Tom Peters’ EXCELLENCE. ALWAYS. Discover Network Merchant Advisory Council Chicago/02 November...

Tom Peters’Tom Peters’

EXCELLENCEXCELLENCEE. . ALWAYSALWAYS..

Discover NetworkDiscover NetworkMerchant Advisory CouncilMerchant Advisory CouncilChicago/02 November 2006Chicago/02 November 2006

Thank Thank You!You!

FFLLOOWWEERRPPOOWWEERR

““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 … Jim Jim Jeffords Jeffords oversighoversigh

t!t!

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE REAL PROBLEMREAL PROBLEM.* **

*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE

CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF

THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A THAT RESULTED IN A COMPLETE RUPTURE.COMPLETE RUPTURE.

““If God spoke to me by saying, ‘Mark, you’re If God spoke to me by saying, ‘Mark, you’re down to your last three words: What woulddown to your last three words: What would you want to say to your fellow humans that you want to say to your fellow humans that

would make the most positive impact?’ It would would make the most positive impact?’ It would be a close call between be a close call between Love Thy NeighborLove Thy Neighbor

and and Wash Your HandsWash Your Hands

.”.”—Mark Pettus, M.D., —Mark Pettus, M.D., The Savvy PatientThe Savvy Patient

“The most important thing you can do to keep “The most important thing you can do to keep

from getting sick is tofrom getting sick is to wash wash your handsyour hands.”.” ——CDCCDC/National Center /National Center

for Infectious Diseasesfor Infectious Diseases

Tom Peters’Tom Peters’

EXCELLENCEXCELLENCEE. . ALWAYSALWAYS..

Discover NetworkDiscover NetworkMerchant Advisory CouncilMerchant Advisory CouncilChicago/02 November 2006Chicago/02 November 2006

Slides* at …

tompeters.comtompeters.com

*also see “LONG”“LONG” version

5/45/422

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

HA. HA.

“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

“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,,

outoutpperformederformed the market from 1917 to 1987. the market from 1917 to 1987.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

“Ford, GM and Chrysler do not just make cars expensively … they make bad

cars expensively.” —

Investec analyst, International Herald, 0805.06

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

HA. HA.

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

Message/Implication: Message/Implication: go for itgo for it!

C.E.O.C.E.O. to

C.D.O.C.D.O.

EXCELLENCE. EXCELLENCE.

ALLALL . YOU. . YOU. NEED. TO. NEED. TO.

KNOW.KNOW.

2255

““20-20-minute minute

rule”rule” —Craig Johnson/30 yrs

““The The [Union senior][Union senior] officers rode past officers rode past the Confederates smugly without any the Confederates smugly without any

sign of recognition except by one. sign of recognition except by one.

‘When ‘When GeneralGeneral GrantGrant reached reached the line of ragged, filthy, bloody, the line of ragged, filthy, bloody,

despairing prisoners strung out on despairing prisoners strung out on each side of the bridge, each side of the bridge, he lifted his he lifted his hat and held it over his head until he hat and held it over his head until he

ppassed the last man of that living assed the last man of that living funeral cortefuneral corteggee. He was the only . He was the only officer in that whole train who officer in that whole train who recognized us as being on therecognized us as being on the

face of the earth.’*”face of the earth.’*”

*quote from the diary of a Confederate soldier


ALLALL . YOU. . YOU. NEED. TO. NEED. TO.

KNOW.KNOW.

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

EXCELLENCE.EXCELLENCE.

ALL. YOU. NEED. ALL. YOU. NEED. TO. KNOW. TO. KNOW. ANYANYWHERE.WHERE.

ANYANY MARKET. MARKET. ANYANY TIME. TIME.

#1/10#1/1000

“Best Companies to Work for”/2005

7X.7X. 730A-730A-800P. 800P. F12AF12A..**

*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

Jim’s Jim’s GroupGroup


SIBERIA.SIBERIA.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

Raging Success Raging Success == P P-SQUARED-SQUARED. .

CC. . EE-CUBED-CUBED..

PPeople.eople.PProduct.roduct.

CCustomers.ustomers.EExecution.xecution.

EEnthusiasm.nthusiasm.EExcellence.xcellence.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship

4. Productivity Through 4. Productivity Through PeoplePeople5. 5. HandsHands OnOn, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting

7. 7. SimpleSimple Form, Form, LeanLean StaffStaff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”


INNOVATE. INNOVATE. OR. DIE.OR. DIE.

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most responsive one most responsive to changeto change.”.” —Charles Darwin


INNOVATE. INNOVATE. ALL. ALL. WRONGWRONG..

More Than $$$$

#1#1 R&D

spending, last 25 years/USA?

GM

“I don’t believe in

economies of scale. You don’t get better by being bigger. You get worse.” —

Dick Kovacevich/Wells Fargo

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Dell … Intel

… Home Depot …

Microsoft … GE

“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: I’m sure there are success stories

out there, but at this moment I draw a

blank.” —Mark Sirower, The Synergy Trap


INNOVATE. INNOVATE. AXIOMATICAXIOMATIC..

The The MessMess Is Is the the

MessageMessage!! PeriodPeriod!!

““We are in a We are in a brawl with no brawl with no

rules.”rules.” —Paul Allaire

S.A.V.S.A.V.


INNOVATE. INNOVATE. TACTICS..

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 itTry 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. Try it. Try it.

Try it. Try it.

“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

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1

““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, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##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

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

Excellence1982: The Bedrock “Eight Basics”

1.1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

tolerate tolerate [encourage?] [encourage?]

failurefailure

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

Bonus: Bonus: “long”“long” version version

Think!Think!vs.vs.

do!do!Tom peters/27 October 2006Tom peters/27 October 2006

re-imagine re-imagine the “value the “value

added” added” equationequation

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

$55$55BB

The [NEW] “Value-added Ladder”

Gamechanging Solutions/ Gamechanging Solutions/ Implemented Implemented

Customer successCustomer successServices/Transactions

Manufactured Goods/Things Extracted Raw Materials

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ HosHosppital’s ital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

“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

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership


spellbindingspellbinding ExperiencesExperiences Gamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. 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 We

convert ‘needs’ into convert ‘needs’ into ‘dreams.’ Sales are the ‘dreams.’ Sales are the

inevitable resultinevitable result.”.” — Judy George,

Domain Home Fashions


dreamsdreams comecome truetruespellbindingspellbinding ExperiencesExperiences GamechangingGamechanging SolutionsSolutions

ServicesGoods

Raw Materials

Dream Merchant:Dream Merchant:

IBMIBM

[totally] re-imagine [totally] re-imagine the business around the business around the the twotwo staggering staggering

“new” opportunities“new” opportunities

womenwomen

““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

Women’s Trifecta+Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

1.1. Women’s CONSUMER GOODS Women’s CONSUMER GOODS purchasespurchases. . 2.2. Women’s COMMERCIAL GOODS Women’s COMMERCIAL GOODS purchasespurchases..3.3. WOMEN WOMEN AREARE THE MARKET. THE MARKET. NotNot an an “initiative.” “initiative.” 4.4. WomenWomen--ownedowned BUSINESSES BUSINESSES (absolute #s, (absolute #s, acceleration, relative growth). acceleration, relative growth).

5.5. Women’s “brand” of Women’s “brand” of LEADERSHIP LEADERSHIP SKILLS.SKILLS.6.6. women’s strengths women’s strengths matchmatch needs of the needs of the newnew “value-added ladder.” “value-added ladder.”7.7. Women’s DRAMATICALLY INCREASING- Women’s DRAMATICALLY INCREASING-commandingcommanding WEALTHWEALTH—absolute, relative. —absolute, relative. (Jobs. Longevity.(Jobs. Longevity. Education. Entrepreneurial. Decline of BOYS. Retirement of Education. Entrepreneurial. Decline of BOYS. Retirement of MEN/Senior MEN.) MEN/Senior MEN.)

8.8. DEMOGRAPHICDEMOGRAPHIC TSUNAMITSUNAMI. WOMEN. Women . WOMEN. Women as as solo HEADs-OF-HOUSEHOLD. THE WOMaN- solo HEADs-OF-HOUSEHOLD. THE WOMaN- BOOMER-GEEZER. LOoooNG-TERM BOOMER-GEEZER. LOoooNG-TERM PHENOMENON. PHENOMENON. Global phenomenon. Global phenomenon.9.9. SPEEDSPEED of “change.” mother of all of “change.” mother of all ““megatrendsmegatrends.”.”

1. 1. ParticipationParticipation rate/2 of 3 new jobs, lastrate/2 of 3 new jobs, last 30 years. 30 years.2. Male workforce2. Male workforce departuresdepartures/SENIOR male/SENIOR male workforce departures. workforce departures.3. 3. ShrinkingShrinking pay gap/same jobs.pay gap/same jobs.4. More senior positions. Greater decision-4. More senior positions. Greater decision- making/expenditure/org design making/expenditure/org design authorityauthority.. More line jobs. More line jobs.5. Female 5. Female solosolo head-of-household growing. head-of-household growing.6. 6. LongevityLongevity..7. 7. EducationEducation..8. More effective 8. More effective moneymoney managementmanagement..

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

““IdioIdiott”” is too is too

kind a kind a word.word.

“That’s 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 8585%% of

Unilever’s products are purchased by … women.

“That’s a

VERYVERY 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 Unilever’s products are purchased by … women.

“That’s a

VERYVERY sick

man.”

—Tom Peters

Good Thinking, Guys!

“Kodak Sharpens Digital Focus “Kodak Sharpens Digital Focus

On Its Best Customers:On Its Best Customers:

WomenWomen””

—Page 1 Headline/WSJ/0705


FOUND.FOUND.DUH.DUH.

“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have

leaders who leaders who represent the represent the population we population we

serveserve.”.” —Steve Reinemund/PepsiCo

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

The Perfect Answer

Jill and Jack buy slacks in black…

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.

6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.

10. 10. Women’s Women’s Market = Market =

Opportunity Opportunity No. 1.No. 1.

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has

developed andeveloped an index of 115 index of 115 companies poised to benefit companies poised to benefit

from women’s increased from women’s increased purchasing powerpurchasing power ;; over the past over the past

decade the value of shares in decade the value of shares in

Goldman’s basket hasGoldman’s basket has risen by risen by

9696%%,, against the Tokyo against the Tokyo stockmarket’s rise of stockmarket’s rise of

1313%%.”.”

—Economist, 15 April 2006

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

“Mostly Moms”

““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—

generally considered the generally considered the industry’s most frequent industry’s most frequent

users and therefore its most users and therefore its most important consumers—or they important consumers—or they were cast in the role of moms were cast in the role of moms who were simply conduits to who were simply conduits to

their children.”their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

New! New! New! New! New!New! New! New! New! New!

Women’s Women’s magazinesmagazines [“a medium

that McDonald’s had rarely used”]

Source: Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

““Forget Forget ChinaChina, , IndiaIndia andand the the


by by WomenWomen..””

—Headline, Economist, April 15, 2006, Leader, page 14

10.610.6

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 million (48% of all firms)10.6 million (48% of all firms)

Growth rate of Women-owned firms vs all Growth rate of Women-owned firms vs all firms:firms: 3X 3X

Rate of jobs created by Women-owned firms Rate of jobs created by Women-owned firms vs all firms:vs all firms: 2X 2X

Ratio of total payroll of Women-owned firms Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:vs total for Fortune500 firms: >1.0 >1.0

Ratio of likelihood of Women-owned firms Ratio of likelihood of Women-owned firms staying in business vs all firms:staying in business vs all firms: >1.0 >1.0

Growth rate of Women-owned companies Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 with revenues of >$1,000,000 and >100 employees vs all firms:employees vs all firms: 2X 2X

Source: Margaret Heffernan, How She Does It

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

““Economic Growth Economic Growth Is Driven by … Is Driven by …

WomenWomen..””

—Headline, EconomistEconomist, April 15, 2006, Leader, page 14

““Since Since 19701970, , women have women have

held held twotwo out of out of every every three three new new jobs created.”jobs created.” —FT,

10.03.2006

“One thing is certain: Women’s 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, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as

thought out and practiced by a thought out and practiced by a woman.”woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

Impact! Add It Up!

Primary markets/EverythingPrimary 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 Greater global workforce participation rateparticipation rate (“bigger contributor to GDP

growth than technology, China, India”—Economist)

Higher wagesHigher wages (more seniority, promotions—even if not

to CEO; greater pay equity—even if not equal)

Business “decision makers”Business “decision makers” (more

seniority, promotions—even if not to CEO)

Women-owned businessesWomen-owned businesses (answer to

the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that

female managers outshine their male counterparts in almost every measure”

Title, Special Report/BusinessWeek

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same job.” are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].pace is slow for the corner office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

boomersboomers-geezers-geezers

Subject: Marketers & StupiditySubject: Marketers & Stupidity

““It’s 18-It’s 18-44, 44,

stupid!”stupid!”

Subject: Marketers & StupiditySubject: Marketers & Stupidity

Or is it: “18-44 is

stupid, stupid!”

“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s 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 Who wants to reach them?wants to reach them? … The theory is

that if you ‘get them while they’re young,

they’re yours for life.’ What What nonsensenonsense!”!”

—Marti Barletta, PrimeTime Women

2000-2010 Stats2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household

after the “head of household” reaches age

50: 77Source: Marti Barletta, PrimeTime Women

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when Which is pretty weird when you consider age 50 is right you consider age 50 is right

about when people who have about when people who have worked all their lives start to worked all their lives start to have some money to spendhave some money to spend.”.”

—Marti Barletta, PrimeTime Women

Median Household Net WorthMedian Household Net Worth

<35: $7K35-44: $44K45-54: $83K

55-64: $112K55-64: $112K65-69: $114K65-69: $114K70-74: $120K70-74: $120K

>74: $100KSource: U.S. Census

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

““The New Customer The New Customer Majority is the only adult Majority is the only adult

market with realistic market with realistic prospects for significant prospects for significant sales growth in dozens of sales growth in dozens of

product lines for product lines for thousands of thousands of companies.”companies.”

—David Wolfe & Robert Snyder, Ageless Marketing

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

The Copenhagen (Self) Pact re “This The Copenhagen (Self) Pact re “This Topic”:Topic”:

*Early!*Early!*Loud!*Loud!*Repetitive!*Repetitive!*Aggressive!*Aggressive!**UnUnfriendly!/rude!/friendly!/rude!/ insulting! insulting!

““Forget Forget ChinaChina, , IndiaIndia and the and the


by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

We We becomebecome who we who we

spend time spend time with!with!

Measure “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

“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

EXCELLENCE.EXCELLENCE.1966. 2006.1966. 2006.

4/404/40

De-centralizationDe-centralizationexecutionexecution

accountabilityaccountability6:15a.m.6:15a.m.



““If if feels If if feels painfulpainful and and

scaryscary—that’s —that’s realreal delegation”delegation”

—Caspian Woods, small biz owner



““ExecutionExecution is is the the jobjob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done



““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)






BEDROCK.BEDROCK.TALENT.TALENT.

Hire Hire veryvery good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22 years.”

—Ed Michaels, War for Talent

INVITE THEM INVITE THEM TO JOIN US IN TO JOIN US IN A JOURNEY TO A JOURNEY TO EXCELLENCE!EXCELLENCE!

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

“The role of the Director is to create a space where

the actor or actress can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance

PUT PUT HRHR AT AT THE THE HEADHEAD OF OF

THETHE HEADHEAD TABLETABLE. .

DDDD$21M$21M

A review of Jack and Suzy Welch’s 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. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s 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 Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

LIVE FOR LIVE FOR 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

Brand Brand = =

Talent.Talent.


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

““I never, ever thought I never, ever thought of myself as a of myself as a

businessman. businessman. I was I was interested in interested in

creating things I creating things I would be proud would be proud

ofof.”.” —Richard Branson

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

““Most important,Most important,

he he uppedupped the the energyenergy levellevel at at

Motorola.”Motorola.” —Fortune on Ed Zander/08.05

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

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

Gandhi

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

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

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William

Feather, author

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

PURPOSEPURPOSE..PASSIONPASSION..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE..

EXEXCELLE CELLE ALWALWAYSAYS..

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