Tom%20Peters

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Tom Peters Re-Imagine!Leading Change,
Developing Talent, Driving Innovation,Adding
Value,Achieving ExcellenceAssocisation of
Chief Executive OfficersAthens/09May2006
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Slides at tompeters.comAlso, Long
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Part 1 IntroductionEXCELLENCE.ALWAYS.
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EXCELLENCE. BASICS.
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Hardball Are You Playing to Play or Playing to
Win? by George Stalk Rob Lachenauer/HBS
PressThe winners in business have always
played hardball. Unleash massive and
overwhelming force. Exploit anomalies.
Threaten your competitors profit sanctuaries.
Entice your competitor into retreat.Approximat
ely 640 Index entries Customer/s (service,
retention, loyalty), 4. People (employees,
motivation, morale, worker/s), 0. Innovation
(product development, research development, new
products), 0.
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My (Less) Dinner with HenriJUST WHAT IS IT
YOU MAKE?
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P.P.E.E.R.R.E.
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People.Product.Execution.Enthusiasm.Relentless
.Re-invent.Excellence.
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CROChief Revenue Officer
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EXCELLENCE. THE WORD.
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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EXCELLENCE. GAMECHANGER.
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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
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What is In Search of Excellence all
aboutPeople. Emotion. Engagement.
Exuberance. Action-Execution. Empowerment.
Independence. Initiative. Imagination. Great
Stories. Incredible Adventures. Trust. Caring.
Fun. Joy. Customer-centrism. Profit. Growth.
Brand You. Dramatic Differences.
Experiences that Make You Gasp. Excellence.
Always.
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ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Excellence Index /Basket of 32 publicly
traded stocks
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EXCELLENCE. ALWAYS.
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Why in the world did you go to Siberia?
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The Peters Principles Enthusiasm. Emotion.
Excellence. Energy. Excitement. Service. Growth.
Creativity. Imagination. Vitality. Joy.
Surprise. Independence. Spirit. Community.
Limitless human potential. Diversity. Profit.
Innovation. Design. Quality. Entrepreneurialism.
Wow.
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Business (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum concerted human
potential in the wholehearted service of
others.Excellence. Always.Employees,
Customers, Suppliers, Communities, Owners,
Temporary partners
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Business The Ultimate Creative Endeavor.
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Business The Ultimate Personal
Development-Growth Experience.
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Business The Ultimate Transcendent Service
Opportunity.
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Part 2 Principal Argument
Re-Imagine!Leading Change, Developing Talent,
Driving Innovation,Adding Value,Achieving
Excellence
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Re-imagine! Not Your Fathers World I.
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THREE BILLION NEW CAPITALISTS Clyde Prestowitz
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Re-imagine! Not Your Fathers World II.
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Income Confers No Immunity as Jobs Migrate
Headline/USA Today/02.2004
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Deutsche Bank Moves Half of Its Back-office Jobs
to India/ headline/FT/0327/500 of 900
Research/JPMorgan Chase/30 back-office by
12.31.07
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Re-imagine! Not Your Fathers World III.
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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
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Get better versus Get different
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CROChief Revenue Officer
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The Generals Story. (And Darwins)
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If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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Everybodys Story.
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/2003
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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
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New ZealandThailandSpainPortugalIrelandSingap
ore Taiwan PhilippinesUAEChile
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Better By Design A National StrategyNZ
Design Excellence
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1. Re-imagine Permanence The Emperor Has No
Clothes!
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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4/40
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De-cent-ral-iz-a-tion!
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Ex-e-cu-tion!
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Ac-count-a-bil-ity!
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GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
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615A.M.
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2. Re-imagine Innovateor Die!!
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Resist!
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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.
Jim Collins/Time/2004
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Scale?
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
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Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
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To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/2003
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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 Renée Mauborgne (INSEAD),
from Blue Ocean Strategy (The Times/London)
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Focus!
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Focus All Strategy Is Local True 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
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We will not, I repeat not, pretend to be all
things to all people. CEO, Investec (03.06)
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Easy!
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Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
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We become who we spend timewith!
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Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
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Hard!
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The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma At the top!
Gary Hamel/Harvard Business Review
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BOLD!
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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Five MYTHS About Changing BehaviorCrisis
is a powerful impetus for changeChange is
motivated by fearThe facts will set us
freeSmall, gradual changes are always easier
to make and sustainWe cant change because our
brains become hardwired early in lifeSource
Fast Company/05.2005
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Speed/ Tempo!
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We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
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Action !
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Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
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Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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Measurable!
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weird/ Profound/
Wow/Game- changer Scale?
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Personal!
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Step 1 Buy a Mirror!
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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3. Re-imagine Organizing I IS/IT as Disruptive
Tool!
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We all live in Dell-WalMart-eBay-Google World!
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the FedEx Economy headline/New York
Times/10.08.05
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Any3 Anything/ Anywhere/ Anytime
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Power Tools for Power Solutions/ Strategies!
TP
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness. Ray Lane,
Kleiner Perkins
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5 F500 have CIO on Board While some of the
worlds most admired companiesTesco, WalMart
are transforming the business landscape by
including technology experts on their boards, the
vast majority are missing out on ways to boost
productivity, competitiveness and shareholder
value.Source Burson-Marsteller
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4. Re-imagine Organizing II The Age of
Best-sourcing.
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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Not out sourcingNot off shoringNot near
shoringNot in sourcingbut Best Sourcing
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global innovation networks vs research in
large monolithic companies Source George
Colony/Forrester Research
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5. Re-imagine Businesss Fundamental Value
Proposition Fighting Inevitable
Commoditization via The Gamechanging
Solutions Imperative.
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Up, Up, Up, Up the Value-added Ladder.
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55B
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And the M Stands for ?Gerstners IBM
Systems Integrator of choice./BW (Lou, help
us turn all this into that long-promised
revolution. ) IBM Global Services
(Integrated Systems Services Corp.) 55B
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And MasterCard Advisors
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Huge Customer Satisfaction versus Customer
Success
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The Value-added Ladder/Stuff n ThingsGoods
Raw Materials
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The Value-added Ladder/Stuff TransactionsServ
icesGoods Raw Materials
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The Value-added Ladder/Opportunity-seeking
Gamechanging SolutionsServicesGoods Raw
Materials
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6. Re-imagine Organizing IV The White-Collar
Tsunami and the Professional Service Firm (PSF)
Imperative.
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Disintermediation is overrated. Those who
fear disintermediation should in fact be afraid
of irrelevancedisintermediation is just another
way of saying that youve become irrelevant to
your customers. John Battelle/Point/Advertisin
g Age/07.05
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Answer Professional Service Firm/PSF!Departmen
t Head to Managing Partner, IS HR, RD,
etc. Inc.
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AnswerPSF
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The PSF35 Thirty-Five Professional Service
Firm Marks of Excellence
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The PSF35 The Work The Legacy1.
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
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Point of View!Point of Dramatic Difference!
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Purchasing Officer Thrust 1 Cost (at All
Costs) Minimization Professional? Or/to Full
Partner-Leader in Lifetime Value-added
Maximization?(Lopez Arguably Villain 1 in
GM tragedy/AnonVSE-Spain)
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7. Re-imagine Enterprise as Theater I A World
of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
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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
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The Value-added Ladder/Memorable
ConnectionSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
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Beyond the Transaction/ Satisfaction
MentalityGood hotel/ Happy guest/ Exceeded
Expectationsvs. Great Vacation/ Great
Conference/ Operation Personal Renewal
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CXOChief eXperience Officer
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8. Re-imagine Enterprise as Theater II
Embracing the Dream Business.
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DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
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The Value-added Ladder/EmotionDreams Come
TrueSpellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
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Furniture vs. DreamsWe do not sell furniture
at Domain. We sell dreams. This is accomplished
by addressing the half-formed needs in our
customers heads. By uncovering these needs, we,
in essence, fill in the blanks. We convert
needs into dreams. Sales are the inevitable
result. Judy George, Domain Home Fashions
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IBM, MasterCard Dream Merchants!
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CDMChief Dream Merchant
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9. Re-imagine the Soul of New Value Design
Reigns!
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Radio City Music HallSeptember 2005
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Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
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All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace. Norio
Ohga
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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. Steve Jobs
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Hypothesis Design is the principle metaphor
for the encompassing Value-added Imperative!
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CWOChief WOW Officer
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Up, Up, Up, Up the Value-added Ladder.
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CROChief Revenue Officer
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10. Re-imagine the Customer I Trends Worth
Trillion Women Roar.
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Women are the majority market Fara
Warner/The Power of the Purse
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The Perfect Answer
Jill and Jack buy slacks in black
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(No Transcript)
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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Women dont buy brands. They join
them.EVEolution
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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.
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10. Womens Market Opportunity No. 1.
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Why?
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2005
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Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
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11. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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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
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12. Re-imagine Excellence I The Talent Obsession.
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Brand Talent.
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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
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PARCs Bob Taylor Connoisseur of Talent
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Hire very good people!
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years. Ed
Michaels, War for Talent
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DD21M
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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.
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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13. Re-imagine Leadership for Totally Screwed-Up
Times The Passion Imperative.
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Create a Cause!
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People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
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Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max De Pree,
Herman Miller
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Find em!
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The Secret Jack didnt have a vision!
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Respect em!
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Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
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Make It a Grand Adventure!
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Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
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Yes!!!!!!!!!!!!!!!!!free to do his or her
absolute best allow its members to discover
their greatness.
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
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We are a life success companyDave Liniger,
RE/MAX
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Trumpet an Exhilarating Story!
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Best Story Wins!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner/Leading Minds An
Anatomy of Leadership
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Live Your Story!
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You must be the change you wish to see in the
world.Gandhi
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MBWAHS/25
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You Your calendarCalendars NEVER lie!!
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Try It!
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Sams Secret 1!
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Insist on Speed!
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We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
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Demand Action!
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We have a strategic plan. Its called doing
things. Herb Kelleher
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Put Women in Charge!
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
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????????6/44
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To be a leader in consumer products, its
critical to have leaders who represent the
population we serve. Steve Reinemund/PepsiCo
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Dispense Enthusiasm!
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
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Avoid Moderation!
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Kevin Roberts Credo1.
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 moderation!
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Avoid Moderation!
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Insanely Great Language! Insanely
Great. Steve Jobs
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Radically Thrilling Language! Radically
Thrilling. BMW Z4 (ad)
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CTOChief Thrills Officer
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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Free the Lunatic Within!
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
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EXCELLENCE. ALWAYS.