Tom Peters

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Tom Peters X25EXCELLENCE. ALWAYS.13th
Annual World Islamic Banking ConferenceKingdom
of Bahrain.11 December 2006In Search of
Excellence 1982-2007
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Slides at tompeters.comalso long
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EXCELLENCE. THE MANDATE FOR CHANGE.
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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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SP Stability Ratings
1985 2006Low Risk
41 13 Average Risk 24
14High Risk 35 73Likelihood
of stable long-term earnings growthSource
Fortune (2 October 2006)
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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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EXCELLENCE. STARTERS.BASICS.
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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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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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EXCELLENCE. DEFINED. X06
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X.06.23 Whole Foods Markets Starbucks
Wegmans Commerce Bank John Laing Homes
Apple London Drugs Griffin Hospital/
Planetree Alliance The Met School/Big Picture
Carl Sewell Progressive Insurance Stanford
womens sports Stanford D-School HSM
Washington Speakers Bureau Build-A-Bear
RE/MAX Donnellys Weather Strip Service
Jims Group Cirque du Soleil (U.S. Grant)
(Horatio Nelson)
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Commerce Bank
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Our whole story is growing revenue. Vernon
Hills (Top-line driven standard is bottom-line
driven by cost cutting)
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Commerce Bank From Service to Experience7X.
730A-800P. F12A.93-03/10 yr annual return
CB 29 WM 17 HD 16. Mkt Cap 48 p.a.
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8,000 Radio City Music Hall J.D.
Power/Customer service/Bank/NYC/1st in 5 of 6
2nd in 6 Inspired by Ray Kroc 36B (100B
in 6 years) 750M per month/373 branches in 7
states/900 in 6 years player piano Penny
Arcade/25K per machine 9M lollipops, 2M dog
biscuits stupid rule (red) button call center
not cost center, but opportunity/human by
second operation over-invest in real estate
design-experience fanaticism Red!/Red
Friday/Hot music deposits available next day
(vs ½ on 3rd ½ on 5th focus on 99, not 1)
LONG HOURS!!!! (7/week/12 hours/Fridays/15
minutes before) Do whacky things for
customers (VH) create magical moments of
surprise and delight for employees (VH) Hire
for attitude. Train for skills. (VH)
Chinatown/10K first day 28K first week
Commerce U in 93 (underlying theme is funVH)
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cut costs at most banks. We have to push
them out of the branches. We have to push them
to machines. We have to push them to the
Internet.Source Vernon Hill
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TP Experience-Design Top-line fanaticism (vs
Cost-fanaticism) Deposits Drive em to the
branch Experience/Wow! little touches no
stupid rules Talent/Attitude/Recognition
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The Power of WOW!How Commerce Bank Created a
Super-Growth Business in a No-Growth
IndustryVernon W. Hill, II
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John Laing Homes
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Soft Skills, Hard DollarsSource Headline,
BigBuilder, September 2006
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Builder of the Year/Professional Builder
Experience Communities/ Family values/
Relationships/After-sale talk to our customers
J.D. Power awards Warranties Price
premiums Design!!!! (all Divisions winners)
(Top names) Data/market research Top
company to work for Team development I just
love being a home builder. (LW) Brand Emaar
Properties (Robert Booth/Intl They have a
tremendous focus on the customer, and that is
hugely important to us.) Pay premium for
Excellence. Invest for the longterm.
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sewell
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Customers for Life
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FLOWERPOWER
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jims group
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Jims Group Jim Penman. 1984 Jims Mowing.
2006 Jims Group. 2,600 franchisees (Australia,
NZ, UK). Cleaning. Dog washing. Handyman.
Fencing. Paving. Pool care. Etc.People
first. Private. Small staff. Franchisees can
leave at will. 0-1 complaint per year is norm
cut bad ones quickly.Ph.D. cross-cultural
anthropology mowing on the sideSource
MT/Management Today (Australia), Jan-Feb 2006
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Focused on growth and revenue and offense,
not defense and cost containment. People-talent
obsession. Provide mind-bending experiences.
(Driven by design primacy.) Love affair with
customers. Happy to use words like
Wow. Pretty close to the high end of the
market. Ability to make silk purses filled
with gold out of sows ears Wegmans-Whole
Foods-Stew Leonards and groceries Jims
Group and dog-walking Donnelly and weather
strip installation DeMar and
plumbing. Execution!
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Cirque du Soleil
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Every time we come to a comfort zone, we will
find a way out. No Cloning. Reinvent the
brand with each new show. A typical day at the
office for me begins by asking, What is
impossible that I am going to do today?
Daniel Lamarre, president, Cirque du Soleil
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Apple
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Insanely Great
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EXCELLENCE. INNOVATE. OR. DIE.
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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
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When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
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Spinoffs systematically perform better than IPOs
track record, profits freed from the
confines of the parent more entrepreneurial,
more nimble Jerry Knight/ Washington Post/
08.05
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InnoTacs
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We become who we spend time with!
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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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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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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. try it. Try it.
Try it. try it. Try it. Try it. Try it. Try it.
Try it.
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were already on prototype version 5. By the
time our rivals are ready with wires and screws,
we are on version 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by Bloomberg
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tolerate encourage? failure
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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focus
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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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Private Equity-financed Firm, Best
CaseFocus! Focus! Focus!In a Big
hurryCEO/Top team, skin in the gameCEO,
100 of time on the bizMerit!
Merit!Motivated oversightWorst case Rape
Pillage
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EXCELLENCE.1966. 2006.
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4/40
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De-centralizationexecutionaccountability615a.m
.
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If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
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De-centralizationexecutionaccountability615a.m
.
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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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De-centralizationexecutionaccountability615a.m
.
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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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De-centralizationexecutionaccountability615a.m
.
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EXCELLENCE. BEDROCK.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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EMPHASIZE THE SOFT SKILLS.
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?
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PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
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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 i.e., 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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LIVE FOR TALENT!
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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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lt CAPEXgt People!
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Brand Talent.
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EXCELLENCE. BEDROCK.LEADERSHIP.9Ps.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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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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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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The role of the Director is to create a space
where the actors and actresses can become more
than theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance speech
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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You must be the change you wish to see in the
world.Gandhi
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Leaders do people. Period. Anon.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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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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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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On NELSON other admirals more frightened of
losing than anxious to win
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Excellence can be obtained if you ... care
more than others think is wise ... risk more
than others think is safe ... dream more than
others think is practical ... expect
more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
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EXCELLE ALWAYS.