Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

CREW Network/Houston/17 October 2008CREW Network/Houston/17 October 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”

Slides at …Slides at …

tompeters.comtompeters.com

““Tom let me tell you the Tom let me tell you the definition of a good lending definition of a good lending

officer. After church on officer. After church on Sunday, on the way home Sunday, on the way home with his family, he takeswith his family, he takes

a little detour to drive by a little detour to drive by the factory he just lent the factory he just lent

money to. Doesn’t go in or money to. Doesn’t go in or any such thing, just drives any such thing, just drives

by and takes a look.”by and takes a look.”

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))

““We Have Met the Enemy …We Have Met the Enemy …

Thank you, Thank you, Howard and Howard and

Fred … Fred …

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““We Have Met the Enemy …We Have Met the Enemy …

Thank you, Thank 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””

Thank you, Thank you, John and John and

Herb …Herb …

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 have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

MG, Edie MG, Edie and Marcus and Marcus … …

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

““Being aware of Being aware of yourself and how you yourself and how you

affect everyone around affect everyone around you is what you is what

distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore —Edie Seashore

((Strategy + BusinessStrategy + Business #45) #45)

““The The oneone thinthing you g you need to know about need to know about sustained individual sustained individual

success: Discover what success: Discover what you don’t like doing and you don’t like doing and

stopstop doing it.”doing it.”

—Marcus Buckingham, The One Thing You Need to Know

Thank you ,Thank you ,Herb , Robert, Herb , Robert, and Siberia, …and Siberia, …

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots

union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the

way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

““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

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

Thank you , Thank you , Peter/AIM, Peter/AIM,

Boyd and Tom Boyd and Tom … …

Organizations Organizations existexist to to serveserve. Period.. Period.

Leaders Leaders live live toto serveserve. Period.. Period.

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be a corporation is to be a

blessing to the blessing to the employees.”employees.” * * —Boyd Clarke—Boyd Clarke

*TP: An “organization” is, in fact and after all*TP: An “organization” is, in fact and after all is said and done, a/the “house” in which is said and done, a/the “house” in which

most of us “live” most of the time. most of us “live” most of the time.

"We all start out in life loving our fathers and mothers "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with husbands and children and friends and to cooperate with and show respect to all worthy individuals with whom we and show respect to all worthy individuals with whom we come in contact or have an opportunity to reach in other come in contact or have an opportunity to reach in other ways. We must apply that to nations and to other ways. We must apply that to nations and to other businesses. businesses.

"We in IBM must not confine our thoughts just to IBM. We "We in IBM must not confine our thoughts just to IBM. We must extend our cooperation to all other businesses whether must extend our cooperation to all other businesses whether we do business with them or not. We are one cog in the we do business with them or not. We are one cog in the industrial wheel. industrial wheel.

"Then as citizens we must extend our respect to all worthy "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome people in all nations. We are moving along in troublesome times, but the love of these various things of which I have times, but the love of these various things of which I have spoken and of the people in whom we are interested is going spoken and of the people in whom we are interested is going to be the great force which will make us all appreciate the to be the great force which will make us all appreciate the spiritual values which constitute the only solid foundation on spiritual values which constitute the only solid foundation on which we can build." which we can build."

Thomas J. Watson, Sr. address to IBM Sales and Service Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, Class 525 and Customer Engineers Class 528, IBM Country Club, Endicott, NY, October 30, 1941IBM Country Club, Endicott, NY, October 30, 1941

Organizations exist to serve. Period.Organizations exist to serve. Period.Leaders live to serve. Period.Leaders live to serve. Period.

Passionate servant leaders, determined to create a Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domainlegacy of earthshaking transformation in their domain, ,

create/ must create/ must necessarilynecessarily create organizations which are create organizations which are

… … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome

power of the Imagination power of the Imagination and Spirit and native and Spirit and native

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashedunleashed … In passionate pursuit of jointly … In passionate pursuit of jointly perceived soaring purposeperceived soaring purpose and personal and community and personal and community

and client service Excellence. and client service Excellence.

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement for initiative-(room for/encouragement for initiative-

adventures) adventures)

DecencyDecency (respect, grace, integrity, humane)(respect, grace, integrity, humane)

serviceservice (worthy of our clients’ & extended (worthy of our clients’ & extended

family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

Thank you Ben Thank you Ben & Norm, Ike , & Norm, Ike ,

Nelson, Dave (and Nelson, Dave (and Jerome ) …Jerome ) …

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 General Armchair 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 command.”future coalition command.”

““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, posted atSource: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) tompeters.com, source of original unknown (0609.08)

1818””

Thank you, Thank you, Susan and Susan and

Henry …Henry …

““KindnesKindness is s is

free.”free.”

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee 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

GriffinGriffin:: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobby the lobby (7/week, 3-4hrs/day)(7/week, 3-4hrs/day) ; ;

5 5 pianospianos ; ;

volunteers volunteers (120-140 hrs arts & (120-140 hrs arts &

entertainment per month).entertainment per month).

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

The 9 Planetree PracticesThe 9 Planetree Practices**

1.1. The Importance of Human Interaction The Importance of Human Interaction2.2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3.3. Healing Partnerships: The importance of Including Healing Partnerships: The importance of Including Friends and Family Friends and Family4.4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5.5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Healing Environments: Architecture and Design Conducive to Health Conducive to Health

*See the *See the APPENDIXAPPENDIX to this presentation for more on Planetree to this presentation for more on Planetree

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

Access to nurses station:

“Happen to”“Happen to”vs

“Happen with”“Happen with”Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

““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

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!

““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

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

Thank you,Thank you,Heather and Heather and

Lola …Lola …

““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

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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??

Elizabeth Cady StantonElizabeth Cady Stanton(more or less) (circa 0331.2007)(more or less) (circa 0331.2007)

Thank you,Thank you,Scott …Scott …

““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—

consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group

almost always did better. … almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

ThankThank you, Sheik you, Sheik

Mohammad Mohammad (& Jerry) …(& Jerry) …

24%24%

dubaidubai

Does Does youryour project portfolioproject portfolio

“ “havehave a dubai”?a dubai”?

““You do not merely want to You do not merely want to

be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry

Garcia

ThankThank you Steve you Steve

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

Thank you,Thank you, Lou et al. … Lou et al. …

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

““UPS wants to take over UPS wants to take over the sweet spot in the the sweet spot in the endless loop of goods, endless loop of goods, information and capital information and capital

that all the packages that all the packages [it moves][it moves] representrepresent.”.” —ecompany.com (E.g., —ecompany.com (E.g., UPS LogisticsUPS Logistics

manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)NA dealers)

Jim’s Jim’s GroupGroup

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

Thank you, Thank you, Eleanor,Eleanor,

Kevin , Tom and Kevin , Tom and Mike …Mike …

““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!!

““Mr. Watson, Mr. Watson, how long does it how long does it take to achieve take to achieve

Excellence?”Excellence?”

““11 minute”minute”

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