the “guru gaffe s ” “hall of shame”: the “over-rated eight”!

Welcome to Tom Peters “PowerPoint World”!Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides Beyond the set of slides here, you will find at here, you will find at tompeters.comtompeters.com the last eight years of the last eight years of presentations, a basketful of “Special Presentations,” and, above all, presentations, a basketful of “Special Presentations,” and, above all, Tom’s Tom’s constantly updatedconstantly updated Master PresentationMaster Presentation—from which most of the —from which most of the slides in this presentation are drawn. There are about 3,500 slides in slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: the main argument: Part IPart I is context. is context. Part IIPart II is devoted entirely to innovation—the sine qua is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. presentation—now it is front and center and a stand-alone. Part IIIPart III is a is a variation on the innovation theme—but it is organized to examine the variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience EconomyExperience Economy) lays out a specific logic for necessarily leaving ) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. commodity-like goods and services in the dust. Part IVPart IV argues that in argues that in this age of “micro-marketing” there are two this age of “micro-marketing” there are two macromacro-markets of -markets of astounding size that are dramatically under-attended by all but a few; astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. namely women and boomers-geezers. Part VPart V underpins the overall underpins the overall argument with the necessary bedrock—Talent, with brief consideration argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. of Education & Healthcare. Part VI Part VI examines Leadership for turbulent examines Leadership for turbulent times from several angles.times from several angles. Part VII Part VII is a collection of a dozen Lists— is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.”way.”

Enjoy! Download! “Steal”—that’s the whole point!Enjoy! Download! “Steal”—that’s the whole point!

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

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

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

andand “Verdana”“Verdana”

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

World Marketing and Innovation ForumWorld Marketing and Innovation ForumBarcelona/14 November 2007Barcelona/14 November 2007

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

The “guru The “guru GaffeGaffess” “hall of ” “hall of

shame”: the shame”: the “Over-rated “Over-rated

Eight”!Eight”!

The “Over-rated Eight”:The “Over-rated Eight”:

Big companies!Public companies! “Cool” industries!

Stability!Famous CEOs!“Hard” stuff!“Success”!

Plans!

Over-rated:Over-rated:

Big companies

!Public companies! “Cool” industries!


Plans!

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

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

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

Dick Kovacevich: You don’t You don’t get better by get better by being bigger. being bigger.

You get You get worse.”worse.”

““Despite a decade of Despite a decade of banking mergers, there is banking mergers, there is

no evidence that big banks that big banks are any more efficient or are any more efficient or

profitable than their smaller profitable than their smaller rivals.”rivals.” —Financial Times,—Financial Times, 0329.07, on 0329.07, on

possible Barclays-ABN Amro merger possible Barclays-ABN Amro merger (“When it (“When it comes to asking the stock market whether comes to asking the stock market whether

bigger banks are better, bigger banks are better, the current answer is a resounding ‘no.” —Citigroup analysis, 2006) —Citigroup analysis, 2006)

““The Bigger They The Bigger They Are: Toyota Takes Are: Toyota Takes

a Tumble on a Tumble on Quality”Quality” —headline, —headline, International International

HeraldHerald, 1103-4.07, 1103-4.07

““Hope For Hope For Breakup Breakup

Advocates”Advocates” —headline, FT, —headline, FT, 1105.07, re Citigroup1105.07, re Citigroup

““Jeff Bewkes, the Next Jeff Bewkes, the Next Boss of Time-Warner, Boss of Time-Warner, Is Likely to Break Up Is Likely to Break Up the Company”the Company” —headline, —headline,

EconomistEconomist, 1110.07, 1110.07

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

performance data stretching back performance data stretching back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies. TheTheyy

found that found that none none of the of the lonlongg-term survivors mana-term survivors managged to ed to

outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial —Financial TimesTimes

#1 Exporter?#1 Exporter?

#4 Japan#4 Japan

#4 Japan#4 Japan#2T China#2T China#2T USA#2T USA

#4 Japan#4 Japan#2T china#2T china#2t USA#2t USA

#1 #1 GermanyGermany

Reason?Reason?

Daimler?Daimler?BASF?BASF?

Siemens?Siemens?Commerzbank?Commerzbank?

Reason!!!Reason!!!

MittelstandMittelstand

Or …Or … Goldmann Goldmann ProduktionProduktion

ss(11/50%/$5M/”dip and coat,” expensive (11/50%/$5M/”dip and coat,” expensive

pigments vs “through coloring,” fadesBekro pigments vs “through coloring,” fadesBekro Chemie)Chemie)

BavariaBavaria: Mittelstand within Mittelstand: Mittelstand within Mittelstand“Place to start over” post-WWII“Place to start over” post-WWII

13 million13 million66thth in EU if stand-alone in EU if stand-alone (CA #5)

4% unemployment4% unemploymentMunich government pro-businessMunich government pro-business

30 universities 30 universities (3 of 3 leading in R&D, with Baden-(3 of 3 leading in R&D, with Baden-Wuerttemberg)Wuerttemberg)

50% German patents 50% German patents (with Baden-Wuerttemberg)(with Baden-Wuerttemberg)SMEs & Big CosSMEs & Big Cos

“Hot” finance communities“Hot” finance communities“lion’s share” of German startups“lion’s share” of German startups

Media startups Media startups (SF: tech + media)

Source: Source: CNBC European BusinessCNBC European Business, November 2007, November 2007

““It suddenly It suddenly occurred to me …occurred to me …

““It suddenly occurred It suddenly occurred to me that in the to me that in the

space of two or three space of two or three hours he hours he nevernever

talked about cars.”talked about cars.” —Les —Les

WexnerWexner

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

wonder what wonder what unimaginable new unimaginable new

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

quickly brought forth quickly brought forth for our customersfor our customers

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


Big companies!

Public companies

! “Cool” industries!


Plans!

Family BusinessesFamily BusinessesTwo-thirds of total #sTwo-thirds of total #s of companies of companiesOne-half of biggest companiesOne-half of biggest companies>One-half GDP>One-half GDP>One-half employment>One-half employment6% more profitable6% more profitable7% better ROA7% better ROAHigher income growthHigher income growthHigher revenue growthHigher revenue growthSource: John Davis, HBSSource: John Davis, HBS

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

9494%% of loans to of loans to ……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner


Big companies!Public companies!

“Cool” industries!


Plans!

Jim’s Jim’s GroupGroup

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

etc.etc.

PRSX/Paragon PRSX/Paragon Railcar Railcar

Salvage*Salvage**Salvaged railcars into bridges, etc.*Salvaged railcars into bridges, etc.

**Lived in same town all adult lifeLived in same town all adult life*First generation that’s wealthy/*First generation that’s wealthy/ no parental support no parental support*“Don’t look like millionaires, don’t dress*“Don’t look like millionaires, don’t dress like millionaires, don’t eat like like millionaires, don’t eat like millionaires, don’t act like millionaires” millionaires, don’t act like millionaires”*“Many of the types of businesses [they]*“Many of the types of businesses [they] are in could be classified as ‘dull- are in could be classified as ‘dull- normal.’ normal.’ [They] are welding contractors, [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” diesel engines, paving contractors …”Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko



“Cool” industries!


Plans!

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

word.”word.”

Headline, Wall Street Journal, 3 October 2007: “Wal*Mart Era Wanes

Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed”

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

Cover, Cover, NewsweekNewsweek, 05 November 2007:, 05 November 2007: “Takedown? ONCE HAILED AS “Takedown? ONCE HAILED AS

A WORLDBEATER, THE A WORLDBEATER, THE INTERNET COLOSSUS NOW INTERNET COLOSSUS NOW HAS REAL RIVALS ALL OVER HAS REAL RIVALS ALL OVER

THE WORLD.”THE WORLD.”

[text followed by a massive rendition of the Google logo][text followed by a massive rendition of the Google logo]

GGOOOOGGLLEE

Q4/2006Q4/2006

+500,000+500,000 = ? = ? Source: Source: Barron’sBarron’s 0922.07 0922.07

Q4/2006Q4/2006

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

Source: Source: Barron’sBarron’s 0922.07 0922.07

““Natural selection is death. ... Natural selection is death. ... Without huge amounts Without huge amounts of death, organisms do of death, organisms do not change over time.not change over time. ... ...

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

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

The Cobra EventThe Cobra Event

TP#1*:TP#1*:

NetscapeNetscape

!!*Where would you rather have worked for those 5 years, Netscape*Where would you rather have worked for those 5 years, Netscape

or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?) rather to be able to tell someone—e.g., grandchild—that you worked?)

Built to Lastvs

Built Built to to ChangeChange//Rock Rock the the

WorldWorld

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

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

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



“Cool” industries!Stability!

Famous CEOs!

“Hard” stuff!“Success”!

Plans!

Mission impossible?Mission impossible?

$36B/’98$36B/’98minus minus

$675M/‘$675M/‘0707

Market capitalization lost per day, 1998-

2007: $10,000,00

0/Day

**Lived in same town all adult lifeLived in same town all adult life**First generation that’s wealthy/First generation that’s wealthy/ no parental supportno parental support**“Don’t “Don’t looklook like millionaires, don’t like millionaires, don’t dressdress like millionaires, don’t like millionaires, don’t eateat like like millionaires, don’t millionaires, don’t actact like millionaires like millionaires””*“Many of the types of businesses [they] are in could be*“Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving dry cleaners, re-builders of diesel engines, paving contractors …” contractors …”

Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko




Famous CEOs!

“Hard” stuff!

“Success”!Plans!

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships))relationships))

Dumb Bastards: “Hard”?????Dumb Bastards: “Hard”?????

“Mark-to-market”“Mark-to-market” (What’s (What’s “market”???? “market”???? WhatWhat market????)market????)

CDOs/Consolidated-CDOs/Consolidated-debt Obligationdebt Obligation (Value of(Value of

underlying asset??????) underlying asset??????) (Value of (Value of $64B “super-senior” [“super-safe”] $64B “super-senior” [“super-safe”]

CDOs at Citi???????)CDOs at Citi???????) Postscript: Bye, bye Stan/Merrill and Chuck/Citi. Postscript: Bye, bye Stan/Merrill and Chuck/Citi.

You’re gonna have to learn to live on $100 million You’re gonna have to learn to live on $100 million or so [Stan/$160M severance], I guess.or so [Stan/$160M severance], I guess.

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships))relationships))

“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 came to see in my time at IBM that culture

isn’t just one aspect of the game ——it is the it is the gamegame.”.” —Lou Gerstner,

Who Says Elephants Can’t Dance

9595%%

95%:95%:

“Understanding “Understanding the mind’s eye of the mind’s eye of another person”another person”

““What I learned from my years What I learned from my years as a hostage3 negotiator is that as a hostage3 negotiator is that

we do not have to feel we do not have to feel powerless—and that powerless—and that

bondinbondingg is the antidote to is the antidote to the hostage situation.”the hostage situation.” —George —George

Kohlrieser, Kohlrieser, Hostage at the TableHostage at the Table

““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in

other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to

get other people get other people interested in you.”interested in you.” —Dale

Carnegie

““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to

the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a

college president. college president. He was He was seriously interested in seriously interested in

who you were and what who you were and what you had to sayyou had to say.”.”

Sara Lawrence-Lightfoot, Respect

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—processes—then thethen theyy jjust deleust deleggate ate

the work to be done, remaininthe work to be done, remainingg aloof aloof from the from the ppeoeopple doinle doingg

the workthe work.”.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

““Why is it that your average business person has such a Why is it that your average business person has such a hard time being human? I often wonder if the sole point hard time being human? I often wonder if the sole point of business language is to de-humanize those doing of business language is to de-humanize those doing business. I struggle to find another explanation.business. I struggle to find another explanation.

““To the rest of the world, emotion is a normal, everyday, To the rest of the world, emotion is a normal, everyday, important part of life... and people who don't get that important part of life... and people who don't get that are generally considered jerks. Only managers don't get are generally considered jerks. Only managers don't get this. this. ““I've found that the simplest (and most powerful) I've found that the simplest (and most powerful) competitive advantage comes from competitive advantage comes from CARINGCARING.. Genuinely Genuinely caring about people (customers and partners) covers a caring about people (customers and partners) covers a multitude of other shortcomings. multitude of other shortcomings. CARINGCARING about people about people is the best ‘marketing strategy’ and the best is the best ‘marketing strategy’ and the best ‘management method.’ …‘management method.’ …““The funny thing is that in such a soulless business The funny thing is that in such a soulless business climate, climate, CARINGCARING is that much more competitive—and is that much more competitive—and translates nicely to financial performance as well! It also translates nicely to financial performance as well! It also translates into a much fuller and happier life …”translates into a much fuller and happier life …”

Posted at tompeters.com by AJ Hoge at November 12, 2007 8:11 PMPosted at tompeters.com by AJ Hoge at November 12, 2007 8:11 PM

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

WegmansWegmans

#1/10#1/1000

““Best Companies toBest Companies to Work for” Work for”//20052005

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

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

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots hotshots

for for gguuyys we thous we thougght were better ht were better ppeoeopplele, and watched our guys do a lot better , and watched our guys do a lot better

than the big names, not just in the classroom, but on than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our Again and again, the blue chips faded out, and our

little up-and-comers clawed their way to all-little up-and-comers clawed their way to all-conference and All-America teams.”conference and All-America teams.” —Bo —Bo

Schembechler (and John Bacon), “Recruit for Schembechler (and John Bacon), “Recruit for Character,” Character,” Bo’s Lasting LessonsBo’s Lasting Lessons

““Character is more crucial now Character is more crucial now than ever, because in times of than ever, because in times of

great uncertainty past great uncertainty past performance is no indicator of performance is no indicator of

future performance. future performance. Experience falls away and all Experience falls away and all

you’re left with is character.” you’re left with is character.” ——David Rothkopf, founder of a firm that helps helps chief David Rothkopf, founder of a firm that helps helps chief

executives manage risksexecutives manage risks

MBWAMBWA

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

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

RReturn eturn OOn n IInvestment In nvestment In RRelationshipselationships

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”Source: Selling Is a Woman’s Game: 15 Powerful Reasons WhySelling Is a Woman’s Game: 15 Powerful Reasons Why

Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

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

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

The Manager’s The Manager’s Book of Book of DecenciesDecencies: :

How Small How Small /gestures Build /gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

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

William JamesWilliam James

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.

““As you predicted …”As you predicted …”“My mind is like a sieve …”“My mind is like a sieve …”

“Well, looks like we blew it …” “Well, looks like we blew it …” [“No, no. Us!” “There’s blame [“No, no. Us!” “There’s blame

enough to go around.”]enough to go around.”]

“I’m really “I’m really sorry.”sorry.”

““So why don’t we do this ‘obvious So why don’t we do this ‘obvious stuff’?”stuff’?”

Considered “soft.” Immediate priorities Considered “soft.” Immediate priorities get in the way. The B-school idea of get in the way. The B-school idea of

business pervades. Comfort hanging out business pervades. Comfort hanging out in our own confines. Easier. in our own confines. Easier.

Uncomfortable with the “relationship Uncomfortable with the “relationship stuff.” “Problem solvers,” not “listeners” stuff.” “Problem solvers,” not “listeners”

[“the 18-second Doc]; impatient, not [“the 18-second Doc]; impatient, not patient. Not the “sales type.” Like #s better patient. Not the “sales type.” Like #s better

than people. Damned hard work unless than people. Damned hard work unless you take to it instinctively. Etc.you take to it instinctively. Etc.

Answer/s?Answer/s?Formal “calendar discipline.” A new “to-Formal “calendar discipline.” A new “to-do list.” A “Life coach”/Formal mentor do list.” A “Life coach”/Formal mentor

(weekly, daily if you can afford it). (weekly, daily if you can afford it). Support group. If male, woman pal. Support group. If male, woman pal.

Training—incl. role play. Adopt Stephen Training—incl. role play. Adopt Stephen Covey or Marshall Goldsmith. Report Covey or Marshall Goldsmith. Report

card. Constant, informal as well as card. Constant, informal as well as formal “360 feedback.” A great “gotcha formal “360 feedback.” A great “gotcha pal”—eg monitors meetings, goes on pal”—eg monitors meetings, goes on

“sales” calls. Sales training!!!!! “sales” calls. Sales training!!!!! Volunteer community leadership work. Volunteer community leadership work.

Fundraising!Fundraising!

“Design is treated like treated like a religiona religion at

BMW.” —Fortune

Franchise Lost!

TP: “How many of you [600] really

cravecrave a new Chevy?”

NYC/IIR/061205

“Better By Design”: A National Strategy

NZ = DesignNZ = Design ExcellenceExcellence

CCDDOO* ** **** ** ****Chief *Chief DesignDesign Officer Officer

**Minister for **Minister for DesignDesign***Deputy Prime Minister for ***Deputy Prime Minister for DesignDesign and and CreativityCreativity

““The sun is setting on the Information Society—even The sun is setting on the Information Society—even before we have fully adjusted to its demands as before we have fully adjusted to its demands as

individuals and as companies. We have lived as hunters individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we and as farmers, we have worked in factories and now we

live in an information-based society whose icon is the live in an information-based society whose icon is the

computer. computer. We stand facinWe stand facingg the fifth kind of societthe fifth kind of society: y: the Dream Societthe Dream Society.y. … Future … Future

products will have to appeal to our hearts, not to our products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to heads. Now is the time to add emotional value to

products and services.”products and services.” Rolf Jensen/ Rolf Jensen/The Dream Society:How the Coming Shift from The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your BusinessInformation to Imagination Will Transform Your Business

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

CCLL OO*

*Chief Lovemark Officer



Stability!Famous CEOs!“Hard” stuff!

“Success”!

Plans!

““Strive for Strive for Excellence. Excellence.

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

car driver (courtesy Andrew Sullivan)

EXCELLENCEEXCELLENCE..

Circa 1982.Circa 1982.

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

ExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields $85,000$85,000 EI: $10,000 yields $140,050$140,050

*Forbes/Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

2006.2006.

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

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

2007.2007.

SEPTEMBER.SEPTEMBER.SYDNEY.SYDNEY.DRUCKER DRUCKER TRIBUTE.TRIBUTE.

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

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

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

*TP: An “organization” is, in fact and after all*TP: An “organization” is, in fact and after all is said and done, a/the “house” in which is said and done, a/the “house” in which

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

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

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

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

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

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashedunleashed … … In passionate pursuit of jointly In passionate pursuit of jointly perceived soaring purposeperceived soaring purpose and personal and and personal and

community and client service Excellence. community and client service Excellence.

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX


“the rules.”“the rules.”

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect, humane)humane)


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

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

service service (worthy of our clients’ & (worthy of our clients’ & extended extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)


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

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

service service (worthy of our clients’ & extended (worthy of our clients’ & extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

If not If not “Excellence,“Excellence,

” what?” what?




Famous CEOs!“Hard” stuff!“Success”!

Plans!

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!


“one idea.” “one idea.”1966-2007.1966-2007.

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.

Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.

drill.drill.

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

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

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

studying logs, but you have to drill.”

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

try try things.things.

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

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

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

versionversion ##55.. By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may be be thethe most most

valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

““Learn not Learn not to be to be

careful.”careful.”

—Photographer Diane Arbus to her students (Careful = The sidelinesCareful = The sidelines, from

Harriet Rubin in The Princessa)

““We We performed performed

more more operations.”operations.”

Screw. Screw. things.things.

Up.Up.

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

—Samuel Beckett

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly

No try. No try. No deal.No deal.

““You miss You miss

100100%% of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Think!Think!vs.vs.

do!do!

““Linearist”: Linearist”:

a>b*a>b*“Non-linearist”: “Non-linearist”:

b>a**b>a****Attitude shapes behaviorAttitude shapes behavior****Behavior shapes attitudeBehavior shapes attitude

I proceeded by trial and error and instinct, I proceeded by trial and error and instinct, and each experiment led to/suggested and each experiment led to/suggested

another experiment (or 2 or 10) and to a another experiment (or 2 or 10) and to a greater understanding of potential—the greater understanding of potential—the

“plan,” though there was none, made itself. “plan,” though there was none, made itself. And it was far, far better (more ambitious, And it was far, far better (more ambitious, more interestinmore interestingg, more satisfyin, more satisfyingg) than I ) than I

would have imawould have imagginedined. In fact, the result to . In fact, the result to date bears little or no relationship to what I date bears little or no relationship to what I

was thinking about at the start—a trivial self-was thinking about at the start—a trivial self-designed chore may become the engine of my designed chore may become the engine of my

next decade; the “brushcutting project” is next decade; the “brushcutting project” is now leading Susan and I to view our now leading Susan and I to view our

entire property, and what it might become-entire property, and what it might become-represent, in a new light.represent, in a new light.


the the “Lessons.”“Lessons.”1966-2007.1966-2007.

4/404/40

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

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

tion!tion!

““ExecutionExecution is is thethe jobjob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned

in your long and distinguished career?” in your long and distinguished career?”

His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””




Plans!

The “Esteemed Eight”:The “Esteemed Eight”:

SMEs!SMEs!Private companies!Private companies!

“Dull” industries!“Dull” industries!Productive churn!Productive churn!Laudable CEOs!Laudable CEOs!

“Soft” stuff!“Soft” stuff!Excellence!Excellence!

Action-Execution!Action-Execution!

The The “nonsense “nonsense

nine”!nine”!

The “Nonsense Nine”:The “Nonsense Nine”:Big companies!

Public companies! “Cool” industries!


Plans!

Men!

““THE NEW GENDER THE NEW GENDER GAP: From kinder-GAP: From kinder-

garten to grad garten to grad school, boys are school, boys are

becoming the becoming the second sex”second sex” —Cover story,

BusinessWeek

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline, Economist, April 15, 2006, Leader, page 14

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

Repeat:Repeat: “Goldman Sachs in Tokyo “Goldman Sachs in Tokyo has developed an index of 115 has developed an index of 115 companies poised to benefit companies poised to benefit

from women’s increased from women’s increased purchasing power; purchasing power; over the past over the past

decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist, April 15

?????????Home Furnishings … 94%Home Furnishings … 94%

Vacations … 92% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%Houses … 91%D.I.Y. D.I.Y. (major “home projects”) … 80% … 80%

Consumer Electronics … 51% Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)Cars … 68% (90%)AllAll consumerconsumer purchasespurchases … … 83%83%

Bank Account … 89%Bank Account … 89%Household investment decisions … 67%Household investment decisions … 67%Small business loans/biz starts … 70%Small business loans/biz starts … 70%

Health Care … 80%Health Care … 80%

““The The most most significant variablesignificant variable inin everyevery sales situation is sales situation is thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect AnswerJill and Jack buy

slacks in black…

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model ModelSelling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

Cases! Cases! Cases!Cases! Cases! 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/Fara Warner/The Power of the PurseThe Power of the Purse

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

“Mostly Moms”““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—

generally considered the generally considered the industry’s most frequent industry’s most frequent

users and therefore its most users and therefore its most important important consumers—or theconsumers—or theyy were cast in the role of moms were cast in the role of moms who were simplwho were simplyy conduits to conduits to

their childrentheir children.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s

Discovers the Woman Inside the Mom”

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

““Since Since 19701970, , women have women have

held held twotwo out of out of every every threethree new new jobs created.”jobs created.” —FT,

10.03.2006

““ForForgget China, India and the et China, India and the Internet: Economic Growth Is Driven Internet: Economic Growth Is Driven

bbyy Women Women.”.” [Headline.] “Even today in the modern, developed world, surveys show that parents still prefer to have

a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their

parents’ old age. Yet it is time for parents to think again. Girls Girls may now be a better investment.”may now be a better investment.” “Girls get better grades in

school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot for the new jobs of the 21st century, in which brains count a lot

more than brawnmore than brawn.. … And women are more likely to provide sound advice on investing their parents’ nest—e.g.: surveys

show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in

the last couple of decades. Those women have contributed more Those women have contributed more to global GDP growth than have either new technology or theto global GDP growth than have either new technology or the

new giants, India and China.”new giants, India and China.” Source: EconomistEconomist, April 15, Leader, page 14

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that female managers outshine their male

counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

““Guys want to put everybody Guys want to put everybody in their hierarchical place. in their hierarchical place. Like, should I have more Like, should I have more

respect for you, or are you respect for you, or are you somebody that’s south of somebody that’s south of

me?”me?” —Paul Biondi, Mercer Consultants—Paul Biondi, Mercer Consultants [from [from It’s Not Business, It’s PersonalIt’s Not Business, It’s Personal, Ronna Lichtenberg], Ronna Lichtenberg]

Women Leaders’ Time Has Come …Women Leaders’ Time Has Come …Project team (old):Project team (old): 23 people, all from our company 23 people, all from our company (More or less amenable to “orders”)(More or less amenable to “orders”)Project team (new):Project team (new): 43 people from 7 companies in 4 43 people from 7 companies in 4 countries on 3 continents (Moved only by effective countries on 3 continents (Moved only by effective persuasion and development of common commitment)persuasion and development of common commitment)

“Worker,” circa 1982:“Worker,” circa 1982: Rote work, incl. most white- Rote work, incl. most white-collar work (Amenable to “orders,” power exercised collar work (Amenable to “orders,” power exercised directly)directly)“Worker,” circa 2007:“Worker,” circa 2007: Project work, team work, mixed- Project work, team work, mixed-group work, creative work, co-creation with client—group work, creative work, co-creation with client—microprocessors do the “rote stuff” (Commitment is microprocessors do the “rote stuff” (Commitment is voluntary, leadership is by developing positive voluntary, leadership is by developing positive relationships, inducing “creatives” to stretch, power relationships, inducing “creatives” to stretch, power exercised indirectly)exercised indirectly)

““Catalyst just completed a study Catalyst just completed a study showing that companies with showing that companies with at at

least three women directorsleast three women directors performed significantly better performed significantly better

than average in terms of return on than average in terms of return on equity (16.7% better), return on equity (16.7% better), return on

sales (16.8%), and return on sales (16.8%), and return on invested capital (10%)invested capital (10%)

Source: Source: NewsweekNewsweek, 1015.07/16% of S&P500 board, 1015.07/16% of S&P500 board members are women; 9% (45) no women members are women; 9% (45) no women

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

14 14 toto 168168**

*Leadership Positions/D&T/1992-2002/*Leadership Positions/D&T/1992-2002/WIAR WIAR (Women’s Initiative Annual Report)(Women’s Initiative Annual Report)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULEWomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.

So what exactly is the point of So what exactly is the point of menmen??

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all

levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The

phenomenon will only grow as girls prove to be more successful than boys in the school

system. For a number of observers, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as

thought out and practiced by a thought out and practiced by a womanwoman.”.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

“ ‘“ ‘Womenomics,’ Womenomics,’ the economy as the economy as thought out and thought out and practiced by a practiced by a

woman.”woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

The “Nonsense Nine”:The “Nonsense Nine”:Big companies!



Plans!

Men!

The “Notable Nine”:The “Notable Nine”:

SMEs!SMEs!Private companies!Private companies!

“Dull” industries!“Dull” industries!Churn!Churn!

Laudable CEOs!Laudable CEOs!“Soft” stuff!“Soft” stuff!Excellence!Excellence!

Action-Execution!Action-Execution!

Women!Women!

The The “nefarious “nefarious nine point nine point

five”!five”!

The “Nefarious Nine Point Five”:The “Nefarious Nine Point Five”:Big companies!



Plans!Men!

Young!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more

thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household after the “head of household” reaches

age 50: 77Source: Marti Barletta, PrimeTime Women

2000-2010 Stats

18-44: -1%-1%55+: ++2121%%(55-64: ++4747%%)

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, , the the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, ,

the most (yes) the most (yes) ambitiouambitious, the most s, the most experimental & exploratoryexperimental & exploratory, the most , the most

differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,

(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most

profoundly important commercial market in profoundly important commercial market in the history of the world—and we will be the the history of the world—and we will be the Center of your universe for the next Center of your universe for the next twenty-twenty-

fivefive yearsyears. We have arrived!. We have arrived!

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right

about when people who have worked all their lives start to have some money to spend.”

—Marti Barletta, PrimeTime Women

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations and motivations and

needs are so poorneeds are so poorlyly understoodunderstood.”.”

——Peter Francese, founding publisher, American Demographics

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

NoNo:: “Target “Target Marketing”Marketing”

YesYes :: “Target “Target InnovationInnovation” & ” & “Target “Target DeliverDelivery y SSyystemsstems””

The “Nefarious Nine Point Five”:The “Nefarious Nine Point Five”:Big companies!



Plans!Men!

Young!

The “Nifty Nine Point Five”:The “Nifty Nine Point Five”:SMEs!SMEs!

Private companies!Private companies! “Dull” industries! “Dull” industries!

Churn!Churn!Laudable CEOs!Laudable CEOs!


Action-Execution!Action-Execution!Women!Women!

Boomers-Geezers!Boomers-Geezers!

The The “terrible “terrible

ten”!ten”!

The “Terrible Ten”:The “Terrible Ten”:Big companies!



Plans!“Success”!

Men! (Young)

Incrementalism-Kaizen

Single Single greatest act greatest act

of pure of pure imaginationimagination

24%24%

dubaidubai

$20,000,000,$20,000,000,000000

No Wiggle Room!No Wiggle Room!

“Incrementalis“Incrementalism is m is

innovation’s innovation’s worstworst enemy.” enemy.”

—Nicholas Negroponte—Nicholas Negroponte

The “Terrible Ten”:The “Terrible Ten”:Big companies!




Men!

Incrementalism-Kaizen

The “Terrific Ten”:The “Terrific Ten”:SMEs!SMEs!





Imagination Imagination Unbound!Unbound!

The The “egregious “egregious

eleven”!eleven”!

The “Egregious Eleven”:The “Egregious Eleven”:Big companies!




Men!Incrementalism-Kaizen

Minimization!

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

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

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

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

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

The Commerce Bank ModelThe Commerce Bank Model

“cost cutting “cost cutting is a is a deathdeath spiralspiral.”.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

The Commerce Bank ModelThe Commerce Bank Model

““overover-invest in -invest in our people, our people, overover--

invest in our invest in our facilities.”facilities.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

CCRR O*

*Chief RevenueRevenue Officer

<TG<TGWWvs.vs.

>TG>TGRR

TGR TGR (“Things (“Things gone right”)gone right”) > > TGW TGW (“Things (“Things Gone Wrong”)Gone Wrong”)

Singapore-Singapore-CandyCandy

(Operational Excellence+)(Operational Excellence+)

““Happy Happy Birthday!”Birthday!”

Disney’s Disney’s Parking Lot Parking Lot

AttendantsAttendants = = Alpha Alpha and and

OmegaOmega

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a

Stage

Experience: “Rebel Lifestyle!”

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

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

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

HarleyHarley exec, quoted in Results-Based Leadership

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs. “Great “Great VacationVacation”/ ”/

“Great “Great ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

CCXXOO**Chief eXperience Officer

First Step (?!)First Step (?!): : Hire a Hire a theater directortheater director, , as a consultant as a consultant

or FTE!or FTE!

The “Egregious Eleven”:The “Egregious Eleven”:Big companies!





Minimization!

The “Enviable”:The “Enviable”:SMEs!SMEs!





Imagination Unbound!Imagination Unbound!

Accentuate the Accentuate the Positive!Positive!

The The “despicable “despicable

Dozen”!Dozen”!

The “Despicable Dozen”:The “Despicable Dozen”:Big companies!





Minimization!

Uniformity!

Measure “Strangeness”/Portfolio QualityMeasure “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 LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’s focus on inventing all its P&G’s focus on inventing all its

own products to developing own products to developing others’ inventions others’ inventions at least half the at least half the

timetime. One successful example . One successful example Mr. Clean Magic Eraser, based on Mr. Clean Magic Eraser, based on

a product found in an Osaka a product found in an Osaka market.”market.” ——FortuneFortune, 12.18.06, 12.18.06

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about: “Innovate,“Innovate,

‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”

Promise #1:Promise #1: “Never, ever “Never, ever again will I evaluate again will I evaluate

anyone using a anyone using a standardized instrument standardized instrument

devised bydevised by a “professional” in a “professional” in ininhuman Resources.”human Resources.”

53 = 53 = 5353

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

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

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group

almost always did better. … almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

WikiWorld:WikiWorld: “The “The Billion-man Research Billion-man Research

Team: Companies Team: Companies offering work to online offering work to online

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

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

““Human Human creativity is creativity is the ultimate the ultimate

economic economic resource.”resource.” —Richard Florida,—Richard Florida,

The Rise of the Creative ClassThe Rise of the Creative Class

““Every child is Every child is born an artist. born an artist. The trick is to The trick is to

remain an artistremain an artist.”.” —Picasso—Picasso

““Normal” Normal” = = “o “o forfor 800”800”

15 “Leading” Biz Schools

DesiDesiggnn/Core: 00Design/Elective: 1

CreativitCreativityy/Core: 00Creativity/Elective: 4

InnovationInnovation/Core: 00Innovation/Elective: 6

Source: DMI/Summer 2002/Research by Thomas Lockwood

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

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

ResearchResearch))

BRAND BRAND YOU.YOU.NO NO

OPTION.OPTION.

New Work SurvivalKit.20071. 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 4. Rolodex Rolodex ObsessionObsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. ENTREPRENEURIAL INSTINCTENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSERCEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 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!)

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are entrepreneursbeings are entrepreneurs..

When we were in the caves we were When we were in the caves we were all self-employed . . . finding our food, all self-employed . . . finding our food,

feeding ourselves. That’s where feeding ourselves. That’s where human history began . . . As human history began . . . As

civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped us, ‘You are labor.’ We forgot that we us, ‘You are labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.” Source: Muhammad Yunus/2006 Nobel Peace prize winner, father of micro-lending /The News Hour—PBS/1122.2006

The “Despicable Dozen”:The “Despicable Dozen”:Big companies!





Minimization!

Uniformity!

The “Delectable Dozen”:The “Delectable Dozen”:SMEs!SMEs!





Imagination Unbound!Imagination Unbound!Accentuate the Positive!Accentuate the Positive!

Individuality!Individuality!

The “Delectable Dozen”:The “Delectable Dozen”:SMESMEss!!


Churn!Churn!laudable CEOs!laudable CEOs!



Imagination Unbound!Imagination Unbound!Accentuate the Positive!Accentuate the Positive!

Individuality!Individuality!

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

10Ps.10Ps.

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

PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

Leader Job OneLeader Job One

Paint Paint Portraits of Portraits of ExcellenceExcellence!!

PURPOSEPURPOSE..

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



PositivePositive..

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

—Samuel Taylor Coleridge

BZBZ:: “I am a … “I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..



PositivePositive..

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

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

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..



PositivePositive..

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

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

Gandhi

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

—David D’Alessandro, Career Warfare

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

PersonalPersonal..PERSISTENCEPERSISTENCE..PRIORITIESPRIORITIES..


PositivePositive..

““Being aware of Being aware of yourself and how you yourself and how you

affect everyone affect everyone around you is what around you is what

distinguishes a distinguishes a superior leader.”superior leader.”

—Edie Seashore (—Edie Seashore (Strategy + BusinessStrategy + Business #45) #45)




PositivePositive..

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

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

Feather, authorFeather, author


PERSISTENCEPERSISTENCE..

PRIORITIESPRIORITIES. . PEOPLE.PEOPLE.potentpotent..

PositivePositive..

““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.

ThreeThree..

Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”

— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade

““Dennis, you need a … Dennis, you need a …

‘To-don’t ’‘To-don’t ’ List !”List !”



PEOPLE iPEOPLE i. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

OfficersOfficers eat eat lastlast!!



PEOPLE iiPEOPLE ii. . PotentPotent..

PositivePositive..

2 2 per Year/per Year/ 20 20 per Decade per Decade == Excellence Excellence

+ Legacy+ Legacy



PEOPLE IiiPEOPLE Iii. . PotentPotent..

PositivePositive..

Internal Internal “brand “brand

promise”!promise”!

IBPIBP = = Remarkable challenge, Remarkable challenge, rapid professional growth, rapid professional growth, respect, satisfaction, fun, respect, satisfaction, fun,

stunning opportunity, stunning opportunity, exceptional reward, amazing exceptional reward, amazing

peer group, full membership in peer group, full membership in Club Adventure, maximized Club Adventure, maximized

future employabilityfuture employabilitySource: Ed Michaels, Source: Ed Michaels, The War for Talent; TPThe War for Talent; TP

Brand Brand = =

Talent.Talent.



PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

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!!




PositivePositive..

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

the “guru gaffe s ” “hall of shame”: the “over-rated eight”!

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