tom peters’ re-imagine ! business excellence in a disruptive age manama/ kingdom of bahrain/...
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Tom Peters’
Re-Imagine!Business Excellence in a Disruptive AgeManama/ Kingdom of Bahrain/ 14April2004
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“In Tom’s world, it’s always better to try a
swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.”
—Fast Company /October2003
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Slides at …
tompeters.com
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I. NEW BUSINESS.
NEW CONTEXT.
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1. All Bets Are Off.
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“Uncertainty is the only thing to be sure of.”
—Anthony Muh, head of investment in Asia, Citigroup Asset Management
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Jobs Technology
GlobalizationSecurity
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Jobs New Technology
GlobalizationSecurity
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“14 MILLION service jobs are in
danger of being shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
study
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“Income Confers No Immunity as Jobs Migrate” —Headline/USA Today/02.04
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“One Singaporean worker costs as much as …
3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.”
Source: The Straits Times/08.18.03
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“The proper role of a healthily functioning economy is to destroy
jobs and to put labor to use elsewhere. Despite this truth, layoffs and firings will always
sting, as if the invisible hand of free enterprise has slapped
workers in the face.” —Joseph Schumpeter
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“There is no job that is America’s God-given right
anymore.” —Carly Fiorina/ HP/
01.08.2004
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“WHAT ARE PEOPLE GOING TO DO WITH
THEMSELVES?” —Headline/
Fortune/ 11.03 (“We should finally admit that we do not and cannot know, and regard that fact with serenity
rather than anxiety.”)
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Jobs Technology
GlobalizationSecurity
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<1000A.D.: paradigm shift: 1000s of years1000: 100 years for paradigm shift
1800s: > prior 900 years1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech
change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it
represents a rupture in the fabric of human history”)
Ray Kurzweil
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E.g. …
Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in
3 years.
Source: BW (01.28.02)
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“I genuinely believe we are living through the greatest intellectual moment in history.”
Matt Ridley, Genome
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“A California biotechnology company has put the entire
sequence of the human genome on a single chip, allowing
researchers to conduct a single experiment on the complex
relationships between the 30,000 genes that make up a human
being.” —Financial Times/10.03.2003
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Jobs Technology
GlobalizationSecurity
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“Asia’s rise is the economic event of our age. Should it proceed as it has over the last few decades, it
will bring the two centuries of global domination by Europe and,
subsequently, its giant North American offshoot to an end.”
—Financial Times (09.22.2003)
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“The world has arrived at a rare strategic inflection point where nearly half its population—living in China, India and Russia—have been
integrated into the global market economy, many of them highly educated workers, who can
do just about any job in the world. We’re talking about three billion people.” —Craig Barrett/Intel/01.08.2004
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China Roars!
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1990-2003: Exports 8X ($380B); 6% global exports 2003 vs. 3.9% 2000; 16% of
Total Global Growth in 2002.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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1998-2003: 45,000,000 layoffs in state sector; offset by $450B in
foreign investment; foreign companies account for 50+% of exports vs. 31% in Mexico,
15% in Korea.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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50% of output from private firms, 37% from state-owned
firms; 80% of workforce (incl. rural) now in private
employ.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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200 cities with >1,000,000 population.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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397,000,000 fixed phone
lines = 90X since 1989.
Source: “China Takes Off”, David Hale & Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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2003: China-Hong Kong leading producer in 8 of 12 key consumer electronic product areas (>50%: DVDs, digital cameras; >33.33%:
DVD-ROM drives, personal desktop and notebook computers; >25% mobile phones, color TVs,
PDAs, car stereos).Source: “China Takes Off,” David Hale & Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
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“Going Global: Flush with billions in foreign reserves,
China is embarking on a buying spree” —Cover/ Newsweek/ 03.01.04/ on
China’s aggressive offshore acquisition activity (buying brands,
technology, etc.)
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World economic output: U.S.A., 21%; EU, 16%; China, 13%
(2X since1991)
Source: New York Times/12.14.2003
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“With a Small Car, India Takes Big Step Onto Global Stage” —Headline, p. 1, WSJ, 02.05.2004
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Indian GDP/1990-2002: Ag, 34% to 21%; services,
40% to 56%
Source: The Economist/02.04
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Level 5 (top) ranking/Carnegie Mellon
Software Engineering Institute: 35 of 70
companies in world are from India
Source: Wired/02.04
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“CLONING COLLEGE: South Korea’s
biomedical researchers, unhampered by politics, do world-class research
on the cheap” —Headline,
Newsweek/03.01.04
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Jobs Technology
Globalization
Security
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“This is a dangerous world and it is going to become more
dangerous.”
“We may not be interested in chaos, but chaos is interested
in us.”
Source: Robert Cooper, The Breaking of Nations: Order and Chaos in the Twenty-first Century
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All Bets Are Off!
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“There will be more
confusion in the business world in the next decade than in any decade in history. And the current pace of
change will only accelerate.”Steve Case
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It is the foremost task—and responsibility—of our generation to
re-imagine our enterprises, private
and public. —from the Foreword, Re-imagine
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“How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation,
discovery and competition? Do we value stability and control? Or evolution and learning? Do we think that progress requires a central blueprint? Or do we see it as a decentralized, evolutionary process? Do we see mistakes as permanent disasters? Or the correctable
byproducts of experimentation? Do we crave predictability? Or relish surprise? These two poles,
stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel,
The Future and Its Enemies
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Age of AgricultureIndustrial Age
Age of Information IntensificationAge of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
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“The Creative Class derives its identity from its members’ roles as
purveyors of creativity. Because creativity is the driving force of economic growth, in terms of
influence the Creative Class has become the dominant class in
society.” —Richard Florida, The Rise of the Creative Class (38M, 30%)
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“Let’s compete—by training the best workers, investing in R & D,
erecting the best infrastructure and building an education system that graduates students who rank with the worlds best. Our goal is to be competitive with the best so we
both win and create jobs.” —Craig Barrett (Time/03.01.04)
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The Winning Edge: Peters’ Big6
1. Research-Innovation2. Entrepreneurial Attitude & Support (Especially from Capital Markets)
3. Creative (“Obstreperous”) Education4. Free Trade-Open Markets5. Individual Self-reliance (& Supports Therefore)
6. Cutting-edge Infrastructure
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How Nations Become Wealthy
1. Property rights 2. Scientific rationalism 3. Capital markets 4. Fast and efficient communications and transportation
Source: The Birth of Plenty: How the Prosperity of the Modern World Was Created
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2. The Destruction Imperative.
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“It is generally much easier to kill an
organization than change it
substantially.” Kevin Kelly, Out of Control
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C.E.O. to
C.D.O.
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“Wealth in this new regime flows directly from innovation, not
optimization. That is, wealth is not gained by perfecting the known,
but by imperfectly seizing the unknown.”
Kevin Kelly, New Rules for the New Economy
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Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
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“Far from being a source of comfort,
bigness became a code for inflexibility.” —John
Micklethwait & Adrian Wooldridge, The Company
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“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms
listened to their customers, invested aggressively in technologies that would provide their customers more
and better products of the sort they wanted, and because they carefully studied market trends and
systematically allocated investment capital to innovations that promised the best returns, they lost
their positions of leadership.”
Clayton Christensen, The Innovator’s Dilemma
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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
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“Conglomerates don’t work.” —James
Surowiecki, The New Yorker (07.01.2002)
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“Acquisitions are about buying market share.
Our challenge is to create markets. There is a big difference.”
Peter Job, CEO, Reuters
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Winning the Merger Game Is Possible
--Lots of deals--Little deals
--Friendly deals--Stay close to core competence--Strategy is easy to understand
Source: “The Mega-merger Mouse Trap”/Wall Street Journal/02.17.2004/David Harding & Sam Rovit, Bain & Co./re
Comcast-Disney
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“The secret of fast progress is
inefficiency, fast and furious and numerous
failures.”Kevin Kelly
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The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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“The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.”—Newsweek/ Paul Saffo (03.02)
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No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
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“Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo
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II. NEW BUSINESS. NEW TECH.
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3. IS/IT/Web:IS/IT
Is Strategy!
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100 square feet
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“Invisible Supplier Has Penney’s Shirts All
Buttoned Up: From Hong Kong, It Tracks Sales,
Restocks Shelves, Ships Right to the Store.” —Headline, Wall
Street Journal (09.11.03)
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“Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is
in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s
pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the
network. They can review a chart from 100 miles away.” —David Veillette, CEO, Indiana Heart Hospital (HealthLeaders/12.2002)
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“MIT Everywhere: EVERY LECTURE, EVERY LECTURE,
EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS
GETTING AN MIT EDUCATION, OPEN SOURCE-STYLE.”
—Headline/Wired/09.03
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e-piphany
epicurious.com
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“flash mobs” (!)
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“Ebusiness is about rebuilding the organization from the
ground up. Most companies today are not built to exploit the Internet.
Their business processes, their approvals, their hierarchies, the
number of people they employ … all of that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
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“There’s no use trying,” said Alice. “One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
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I’net …
… allows you to dream dreams
you could never have dreamed
before!
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IS/IT is strategy!
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5% F500 have CIO on Board: “While some of the world’s most admired companies—e.g.,Tesco,
Wal*Mart—are transforming the business landscape by including technology experts
on their boards, the vast majority are missing out on ways to boost productivity, competitiveness and shareholder value.”
Source: Burson-Marsteller
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4. The White Collar
Revolution.
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108 X 5vs.
8 X 1= 540 vs. 8 (-98.5%)
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Steel: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289,000 steelworkers
in ’82 to 74,000 steelworkers in ’02.
Source: Fortune/11.24.03
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“Organizations will still be critically important in the world,
but as ‘organizers,’ not ‘employers’!” — Charles Handy
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Ford: “Vehicle brand owner”
(“design, engineer, and market, but not actually make”)
Source: The Company, John Micklethwait & Adrian Wooldridge
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III. NEW BUSINESS. NEW
VALUE PROPOSITION.
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5. The “PSF Solution”:
The Professional Service Firm Model.
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Answer: PSF![Professional Service Firm]
Department Head
to …
Managing Partner, HR [IS, etc.] Inc.
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DD$21M
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6. The Heart of the Value
Added Revolution: PSFs Unbound/ The
“Solutions Imperative.”
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“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
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“Companies have defined so much ‘best practice’
that they are now more or less identical.”
Jesper Kunde, Unique Now ... or Never
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“Customers will try ‘low cost
providers’ … because the Majors have not
given them any clear reason not to.”
Leading Insurance Industry Analyst
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“We make over three new product announcements a
day. Can you remember
them? Our customers can’t!”Carly Fiorina
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
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Is There a There There: The Ericsson Case
1. 50+% Mfg to Solectron/Flextronics2. Substantial R&D to India3. Division for licensing technology4. JV with Sony on “crown jewel” handsets5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal”
Source: BW/11.04.02
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Flextronics
--$14B; 100K employees; 60% p.a. growth (’93-’00)
-- “contract mfg” to EMS/Electronics Manufacturing Services (design, mfg, logistics,
repair); “total package of outsourcing solutions” (Pamela Gordon, Technology Forecasters)
-- “The future of manufacturing isn’t just in making things but adding value” (3,500 design
engineers)
Source: Asia Inc./02.2004
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“Customer Satisfaction” to “Customer Success”
“We’re getting better at [Six Sigma] every day. But we really
need to think about the customer’s profitability. Are customers’
bottom lines really benefiting from what we provide them?”
Bob Nardelli, GE Power Systems
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Keep In Mind: Customer
Satisfaction versus
Customer
Success
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“UPS wants to take over the sweet spot in the endless loop
of goods, information and capital that all the packages
[it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
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And the Winners Are …
Televisions –12%Cable TV service +5%
Toys -10%Child care +5%
Photo equipment -7%Photographer’s fees +3%
Sports Equipment -2%Admission to sporting event +3%
New car -2%Car repair +3%
Dishes & flatware -1%Eating out +2%
Gardening supplies -0.1%Gardening services +2%
Source: WSJ/05.16.03
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IV. NEW BUSINESS. NEW
BRAND.
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7. A World of Scintillating
“Experiences.”
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“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride
through small towns and have people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
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WHAT CAN BROWN DO FOR YOU?
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Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
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“Lexus sells its cars as containers for our
sound systems. It’s marvelous.”—Sidney Harman/
Harman International
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“Most executives have no idea how to add value to a market in the metaphysical
world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]
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<TGWvs.
>TGR
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8. The [Mostly Ignored] “Soul” of “Experiences”:
Design Rules!
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And Tomorrow …
“Fifteen years ago companies competed on price. Now it’s
quality. Tomorrow it’s design.”
Robert Hayes
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All Equal Except …
“At Sony we assume that all products of our competitors have basically the same
technology, price, performance and
features. Design is the only thing that differentiates one product from another in the
marketplace.”Norio Ohga
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“Design is treated like a religion at
BMW.”Fortune
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“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 fundamental soul
of a man-made creation.”
Steve Jobs
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Hypothesis: DESIGN is the principal difference between love and
hate!
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“Thaksinomics” (after Taksin Shinawatra, PM)/ “Bangkok
Fashion City”/ “managed asset reflation” (add to brand value of
Thai textiles by demonstrating flair and design excellence)
Source: The Straits Times/03.04.2004
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9. “It” all adds up
to … THE BRAND.
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The Heart of Branding …
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“WHO ARE WE?”
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“WHAT’S OUR
STORY?”
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“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand
that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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Bahrain v. Singapore (??)
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V. NEW BUSINESS. NEW
WORK.
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10. Toward Work that Matters: The
WOW Project.
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“Let’s make a dent in the universe.”
Steve Jobs
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“Astonish me!” / S.D.
“Build something great!” / H.Y.
“Immortal!” / D.O.
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The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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VI. NEW BUSINESS. NEW
YOU.
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11. Re-inventing the Individual: Welcome
to a Brand You World
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“If there is nothing very special about
your work, no matter how hard you apply yourself, you won’t get noticed, and that
increasingly means you won’t get paid much either.”
Michael Goldhaber, Wired
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“In a global economy, the government cannot give
anybody a guaranteed success story, but you can give people the tools to make the most of
their own lives.” —WJC, from Philip Bobbitt,
The Shield of Achilles: War, Peace, and the Course of History
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“My ancestors were printers in Amsterdam from 1510 or so until
1750, and during that entire time they didn’t have to learn anything
new.”Peter Drucker, Business 2.0 (08.22.00)
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“Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,Business 2.0 (22August2000)
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Edward Jones’ Training Machine*
146 hours/employee/yearNew hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work For”/Fortune/01.2003
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Invent. Reinvent. Repeat.
Source: HP banner ad
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Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].–My current Project is challenging me …– New things I’ve learned in the last 90 days include …–My public “recognition program”
consists of …– Additions to my Rolodex in the last 90 days include …
–My resume is discernibly different from last year’s at this time …
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The Rule of Positioning
“If you can’t describe your position in eight
words or less, you don’t have a position.”
— Jay Levinson and Seth Godin, Get What You Deserve!
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“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
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12. Boss Job One:
The Talent Obsession.
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“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
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Age of AgricultureIndustrial Age
Age of Information IntensificationAge of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
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Brand = Talent.
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“The leaders of Great Groups love talent and know where to find it. They revel in
the talent of others.”Warren Bennis & Patricia Ward Biederman,
Organizing Genius
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From “1, 2 or you’re out” [JW] to …
“Best Talent in each industry segment to build
best proprietary intangibles” [EM]
Source: Ed Michaels, War for Talent
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“Where do good new ideas come from? That’s simple! From
differences. Creativity comes from unlikely juxtapositions.
The best way to maximize differences is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
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CM Prof Richard Florida on
“Creative Capital”: “You cannot get a technologically
innovative place unless it’s open to weirdness,
eccentricity and difference.”
Source: New York Times/06.01.2002
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The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found
among non-conformists, dissenters and rebels.”
David Ogilvy
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Talent Department
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People Department
Center for Talent Excellence
Seriously Cool People Who Recruit & Develop Seriously Cool People
Etc.
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13. Brand Talent+: Addressing the
Education Fiasco. (American Style.)
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“My education was a prolonged and
concerted attack on my individuality.” —Neil
Crofts, Authentic
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J. D. Rockefeller’s General Education Board
(1906): “In our dreams people yield themselves with perfect docility to our
molding hands. … The task is simple. We will organize children and teach
them in a perfect way the things their fathers and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
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“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor
grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a
state requirement for demonstrating ‘grade-level motor
skills.’ ”Jordan Ayan, AHA!
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“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse 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 visited was participating in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
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Ye gads: “Thomas Stanley has not only found no correlation between success in school and an
ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-
related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.
Yet the success-failure standards of most schools penalized risk takers. Most educational
systems reward those who play it safe. As a result, those who do well in school find it hard to
take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
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VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES
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14. THINK WEIRD … the HVA/
High Value Added Bedrock.
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Saviors-in-Waiting
Disgruntled CustomersOff-the-Scope Competitors
Rogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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CUSTOMERS: “Future-defining customers may
account for only 2% to 3% of your total, but they represent a crucial
window on the future.”Adrian Slywotzky, Mercer Consultants
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“If you worship at the throne of the voice of the customer, you’ll get only
incremental advances.”Joseph Morone, President,
Bentley College
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COMPETITORS: “The best swordsman in the world doesn’t need to fear
the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
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“To grow, companies need to break out of a vicious
cycle of competitive benchmarking, imitation and
pursuit.” —W. Chan Kim & Renee Mauborgne,
“”Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03
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“The short road to ruin is to emulate the
methods of your adversary.” — Winston
Churchill
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Employees: “Are there enough weird
people in the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
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Suppliers: “There is an ominous downside to strategic supplier
relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
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Boards: “Extremely contentious boards that regard dissent as an
obligation and that treat no subject as undiscussable” —Jeffrey
Sonnenfeld, Yale School of Management
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“The Bottleneck is at the Top of the Bottle”
“Where are you likely to find people with the least diversity of experience, the largest investment in the past, and
the greatest reverence for industry dogma?
At the top!”
— Gary Hamel, “Strategy or Revolution/ Harvard Business Review
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We become who we
hang out with!
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Kevin Roberts’ Credo
1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.10. Avoid moderation!
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Innovation Index: How many of your Top 5
Strategic Initiatives score 7 or higher (out of 10) on a “Weirdness/Profundity
Scale”?
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VIII(. NEW BUSINESS. NEW LEADERSHIP.
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15. The Passion
Imperative: The
Leadership50
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The Basic Premise.
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1. Leadership Is a …
Mutual Discovery Process.
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“Ninety percent of what we call ‘management’ consists of making it
difficult for people to get things done.” – P.D.
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“I don’t know.”
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Quests!
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Organizing Genius / Warren Bennis and Patricia Ward Biederman
“Groups become great only when everyone in them, leaders and
members alike, is free to do his or her absolute best.”
“The best thing a leader can do for a Great Group is to allow its members to
discover their greatness.”
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The Leadership
Types.
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2. Great Leaders on Snorting
Steeds Are Important – but
Great Talent Developers (Type I
Leadership) are the Bedrock of Organizations that Perform Over
the Long Haul.
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Whoops: Jack didn’t have a vision!
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3. But Then Again, There Are Times When This “Cult of Personality”
(Type II Leadership) Stuff Actually Works!
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“A leader is a dealer in hope.”
Napoleon
(+TP’s writing room pics)
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4. Find the “Businesspeople”!
(Type III Leadership)
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I.P.M. (Inspired Profit
Mechanic)
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5. All Organizations
Need the Golden Leadership
Triangle.
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The Golden Leadership Triangle: (1) Creator-
Visionary … (2) Talent Fanatic-Mentor-V.C. …
(3) Inspired Profit Mechanic.
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The Essential Tension
— Keeper of the Flame of Creation (Brahma = Creator) — Keeper of the Flame of Preservation (Vishnu = Preserver) — Keeper of the Flame of Destruction (Shiva = Destroyer)
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6. Leadership Mantra
#1: IT ALL DEPENDS!
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Renaissance Men are … a snare, a
myth, a delusion!
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7. The Leader Is Rarely/Never the Best Performer.
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The Leadership
Dance.
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8. Leaders …
SHOW UP!
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“A body can pretend to care, but they
can’t pretend to be there.” — Texas Bix Bender
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9. Leaders … LOVE the
MESS!
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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10. Leaders
DO!
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The Kotler Doctrine:
1965-1980: R.A.F.(Ready.Aim.Fire.)
1980-1995: R.F.A.(Ready.Fire!Aim.)
1995-????: F.F.F.(Fire!Fire!Fire!)
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11. Leaders
Re-do.
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“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through version after version, until they get
something good enough. Then they leverage the power they’ve gained in
other markets to enforce their standard.”Seth Godin, Zooming
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12. BUT … Leaders
Know When to Wait.
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Tex Schramm: The
“too hard” box!
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13. Leaders Are …
Optimists.
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Hackneyed but none the less
true: LEADERS SEE CUPS AS “HALF
FULL.”
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Half-full Cups: “[Ronald Reagan] radiated an almost transcendent
happiness.”Lou Cannon, George (08.2000)
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14. Leaders …
DELIVER!
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“Leaders don’t
‘want to’ win.
Leaders ‘need to’ win.”
#49
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“It is no use saying ‘We are doing our best.’ You have got to succeed in doing
what is necessary.” —WSC
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15. BUT … Leaders Are
Realists/Leaders Win Through LOGISTICS!
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16. Leaders
FOCUS!
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“To Don’t ” List
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17. Leaders …
Set CLEAR DESIGN SPECS.
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Danger: S.I.O. (Strategic
Initiative Overload)
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JackWorld/1@T: (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
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18. Leaders …
Send V-E-R-Y Clear Signals About
Design Specs!
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Ridin’ with Roger: “What have you done to
DRAMATICALLY IMPROVE quality in the
last 90 days?”
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If It Ain’t Broke … Break It.
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19. Leaders …FORGET!/
Leaders … DESTROY!
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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
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Cortez!
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20. BUT … Leaders
Have to Deliver, So They Worry About “Throwing the Baby Out with the
Bathwater.”
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“Damned If You Do, Damned If You Don’t, Just Plain
Damned.”Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)
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21. Leaders …
HONOR THE USURPERS.
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Saviors-in-Waiting
Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers
Wayne Burkan, Wide Angle Vision
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22. Leaders Make [Lotsa] Mistakes
– and MAKE NO BONES ABOUT IT!
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“Fail faster. Succeed sooner.”
David Kelley/IDEO
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23. Leaders Make …
BIG MISTAKES!
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“Reward excellent
failures. Punish mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
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Create.
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24. Leaders Know that
THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW
MARKETS.
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No one ever made it into the Business Hall of Fame on a record of
“line extensions.”
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“Acquisitions are about
buying market share. Our challenge is to create markets.
There is a big difference.” Peter Job, CEO, Reuters
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25. Leaders … Make Their Mark /
Leaders … Do Stuff That Matters
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“I never, ever thought of myself
as a businessman. I was interested in creating
things I would be proud of.” —Richard Branson
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Legacy!
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CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or 2022, and write a business history of
Bermuda. What will have been said about your company during your
tenure?”
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Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and
imagine me immediately doing something about what you’ve just said. What would it be?”
“Do you feel you have an obligation to ‘Make the world a
better place’?”
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26. Leaders Push Their
Organizations W-a-y Up the Value-added/
Intellectual Capital Chain
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersConsulting business!
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27. Leaders
LOVE the New Technology!
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100 square feet
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28. Needed? Type IV Leadership: Technology
Dreamer-True Believer
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The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent
Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True
Believer
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Talent.
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29. When It Comes to
TALENT … Leaders Always Swing
for the Fences!
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30. Leaders Don’t Create “Followers”:
THEY CREATE LEADERS!
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“I start with the premise that the
function of leadership is to produce more leaders, not more
followers.”—Ralph Nader
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31. Leaders “Win Followers Over”
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WHAT AN IDIOT: “Instead of employees being in the driver’s
seat, now we’re in the driver’s seat.”
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PJ: “Coaching is winning
players over.”
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Passion.
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32. Leaders …
Out Their
PASSION!
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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33. Leaders Know: ENTHUSIASM
BEGETS ENTHUSIASM!
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BZ: “I am a … Dispenser of Enthusiasm!”
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“You can’t behave in a calm, rational manner. You’ve got to
be out there on the lunatic fringe.” — Jack Welch,
on GE’s quality program
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“I’m looking for insane
commitment.” —Twyla
Tharp, The Creative Habit
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34. Leaders Are …
in a Hurry
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35. Leaders Focus on the
SOFT STUFF!
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“Soft” Is “Hard”
- ISOE
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Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life,
Engagement, Commitment, Great Causes & Determination to Make a
Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
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The “Job” of Leading.
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36. Leaders Know It’s
ALL SALES ALL THE TIME.
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TP: If you don’t LOVE SALES … find
another life. (Don’t pretend
you’re a “leader.”) (See TP’s The Project50.)
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37. Leaders
LOVE “POLITICS.”
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TP: If you don’t LOVE POLITICS … find
another life. (Don’t pretend
you’re a “leader.”)
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38. But … Leaders Also
Break a Lot of China
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39. Leaders
Give … RESPECT!
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“It was much later that I realized Dad’s secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a
bishop or a college president. He was seriously interested in who you were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
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Amen!
“What creates trust, in the end, is the leader’s
manifest respect for the followers.” — Jim O’Toole, Leading Change
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40. Leaders Say
“Thank You.”
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“The two most powerful things
in existence: a kind word and a thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
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41. Leaders Are …
Curious.
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TP/08.2001: The Three Most Important Letters …
WHY?
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42. Leadership Is a …
Performance.
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“It is necessary for the President to be the
nation’s No. 1 actor.”
FDR
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43. Leaders … Are The Brand
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“You must be the change you
wish to see in the world.”
Gandhi
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44. Leaders …
Have a GREAT STORY!
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“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
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Introspection.
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45. Leaders …
Enjoy Leading.
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“Warren, I know you want to ‘be’
president. But do you want to ‘do’
president?”
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46. Leaders …
KNOW THEMSELVES.
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Individuals (would-be leaders) cannot engage in a
liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty
control freaks.)
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47. But … Leaders
have MENTORS.
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The Word According to TP: Upon having the Leadership
Mantle placed upon one’s head, he shall never hear
the unvarnished truth again!* (*Therefore, he needs one faithful compatriot to lay it
on with no jelly.)
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48. Leaders … Take Breaks.
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Zombie!Zombie!Zombie!Zombie!
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The End Game.
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49. Leaders ???
:
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“Leadership is the PROCESS of
ENGAGING PEOPLE in CREATING a LEGACY
of EXCELLENCE.”
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“ ‘It’s only business, not personal’ … IT
ALWAYS IS PERSONAL.”
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“LEADERS NEED TO BE THE ROCK OF
GIBRALTAR ON ROLLER BLADES”
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50. Leaders Know
WHEN TO LEAVE!
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“Sir Richard’s Rules:
“Follow your passions.“Keep it simple.
“Get the best people to help you.Re-create yourself.
“Play.”
Source: Fortune/10.03
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Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.
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T. J. Peters T. J. Peters 1942 – 2---1942 – 2---
HE WOULDA DONE SOME HE WOULDA DONE SOME
REALLY COOL STUFF REALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’T HIS BOSS WOULDN’T
LET HIM! LET HIM!
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T. J. Peters T. J. Peters 1942 – 2---1942 – 2---
HE WAS A PLAYER!HE WAS A PLAYER!
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It is the foremost task—and responsibility—of our generation to
re-imagine our enterprises, private and public. —from the Foreword,
Re-imagine: Business Excellence in a Disruptive Age
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The Re-imagineer’s Credo … or, Pity the Poor Brown*
Technicolor Times demand …Technicolor Leaders and Boards who recruit …
Technicolor People who are sent on …Technicolor Quests to execute …
Technicolor (WOW!) Projects in partnership with …Technicolor Customers and …
Technicolor Suppliers all of whom are in pursuit of …Technicolor Goals and Aspirations fit for …
Technicolor Times.
*WSC
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Thank You!