Tom Peters

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Tom PetersEXCELLENCE. ALWAYS.World High
Performance ForumArt Institute/17 November 2006
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Slides at tompeters.comalso see LONG
version
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3,000,000,0005/42500/900 Americas
god-given right
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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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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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors significantly underperformed
the market just 2 (2), GE Kodak,
outperformed the market from 1917 to
1987.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
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Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Message/Implication go for it!C.E.O. to
C.D.O.
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EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
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25
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20-minute rule Craig Johnson/30 yrs
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EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
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7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
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1/100 Best Companies to Work for/2005
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Jims Group
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EXCELLENCE. SIBERIA.
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Why in the world did you go to Siberia?
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Raging Success P-SQUARED. C. E-CUBED.
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People.Product.Clients.Execution.Enthusiasm.E
xcellence.
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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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The older I get the less boring the basics
become!
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EXCELLENCE. INNOVATE. OR. DIE.
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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. INNOVATE. ALL. WRONG.
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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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More Than 1 RD spending, last 25
years/USA?
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GM
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EXCELLENCE. INNOVATE. ALL. WRONG.
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The Mess Is the Message! Period!
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The Mess Is the Message! Period!An Economic
Interpretation of the Constitution of the United
States Charles Beard (1913)The Box How the
Shipping Container Made the World Smaller and the
World Economy Bigger Marc LevinsonTube The
Invention of Television David Marshall Fisher
Empires of Light Edison, Tesla, Westinghouse,
and the Race to Electrify the World Jill
JonnesThe Soul of a New Machine Tracy
KidderRosalind Franklin The Dark Lady of DNA
Brenda MaddoxThe Blitzkrieg Myth John
Mosier
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EXCELLENCE. INNOVATE. TACTICS.
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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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We have a strategic plan. Its called doing
things. Herb Kelleher
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This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
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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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We ground up more pig brains!
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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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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You miss 100 percent of the shots you never
take. Wayne Gretzky
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tolerate encourage? failure
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Think!vs.do!
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Never forget implementation , boys. In our work,
its what I call the last 98 percent of the
client puzzle. Al McDonald, former Managing
Director, McKinsey Co, to a project team that
included TP
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Linearist Plan it!Non-linearist Try it!
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Linearist think!Non-linearist do!
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Linearist hypothesize!Non-linearist
experiment!
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Linearist failure unnecessaryNon-linearist
failure life
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Linearist deliberate!Non-linearist
relentless! Do it right the first
time (Hero Phil Crosby) Never retreat (Hero
U.S. Grant)
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Linearist logical!Non-linearist
passionate!
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Linearist give me genius!Non-linearist
give me luck!
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Linearist spotless academic record!Non-linear
ist a.d.d.
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Linearist measured pace!Non-linearist
hypo-manic!
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Linearist think! Plan! (r.a.f.)Non-linearist
Try it! Screw it up! Fix it! Try it again!
(r.f.a.) Ready. Aim. Fire.ready. Fire.
Aim. (Or, circa 2006 fire. Fire. Fire.)
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Cheap ShotLinearist Optimizer/optimizer/mini
mize cost.Non-linearist maximizer/ drive
revenue.
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Linearist marketing rules.Non-linearist
sales rules.
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Linearist office walls.Non-linearist
office none.
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Linearist style meetings
PowerPoints.Non-linearistStyle MBWA
whiteboards Managing by wandering around
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Linearist reads michael porter. Peter
drucker.Non-linearist reads carl hiaasen.
Tom clancy.
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Linearist preferred football score
3-0.Non-linearist preferred football score
41-38.
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Linearist criminal record none.Non-lineari
st criminal record speeding.Reckless
driving.disorderly conduct.Public nuisance.
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Think!vs.do!
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Action is the foundational key of all success.
Picasso
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The secret of getting ahead is getting
started. Agatha Christie
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A year from now you may wish You had
started today. Karen Lamb
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The secret to having good ideas is to have a lot
of ideas, then throw the bad ones away. Linus
Pauling
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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
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1. Every morning, write a list of
the things that need to be done that
day. 2. Do them.
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Intelligent people can always come up with
intelligent reasons to do nothing. Scott Simon
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re-imagine the value added equation
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55B
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/2004
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Up, Up, Up, Up the Value-added Ladder.
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The Value-added LadderServices/TransactionsM
anufactured Goods/Things Extracted Raw
Materials/Stuff
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The NEW Value-added LadderGamechanging
Solutions/ Implemented Customer culture change
successServices/TransactionsManufactured
Goods/Things Extracted Raw Materials/Stuff
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PSF
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Disintermediation is overrated. Those who
fear disintermediation-outsourcing should in fact
be afraid of irrelevance outsourcing is just
another way of saying that youve become
irrelevant to your customers. John
Battelle/Point/Advertising Age/07.05
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Are you Rock Stars of the Age of Talent
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Department Head to Managing Partner, IS
HR, RD, etc. Inc.
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HCare CIO Technology Executive (workin in a
hospital) Or/to Full-scale, Accountable (life
or death) Member-Partner of XYZ Hospitals
Senior Healing-Services Team (who happens to be a
techie)
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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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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
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Up, Up, Up, Up the Value-added Ladder.
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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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Dream MerchantsIBMUPS
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The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
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Top 10 Tattoo BrandsHarley . 18.9Disney
.... 14.8Coke . 7.7Google .... 6.6Pepsi ....
6.1Rolex . 5.6Nike . 4.6Adidas .
3.1Absolut . 2.6Nintendo . 1.5BRANDsense
Build Powerful Brands through Touch, Taste,
Smell, Sight, and Sound, Martin Lindstrom
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Up, Up, Up, Up the Value-added Ladder.
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The Value-added Ladder/ ECSTASY Lovemark
Dreams Come True Spellbinding
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
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totally re-imagine the business around the
two staggering new opportunities
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women
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Economic Growth Is Driven by Women.
Headline, Economist, April 15, 2006, Leader,
page 14
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Womens TrifectaBuy/all Wealth/all Lead/
better Eclipse of males/whoops
(Retire-old/Poorly educated-young)
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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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She knows more about the Volvo than the
salesman who greets her at the door. But how is
she treated? As if she has a low IQ , is
slightly hard of hearing , and really has no
right to be buying a luxury car and if she
brought a male friend with her, odds are 101
that the clueless salesperson spent most of his
time speaking to him . Selling to Men,
Selling to Women, Jeffery Tobias Halter
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Women dont buy brands. They join
them.EVEolution
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Selling to men The TRANSACTION ModelSelling to
Women The RELATIONAL ModelSource Selling
to Men, Selling to Women, Jeffery Tobias Halter
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Goldman Sachs in Tokyo has developed an index of
115 companies poised to benefit from womens
increased purchasing power over the past decade
the value of shares in Goldmans basket has risen
by 96, against the Tokyo stockmarkets rise of
13. Economist, 15 April 2006
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P-l-e-a-s-e Read Fara Warner The Power of the
Purse
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Cases! Cases! Cases!McDonalds
(mom-centered to majority consumer not via
kids)Home Depot (Do it everything!
Herself)PG (more than house cleaner)
DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of the
Purse
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New! New! New! New! New! Womens magazines a
medium that McDonalds had rarely
used Source Fara Warner, The Power of the
Purse, From Minority to Majority McDonalds
Discovers the Woman Inside the Mom
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10.6
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The growth and success of women-owned businesses
is one of the most profound changes taking place
in the business world today. Margaret
Heffernan, How She Does It
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94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
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Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline,
Economist, April 15, 2006, Leader, page 14
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Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
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10 UNASSAILABLE REASONS WOMEN
RULE Women make all the financial
decisions.Women control all the wealth. Women
substantially outlive men. Women start most of
the new businesses. Womens work force
participation rates have soared
worldwide. Women are closing in on same pay for
same job. Women are penetrating senior
ranks rapidly even if the pace is slow for
the corner office per se. Womens
leadership strengths are exceptionally well
aligned with new organizational effectiveness
value-added imperatives. Women are better
salespersons than men. Women buy almost
everythingcommercial as well as consumer
goods. So what exactly is the point of men?
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One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de
Thuin, Financial Times, 10.03.2006
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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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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. Judy B. Rosener, Americas
Competitive Secret Women Managers
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New Steps (4 of 7) on the Value-added Ladder
Play to Womens Inherent Strengths! Lovemark/F
Dreams Come True/F Spellbinding
Experiences/FGamechanging Solutions/FServices/F
Goods/MRaw Materials/M
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boomers-geezers
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Subject Marketers StupidityIts 18-44,
stupid!
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Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
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One particularly puzzling category of
youth-obsession is the highly coveted target of
men 18-34, and its always referred to as highly
coveted category. Marketers have been distracted
by men age 18-34 because they are getting harder
to reach. So what? Who wants to reach them?
Beyond fast food and beer, they dont buy much of
anything. The theory is that if you get them
while theyre young, theyre yours for life.
What nonsense! Marti Barletta, PrimeTime Women
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2000-2010 Stats18-44 -155 21(55-64
47)
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!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
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BoomerBucks!Boomer turns 50 every 7 seconds.
2009 MAJORITY OF U.S. HOUSEHOLDS HEADED BY
SOMEONE OVER 50. 2006-2016 U.S. population up
22.9 million 22.1 million in over-50 group.
2006 1 in 5 adults is F, over 50. Women
between 50-70 who are single 35. Age 45-54
highest average income, 59, 021 (national
average is 42,209). FASTEST GROWING INCOME
CATEGORY WOMEN, 55-64 (4X men in same category).
Women, age 60-64 50 still in workforce.
Highest net worth families, 55-64 (182,000).
People over 50 70 to 79 of all financial
assets 80 of all savings accounts 62 of all
large Wall Street asset accounts 66 of
invested in the stock market. Age 50 29 of
population, 40 of total consumer spending, 50
of discretionary spending. Next 2 decades
BOOMERS WILL INHERIT 14 TRILLION-25 TRILLION
(largest intergenerational transfer of wealth in
history). Marti Barletta, PrimeTime Women
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Average of cars purchased per household,
lifetime 13Average of cars bought per
household after the head of household reaches
age 50 7Source Marti Barletta, PrimeTime
Women
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Fifty-four years of age has been the highest
cutoff point for any marketing initiative Ive
ever been involved in. Which is pretty weird when
you consider age 50 is right about when people
who have worked all their lives start to have
some money to spend. Marti Barletta, PrimeTime
Women
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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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Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
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Boomers-Geezers-Womens TrifectaBuy/all
Wealth/all time left/ lots
Eclipse of males/retire-die
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EXCELLENCE.1966. 2006.
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4/40
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De-centralizationexecutionaccountability615a.m
.
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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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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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Never forget implementation boys. In our work
its what I call the missing 98 percent of the
client puzzle. Al McDonald
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The first 90 of a project takes 90 of the
time. The last 10 takes the other 90 of the
time. Richard Templar, The Rules of Management
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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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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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INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!
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In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
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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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EMPHASIZE THE SOFT SKILLS.
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?
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PUT HR AT THE HEAD OF THE HEAD TABLE.
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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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Brand Talent.
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EXCELLENCE. BEDROCK.LEADERSHIP.
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Thank You!
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FLOWERPOWER
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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The Jim Jeffords oversight!
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You can make more friends in two months by
becoming interested in other people than you can
in two years by trying to get other people
interested in you. Dale Carnegie
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EXCELLENCE. BEDROCK.LEADERSHIP.
166
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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I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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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 Wash Your Hands
.Mark Pettus, M.D., The Savvy PatientThe
most important thing you can do to keep from
getting sick is to wash your hands.
CDC/National Center for Infectious Diseases
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You must be the change you wish to see in the
world.Gandhi
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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Relentless One of my superstitions had always
been when I started to go anywhere or to do
anything, not to turn back , or stop, until the
thing intended was accomplished. Grant
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Leaders do people. Period. Anon.
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PURPOSE.PASSION.Presence.Personal.PERSISTENCE.
PEOPLE.
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Its always showtime. David DAlessandro,
Career Warfare
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EXCELLE ALWAYS.