LONG Tom Peters

1
LONG Tom PetersEXCELLENCE.
ALWAYS.Cims./Affinion/DAngleterre/Copenhagen/0
5.10.2006
2
Slides at tompeters.com
3
In classical times when Cicero had finished
speaking, the people said, How well he spoke,
but when Demosthenes had finished speaking, they
said Let us march. Adlai Stevenson
4
YOU DONT GET BETTER BY BEING BIGGER. YOU GET
WORSE.
5
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
6
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.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
7
Welcome to the Club of Shattered Dreams Of
Koreas Top 100 companies in 1955, only 7 were
still on the list in 2004. The 1997 crisis
destroyed half of Koreas 30 largest
conglomerates.Source KET Issue Report, Kim
Jong Nyun (14.05.2005)
8
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)
9
No Last word models. Period.
10
U.S. SteelFord GMIBMMacysSearsMicrosoft?D
ell?WalMart?
11
YOU DONT GET BETTER BY BEING BIGGER. YOU GET
WORSE.
12
I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
13
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
14
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
15
Sluggish Obese Unimaginative More Sluggish
More Obese More Unimaginative Even More
Sluggish Even More Obese Even More
Unimaginative NISSAN RENAULT GM
Innovative Challenger for Toyota????
16
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

17
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
18
C.E.O. to C.D.O.
19
BASICSK.I.S.S.
20
Franchise Lost! TP How many of you 600
really crave a new Chevy?
21
Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
22
New Economy?!Genentech09, Amgen09 gt Merck09
(70K-3/394B-5)
23
People.Product.Clients.Execution.Enthusiasm.E
xcellence.
24
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
25
BASICSK.I.S.S.
26
25
27
BASICSK.I.S.S.
28
People.Product.Clients.Execution.Enthusiasm.E
xcellence.Resilience.
29
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
30
BASICSK.I.S.S.
31
People.Product.Clients.Execution.Enthusiasm.E
xcellence.Resilience.Relentlessness.
32
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
33
BASICSK.I.S.S.
34
People.Product.Clients.Execution.Enthusiasm.E
xcellence.Resilience.Relentlessness. Senility.

35
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out. Dee Hock
36
EXCELLENCE. THE WORD.
37
SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
38
EXCELLENCE. GAMECHANGER.
39
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
40
ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Forbes/Excellence Index /Basket of 32
publicly traded stocks
41
EXCELLENCE. ASPIRATION.
42
Why in the world did you go to Siberia?
43
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
44
To me business isnt about wearing suits or
pleasing stockholders. Its about being true to
yourself, your ideas and focusing on the
essentials. Richard Branson
45
EXCELLENCE. REVENUE.MATTERS.MOST.
46
Analysts 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 time. Well, Duh! Dick Kovacevich, Wells
Fargo
47
P R C
48
CROChief Revenue Officer
49
EXCELLENCE. VALUE ADDED.UP THE LADDER.
50
EXCELLENCE.VALUE-ADDED LADDER I. SOLVE IT.
51
55B
52
Up, Up, Up, Up the Value-added Ladder.
53
The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging SolutionsServicesGoods Raw
Materials
54
EXCELLENCE.NECESSITY.OPPORTUNITY.
55
Disintermediation and outsourcing are
overrated. Those who fear disintermediation or
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
56
ChicagoHRMAC
57
support function / cost center/ overhead
or
58
Are you Rock Stars of the Age of Talent
59
Department Head to Managing Partner, IS
HR, RD, etc. Inc.
60
Solutions World The Mega-PSF
61
Big Idea Corporation as Mega-PSF
(Professional Service Firm) Virtual
Collection of Entrepreneurially-minded
Professionals (Talent/Roster)
Creating/Applying Intellectual Capital (Work
Product)
62
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/Anon VSE-Spain)
63
EXCELLENCE.VALUE-ADDED LADDER II. EXPERIENCE
IT.
64
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
65
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
66
Up, Up, Up, Up the Value-added Ladder.
67
The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
68
EXCELLENCE.VALUE-ADDED LADDER III. DREAM
IT.
69
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
70
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
71
Up, Up, Up, Up the Value-added Ladder.
72
The Value-added Ladder/ EMOTIONDreams Come
TrueSpellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
73
EXCELLENCE.NEW MARKETS.ENORMOUS.
OPPORTUNITIES.
74
Idiot is too kind a word.
75
Thats a very diverse team. Patrick Cescau,
CEO, Unilever 1 of 14 Board of Directors
members is a woman (not an exec) 2 of 7 Exec
Team members are Indians. (Source FT/24-25
June.) Approximately 85 of Unilevers products
are purchased by women.
76
Thats a VERY diverse team. Patrick
Cescau, CEO, Unilever
77
Thats a VERY sick man. Tom Peters
78
EXCELLENCE. FOUND.
79
To be a leader in consumer products, its
critical to have leaders who represent the
population we serve. Steve Reinemund/PepsiCo
80
EXCELLENCE. OPPORTUNITY.WOMEN.
81
Women are the majority market Fara
Warner/The Power of the Purse
82
USA/F.Stats Short n (Very) Sweetgt50 of stock
ownership, 13T total wealth (2X in 15
years)gt7T consumer biz spending (gt50 GDP gt
Japan GDP) gt80 consumer spdg (Consumer 70
all spdg) 57 BA degrees (2002) ed social
strata, no wage gap60 Internet users gt50
primary users of electronic equipmentgt50 biz
tripsWimBiz Employees gt F500 10M 33 all US
BizPay from 62 in 1980 to 80 today equal if
education, social status, etc are equal60
work 46M (divorced, widowed, never
married)Source Fara Warner, The Power of the
Purse
83
WomenHousehold
spending 80Investment decisions 53Home
improvement purchase decisions 80New cars
60Computers 60Managers and professionals,
overall 51New businesses started 70
(Women-owned businesses as a share of all
new businesses Employee growth, 3X Sales
growth, 4X.)Source Marti Barletta, PrimeTime
Women (2007)
84
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
85
The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
86
The Perfect Answer
Jill and Jack buy slacks in black
87
(No Transcript)
88
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
89
EVEolution The Eight Truths of Marketing to
WomenFaith Popcorn Lys Marigold
90
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
91
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.
EVEolution
92
Women dont buy brands. They join
them.EVEolution
93
2.6 vs. 21
94
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.
95
10. Womens Market Opportunity No. 1.
96
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
97
Faith, Lys, Marti, Fara Targeting the New
Professional Woman How to Market and Sell to
Todays 57 Million Working Women Gerry Myers
98
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, April 15
99
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. Source The Merrill
report When It Comes to Investing, Gender A
Strong Influence on Behavior./Atlantic
100
WOMEN. DOMINATE. ECONOMIC. GROWTH.
101
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
102
Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
103
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 arethe
recipients of 90 of micro-loans because they
usethe more productively than men.)
104
Impact! Add It Up!Primary
markets/Everything (Men buy things that other
men will buy for women. I buy things that women
want.successful jeweler/F. Women are the
majority market Fara Warner/The Power of the
Purse. Women as Purchasing Officers, CIOs,
etc.)Greater global workforce participation rate
(bigger contributor to GDP growth than
technology, China, IndiaEconomist)Higher wages
(more seniority, promotionseven if not to CEO
greater pay equityeven if not equal)Business
decision makers (more seniority,
promotionseven if not to CEO)Women-owned
businesses (answer to the Glass Ceiling10.6M in
USA recipients of micro-lendingdeveloping
world)
105
U.S. firms owned or controlled by Women 10.6
million (48 of all firms) Growth rate of
Women-owned firms vs all firms 3X Rate of jobs
created by Women-owned firms vs all firms
2X Ratio of total payroll of Women-owned firms
vs total for Fortune500 firms gt1.0 Ratio of
likelihood of Women-owned firms staying in
business vs all firms gt1.0 Growth rate of
Women-owned companies with revenues of
gt1,000,000 and gt100 employees vs all firms 2X
Source Margaret Heffernan, How She Does It
106
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
imperatives. Women are better salespersons than
men. Women buy almost everythingcommercial
as well as consumer goods. So what exactly is
the point of men?
107
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
108
Demographic Upheaval!1/1/2008 60 of the Prime
Work Force (boomers), mostly white males, will
be able to retireat a rate of 10,000 per
day.As of 2005 75 of people entering the
workforce are women and minorities. As of 2008,
they will flood the management ranks as the
PWF retires.Programs for recruiting women and
minorities with the necessary intensity mostly
AWOL. Selling to Men, Selling to Women, Jeffery
Tobias Halter
109
COROLLARY. EXCELLENCE. WOMEN.RULE.
110
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
111
Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, Cover
story/May 2006, World Business, Say It Like a
Woman Why the 21st-century negotiator will need
the female touch
112
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
113
The Core Argument Women Ought to Rule!1.
We are in a War for Talent.2. The war will
intensify.3. There is a severe shortage of
effective leaders at all levels.4. Women are
under-represented in our leadership ranks at
or near the top.5. Women and men are different
new science reinforces this view.6.
Womens strengths match the New Economys
leadership needsto a striking degree.7. Women
are also the principal purchasers of goods
and servicesretail and commercial.8. Ergo,
women are a large part of the answer to
the War for Talent/leadership shortage
issue/opportunity.
114
EXCELLENCE. OPPORTUNITY.BOOMERS.GEEZERS.
115
2000-2010 Stats18-44 -155 21(55-64
47)
116
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
117
55-64 vs 25-34 E.g. New cars trucks 20
more spending. Meals at full-service restaurants
29. Airfare 38. Sports equipment 58.
Motorized recreational vehicles 103. Wine
113. Maintenance, repairs and home insurance
127. Vacation homes 258. Housekeeping
yard services 250 to 500. Source Marti
Barletta, PrimeTime Women
118
44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
119
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
120
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
121
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 doneredefining herself.
Joan Hamilton, Town Country, JAN06
122
Older people have an image problem. As a
culture, were conditioned toward youth. When
we think of youth, we think energetic and
colorful when we think of middle age or
mature, we think tired and washed out. and
when we think of old or senior, we think
either exhausted and gray or, more likely, we
just dont think. The financial numbers are
absolutely inarguablethe Mature Market has the
money. Yet advertisers remain astonishingly
indifferent to them. Marti Barletta,
PrimeTime Women
123
Sixty Is the New Thirty Cover/AARP
124
EXCELLENCE. INNOVATE. OR. DIE.
125
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
126
EVERYTHING YOU THOUGHT YOU KNEW ABOUT
INNOVATION IS WRONG
127
What We Know For Sure About InnovationBig
mergers by large dont workScale is
over-ratedStrategic planning is the last refuge
of scoundrelsFocus groups are counter-productive
Built to last is a chimera (stupid)Success
killsForgetting is impossibleRe-imagine is a
charming ideaOrderly innovation process is an
oxymoronic phrase ( Believed only by morons
with ox-like brains)Tipping points are easy to
identify long after they will do you any
goodFacts arentAll information making it to
the top is filtered to the point of danger and
hilaritySuccess stories are the illusions of
egomaniacs (and gurus)If you believe the
memoirs of CEOs you should be institutionalizedH
erd behavior (XYZ is hot) is ubiquitous and
amusingTop teams are DittoheadsCEOs have
little effect on performanceExpert prediction
is rarely better than rolling the dice
128
InnoTacs
129
We become who we hang out with!
130
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
131
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
132
futuremark
133
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
134
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
135
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.
136
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
137
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
138
We have a strategic plan. Its called doing
things. Herb Kelleher
139
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
140
We ground up more pig brains!
141
You miss 100 percent of the shots you never
take. Wayne Gretzky
142
You only find oil if you drill wells.
Source The Hunters, by John Masters, Canadian
O G wildcatter
143
drill.
144
do things.
145
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
146
TP/BW on BigCo Sin 1 too much talk, too little
do
147
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
148
tolerate encourage? failure
149
FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
150
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
151
Fail faster. Succeed Sooner.David
Kelley/IDEO
152
Sams Secret 1!
153
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
154
Recently I asked three corporate executives what
decisions they had made in the last year that
would not have been made were it not for their
corporate plans. All had difficulty identifying
one such decision. Since all of the plans are
marked secret or confidential, I asked them
how their competitors might benefit from
possession of their plans. Each answered with
embarrassment that their competitors would not
benefit. Russell Ackoff (from Henry Mintzberg,
The Rise and Fall of Strategic Planning)
155
Speed/ Tempo
156
We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
157
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. /Col. John
Boyd
158
bet the farm
159
I dont intend to be known as the King of
the Tinkerers. CEO, large financial services
company
160
Immelt is now identifying technologies with
which GE will systematically set out to
build entirely new industries
StrategyBusiness, Fall 2005
161
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
162
No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas
Negroponte
163
Power Tools For Power Strategies
164
Conscious measurement
165
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?
166
Excellence The SE22 ORIGINS OF SUSTAINABLE
ENTREPRENEURSHIP
167
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, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
168
SE22/Origins of Sustainable
Entrepreneurship 10. Keep decentralizingtireles
s in pursuit of wiping out Centralizing
Tendencies (JJ, 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, JJ, 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/ Hyper-smart/Independe
nt people (GE, PepsiCo, Microsoft) 16. Support
Internal Entrepreneurs (3M, Microsoft) 17. Ferret
out Talent anywhere/No limits approach to
retaining top talent (Virgin, GE, PepsiCo)
169
SE22/Origins of Sustainable Entrepreneurship 1
8. 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)
170
EXCELLENCE. 4/40.
171
4/40
172
De-cent-ral-iz-a-tion!
173
The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
174
Ex-e-cu-tion!
175
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
176
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
177
Ac-count-a-bil-ity!
178
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)
179
615A.M.
180
EXCELLENCE. BEDROCK.LEADERSHIP.
181
EXCELLENCE.ENTHUSIASM.ENERGY. PASSION.
182
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
183
Whenever anything is being accomplished, I have
learned, it is being done by a monomaniac with a
mission. Peter Drucker
184
Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
185
EnthusiasmEnergyExuberanceVoracious
CuriosityIrritability/Dis-satisfactionRelentless
nessSelf-relianceCloser (Execution)excellence

186
EXCELLENCE. RELENTLESSNESS.
187
RE-LENT-LESS-NESS
188
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
189
EXCELLENCE. SHOWING UP.
190
You must be the change you wish to see in the
world.Gandhi
191
25
192
EXCELLENCE. STRETCH.
193
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
194
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!
195
Insanely great
196
"Life is not a journey to the grave with the
intention of arriving safely in one pretty and
well preserved piece, but to skid across the line
broadside, thoroughly used up, worn out, leaking
oil, shouting GERONIMO! Bill McKenna,
professional motorcycle racer
197
EXCELLENCE. DRILL.
198
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
199
You only find oil if you drill wells. The
Hunters, by John Masters, Canadian O G
wildcatter
200
EXCELLE ALWAYS.