managementDis-passionate managementFocus groupsIntuition discountedLeading as an intellectual taskLeading without passionCool language in Hot timesDilbert (accepting cubicle slavery)
Bigness per se (severe scale limitations—even at Microsoft)
White guys! (not really, but enough already)
18-44 emphasis in marketing (geezers > youth for foreseeable future)
-Cost > +Revenue (cost cutting more important than organic revenue growth)
CI (continuous improvement in an age of discontinuous world)
LESS THAN THE NO-HOLDS-BARRED PURSUIT OF EXCELLENCE
EXCELLENCE.
ALWAYS.
“Why in the world did you go to Siberia?”
The Peters Principles: Enthusiasm.
Emotion. Excellence. Energy. Excitement. Service. Growth.
Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design.
Quality. Entrepreneurialism. Wow.
Business* ** (*at its best): An emotional, vital, innovative, joyful,
creative, entrepreneurial endeavor that elicits
maximum concerted human potential in the
wholehearted service of others.***
**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
Business: The Ultimate Creative
Endeavor.
Business: The Ultimate Personal
Development-Growth
Experience.
Business: The Ultimate
Transcendent Service
Opportunity.
EXCELLENCE.
YOU & ME.
“In Tom’s world, it’s always better to try
a swan dive and deliver a colossal belly flop than to
step timidly off the board while holding
your nose.” —Fast Company
/October2003
“Life is not a journey to the grave with the
intention of arriving safely in a pretty and well-preserved body—but
rather a skid in broadside, thoroughly used up, totally worn out, and
loudly proclaiming, ‘Wow, what
a ride!’ ” —anon.
“This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a
force of Nature instead of a feverish, selfish little clod of
ailments and grievances complaining
that the world will not devote itself
to making you happy.” —GB Shaw/Man and Superman
EXCELLENCE.
WANTING.
This is not a “mature
category.”
This is an “undistinguishe
d category.”
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with
similar educational backgrounds,
coming up with similar ideas,
producing similar things, with
similar prices and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“The Bottleneck
Is at the Top of the
Bottle”“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry dogma:
At the top!”
— Gary Hamel/Harvard Business Review
EXCELLENCE. NO EXCUSES.
Summary:
WallopWal*Mart16*
*Or: Why it’s so absurdly easy to beat a GIANT Company
The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.)
*Never attack the monsters head on! (Instead steal niche business and lukewarm customers.)
*“Dramatically Different” (La Difference ... within our
community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)
*Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
*Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
EXCELLENCE. DRAMATIC.
DIFFERENCE.
“A focus on cost-cutting and efficiency has helped many organizations weather the
downturn, but this approach will ultimately
render them obsolete. Only the constant pursuit of
innovation can ensure long-term
success.” —Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia (FT/09.17.04)
We become who we hang
out with!
Measure “Strangeness”/Portfolio Quality
StaffConsultants
VendorsOut-sourcing Partners (#, Quality)
Innovation Alliance PartnersCustomers
Competitors (who we “benchmark” against)
Strategic Initiatives Product Portfolio (LineEx v. Leap)
IS/IT ProjectsHQ LocationLunch Mates
LanguageBoard
EXCELLENCE!
ALWAYS!
$798
$415/SqFt/Wal*Mart$798/SqFt/Whole
Foods
7X. 730A-800P.
F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
“It’s simple, really, Tom. Hire for s,
and, above all, promote for s.”
—Starbucks middle manager/field
“A man without a smiling face must
not open a shop.” —Chinese Proverb
EXCELLENCE.
PITIFUL.
????????
6/44
P&G
EXCELLENCE.
FOUND.
“To be a leader in consumer
products, it’s critical to have
leaders who represent the population we
serve.” —Steve Reinemund/PepsiCo
EXCELLENCE.
OPPORTUNITY.
“Women are the
majority market”
—Fara Warner/The Power of the Purse
The Perfect Answer
Jill and Jack buy slacks in black…
1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.
10. Women’s Market =
Opportunity No. 1.
EXCELLENCE.
OPPORTUNITY.
2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47% )
44-65: “New Customer Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder,
Ageless Marketing
The Irreducible20
9
73. Exercise.74. Paint. (Leader. Portraits of Excellence.)75. Best story wins.76. “You must be the change you wish to see in the world.”77. Two “big ones.” Max. (Priorities.)78. No “I” in Team. (“I” in Win.)79. “I” in Win. (No “I” in Team.)
80. Different 1, Better 0. (Better = 0.1)
81. Imitation = Mistake. (Learn, from who?)82. Choose/battle the “right” competitor.83. Schools. Creativity. Entrepreneurship. (Not.)84. MBAs. Creativity. Entrepreneurship. Leadership. (Not.)85. Design. Under-rated. Wildly. (Still.) (Everything.)
EXCELLENCE.
VALUE ADDED.
$55B
The [Only?] Answer
PSF (Professional Service Firm “model”/The Organizing Principle)
+
Brand You(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects (“Different” vs “Better”/The Work)
“Big Brown’s New Bag: UPS
Aims to Be the Traffic Manager for Corporate
America” —Headline/BW/2004
MasterCard Advisors
I. LAN Installation Co. (3%)
II. Geek Squad. (30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
EXCELLENCE.NECESSITY.
OPPORTUNITY.
“ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of
irrelevance—disintermediation is just another way
of saying that … you’ve become
irrelevant to your
customers.”
—John Battelle/Point/Advertising Age/07.05
43,000
Chicago:
HRMAC
“support function” / “cost
center”/ “overhead”
or …
Are you … “Rock Stars of the
Age of Talent”
Are you the …
“Principal Engine of
Value Added”*E.g.: Your R&D budget as robust as the New Products team?
The Irreducible20
9
117. Negotiation. Make all winners. (Save face.)118. Grace makes enemies friends.119. Network.
120. Invest in relationships. (Think ROIR. Return On Investment in Relationships.)118. Relationship investment. Forethought. Calendar item. Intensity.119. Innovation. Easy. (Hang out with weird.)120. Weird = Win. (Weird times.)121. “The bottleneck is at the top of the bottle.”122. Good Board = Weird Board. (At least, surprising.)123. No contention, no progress.
EXCELLENCE. NO OPTION.
“ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of
irrelevance—disintermediation is just another way
of saying that … you’ve become
irrelevant to your
customers.”
—John Battelle/Point/Advertising Age/07.05
Department Head
to …
Managing
Partner, IS [HR, R&D, etc.] Inc.
The “PSF35”: Thirty-Five
Professional Service Firm Marks of Excellence
The PSF35: The Work & The Legacy
1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”
Point of
View!
R.POV8**Remarkable Point Of View/8 Words or less/“If you can’t state your
position in eight words or less you don’t have a position.”—SG
EXCELLENCE.
ATTITUDE.TRANSFORMATION.
“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization
Professional? Or/to: Full Partner-Leader in Lifetime
Value-added Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
PSF Transformation: Credit Department/Trek
Was Is
Credit Dept Financial Services
Hammer on dealers until Make dealers successful so theythey pay CAN pay
AR sold to 3rd party Trek is the commercial financialcommercial co. Company
23 employees 12 employees
Oversee peak AR of $70M Oversee peak AR of $160M
Identify risky dealers Identify opportunities
Cost Center Profit Center
No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments
Source: John Burke/0330.06
EXCELLENCE.
UP THE LADDER.
The Value-added Ladder/Stuff ‘n’ Things
Goods Raw Materials
The Value-added Ladder/Stuff & Transactions
ServicesGoods
Raw Materials
The Value-added Ladder/Opportunity-seeking
Gamechanging Solutions
ServicesGoods
Raw Materials
Answer:
PSF
EXCELLENCE.
EXPERIENCE IT.
“Experiences are as distinct
from services as services are from
goods.” —Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
EXCELLENCE.
UP THE LADDER.
The Value-added Ladder/Memorable Connection
Spellbinding Experiences
Gamechanging SolutionsServicesGoods
Raw Materials
CXO**Chief eXperience Officer
EXCELLENCE.
DREAM IT.
DREAM: “A dream is a complete moment in the life
of a client. Important experiences that tempt the client to commit substantial resources. The essence of
the desires of the consumer. The opportunity to help
clients become what they want to be.”
—Gian Luigi Longinotti-Buitoni
EXCELLENCE.
UP THE LADDER.
The Value-added Ladder/Emotion
Dreams Come True
Spellbinding Experiences Gamechanging Solutions
ServicesGoods
Raw Materials
Furniture vs. Dreams
“We do not sell ‘furniture’ at
Domain. We sell dreams. This is
accomplished by addressing the half-formed needs in our
customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.” — Judy George,
Domain Home Fashions
CDM*
*Chief Dream Merchant
EXCELLENCE.
LOVE IT.
“Brands have run out
of juice. They’re
dead.” —Kevin Roberts/Saatchi &
Saatchi
Kevin Roberts:
Lovemarks!
Tattoo Brand: What % of users would tattoo the brand name on their
body?
Top 10 “Tattoo Brands”*
Harley .… 18.9%Disney .... 14.8
Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6Nike …. 4.6
Adidas …. 3.1Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
CL O*
*Chief Lovemark Officer
EXCELLENCE. THE STORY.
“Storytelling
is the core of culture.”
—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
Best Story Wins!
“A key – perhaps the key – to leadership is
the effective communication
of a story.”—Howard Gardner/Leading Minds:
An Anatomy of Leadership
Market Power = Story Power
CSTO*
*Chief Storytelling Officer
The Irreducible20
9
163. Own up. Quick. ( Denial. Cancer.)
164. Celebrate. Often.165. 78 people = 78 approaches. (Each. Unique.)166. Weed. Ceaselessly. (Prune. Stupid. Rules. Non-stop.)
167. Get out of the way. (You = The problem.)168. Smile. Sunny. Optimism. (If it kills you.)169. Flowers. (Cheery workplace.)170. Enjoy. (Or get the hell.)
171. Be intolerant of “sour.” (1 = Major pollution)172. No “quick trigger” on promotion. (Too important.)173. Evaluation = Lots of study-time.174. Evaluation = “Life or death” to evaluee.175. “360” evaluation. No fad.
176. Exit when you’re done. (Done. Sooner than you think.)
EXCELLENCE.
BEDROCK.
“Management has a lot to do with answers. Leadership is a function of questions. And the
first question for a leader always
is: ‘Who do we intend to be?’ Not ‘What are we going to do?’
but ‘Who do we intend to be?’” —Max De Pree, Herman Miller
“People want to be part of something larger
than themselves. They want to be part of
something they’re really proud of, that they’ll
fight for, sacrifice for , trust.” —Howard Schultz, Starbucks (IBD/09.05)
EXCELLENCE.
PASSION.
“Nothing is so contagious as enthusiasm.”
—Samuel Taylor Coleridge
“Most important,
he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05
EXCELLENCE.
BEDROCK.
Brand =
Talent.
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 her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to discover their
greatness.”
Leadership’s Mt Everest/Mt Excellence
“free to do his or her absolute best” …
“allow its members to discover their
greatness.”
“The role of the Director is to create a
space where the actor or actress can become more than they’ve ever been before, more than
they’ve dreamed of being.” —Robert Altman, Oscar
acceptance
“We are a ‘life
Success Company”’
founder, RE/MAX
Our Mission
To develop and manage talent;
to apply that talent,throughout the world,
for the benefit of clients;to do so in partnership;
to do so with profit.
WPP
“Leaders
‘do’ people.
Period.” —Anon.
Les Wexner: From sweaters to …
people!
DD$21M
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; ie 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 HR on a par with finance and marketing.
EXCELLENCE. WOMEN.
RULE.
“AS LEADERS, WOMEN
RULE: New Studies find that
female managers outshine their male counterparts in almost every measure”
Title, Special Report/BusinessWeek
????????
6/44
“Forget China, India and the
Internet: Economic Growth Is Driven
by Women.” —Headline, Economist,
April 15, 2006, Leader, page 14
EXCELLENCE. INDIVIDUAL.BRAND YOU.
Core Mechanism:“Game-changing Solutions”
PSF (Professional Service Firm “model”/The Organizing Principle)
+
Brand You(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects (“Different” vs “Better”/The Work)
“You are the storyteller of your own life, and you can create your own legend or
not.” —Isabel Allende
“This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a
force of Nature instead of a feverish, selfish little clod of
ailments and grievances complaining that the world
will not devote itself to making you happy.” —GB Shaw/
Man and Superman
EXCELLENCE.
BEDROCK.
X.Step #1:Buy a Mirror!
“The First step in a ‘dramatic’
‘organizational change program’ is obvious—
dramatic personal change!” —RG
“You must
be the
change you wish to see in the
world.”Gandhi
EXCELLENCE.
REVENUE.MATTERS.
MOST.
. “Everyone lives by selling
something.”
– Robert Louis Stevenson
SellSellSell
CRO*
*Chief Revenue Officer
The Irreducible20
9
188. Handshake. (Quantity. Quality.)189. Don’t fold your hands in front of your chest. Ever. (Never.)190. Simplicity. Redundancy. Resilience. Bloody-mindedness. Visible optimism. (Success.) (Repeat.)
191. Employee Entrance = Guest Entrance.192. Put the customer SECOND. (Thanks, Hal.)193. Flowers. (Or did I say that before? No matter if I did.)194. Big Mergers don’t work. Small acquisitions can/do work—if you don’t screw with their energy.
EXCELLENCE.
4/40.
Pathetic!
“Forbes100” from 1917 to 1987: 39 members of the Class of ’17 were
alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the
market by 20%; just 2 (2%), GE &
Kodak, outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (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
“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 very large one and just wait.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“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 are success
stories out there, but at this moment I
draw a blank.” —Mark
Sirower, The Synergy Trap
“I don’t believe in
economies of scale. You don’t get better by being bigger. You get worse.” —
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA: Wells, 1.7%; Citi, 1.5%; BofA, 1.3%;
J.P. Morgan Chase, 0.9%)
4/40
De-cent-ral-iz-a-tion!
Ex-e-cu-
tion!
“We have a ‘strategic plan.’ It’s
called doing things.” — Herb Kelleher
“Execution is the job of
the business leader.” —Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“Execution is a
systematic process of rigorously
discussing hows and whats, tenaciously following through, and
ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
“The person who is a little less conceptual but is absolutely determined to succeed will usually find the
right people and get them together to achieve objectives. I’m not knocking education or looking for
dumb people. But if you have to choose between someone with a
staggering IQ and an elite education who’s gliding along,
and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” —Larry
Bossidy/Execution: The Discipline of Getting Things Done
Ac-count-a-bil-ity!
“GE has set a standard of candor.
… There is no puffery. … There isn’t an ounce of
denial in the place.” —
Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)
6:15A.M.
????????
Work Hard > Work Smart
EXCELLENCE.
LEADING.
Leadership23
Leadership23
1. Enthusiasm. Energy. Exuberance.2. Action. Execution.3. Tempo. Metabolism.4. Relentless.5. Master of Plan B.6. Accountability.7. Meritocracy.8. Leaders “do” people. Mentor. (“Success creation business.”)9. Women. Diversity.10. Integrity. Credibility. Humanity. Grace.11. Realism.12. Cause. Adventures. Quests.13. Legacy.14. Best story wins.15. On the edge. (“Wildest chimera of a moonstruck mind.”)16. “Reward excellent failures. Punish mediocre successes.”17. Different > Better. (“Only ones who do what we do.”)18. MBWA. Customer MBWA.19. Laughs.20. Repot. Curiosity. Why?21. You = Calendar. “To Don’t.” Two.22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)
Kevin Roberts’ Credo
1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.
10. Avoid moderation!
EXCELLENCE.
STRETCH.
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
“Beware of the tyranny of making
Small Changes to Small
Things. Rather,
make Big Changes
to Big Things.”
—Roger Enrico, former Chairman, PepsiCo
“Reward excellent failures.
Punish mediocre
successes.”Phil Daniels, Sydney exec
EXCELLENCE.
TRANSCENDENCE.THRILLS.
Radically Thrilling Language!
“Radically Thrilling.”
—BMW Z4 (ad)
CTO**Chief Thrills Officer
Synonyms
PurityTranscendence
VirtueEleganceMajesty
Antonyms
Mediocrity
CTO**Chief Transcendence Officer
EXCELLENCE. WOW. NOW.
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
CWO**Chief WOW Officer
EXCELLENCE.LET.US.
MARCH.
“In classical times when Cicero had finished
speaking, the people said, ‘How well he spoke,’ but when Demosthenes had finished speaking,
they said, ‘Let us march.’” —Adlai Stevenson
Let us march.
“Never doubt that a small group of
committed people can change the
world. Indeed it is the only thing that ever has.” —Margaret Mead
EXCELLE ALWAYS.
Bonus
The Irreducible20
9
A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter,
Gary Hamel, Jim Collins, etc. Finally, he’d had enough. “What, if anything,” he asked,
“do you believe ‘for sure’?” I mumbled something, but his query started rumbling
around in my mind. Three days later, wandering on a Sunday in London, the idea of “the irreducibles” occurred to
me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before
I knew it, a few days later, the list had grown to 209 items. Hence “The Irreducible209” that follows.
Tom Peters
1. Hare 1, Tortoise 0. (Hare-y times.)2. Tempo. (O.O.D.A.)3. MBWA.4. Appreciation. (“Motivator” #1.) (Can’t be faked. Good.)5. Decency.6. Hurry.7. Time out.8. One matters. 9. Big change. Short time. (Alt not work.)10. Excellence. Always.11. Passion. Energy. Hustle. Enthusiasm. Exuberance. (Move mountains. No alt.)12. You must care.13. Emotion.14. Hard is soft. (Soft is hard.)
15. Men. Women. Different. Contend. Connect.16. Women. Buy. All. (RU listening?)17. Quality. (“Mind-blowing.” Beyond 6-Sigma.)18. Re-invent. Re-pot. (Required.)19. Jaywalk.20. Big change. Small # of people. (Always.)21. Experiment. Now.22. Failure. Normal. 23. Most failures, most success. (Fail. Forward. Fast.) 24. “Reward excellent failures. Punish mediocre successes.”25. Women leaders. (Altered times.) 26. Extremism. (Good business. Bad politics.)27. Innovation source. Only. Extreme irritation.28. Smile.
29. You must care.30. Mentor. (Highest ROI.)31. Best “roster” wins.32. Wow. (Okay in biz.)33. We all have customers. (Biz. Personal.)34. All contacts = Experiences.35. Cirque du Soleil. (Peerless.)36. Leaders create space for growth.37. Quests. (Only.)38. High aspirations, “high” results. (Self-fulfilling prophecy.)39. Attitude 1, Skills 0. (Mostly.) (Attitude 1, Skill 0.3?)40. Sometimes: Skill 1, Attitude 0.1.41. Must “love,” not “like.”42. Wegman’s.” (No excuses. “Mere” groceries.)43. Less than your best. Cheating.
44. Brand You. (No alt.)45. Self-sufficiency. (Biggest LT turn-on.)46. In the moment.47. The moment wins.48. Tomorrow = Never. 49. Action 1, Plan 0.1.50. “Execution” can be a “system.”51. Realism.52. Own up. Move on.53. Accountability.54. Work hard > Work smart. (Mostly.)55. Feedback. Necessary. Fast. (R.F.A. in “RFA times.”)56. Customers. Listen. Lead. (Paradox.)57. “On stage.” Always. (GW, FDR, RG = Supreme actors.)
58. Master statistical analysis.59. Excellence = Set the table.60. Legacy. (Will it have mattered?)61. “Great.” (Why not?)62. Radicals rule. (Think … Olympics.)63. !!! = Good.64. Red 1, Brown 0. (Red times.)65. Talk. Listen. (“Big 2.” Master.)66. Politics. (Normal-inevitable state of affairs. Master.)67. Student. Forever.68. “Why?” (Question #1.)69. Don’t belittle.70. Respect.71. All we have: this moment. (“Moments matter most”?) 72. Now. (Procrastination. Death.)
73. Exercise.74. Paint. (Leader. Portraits of Excellence.)75. Best story wins.76. “You must be the change you wish to see in the world.”77. Two “big ones.” Max. (Priorities.)78. No “I” in Team. (“I” in Win.)79. “I” in Win. (No “I” in Team.)80. Different 1, Better 0. (Better = 0.1)81. Imitation = Mistake. (Learn, from who?)82. Choose/battle the “right” competitor.83. Schools. Creativity. Entrepreneurship. (Not.)84. MBAs. Creativity. Entrepreneurship. Leadership. (Not.)85. Design. Under-rated. Wildly. (Still.) (Everything.)
86. You = Calendar. (Calendar. Never. Lies.)87. Laugh.88. Handshake. (Quantity. Quality.)89. Don’t fold your hands in front of your
chest. Ever. (Never.)90. Grace. (“Works” in biz.)91. Weird. Wins. (Weird times.)92. Crazy times. Crazy orgs.93. Internet. All.94. Women. Boomers-Geezers. Market. All.95. Passion. (Repeat. So what?)96. Energy. (Repeat. So what?)97. Hustle. (Repeat. So what?)98. Enthusiasm. (Repeat. So what?)99. Exuberance. (Repeat. So what?)100. Smile. (Repeat. So what?)101. Care. (Repeat. So what?)
102. Simplicity. Redundancy. Resilience. Bloody- mindedness. Visible optimism. (Success.) 103. Act. (Repeat. So what?) 104. Appreciate. (Repeat. So what?)105. Fun. (Biz. Why not?)106. Joy. (Biz. Why not?)107. Sales = Life.108. Marketing = Life.109. Long-term. “Top line.”110. Great company = Creates the most individual success stories. (RE/MAX)111. Talent first, performance byproduct.112. Sustained Wow* 1, “Shareholder value,” 0.2 (*Product, People.)113. Commitment, by invitation only.114. Creativity, by invitation only. 115. HR = #1. (Ought to.)116. Face-to-face. (5K miles, 5 minutes.)
117. Negotiation. Make all winners. (Save face.)118. Grace makes enemies friends.119. Network.120. Invest in relationships. (Think ROIR. Return On Investment in Relationships.)118. Relationship investment. Forethought. Calendar item. Intensity.119. Innovation. Easy. (Hang out with weird.)120. Weird = Win. (Weird times.)121. “The bottleneck is at the top of the bottle.”122. Good Board = Weird Board. (At least, surprising.)123. No contention, no progress.
124. “Crucial conversations.” “Crucial confrontations.” (Study. Learn. Do.)125. Honest feedback.126. Gaspworthy. Yes. 127. “Insanely great.”128. “Astonish me.”129. “Make it immortal.”130. “Will you remember it in 20 years?”131. No small opportunities. (Reframe.)132. One playmate, one playpen = Enough.133. End run. Sensible.134. Allies are there for the finding.135. Find successes. Build on successes. (Pos > Neg. Encourage > Fix.)136. Somebody’s doing it today. Find ’em.137. Someone is living 2016 in 2006. (Find ’em. Study ’em.)
138. Don’t “benchmark,” “futuremark.” (2016. Happening. Somewhere.)139. “PMA.” It works.140. There are no experts. (You are the expert.)141. Life is short. 142. “Sustained success.” Fat chance. Make today matter. (“Sustained.” Ha.)143. Collaborate. (Networked world.)144. Go solo. (Individual. Unit of Intellectual Capital.)145. There are no “perfect” plans. (Do. Wins.)146. Plans motivate. (Right or wrong. Sense of purpose.)147. Never rest.148. Get some sleep.149. Winning = Embracing paradox.150. Ambiguity = Opportunity.
151. Resilience.152. Relentless-ness.153. None. Above. Comeuppance. (GM. Sears. U.S. Steel. DEC.)154. Be yourself. Period.155. Never work with jerks. Including customers. (Life. Too short.)156. Under-promise, over-deliver.157. Talent. (Powerful word.)158. “Customer = Anyone whose actions affect your results.”159. Competition stinks. (Seek the soft spots where you can dominate.)160. K.I.S.S./Keep It Simple, Stupid.161. Beauty. (Good biz word.)162. “See the beauty in a hamburger bun.” (Go. Ray.)
163. Own up. Quick. ( Denial. Cancer.)164. Celebrate. Often.165. 78 people = 78 approaches. (Each. Unique.)166. Weed. Ceaselessly. (Prune. Stupid. Rules. Non-stop.)167. Get out of the way. (You = The problem.)168. Smile. Sunny. Optimism. (If it kills you.)169. Flowers. (Cheery workplace.)170. Enjoy. (Or get the hell.)171. Be intolerant of “sour.” (1 = Major pollution)172. No “quick trigger” on promotion. (Too important.)173. Evaluation = Lots of study-time.174. Evaluation = “Life or death” to evaluee.175. “360” evaluation. No fad.176. Exit when you’re done. (Done. Sooner than you think.)
177. Today. Now. My Project. Am. Is. I. Period.178. “Beautiful” systems. (Good biz phrase. Not oxymoron.)179. Build on strengths > Fix weaknesses.180. “To don’t” = “To do.” (“To don’t” > “To do” ?)181. Leaders “Do” People. (Period.)182. Leaders enjoy leading.183. Serious leadership training = Serious.184. Priorities. Obvious. (Or else.)185. 5 “Priorities” = 0 Priorities. (3 “Priorities” = 0 Priorities?)186. People. First. Last. Always.187. It. Is. Always. The. People.
188. Handshake. (Quantity. Quality.)189. Don’t fold your hands in front of your chest. Ever. (Never.)190. Simplicity. Redundancy. Resilience. Bloody-mindedness. Visible optimism. (Success.) (Repeat.)191. Employee Entrance = Guest Entrance.192. Put the customer SECOND. (Thanks, Hal.)193. Flowers. (Or did I say that before? No matter if I did.)194. Big Mergers don’t work. Small acquisitions can/do work—if you don’t screw with their energy.
195. Instinctively “head for the front line.” (In all contexts.)196. Success = DDMMPR/"D-squared, M-squared, PR” = DramDiff + Money-Financial Acumen + Good “Marketing” Instincts + Stellar People + Resilience (The “fab five”: What. Every. Small. Biz. Needs.) (Big too.)197. Core Mechanism (“Game-changing Solutions”): PSF (Professional Service Firm “model”) + Wow! Projects (“Different” vs “Better”) + Brand You (“Distinct” or “Extinct”)198. 2011/2016 has already happened. Find it.
199. Kids “know” kids. Oldies “know” oldies. Women “know” women. (Staff accordingly.)200. Everybody is my customer.201. Cosset “vendors.”202. I want to run a Housekeeping department. (And you?)203. The military doesn’t follow the “military model.” (Initiative = Excellence.)204. No such thing as “going to absurd lengths” to serve the Customer. (HSM & Lefties.)205. Forget the “customer.” All = “Clients.”206. It takes decades to get over “sleights.” (So don’t sleight.)207. Don’t “dumb down.” Ever.
208. NO LESS THAN EXCELLENCE. EVER.209. EXCELLENCE. ALWAYS.
EXCELLENCE.
ALWAYS.