Post on 26-Mar-2015
transcript
LONGLONG
Tom Peters’ Tom Peters’
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
Catalyst For ChangeCatalyst For ChangeNational Black MBA AssociationNational Black MBA AssociationWashington/17 September 2008Washington/17 September 2008
NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure
that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:
“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”
andand “Verdana”“Verdana”
The 100 The 100 YearYear
Storm Storm
***Hubris***HubrisAxiom Axiom [upon which Nobel prizes were won][upon which Nobel prizes were won]: We can : We can eradicate risk eradicate risk [with the new math, the new instruments[with the new math, the new instruments].].We can refine the eradication process ad We can refine the eradication process ad infinitum infinitum [derivatives of derivatives of derivatives[derivatives of derivatives of derivatives].].A few tens of trillions of $$ of exposure—so A few tens of trillions of $$ of exposure—so what?what?We don’t want to be the first1st to bail—only We don’t want to be the first1st to bail—only wimps quit when they get their third wimps quit when they get their third consecutive $10M bonus at age 29.consecutive $10M bonus at age 29.I got this because I’m smart—this was not I got this because I’m smart—this was not repeat not luck; I deserved every damn penny.repeat not luck; I deserved every damn penny.[Counter text: [Counter text: Fooled By Randomness—Nassim Nicholas Fooled By Randomness—Nassim Nicholas Taleb]Taleb]
***Greed***GreedDuh.Duh.
***Quant primacy***Quant primacyToo much faith in super-smart intellectuals Too much faith in super-smart intellectuals [Reminds me to the point of dotting of the “i”s and crossing [Reminds me to the point of dotting of the “i”s and crossing of the “t”s of David Halberstam’s of the “t”s of David Halberstam’s The Best & The Brightest—The Best & The Brightest—on the on the Vietnam quagmire]Vietnam quagmire]
If you’re not a 100% quant convert, you’re If you’re not a 100% quant convert, you’re “old school” and held up to ridicule—even if “old school” and held up to ridicule—even if you’re Warren Buffett.you’re Warren Buffett.
***Step shift in complexity***Step shift in complexityFact is, “it” became incomprehensible.Fact is, “it” became incomprehensible.Connectedness Connectedness [in general, global][in general, global] totally new totally new and, again, incomprehensible.and, again, incomprehensible.
***Perception Is Everything***Perception Is EverythingFinancial markets are, by design, a house of Financial markets are, by design, a house of cards—e.g., basic idea is to take a dollar of cards—e.g., basic idea is to take a dollar of deposits and lend 10 based thereupon, deposits and lend 10 based thereupon, depending on the depositors not to withdraw depending on the depositors not to withdraw all at once.all at once.Emotions rule as much on Wall Street as at Emotions rule as much on Wall Street as at the football stadium!!!!!!the football stadium!!!!!!
ExExppectations are ectations are evereveryythinthing!!!!!g!!!!!Madness of crowds is just that—madness!!!!!Madness of crowds is just that—madness!!!!!It is axiomatic that house prices will rise and It is axiomatic that house prices will rise and rise and rise—and then rise some more.rise and rise—and then rise some more.
***Basics Rotten***Basics Rotten
MarMaryy and Joe couldn’t have and Joe couldn’t have ppaid the loan back if hell aid the loan back if hell had frozen over—thehad frozen over—theyy were were not, simnot, simppllyy, creditworth, creditworthy.y.The incentives were nutty—lend to anyone The incentives were nutty—lend to anyone and everyone and collect the full commission and everyone and collect the full commission when you book the loan and get fired if you when you book the loan and get fired if you don’t don’t book it.book it.
[Message from [Message from In Search of Excellence, in another context, In Search of Excellence, in another context, It’s the basics, stupid—Japan is killing us, circa 1980, because It’s the basics, stupid—Japan is killing us, circa 1980, because (1) their cars work and (2) they ask their workers how to (1) their cars work and (2) they ask their workers how to make them even better.]make them even better.]
***Good Ideology Run Amok***Good Ideology Run AmokDe-regulation = Holy.De-regulation = Holy.If de-regulation is good, then more is If de-regulation is good, then more is better.better.
***Thank God for Paulson—It’d Be Worse ***Thank God for Paulson—It’d Be Worse Without Him.Without Him.
***No One ***No One Knows the Knows the
Ending to This Ending to This StoryStory
***History Repeats Repeats Repeats Itself***History Repeats Repeats Repeats ItselfSouth Sea BubbleSouth Sea Bubble
TulipsTulipsEtcEtcEtcEtcEtcEtc
S & LS & LJunk bondsJunk bondsDot-comDot-com
Sub-primeSub-primeTKTKTKTKTKTK
***Black Swans***Black SwansBelieve it: s%^& happens. Believe it: s%^& happens. [See Taleb once again—[See Taleb once again—The Black Swan.]The Black Swan.]
NB: NB: Your resYour respponse to one or two black swans onse to one or two black swans is is yyour life leour life leggacacy—it’s easy to be a genius y—it’s easy to be a genius when the market is rising rising rising.when the market is rising rising rising.
Slides at …Slides at …
tompeters.comtompeters.com
MBWMBWAA
Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”
““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard
Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))
Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,
relationships))relationships))
““You must You must bebe the change you the change you
wish to see in the wish to see in the world.”world.”
Gandhi
““It’s It’s alwaalwayyss showtime.”showtime.”
—David D’Alessandro, Career Warfare
Why in Why in the the World did World did youyou go to go to SiberiaSiberia??
EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum
concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
… … no less than no less than CathedralsCathedrals in which the full and in which the full and
awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair
of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … Excellence.pursuit of … Excellence.
““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors
and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech
L(+21) = L(-L(+21) = L(-21)21)
Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)
““We Have …We Have …
ThankThank you, Howard you, Howard (Starbucks)!(Starbucks)!
InternalInternal organizational organizational
excellenceexcellence* *** ** = = Deepest “Blue Deepest “Blue
Ocean”Ocean”
ThankThank you ,Herb you ,Herb
““You have to You have to treat your treat your
employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,
upon being asked his “secret to success”upon being asked his “secret to success”
Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-pageat Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across thead in USA Today thanking HK for all he had done; across the
way in Dallas American Airlines’ pilots were picketing theway in Dallas American Airlines’ pilots were picketing the Annual Meeting)Annual Meeting)
ThankThank you Ben, you Ben,
Norm, Ike, and Norm, Ike, and DelawareDelaware
GiveGive good good tea! tea!
““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all
through the through the develodeveloppmentment of friendshiof friendshippss.”.”
——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)
*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his
future coalition commandfuture coalition command
““eighty eighty percent of percent of success is success is
showing up.” showing up.” ——Woody AllenWoody Allen
ThankThank you , you ,
Nelson Nelson Mandela …Mandela …
ThankThank you , you ,Rich …Rich …
““Mapping your Mapping your competitive competitive position”*position”*
or …or …
*Rich D’Aveni/*Rich D’Aveni/HBRHBR
1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * * * *
The “Have The “Have you …” you …”
50*50**See *See Appendix OneAppendix One
ThankThank you , you ,
Conrad …Conrad …
Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his life,celebrating his life,
was asked, “What was the was asked, “What was the most important lesson most important lesson
you’ve learned in you long you’ve learned in you long and distinguished career?” and distinguished career?”
His immediate answer …His immediate answer …
Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned
in you long and distinguished career?” in you long and distinguished career?”
His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the
shower curtain shower curtain inside the inside the bathtubbathtub””
ThankThank you you
Dr. GroopmanDr. Groopman
1818””
““The four most The four most important words in any important words in any
organizationorganization
are …are … ‘What do ‘What do you think?’you think?’ ” ”
Source: courtesy Dave Wheeler,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of
original unknown (0609.08) original unknown (0609.08)
ThankThank you , you ,WalterWalter
Politics Politics politics politics politics politics politics politics politicspolitics politics politics politics politics politics politics politics politics politics politics politicspolitics politics politics politics politics politicspolitics politics politics politics politics politicspolitics politics politics politicspolitics politics politics
politicspolitics
??????????????
“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in hihigghh places!”places!”
oror
“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in lowlow places!” places!”
George Crile George Crile (Charlie Wilson’s War)(Charlie Wilson’s War) on Gust on Gust
Avrakotos’ strategy:Avrakotos’ strategy: “He had “He had become something of a become something of a
legend with these legend with these people who manned the people who manned the
underbelly of the underbelly of the Agency [CIA].”Agency [CIA].”
Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”
Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”
ThankThank you, Henry you, Henry
““Courtesies of a small Courtesies of a small and trivial character are and trivial character are
the ones which strike the ones which strike deepest in the grateful deepest in the grateful
and appreciating heart.”and appreciating heart.”
—Henry Clay
The Manager’s The Manager’s Book of Book of DecenciesDecencies: :
How Small How Small /gestures Build /gestures Build
Great Companies.Great Companies. —Steve Harrison, Adecco
““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to
the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a
college president.college president. He was He was seriously interested in seriously interested in
who you were and what who you were and what you had to sayyou had to say.”.”Sara Lawrence-Lightfoot, Respect
Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:
nonenone of THE top 15 factors of THE top 15 factors
determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome
PSPS directldirectly related to y related to StaffStaff InteractionInteraction
PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction
Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.
Kindness is Kindness is freefree.. Listening to patients or answering their
questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
ThankThank you you
HeatherHeather
““Forget Forget ChinaChina, , IndiaIndia and the and the
InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven
by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE
WomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.
So what exactly is the point of So what exactly is the point of menmen??
7/17/133
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50
today have today have more more thanthan halfhalf of of their adult life their adult life
ahead of them.”ahead of them.” —Bill
Novelli, 50+: Igniting a Revolution to Reinvent America
ThankThank you Sheik you Sheik MohammadMohammad
24%24%
Single Single greatest act greatest act
of pure of pure imaginationimagination
dubaidubai
ThankThank you Larry you Larry
and Jimand Jim
*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!)(115,000!)
*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2007: 2007:
$62,000,000$62,000,000
Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer Services
Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School
Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
#4 Japan#4 Japan#3 USA#3 USA
#2 China#2 China
#1 #1 GermanyGermany
Reason!!!Reason!!!
MittelstandMittelstand
“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 Buy a very large one very large one and just waitand just wait.”.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
The The lastlast word: word: There There is is nono “last “last
word.”word.”
ThankThank you Eleanor you Eleanor
and Kevinand Kevin
““Do one Do one thing every thing every
day that day that scares you.”scares you.”
—Eleanor Roosevelt
Kevin Roberts’ CredoKevin Roberts’ Credo
11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.
10. Avoid moderationAvoid moderation!!
ThankThank you John you John
1/401/40
“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may
think you’re finding it when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the software. software. We fixed them by doing it over and over, again We fixed them by doing it over and over, again and again.and again. We do the same today. While our competitors We do the same today. While our competitors are still sucking their thumbs trying to make the design are still sucking their thumbs trying to make the design
perfect, we’re already on prototype versionperfect, we’re already on prototype version ##55..
By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version
##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by
BloombergBloomberg
““You miss You miss
100100%%
of the shots of the shots you never you never
take.”take.” —Wayne—Wayne GretzkyGretzky
““RewardReward excellent failures.
PunishPunish mediocre
successes.”Phil Daniels, Sydney exec
ThankThank you , USG … you , USG …
RelentlessRelentless:: “One of “One of
my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or
to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,
until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant
ThankThank you , Fred … you , Fred …
4/404/40
DECENTRALIZATIONDECENTRALIZATION..
EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.
66:15A.M. :15A.M.
““Execution Execution isis strategy.” strategy.”
—Fred Malek—Fred Malek
ThankThank you , Gary … you , Gary …
We We areare the the companycompany we keepwe keep
Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality
StaffStaffConsultantsConsultants
VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)
Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers
Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)
Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)
IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates
LanguageLanguageBoardBoard
““Normal” Normal”
= = “o “o forfor 800”800”
“The The Bottleneck Bottleneck
Is at the Top Is at the Top of the of the
Bottle”Bottle”“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry dogma:
AtAt thethe totop!”p!”
— Gary Hamel/Harvard Business Review
ThankThank you , 7-11… you , 7-11…
TP: TP: “How to flush
$500,000 down
the toilet in one easy
lesson!!”
< CAPEX< CAPEX> People!> People!
Brand Brand = =
Talent.Talent.
Our Mission
To develop and manage To develop and manage talent;talent;
to apply that talent,to apply that talent,throughout the world, throughout the world,
for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;
to do so with profit.to do so with profit.
WPP
#1#1 cause of cause ofDis-satisfaction?Dis-satisfaction?
2/year 2/year = =
legacy.legacy.
53 = 53 = 5353
““Leaders Leaders
‘‘dodo’’ people. people.
Period.”Period.” —Anon.
““The leaders of Great The leaders of Great
Groups Groups lovelove talent talent and know where to find and know where to find
it. They it. They revel revel in the in the talent of others.”talent of others.”
—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing Organizing GeniusGenius
““Leaders Leaders
‘‘SERVESERVE’’ people. people.
Period.”Period.” —inspired by Robert Greenleaf
ThankThank you , Mike … you , Mike …
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.LEADERSHIP. LEADERSHIP.
THE 9Ps. THE 9Ps. THE 1M.THE 1M.
PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..
PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..
PositivePositive..
The greatest dangerThe greatest dangerfor most of usfor most of us
is not that our aim isis not that our aim istoo hightoo high
and we miss it,and we miss it,but that it isbut that it is
too lowtoo lowand we reach it.and we reach it.
Michelangelo
““Excellence can be obtained if you:Excellence can be obtained if you:
... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”
Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)