seoul 14 september 2006
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SEOUL 14 September 2006. . “Everyone lives by selling something.” – Robert Louis Stevenson. - PowerPoint PPT PresentationTRANSCRIPT
SEOUSEOUL L
14 September 200614 September 2006
. “Everyone “Everyone lives by lives by selling selling
something.”something.”
– Robert Louis Stevenson
A Few Biases You Should Know About**I am I am notnot a macro-economist. a macro-economist.**I I amam exceptionally biased by 30 years (1970-2000) in exceptionally biased by 30 years (1970-2000) in Silicon ValleySilicon Valley..**I would rather work for eBay than BankAmerica.I would rather work for eBay than BankAmerica.**I believe that the Giant Merger Game is the single greatest I believe that the Giant Merger Game is the single greatest waste of energy in the world of business. waste of energy in the world of business.**Economies of scale are wildly over-rated.Economies of scale are wildly over-rated.**I find the entire notion of “career” to be disturbing and a little silly.I find the entire notion of “career” to be disturbing and a little silly.**I find the notion of “built to last” hilarious.I find the notion of “built to last” hilarious.**Between 1965 and 1980 I turned 179.9 degrees from “Mr BigBetween 1965 and 1980 I turned 179.9 degrees from “Mr Big Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you, Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you, Frank Perdue.) Frank Perdue.)**Joseph Schumpeter (“Joseph Schumpeter (“gales of creative destructiongales of creative destruction”) and F.A. Hayek ”) and F.A. Hayek
are my economist “gods”; JK Galbraith is my bete noir. are my economist “gods”; JK Galbraith is my bete noir.**“Innovation” is a wonderfully “Innovation” is a wonderfully messymessy & & chaoticchaotic process—not process—not amenable to “strategic plans.” amenable to “strategic plans.”*I believe in Luck. (*I believe in Luck. (Fooled by RandomnessFooled by Randomness—best book—best book I’ve ever read.) I’ve ever read.)
A Few Biases You Should Know About**I find most strategic plans (and strategic planners) to be amusing.I find most strategic plans (and strategic planners) to be amusing.**I am not … I am not … Mike Porter.Mike Porter.**I am not … I am not … Peter DruckerPeter Drucker..**I am not … I am not … Jim CollinsJim Collins..**I believe that the resilience of Giant Companies is I believe that the resilience of Giant Companies is wildly-absurdly over-rated. wildly-absurdly over-rated.**I believe that America’s productivity edge comes from car dealersI believe that America’s productivity edge comes from car dealers more than Giant Cos. more than Giant Cos.**No “business model” is “the last word.”No “business model” is “the last word.”**I am a Great Believer in “the basics”: I am a Great Believer in “the basics”: product, people, customers,product, people, customers, execution execution. (Hence there is nothing very interesting, save one . (Hence there is nothing very interesting, save one thing,thing, in in In Search of ExcellenceIn Search of Excellence.).)**I believe that EXCELLENCE is a legitimate aspiration for each of us;I believe that EXCELLENCE is a legitimate aspiration for each of us; and that any lesser aspiration is unconscionable. and that any lesser aspiration is unconscionable.
Tom Peters’Tom Peters’
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
XAlways/KMACXAlways/KMACSEOUL/14 September 2006SEOUL/14 September 2006
Slides at …
tompeters.comtompeters.com
TheThe Irreducible209+/Irreducible209+/Sales122/60TIBsSales122/60TIBs
1. 1. Hare 1, Tortoise 0.Hare 1, Tortoise 0. (Hare-y times.) (Hare-y times.)2. 2. Tempo.Tempo. (O.O.D.A.) (O.O.D.A.)3. 3. MBWA.MBWA.4. 4. Appreciation.Appreciation. (“Motivator” #1.) (“Motivator” #1.) (Can’t be faked. Good.)(Can’t be faked. Good.)5. 5. Decency.Decency.6. Hurry.6. Hurry.7. Time out.7. Time out.8. One matters. 8. One matters. 9. 9. Big change. Short time.Big change. Short time. (Alt not work.) (Alt not work.)10. Excellence. Always.10. Excellence. Always.11. 11. Passion. Energy. Hustle. Enthusiasm.Passion. Energy. Hustle. Enthusiasm. Exuberance.Exuberance. (Move mountains. No alt.) (Move mountains. No alt.)12. You must care.12. You must care.13. Emotion.13. Emotion.14. 14. Hard is soft.Hard is soft. (Soft is hard.) (Soft is hard.)
EXCELLENCE.EXCELLENCE.
ALL YOU NEED TO KNOW. ALL YOU NEED TO KNOW.
2255
That’s a
BigBig Number ….
THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS
—Clyde Prestowitz
“There is no job that
is America’s God-given
right anymore.”
—Carly Fiorina/HP/January2004
“There is no job that
is _____’s God-given
right anymore.”
“Deutsche Bank Moves Half of Its Back-office Jobs to India”/
headline/FT/0327 (500 (500 of 900 of 900
ResearchResearch))
That’s a smallsmall Number ….
2626m
4343hh
EXCELLENCE. EXCELLENCE. EVERYWHERE.EVERYWHERE.ASPIRATION.ASPIRATION.NECESSITY.NECESSITY.
“One Singaporean worker costs as much as …
3 … in Malaysia
88 … in Thailand … in Thailand 13 … in China 18 … in India.”
Source: The Straits Times/2003
“Thaksinomics” (after Thaksin Shinawatra)
“Bangkok Fashion City”:
“managed “managed asset reflation”asset reflation”
(add to brand value of Thai textiles by demonstrating
flair and design excellence)
Source: The Straits Times/2004
SpainPortugal
ItalyIreland
Singapore TaiwanThailandMalaysia
PhilippinesDubaiOmanChile
RomaniaAustralia
New ZealandNew Zealand
“Better By Design”: A National Strategy
NZ = DesignNZ = Design ExcellenceExcellence
SpainPortugal
ItalyIreland
Singapore ThailandMalaysia
PhilippinesDubaiOmanChile
Romania Australia
New ZealandTaiwanTaiwan
“ ‘“ ‘MADE IN MADE IN TAIWAN’: From TAIWAN’: From
Cheap Cheap Manufacturing to Manufacturing to Chic Branding Chic Branding ””
—Headline/Advertising Age/06.05
Taiwan, Your Taiwan, Your Partner in Partner in InnoValueInnoValue
Poster/Bucharest/03.06
SpainPortugal
ItalyIreland
Singapore ThailandMalaysia
PhilippinesDubaiOmanChile
RomaniaRomania Australia
New ZealandTaiwanTaiwan
London circa 1976: “You can’t You can’t build a ‘real economy’ build a ‘real economy’ on services, finance, on services, finance,
advertising, etc.”advertising, etc.”London circa 2006: deliberately deliberately aims to be the aims to be the “capital “capital
of the 21of the 21stst century” century”
EXCELLENCE. EXCELLENCE. EVERYWHERE.EVERYWHERE.
ROOTS.ROOTS.
Age of AgricultureIndustrial Age
Age of Information IntensificationAge of CreationAge of Creation IntensificationIntensification
Source: Murikami Teruyasu, Nomura Research Institute
Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers)
Conceptual AgeConceptual Age (creators and empathizers)
Source: Dan Pink, A Whole New Mind
““Human cHuman creativitreativity y is the is the ultimateultimate
economic economic resource.”resource.” —Richard Florida,
The Rise of the Creative Class
““THE FUTURE BELONGS THE FUTURE BELONGS TO … SMALL TO … SMALL
POPULATIONS … WHO POPULATIONS … WHO BUILD BUILD EMPIRESEMPIRES OF THEOF THE
MINDMIND … AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE
OPTION OF—EXPLOITING NATURAL RESOURCES.”
Source: Juan Enriquez/As the Future Catches You
U.S. Historical Strength: Invest in Creativity
*Foster new industries*Foster new industries*Free & open society*Free & open society
*Investment higher ed,*Investment higher ed, R & D, culture R & D, culture*Immigrants*Immigrants
Source: Richard Florida, The Rise of the Creative Class
““The Creative The Creative Age is aAge is a widewide--openopen g gameame.”.”
—Richard Florida, The Rise of the Creative Class
London circa 1976: “You can’t You can’t build a ‘real economy’ on build a ‘real economy’ on
‘soft services’ like ‘soft services’ like finance, advertising, etc.”finance, advertising, etc.”
London circa 2006: deliberately deliberately aims to replace New York aims to replace New York as the as the “capital of the 21“capital of the 21stst
century”century”
EXCELLENCE. THE EXCELLENCE. THE
MANDATE.MANDATE.
““If you don’t If you don’t like change, like change,
you’re going to you’re going to like like irrelevanceirrelevance even less.”even less.” —General Eric
Shinseki, Chief of Staff. U. S. Army
““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
“Forbes100” from 1917 to 1987: 3939 members of the Class of ’17 were alive members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly “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: 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 Buy a very large one very large one and just waitand just wait.”.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“It is generally much easier to kill an kill an
organizationorganization than change it
substantially.” —Kevin Kelly, Out of Control
C.E.O.C.E.O. to
C.D.O.C.D.O.
DYB.com
““The Silicon Valley of The Silicon Valley of today is built less atop today is built less atop
the spires of earlier the spires of earlier triumphs than upon the triumphs than upon the
rubble of earlier rubble of earlier debacles.debacles.”” —Newsweek/Paul Saffo
““RewardReward excellent failures.
PunishPunish mediocre
successes.”Phil Daniels, Sydney exec
““Wealth in this new regime Wealth in this new regime flows directly from innovation, flows directly from innovation,
not optimization. That is, not optimization. That is, wealth is not gained by wealth is not gained by
perfecting the known, perfecting the known, but by but by imperfectly seizing the imperfectly seizing the unknown.”unknown.” —Kevin Kelly, New Rules for
the New Economy
TP#1*:
NetscapeNetscape
!!*Where would you rather have worked for those 5 yearsWhere would you rather have worked for those 5 years, Netscape
or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)
EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.HORRORS.HORRORS.
Franchise Lost!
TP: “How many of you [600] really
cravecrave a new Chevy?”
“Ford, GM and Chrysler do not just make cars expensively … they make bad
cars expensively.” —
Investec analyst, International Herald, 0805.06
Sluggish Sluggish ++ Obese Obese ++ Unimaginative Unimaginative ++ More More
Sluggish Sluggish ++ More Obese More Obese ++ More Unimaginative More Unimaginative ++ Even Even More Sluggish More Sluggish ++ Even More Even More
Obese Obese ++ Even More Even More Unimaginative Unimaginative == NISSAN NISSAN ++ RENAULT RENAULT ++ GM GM = = Innovative Challenger for Innovative Challenger for
Toyota????Toyota????
EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.
BASICS.BASICS.
P.P.C.E.E.E.P.P.C.E.E.E.
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
RRelentlessnesselentlessness..
“One of my superstitions had always been when I started to
go anywhere or to do
anything, not to turn not to turn backback, or stop, until the
thing intended was 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.himself. Therefore, all Therefore, all progress depends upon progress depends upon the unreasonable manthe unreasonable man.”.”
—GB Shaw, Man and Superman: The Revolutionists' Handbook.
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
RRelentlessness. elentlessness.
SSenility.enility.
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your mind, but how to get the old ones out.” —Dee Hock
EXCELLENCE. EXCELLENCE. THE WORD.THE WORD.
Synonyms
PurityPurityTranscendenceTranscendence
VirtueVirtueEleganceEleganceMajestyMajestyAntonyms
Mediocrity
EXCELLENCE. EXCELLENCE.
GAMECHANGER.GAMECHANGER.
Excellence1982: The Bedrock “Eight Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and 3. Autonomy and EntrepreneurshipEntrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”
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
Them-UsThem-Us
“Them” “Us”Strategy EXECUTIONEXECUTIONPlanning ActionActionMarketing Selling/SalesSelling/SalesMarkets CustomersCustomersCustomers ClientsClientsMicro-segmentation Big Stuff (Women, Boomers)Big Stuff (Women, Boomers)Cost minimization Revenue maximizationRevenue maximizationSynergy/“Efficiencies” DecentralizationDecentralization“Strategic” supplier Pioneering supplierPioneering supplierProcess ProjectProjectEffectiveness ExcellenceExcellenceMen WomenWomenLeadership Management + LeadershipManagement + LeadershipStandardization Exceptionalism (53 = 53)Exceptionalism (53 = 53)Big clients COOL clientsCOOL clientsPrestigious Board INTERESTING BoardINTERESTING Board
EXCELLENCE. EXCELLENCE.
ALWAYS.ALWAYS.
““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.
Business* ** (*at its best): An emotional, An emotional, vital, innovative, joyful, vital, innovative, joyful,
creative, entrepreneurial creative, entrepreneurial endeavor that elicits endeavor that elicits
maximum concerted human maximum concerted human potential in the potential in the
wholehearted servicewholehearted service of others of others.***
**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
EXCELLENCE. EXCELLENCE.
DEFINED.DEFINED.
Great Companies … SETSET THETHE
AGENDAAGENDA.* (PERIOD.)
* “disturb the sleep of …
AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers
US Steel … Ford … US Steel … Ford … ToyotaToyota … Sears … … Sears … GM … ITT …GM … ITT … The Gap …The Gap … Limited …Limited …
Wal*MartWal*Mart …… TescoTesco …… P&G … 3M …P&G … 3M … IntelIntel … IBM …… IBM … AppleApple …… NokiaNokia ……
CiscoCisco … … DellDell … MCI … Sun …… MCI … Sun … MicrosoftMicrosoft …… GoogleGoogle … Enron …… Enron …
SchwabSchwab …… GEGE … Laker … … Laker … Southwest Southwest … People Express …… People Express … OgilvyOgilvy …… VirginVirgin
…… eBayeBay …… AmazonAmazon … Sony… Sony …… AmgenAmgen …… BMWBMW … CNN … … CNN … NikeNike
Built to Last vs Built for Impact“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it
will become ever more fleeting. The ultimate The ultimate aim of a business oraim of a business orgganization, an anization, an artist, an athlete or a stockbroker artist, an athlete or a stockbroker mamayy be to ex be to expplode in a dramatic lode in a dramatic frenzfrenzyy of value creation durin of value creation duringg a a
short sshort sppace of time, rather than to ace of time, rather than to live foreverlive forever.”.” —Kjell Nordström and Jonas Ridderstråle,
Funky Business
EXCELLENCE. EXCELLENCE.
VALUE ADDED.VALUE ADDED.UP THE LADDER.UP THE LADDER.
EXCELLENCE I. EXCELLENCE 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
Huge: Customer SatisfactionSatisfaction versus
Customer
SuccessSuccess
EXCELLENCE.EXCELLENCE.NECESSITY.NECESSITY.
OPPORTUNITY. OPPORTUNITY.
“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be
afraid of irrelevance; ‘outsourcing’ is just another
way of saying that … yyou’ve ou’ve become become
irrelevant toirrelevant to yyour our
customerscustomers.”.”
—John Battelle/Point/Advertising Age/07.05
““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”
oror … …
Are you … ““Rock Rock Stars of the Stars of the
AAgge of Talente of Talent””
EXCELLENCE.EXCELLENCE.
SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.PSF. (PSF++)PSF. (PSF++)
Department Head to …
ManaginManaging g
PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..
TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five
Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence
The PSF35: The Work & The Legacy
1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”
Point of Point of View!View!
Core Mechanism:“Game-changing Solutions”
PSFPSF (Professional Service Firm “model”/The Organizing Principle)
+
Brand YouBrand You(“Distinct” or “Extinct”/The Talent)
+
Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)
EXCELLENCE. EXCELLENCE.
ATTITUDE.ATTITUDE.TRANSFORMATION.TRANSFORMATION.
PSF.PSF.
Are you the …
““PrinciPrincippal al EnEnggineine of of
Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?
“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)
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
EXCELLENCE II. EXCELLENCE 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
“The [Starbucks] Fix” Is on …
“We have “We have identified a identified a
‘third place.’‘third place.’ And I really believe that sets us apart. The
third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District
Manager
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION
Spellbinding Spellbinding ExperiencesExperiences
Gamechanging SolutionsServicesGoods
Raw Materials
CCXXOO**Chief eXperience Officer
EXCELLENCE. EXCELLENCE. DRAMATIC.DRAMATIC.
DIFFERENCE.DIFFERENCE.DOABLE.DOABLE.
$79$7988
$415$415/SqFt/Wal*Mart$$798798/SqFt/Whole
Foods
EXCELLENCE. EXCELLENCE. NO EXCUSES.NO EXCUSES.
WallopWal*Mart1WallopWal*Mart16*6*
*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company
The “Small Guys” Guide: Wallop Wal*Mart16**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Wal*Mart.)Wal*Mart.)**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)
**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)
Jim’s GroupJim’s Group
Jim Penman/“Empire Builders”/MT /Jan/Feb 2006/Australia
The “Missing 900M”
Will the Boat Sink the Will the Boat Sink the Water: The Life of Water: The Life of China’s PeasantsChina’s Peasants
—Chen Guidi and Wu Chuntao
What I’ve What I’ve Learned about Learned about
“Small “Small Business”Business”
Tom PetersTom Peters
Passion for PRODUCT.Passion for PRODUCT.OBSESSION With ProductOBSESSION With Product..
LOVE LOVE The Product.The Product.Aim To Be Aim To Be “ONLY ONES WHO DO WHAT WE DO.”“ONLY ONES WHO DO WHAT WE DO.”
Keep Keep ADDIN’ADDIN’ Stuff. Stuff.Invest “UNWISELY” in R&D.Invest “UNWISELY” in R&D.
Reside Permanently In The Reside Permanently In The DISCOMFORTDISCOMFORT Zone. Zone.“Unhealthy” “Unhealthy” PARANOIA PARANOIA Is A Good Thing.Is A Good Thing.
Add Clients ThatAdd Clients That PUSH-PULL. PUSH-PULL.SELL.SELL. SELL. SELL. SELL.SELL. SELL. SELL.
Go For Broke: Go For Broke: CUSTOMER CONTACT PEOPLE.CUSTOMER CONTACT PEOPLE.PERFECTION:PERFECTION: Customer Contact People. Customer Contact People.
Hire for Hire for ATTITUDE.ATTITUDE.INVITE INVITE On An Adventure.On An Adventure. GREATGREAT CFO/Biz Guy-Gal. CFO/Biz Guy-Gal. NASTYNASTY CFO/Biz Guy-Gal. CFO/Biz Guy-Gal.
QUADRANGULAR LEADERSHIP:QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic- Visionary-Talent Fanatic-Project Manager-I.P.M.Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)(I.P.M. = Inspired Profit Mechanic)
I [“Bacteria Man”] HEREBY PLEDGE:When asked, “What are some examples
of companies stepping up to today’s
challenges?” … I will … NEVER NEVER AGAINAGAIN … offer an example of a Giant Company; instead I’ll refer to
Cirque du Soleil, Donnelly’s Weatherstrip Service, 3K tanning salons, 10.6M women-owned businesses (or the
typically/95+% female recipients of micro-lending) …*
*There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
EXCELLENCE III. EXCELLENCE III.
DREAM IT.DREAM IT.
Furniture vs. Dreams“We do not sell ‘furniture’ at
Domain. We sell We sell dreamsdreams. This is
accomplished by addressing the half-formed needs in our
customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.” — Judy George, Domain Home Fashions
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
The Value-added Ladder/ EMOTIONEMOTION
Dreams Come TrueDreams Come TrueSpellbinding Experiences Gamechanging Solutions
ServicesGoods
Raw Materials
Big BlueBig Blue
EXCELLENCE IV. EXCELLENCE IV. LOVE ITLOVE IT..
“Brands have run out
of juice. They’re
dead.” —Kevin Roberts/Saatchi &
Saatchi
Kevin Roberts:
LovemarLovemarksks!!
Top 10 “Tattoo Brands”*
Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8
Coke …. 7.7Coke …. 7.7Google .... 6.6Google .... 6.6Pepsi .... 6.1Pepsi .... 6.1Rolex …. 5.6Rolex …. 5.6Nike …. 4.6Nike …. 4.6
Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6
Nintendo …. 1.5Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
The Value-added Ladder/ ECSTASYECSTASY
LovemarkLovemark Dreams Come True
Spellbinding ExperiencesGamechanging Solutions
ServicesGoods
Raw Materials
Up,Up, Up,Up, Up, Up,
UpUp
the Value-added Ladder.
Ladder.2006: 4 of Ladder.2006: 4 of 7!7!
Lovemark Lovemark Dreams Come TrueDreams Come True
Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions
ServicesGoods
Raw Materials
EXCELLENCE.EXCELLENCE.
SOUL I.SOUL I.THE STORY.THE STORY.
““StorytellinStorytelling g
is the core is the core of culture.”of culture.”
—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
Best Best story story wins!wins!
MarketMarket Power = Power = StoryStory Power Power
EXCELLENCE. EXCELLENCE.
SOUL II.SOUL II.DESIGN.DESIGN.
All Equal Except …“At Sony we assume that all products of our competitors
have basically the same technology, price, performance and features. DesiDesiggn is the n is the
onlonlyy thin thingg that that differentiates one differentiates one
pproduct from another roduct from another in the marketin the marketpplacelace.”.” —
Norio Ohga
“Design is treated like treated like a religiona religion at
BMW.” —Fortune
“We don’t have a good language to talk about this kind of thing. In
most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning
of design. Design is the Design is the fundamentalfundamental soulsoul
of a man-made of a man-made creation.”creation.” —Steve Jobs
CCDDOO**Chief Design Officer
EXCELLENCE. EXCELLENCE.
WHAT MATTERS.WHAT MATTERS.
“What Isn’t Matter Is
What Matters”
—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld,
James Twitchell
VA “Teaching Moment”
““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the
wall …”wall …”
EXCELLENCE.EXCELLENCE.
NEW MARKETS.NEW MARKETS.ENORMOUS. ENORMOUS.
OPPORTUNITIES.OPPORTUNITIES.
EXCELLENCE. EXCELLENCE.
OPPORTUNITY.OPPORTUNITY.
“Women are thethe
majority market”
—Fara Warner/The Power of the Purse
1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.
10. 10. Women’s Women’s Market = Market =
Opportunity Opportunity No. 1.No. 1.
“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have
leaders who leaders who represent the represent the population we population we
serveserve.”.” —Steve Reinemund/PepsiCo
Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;
not via kids)
Home DepotHome Depot (“Do it [everything!] Herself”)
P&GP&G (more than “house cleaner”)
DeBeersDeBeers (“right-hand rings”/$4B)
AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)
NikeNike (> jock endorsements; new def sports; majority consumer)
AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)
Source: Fara Warner/The Power of the Purse
““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed andeveloped an index of 115 index of 115
comcomppanies poised to benefit from anies poised to benefit from women’s increased women’s increased ppurchasinurchasingg
ppowerower; ; over the past decade the over the past decade the value of shares in Goldman’s value of shares in Goldman’s
basket hasbasket has risen by risen by 9696%%, against , against the Tokyo stockmarket’s rise of the Tokyo stockmarket’s rise of
1313%%.”.”
—Economist, April 15
EXCELLENCE. EXCELLENCE.
OPPORTUNITY.OPPORTUNITY.
2000-2010 Stats
18-44: -1%-1%55+: ++2121%%(55-64: ++4747%%)
44-65: “New “New Customer Customer Majority”Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
EXCELLENCE. EXCELLENCE.
INNOVATE. INNOVATE. OR. DIE.OR. DIE.
“A focus on cost-cutting and efficiency has helped many organizations weather
the downturn, but this approach will ultimately render them obsolete. OnlOnlyy the constant the constant
ppursuit of innovation ursuit of innovation can ensure loncan ensure long-g-term successterm success.”.”
—Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)
More than $$$$
#1#1 R&D
spending, last 25 years?
GGMM
New Economy?!
Genentech09, Genentech09, Amgen09Amgen09
> Merck09 (70K-3/394B-5)
PathPatheticetic!!
“Forbes100” from 1917 to 1987: 3939 members of the Class of ’17 were alive members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly “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: 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 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
Scale?
“Microsoft’s Struggle With
Scale”Scale” —Headline, FT, 09.2005
“Troubling ExitsExits at Microsoft” —Cover Story, BW, 09.2005
“Too BigToo Big to Move Fast?” —Headline, BW, 09.2005
““[Dell’s] predicament may be intractable.[Dell’s] predicament may be intractable. Dell Dell remained slavishly loyal to its core idea of ultra-efficient remained slavishly loyal to its core idea of ultra-efficient
supply-chain management and direct sales to customers, even supply-chain management and direct sales to customers, even as rivals have stepped up their game. … Instead of adapting, as rivals have stepped up their game. … Instead of adapting, critics say, Dell cut costs in ways that compromised customer critics say, Dell cut costs in ways that compromised customer
service and, possibly, product quality.”service and, possibly, product quality.” —BW, 0904
““They’re a one-trick pony. It was a great trick They’re a one-trick pony. It was a great trick for over 10 years.”for over 10 years.” —tech exec/BW
““Dell’s culture is not inspirational or Dell’s culture is not inspirational or aspirational.aspirational. This is when they need to be imaginative, This is when they need to be imaginative, but [Dell’s] culture only wants to talk about execution.”but [Dell’s] culture only wants to talk about execution.” —
Geoffrey Moore
““There are some organizations where people There are some organizations where people think they’re a hero if they invent a new thing. think they’re a hero if they invent a new thing.
Being a hero at Dell means saving money.”Being a hero at Dell means saving money.” —Kevin Rollins, CEO
“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
““Conglomerates Conglomerates don’t work.”don’t work.”
—James Surowiecki, The New Yorker
“Acquisitions are about buying market share.
Our challenge is Our challenge is to create to create
marketsmarkets.. There is a big difference.”
—Peter Job, former CEO, Reuters
Free at Last: Most Recent Chapter in a Long-running Saga
Freescale Freescale SemiconductorSemiconductor*
*$16B$16B
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
EXCELLENCE. EXCELLENCE. INNOVATION.INNOVATION.
THE REAL STORY. THE REAL STORY.
““Recently I asked three corporate Recently I asked three corporate executives what decisions they had made executives what decisions they had made in the last year that would not have been in the last year that would not have been
made were it not for their corporate made were it not for their corporate plans. All had difficulty identifying one plans. All had difficulty identifying one such decision. Since all of the plans are such decision. Since all of the plans are
marked ‘secret’ or ‘confidential,’marked ‘secret’ or ‘confidential,’ I asked I asked them how their comthem how their comppetitors mietitors migght ht benefit frombenefit from p possession of their ossession of their
pplans. Each answered with lans. Each answered with embarrassment that their embarrassment that their
comcomppetitors would not benefitetitors would not benefit.”.” —Russell Ackoff (from Henry Mintzberg,
The Rise and Fall of Strategic Planning)
The Perils of Conservatism/The Perils of Conservatism/IndustrIndustryy Leadershi Leadershipp
“ ‘“ ‘GoodGood management’ was management’ was the most powerful reason the most powerful reason
[leading firms] failed to stay [leading firms] failed to stay atop their industries.atop their industries. Precisely Precisely
because these firms listened to their because these firms listened to their customers, invested aggressively in customers, invested aggressively in
technologies that would provide their technologies that would provide their customers more and better products of the customers more and better products of the
sort they wanted, and because they sort they wanted, and because they carefully studied market trends and carefully studied market trends and
systematically allocated investment capital systematically allocated investment capital to innovations that promised the best to innovations that promised the best
returns, they lost their positions of returns, they lost their positions of leadership.”leadership.”
—Clayton Christensen, The Innovator’s Dilemma
““A pattern emphasized in the case A pattern emphasized in the case studies in this book is the degree to studies in this book is the degree to which powerful competitors not only which powerful competitors not only resist innovative threats, but actually resist innovative threats, but actually resist all efforts to understand them, resist all efforts to understand them, preferring to further their positions preferring to further their positions in older products.in older products. This results in a
surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of
impending death.” —Jim Utterback, Mastering the
Dynamics of Innovation
The Mess Is the Message! Period!An Economic Interpretation of the ConstitutionAn Economic Interpretation of the Constitution
of the United States of the United States —Charles Beard (1913)
The Box: How the Shipping Container Made the World The Box: How the Shipping Container Made the World Smaller and the World Economy BiggerSmaller and the World Economy Bigger —Marc Levinson
Tube: The Invention of TelevisionTube: The Invention of Television —David & Marshall Fisher
Empires of Light: Edison, Tesla, Westinghouse, Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the Worldand the Race to Electrify the World —Jill Jonnes
The Soul of a New MachineThe Soul of a New Machine —Tracy Kidder
Rosalind Franklin: The Dark Lady of DNARosalind Franklin: The Dark Lady of DNA —Brenda Maddox
The Blitzkrieg MythThe Blitzkrieg Myth —John Mosier
LessonsNeed-drivenNeed-driven
A thousand “parents”A thousand “parents”MessyMessy
EvolutionaryEvolutionary“Trivial”“Trivial”
RelentlessRelentless Experimentation ExperimentationTrial Trial & & many, many eRRORsmany, many eRRORs
“Real heroes” seldom around when the battle is won“Real heroes” seldom around when the battle is wonLoooong time for systemic adaptation/sLoooong time for systemic adaptation/s
(many innovations) (bill of lading, standard time)
Not …“Plan-driven”“Plan-driven”
The product of “Strategic Thinking/Planning”The product of “Strategic Thinking/Planning”The product of “focus groups”The product of “focus groups”
Get mad.Get mad. Do Do something something
about it. about it. Now.Now.
Fooled by Fooled by RandomnessRandomness: :
The Hidden Role The Hidden Role of Chance in Life of Chance in Life and the Marketsand the Markets
—Nassim Nicholas Taleb
““We are in a We are in a brawl with no brawl with no
rules.”rules.” —Paul Allaire
S.A.V.S.A.V.
What “We” Know “For Sure” About InnovationBig mergers don’t workBig mergers don’t work
Scale is over-ratedScale is over-ratedStrategic planning is the last refuge of scoundrelsStrategic planning is the last refuge of scoundrels
Focus groups are counter-productiveFocus groups are counter-productive“Built to last” is a chimera (stupid)“Built to last” is a chimera (stupid)
Success killsSuccess kills“Forgetting” is impossible“Forgetting” is impossible
Re-imagine is a charming ideaRe-imagine is a charming idea“Orderly innovation process” is an oxymoronic phrase“Orderly innovation process” is an oxymoronic phrase
(= Believed only by morons with ox-like brains) (= Believed only by morons with ox-like brains)“Tipping points” are easy to identify …“Tipping points” are easy to identify … long after they will do you any good long after they will do you any good
“Facts” aren’t“Facts” aren’tAll information making it to the top is filteredAll information making it to the top is filtered
to the point of danger and hilarity to the point of danger and hilarity“Success stories” are the illusions of egomaniacs (and “gurus”)“Success stories” are the illusions of egomaniacs (and “gurus”)
If you believe the memoirs of CEOs you should be institutionalizedIf you believe the memoirs of CEOs you should be institutionalized“Herd behavior” (XYZ is “hot”) is ubiquitous“Herd behavior” (XYZ is “hot”) is ubiquitous
… and amusing … and amusing“Top teams” are “Dittoheads”“Top teams” are “Dittoheads”
CEOs have little effect on performanceCEOs have little effect on performance“Expert” prediction is rarely better than rolling the dice“Expert” prediction is rarely better than rolling the dice
InnoTacsInnoTacs
We We becomebecome who we who we
spend time spend time with!with!
Measure “Strangeness”/Portfolio QualityStaffStaff
ConsultantsConsultantsVendorsVendors
Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners
CustomersCustomersCompetitors 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 Location
Lunch MatesLunch MatesLanguageLanguage
BoardBoard
“The The Bottleneck Bottleneck
Is at the Top Is at the Top of the of the
Bottle”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:
AtAt thethe totop!”p!”
— Gary Hamel/Harvard Business Review
Keep Austin Keep Austin WeirdWeird
futuremarkfuturemark
““Don’t Don’t benchmark, benchmark, futuremark!futuremark!
”” Impetus: “The future is already here; it’s just
not evenly distributed” —William Gibson
““To grow, companies To grow, companies need to break out of a need to break out of a
vicious cycle of vicious cycle of competitive competitive
benchmarking and benchmarking and imitation.”imitation.” —W. Chan Kim & Renée Mauborgne,
“Think for Yourself —Stop Copying a Rival,” Financial Times/2003
Find ’em!Find ’em!
““Somewhere in your Somewhere in your organization, groups of organization, groups of
people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and
better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and
fan the flamesfan the flames.”.”
—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR
Demos!Demos! Heroes! Heroes! Stories!Stories!
““Never doubt that a Never doubt that a small group of small group of
committed peoplecommitted people can change the can change the
world. Indeed it isworld. Indeed it is the only thing that the only thing that ever has.”ever has.” —Margaret Mead
send ’em on send ’em on
a quest!a quest!
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 Excellence
“free to do his or her free to do his or her absolute best” …absolute best” …
“allow its members to “allow its members to discover their discover their greatness.”greatness.”
Concoct a Concoct a Parallel Parallel
universe!universe!
“SkunkWorks”/ “ParallelUniverse”
“the 1%1% solution”
Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
““Venture” Venture” fund:fund: Gerstner/Amex, Dow/Marriott, Grove/Intel,
Bedbury/Starbucks
Forward, march: The “Sri Lanka Stratagem”
ACTION ACTION “culture”“culture”
““ExperimenExperiment t
fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
“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. 5No. 5. By the time our rivals are ready with wires and screws, we are on version
No. 10No. 10.. It It ggets back to ets back to pplanninlanningg versus actin versus actingg: We act : We act from dafrom dayy one; others one; others p plan how lan how
to to pplan—for monthslan—for months.”.” —Bloomberg by Bloomberg
tolerate tolerate [encourage?] [encourage?]
failurefailure
““Fail . Forward. Fail . 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!
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 tabletable
“[Immelt] is now identifying technologies with which GE
will … systematically systematically set out to build set out to build
entirely new entirely new industriesindustries”” —Strategy+Business, Fall
2005
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?
Inno64: Inno64: Innovation Innovation StrategiesStrategies & Tactics & Tactics
Parallel universeParallel universe /Exec Ed v res MBA/Exec Ed v res MBAEnd run regnant powers/JKCEnd run regnant powers/JKCFind done deals-practicing mavericks/Stone-ReGoFind done deals-practicing mavericks/Stone-ReGoBell curves2016 in 2006Bell curves2016 in 2006Non-industry benchmarkingNon-industry benchmarkingEverything = PortfolioEverything = PortfolioV.C.s all!V.C.s all!Hot language/Wow-Astonish me-Insanely Hot language/Wow-Astonish me-Insanely great-immortal-Make something greatgreat-immortal-Make something greatLead customers/PW-EmbraerLead customers/PW-EmbraerLead suppliers /Top decile R&DLead suppliers /Top decile R&DWeird alliancesWeird alliancesMottos/Paul Arden (“Whatever You Think Mottos/Paul Arden (“Whatever You Think Think the Opposite”)Think the Opposite”)Hire freaks/Enough weird people?Hire freaks/Enough weird people?Weird Boards!!!Weird Boards!!!
EXCELLENCE. EXCELLENCE. INNOVATION.INNOVATION. REVOLUTION. REVOLUTION.
ORGANIZATION.ORGANIZATION.
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 Entrepreneurship18. 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)
Itinerant. Itinerant. Potential. Potential. Machines.Machines.
TALENT POOL TO DIE FOR.TALENT POOL TO DIE FOR. Youthful. Youthful. Insanely energetic. Value creativity. Risk Insanely energetic. Value creativity. Risk taking is routine.taking is routine. Failing is normal … if Failing is normal … if you’re stretching. Want to “make their you’re stretching. Want to “make their
bones” in “the revolution.” Love the new bones” in “the revolution.” Love the new technologies. Well rewarded. technologies. Well rewarded. Don’t plan Don’t plan
to be around 10 years from now.to be around 10 years from now.
TALENT POOL PLUS.TALENT POOL PLUS. Seek out and Seek out and work with “world’s best” as needed work with “world’s best” as needed
(it’s often needed). (it’s often needed). “We aim to change “We aim to change the world, and we need gifted the world, and we need gifted
colleagues—who well may not be on colleagues—who well may not be on our payroll.”our payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP.BRASSY-BUT-GROUNDED-LEADERSHIP. “Visionary” leaders matched by leaders with “Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A shrewd business sense: “HOW DO WE TURN A PROFIT ON THIS GORGEOUS IDEA?” Appreciate PROFIT ON THIS GORGEOUS IDEA?” Appreciate
“market creation” as much as or more than “market creation” as much as or more than “market share growth.” “market share growth.” ARE INSANELY AWARE ARE INSANELY AWARE
THAT MARKET LEADERS ARE ALWAYS IN THAT MARKET LEADERS ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT MARKET PRECARIOUS POSITIONS, AND THAT MARKET SHARE WILL NOT PROTECT US, IN TODAY’S SHARE WILL NOT PROTECT US, IN TODAY’S VOLATILE WORLD, FROM THE NEXT KILLER VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND KILLER ENTREPRENEUR.IDEA AND KILLER ENTREPRENEUR. (Gates. (Gates. Ellison. Venter. McNealy. Walton. Case. Etc.)Ellison. Venter. McNealy. Walton. Case. Etc.)
ALLIANCE MANIACS.ALLIANCE MANIACS. Don’t assume Don’t assume that “the best resides within.” that “the best resides within.” WORK WORK WITH A SHIFTING ARRAY OF STATE-WITH A SHIFTING ARRAY OF STATE-OF-THE-ART PARTNERS FROM ONE OF-THE-ART PARTNERS FROM ONE
END OF THE “SUPPLY CHAIN” TO END OF THE “SUPPLY CHAIN” TO THE OTHERTHE OTHER. Including vendors and . Including vendors and consultants and … who especially … consultants and … who especially …
PIONEERING CUSTOMERS … will PIONEERING CUSTOMERS … will “pull us into the future.”“pull us into the future.”
POTENTIAL MACHINES-POTENTIAL MACHINES-ORGANISMS.ORGANISMS. Don’t know Don’t know
what’s coming next. But are what’s coming next. But are ready to jump at ready to jump at
opportunities, especially opportunities, especially those that challenge-those that challenge-
overturn our own “way of overturn our own “way of doing things.”doing things.”
““Crazy Times Call Crazy Times Call for Crazy for Crazy
Organizations”Organizations” —Subtitle, The Tom Peters Seminar (1993)
EXCELLENCE. EXCELLENCE.
4/40.4/40.
4/404/40
De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!
“‘“‘DecentralizatioDecentralization’ is n’ is notnot a piece a piece of paper. It’s of paper. It’s notnot me. It’s either in me. It’s either in
your heart, or your heart, or not.”not.”
—Brian Joffe/BIDvest
Ex-e-Ex-e-cu-cu-
tion!tion!
““ExecutionExecution is is thethe j jobob of of
the business the business leader.”leader.” —Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
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 denial in the pplacelace.”.” —Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
6:15A.M6:15A.M..
EXCELLENCE. EXCELLENCE.
ACTION.ACTION.ROOTS.ROOTS.
GRANTGRANT
“One of my superstitions had always been when I
started to go anywhere or to do anything, not to not to turn backturn back, or stop, until the thing intended was accomplished.” —Grant
NELSONNELSON
On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than
anxious to win”anxious to win”
BOSSIDYBOSSIDY
“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
PEROTPEROT
READY.READY.FIRE!FIRE!AIM.AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
MASTERSMASTERS
“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
KELLEHER KELLEHER
““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher
PETERS-PETERS-WATERMANWATERMAN
In Search of Excellence/1982/The Bedrock “Eight Basics”
1. A Bias for A Bias for ActionAction
2. 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”
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.TALENT.TALENT.
Brand Brand = =
Talent.Talent.
“The role of the Director is to create a space where
the actor or actress can become more than become more than they’ve ever been they’ve ever been before, more than before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance
Our MissionTo 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
““Leaders Leaders
‘‘dodo’’ people. people.
Period.”Period.” —Anon.
Hire Hire ververy y good good
people!people!
“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-
Pacific changed 2020 of his 4040 box plant managers to
put more talented, higher paid managers in charge. He increased profitability from
$$2525 million to $$8080 million in 22 years.”
—Ed Michaels, War for Talent
DDDD$21M$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; 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.
A Few Lessons from the ArtsEach hired and developed and evaluated in unique waysEach hired and developed and evaluated in unique ways
(23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators)
Attitude/Enthusiasm/Energy paramountAttitude/Enthusiasm/Energy paramountRe-lent-less!Re-lent-less!
“Practice is cool”“Practice is cool” (G Leonard/Mastery)
Team Team and and individual individual Aspire to Aspire to EXCELLENCE EXCELLENCE = Obvious= Obvious
Ex-e-cu-tionEx-e-cu-tionTalent = Brand = DuhTalent = Brand = Duh“The Project” rules“The Project” rulesEmotional languageEmotional language
Bit players. No.Bit players. No.B.I.WB.I.W. (everything)
Delta events = Delta rostersDelta events = Delta rosters (incl leader/s)
Re-imaRe-imaggineinePeoPeopple Power:le Power: The Talent The Talent5050
The Talent501. People first!1. People first!2. Soft is Hard. 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/Intellectual- Age of Talent/ Creativity/Intellectual- capital Added. capital Added.4. Talent “excellence” in every part of 4. Talent “excellence” in every part of thethe organization. organization.5. P.O.T./Pursuit Of Talent = Obsession.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.6. HR sits at The Head Table.7. HR is “cool.”7. HR is “cool.”
50. Talent Talent = Brand.= Brand.
EXCELLENCE. EXCELLENCE. WOMEN.WOMEN.
RULE.RULE.
““AS AS LEADERS, LEADERS, WOMEN WOMEN
RULERULE:: New Studies find that female managers outshine their male
counterparts in almost every measure”Title, Special Report/BusinessWeek
WOMENWOMEN
DOMINATE DOMINATE ECONOMIC ECONOMIC GROWTH.GROWTH.
““Forget China, Forget China, India and the India and the
Internet: Economic Internet: Economic Growth Is Driven Growth Is Driven by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
EXCELLENCE. EXCELLENCE. INDIVIDUAL.INDIVIDUAL.BRAND YOU.BRAND YOU.
““If there is nothing If there is nothing very special about very special about your work,your work, no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and
that increasingly means you that increasingly means you won’t get paid much either.”won’t get paid much either.”
—Michael Goldhaber, Wired
New Work SurvivalKit.20061. Mastery!Mastery! (Best/Absurdly Good at Something!)2. “Manage” to Legacy“Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)3. A “USP”/Unique Selling PropositionA “USP”/Unique Selling Proposition (R.POV8: Remarkable Point of View … captured in 8 or less words) 4. Rolodex ObsessionRolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. Entrepreneurial InstinctEntrepreneurial Instinct (A sleepless … Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of Monster Project)6. CEO/Leader/Businessperson/CloserCEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!)7. Master of ImprovMaster of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)8. Sense of HumorSense of Humor (A willingness to Screw Up & Move On)9. Comfortable with Your SkinComfortable with Your Skin (Bring “interesting you” to work!)10. Intense Appetite for TechnologyIntense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?)11. Embrace “Marketing”Embrace “Marketing” (Your own CSO/Chief Storytelling Officer)12. Passion for RenewalPassion for Renewal (Your own CLO/Chief Learning Officer) 13. Execution Excellence!Execution Excellence! (Show up on time! Leave last!)
DistinctDistinct … or
… ExtinctExtinct
EXCELLENCE. EXCELLENCE. ABSENT: THE ABSENT: THE
SCHOOLS SCHOOLS FIASCO. FIASCO.
“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE:
About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached
SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the
group as a ‘closet artist.’ The point is:
Every school I visitedEvery school I visited was participating in was participating in
the systematic suppression the systematic suppression of creative genius of creative genius.”
Source: Gordon MacKenzie, Orbiting the Giant Hairball
Ye gads: ““Thomas Stanley has not only found Thomas Stanley has not only found no correlation between success in school and no correlation between success in school and an ability to accumulate wealth, he’s actually an ability to accumulate wealth, he’s actually found a nefound a neggative correlationative correlation. ‘It seems that . ‘It seems that
school-related evaluations are poor school-related evaluations are poor predictors of economic success,’ Stanley predictors of economic success,’ Stanley
concluded. What did predict success was a concluded. What did predict success was a willingness to take risks. Yet the success-willingness to take risks. Yet the success-
failure standards of most schools penalized failure standards of most schools penalized risk takers. risk takers. Most educational systems reward Most educational systems reward those who play it safe. As a result, those who those who play it safe. As a result, those who
do well in school find it hard to take risks do well in school find it hard to take risks later onlater on.”.” —Richard Farson & Ralph Keyes,
Whoever Makes the Most Mistakes Wins
15 “Leading” Biz Schools
DesignDesign/Core: 00Design/Elective: 1
CreativitCreativityy/Core: 00Creativity/Elective: 4
InnovationInnovation/Core: 00Innovation/Elective: 6
Source: DMI/Summer 2002/Research by Thomas Lockwood
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.PURPOSE.PURPOSE.
““I never, ever thought I never, ever thought of myself as a of myself as a
businessman. businessman. I was I was interested in interested in
creating things I creating things I would be proud would be proud
ofof.”.” —Richard Branson
““People want to be part People want to be part of something larger of something larger
than themselves. They than themselves. They want to be part of want to be part of
something they’re really something they’re really proud of, that they’ll proud of, that they’ll
fight for, sacrifice for , fight for, sacrifice for , trust.”trust.”
—Howard Schultz, Starbucks (IBD/09.05)
EXCELLENCE. BY EXCELLENCE. BY
INVITATION.INVITATION.
“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] I [Yet] I came to see in my came to see in my time at IBM that time at IBM that
culture isn’t just one culture isn’t just one aspect of the game—it aspect of the game—it isis the game.” the game.” —Lou Gerstner,
Who Says Elephants Can’t Dance
“In the end, management doesn’t
change culture. Management
invitesinvites the workforce itself to change the culture.”
—Lou Gerstner
EXCELLENCE.EXCELLENCE.ENTHUSIASM.ENTHUSIASM.
ENERGY. ENERGY. PASSION.PASSION.
““Before you can inspire Before you can inspire with emotion, you must be with emotion, you must be swamped with it yourself. swamped with it yourself. Before you can move their Before you can move their tears, your own must flow. tears, your own must flow.
To convince them, you To convince them, you must yourself believe.”must yourself believe.” —
Winston Churchill
““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”
—Samuel Taylor Coleridge
““Most important,Most important,
he he uppedupped the the energyenergy levellevel at at
Motorola.”Motorola.” —Fortune on Ed Zander/08.05
EXCELLENCE. EXCELLENCE.
RELENTLESSNESS.RELENTLESSNESS.
RE-LENT-RE-LENT-LESS-LESS-NESSNESS
BLOOD-Y-BLOOD-Y-MIND-ED-MIND-ED-
NESSNESS
Bloodyminded: Unreasonably
stubborn
Source: The Random House Dictionary of the English Language
““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
““It is no use It is no use saying ‘We are saying ‘We are doing our best.’doing our best.’ You have got to You have got to succeed in doing succeed in doing
what is what is necessary.”necessary.” —WSC
EXCELLENCE. EXCELLENCE.
AGILITY.AGILITY.
““The most The most successful successful
people are those people are those who who
are good at plan are good at plan B.”B.”
—James Yorke, mathematician, on chaos theory, in The New Scientist
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.SELF-SELF-
MANAGEMENT.MANAGEMENT.
X.Step #1:Buy a Mirror!Buy a 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
EXCELLENCE. EXCELLENCE. SHOWING UP.SHOWING UP.
2255
MBWMBWAA
“You must bebe the change you
wish to see in the world.”
Gandhi
You = Your You = Your calendar*calendar*
*Calendars NEVERNEVER lie!!
EXCELLENCE. EXCELLENCE.
STRETCH.STRETCH.
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
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!!
EXCELLENCE. EXCELLENCE. THINK BIG.THINK BIG.
“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!
“Incrementalism“Incrementalism is innovation’s is innovation’s
worstworst enemy.” enemy.” —Nicholas Negroponte
Five MYTHS About Changing Behavior*Crisis is a powerful impetus for change*Change is motivated by fear*The facts will set us free
*Small, gradual changesSmall, gradual changes are always easier to are always easier to make and sustain make and sustain*We can’t change because our brains become “hardwired” early in life
Source: Fast Company
EXCELLENCE. EXCELLENCE.
THE LEADERSHIP23.THE LEADERSHIP23.
Leadership23/ML1. Enthusiasm. Energy. Exuberance.1. Enthusiasm. Energy. Exuberance.2. Action. Execution.2. Action. Execution.3. Tempo. Metabolism.3. Tempo. Metabolism.4. Relentless.4. Relentless.5. Master of Plan B.5. Master of Plan B.6. Accountability.6. Accountability.7. Meritocracy.7. Meritocracy.8. Leaders “do” people. Mentor. (“Success8. Leaders “do” people. Mentor. (“Success creation business.”)creation business.”)9. Women. Diversity.9. Women. Diversity.10. Integrity. Credibility. Humanity. Grace.10. Integrity. Credibility. Humanity. Grace.11. Realism.11. Realism.12. Cause. Adventures. Quests.12. Cause. Adventures. Quests.
Leadership23/ML13. Legacy.13. Legacy.14. Best story wins.14. Best story wins.15. On the edge. (“Wildest chimera of a15. On the edge. (“Wildest chimera of a moonstruck mind.”)moonstruck mind.”)16. “Reward excellent failures. Punish 16. “Reward excellent failures. Punish mediocre successes.”mediocre successes.”17. Different > Better. (“Only ones who do17. Different > Better. (“Only ones who do what we do.”)what we do.”)18. MBWA. Customer MBWA.18. MBWA. Customer MBWA.19. Laughs.19. Laughs.20. Repot. Curiosity. Why?20. Repot. Curiosity. Why?21. You = Calendar. “To Don’t.” Two.21. You = Calendar. “To Don’t.” Two.22. Excellence. Always.22. Excellence. Always.23. Nelsonian! (“Other admirals more afraid23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)of losing than anxious to win.”)
EnthusiasmEnthusiasmEnergyEnergy
ExuberanceExuberanceVoracious CuriosityVoracious Curiosity
Irritability/Dis-satisfactionIrritability/Dis-satisfactionRelentlessnessRelentlessnessSelf-relianceSelf-reliance
“Closer” (Execution)“Closer” (Execution)excellenceexcellence
EXEXCELLE CELLE ALWALWAYSAYS..
You only You only find oil if find oil if you drill you drill
wellswells.. —The Hunters, by John Masters,
Canadian O & G wildcatter
EXEXCELLE CELLE ALWALWAYSAYS..