Tom Peters Re-Imagine2006! Business Excellence in a Disruptive Age REI. WorkingMaster.reformatted.21February2006 Title
The Incredible, Wild, Whacky, Scary, SuperCool Future and Why Were Not Even Remotely Prepared, and What We Can Do About It, for the Sake of of Our Careers, Work and Organizations: A Musing on Strategies, Tactics, Attitudes, Tips, and General Observations, Such as Why a CFO Should Never Be Promoted to CEO, Why all Big Mergers stink (except on Wall Street @ bonus time), Why scale economies are over-rated, How to beat Wal*Mart, Why All MBA Programs Should Be Closed, How the 2Bs (Bentonville and Beijing) Became the Co-capitols of the
Universe, Why Only Freaks Get Things Done (in Freaky Times), Why Outrageously Audacious Devotion to Game-changing Innovation Is the Premier Survival Requisite, Why Decentralization is still the most Potent Medicine available, Why Women Are Better Leaders Than Men (and They Also Buy Everything, Though Just Try Telling That to the Worlds Advertising Geniuses), Why Hospitals are The Killing Fields, and How UPS & IBM Are Actually All About Love!
China! China! China! China
THREE BILLION NEW CAPITALISTS Clyde Prestowitz 3,000,000,000 Conference = Time Out Is not: about picking up tips on
data base privacy issues Is: about re-imagining marketing and the idea of a truly/no-bull customer-centric enterprise (Might be: about Gaspworthy game-changing Reimagine! Not Your
Fathers World I. 26 m THE CUSTOMER IS GOD AND THE
MARKET DECIDES EVERYTHING Source: Banner, Hua Xin Dress Co, Ltd., Rongcheng Industry Zone The Ultimate Luxury Item Is Now Made in China Headline/p1/The New York Times/ 07.13.2004/
Topic: Luxury Yachts made in Zhongshan A Return to Quotas: Limits on Textiles Could Push China Toward Making Upscale Goods Headline, NYT, 11.05
Vaunted German Engineers Face Competition From China Headline, p1/WSJ/07.15.2004 U.S. manufacturers and retailers are shifting their domestic warehouses and distribution facilities to
China as they seek to make supply chains more efficient Headline, page 1, Financial Times, 11.07.2005 43 h
Chinas Next Export: Innovation McKinsey Quarterly (Cover Story) From Gunpowder to the Next Big Bang: Modern
China Is Set to Get Creative Headline, NYT, 11.05 2007 C>E 2003: 98% U.S.
2005: U.S. 150; Shanghai 500 168/ 18,500/ 51,000 1 Houston/ Month/15
Chinas share of global consumption/2005: Cement 47% Cotton 37% Coal 30% Steel 26% Source: BusinessWeek/08.05
Savings, internal investment, external investment > 50% GDP 2.5M vs 7.1M 40/40
Suddenly, China is the No. 3 consumer of high-end goods Source: BusinessWeek, 0206.06 (from To Get Rich Is Glorious) 35/70 600,000
350,000 70,000 600,000/engineering degrees/2004/China 350,000/engineering degrees/2004/India 70,000/engineering degrees/2004/U.S.A.
Beijing Rushes to Build World-class Universities Headline, International Herald Tribune, 1028.05* *Headline, same day: China Bank
Becomes a Giant Worth $470 Billion Reimagine! Not Your Fathers World II. Income Confers No Immunity as
Jobs Migrate Headline/USA Today/02.2004 no job that is Americas God-given right
Sydney Morning Herald/ 25October2005 Quantas. Lay off thousands of mechanics. Maintenance to China. no job that is Australias
God-given No Limits? Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy Headline,
New York Times/06.13.04 (Special intentions, $.90 for Indians, $5.00 for Americans) December 9, 2005: Ogre to Slay? Outsource It to Chinese (New York Times, page 1news section). The factory: Fuzhou, China. The workers: youngsters
logging 12-hour shifts. Their clientele: youngsters from Seoul to San Francisco. The work: The Chinese youngsters are playing the early levels of video games for their affluent clients, who want to avoid the pain and time associated with those annoying first few levels. Developing Nations Lure Retirees, Raising Idea of
Outsourcing Boomers Golden Years Wall Street Journal, November 14.2005 When I was growing up, my parents used to say to me: Finish your dinnerpeople in China are starving. I, by contrast, find myself wanting to say to my
daughters: Finish your homeworkpeople in China and India are starving for your job. government
cannot give anybody a guaranteed success story, but you can give people the tools to make the most Re-imagine!
Not Your Fathers World III. A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately Only the
constant pursuit of innovation can ensure long-term success. render them obsolete. Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)
Were now entering a new phase of business where the franchising and management company where brand management is central. group will be a David Webster,
Chairman, InterContinental Hotels Group InterContinental will now have far more to do with brand ownership than hotel ownership. James Dawson of Charles Stanley (brokerage) Source: International Herald Tribune, 09.16, on the sacking of CEO Richard North, whose entire background is in finance
Wall Street is starting to penalize stocks for organic growth. anything but
Advertising Age/07.05 Mergers and acquisitions get the headlines, but studies show they often end up destroying shareholder value instead of creating it. Thats one reason why organic growth is so prized by corporations and investors. In fact, if you compare the stock performance of a new index of 23 companies that are masters of organic growth
to the S&P500, the Organic Growth Index beat the S&P500 handily, 31% vs. 22% over the year ending January 2004. And looking further back at a five-year period ending in 2002, the OGI walloped the S&P500, 25% vs. 3%. Fortune.com/06.03.2004 (The OGI includes Wal*Mart, Sysco, Harley-Davidson, Bed, Bath & Beyond, NVR) Top Line, Anyone?
Point (Advertising Age), to Phil Kotler: Who should the CMO report to? [Chief Marketing Officer] Chief Revenue Officerthe cost
Kotler: Maybe a side has been squeezed, now companies have to focus on top-line Chief Customer Officer. growthor maybe a
(TP: Or maybe bottom line. They 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, Oh my gosh, you need revenues to grow earnings over better vs
Get different How we feel about the evolving future tells us who we are as individuals and as a civilization: Do we search for stasisa regulated, engineered world? Or do we embrace dynamisma 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 Creative Age is a wideopen The Generals
Story. (And Harrys) (And Darwins) (And James Yorkes) (And the Admirals.) If you dont
like change, youre going to like irrelevance We eat change for
breakfas It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive
The most successful people are those who are good at plan B.
James Yorke, mathematician, on chaos theory Nelsons secret: [Other] admirals more frightened of
My Story. Charles.) (And its always better to try a swan dive and deliver a colossal belly
flop than to step timidly off the board while Point of View!/Point of Dramatic Difference!
Importance of Success Factors by Various Gurus/Estimates by Tom Peters Strategy Systems Passion Execution Porter 50%
20 15 15 Drucker 35%
30 15 20 Bennis
25% 20 30 25 Peters
15% 25 25 35
Importance of Success Factors by VariousGurus/ (Unreliable) Estimates by Tom Peters Strategy Systems People Passion Porter 50% 20
20 10 Drucker 30%
35 20 15 Bennis 25%
20 30 25 Peters
15% 20 35 30 Charles Handy on the Alchemists
Passion was what drove these people, passion for their product or their cause. If you care enough, you will find out what you need to know. Or you will experiment and not worry if the
Passion experiment goes wrong. as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. Sadly, passion
is not a word often heard in the elephant organizations, nor in schools, where it can Excellenc e! The Basics, 1982-2006 Excellence1982: The Bedrock
Eight Basics 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties
What is In Search of Excellence all about*: People. Emotion. Engagement. Empowerment. Caring.
Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat. Approximately 640 Index entries: Customer/s
(service, retention, loyalty), worker/s), 0. 4. People (employees, motivation, morale,
Innovation (product development, research & development, new products), 0. ExIn*: 1982-2002/Forbes.com EI: $10,000 yields $140,050
DJIA: $10,000 yields $85,000 *Basket of 32 publicly traded stocks Excellence2006: The Bedrock Bakers Dozen 1. A Bias For Action Is Job One! (Construct a Discipline/Culture of EXECUTION!)
2. DECENTRALIZATION! ACCOUNTABILITY! 3. Fail. Forward. Fast. (Toms Top Two, 1965-2005.) (Reward Excellent Failures, Punish Mediocre Successes.) 4. Metabolic Management Matters! (Hustle! Adapt! EAT CHANGE! Win the O.O.D.A. Loop WarConfuse Your Competitors!)
5. INNOVATE or Die. (Game-changers or Bust! Lead the Customer! Just Shout NO to Imitation!) 6. A Damn Good Product. 7. A Damn Cool Product.
(Pursue Dramatic Difference.) (Design Rules!) 8. Ride the Value Added Curve to the Sky! (Sell GamechangerSolutions; Provide Scintillating Experiences; Become a Dream Merchant; Strive to Be a Lovemark.)
9. Relentlessly Pursue the Big Two Markets. (WOMEN Buy Everything BOOMERS & GEEZERS Have All the Money!) 10. Best Talent/Roster Wins! (HR Rules! Everyone a Leader!
Women Lead Best! Weird Matters Most! A Workplace to Brag About! Educate for Creativity!) 11. Demanded: Radical Technology Strategies! (Incrementalism Is for Wimps!) 12. Hard Is Soft! Soft Is Hard! (People! Passion! Enthusiasm! Wow! INTEGRITY! TRUST! Good Citizenship.) 13. Accept No Less Than EXCELLENCE! That Vaults Us Out of Bed in the Morning)
(Excellence, Pursuit thereof, Is the #1 Thing Re-imagine! Speech: Story Line in 100 Words or Less Tom Peters/2006 Re-imagine! Speech: Story Line in 100 Words or Less
1. Wildly altered context (technology, China-India, global terrorism, etc) 2. Only answer: adaptive skills and bold-breathtaking innovation (top-line focus rather than cost-cutting focus) 3. Race way, way up the value-added curve (implemented gamealtering solutions rather than services, experiences rather than transactions, and much more) 4. As part of value-added exercise, pursue Ripe & Enormous new marketsWomen, Boomers & Geezers 5. Radical (!!!) use of IS-IT
6. A Roster of Weird & Wondrous & Entrepreneurial Talent engaged in Wow Projects 7. Metabolic Leadership (Passionate-Radical Leaders who instill a Discipline of Execution, a Quick Tempo-Adaptive Culture and an appetite to Eat Radical Change for Breakfast) (96 words by my count) Everything You Need to Know about Strategy: Toms Bakers Dozen Axioms 1. Do you have awesome Talent everywhere? Do you push that Talent to pursue
Gaspworthy Quests? 2. Is your Talent Pool loaded with wonderfully peculiar people who others would call problems? And what about your Extended Community of customers, vendors et al? 3. Is your Board of Directors as cool as your product offerings and does it have 50 percent (or at least one-third) Women Members? 4. Long-term, its a Top-line World: Is creating a culture that cherishes above all things Innovation and Entrepreneurship your primary aim? Remember: Innovation not Imitation! 5. Are the Ultimate Rewards heaped upon those who exhibit an unswerving Bias for Action, to quote the co-authors of In Search of Excellence?
6. Do you routinely use hot, aspirational words-terms like Excellence and B.H.A.G. (Big Hairy Audacious Goal, per Jim Collins) and Lets make a dent in the Universe (the Word according to Steve Jobs)? Is Reward excellent failures, punish mediocre successes your de facto motto? 7. Do you subscribe to Jerry Garcias dictum: We do not merely want to be the best of the best, we want to be the only ones who do what we do? 8. Do you elaborate on and enhance Jerry Gs dictum by adding, We subscribe to Best Sourcing and only want to associate with the best of the best. 9. Do you embrace the new technologies with child-like enthusiasm and a revolutionarys zeal?
10. Do you serve and satisfy customers or go berserk attempting to provide every customer with an awesome experience that does nothing less than transform the way she or he sees the world? 11. Do you understand to your very marrow that the two biggest under-served markets are Women and Boomers-Geezers? And that to take advantage of these two Monster Trends (FACTS OF LIFE) requires fundamental re-alignment of the enterprise? 12. Are your leaders accessible? Do they wear their passion on their sleeves? Does integrity ooze out of every pore of the enterprise? Is We care your implicit motto?
13. Do you understand Business Mantra DONT TRY TO COMPETE WITH WAL*MART ON PRICE #1 of the 00s:
This I Believe: Toms Super-TIB25 1. TECHNICOLOR Times. 2. Passion! Enthusiasm! Energy! 3. Action/R.F.A./O.O.D.A. Speed. 4. Screw-ups. BIG SCREW-Ups! 5. Mess! Improv! 6. Revolution! Re-imagine! 7. INNOVATE OR DIE!
8. Decentralize! 9. Bulk is BULL! (Mergers dont work. FOCUS Does!) 10 Different > Better 11. eALL/Power Tools for Power Strategies! 12. Forgetting/Destruction. 13. Hot Language Matters! 14. WOW!/WOW Projects. 15. VA Bedrock: The PSF. (Professional Service Firm.) 16. Daring.
17. Talent Time! Leaders Do People! 18. Talent+/Diversity. 19. Talent++/Women Rule! 20. Brand You Universe. 21. Design! 22. Gasp-worthy Experiences/Lovemarks. 23. New Market Demographics/Women/Boomers & Geezers/Green/Wellness. 24. Grace. 25. EXCELLENCE!
Everybodys Story. One Singaporean worker costs as much as 3 in Malaysia 8 in Thailand 13 in China
18 in India. Source: The Straits Times/2003 One Singaporean worker costs as much as 3 in Malaysia 8 in Thailand 13 in China
18 in India. Source: The Straits Times/2003 Thaksinomics (after Thaksin Shinawatra, PM)/ Bangkok Fashion City: managed asset reflation (add to brand value of Thai textiles by demonstrating
flair and design excellence) Source: The Straits Times/2004 Where Having Fun Is Now O.K. headline NYT/04.24.05/an article about Singapore
Its still illegal to chew gum in Singapore, but having fun in the formerly staid city-state is now officially sanctioned. Better By Design: A National Strategy NZ = Design Excellence
Chinese Apparel Makers Increasingly Seek the Creative Work headline/NYT/08.05 MADE IN TAIWAN: From Cheap
Manufacturing to Chic Branding Headline/Advertising Age/06.05 What an Evolving-Bizarre Story: E.g., Life Sciences
WE ARE BEGINNING TO ACQUIRE DIRECT AND DELIBERATE CONTROL OVER THE EVOLUTION OF ALL LIFE FORMS ON THE PLANET. Source: Juan Enriquez, As The Future Catches You On February 12, 2001, anyone with
access to the Internet Could suddenly look at a new atlas One containing the whole human genome. Source: Juan Enriquez, As The Future Catches You Radical Evolution: The
Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau Heaven (Kurzweil) Hell (Joy) Prevail
Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau GRIN: Genetics, Robotics (nanotech), Information, Nanotech Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau
We face the biggest change in tens of thousands of years in what it means to be human. In just 20 years the boundary between fantasy and reality will be rent asunder. (Rodney Brooks, AIL/MIT) We are at an inflection point in history. It is about the defining cultural, social, and political issue of our age. It is about human
transformation. Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau physical, physiological, or cognitive limitations will be key to survival and
operational dominance in the future. Michael Goldblatt, Director, the metabolically dominant soldier
Source: Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau 415-page doc, Department of Commerce/NSF: Converging Technologies for Increasing Human Performance Source: Radical Evolution: The Promise and Peril of Enhancing Our
Minds, Our Bodiesand What It Means to Be Human, Joel Garreau Gregory Stock, Director, Program on Medicine, Technology and Society, UCLA: Redesigning Humans: Our Inevitable Genetic Future Source: Radical Evolution: The Promise and Peril of Enhancing Our
Minds, Our Bodiesand What It Means to Be Human, Joel Garreau Singularity/ Bionic Tom, circa 2006: Medtronic pacemaker (heart micro-management) ; psychotropics (mental micro-management) ; Google (mindextensionsmart-beyond-measure) ; Samsung cell phone (instantpermanent planetary connectedness) ; Orvis shirt (smart skin)
H5 N I. NEW BUSINESS. NEW CONTEXT. 1. Re-
imagine Permanenc e: The Naked Emperor Path etic! 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 from life within huge corporate structures, How do I build a small firm for myself? The answer seems obvious: Buy a very large one
and Never Home Free Sears, Macys Wal*Mart, Target, CostCo BankAmerica, Citigroup Fidelity, Commerce Bank, Carlyle Group, Lending Tree, PayPal IBM/O Microsoft IBM/N Infosys Microsoft Google
US Steel, Bethlehem Nucor Howard Johnsons McDonalds, Starbucks GM, Ford Honda, Hyundai, Tata AT&T/Western Electric Avaya, Cisco RCA Sony, Nintendo, Nokia, Samsung Exit, Stage Right CEO departure rate, 1995-2004:
+300% Source: Booz Allen Hamilton (per USA Today/06.13.05) Headhunter Excellence? (CEO Performance vs S&P 500) Korn Ferry/Tom Neff: +1.1% Heidrick & Struggles/ Gerry Roche: -5.2%
know it, which is now not likely to survive the next 25 years. 120 years old, is Legally and financially,
yes, but not structurally Lessons Learned. GE. Me. 4/40 Decentral-iza-tion!
Ex-ecution! Account-abil-ity! 6:15A.M . 2. Re-
imagine: Innovate or Die! No Option! Innovate or
Die!! Brilliant! A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete.
Only the constant pursuit of innovation can ensure long-term success. Daniel Muzyka, Dean, of operations, and that mindset helped the $152 billion industrial and finance behemoth become a marvel of
earnings consistency. Immelt hasnt turned his back on But in his GE, the new imperatives are risk-taking, sophisticated marketing and,
the old ways. Resi st! Huff. Puff. Consolidat e or else! This is it!
* Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companiesthose that
failed to make a leap or, if they did, failed to sustain itoften tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness. had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs
Investment Policy Committee, answered: Im sure there are success stories out there, but at this moment I draw a Almost every personal friend I have in the world
works on Wall Street. You can buy and sell the same company six times and everybody makes but Im not sure were actually innovating. money,
Our challenge is to take nanotechnology into the future, to do personalized medicine Sanford Weill, Citigroups Former Leader, Frustrated As
Empire Is Dismantled Headline/NYT/07.21.05 Shremp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring assets and building empires that just didnt work. Arndt Ellinghorst/analyst/
Dresdner Kleinwort Wasserstein Big Shareholders Are Shouting Even Louder Headline, WSJ, 11.23.05 (re Time Warner, McDonalds, Knight Ridder, Sovereign Bancorp, Morgan Stanley, OfficeMax) Attack on McDonalds
Heralds New Order Headline, WSJ, 11.23.05 (re hedge fund-led activism) Mr Lampert should stick to investing, not matchmaking. Gretchen
Morgenson, Page 1, New York Times Sunday Business, 11.06.05, The Sears Catalog of Problems (TP: So why does this S***/the Same S*** keep happening?) Theres A and then theres A. 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 ComcastDisney
Resi st? 1103.2005/Headline/USA Today: Time Warner Announces 80% Higher Earnings: Company Raises Stock Buyback Goal TP: When a so-so companys stock is in the tank and shareholders are restless and unimpressed with short-term earnings boosts and when the company has excess cash on hand and when the company has utterly no idea how to invest
the excess cash in anything exciting that will offer a great return that will lift the share price it can buy back a big hunk of its stock which not only leads to a probable increase in share price but also relieves the company of the crushing burden of having to worry about doing anything imaginative with the money and it also puts new wealth in the hands of shareholders who following the precepts of portfolio theory can quit worrying for awhile about the hapless, unimaginative leadership of the buyback company and instead invest their newfound wealth in
a firm such as Google or Amgen which always is in need of cash to fund a long list of very cool ideas which probably will result in the creation of can you believe it actual underlying and perhaps even sustainable value. Sca economies of scale.
You dont get better by being bigger. You get worse. Dick Kovacevich/Wells The slumping giant needs
to put more pep in its But size remains a handicap. funds. Fortune on Fidelity Magellan/
1128.05 (Theres a practical limitation to running a fund of that size.Chris Traulsen, analyst, Morningstar) Scale? Microsofts Struggle With Scale Headline, FT, 09.2005
Troubling Exits at Microsoft Cover Story, BW, 09.2005 Too Big to Move Fast? Headline, BW, 09.2005 Spinoffs perform better than IPOs track record, profits freed from
the confines of the parent more entrepreneurial, more nimble Jerry Knight/Washington Post/08.05 Market Share, Anyone? 240 industries: Market-share leader is ROA leader of the time
29% Source: Donald V. Potter, Wall Street Journal Market Share, Anyone? 240 industries; market-share leader is ROA leader 29% of the time Profit / ROA leaders:
aggressively weed out customers who generate low returns Source: Donald V. Potter, Wall Street Journal 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 Innovators Dilemma Focus!
All Strategy Is Local: True Scales Limitations: competitive advantages are harder to find and maintain than people realize. The odds are best in tightly drawn markets, not big,
sprawling ones Title/Bruce Greenwald & Judd Kahn/HBR09.05 Big Winners Lousy industry Specialty (Ignored/No competition) Smaller than competitors Sweet spot Agility Discipline
Focus 4 Traits: Source: Alfred Marcus, Big Winners and Big Losers: The 4 Secrets of Long-term Business and Failure Hedge funds are leading a demand for companies to sharpen
their focus or break themselves up. Headline, Financial Times, 1028.05 Sony and the iPod. Not.
Different!* *Dramatic Difference (DH), Remarkable Point of view (SG) Franchise Lost! TP: How many of you
 really crave a new Chevy?
Whats wrong with this place? Mumble Its the products! Whats wrong
with the products? Mumble THE PRODUCTS SUCK! THERES NO SEX IN THEM similar companies,
employing similar people, with similar educational of backgrounds, coming up with similar ideas, producing similar things, with similar prices and
Just Say No to Imita tion! Miller Lite didnt stand for anything; it was
trying to be a me-too to Budweiser. Graham Mackay/ CEO/SABMiller/08.05 To grow, companies need
to break out of a vicious cycle of competitive benchmarking and imitation. W. road
to ruin is to emulate the methods of your Value innovation is about
making the competition irrelevant by creating uncontested market space. We argue that beating the competition within the confines of the existing industry is not the way to create profitable growth. Chan Kim & Rene Mauborgne (INSEAD), from Blue Ocean Strategy (The Times/London)
Acquisitions are about Our challenge is to create markets. There is buying market share.
a big difference. Peter Job, former CEO, [Immelt] is now identifying technologies with GE will systematically set out to build entirely new industries Strategy+Business, Fall 2005
This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? Its like trying
to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. Superfast or superslow. Very The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now takenso its no longer remarkable
when you decide to do it. Seth Godin, exclusive or very cheap. Extremely big or extremely small. Fast Company/02.2003 do TV, you have to create stuff that people seek out. Just because you buy 30 seconds doesnt mean youll have an impact. You
have to do something remarkab le This is not a mature category.
This is an undistin guished category. When
we did it right it was still pretty ordinary. Barry Gibbons on Nightmare No. 1
Choose! Duet Whirlpool washing machine to fabric care system white goods: a sea of undifferentiated boxes $400 to $1,300 the Ferrari of washing machines consumer: They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are
machine as aesthetic showpiece laundry room to family studio / designer laundry room (complements Sub-Zero refrigerator and part of my family. home-theater center) Source: New York Times Magazine/01.11.2004
1997-2001 >$600: 10% to 18% $400-$600: 49% to 32% <$400: 41% to 50% Source: Trading Up, Michael Silverstein & Neil Fiske The mass market is dead.
Consumers look for either The middle is untenable. price or quality. Walter Robb/COO/Whole Foods/Investors Business Daily/06.20.05
Cheap vs Cool: The Options Cheap: Nowhere to go except more cheap! Problem: the inevitable next Dell/next /Wal*Mart arrives with new biz model; meanwhile you drift toward more complexity/ sluggishness, especially if undertake sizeable mergers. Cool: From Cool (with reasonable costs)
to Stay Cool/Better vs Different. Continue/ Accelerate charge Up the VA Ladder. Tactics: (1) Up the experience ladder, (2) Gamechanger Innovation. If not: Cool drifts/staggers toward untenable Middle. Easy! FLASH!
Innovatio n Innovations Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors
Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees CUSTOMERS: Future- defining customers may account for
only 2% to 3% of your total, but they represent a crucial window on the future. If you worship at the throne of
the voice of the customer, youll get only incremental advances. 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
Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!* *Inspired by Hummingbird COMPETITORS: The
best swordsman in the world doesnt 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 doesnt do the thing he ought to do, and so the expert isnt 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 How do dominant companies lose their position? Two-thirds of the time, they pick the wrong competitor to worry about.
Don Listwin, CEO, Openwave Systems/WSJ/06.01.2004 (commenting on Nokia) Kodak . Fuji GM . Ford Ford . GM IBM . Siemens, Fujitsu Sears Kmart
Xerox . Kodak, IBM Dont benchmark , futuremark !
Employees: Are enough weird people in the there lab these days?
V. Chmn., pharmaceutical house, to a lab director Why Do I love Freaks? (1) Because when Anything Interesting happens it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the
Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky timessee immediately above.) (5) Freaks are the only (ONLY) ones who succeedas in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most
organizations are in ruts. Make that chasms.) We become who we hang out Measure Strangeness/Portfolio Quality Staff
Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we benchmark against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects
HQ Location Lunch Mates Language Board organization, groups of people are already doing things differently and
better. To create lasting change, find these areas of positive deviance look for things that went wrong and try to fix them. I
look for things that went right, and try The Ten Faces of Innovation/Tom Kelley *The Anthropologist. Master of human behavior gets the user. *The Experimenter. Mr/Ms Fast Prototyper. *The Cross-pollinator. Explores odd connections. *The Hurdler. Master remover of B.S. roadblocks.
*The Collaborator. Brings intriguing combinations of people together. *The Director. Brings out the creative best from an odd mix of talents. *The Experience Architect. Turns products into performances. *The Set Designer. Creates fabulous office environments that foster constant innovation. *The Caregiver. Anticipates customer needs like a magician. *The Storyteller. Creates narratives that capture the spirit of the group and its
products/services/experiences. Har 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 More than $$$$ #1 R&D spending, last 25 years?
More than $$$$ GM Source: Michael Schrage, FT, 11.05 Bold! Incremental
ism is innovations worst CI/6S/Etc Concerns Olives Deck Chairs
Cow Paths On a Scale of 1 to 10* My main activity is a DeckChair Shuffling, Cow-Path Paving, Olive- Reducing Project (DCSP, CPPP, ORP) ____ * 1 = No way! 10 = Fraid so.
I dont intend to be known as the King of the Tinkerers. The cast at DARPA does
not have kind words for incremental research. DARPAs only charter is radical innovation, its strategic plan says. Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodiesand What It Means to Be Human, Joel Garreau tyranny of
making Small Changes to Small Things. Rather, Big Changes to Big make Five Myths About Changing Behavior
*Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free *Small, gradual changes are always easier to make and sustain *We cant change because our brains become hardwired early in life
Source: Fast Company/05.2005 regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by
imperfectly seizing Reward excellent failures. Punish mediocre
Speed/ Tempo! dont sell insurance We sell
anymore. Strategy meetings held once or twice a year to Strategy meetings needed several times a week Source: New York Times on Meg Whitman/eBay
He who has the quickest O.O.D.A. Loops* wins! *Observe. Orient. Decide. Act. / Col. John Boyd Tempo!*
70-10 *Boyd/O.O.D.A. Loops 70-10/Nebraska/Unk QB 643 yards K.State/ Linemen spread wide/All legals go out for pass/Defenders confused & tire (Boyd/Tempo is not speed/Re-arrange the mind of the enemyT.E. By changing the geometry of
the game, and pushing the limits of space and time on the gridiron, Mike Leach is taking Texas Tech to some far out places. Michael Lewis (NY Times Lawrence)/ Magazine, 12.04.05, on Mike Leach/Texas Tech)
Action! TP/BW on BigCo Sin #1: too much talk, too little do
of what we call management consists of making it difficult for people to get Execution
is the job of the business We have a strategic plan. Its called
doing oil people really understand that you only find oil if you drill wells.
You may think youre finding it when youre drawing maps and too much emphasis on what some call highlevel strategy, on intellectualizing and philosophizing, and not
enough on implementation. People would agree on a project or initiativeand then nothing would come of Execution is a systematic
process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability. The Leaders Seven Essential Behaviors
*Know your people and your business *Insist on realism *Set clear goals and priorities *Follow through *Reward the doers *Expand peoples capabilities *Know yourself Source: Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
Action8/VPMR+/Peters on Bossidy *Knowledge/External Focus (Competitors/Customers) *Realism/Truth-telling *Vision *Projects (Must add up to Vision) *Milestones *Commitment/Energy *RapidReview
*Consequences (+/-) Realism is the heart of execution. Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done The person who is a little less conceptual but is
absolutely determined to succeed will usually find the right people and get them together to achieve objectives. Im not knocking education or looking for dumb people. But if you have to choose between someone with a staggering IQ and an elite education whos gliding along, and someone with a lower IQ but who is absolutely determined to succeed, youll
always do better with the second person. Larry Bossidy/Execution: The Discipline of Getting Things Done Relentl ess!* *Churchill, Grant, Patton, Welch, Bossidy, Nardelli This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines
Grants fearless horsemanship and his determination, but also it is the first known example of a very Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get important peculiarity of his character:
there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press onturning back was not an option for him. Michael Korda, Ulysses Grant 1 of 2,400 6:15A.M
. A man approached JP Morgan, held up an envelope, and said, Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000. Sir, JP Morgan replied, I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask. The man agreed to the terms, and handed over the envelope.
JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000 write a list of the things
that need to be done that day. 2. Do Measurable! Innovation Index: How many
of your Top 5 Strategic Initiatives/Key Projects score 8 or higher (out of 10) on a Weirdness/ Profundity/ Wow/ Gasp-worthy/ Game-changer Scale? Immelt on Innovation
breakthroughs: Pull out and fund ideas in each business that will generate >$100M in revenue; find best people to lead (80 throughout GE) Source: Fast Company/07.05 Strategic Thrust Overlay*
Sysco Microsoft (Inet, Search) GE (6-Sigma, Workout, etc.) GSK (7 CEDDs) Apple (Mac) Hyundai (et al.) (Electronics, etc.) *Different from Skunkworks Personal!
Step #1: Buy a Mirror! The First step in a dramatic
organizational change program is obvious dramatic personal Summary/The SE22: Origins of
Sustainable Entrepreneurs hip SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of todays $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use Strategic Thrust Overlays to Attack Monster Problems (Sysco, GSK, GE, Microsoft)
6. Establish a Be on the COOL Team Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically Noisy (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8. Culturally as well as organizationally Decentralized
(GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo) HPs Big Duh! Decentralize ($90B)
Undo Matrix Accountability Source: HP Says Goodbye To Drama/ BW/09.05/re Mark Hurds first 5 months DePuySpine/J&J* 70/3 50+
game-changers! *Still decentralized after all these years! No Need for Economies of Scale: Illinois Tool Revs Up Innovation by Keeping Its 655 Units Separate and Focused Headline, BW, 1031.05 (commodity producer; R&D = 1%; Top 100 patent
recipient66th in 04) ($12B rev in 04; CEO David Speer: focus, lean, customer intimacy, entrepreneurial, employee participation) Decentralizat ion is not a piece of paper. Its not me. Its either in your
heart, SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizingtireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Dont overdo pursuit of synergy (GE, J&J, Time Warner)
14. Execution/Action Bias: Just do it dont obsess on how it fits the business model. (3M, J & J) 15. Find and Encourage and Promote Strong-willed/Hypersmart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs/Intrapreneurs (3M, Microsoft) 17. Ferret out Talent anywhere and everywhere/No limits approach to retaining top talent (Nike, Virgin, GE, PepsiCo) SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from
the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News
Corp/Fox, PepsiCo) 21. Bi-polar Top Team, with Unglued Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core
Values, Open-minded about everything else (Virgin) HOW THE COAST GUARD GETS IT RIGHT Headline, Time, 10.31.2005 *Autonomy *Flexibility
*Perhaps the most important distinction of the Coast Guard is that it trusts itself Productivity: Could We Have It All Wrong (vs China, etc)? Forget: GM, GE Consider: Car dealerships, Fast-food outlets, Tanning salons, Laundromats,
Insurance agencies, Body shops, Contractors * *Employing 80%+ of us Summary: WallopWal*
Mart16* *Or: Why its so unbelievably to beat a GIANT Company easy $798 $415/SqFt/Wal*Mart
$798/SqFt/Whole Foods 4X: At London Drugs,
everyone cares about everything. 7X. 730A800P. F12A.* *93-03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
The Small Guys Guide: Wallop Wal*Mart16 *Niche-aimed. (Never, ever all things for all people, a miniWal*Mart.) *Never attack the monsters head niche business and lukewarm customers.) *Dramatically on! (Instead steal
Different (La Difference ... within our community, our industry regionally, etc is as obvious as the end of ones nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete on value/experience/intimacy, not
price. (You aint gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) *Emotional bond with Clients, BIGGIES ON EMOTION/CONNECTION!!) Vendors. (BEAT THE PSF!
Donnellys Weatherstrip Service Weymouth MA The Small Guys Guide: Wallop Wal*Mart16 *Hands-on, emotional leadership. (We are a great & cool & intimate & joyful & dramatically
different team working to transform our Clients lives via Consistently Incredible Experiences!) *A community star! (Sell local-ness per se. Sell the hell out of it!) *An incredible experience, from the first to last momentand then in the followup! (These guys are cool! They get me! They love me!)
*DESIGN DRIVEN! (Design is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the professional services.) The Small Guys Guide: Wallop Wal*Mart16 *Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)
*Sophisticated use of information technology. (Small-ish is no excuse for small aims/execution in IS/IT!) *Web-power! (The Web can make very small very big if the product-service is super-cool and one purposefully masters buzz/viral marketing.)
*Innovative! (Must keep renewing and expanding and revising and re-imagining the promise to employees, the customer, the community.) The Small Guys Guide: Wallop Wal*Mart16 *Brand-Lovemark* (*Kevin Roberts) Maniacs! (Branding is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-niche lovemark.)
*Focus on How stupid.) women-as-clients. (Most dont. *Excellence! (A small player per me has no right or reason to exist unless they are in
Relentless Pursuit of Excellence. One earns the right one damn day and client experience at a time!to beat the Big Guys in your chosen niche!) Alternate Opener: The Relentless Pursuit of Dramatic
Difference Tom Peters Excellence2006: The Relentless Pursuit of Dramatic Difference!
No Option! If you dont like change, youre going to like irrelevance even less.
General Eric Shinseki, Chief of Staff. U. S. Army Not an Answer !
Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of 57 were alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, How do I build a small firm for myself? The answer seems
Buy a very large one and just wait. obvious: Paul Ormerod, Why Most Things Fail: Tragic
! Franchise Lost! TP: How many of you
 really crave a new Chevy?
All too Commo n! This is not a mature category.
This is an undisti nguishe d But: It
Can Be Done ! 2%/50% What we sell is the ability for a 43year-old
accountant to dress in black leather, ride through small towns and have people be afraid of 2%/50%
$798 $798 $798 $798 $415/SqFt/Wal*Mart
$798/SqFt/Whole Foods $798 4X: At London
Drugs, everyone cares about London Drugs *Each major department a category killer (pharmacy, computers, photo-photo finishing, cosmetics) *Service added/ Experience (e.g., consultation booths for pharmaceutical Clients)
*Brilliant, eye-popping design-merchandising *Price point: peanuts to super-premium *Massive training, very low staff t/o *Big-bet experimentation-innovation *Locales begging for LD *Financials to die for *IS/IT/SC pioneers (compared favorably to Wal*Marts supplychain management; exquisite vendor-partner programs) *Effectively deflected Wal*Mart incursion *Philosophy: fun, enthusiasm, innovation, commitment, care,
talent development No Excuses/Wegmans: #1* 84%: Grocery stores are all alike 46%: additional spend if customers have an emotional connection to a grocery store rather than are satisfied (Gallup)
Going to Wegmans is not just shopping, its an event. Christopher Hoyt, grocery consultant You cannot separate their strategy as a retailer from their strategy as an employer. Darrell Rigby, Bain & Co. *100 Best Companies to Work for/Fortune
7X. 730A800P. F12A.* *93-03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a. Thesaurus of WOW! They hate it if you call them bankers. They love it, on the other hand, when you ask to see their #sstupendous. They are Commerce Bank. These absurdly fast growing, insanely profitable retailers, rewriting the rules of East Coast retail banking, sent me a copy of their booklet, Traditions. It explicates their
Wow the Customer Philosophy. At the end theres A Collection of Commerce Lingo. I wont define (use your imagination), but simply offer a small sample: Fans, Not Customers. Say YES 1 to say YES, 2 to say NO. (A staffer has to get a supervisors approval to say no to anything.) Recover!!! To Err Is Human; To Recover Is Devine. Leave Em Speechless. Positive Behavior. Positive Language. Kill A Stupid Rule. (Get cash rewards
for exposing dumb internal rules that impede our ability to WOW!) Make the WOW! Answer Guide Your Best Friend. Buzz Bee. CommerceWOW!Zone. (A K12 financial education program.) Doctor WOW! Ten-Minute Principle. (Stores open 10 minutes before posted hours, stay open 10 minutes after posted hoursand the hours, such as open 7 days a week, are already incredibly generous & traditionshattering.) Wall of WOW! WOW! Awards. (The annual recognition ceremonyRadio City Music Hall, with the Rockettes, in 05.) WOW! Patrol. WOW! Spotlight. WOW Van. WOW Wiz. (A service superstar.) Etc.
4 days/week 1000/204/ 4*
* Princes & Princesses who said Yes to the Dream (top agents, confident to operate without a safety net) Source: Everybody Wins, Phil Harkins & Keith Hollihan A Life Success Company RE/MAX:
Trapper: <$20 per beaver pelt. Source: WSJ WDCP*: $150 to remove problem beaver; $750- $1,000 for
flood-control piping so that beavers can stay. * Wildlife Damage-control Professional Source: WSJ Avoid Moderation!
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. better vs Get different Choose!
* Middle Madness Duet Whirlpool washing machine to fabric care system white goods: a sea of undifferentiated boxes $400 to $1,300 the Ferrari of washing machines consumer: They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are
machine as aesthetic showpiece laundry room to family studio / designer laundry room (complements Sub-Zero refrigerator and part of my family. home-theater center) Source: New York Times Magazine/01.11.2004
1997-2001 >$600: 10% to 18% $400-$600: 49% to 32% <$400: 41% to 50% Source: Trading Up, Michael Silverstein & Neil Fiske The mass market is dead.
Consumers look for either The middle is untenable. price or quality. Walter Robb/COO/Whole Foods/Investors Business Daily/06.20.05
WallopWal*Mart16 The Small Guys Guide: Wallop Wal*Mart16 *Niche-aimed. (Never, ever all things for all people, a miniWal*Mart.) *Never attack the monsters head niche business and lukewarm customers.) *Dramatically
on! (Instead steal Different (La Difference ... within our community, our industry regionally, etc is as obvious as the end of ones nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) *Compete
on value/experience/intimacy, not price. (You aint gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) *Emotional bond with Clients, BIGGIES ON EMOTION/CONNECTION!!) Vendors. (BEAT THE
PSF! Donnellys Weatherstrip Service Weymouth MA You do not merely want to be the best of the
You want to be considered the only ones who do what you do. best. The Small Guys Guide: Wallop Wal*Mart16
*Hands-on, emotional leadership. (We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!) *A community star! (Sell local-ness per se. Sell the hell out of it!) *An incredible experience, from the first
to last momentand then in the followup! (These guys are cool! They get me! They love me!) *DESIGN DRIVEN! (Design is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the professional services.) The Small Guys Guide: Wallop Wal*Mart16 *Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at
least the short term marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) *Sophisticated use of information technology. (Small-ish is no excuse for small aims/execution in IS/IT!) *Web-power! (The Web can make very small very
big if the product-service is super-cool and one purposefully masters buzz/viral marketing.) *Innovative! (Must keep renewing and expanding and revising and re-imagining the promise to employees, the customer, the community.) The Small Guys Guide: Wallop Wal*Mart16 *Brand-Lovemark* (*Kevin Roberts) Maniacs! (Branding is not just for big folks with big budgets.
And modest size is actually a Big Advantage in becoming a local-regional-niche lovemark.) *Focus on How stupid.) women-as-clients. (Most dont. *Excellence!
(A small player per me has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right one damn day and client experience at a time!to beat the Big Guys in your chosen niche!) Just Say No to Imitat
ion! This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You cant be remarkable by following someone else whos remarkable. One way to figure out a theory is to look at whats working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and
Nintendo (marketing the same Game Boy 14 years in a row)? Its like trying The thing that all these companies have in common is that they have nothing in common. They are outliers. Theyre on the fringes. to drive looking in the rearview mirror. Superfast or superslow. Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now takenso its no longer remarkable when you decide to do it. Seth Godin, Fast Company/02.2003 Winning (Guaranteed?)
! Up, Up, Up, Up,Up
the Value-added Ladder. End of: Alternate Opener: The Relentless Pursuit of Dramatic Difference II. NEW
BUSINESS. NEW TECH. 3. Re- imagine Organizing I: IS/IT as Disruptive Tool!
in DellWal*MarteBayGoogle Wal*Mart (!) & Katrina FedEx Economy
the headline/New York Times/10.08.05 Anything/ Anywhere/ Anytime Any3:
trucking company with Now its a technology company technology.
Our entire facility is digital. No paper, no film, no medical records. Nothing. And its all integrated from the lab to X-ray to records to physician order entry. Patients dont have to wait for anything. The information from the physicians office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. Its wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a
computer thats pre-programmed. If the physician wants, well 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) 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 The organizations we created have become tyrants. They have taken
control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & Ren Tissen, Zero Space: Moving Beyond Organizational
Limits. Between the local people and the top [of FEMA] seem to be about seven or eight layers of people
who need to get Power Tools for Power Solutions/ Strategies!
Sys co! Go for the Bold *Bold/Aggressive/$$$$ * Bold/GameChanger * Bold/Creative Destruction * Bold/Cool Supplier
Portfolio * Bold/Web Fanaticism 5% F500 have CIO on Board: While some of the worlds most admired companies
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 4. Re-
imagine Organizing II: What will still be critically important in the world, but as
organizers, TP In Nagano Revenue: $10B FTE: 1* *Maybe Dont own
nothin if you can help it. If you can, rent your shoes. Not out sourcing Not off shoring
Not near shoring Not in sourcing but Best Sourcing global innovation networks vs
research in large monolithic companies Source: George Colony/Forrester Research In the 21 century well see a rise of invention
companies [earning st licensing fees]. Nathan Myhrvold, Forbes, 11.05
THE NEW INSTANT COMPANIES: Cheap Design Tools. Offshore Factories. Free Buzz Marketing. How Todays Startups Are Going from Idea to $30 Million Hit Overnight Business 2.0/June 2005 (Mary Janes)
The networked model is a conversation. Eric Schmidt [Sergey] Brin and [Larry] Page have created a corporate organism that tackles most big projects in small, tightly focused teams, setting them up in an instant and breaking them down
weeks later without remorse. Forbes, 11.05 Bill & Search Limits to outsourcing: One customer service
engineer at Agilent hasnt even laid eyes on his boss in three years BusinessWeek, December 12/2006 5. Re- imagine Organizing
III: The Power THE POWER OF US: Mass Collaboration on THE INTERNET Is Shaking Up Business Cover/BusinessWeek/06.20.05 Globalization1.0: Countries globalizing (1492-1800)
Globalization2.0: Companies globalizing (18002000) Globalization3.0 : Individuals collaborating & competing globally (2000+) Source: Tom Friedman/The World Is Flat
The nearly 1 billion people online worldwidealong with their shared knowledge, social contacts, online reputations, computing power, and moreare rapidly becoming a collective force of unprecedented power. For the first time in human history, mass cooperation across
time and space is suddenly economical. BW/06.20.05 fundamental shift in power happening. Everywhere, people are getting together and, using the Internet, disrupting
whatever activities theyre The architecture of participatio Blogging made my year!
TP Portal! Conversations! Collaboration! New value! III. NEW BUSINESS. NEW
VALUE PROPOSITION. Up, Re-imagine: Up,
Up, Up the Value-added Ladder. barns burnt down now I can see the moon
Mashahide/Zen poet 6. Re-imagine Organizing IV: The White-Collar Tsunami and the Professional Service Firm (PSF) Imperative. Disintermediation is overrated. Those
who fear disintermediation should in fact be afraid of irrelevance disintermediation is just another way of saying that youve become irrelevant to your customers.
John Battelle/Point/Advertising Age/07.05 HR doesnt tend to hire a lot of independent thinkers or people who
stand up as moral Product Design Outsourcing Set For Big Rise Headline/FT/06.05 CompleteCase.com ($249 vs
$3,000) USLegalForms.com TurboTax.com YourDiagnosis.com HouseValues.com HomeGain.com House.com ServiceMagic.com LendingTree.com har.com
ZipRealty.com homedepot.com forsalebyowner.com homestore.com HomeLoanCenter.com owners.com CompleteHome.com Reply.com* *70% start search on Web (vs 49% newspaper) (1.9 weeks with Realtor vs 7.1); 35% of leads from Web (2535% of fee); commission, 6%-4.5% ($60B)
Mom, what do you do? Sarah: Mom: Im
Sarah: Mom, what do you do? I manage a cost
center. Mom: Job One: Getting (WAY) beyond the Cost center, Overhead mentality!
Answer: Professional Service Firm/PSF! Department Head to Managing Partner, IS [HR, R&D, etc.] Inc.
services company, risk management is an overhead, not a revenue center. Weve become more than that. We
pay for ourselves, and we actually make Mantra: Eichorn
it! Corporation as Mega-PSF Big Idea: (Professional Service Firm*)
* Virtual Collection of Entrepreneurially-minded Professionals (Talent/Roster) Creating/ Applying Intellectual Capital (Work Product) DD$21M The PSF35:
Thirty-Five Professional Service Firm Marks of Excellence The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (Every
Practice Group: If you cant explain your position in eight words or less, you dont have a positionSeth Godin) 2. DRAMATIC DIFFERENCE (We are the only ones who do what we doJerry Garcia) 3. Stretch Is Routine (Never bite off less than you can chewanon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
Best TeamFast) 5. Playful Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small Uneconomic Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: Dent the UniverseSteve Jobs) 9. Fire-on-the-spot Anyone Who Says, Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a commodity
10. Consistent with #9 above DO NOT SHY AWAY FROM THE WORD (IDEA) RADICAL Best is not good enough! ?????
Do good (excellent?!) work Make a lot of money Point of R.POV8
* If you cant write your movie idea on the back of a business
card, you aint Gasp worth The PSF35: The Client Experience 11. Always team with client: full partners in achieving memorable results (Wanted: Chimeras of Moonstruck Minds!)
12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project 13. Client Team Members routinely declare that working with us was the Peak Experience of my Career 14. The jobs not done until implementation is 100.00% complete (Those who dont get it must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED CULTURE CHANGE 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT
(Teach a man to fish ) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? The business of selling is not just about matching viable solutions to the customers that require them. Its equally about managing
the change process the customer will need to go through to implement the solution and achieve the value promised by the solution.* (*E.g.: CRM failure rate/Gartner: 70%) Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
The PSF35: The People & The Leadership 18. TALENT FANATICS (Best-Coolest place to work) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond same old, same old) 20. Early Opportunities (vs. Wait your turn) 21. Up or Out (Based on Legacy/Mentoring as much as Billings/Rainmaking) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)
23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #R [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A PROPRIETARY TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views
(Needed: Joe Torre) The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My life is my messageGandhi) 29. Excellence+ in EXECUTION 100.00% of the Time (No such thing as a small sins/World Series Ring to the Batboy!)
30. Drop everything/Swarm to Support a Harried-On The Verge Team 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEIL 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. Web (Technology) Obsession 34. BRAND/LOVEMARK MANIACS (Organize Around a Point of View Worth BROADCASTING: You must be the
change you wish to see in the worldGandhi) 35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as much a place at the Head Table in a PSF as in a widgets factory: You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringeJack Welch) PSF Nirvana
Counselor Trusted Advisor Static/Imitative Integrity. Quality. Excellence. Continuous Improvement.
Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience!
Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation! Coolest PSF
Fully deckedout Big Rig!* *PSF/WOW Project/Brand You/Dramatic Difference Back to the Future: The PSF/ Brand You Idea Circa 1900* William James (What Makes a Life
men with no trade must sell to the highest bidder their mere muscular strength for so many hours per day Significant/1899): * Brand You/2005 = Tradesman/1899
PSF, damn it! Game-changing Solutions: Core Mechanism PSF
(Professional Service Firm model) + Wow Projects (Different vs Better) +
Brand You WOW! The Project. Your Current Project?
1. Another days work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. Insanel
y Great Astonish me! / S.D. Build something great! / H.Y. Immortal! / D.O.
Nobody can prevent you from choosing to be exceptional. Mark Sanborn, The Fred Factor To live is the rarest thing in the world. Most people exist, that is all. Oscar Wilde
Make your life itself a creative work of art. Mike Ray, The Highest Goal A position is not an accomplishm ent. TP
I guess it comes down to a simple Get busy living, or get busy dying. choice, really.
The Shawshank Redemption Will you actually remember it as worthwhile 10 years from now?
S.H. Game-changing Solutions: Core Mechanism PSF (Professional Service Firm model)
+ Wow Projects (Different vs Better) + Brand You
The Project 50 The Project 50 CREATE 1. REFRAME: NEVER ... EVER! ... ACCEPT A PROJECT/ASSIGNMENT AS GIVEN! 2. TRANSLATE YOUR DAILY EXPERIENCES INTO COOL STUFF TO DO. 2A. Become a Benchmarking Fanatic: LOOK at every-small-thing-thathappens-to-you as a Golden Learning Opportunity. 3. Improve your vocabulary! Learn to love WOW! Use the word.
WOW! 4. There are no small projects: IN EVERY LITTLE FORM OR PROCEDURE, IN EVERY LITTLE PROBLEM THERE USUALLY LURKS A B-I-G PROJECT! 4A. CONVERT today's annoying chore into a WOW! Project. THE B-I-G IDEA: THERE'S NO SUCH THING AS A GIVEN. 5. Put on the brakes! DONT BETRAY WOW! 6. LOVE MAKES THE WORLD GO ROUND! 7. Will itthe project, our babybe beautiful? Yes ... BEAUTIFUL!
8. Design-Is-It. I.e.: One of the single most powerful forces in the whole bloody universe. 9. IS THE PROJECT REVOLUTIONARY? (ARE YOU SURE?) The Project 50 10. Is the Web factored into the project? In a b-i-g way? 11. Impact. Henry James asked this, as his ultimate question, of an artist's work: Was it worth doing? 11A. Made Anybody(s) Angry Lately?
12. RAVING FANS! 12A. Women-as-Raving Fans. Women take to products/servicesand, thence, project deliverablesfor (very) different reasons than men. 13. Pirates-on-the-high-seas. We are on a Mission/Crusade. We plan to upset the applecart (convention wisdom) Big Time ... and Make a Damn Difference. 14. If you can (hint: you can!), create a place. That Is ... Pirates Need Ships at Sea and Caves on Land. (Safe Houses in Spy-speak.) 15. Put it in your resume. NOW! PICTURE YOURSELF CROSSING THE
FINISH LINE. 16. THINK RAINBOW! 17. THINK ... OR RETHINK ... OR REFRAME ... YOUR CONCEPT ... INTO A BUSINESS PLAN. 18. Think/obsess ... D-E-A-D-L-I-N-E. Be ridiculously/absurdly/insanely demanding of yourself/your little band of renegades. The Project 50 19. Find a Wise Friend. WOW Projects Aint Easy! They Stretch You, Stress You,
and Often Vex You. And the Organization. 20. FINDAND THEN NURTUREA FEW (VERY FEW) CO-CONSPIRATORS. 20A. Find at least one user/co-conspirator. NOW. Think user from the start. 21. Consider carrying around a little card that reads: WOW! BEAUTIFUL! REVOLUTIONARY! IMPACT! RAVING FANS!
SELL 22. Be S-U-C-C-I-N-C-T. Describe your project (its benefits and its WOW!) in T-HR-E-E minutes. 22A. METAPHOR TIME! The pitchand every aspect of the projectworks best if there is a compelling theme/image/hook that makes the whole thing cohere, resonate, and vibrate with life. 23. SALES MEANS SELLING ... EVERYONE! 24. Hey: WOW Project Life = Sales. Right? So ... WORK CONSCIOUSLY ON BUZZ. GET VISIBLE AND STAY VISIBLE. 25. Do your Community Work. Start to Expand the Network! ASAP.
The Project 50 26. 27. 28. 29. 30. Last is as good as first. If they support you ... they are your friends.
Preach to the choir! Never forget your friends! Don't try to convert your enemies. Dont waste time on them. CREATE AN A-TEAM ADVISORY BOARD. Become a Master Bootstrapper. You heard it here first: Too much initial money ... kills! 31. Think B-E-T-A! As in ... Beta Site(s). You need customer-partners ... as safe-haven testing grounds for rough prototypes. IMPLEMENT 32. CHUNK! CHUNK! CHUNK! Weve gotta break itour project, now
on the movedown into tidbit/do-it-today/do-it-in-the-next-fourhours pieces. 33. Live ... Eat ... Sleep ... Breathe: Prototype! I.e.: BECOME AN UNABASHED PROTOTYPING FANATIC. 33A. Teach prototyping. Prototyping is a corporate culture issue. I.e.: Work to create a Culture of Prototyping. 34. PLAY! FIND PLAYMATES! 35. Scrunch the Feedback Loops! 36. BLOW IT UP! PLAY ... AND DESTRUCTION ... ARE HANDMAIDENS.
The Project 50 37. Keep recruiting! Iron Law: WOW Projects Call for WOW! People. Never stop recruiting! 37A. WANTED: COURT JESTER. 38. Make a B-I-G binder! This is the Project Bible. It's the Master Document ... the macro-map. 39. List mania. Ye shall make lists ... and the lists shall make ye omniscient. (No joke.) 40. Think (live/sleep/eat/breathe) Timeline/ Milestones.
40A. WANTED: MS. LAST TWO PERCENT! 41. Master the 15-Minute Meeting. You can change (or at least organize) the world in 15 minutes! 42. C-E-L-E-B-R-A-T-E! 42A. CELEBRATE FAILURES! 43. Station break! The keynote here is action. Exactly right! But: Don't allow the action fanaticism to steer you off course re WOW!/Beauty/ Revolution/Impact!/Raving Fans. 44. A Project Has an Identity. Its Alive. PROJECT = LIFE ... SPIRIT ...
PERSONALITY. The Project 50 45. Cast the Net a Little/Lot Farther Afield. 46. It's the U-S-E-R, stupid! Never lose sight of the user community. 47. Concoct a B.M.P./Buzz-Management Program. Marketing is Implementation. EXIT 48. SELL OUT! It's been us against them ... and one heck of a
ride. But now the time has come to dance with the suits ... if we really want full impact. 48A. Recruit a Mr. Follow-up ... Who Is as Passionate as You Are! (And L-O-V-E-S Administration.) 49. SEED YOUR FREAKS INTO THE MAINSTREAM ... WHERE THEY CAN BECOME MUTANT VIRUSES FOR YOUR (QUIRKY) POINT OF VIEW! 50. Write up the project history. Throw a Grand Celebratory Bash!
Excellence, to me, is the state of grace that can descend only when one tunes out all the worlds clamor, listens to an inward voice one recognizes as wiser than ones own, and
transcribes without 7. Re-imagine Businesss Fundamental Value Proposition: PSFs Unbound Fighting Inevitable
Commoditization via The Solutions Imperative. Up, Up, Up,
Up the Value-added Ladder. similar companies, employing similar people, with similar educational of
backgrounds, coming up with similar ideas, producing similar things, with similar prices and While everything may be it is also
increasingly the same. better Paul Goldberger on retail, The Sameness of Things, The New York Times Companies have
defined so much best practice that they are now more or less identical. Jesper Kunde, Unique Now ... or Never And the M Stands for ?
Systems Integrator of choice./BW Gerstners IBM: (Lou, help us turn all this into that longpromised revolution. ) IBM Global Services*
(*Integrated Systems Services Corp.): $55B Planetary Rainmaker-in-Chief! Palmisanos strategy is to expand techs borders by pushing usersand entire industries
toward radically different business models. The payoff for IBM would be access to an ocean of revenuePalmisano estimates it at $500 billion a yearthat technology companies have never been able to touch. Fortune By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture]
are followers, forever playing catch-up. However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption,
Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future. Narayana Murthy, chairmans but the game has changed forever. letter, Infosys Annual Report
[Closing/selling Boeings 8,000person facility in Wichita] was an important decision in moving forward with Boeings longterm strategy of becoming a large-scale integrator. The Wichita Eagle/06.16.2005
Big Browns New Bag: UPS Traffic Manager for Corporate America Aims to Be the Headline/BW/07.19.2004
SCS/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bank Source: Fast Company/02.04 New York-Presbyterian: 7-year,
$500M enterprisesystems consulting and equipment contract with GE Medical Systems Source: NYT/07.18.2004 Instant Infrastructure: GE Becomes a General Store
for Developing Countries headline/ NYT/07.16.05 Consulting-added GE Commercial Finance ($233B assets). Gratis advisory service called At the customer, for the Customer (E.g., GE disciplines
such as Six Sigma, JIT, succession planning, leadership development); GE Mentor. Source: Michael Neal runs GEs biggest profit engine. His secret: free advice for the clientele, Forbes, 11.05 And MasterCard
Advisors Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the Are customers bottom lines
really benefiting from what we provide them? Bob Nardelli, customers profitability. GE Power Systems Bear In Mind: Customer
Satisfaction versus Customer Success Nardellis Goal
move Home Depot beyond selling goods to selling home services. He wants to capture home improvement dollars wherever and however they are spent. E.g.: house calls (At-Home Service: $10B by 05?) pros shops (Pro Set) home project management (Project Management System a deeper selling relationship).
Source: USA Today Can this kitchen be saved? As big chains add in-house designers Wall Street Journal/ 04.29.05/Headline
UTC/Otis + Carrier: boxes to integrated building systems Architecture is becoming a commodity. Winners will be Turnkey
Facilities Management providers. SMPS Exec Flextronics --$14B; 100K employees -- contract mfg to EMS/Electronics Manufacturing Services (design, mfg, logistics,
repair); total package of outsourcing solutions (Pamela Gordon, Technology Forecasters) -- The future of manufacturing isnt just in (3,500 design engineers) making things but adding value
Source: Asia Inc./02.2004 The Value-added Ladder/Stuff n Things Goods Raw Materials The Value-added Ladder/Stuff & Transactions
Services Goods Raw Materials The Value-added Ladder/Opportunity-seeking Gamechanging Solutions /
Business Advantage Services Goods Raw Materials Era #1/Obvious Value:Our it works, is delivered on time (Close) Era #2/Augmented Value: How our it can
add valuea useful it (Solve) Era #3/Complex Value Networks: How our system can change you and deliver business advantage (CultureStrategic change) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale [Sony] faces turmoil as it makes the transition
from hardware to software, from products to services. Tim Clark & Carl Kay, It Will Take More Than a Foreign CEO to Save Sony, NYT (03.09.05) What
Isnt Matter Is What Matters Gas ... $1.75 per gallon Lipton Iced Tea .. $9.52 per gallon Ocean Spray ... $10.00 Gatorade .. $10.17
Diet Snapple ... $10.32 STP brake fluid .. $33.60 Pepto-Bismol .. $123.20 Vicks NyQuil ... $178.13 Evian water . $21.19 ($50B-$200B) Source: Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell (2004) Fleet Manager
Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Via drivers: Customer Experience Director
IV. NEW BUSINESS. NEW GAME. 8. Re-imagine Enterprise as Theater I: A World
of Scintillating Experiences. Experience s are as distinct from services as services are from goods.
Club Med is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new
me. The [Starbucks] Fix Is on We have identified a third place. And I really believe that sets us apart. The third place is that place thats not
work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager What we sell is the ability for a 43year-old accountant to dress in black leather, ride
through small towns and have people be afraid of 2/50 WHAT CAN BROWN DO FOR YOU?
The Value-added Ladder/Memorable Connection Scintillating Experiences Gamechanging Solutions/ Business Advantage Services Goods Raw Materials
Beyond the Transaction/ Satisfaction Mentality Good hotel/ Happy guest/ Exceeded Expectations vs. Great Vacation/ Great Conference/
Operation Personal Renewal/ Good to Be Home Warren Goes Shopping Q: Why did you buy Jordans Furniture?
A: Jordans is spectacular. Its all showmanship. Source: Warren Buffet interview/Boston Sunday Globe/12.05.2004
Trapper: <$20 per beaver pelt. Source: WSJ WDCP*: $150 to remove problem beaver; $750$1,000 for flood-control piping so that beavers can stay. * Wildlife Damage-control Professional
Source: WSJ 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 Extraction & Goods: Male dominance Services & Experiences: Female dominance
One companys answer: CXO* Prep DRALION/ Cirque du
Soleil Experience It: My Story II. ds expect This is not
a mature category. This is an undistin guished category.
When we did it right it was still pretty ordinary. Barry
Gibbons on Nightmare No. 1 A B C
D E Avg Toilets 0
1 6 5 5
D Genl Cleanliness 1 2 8
5 1 C- Speed
5 6 4 2 0
B Attitude 1 3
8 4 1 C Overall Experience
0 3 9 5
0 C- TOTAL 7 15
35 21 7 Food
A B C D 0
1 12 4 E 0
Avg C/C- I thought, What a dreadful mission I have in life. Id love to get six-thousand restaurants up to spec, but when I do its hum.
Ho- Its bugged me ever since. Its one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we have
created a plethora of ho-hum products and services. Just go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an ocean of ho-hum, and Im going to fight it. Whole Foods Astounding selection
Astounding quality Fun to choose (Buy FAR more than intended) Genius merchandising Use of color Attitude Knowledgeable Parking Checkout
Reeks of distinction/DD Clean (Eat off the floor/the food) Tom Ps Hotel10/05.05.05 1. Brand Distinction (dramatic difference or bust) must be
Crystal Clear. 2. SPARE NO EXPENSE IN FINDING THE BEST (AWESOME) PROPERTY MANAGER. 3. The individual propertys Point of View must be Clear to One & All. (Beyond the generic brand promise.) 4. Aim Strategically at WOMEN as Guests & Meeting Planners. 5. Aim directly at BOOMERS & GEEZERS. 6. #4 & #5 above call for cultural re-alignment,
not mere strategic programs. 7. Never assume youre Okay on the basics. (YOU PROBABLY ARENT.) 8. MBWA (Managing By Wandering Around) is Alive & Well and applies to Owners! 9 Fortune says Wegmans (groceries!!!) is the # 1 Place to Work in America WHAT ABOUT/WHY NOT YOUR HOTEL/S? 10. AMAZE ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Flower Power! 9. Re-imagine Enterprise as Theater II:
Embracing the Dream Business. complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence
of the desires of the consumer. The opportunity to help clients become what Dreamketing: Touching the clients dreams. Dreamketing: The art of telling
stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand
around the main dream. Dreamketing: Build the buzz, the The Value-added Ladder/Emotion Dreams Come True Scintillating Experiences
Gamechanging Solutions/ Business Advantage Services Goods Raw Materials The Ritz-Carlton experience
enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs We sell dreams. This is
at Domain. accomplished by addressing the halfformed needs in our customers heads. By uncovering these needs, we, in essence, fill in the blanks. We convert
No longer are we only an insurance Today, we also offer our customers the products and services that help them achieve their dreams whether its financial
provider. security, buying a car, paying for home repairs, or even taking a dream vacation. Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship
and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business Six Market Profiles
1. Adventures for Sale/IBM-UPS-GE 2. The Market for Togetherness, Friendship and Love/IBM-UPS-GE 3. The Market for Care/IBM-UPS-GE 4. The Who-Am-I Market/IBM-UPS-GE 5. The Market for Peace of Mind/IBM-UPS-GE 6. The Market for Convictions/IBM-UPS-GE Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business
IBM, UPS, GE Dream Merchan ts! PSFs
(PSF35) Dream Merchants ! individuals and as companies. We have lived as hunters
and as farmers, we have worked in factories and now we live in an information-based society whose icon is the We stand facing the fifth kind of society: the Dream Society. computer.
Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services. 10. Re-imagine the Soul of
New Value: Design Rules! Franchise Lost! TP: How many of
you  really crave a
new Chevy? Designs place in the universe. At Sony we assume that all products of our competitors have basically the same technology, price, performance
Design is the only thing that differentiates one product from another in the marketplace. and features. Design is
treated like a religion at BMW. Fortune language to talk about this kind of thing. In most peoples 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 SAMSUNG DESIGN: THE
KOREAN GIANT MAKES SOME OF THE COOLEST GADGETS ON EARTH. NOW ITS REINVENTING ITSELF TO GET EVEN COOLER. Cover/BusinessWeek/11.29.2004 Samsung By Design * 5 IDEA in 2004 (Industrial Design Excellence Awards)/1st Asian
company to win more than top European or American company * 1993/LA: Chmn Why are our products lost, while Sonys are out front? * Design staff/470 (120 in last 12 months); design budget 20% to 30%
p.a.; Design Centers in London, LA, SF, Tokyo * Designers often dictate to engineers, not vice versa THE LEADING EDGE IS RAZR-THIN: Motorolas Cool Phone Has Samsung and Other Rivals in Hot
Pursuit Headline, BW, 1205.05 Westins Heaven ly Bed DHL
Finally? (Duh.) Lafleys Love Affair With Design Cover, FC, July 2005 GMs Design Push Picks Up Speed Headline, BW, July 2005
Design coda. Having spent a century or more focused on other goals solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energywe are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and
Whenever we have the chance, were adding sensory, emotional appeal to ordinary function. feel. Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and
Consciousness With its carefully conceived mix of colors and textures, Starbucks aromas and music, is more indicative of our era than the iMac. It is to the Age of Aesthetics
what McDonalds was to the Age of Convenience or Ford was to the Age of Mass Productionthe touchstone success story, the exemplar of all that is good and bad Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste, writes CEO Howard Schultz.
about the aesthetic imperative. -Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness Marketing Magic* The Missing 95%:
The Unconscious! *E.g. ZMET/Zaltman Metaphor Evaluation Technique Design. If you cant win on cost, then
youre left with cool. Hypothesis: Design is the principle metaphor for the
encompassing Valueadded Imperative! Apple/ Starbucks/BM W is a state of mind , not a Better By Design
The Design49 Tom Peters/Auckland/30March2005 Better By Design: A Natioinal Strategy NZ = Design Excellence
Better By Design: Toms Design49 1. There are only 2 rules. 2. Rule #1: You cant beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain OR DIE! 5. DESIGN (WRIT LARGE) (DESIGN MINDFULNESS) IS THE SOUL/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a cultural imperative, not
a programmatic or process or throw $$$ at it issue! 7. CDEs (Culturally Design-driven Enterprises) use DesignExperiences-Dream Merchantry-Lovemarks as the Lead Dog(s) in the Olympian Innovation-Strategy-Value Proposition Struggle. 8. Dream Merchant makes as much sense for IBM or GE or UPS as for Starbucks! Better By Design: Toms Design49
9. At CDEs, Design is the Heart of the Emotional Branding Process. 10. CDEs wholeheartedly embrace ideas such as mystery, surprise, sensuality. 11. CDEs love WOW! and B.H.A.G. and Insanely Great and Gasp-worthy and Passion and Love! (Axiom: Extreme language breeds extreme products and services.) 12. Staff at CDEs laugh and cry a lot! (Axiom: Calm enterprise = Crappy enterprise.)
13. CDEs love strange and weird. 14. CDEs scour the earth for strange and weird people. (CDEs know: FREAKS RULE!) 15. CDEs are extremists. (KR: Avoid moderation.) 16. CDEs know that EXCELLENCE IS NOT GOOD ENOUGH! (We must use non-linear measures!) Better By Design: Toms Design49 17. CDEs seek Discontinuities. (JG: We dont want to be the best of
the best, we want to be the only ones who do what we do.) 18. CDEs are respectful of their customers, but not slaves to their customers! CDEs LEAD THEIR CUSTOMERS! (Axioms: Listening to customers is over-rated! Focus groups suck!) 19. But: Lead customers are an entirely different matter! 20: Yet: CDEs turn customers into Raving Fans. (Think: Tattoo Brand!) 21. CDEs abide by Phil Daniels Credo: REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES.
22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO). 23. Design Directors at large companies not worth $5,000,000 per year arent worth hiring! (DD$21M.) Better By Design: Toms Design49 24. Great Designers are 10,000X better than good designers. 25. At CDEs CFOs are never former CFOs! The CEO always doubles
as the Chief Innovation Officer. 26. CDEs are Top-line Obsessed. 27. CDE execs know there is a chasm between excellent design and game-changer design. 28. Gasp-worthy design is a moving target! 29. No Broadway shows last forever. So too, great designers! (Hire them! Pay them! Cherish them! Nurture them! Fire them!) 30. Great design wrestles incessantly with the issue of cool and/versus usability.!
31. Designers get the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.) 32. CDEs get the feminine side of life. Better By Design: Toms Design49 33. CDEs Know I: WOMEN BUY EVERYTHING! 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that Were getting olderand vigorously
embrace the Boomer-Geezer market. 36. CDEs understand: Boomers-Geezers have ALL THE MONEY are by and large healthy and have 20 or so years left! 37. CDEs wonder: Can 28-year-olds design experiences for 68year-olds? 38. CDEs seek the sweetest sweet spot: Woman-Boomer-GreenieWellness. 39. Design-mindfulness is as apparent in the CDEs facilities as in its products-services! Better By Design: Toms Design49
40. Design mindfulness is as apparent in HR and Engineering and Logistics and IS/IT as in NPD. 41. CDEs will settle for nothing less then beautiful, gaspworthy Business Processes/Infrastructure! 42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) (450/8.) 43. Design-mindfulness/aesthetic sensibility is a requisite for Every Hireincluding waiters and waitresses in Fast Food outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to service
companies as to manufacturers. 45. Gasp-worthy design can transform any commodity, including ag! Better By Design: Toms Design49 46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER. 47. Small is no disadvantage in an Age of Creativity! 48. There is no such thing as a National Design
Advantage unless the current school system is Destroyed & Re-imaginedto emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness the suppression thereof typically begins at Age 4.) How sweet it is! 49. your head is screwed on right.)
(If Re-imagine the Infrastructure of Enterprise: Design = Beautiful Systems.
11. 450/8 K.I.S.S. Fred S.s mediocre thesis. Herb K.s napkin.
Great design = One-page business plan (Jim Horan) Metrics: K.I.S.S.
Really Important Stuff: Rogers Rule of Three! Bills Rule of
Visibilit y! What Gets Measured/ Obsessed About Gets Done Roger Milliken Roger Enrico Bill Creech
Richard Haass Jack Welch Donald Kennedy Freddie Mac/Fannie Mae Clear Signals! Robinson/$500K Puckett/Public
Hanging Incentives that work: Clear/ unequivocal. Huge consequences. Different from now. Stable (for a few years). Stand out (1 of 1). Giant aspirations (B.H.A.G.) Basis for deep dip promotion/s.
A review of Jack and Suzy Welchs Winning claims there are but two key differentiators that set GE culture apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an
epidemic of gaming the system. GEs performance measurement is divorced from budgetingand instead reflects how you do relative to your past performance and relative to competitors performance; ie its about how you actually do in the context of what happened in the real world, not as compared to a gamedabstract plan developed last year. Second: Putting HR on a par with finance and marketing. I.e., its the people. The Project/
Accountability Rules! (Beware Matrix Madness) Percys Rule: Two Strikes & Youre
Control: K.I.S.S. Lees Rule: Run It off a Blackberry! Life:
K.I.S.S. Its T-H-R-E-E, Stupid! I used to have a rule for myself that at any point in time I wanted to have in mind as it so happens, also in writing, on a little card I carried around with me the three big things I was
trying to get done. Three. Not two. Not four. Not five. Not ten. Three. Richard Haass, The Power
First Steps: Beauty Contest! 1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity.
Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days. Beautiful Aesthetic
Triumph Breathtaki ng have. Must hate. / Must design. Must undesign. Systems: Must
The Planning, Planning Systems, Intelligence & Measures50 The Planning, Planning Systems, Intelligence & Measures50 *K.I.S.S. (!!) (450/8.) (500/50GB.) (Lees Blackberry.)
*Complexity accretes one day/person/item at a time! *There must be a Systems & Measures Undesigner. (Rem Koolhaas: Often my job is to undo things.) *Focus!!!! *5 or fewer key indicators. (Enricos Rule of Three.) *Key indicators must be backed up by unmistakable impact on evals and compensation! (JW & 6-sigma) *Prune 50% of your measures TODAY.
The Planning, Planning Systems, Intelligence & Measures50 *Measurement Architecture = (Real) Corporate Strategy. (PERIOD.) *CIOs & CFOs & CROs will become Soulmates in effective organizations! *Can a fourth grader understand it (Paul Sherlock, JW)? *Overall systems architecture should be in the
heads of no more than three people. (Fred Brooks jr./360.) *Nothing is easier than lying with statistics. (Measurement is not Reality.) *Hard is Soft. Soft is Hard. (TP-RWjr.) (c.f. Enron.) The Planning, Planning Systems, Intelligence & Measures50 *Fanatically measure Customer Satisfaction
regarding systems/measures! *If the Customer says its confusing its confusing. PERIOD. *Systems & Measures planning must be Bottom Up! (Buy-in Rules in systems world.) *If, as a systems guy/gal, it turns you on BEWARE! (Jeffersons Rule. Lessons from Clio.) The Planning, Planning Systems, Intelligence & Measures50
*Systems & Measures should be/can be/ought to be Works of Art! *Great systems are about aesthetics! *Is it beautiful? *Is it graceful? *Is it Surprising? *Use a great Graphic Designer on all systems development teams and a damn good
Psychologist. (Steve world.) The Planning, Planning Systems, Intelligence & Measures50 *Systems design is not innocent: It is the Ultimate Power Game! *She/He who controls the primary measures Rules the World!
The Planning, Planning Systems, Intelligence & Measures50 *Budgets as weve known them are more than a wretched waste: They are Danger #1 in Turbulent Times! *Budgets are exercises in Negotiated Timidity. *Managing to budget is a/the Mortal Sin. *Plan, then burn the plan! (Koppers.) *Continuous and rolling are superb ideas but
beware so much plasticity that one forgets the starting point! Hard. Comparative datas is a very good thing. The Planning, Planning Systems, Intelligence & Measures50 *Intelligence is always obvious after the fact. *B.I.: Remember HUMINT!! *Great BizIntelligence depends on Freaks &
Whackos, from Langley to the Board Room. (I.e., Be Incredibly Eclectic in terms of sources of Intelligence.) *All intelligence gathering is a Political Activity. (C.f. CIA, FBI.) *B.I. is about outliers. (?? If you can measure it, its not on the leading edge??) The Planning, Planning Systems, Intelligence & Measures50
*If a system/measure gives you a stupid answer, its probably a stupid system/measure. *Measures should routinely produce Surprises (if not, discard them). The Planning, Planning Systems, Intelligence & Measures50 *Intangibles rule!
*Measure intangibles! (!!!!) *Be(very)ware the tangibles becoming Total Reality, thence crowding out Real Reality. *Constantly review whats not being measured. (Ever tried to drive a car using only the dashboard?) *Models are incredibly Stupid (very rough approximations of reality): Make sure everyone understands that! *Business is Art!
The Planning, Planning Systems, Intelligence & Measures50 *Perform systems & Measures post-mortems after major fiascos (Why didnt this stick out like a sore thumb?) *The half-life of Measures is 3 years. (Effective gaming begins in year #2, reaches a crescendo by year #4.)
The Planning, Planning Systems, Intelligence & Measures50 *Planning systems should support execution! (PERT/CPM.) *Uniformity of measurement/presentation across units is fantastic up to a point. *Let a thousand flowers bloom, let a hundred schools contend: Let a 100 flowers bloom, let a
dozen schools contend. *Selection of measurements is one of the Most Creative Acts in the Enterprise! *Are there Freaks aplenty in the Systems & Measures & Intelligence activities? 12. Re-imagine the Fundamental Selling
Proposition: It all adds up to (THE BRAND.) (THE STORY.) (THE DREAM.) The Love. WHO ARE
WE? Brand? Its all about Character Branding Message #1
Is Not >> Is Miller Lite didnt stand for anything; it was trying to be a metoo to Budweiser. Graham Mackay/ CEO/SABMiller/08.05 WHATS OUR
STORY? WHATS THE DREAM? Nothing Is Impossible To Be Revered As A Hothouse
For World-changing Creative Ideas That Transform Our Clients Brands, Businesses, and Reputations 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 Companies will thrive on the basis of their stories and myths. how we work with others.
Companies will need to understand that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
Brand = You Must Care! Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply
about. want to be the best of You want to be considered the only ones who do what you
the best. Brands have run out of juice. Theyre
Kevin Roberts: Lovemar ks! Brand . Lovemark Recognized by consumers . Loved by People Generic Personal
Presents a narrative .. Creates a Love story The promise of quality A touch of Sensuality Symbolic .. Iconic Defined .. Infused Statement .. Story Defined attributes ... Wrapped in
Mystery Values . Spirit Professional ... Passionately Creative Advertising agency .. Ideas company Source: Kevin Roberts, Lovemarks When we were working through
the essentials of a Lovemark, Mystery was always at the top of the list. Lovemarks
are owned by the people who love them. *Mystery *Magic *Sensuality *Enchantment
*Intimacy *Exploration Source: Kevin Roberts (e.g. Apple/iMac/ Yum.) Tattoo Brand: What % of users would tattoo the brand name on their body?
Top 10 Tattoo Brands* Harley . 18.9% Disney .... 14.8 Coke . 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex . 5.6 Nike . 4.6
Adidas . 3.1 Absolut . 2.6 Nintendo . 1.5 *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom Up, Up,
Up, Up the Value-added Ladder. Lovemark Dreams Come True
Awesome Experiences Gamechanging Solutions Services Goods Raw Materials Just One Question! How likely are you to
recommend [company/service] to a friend or colleague?/ Net promoter score Fred Reichheld (Ad Age, 11.2005) The Power
Is the Story Story > Brand ng is the core of
Branding, in the simplest sense, is the application of a story to a product or a serviceand is utilized whenever there is a surplus of interchangeable goods. Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
After the Industrial Revolution, when there were massive surpluses, needs needs were effectively met and wants and desires became central. Stories attached themselves to fastmoving consumer goods Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
Brand Everything! Operation Cause Operation Iraqi Freedom Source: Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell The branding of cultural capital
may be the next step in the evolution of community. When All Business Is Show Business, Whats Next, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James
Power = Story Power = Dream Message Is Not > Is
Branding: Is-Is Not Table TNT is not: TNT is: TNT is not: Juvenile
Contemporary Mindless Meaningful Elitist Predictable
Suspenseful Dull Frivolous Exciting
Superficial Powerful Old-fashioned Slow Self-important
Rules of Radical Marketing Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)
Lead It: New CLevels One companys answer: CXO*
C F O* *Chief Festivals Officer C
C O* *Chief Conversations Officer C
S O* *Chief Seduction Officer C L
O* *Chief LoveMark Officer C DM*
C PI* *Chief Portal Impresario W C
*Chief WOW Officer O* C ST
O* *Chief StoryTelling Officer R C *Chief
Revenue O* Officer Top Line, Anyone? Point (Advertising Age), to Phil Kotler:
Who should the CMO [Chief Marketing Officer] report to? Chief Revenue Officer the Kotler: Maybe a cost side has been squeezed,
now companies have to focus on top-line growthor maybe a Chief Customer V. NEW BUSINESS. NEW MARKETS.
13. Re-imagine the Customer I: Trends Worth Trillion$$$ Women Roar.
Ma Women are the majority market
Fara ????????? Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment) Houses 91% D.I.Y. (major home projects) 80% Consumer Electronics 51% (66% home computers) Cars 68% (90%)
All consumer purchases 83% Bank Account 89% Household investment decisions 67% Small business loans/biz starts 70% Health Care 80% USA/F.Stats: Short n (Very) Sweet >50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP);
>80% consumer spdg (Consumer = 70% all spdg) 50% biz travel 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment WimBiz: Employees > F500; 10M+: 33% all US Biz 60% work; 46M (divorced, widowed, never married) Source: Fara Warner, The Power of the Purse
1970-1998 Mens median income: +0.6% Womens median income: + 63% Source: Martha Barletta, Marketing to Women Commercial Purchasing Power
Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women 91% women: ADVERTISERS DONT UNDERSTAND US. (58% ANNOYED.)
Source: Greenfield Online for Arnolds Womens Insight Team (Martha Barletta, Marketing to Women) Men and women dont think the same way, dont communicate the same way, dont buy for the same reasons.
He simply wants the transaction to take place. Shes interested in creating a relationship. Every place women go, they make Senses Vision: Men, focused; Women, peripheral.
Hearing: Womens discomfort level I/2 mens. Smell: Women >> Men. Touch: Most sensitive man < Least sensitive women. Source: Martha Barletta, Marketing to Women Women speak and hear a language of connection and intimacy, and men
speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings. Judy Rosener, Americas Competitive Secret
Editorial/Men: Tables, rankings.* Editorial/Women: Narratives that cohere.* *Redwood (UK) Initiate Purchase
Men: Study facts & features. Women: Ask lots of people for input. Source: Martha Barletta, Marketing to Women Thanks, Marti Barletta!
The Perfect Answer Jill and Jack buy slacks in black Resting State: 30%, 90%: A woman knows her childrens friends, hopes, dreams, romances, secret fears, what
they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps As a hunter, a man needed vision that would allow him to zero in on targets
in the distance whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read
Maps Female hearing advantage contributes significantly to what is called womens intuition and is one of the reasons why a woman can read between the lines of what people say. Men, however,
shouldnt despair. They are excellent at imitating animal sounds. Barbara & Allan Pease, Why Men Dont Listen & Women Cant Read Maps Women come out better on almost every count as investors They are less likely to
hold a losing investment too long, and less likely to wait too long to sell a winner; theyre also less likely to put too much money into a single investment or to buy a reputedly hot stock without doing sufficient research. The Merrill report: When It Comes to Investing, Gender A Strong Influence on Behavior./Atlantic
Women poker players: More cautious. More patient. More disciplined. Bluff with more attention to the odds. More notes [on-line]. Learn more and improve faster. Less emotional, less ego. Know more about men than men do about them; more effective at exploiting mens attitudes. Source: Ante Up, Ladies: As poker mania grips the nation, more
women are mastering the game, applying their own life lessons to poker and the lessons of poker to life, Time, 11.05 Read This Book EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand
The Connection Proclivity in women starts early. When asked, How was school today? a girl usually tells her mother every detail of what happened, while a boy might grunt, Fine.
buy brands. They join 2.6
vs. 21 Purchasing Patterns Women: Harder to convince; more loyal once convinced.
Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1. 10. Womens
Market = Opportunity Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement
Strategy Culture Vision Leadership THE BRAND/STORY ITSELF! U.S.A. Economic Story
#1: 10.6M Why ? Guys! Kodak Sharpens Digital
Focus On Its Best Customers: Women 2005 Duh!
One of These 32-inch Flatpanel LCD Televisions Is Specifically Designed for Women: Manufacturers Turn to Designs that Appeal to Both Sexes Headline, Boston Globe, 1121.05 % of homes purchased by single women: 1981, 10%;
2005, 20% % of homes purchased by single men: 1981, 10%; 2005, 9% Source: USA Today/02.15.06 Duh! More Hotels Try to
Offer What Women Want Headline, USA Today, 11.08.05 In Dove Ads, Normal Is the New Beautiful
Doves Campaign Ads Are Raging Success Because They Are Aspirational, But Doable* Dr Joyce Brothers/ Advertising Age article-headline/08.05 *Unilever: For too long beauty has been defined by narrow, unattainable stereotypes. Its time to change all
that because real beauty comes in many shapes, sizes, colors, and ages. Dr Brothers: everyday people The disconnect between the Barbie-esque model and the average woman begins to fade. looks vs beauty Unilever brand Doves use of six generously proportioned real women to promote its skin-firming preparations must qualify as one of the most talked-about
marketing decisions taken this summer. It was also one of the most successful: Since the campaign broke, sales of the firming lotion have gone up 700 percent in the UK, 300 percent in Germany and 220 percent in the Netherlands.
Financial Times/09.29.04 Real Women Have Curves, and Ads: Marketers Discover Rail-thin Models Arent Only Choice
headline/USA Today/ 08.05 (c.f. Womens Fashion Fall 2005/NYT/09.05) Cases! McDonalds (mom-centered to majority consumer; not via kids) Home Depot (Do it Herself)
P&G (more than house cleaner) DeBeers (right-hand rings/$4B) AXA Financial Kodak (women = emotional centers of the household) Nike (more than jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want friends, not a blond sterotype)
Source: Fara Warner/The Power of the Purse Fastest growing demographic: Single-person Households (>50% in the likes of London, Stockholm) Source: Richard Scase
14. Re-imagine the Customer II: Trends Worth Trillion$$ $ Boomer Bonanza/ Godzilla Geezer.
Just Say No. 18- 44 Subject: Marketers & Stupidity Its 1844,
stupid! 1844 is stupid, Or is it: 2000-2010 Stats 18-44: -1%
55+: +21% (55-64: +47%) B78/60 44-65: New Customer Majority * *45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.
David Wolfe & Robert Snyder, Ageless Marketing Baby-boomer Women: The Sweetest of Sweet Spots
for Marketers David Wolfe WOMAN of the Year: Shes the most powerful consumer in America. And as she starts to turn sixty
this month, the affluent baby boomer is doing what shes always done redefining herself. Joan Hamilton, Town & Country, JAN06 Households headed by someone 40 or older enjoy 91% ($9.7T) of our populations net worth.
The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category. Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
LOVE THOSE BOOMERS: Their New Attitudes and Lifestyles Are a Marketers Dream Cover story, BW, 10.24.05 Boomers/60/$$$$$$$
States Rush to Lure Wealthy Retirees. Start: The senior sweepstakes kicks into high gear this weekend as the first baby boomers turn 60 and states, cities and small towns mount ad campaigns to attract up-and-coming retirees and their spending power. Headline, AOL News,12.31.05 Developing Nations Lure Retirees, Raising Idea of Outsourcing Boomers
Golden Years Headline, WSJ, 11.14.05 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes 40M credit card users 41% new cars/48% luxury cars
$610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Median Household Net Worth
<35: $7K 35-44: $44K 45-54: $83K 55-64: $112K 65-69: $114K 70-74: $120K >74: $100K Source: U.S. Census
Boomers: Were not going gently. Were going the way our generation does everything else. Research it. Make sure youre getting the best deal. Study the alternatives the way we studied alternative families and alternative diets and alternative religions. Baby Boomers Want Less Pain And More Grace Before That
Good night, reads one headline James Atlas/ My Life in the Middle Ages Top Franchises: Boomer-driven! *Comfort Keepers. Non-medical home care, such as running errands, doing the laundry, companionship. (472 franchises to date) *Liberty Fitness. Middle-aged (35-65) overweight women who want to avoid the generic fitness clubs. (65)
*Sarah Adult Day Services. For seniors who dont need constant care. (27) *Outdoor Lighting Perspectives. Aimed at boomers, especially in warmer climates, who are turning their homes into year-round vacation properties. (61) *Camp BowWow. Doggie day care, targeting affluent seniors who travel frequently. (52) *Verlo. Personalizes bed mattresses aimed at affluent boomers. (68)
Source: CNNMoney/07/05) Marketers attempts at reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so
poorly understood. Peter Francese, Possession Experiences /Desires for things/Young adulthood/to 38 Catered Experiences/ Desires to be
served by others/Middle adulthood Being Experiences/Desires for transcending experiences/Late adulthood Source: David Wolfe and Robert Snyder/Ageless Marketing Boomers: Was-Is Brand preferences locked in to Open to new experiences and products
Obsessed with looking younger to Proud of experience & worldliness Counting the days to retirement to Working longer, starting new careers Seek remedies for aches and pains to Focus on wellness Source: BW/10.05/Love Those Boomers Age Power will
rule the 21 century, and we are woefully unprepared. st Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Road Signs of the Times:
Creating an easier-to-read typeface for aging drivers The New York Times/ 01.21.2005 Sixty Is the New Thirty Cover/AARP/11.03
No: Target Marketing Yes: Target Innovation & Target Delivery Systems
Health: Century21.Job #1 (HC21.J1) Tom Peters/0206.2006 !!!!!!!!!!!!! Healthcare vs Health
Quality! Prevention! Wellness! Quality (100K deaths) Evidence/Outcomes-based medicine IS/IT-in-health(care) revolution
Wellness/Prevention Healthcare to Health transformation Wash your hands! Home-care (as the population rapidly ages) Med-school re-orientation Public health emphasis Mind-boggling (15 years?) social-moral-technological impact of life sciences (the Singularity?) H5N1/WMDs/Environmental degradation
Risk assessment (private, public) Market opportunity Public vs/+ Private responsibilities & partnerships Africa! (Unconscionable failure to attend to/staggering Health consequences for all) If God spoke to me by saying, Mark, youre down to your last three words: What would you want to say to your fellow humans that would make the most positive impact? It would be a close call between Love Thy
Neighbor and Hands. Wash Your A close third would be Move, Move, Move.
Mark Pettus, M.D., The Savvy Patient The most important thing you can do to keep from wash your hands. getting sick is to
CDC/National Center for Infectious VI. NEW BUSINESS. NEW BEDROCK. 15. Re-imagine
the Individual I: Welcome to a Brand You World Distinct or Extinct Globalization1.0: Countries globalizing (1492-1800)
Globalization2.0: Companies globalizing (18002000) Globalization3.0 : Individuals collaborating & competing globally (2000+) Source: Tom Friedman/The World Is Flat
One of the defining characteristics [of the change] is that it will be less driven by countries or corporations and more driven by real people. It will unleash unprecedented creativity, advancement of knowledge, and economic development. But at the same time, it will tend to undermine
safety net systems and penalize the unskilled. Clyde Prestowitz, Three Billion New Capitalists nothing very special about your work, no matter how hard you apply yourself you wont get noticed,
and that increasingly means you wont get You are the storyteller of your own life, and you can create your own legend or
The Rule of Positioning If you cant describe your position in eight words or less, you dont have
sitting next to a stranger at dinner and you have to describe your job in one sentence that they
can understand. If you fail this test, you are either a nuclear physicist or your job Personal Brand Equity Evaluation I am known for [2 to 3 things]; next year at this time Ill also be known for [1 more thing]. My current Project is challenging me
New things Ive 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 last years at this time
different from Will you actually remember it as worthwhile 20 years from now?
S.H. Oh, S+&*#! Tom, what have you done this year? Jessica Sutherland, IIR
R.D.A. Rate: 15%?, 25%? Therefore: Formal Investment Strategy/ R.I.P.* *Renewal Investment Plan
Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years
mostly on line. Drucker Peter 26.3 Have you invested as
much this year* in your career as in your car? New Work SurvivalKit2006 1. Mastery! (Best/Absurdly Good at Something!) 2. Manage to Legacy (All Work = Memorable/Braggable WOW Projects!) 3. A USP/Unique Selling Proposition (R.POV8: Remarkable Point
of View captured in 8 or less words) 4. Rolodex Obsession (From vertical/hierarchy/suck up loyalty to horizontal/colleague/mate loyalty) 5. Entrepreneurial Instinct (A sleepless Eye for Opportunity! E.g.: Small Opp for Independent Action beats faceless part of Monster Project) 6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!) 7. Mistress of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)
8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring interesting you to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. Embrace Marketing (Your own CSO/Chief Storytelling Officer) 12. Passion for Renewal (Your own CLO/Chief Learning Officer) 13. Execution Excellence! (Show up on time! Leave last!) The most
successful people are those who are good at plan B. James Yorke, mathematician, on chaos theory in The New Scientist Distinct or
Extinct A position is not an accomplishm ent. TP to be of use
The people I love the best jump into work head first without dallying in the shadows and swim off with sure strokes almost out of sight. I love people who harness themselves, an ox to a heavy cart, who pull like water buffalo, with massive patience, who strain in the mud and the muck to move things forward, who do what has to be done, again and again. The work of the world is common as mud.
Botched, it smears the hands, crumbles to dust. But the thing worth doing well done has a shape that satisfies, clean and evident. The pitcher cries for water to carry and a person for work that is real. Marge Piercy Source: Dave Smith, to be of use: the seven seeds of meaningful work You = Your
calendar* *Calendars NEVER lie!! Failure is unimportant. It takes courage to make a fool of yourself.
Explode through the hole. Dont be timid. If youre going to make a mistake, make it at full speed.
Charlie Weis, Notre Dame prefer to say Yes, and there are people who prefer to say No. Those who say Yes are rewarded by
the adventures they have,and those who say No are rewarded by the safety they Put your life into what you do. Your own humanity is your pathway to artistry. Beware stilted speech. The lesson Ms Cook came to teach was that artists achieve their peak when
they learn to stop proving themselves and simply, to borrow the Shakespearean phrase, let it be. Its their humanity we respond to in the end, their ability to strip away the selfconsciousness that locks us inside ourselves, and reveal the stuff that really boils in our souls.
New York Times, Sunday December 11, Take Off Your Emotional Clothes and Sing, about We Live In A Brand You World. Period. There is no job that is
Americas God-given right anymore. Nobody can prevent you from choosing to be exceptional. Mark
Sanborn, The Fred Factor To live is the rarest thing in the world. Most people exist, that is all. Oscar Wilde
If I can reduce my work to just a job I have to do, then I keep myself safely away from the losses to be endured in
putting my hearts desires at stake. David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity Make each day a Masterpiece!
JW Make your life itself a creative work of art. Mike Ray, The Highest Goal
This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining
that the world will not devote itself to making To have a firm persuasion in our work to feel that what we do is right for ourselves and good for the world at exactly the same
timeis one of the great triumphs of human existence The antidote to exhaustion is not rest, it is wholeheartednes s.
David Whyte, Crossing the Unknown Sea: Work as a Pilgrimage of Identity religious traditions take equally great pains to inform us that we must never mistake a good career for good work. Life is a creative, intimate,
unpredictable conversation if it is nothing elseand our life and our work are both the result of the way we hold that passionate To Be somebody or to Do
something BOYD: The Fighter Pilot Who Changed the Art of War (Robert Tell me, what is it you plan to do with your
one wild and precious Joe J. Jones 1942 2006 HE WOULDA DONE SOME REALLY COOL STUFF BUT HIS BOSS WOULDNT LET
HIM! T. J. Peters 1942 2--- HE WAS A PLAYER! It is always
showtim e. 100 WAYS TO SUCCEED #35: Lovemark or Bust! (1) Enjoy your the Holiday Season! (2) Between now and 1JAN2005, invent 10 actions, solo or with pals, to Launch Your Lovemark Journey2005. (3) Focus directlyArchitect or Lawyer or Realtoron the following KRWs/Kevin Roberts Words: Mystery Magic Sensuality
Enchantment Intimacy Exploration. (3A) The words in #3 above Do Apply to You! (4) Develop a No Bull Action Schedule that includes 2 Hard First Steps by 10JAN05, 5 Hard First Steps by 01FEB05. (5) Report back to this Website, tompeters.com. Pronunciamento: I HEREBY DESIGNATE, IN ACCORDANCE WITH THE POWERS GRANTED TO ME (the Inalienable Right To Blog) THAT 2005 IS PROCLAIMED AS THE YEAR OF THE PROFESSIONAL SERVICE LOVEMARK.
Welcome aboard! Source: TPBlog/12.17.2004 Getting to WOW Through Mastery of The Sales 25.
Al*: I knew my stuff and it was damn good. What I finally figured out, after a string of unfair setbacks, was that I wasnt a good salesman. Thats when I started studying
top salesmen, and thats when I started to The Sales25: Great Salespeople 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customers consultants.) (And especially the corporate culture.)
4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customers org. (Relationships at all levels & functions.) 7. Wire the home teams org. and vendors orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior
people in all functions to client meetings.) Its politics, stupid! (Play or sit on the sidelines.)
Great Salespeople 8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of moneyheres exactly how.) (IS THIS A PRODUCT SALE OR A WOW-ORIGINAL SOLUTION YOULL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)
10. Will involve anybodyincluding mortal enemiesif it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.) Great Salespeople
12. Think Turnkey. (Its always your problem!) 13. Act as orchestra conductor: You are responsible for making the whole-damn-network respond. (PERIOD.) 14. Help the customer get to know the vendors organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a good loss. (A bold effort thats sometimes better than a lousy win.)
17. Think those who regularly say Its all a price issue suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstartsthe real enemy. 20. Seek several cool customerswholl drag you into Tomorrowland. If you dont listen, you
dont sell anything. Carolyn Marland/MD/Guardian Group Great Salespeople 21. Use the word partnership obsessively, even though it is way overused. (Partnership includes folks at all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT E-NOTES.) (Most are for little things.) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word we. 23. When you look across the table at the customer, think religiously to yourself: HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED? 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED
CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple! Success or Failure? Try Instead Optimism or Failure! From Martin Seligmans Learned Optimism: I believe the traditional wisdom is incomplete. A composer can have all the talent of a Mozart and a passionate desire to succeed, but if he believes he cannot compose music, he will come to nothing. He will not try hard enough. He will give up too soon when the elusive right melody
takes too long to materialize. Success requires persistence, the ability to not give up in the face of failure. I believe that OPTIMISTIC EXPLANATORY STYLE is the key to persistence. The optimistic-explanatory-style theory of success says that in order to choose people for success in a challenging job, you need to select for three characteristics: (1) Aptitude. (2) Motivation. (3) Optimism. All three determine success. (Note: Seligmans extensive work with Met Life salespeople, among others, proved out the abovein spades.)
Pessimist: Good things Im worthless, but got lucky on this one. Bad things Im a bozo who deserved my sorry fate. Optimist: Good things I deserved that; Im the cats meow. Bad things Im the cats meow, but the cat had an unlucky day; tomorrow will be better for sure. GE (more or less):
89 Ridiculously Obvious Thoughts About Selling Stuff Tom Peters/24January2006 1. Strategy overrated, simply doin stuff underrated. See Kelleher and Bossidy. (We have a strategic plan, its called doing things.HK) Action has its own logicask Genghis Khan, Rommel, COL John Boyd,
U.S. Grant, Patton, W.T. Sherman. 2. What are you personally great at? (Key word: great.) Play to strengths! Distinct or Extinct. You should aim to be outrageously good/B.I.W. at a niche area (or more). 3. Are you a personality, a de facto brand in the industry? The Dr Phil of 4. Opportunism (with a little forethought) mostly wins. (Successful people are the ones who are good at Plan B.) 5. Little starts can lead to big wins. Most true winnersthink search &
Googlestart as something small. Many big dealsDisney & Pixar could have been done as little-er, less expensive deals if youd had the nerve to step out before the value became obvious. 6. Non-obvious targets have great potential. Among many other things, everybody goes after the obvious ones. Also, the non-obvious are often good partners for technology experiments. 7.The best relationships are often (usually?) not top to top! (Often the best: hungry division GMs eager to make a mark.)
8. Its relationships, stupiddeep and from multiple functions. 9. In any business such as GEs you must become an avid student of the politics, the incentives and constraints, mostly non-economic facing all of the players. Politicians are usually incredibly logicalif you (deeply!) understand the matrix in which they exist. 10. Relationships from within our firm are as importantoften more importantas those from outsideagain broad is as important as deep. Alliesavid supporters!within and from non-obvious places may be more important than relationships at the Client organization. Goal: an
insanely unfair market share of insiders time devoted to your projects! 11.Gratuitous comment: Lunches with good friends are typically a waste of time. 12.Interesting outsiders are essential to innovative proposal and sales teams. An exciting sales-proposal team is as important as a prestigious one. 13. Is the proposal-sales team weird enoughweirdos come up with the most interesting, game-changer ideas. Period.
14. Lunch with at least one weirdo per month. (Goal: always on the prowl for interesting new stuff.) 15.Dont short-change (time, money, depth) the proposal process. Miss one tiny nuance, one potential incentive that makes my day for a key Client playerand watch the whole gig be torpedoed. 16. Sticking with it sometimes pays, sometimes notit takes a lot of tries to forge the best path in. Sometimes you never do, after a literal lifetime.
17. Women are simply better at relationshipsdont get hung up on what industries-countries women cant do. 18. Work incessantly on your storymost economic value springs from a good story (think Perrier)! In sensitive public or quasi-public negotiations, a compelling story is of immense valuepolitics is about the tension among competing stories. (If you dont believe me, ask Karl Rove or James Carville.) (Storytelling is the core of culture.Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell) (Hint: Engineers usually stink at this.)
19. Risk Assessment & Risk Management is more about stories than advanced mathand of incredible value in long-term deals. 20. Good listeners are good sales people. Period. 21. GREAT LISTENERS ARE GREAT SALES PEOPLE. (Listening skills are hard to learn and subject to immense effort in pursuit of Mastery. A virtuoso listener is as rare as a virtuoso cello player.) 22. Things that are funny to me (American) are often-mostly not funny to those in other cultures. (Humor is as fine-edged as it gets, and rarely
travels. 23. You dont know Jack Squat about other peoples culturesespecially if you are a typically myopic American. (Like me.) 24. Are you a great interviewer? Its a make or break skill. (Think Barbara Waltersie her skill at extracting unwanted truths from pros in personaprotection in front of 10s of millions of people.) 25. Are you a great (not merely good) presenter? Mastering presentation skills is a lifes workwith stupendous payoff. 26. Are you good at flowers (Harvey Mackays Mackay 66what you should know about a Client.)
27. You cant do it allbe clear at what you are good at, bad at, indifferent at. Hubris sucks. 28. The numbers will more or less take care of themselves over the long haulif the relationship/s is/are solid gold. 29. Dont waste your time on jerksitll rarely work out in the midto long-term. 30. Genius is walking away from lousy scores (deals) and living through the attendant heat. Big Business is the premier home to Big Egos overpaying by a factor of 2 to 22 with billions at stake. (Think Jerry
Levin.) 31. You havent a clue as to how this situation will actually play outbe prepared to move fast in a different direction. 32. Keep your word. 33. There is such a thing as a good lossif youve tested something new and developed good relationships. A half-dozen honorable, ingenious losses over a ten-year period can pave the way for a Big Victory in year 11. 34. Underpromise (ie dont over-promise; ie cut yourself/GE a little slack)
even if it costs you businesswinning is a long-term affair. Overpromising is Sign #1 of a lack of integrity. You will pay the piper. 35. Think legacywhat the hell is all this really about for you and the world? (Tell me, what is it you plan to do with your one wild and precious life?Mary Oliver) 36. Keep it simple! (Damn it!) Yup, even in your business. If you cant explain it in a phrase, a page you havent got it right yet. 37. Know more than the next guy. Homework pays. (of course its obvious but in my work it is too often honored in the breach.)
38. Regardless of project size, winning or losing invariably hinges on a raft of little stuff. Little stuff is and always has been everything!!!!!!!!!!!!!!!!!!!! or, one mans little stuff is another mans 7.6 Richter deal-breaker. 39. In public settings, face saving is all. When something changes, allow the other guy to come out looking like a winner, especially if he has lost. 40. Dont hold grudges. (it is the ultimate in small mindednessand incredibly wasteful and ineffective. Theres always tomorrow.) 41. ITS ALWAYS THE POLITICS wee private-sector deal or giant public sector deal. (Every player, small or large, is angling for something.
Master the calculus of advantage.) 42. To beat the turnover problem in key Client posts amidst long negotiations, invest outrageous amounts of time building a wide & deep set of relationships with mid-level (& lower!!) plodding careerists. The invisible careerists are the bedrock upon which repeated success is built! (The Dale Moss Axiom. And mine from Capitol Hill.) 43. Little people often have Big Friends. 44. This is not war, damn it. All parties can win (or not lose, anyway).
And losing bidders can walk away from a deal with increased respect for you and your team. 45. Never, ever dump on a competitorthe Tom Watson mantra. 46. Never for get the Law of Cousins! In developing nations in particular, power brokers at all levels are at least cousins! Consideration for a second cousin can pay off big time. 47. Speaking of favors, jail sucks. 48. Work hard beats work smart. (Mostly.) 49. REPEAT: He/she who has the most-best relationships wins.
Relationships are the essence of the Work of the Salesperson. The hard and long work of the salesperson. 50. Mano v mano hardball is seldom the answerend runs based on deeper-wider networks win. If the deal is wired from below, truly wired, than the so-called big negotiations are essentially irrelevant. 51. If the deal is wired from below, truly wired, than the so-called big negotiations are essentially irrelevant.
52. If every quarter is a little better than the prior quarterthen you are not taking any serious risks. 53. Phones beat email. 54. A THREE MINUTE CALL TODAY CAN AVOID A GAME-LOSER OF A FIASCO NEXT MONTH. There was always a time when a little thing could have been addressed that headed off a subsequent big thing. As to avoiding that call, didnt someone say, Pride goeth before the fall? 55. Be hyperorganized about relationship managementyou are in the anthropology business. Study the great pols! Brilliant NRM (network
relationship management) is not accidental! It is not catch-as-catch can. (Football analogies are cutebut deep political understanding pays the private-school tuition.) 56. Think/ obsess on ROIR (Return On Investment In Relationships). 57. THANK YOU NOTES: Worlds highest-return investment! 58. The way to anyones heart: Doing a nice thing for their kid. (But, gawd, does this take a gentle touch.) 59. Scoring off other people is stupid. Winners are always in the
business of creating the maximum # of winnersamong adversaries at least as much as among partners. 60. Your colleagues successes are your successes. Period. (Trust me, my greatest personal successfinancially as well as artisticallyhas been creating a bigger pond in which everyone wins, even if my market share is down.) 61. Lend a helping hand, especially when you dont have the time. E.g. share relationshipsthe more you give away the more you get in return (just like they say in church).
62. Listen up: It was much later that I realized Dads 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 63. Mentoring is a thrilland the practical payoff is enormous. The best mentors have the whole world working its buns off for them! 64. Hire for enthusiasm. Promote for enthusiasm. Cherish enthusiasm.
Remove non-enthusiaststhey are cancers. (Nothing is so contagious as enthusiasm.Samuel Taylor Coleridge.) (A man without a smiling face must not open a shop. Chinese Proverb.) 65. Its always your problemyou sold it to them. 66. Dont get too hung up on systems integrationfirst, the individual bits have got to work. 67. Systems Integration is important. But: For Gods sake dont over promise on systems integrationits nigh on impossible to deliver. Systems/Solutions selling means grappling directly with culture
change in Client organizations. (The business of selling is not just about matching viable solutions to the customers that require them. Its equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solutionJeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale) 68. Shit happens. Thats what they pay you for. (A man without a smiling face must not open a shop. Chinese Proverb)
69. This is not a GE saleit is a Joe Jones/Jane Jones sale. YOU ARE THE BRAND THE CLIENT BUYS. (Mostly.) 70. GOAL #1: MAKE YOUR CLIENT A HEROYOU ARE NOT THERE TO GET CREDIT. (Taking credit is for ego-maniacs.) 71. Decent margins, over the mid- to long-term are a product of better relationships, not better negotiating skill. (Mostly.) 72. In the immortal words of Larry Bossidy, more or less, Realism rocks. (A little truth goes a long way.) 73. Work like hell to get a rep as an expert, to become an industry
resource. 74. Work the association angle for all its worthit may take a decade to pay off. 75. Pay your dues in the client org and in your own org! 76. Its all bloody tactics. 77. You must LOVE . the product! (Period.) 78. Dont over-schedule. Running late is inexcusable at any level of seniority; it is the ultimate mark of self-importance mixed with contempt.
79. It takes time to get to know people. (Duh.) 80. The very idea of efficiency in relationship development is STUPID. 81. MBWA (still) rules. 82. Preparing the soil is the first 98 percent. 83. WORK THE PHONES! 84. 5K miles for a 5-minute meeting often makes sense. (Thanks, Mark.) 85. Beware complexifiers and complicators. (Truly smart people simplify things.)
86. The smartest guy in the room rarely winsalas, he usually is aware hes the smartest guy. 87. Be kindit really is okay, even if you work for GE. 88. Presidents never tire of being treated like Presidents. 89. Luck matters. So: Good luck! Getting Things Done:
The Power & Implementation34. *Send Thank You notes! Its (always) all about relationships. And at the Heart of Effective Relationships is
APPRECIATION. (Oh yeah: Never, ever forget a birthday of a co-worker.) *Bring donuts! Small gestures of appreciation (on a rainy day, after a long days work the day before) are VBDs Very Big Deals. *Make the call! One short, hard-to-make call today can avert a relationship crisis that could bring you down six months from now. *Remember: There are no little gestures of kindness. As boss, stopping by someones cube for 30 seconds to inquire about their sick parent will be remembered for 10 years. (Trust me.) *Make eye contact! No big deal? Wrong! It is all about Connection! Paying
attention! Being there in the Moment Present. So, work on your eye contact, your Intent to Connect. *Smile! Or, rather: SMILE. Rule: Smiles beget smiles. Frowns beget frowns. Rule: WORK ON THIS. *Smile! (If it kills you.) Energy & enthusiasm & passion engender energyenthusiasm-passion in those we work with. *Its all RELATIONSHIPS. Remember: Business is a relationships business. (Period.) Were all in sales! (Period.) Connecting! Making our case! Following up! Networking! Relationships are what we do.
*You = Your Calendar. Your true priorities are given away by your calendar. YOUR CALENDAR NEVER LIES. What are you truly spending your time on? Are you distracted? Focused? *Whats in a number? EVERYTHING! While we all do a hundred things, we may not/should not/cannot have more than 2 (or 3) true strategic priorities at any point in time. BELIEVE IT. *She (he) who is best prepared wins! Out study, out-read, out-research the competition. Know more (lots more!) than the person on the other side of the table. *Excellence is the Ultimate Cool Idea. The very idea of pursuing excellence is a
turn onfor you and me as well as those we work with. (And, I find to my dismay, its surprisingly rare.) *Think WOW! language! Language matters! Hot words generate a Hot Team. Watch your *Take a break! We need all the creativity we can muster these days. So close your office door and do 5 (FIVE) minutes of breathing or yoga; get a bag lunch today and eat it
in the park. *You are the boss! Old ideas of lifetime employment at one company (maybe where Dad/Mom worked) are gone. No matter what your current status, think of your self as CEO of Brand Me, Inc. We are all Small Business Owners of our own careers. *Do something in the next half hour! Dont let yourself get stuck! There is ALWAYS something little you can start/do in the next thirty minutes to make a wee, concrete step forward with a problem-opportunity.
*Test it! NOW! We call this the Quick Prototype Attitude. One of lifes, especially business lifes, biggest problems is: Too much talk, too little do. If youve got a Cool Idea, dont sit on it or research it to death. Grab a pal, an empty conference, and start laying out a little model. That is, begin the process of transforming the Idea to Action ASAP. Incidentally, testing something quarter-baked in an approximation of the real world is the quickest way to learn. *Expand your horizons. Routinely reach out beyond your comfort zone. TAKE A FREAK TO LUNCH TOMORROW! Call somebody interesting youve been meaning to get in touch with; invite them to lunch tomorrow. (Lunch with the same ole gang
means nothing new learned. And thats a guarantee.) (Remember: Discomfort = Growth.) *Build a Web site. The Web is ubiquitous. Play with it! Be a presence! Start You.com ASAP! *Spread the credit! Dont build monuments to yourself, build them to othersthose whose contributions we wholeheartedly acknowledge will literally follow us into machine gun fire! *Follow Toms patented VFCJ strategy! VFCJ = Volunteer For Crappy
Jobs. That is, volunteer for the crummy little assignment nobody else wants, but will give you a chance to (1) be on your own, (2) express your creativity, and (3) make a noticeable mark when it turns out Wow. *VOLUNTEER! Lifes a maze, and you never know whats connected to what. (Six degrees of separation, and all that.) So volunteer for that Community Center fund raising drive, even though youre busy as all get out. You might end up working side-by-side with the president of a big company whos looking for an enthusiast like you, or someone wealthy who might be interested in investing in the small business you dream of
starting. *Join Toastmasters! You dont need to try and match Ronald Reagans speaking skills, but you do need to be able to speak your piece with comfort, confidence and authority. Organizations like Toastmasters can help enormously. *Dress for success! This one is old as the hills and I hate it!! But its true. FIRST IMPRESSIONS DO MATTER. (A lot!!!) *Follow the Gospel of Experience Marketing in all you do. The shrewdest
marketers today tell us that selling a product or service is not enough in a crowded marketplace for everything. Every interaction must be reframed as a Seriously Cool Experience. That includes the little 15-minute presentation you are giving to your 4 peers tomorrow. *Think of your resume as an Annual Report on Brand Me Inc. Its not about keeping your resume updated. It is about having a Super-cool Annual Report. (Tom Peters Inc 2004.) What are your stunning accomplishments that you can add to that Report each 6 months, or at the most annually? *Build a Great Team even if you are not boss. Best roster wins, right?
So, work on your roster. Meet someone new at Church or your kids birthday party? Add them to your team (Team Tom); you never know when they might be able to assist you or give you ideas or support for something you are working on. *She or he who has the Fattest & and Best-managed Rolodex wins. Your Rolodex is your most cherished possession! Have you added 3 names to it in the last 2 weeks? Have you renewed acquaintance (email, lunch, gym date) with 3 people in your Rolodex in the last month? MANAGE YOUR ROLODEX!
*Start your own business! Sure thats radical. But people are doing itespecially womenby the millions. Let the idea percolate. Chat about it, perhaps, with pals. Start a file folder or three on things you Truly Care About that just might be the basis for Cool Self-employment. *Theres nothing cooler than an Angry Customer! The most loyal customers are ones who had a problem with us and then marveled when we went the Extra Ten Miles to fix it! Business
opportunity No. 1 = Irate customers converted into fans. So are you on the prowl for customer problems to fix? *All marketing is Relationship Marketing. In business, profit is a byproduct of bringing em back. Thus, systematic and intense and repeated Follow-up and After-sales Service and Scintillating New Hooks are of the utmost importance. *BRANDING aint just for Big Dudes. This may well be Business Mistake No. 1 the idea that branding
is only for the likes of Coke and Sony and Nike. Baloney! Branding applies as much for the one-person accountancy run out of a spare bedroom as it does for Procter & Gamble. *Credibility! In the end Character Matters Most. Does he/she give their word, and then stick to it come hell & high water? Can you rely on Her/Him in a pinch? Does she/he CARE? *Grace. Is it a pleasure to do business with you? Is
it a pleasure to be a member of your team? Presentation Excellence: The PresX56 The problem with communication
...is the ILLUSION that it has been accomplished. Presentation Excellence 1. Total commitment to the Problem/Project/Outcome 2. A compelling Story line/Plot 3. Enough data to sink a tanker (98% in reserve)
4. Know the data from memory; ability to manipulate the data in your head 5. Great Stories/Illustrations/Vignettes 6. Superb political antennae (you must play the room like a Virtuoso and be hyper-attentive to the likes of Body Language) 7. By hook or by crook CONNECT 7A. CONNECT! CONNECT! CONNECT! 8. Punch line/Plot Outline/WOW/Surprise in first
one to two minutes Joe Kramer, welder: When my mothers toaster went on the fritz, I asked myself, If I were that toaster and didnt
work, what would be wrong with me? Mihaly Csikszentmihalyi, Flow: The Psychology of Optimal Experience, on empathetic identification (Joe: burdens vs opportunities to master complex problems) Presentation Excellence 9. Once youve won stop pushing (dont rub it in)
10. Be in command but dont show off (if youre brilliant theyll figure it out for themselves) 11. Pay attention to the Senior Person present, but not too much (dont look like/act like/be a suck up) 12. Brief the hell out of your champions before the presentation; insist that they make changes/fine tune ... they must own the outcome before the fact! 13. Dont try to score off your detractors be especially courteous to them (even if/especially if theyre
jerks) 14. Adjust as you go: LET THE GROUP ARRIVE AT YOUR CONCLUSION! THEY MUST OWN IT (I knew that) IN THE END! Presentation Excellence 15. No more than THREE key points! Come at them in several different ways. 16. No more than ONE point per slide!
17. Slides: NO CLUTTER!!!!!!!!!!!!!!!!!!!!! (no wee print/ charts/graphs) 18. Slides: Good quotes from the field. (Remember youre telling a story) 19. Be aware of differing cognitive styles, especially M-F 20. There must be surprise some key facts that are not commonly known/are counter-intuitive (no reason to do the presentation in the first place if there are no Surprises) 21. Summarize the argument/story from time to time 22. Include an Action Agenda that involves some small items that
will be started/accomplished in the next 72 HOURS (this ices commitment/practicality) Presentation Excellence 23. If you dont know something ADMIT IT! (this is actually a good thingas opposed to appearing as a know it all) 24. ASK FOR THE SALE! (Remember to be a closer) 25. This is War (a war for Hearts & Mind), but never forget that you are the Supplicant!
26. Data are imperative, but also play to Emotion. 27. Consider bringing along a customer (internal or perhaps external) for support 28. Be precisely clear where/when you intend to prototype and that the prototype guinea pig is lined up (better yet, do the first, at least partial, prototype before the presentation) 29. Compromise but dont yield! (Lost battles are normal, no matter how agonizing) 30. Assume that you may be cut off at any moment, and be prepared
to give on the spot a compelling 30-second to one- minute (no longer!) Brilliant Summary including Sales Pitch Presentation Excellence 31. Follow the Law of Recency: Make sure that you have been in the field with the key operating players more recently than anyone in the room 32. Make it clear that youve done a Staggering Amount of Homework, even though you are exhibiting but a tiny fraction
allude to the tons of research that are available if desired by participants; offer deeper one-on-one briefings if desired 33. SMILE! RELAX (to a point) (fake it if necessary) (up tight is disastrous) (remember you are doing them a favor by sharing this Compelling Opportunity!) 34. EYE CONTACT!!!!!!! 35. Be shrewd: Override some interruptions; be attentive to others (distraction is okay and normal within limits!) 36. Becoming an Excellent Presenter is as tough as becoming a
great baseball pitcher. THIS IS IMPORTANT and Presentation Excellence is never accidental! (Work your buns off!) Presentation Excellence 37. Practice but dont leave your game in the locker room. 38. Seek tips on how various participants play the [presentation] game 39. A Presentation is an Act (FDR: The President must be the nations number one actor)
40. Remember, the presentation is about Change RESISTANCE IS NORMAL (in fact if theres little resistance then your Project is hardly a game changer) 41. Dress well. Dont over-dress. 42. Be early (obvious, but worth saying) 43. GET THE A/V RIGHT/PERFECT. 44. Dont bring a supporting horde a couple of back-ups is okay/enough 45. No matter how good you are youll have crappy days WEEP
AND THEN GET BACK ON THE HORSE Presentation Excellence 46. Speak in Plain English keep the jargon to a minimum 47. Make your Personal Commitment clear as a bell! 48. Emphasize competitive advantage and timeliness (act now), without stooping to ridiculous war-like language (tear the heart out of the competition) (in
audiences with heavy female component, if you are male, avoid repetitive football analogues) 49. Underscore the USP/Unique Selling Proposition 50. Emphasize the Positive 51. Sell Novelty yet fit with core values 52. Remember JFKs immortal words: The only reason to give a speech is to change the world Presentation Excellence
53. Say what you have to say Clearly and then Say It Again & Again from slightly different angles 54. Make it clear that you are a Man/Woman of Action and Execution Excellence is your First, Middle, and Last Name! 55. Energy! Enthusiasm! (dont know the answer to, If you aint got it how do you get it?) 56. Enjoy it! This is a Hoot! THE ULTIMATE TURN ON! Remember your Goal:
Change the world! The only reason to give a speech is to change
the world. In classical times when Cicero had finished speaking, the people said, How well he spoke, but when Demosthenes had finished speaking, they
Let us march. said, Let us march. The Interviewing
Excellence: The IntX31 Interviewing Excellence 1. INTERVIEWING IS AN ART WORTH MASTERING! (Think Christiane Amanpour, Mike Wallace) 2. Dont overschedule2 or 3 in depth interviews are a solid days work. (More than that is lunacy and will lead to shallow results.) 3. Save, if possible, the Big Guy/Gal until lastthat is, until you
know what the hell youre doing! 4. Find a comfy/safe/neutral setting. THIS IS ALL IMPORTANT! (Worst case: You on the other side of his/her desk.) 5. Start with a little bit (LITTLE) of local small talk. But get some tips on the interviewee ahead of time; he may be one of the brusque ones who considers any small talk a waste of his Imperial Time. 6. DO YOUR DAMN HOME WORK! (On the interviewee, the subject matter.) 7. Concoct a LONG LIST of questions. (Youll only use 10% of
it, but thats okay.) Interviewing Excellence 8. Prepare a SHORT LIST of questions you must get answered. 9. Begin by briefly reviewing your assignmentwhy youre here. 10. ALWAYS ASK FOR EXAMPLES! (When she says Customer Service is in good shape, you ask for specificshard data, recent Customer Service successes (and failures). And: PRECISELY WHO YOU CAN FOLLOW UP WITH TO GET MORE DETAIL.
11. STORIES! STORIES! STORIES! (You are in the Story Collection Business.) 12. Dress well. DONT OVERDRESS. (Look like they look, more or less; perhaps a touch more formalthis is a Serious Affair you are engaging in.) 13. Assume youll never get another chance to talk to this person. 14. Be personable, but more or less match the interviewees style. (THIS IS HARD WORK!) 15. THINK SMALL! Please walk me in great detail through the
[complaint resolution] process. Here, lets diagram it. Interviewing Excellence 16. For Gods sake, get to the Front Line! (The devil is in the details, and the details are to be found on the loading dock at 3a.m.) (YES 3A.M.) 17. Dont quit until you understand. THE INTERVIEWEE ALWAYS TALKS IN SHORTHANDusing the jargon of the Corporate Culture. Youve got to crack the code. (THIS IS ABOUT THE HARDEST
THING TO DO, ESPECIALLY IF YOU ARE YOUNG AND UNCERTAIN: Tell yourself you are here to ask Dumb Questionsthis is not a job interview. Again, think Mike Wallace: So did you in fact murder Mrs. Smith?) 18. Ignore generalizations! YOU ARE HERE IN SEARCH OF SPECIFICS!!! 19. CONTEXT! Get the corporate culturee.g. Shell is not ExxonMobil! Find out (from a set of interviewees) Core Values (in theory and in practice).
Interviewing Excellence 20. Engage the Interviewee! GET HER TO DO SOME OF THE WORK! E.g., write out her view of the Ten Key Operative Core Valuesor some such. 20A. ENGAGE! ENGAGE! ENGAGE! 21. You must come across as trustworthy. YOU ARE A DUMBO HERE TO LEARNNOT AN FBI AGENT IN DISGUISE. 22. Take me through yesterday. Get past the theoretical crap. Give
me in excruciating detail an average day: YESTERDAY! (One hour/meeting at a time.) 23. If youre comfortable, lets go over your Calendar for the last month, so I can understand the flow of things. (Remember TPs Rule #1: YOU = YOUR CALENDAR.) 24. DONT LET YOUR NOTES AGE!! Immediately after the interview set aside some time to do a stream of consciousness recap. And to clean up the obscure scrawl on your notes.
Interviewing Excellence 25. Ask the interview if you can get back to her by phone tomorrow to fill in holes that your tin ear missed. NO MORE THAN TEN MINUTES. 26. LEARNING! Tag along with great interviewers in your organization. (I made three PBS films with a Director who had been Mike Wallaces director at 60 Minutesoh my God, how much I learnedor, rather, how little I learned: He could drag stuff out of people that you couldnt believe. (Secret: Im just a dumb old fart trying to figure out what goes on here. HELP ME. PLEASE.)
27. Work on your Level of Dis-satisfaction: BE MAD AS HELL WHEN YOU SPENT 1.5 HOURS ON AN INTERVIEW WITHOUT REVALATIONS! 28. No, youre not FBIBUT YOU ARE HERE TO FERRET OUT THE NON-OBVIOUS. So: Keep Digging! (Think Woodward & Bernstein.) Interviewing Excellence 29. Repeat: INTERVIEWING IS A CRUCIALLY IMPORTANT ART. Study it! Work on it! Its no different than golf or underwater basketweaving. The more & harder you work, the better you get.
30. Yes, we need facts (e.g., stories), but remember alWays: INTERVIEWS ARE PURE & SIMPLE ABOUT EMOTIONAL INTERACTION! 31. Tom Wrap-up Note: FEW THINGS IN LIFE PISS ME OFF MORE THAN GOING THROUGH SOMEONES INTERVIEW NOTES AND FINDING A DEARTH OF SOLID EVIDENCEexamples., stories, detailed process maps, etc. (I BLOODY HATE Generalizations!) (Think doctors office: Come hell & high water they start with weight, blood pressure, pulse.)
16. Re-imagine Excellence I: The Talent Obsession. Agriculture Age Industrial Age
Information Age Conceptual Age (farmers) (factory workers) (knowledge workers) (creators and empathizers)
Source: Dan Pink, A Whole New Mind Creative Age is a wideopen Human
creativity is the ultimate economic resource. Richard Florida,
The Rise of the Creative Class Brand = Talent. THE FUTURE BELONGS TO SMALL POPULATIONS WHO
BUILD EMPIRES OF THE MIND AND WHO IGNORE THE TEMPTATION OFOR DO NOT HAVE THE OPTION OFEXPLOITING NATURAL RESOURCES. Source: Juan Enriquez/As the Future Catches You Talent!
The first thing to do is to hire enough talent that a critical mass of excitement starts to grow. Tina Brown: The leaders of
Great Groups love talent and know where to find it. They revel in the talent of others. Warren Bennis & Leaders
do people. Anon. Les Wexner: From sweaters to
people! PARCs Bob Taylor: Connoiss eur of Talent Busy Executives
Fail To Give Recruiting Attention It Deserves Headline, WSJ, 1121.05 Q: If it were your $50K [lifes savings] and my $50K, what
sort of Waiters would we look for? A: Enthusia In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review
the top 20 to 50 people by name. They talk about The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies. Ed Michaels Talent Pool strengthening issues.
Hire very good From 1, 2 or youre out [JW] to Best Talent in
each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- changed 20 of his 40
box plant managers to put more talented, higher paid managers in charge. He increased profitability from Pacific $25 million to $80 million in 2 years. Ed Michaels, War for Talent
Did We Say Talent Matters? The top software developers are more productive than average software developers not by a factor of 10X or 100X, or even 1,000X, but
10,000X. Nathan Myhrvold, former Chief Scientist, Microsoft The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be
nonconformists, dissenters and rebels. found among CM Prof Richard Florida on Creative Capital: You cannot
get a technologically innovative place unless its open to weirdness, eccentricity and difference. Source: New York Times/06.01.2002 Top performing companies are two to four times more likely
pay what it takes to than the rest to prevent losing top performers. Ed Michaels, War for Talent
H.R. to H.E.D. ??? Human Enablement Department Firms will not manage the careers of their employees. They will provide opportunities to
enable the employee to develop identity and adaptability and thus be in charge of his or her own career. Tim Hall et al., The New Protean Career Contract DD$21M A review of Jack and Suzy Welchs Winning claims there are but
two key differentiators that set GE culture apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GEs performance measurement is divorced from budgetingand instead reflects how you do relative to your past performance and relative to competitors performance; ie its about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year.
Second: Putting HR on a par with finance and marketing. HR doesnt tend to hire a lot of independent
thinkers or people who stand up as moral Whats your companys EVP? Employee Value Proposition, per Ed
Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward Source: Ed Michaels et al., The War for Talent
Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
Omnicom's acquisitions: not for size per se; buying talent; deepen a relationship with a client. (Advertising Age/07.05) Omnicom very simply is about talent. Its about the acquisition of talent, providing the atmosphere so talent is attracted to it. (John Wren)
No Excuses! Wegmans: #1 100 Best Companies to Work for 84%: Grocery stores are all alike
46%: additional spend if customers have an emotional connection to a grocery store rather than are satisfied (Gallup) Going to Wegmans is not just shopping, its an event. Christopher Hoyt, grocery consultant You cannot separate their strategy as a retailer from their strategy as an employer. Darrell Rigby, Bain & Co.
I have always believed that the purpose of the corporation is to be a blessing to the employees.
Boyd RE/MAX organization would ultimately win not because it gave agents more money, but
because it gave them a chance for A Life Success Company RE/MAX:
We are a life Success Company Youre not in the real estate business
anymore; youre in the real estate agent business! Agent-centric: Re-imagine People Power: The Talent50
The Talent50 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/ Intellectual-capital Added. 4. Talent excellence in every part of the
organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is cool. The Talent50 8. Re-name HR. (Talent Department, Center of Talent Excellence) 9. Theres an HR Strategy
10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a world class Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The Top100, and every units Top10, are consciously managed.
The Talent50 15. People/Talent Reviews are the FIRST reviews. 16. HR Strategy = Business Strategy. 17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21.
20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay! The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% business people.
26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual.
The Talent50 33. Places of grace. 34. MBWA: The Rudy Rule. 35. Thank You! 36. Promote for people skills. (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm.
40. Create a System of Mentoring. The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique.
46. Bosses win people over. 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm! The Talent50 50.
Talent = Brand. Marcus Rules Marcus Buckingham: The one Thing You Need to Know
No matter what the situation, [the great managers] first response is always to think about the individual concerned and how things can be arranged to help that
individual experience success. The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the
pieces move differently. Discover what is unique about each person and capitalize on it. believes that most things are learnable and therefore that the essence of management is
to identify ach persons weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy
these innate qualities as effectively as possible and so Musings Carlsberg: Takeaways Encourage risk-taking: Hot language/WOW! Jaywalk, foot-wiggle: Energy & Enthusiasm (I know it when I see it)
Make your bones away from home: PepsiCo v Coke; Citi v Chase Should be SURPRISED at every meeting Be-Do (+ Leaps) I do people Absurdly smart people (Gates) Eval = Time (# X 25) You = Calendar Hire better than me
C.I. = Inadequate 17. Re-imagine Excellence II: Meet the New Boss Women Rule!
AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure Title, Special Report/BusinessWeek
On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twentyfirst-century economic community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World
Womens Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills,
individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure rationality; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, Americas Competitive Secret: Women Managers TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events?
Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Investors are looking more and more for a relationship with their financial They want
someone they can trust, someone who listens. In my advisers. experience, in general, women may be better at these relationship-building skills than are men. Hardwick Simmons, CEO, Prudential Securities
U.S. M.Mgt. 41% T.Mgt. 4% Peak Partic. Age 45 % Coll. Stud. 52%
G.B. E.U. Ja. 29% 18% 6% 3% 2% <1% 22 27 19 50% 48% 26%
Source: Judy Rosener, Americas Competitive Secret 8/50 0 U.S.A. Economic Story #1:
10.6M Q: No. 1 contributor to developing country economic improvement? A: More education for women. Source: Many* (*On a related note, eBay founder Pierre Omidyar and his wife just gave $100M to Tuftsits biggest gift everto support micro-lending; women typically are
the recipients of 90% of micro-loans because they use the $$$ more productively than men.) The Core Argument 1. We are in a War for Talent. 2. The war will intensify. 3. Women are under-represented in our leadership ranks. 4. Women and men are different.
5. Womens strengths match the New Economys leadership needsto a striking degree. 6. Women are also the principal purchasers of goods and servicesretail and commercial. 7. Ergo, women are a large part of the answer to the War for Talent issue/opportunity. To be a leader in consumer
products, its critical to have leaders who represent the population we serve. Women who
seek to be equal with men lack ambition. Timothy Leary
18. Re-imagine Excellence III: New Education for a New World. c from the Start
(to Every time I pass a jailhouse or a school, I feel sorry for
the people inside. Jimmy Breslin, on summer school in NYC [If they havent learned in the winter, what are they The main crisis in school
today is irrelevance. Daniel Pink, Free Agent Nation 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 childlet alone our childreceive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills.
grade in art at such a young age? Jordan Ayan, AHA! How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would
raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a closet artist. The point is: Every school I visited was participating in the suppression of creative genius.
Source: Gordon MacKenzie,Orbiting the Giant Hairball:A Corporate Fools Guide to Surviving with Grace system is a second-rate, factory-style organization, pumping out obsolete information in obsolete ways. [Schools] are
simply not connected to the future of the Ye gads: Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes 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
19. Re-imagine Excellence IV: New Business Education for a New World. c from the
Start (to 15 Leading Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0
Creativity/Elective: 4 Innovation/Core: 0 Innovation/Elective: 6 Source: DMI/Summer 2002 Research by Thomas Lockwood New Economy Biz Degree Programs MBA (Master of Business Administration)
MMM1 (Master of Metaphysical Management) MMM2 (Master of Metabolic Management) MGLF (Master of Great Leaps Forward) MTD (Master of Talent Development) W/MwGTDw/oC (Guy/Gal Who Gets Things Done without Certificate) DE (Doctor of Enthusiasm)
There is little evidence that mastery of the knowledge acquired in business schools enhances peoples careers, or that even attaining the MBA credential itself has much effect on
graduates salaries or Fact: Last 4 Deans Finance, Economics, Accounting, Finance. Query: WILL THERE EVER BE ONE FROM THE TOP LINE SIDE: INNOVATION (Ha, Ha), ENTREPRENEURSHIP, MARKETING, SALES (Ha Ha)? OR
THE PEOPLE SIDE: HR? Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat.
Approximately 640 Index entries: Customer/s (service, retention, loyalty), worker/s), 0. 4. People (employees, motivation, morale,
Innovation (product development, research & development, new products), 0. VII. Re-imagine Managing:
BRAND INSIDE. A PEERLESS BRAND INSIDE: THE NEW BASIS FOR THE IMPERATIVE VALUE-ADDED REVOLUTION
Participant: How long does it take to bring about significant change? TP: Whatever you say.
20. Re-imagine the Brand Promise: The Brand INSIDE Obsession.
probably wouldnt 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 [Yet] I came to see in my time at
IBM that culture isnt just one aspect of the gameit is hard. The New Enterprise Value-Added Equation/Mark2006 (1) 100% WOW PROJECTS (New Org DNA/The Work)
+ (2) Incredible TALENT Transformed into (3) Entrepreneurial BRAND YOUs and (4) Launched on Awesome QUESTS = (5) Internal Rockin PSFs (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise
Value Proposition from Superior Products & Services to ENCOMPASSING SOLUTIONS & GAME-CHANGING CLIENT SUCCESS Big Idea/Meta-Idea/Premier Engine of Value Added (1) The Talent: Best Roster of Entrepreneurialminded Brand Yous. (2) The (Virtual) Organization: Internal or External PSF/Professional Service Firm
working with Best Anywhere = Engine of Value Added through the Application of Creative Intellectual Capital (3) The Work Product: Game Changer WOW Projects Game-changing Solutions: Core Mechanism
PSF (Professional Service Firm model) + Wow Projects (Different vs Better)
+ Brand You This I Believe: The 60 TIBs Tom Peters/08.2005
60TIBs 1. Technicolor rules 2. Audacity matters! 3. Revolution now! 4. Question authority! (And hire disrespectful people 5. Disorganization wins! (Love the mess!) 6. Think 3M: Markets Matter Most. (Only extreme competition staves off staleness.) 7. Three hearty cheers for weirdos
8. Message 2003: Technology change (info-science, bio-science) is in its infancy. (Greatest understatement: We aint seen nothin yet!) 9. Everything is up for grabs! Volatility is thy name! (Forever. And ever.) Re-imagine ... or perish. 10. Big Stinks. (Mostly.) 60TIBs 11. Permanence is a snare and a delusion. (Forget built to
last. Its yesterdays idea, if that.) 12. Kaizen (Continuous Improvement) is ... Very Dangerous Stuff. 13. Destruction rules! 14. Forget it! (Message: Learning = Easy. Forgetting = Nigh-on-impossible.) 15. Innovation = Easy. (True.) (Message: Hang out with Freaks!) 16. Boring begets boring. (Cool begets cool.) 17. Think Portfolio. We are all VCs.* (*Venture Capitalists.)
18. Perception is all there is. (Insiders ... always ... overestimate the radicalism of what theyre up to.) 19. Action ... ALWAYS ... takes precedence. 20. He who makes the Quickest & Coolest Prototypes Reigns! (Think: Demos. Stories. Heroes.) 60TIBs 21. Haste makes waste. (So ... go waste!) 22. Screw-ups are ... The ... Mark of Excellence. (Corollary:
Do it right the first time is an ... Obscenity.) 23. Play hard! Right now! Cherish play! 24. Talent Time! (He/She who has the ... Best Roster ... rules.) 25. Re-do education. Totally. (Foster creativity ... not uniformity.) (The noisiest classroom wins the gold.) 26. Diversitys hour is now! 27. S-H-E is the best leader. 28. Marketing mantra: Pocket Trillion$$$. Embrace the Big Two: (1) She is the customer! (2) Boomers/Geezers have all
the loot! 29. Re-boot health care. 30. Q: What are we selling? A: Experiences and solutions, far more than top quality and satisfaction. (Message: the traditional value-added equation is being set on its ear.) 60TIBs 31. Design = New Seat of the Soul. 32. Branding is for ... EVERYONE. Whoever has ... THE BEST
STORY ... takes home the most marbles. 33. Dramatic Difference = Only Difference worthy of the name. 34. Words matter. (A lot!) 35. What matters is ... Stuff That Matters. 36. eALL. (IS/IT: Half-way = No-way.) 37. DREAM! Dream ... BIG! Dream ... ENORMOUS! Dream GARGANTUAN! (This is an XXXXL Time!) 38. Thanks Mike! 39. There is (Perhaps?!) only ... One Big Issue. Crappy
X-Functional Communications. 40. Stop doing dumb stuff. (Systematize the process of un-dumbing.) 60TIBs 41. Beautiful systems ... are ... b-e-a-u-t-i-f-u-l! 42. The ... WHITE-COLLAR REVOLUTION ... will ... Devour ... Everything ... in Its Path. 43. Take charge of your destiny. (No option.) It is a Brand New,
Brand You World. (Distinct or ... Extinct.) 44. Powerlessness is a State of Mind! (Think King. Think Gandhi. Think de Gaulle.) 45. Pursue ... Adventures ... in every task. 46. Excellence is a state of mind. (Excellence takes but a ... Minute. No baloney.) 47. Show up! (If you care, you are there.) 48. Your calendar knows all. (You = Your calendar.) 49. Life Is Sales. (The rest is details.)
50. Boss mantra No. 1: I Dont Know (I.D.K. = Ultimate Permission to Explore.) 60TIBs 51. Management Rule/Role No. 1: GET THE HELL OUT OF THE WAY. (Manager = Hurdle Removal Professional.) 52. Avoid the epitaph from hell! Namely: Joe J. Jones 1942-2005
He would have done Some really cool stuff But ... His boss wouldnt let him. 53. Change takes however long you think it takes. 54. Respect! 60TIBs 55. Thank you trumps all!
56. Integrity matters! (Integrity = Credibility.) 57. Soft is Hard. Hard is Soft. (Numbers are soft. People are hard.) 58. Try sunny! Dispense enthusiasm! 59. Fun ... is not a ... Four-Letter Word (so, too, Joy). 60. Grace. The Cup Challeng
e Tom Peters/0212.2006 For a forthcoming event, I was asked to provide some possible sayings on leadership, six words or less, designed go on coffee cups distributed as gifts. The
results, a hasty draft, follow. Passion! Energy! Enthusiasm! Passion! Energy! Enthusiasm! "Enthusiasm! Enthusiasm! Enthusiasm!" "Enthusiasm Moves Mountains!"
"Nothing Matches Enthusiasm as a 'Motivator'!" Technicolor Times Demand Technicolor Actions Technicolor Times Demand Technicolor People Wow. Now. Re-imagine! Re-imagine! Re-do! Re-vise! Re-vo-lu-tion! iasm,
the Ultimat e "Respect!" Leaders Do People. Period. Credibility. Asset No. 1. Tell the Truth.
Truth Wins. Challenge. Challenge. Challenge. Two Big Goals. Tops. Focus. Your Calendar Never Lies Good Story. Good Leader. Best Story Wins. Live the Story. Change the World. Accept Nothing Less. "Dream!"
Dream. The Only Worthwhile Reality. Beware Those Who Agree With You Seek Dissidents. Nurture Dissidents. Cherish Dissidents Do. Do. Do. Excellence!
Demand Excellence! Demand Excellence. The Greatest Gift. Excellence, Lifes Gold Standard Stop Talking! Start Doing! Execute. Execute. Execute. Good Execution Beats Good Strategy Agility Trumps Size "Women make the best bosses!"
Women Rule. Believe It. "You must care!" Listen. Ask. Why? Different beats Better. Distinct or Extinct. Innovate or Die
Me Too = Me Dead Talent Time! Best Talent Wins. Moderation Fails in Immoderate Times Less Than Excelle
The 3Es Tom Peters/02.15.2006 sm! Executio n! VIII. NEW
BUSINESS. NEW LEADERSHIP. 21. Re-imagine Leadership for Totally ScrewedUp Times: The Passion
Imperative. Leadership: Version #1 Lead It Loud! Ouc
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
Create a Cause! G.H.: Create a cause,
not a business. part of something larger than themselves. They want to be part of something theyre really proud of, that
theyll fight for, sacrifice for , the wildest chimera of a moonstruck mind The Federalist on TJs Louisiana
Purchase Think Legacy! Leadership is a function of questions. And the first question for a leader
Who do we intend to be? Not What are always is: Sr. gave a speech at the Worlds
Fair, World Peace through We stood for something, right? World Trade. CEO Assignment2002 (Bermuda):
Please leap forward to 2007, 2012, or 2022, and write a business history of What will have been said about your company during your tenure? Bermuda.
To win this race, Kerry needs to stop focusing on Election Day and start thinking about his would-be What does he want his legacy to be? presidencys last day. When sixth-graders in the year 2108 read about the
Kerry presidency, what does he want the one or two sentences that accompany his photo to say? Kenneth Baer/Washington Post/092604 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 youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
Find em! Jack didnt have a vision! The Secret:
From sweaters to people! Les Wexner (Jack+) : Respect em!
Amen! What creates trust, in the end, is the leaders manifest respect for the
followers. Jim OToole, Leading Change Dont belittle! OD Consultant It was much later that I
realized Dads 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 intelligence. What impressed me was that when he asked a question, he waited for an answer. He not only
listened, he made me feel like I was the only person in the We behaved as if we were guests in their house. We treated them not as a defeated people, but as allies.
Our success became their success. How One Soldier Brought Democracy to Iraq: The Mayor of Ar Rutbah (MAJ James Gavrilis/USA Special Forces Resilience Simplicity Authenticity
(O.O.D.A.) (K.I.S.S.) (No B.S.) Ed Sims/Air New Zealand (Airline to Middle Earth) Mentor
em What I Learned HWBjr: Excellence, Accountability, Initiative, K.I.S.S., Leader Love Dick: Empowerment, Entrepreneurship, Challenge, Execution (Project > Paper), Accountability, MBWA, K.I.S.S., Fanatic Customer-centrism (Customer>Command,
Marines>Regiment), Leader Love, Output, Do>Be Nameless: Tangible vs Palpable (Bureaucracy, Control, Tight Leashes, Command-centric, Demoralization, Paper > Project, Product = Paper, K.I.C.S.) What I Learned
Ben: Decency, Soft Power, Fanatic Customercentrism (Do>Be) Walter: Fanatic Mission-centrism, Soft Power, Relationship-management, Execution, Accountability, Early to Bed Bob: Pos>Neg/Recognition, K.I.S.S., The Way of the Demo (Execution), Hero-building, Missioncentrism, Do>Be Bill: De-centralization, Recognition, Supportstaff Centrism, Measurement (K.I.S.S.), Soft Power (Paint n Pride), Rapid Culture Change
Make It a Grand Adventure! Ninety percent of what we call management
consists of making it difficult for people to get things done. Peter Drucker If you have ten thousand regulations you
destroy all respect for law. WSC Quests ! I dont know.
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. free to do his or her absolute
best allow its members to discover their If your actions inspire others to dream more, learn more, do more
and become more, you are a leader." that a small group of committed people can change the world. Indeed it
is management doesnt change culture. Management invites the workforce itself to change
Alt: Grand Adventure The Nub of Leadership: Helping/Inviting Others to Discover Their Greatness Tom Peters & Friends/10.04.05
The Context Creative Age is a wideopen
A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term
success. Daniel Muzyka, Dean, If you dont like change, youre going to like irrelevance even
strongest of the species that survives, nor the most intelligent, but the one most responsive to change.
The Invitation "If your actions inspire others to dream more, learn more, do more and
I don't think we inspire people to become more, I think we help them discover who they really are. In a way, we help them become who they already are. Who they were created to be. We don't take them BEYOND their
being, we help remove unnatural obstacles that keep them from being. Dustin/Comment/tp.com/09.05 and Patricia Ward Biederman Groups become great only when everyone in them, leaders
is free to do his or her absolute best. and members alike, The best thing a leader can do
allow its members to discover their for a Great Group is to Leaderships Mount Everest allow
its members to discover their greatness. Item #1 from Tom Peters Leadership50:
1. Leadership Is a Mutual Discovery Process. Leaders-Teachers-Mentors Do Not Transform People! Instead leaders-mentors-teachers (1) provide a context which is
marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their leaders-teachers-mentors) had never dreamed existedand
then the leaders-teachers-mentors (6) applaud like hell, stage photo-ops, and ring the church bells 100 times to commemorate the bravery of their followers explorations! the end, management doesnt change culture.
Management invites the workforce itself to change the Are you Ready?
Human creativity is the ultimate economic resource. Richard Florida,
The Rise of the Creative Class Imagine dream more, learn more, do more , become more help them become who they already are, who they were created to be free to do his or her absolute best allow members to discover
their greatness allow people to fully express their innate curiosity; to go to-create places they had never dreamed existed invite the workforce itself to change Go to the people Live with them
Learn from them Love them Start with what they know Build with what they have But with the best leaders When the work is done The task accomplished The people will say We have done this
ourselves. Lao Tzu (700 BC) End Alt: Grand Adventure Trumpet an Exhilarating
Story! Leaders dont just make products and make decisions. Leaders make meaning.
A key perhaps the key to leadership is the effective communication of a story. Howard Gardner/Leading Minds: An Anatomy of Leadership
Language Power! the language we speak determines how we react to the world around us
Diane Ackerman/ An Alchemy of Mind Live Your Story! MBWA
The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it. John Keegan, The Mask of Command
To change minds effectively, leaders make particular use of two tools: the stories that they tell and the lives that they lead. Howard Gardner, Changing Minds
It is necessary for the President to be the nations No. 1 actor. You must
be the change you wish to see in the world. You = Your
calendar* *Calendars NEVER lie!! Try It! Sams Secret #1! Fail faster.
Succeed sooner. David Kelley/IDEO Success is the ability to go from one failure to another with
no loss of enthusiasm. Reward excellent failures. Punish mediocre
successes. Phil Daniels, Sydney exec Insist on Speed! Read It Closely: We dont sell insurance
We sell speed. anymore. If things seem under control, youre just not
going fast enough. Mario Andretti Strategy meetings held once or twice a year to Strategy meetings needed several times
a week Source: New York Times on Meg Whitman/eBay Demand Action! We have a
strategic plan. Its called doing The most successful people are
those who are good at plan B. James Yorke, mathematician, on chaos theory in The New Scientist 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!)
A man approached JP Morgan, held up an envelope, and said, Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000. Sir, JP Morgan replied, I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask. The man agreed to the terms, and handed over the envelope.
JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000. write a list of the
things that need to be done that day. 2. Do them. Strategy? In
retail, execution is the last ninetyfive percent. Former BigCo CEO/Retail Most anybody can sell. Damn few can close. Former BigCo
CEO/Retail If Microsoft is good at anything, its avoiding the trap of worrying about criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they
leverage the power theyve gained in other markets to enforce their standard. Seth Godin, Zooming Relentles s!* *Churchill, Grant, Patton, Welch, Bossidy, Nardelli (GE execs), UPS, This [adolescent] incident [of getting from point A to point B] is
notable not only because it underlines Grants fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character: Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the
factors that made him such a formidable general. Grant would always, always press onturning back was not an option for him. Michael Korda, Ulysses Grant 1 of 2,400 6:15A.M. Cut the
Crap! Realism is the heart of execution. Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done robust
dialogue Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done Eat Change! We eat change for
breakfast! Harry Quadracci, QuadGraphics Dispense Enthusia sm! BZ:
I am a Dispenser of Enthusiasm ! is so contagiou
s as enthusias Most important, upped the energy level at he
Motorola. Fortune on Ed Zander/08.05 A man without a smiling face must not open a
James Woolsey, former CIA director: If youre enthusiastic about the things youre working
on, people will come ask you to do interesting Before you can inspire with emotion, you must be swamped with it
yourself. Before you can move their tears, your own must flow. To convince them, you must yourself Excellence. Always.
Leader Job No.1 Paint Portraits of Excellence! In Search of Excellence
What is all about? What is In Search of Excellence all about: People. Emotion. Engagement.
Empowerment. Caring. Excellence = X1* Tell me, what is it you plan to do with your one
wild and precious life? Mary Oliver Radiate Passion! Never apologize for showing
feeling. When you so, you apologize for the truth. Disraeli Passion was what
drove these people, passion for their product or their cause. If you care enough, you will find out what you need to know. Or you will experiment and not Passion worry if the experiment goes wrong.
as the secret to learning is an odd secret to propose, but I believe that it works at all levels and at all ages. passion Sadly, is not a word often heard in the elephant organizations, nor in schools,
Stay Hungry. Stay Foolish. Steve Jobs Keep It Simple!
Sir Richards Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson
Avoid Moderati on! Kevin Roberts Credo 1. Ready. Fire! Aim. 2. If it aint 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 Free the Lunatic Within! The greatest danger for most of us is not that our aim is
too high and we miss it, but that it is too low and we reach it. Michelangelo You cant
behave in a calm, rational manner. Youve got to be out there on the dont know if its
possible. I do know its TP/Chile: I Leadership: Version #2
The Passion Imperative: Leadership The 50 I. The Basic
Premise. 1. Leadership Is a Mutual Discovery Process. Ninety
percent of what we call management consists of making it difficult for people to get things done. Peter Drucker
Quests ! I dont know. 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. free to do his or her absolute best allow its members to discover their
2. Leaders DECENTRALIZE! DECENTRAL-IZE! 2. Leaders DePuySpine/J&J*
70/3 50+ game-changers! *Still decentralized after all these years! HPs Big Duh! Decentralize ($90B) Undo Matrix
Accountability Source: HP Says Goodbye To Drama/ BW/09.05/re Mark Hurds first 5 months II. The Leadership Types. 3. Great Leaders Declaiming a Grand
Vision from the Mountaintop Are Great Talent Developers (Type I Leadership) are the Bedrock Important but of Organizations that Perform Over the Long Haul.
Leaders do people. P-e-r-i-o- 4. But Then Again, There Are Times When This
Visionary Stuff (Type II Leadership) Actually Works! A leader is a dealer in
5. Find & embrace the Businesspeople! (Type III Leadership) I.P.M. (Inspired Profit Mechanic)
6. All Organizations Need the Golden Leadership Triangle. The Golden Leadership Triangle: (1) Talent
Fanatic (2) Creator-Visionary (3) Inspired Profit Mechanic. 7. Leadership Mantra #1: IT ALL
DEPENDS! Reg = #1* Jack = #1** *National exemplar **National exemplar Renaissance Men are a snare,
a myth, a delusion! III. The Leadership Dance. 8. Leaders
SHOW UP! MBWA 9. Leaders LOVE the MESS! Im not
comfortable unless Im uncomfortable . Jay Chiat
10. Leaders DO! We have a strategic plan. Its called doing things.
11. Leaders Re -do. If Microsoft is good at anything, its avoiding the trap of worrying about
criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power theyve gained in other markets to enforce their standard. Seth Godin, Zooming
If it works, its obsolete. 12. BUT Leaders
Know When to Wait. Tex Schramm: The too hard box!
13. Leaders Are Optimists. Hackneyed but none the LEADERS SEE CUPS AS
HALF FULL. less true: [Ronald Reagan] radiated an almost transcendent happiness.
Half-full Cups: Lou Cannon 14. BUT Leaders Have to Deliver, So They Worry About Throwing the Baby Out with the Bathwater.
Damned If You Do, Damned If You Dont, 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)
15. Leaders FOCUS! To Dont List
The one thing you need to know about sustained individual success: Discover what you dont like doing and stop doing it.
Marcus Buckingham, The One Thing You Need to Know 16. Leaders Set CLEAR DESIGN SPECS. Really Important
Stuff: Rogers Rule of Three! IV. If Its Not Broken
Break It! 17. Leaders FORGET!/ Leaders DESTROY! 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 18. Leaders Do Not Mindlessly Bulk Up. from life within huge corporate structures, How do I build a
small firm for myself? The answer seems obvious: Buy a very large one and Not
a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companiesthose that failed to make a leap or, if they did, failed to
sustain itoften tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you 19. Leaders Make [Lotsa] Mistakes and MAKE NO BONES ABOUT IT!
Sams Secret #1! 20. Leaders Make/ Tolerate/ Encourage BIG
MISTAKES! Reward excellent failures. Punish mediocre successes.
V. Create. 21. Leaders Put INNOVATION First! A focus on cost-cutting and efficiency
has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.
Daniel Muzyka, Dean, Sauder 22. Leaders Love the Top Line! bottom line. They 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, Oh my gosh, you need revenues to
grow earnings over R C *Chief O*
Revenue Officer 23. Leaders Are Not COPYCATS.
To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.
W. Chan Kim & Rene Mauborgne, Think for Yourself Stop Copying a Rival, Financial Times/08.11.03 24. Leaders Relentlessly Pursue DRAMATIC
DIFFERENCE! $798 25. Leaders Bet the Farm on the New Technology!
Power Tools for Power Solutions/ Strategies! tyranny of making Small
Changes to Small Things. Rather, Big Changes to Big make The Golden Leadership Quadrangle: (1) Talent
Fanatic (2) CreatorVisionary (3) Inspired Profit Mechanic (4) Technology DreamerTrue Believer 26. Leaders Make Their Mark / Leaders Do Stuff That Matters
I never, ever thought of myself as a I was interested in creating things I would be proud of. businessman.
Richard Branson Leadership is a function of questions. And the first question for a leader Who do we
intend to be? Not What are always is: VI. Value Added 27. Leaders Push Their Organizations W-a-y Up
the Value-added/ Intellectual Capital Chain And the M Stands for ? Systems Integrator of choice.
Gerstners IBM: (BW) IBM Global Services: $55B
28. Leaders Turn Every Department into an Innovation leader/Valueadding PSF!* *Professional Service Firm Disintermediation is overrated. Those who fear disintermediation should in fact be afraid
disintermediation is just another way of saying that youve become irrelevant to your customers. of irrelevance
John Battelle/Point/Advertising Age/07.05 Answer: PSF! Department Head to Managing Partner, IS [HR, R&D, etc.] Inc.
29. Leaders Know that the Value-added Revolution rests Emphasizing Experiences! upon:
One companys answer: C XO* *Chief e Xperience Officer
We dont have a good language to talk about this kind of thing. In most peoples 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. 30. Leaders Pursue the Big Two NEW MARKET OPPORTUNITIES
Women! 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity No. 1. Good Thinking, Guys! Kodak Sharpens Digital
Focus On Its Best Customers: Women Page 1 Headline/WSJ/0705 BoomersGeezers 2000-2010 Stats
18-44: -1% 55+: +21% (55-64: +47%) 44-65: New Customer Majority * *45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder VII. Talent. 31. When It Comes TALENT to
Leaders Always Go Berserk! Brand = Talent. We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia- changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from Pacific
$25 million to $80 million in 2 years. Ed Michaels, War for Talent Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients;
to do so in partnership; to do so with profit. WPP HR doesnt tend to hire a lot of independent thinkers or people who stand up as
moral compasses. Garold Markle, Shell Offshore HR Exec (FC/08.05) DD$21 M 32. Leaders Know WOMEN
RULE.* *Duh. AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure
Title, Special Report, Business Week 8/50 0 33. Leaders Hire WEIRD Are there
enough weird people in the lab these 34. Leaders Strongly Urge All Employees Follow the BRAND
YOU ADVENTURE nothing very special about your work, no matter how hard you apply yourself you wont get
noticed, and that increasingly means you Distinct or Extinct VIII. Passion.
35. Leaders Sell PASSION! G.H.: Create a cause,
not a business. part of something larger than themselves. They want to be part of something theyre really proud of, that
theyll fight for, sacrifice for , In the end, management doesnt change culture. Management invites the
workforce itself to change Margaret Thatcher, John Major and Tony Blair: The [better leader] votes for Maggie were overwhelming. Why? Everyone said they knew who she
was, what she believed in, and what she was fighting for. Omar Kahn/Sensei Newsletter/0905 36. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! ENERGY BEGETS
ENERGY! Nothing is so contagious as enthusiasm. Most important,
he upped the energy level at Motorola. Fortune on Ed Zander/08.05 37. Leaders Focus on the SOFT STUFF!
Hard Is Soft. Soft Is Hard. In Search of Excellence 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. TPs final words: CYNICISM SUCKS EGGS.) IX. The
Job of Leading. 38. Leaders Know Its ALL SALES ALL THE TIME.
If you dont LOVE SALES find another life. TP: (Dont pretend youre a leader.) 39.
Leaders Groove on POLITICS. If you dont LOVE POLITICS find another life. TP:
(Dont pretend youre a leader.) 40. Leaders Give RESPECT! What creates trust, in the
end, is the leaders manifest respect for the followers. Jim OToole, Leading Change It was much later that I realized Dads 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 41. Leadership Is a Performance.
It is necessary for the President to be the nations No. 1 actor. 42. Leaders
GREAT STORY! Have a Leaders dont just make products and make Leaders
make meaning. decisions. John Seely Brown
A key perhaps the key to leadership is the effective communication of a story. Howard
Gardner, Leading Minds: An Anatomy of Leadership Leader Job #1 Paint Portraits of Excellence!
43. Leaders abide by the word Excellence! "If your actions inspire others
to dream more, learn more, do more and become more, 44. Leaders Are The Brand
You must be the change you wish to see
in the world. Gandhi You cant lead a cavalry
charge if you think you look funny on a X. Introspection. 45. Leaders
ENJOY LEADING. Warren, I know you want to be president. But do you want to
do 46. Leaders LAUGH! 47. Leaders
KNOW THEMSELVES. Step #1: Buy a Mirror! The First step in a
dramatic organizational change program is obviousdramatic personal change! RG
XI. The End Game. 48. Great Play Offense! Leaders
Nelsons secret: [Other] admirals more frightened of losing than 49. Great
Live on the Edge! Leaders Kevin Roberts Credo 1. Ready. Fire! Aim.
2. 3. 4. 5. 6. 7. 8. 9.
If it aint broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff.
10. Avoid moderation! 50. Leaders Free the Lunatic Within!
The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
You cant behave in a calm, rational manner. Youve got to be out there on the lunatic fringe.
Jack Welch 51. Leaders (and Management Gurus) WHEN TO LEAVE!
Know In classical times when Cicero had finished speaking, the people said, How well he spoke, but when Demosthenes had finished speaking, they
Let us march. said, Let us march !
TP/Chile: I dont know if its possible. I do know its necessary.