The Challenge: To Create More Value in All Negotiations

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1,000,000
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Tom Peters RE-IMAGINE EXCELLENCE. INNOVATE.
OR PERISH. 16 NOVEMBER 2014 (slides at
tompeters.com also see excellencenow.com)
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11 November 2014 TEN MILLION JOBS AT RISK
FROM ADVANCING TECHNOLOGY UP TO 35 PERCENT OF
BRITAIN'S JOBS WILL BE ELIMINATED BY NEW
COMPUTING AND ROBOTICS TECHNOLOGY OVER THE NEXT
20 YEARS, SAY DELOITTE/OXFORD UNIVERSITY
EXPERTS. Headline,Telegraph (UK)
25,000,000/Japan, 60,000,000 USA
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The root of our problem is NOT that were in a
Great Recession or a Great Stagnation, but
rather that we are in the early throes of a
Great Restructuring. Our technologies are racing
ahead, but our skills and organizations are
lagging behind. Source Race AGAINST the
Machine, Erik Brynjolfsson and Andrew McAfee
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China/Foxconn 1,000,000 robots/next 3
years Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
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Since 1996, manufacturing employment in China
itself has actually fallen by an estimated 25
percent. Thats over 30,000,000 fewer Chinese
workers in that sector, even while output soared
by 70 percent. Its not that American workers
are being replaced by Chinese workers. Its that
both American and Chinese workers are being made
more efficient by automation. Erik
Brynjolfsson and Andrew McAfee, The Second
Machine Age Work, Progress, and Prosperity in a
time of Brilliant Technologies
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Ten Million Jobs at Risk from Advancing
Technology Up to 35 percent of Britain's jobs
will be eliminated by new computing and robotics
technology over the next 20 years, say experts
Deloitte/Oxford University. Headline,Telegraph
(UK), 11 November 2014 I believe that 90
percent of white-collar/knowledge-work
jobswhich are 80 percent of all jobsin the
U.S. will be either destroyed or altered beyond
recognition in the next 10 to 15 years. Tom
Peters, Cover,Time, 22 May 2000 The machine
plays no favorites between manual and white
collar labor. Norbert Wiener, 1958
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Human level capability has not turned out to be
a special stopping point from an engineering
perspective. Illah Reza Nourbakhsh, Robot
Futures/2013 SOFTWARE IS EATING THE WORLD.
Marc Andreessen/2014 The computers are in
control. We just live in their world. Danny
Hillis, Thinking Machines/2011
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-1/1
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SP 500 -1/1 Every 2 weeks! Source
Richard Foster (via Rita McGrath/HBR/12.26.13)
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Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
NONE of the long-term survivors managed to
outperform the market. Worse, the longer
companies had been in the database, the worse
they did. Financial Times
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Dick Kovacevich/Wells Fargo YOU DONT GET
BETTER BY BEING BIGGER. YOU GET WORSE.
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MITTELSTAND agile creatures darting
between the legs of the multinational monsters
(Bloomberg BusinessWeek, 10.10)
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Aizen Kobo Indigo WorkshopGeorge Whalin
Be the best. Its the only market thats not
crowded.
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The Magicians of Motueka the Mittelstand
Trifecta W.A. Coppins Ltd. (Coppins Sea
Anchors/ PSA/para sea anchors) Textiles,
1898 thrive on wicked problems e.g., U.S.
Navy STLVAST (Small To Large Vehicle At Sea
Transfer) custom fabric from W. Wiggins
Ltd./Wellington (specialty nylon, Dyneema,
from DSM/Netherlands)
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My Conclusions 1. Restructuring, not
stagnation (USA Japan China ) 2.
Revitalized big companies NOT the
(primary) answer
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Thriving On Chaos Case Study 1
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Burt Rutan Scaled Composites wasnt a fighter
pilot he was an engineer who had been asked to
figure out why the U.S. Air Force F-4 Phantom
was flying pilots into the ground in Vietnam.
While his fellow engineers attacked such tasks
with calculators, Rutan insisted on considering
the problem in the air. A near-fatal flight not
only led to a critical F-4 modification, it also
confirmed for Rutan a notion he had held ever
since he had built model airplanes as a child.
The way to make a better aircraft wasnt to sit
around perfecting a design, it was to get
something up in the air and see what happens,
then try to fix whatever goes wrong. Eric
Abrahamson David Freedman, Chapter 8, Messy
Leadership, from A Perfect Mess The Hidden
Benefits of Disorder
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What are Rutans management rules? He insists he
doesnt have any. I dont like rules, he says.
Things are so easy to change if you dont write
them down. Rutan feels good management works in
much the same way good aircraft design does
Instead of trying to figure out the best way to
do something and sticking to it, just try out an
approach and keep fixing it. Eric
Abrahamson David Freedman, Chapter 8, Messy
Leadership, from A Perfect Mess The Hidden
Benefits of Disorder
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One Rutan principle is not to worry so much
about the formal background of the engineers he
hires or to look for the sorts of specialties
normally sought after by aerospace companies.
Instead, he looks for people who share his
passion for aircraft design and who can work on
anything from a fuselage to a door handle or are
willing to learn how. He then gives those people
free rein. Eric Abrahamson David Freedman,
Chapter 8, Messy Leadership, A Perfect Mess
The Hidden Benefits of Disorder
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A Rutan principle is that its useful to have
everyone questioning everything the company does
all the time, and especially have people
questioning their own work. Rutan makes sure that
when employees point out their mistakes, theyre
applauded rather than reprimanded. Eric
Abrahamson David Freedman, Chapter 8, Messy
Leadership, A Perfect Mess The Hidden Benefits
of Disorder
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Bert Rutans No Rules RulesGet
going, now fix it after youve gotten
started.Forget best, forget rulesjust run
like mad and adjust fast.People with passion
and breadthgiven freedom from Day 1 to try
any-damn- thing. (Specialism secondary.)Everyo
ne questions everything (and everyone) all the
time. Applaud mistakesAND the person who
made them.
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Thriving On Chaos Case Study 2
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Success, Honda said, can only be achieved
through repeated failure and introspection.
Success represents one percent of your work,
which results only from the ninety-nine percent
that is called failure. Jeffrey Rothfeder,
Driving Honda Inside the Worlds Most
Innovative Car Company
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Asked for the most important attribute that an
ideal Honda applicant should have, Honda noted
that he preferred people who had been in
trouble. Honda believed genius arose from
idiosyncrasy, Non-conformity is essential, he
told his workers. Source Jeffrey Rothfeder,
Driving Honda Inside the Worlds Most
Innovative Car Company
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He encouraged the board to authorize spinning
off the RD division into an entirely separate
and independent subsidiary of Honda Motor, and he
gave the new unit total autonomy to develop its
own research agenda and strategic direction.
To further ensure that RD had few constraints,
he eliminated rank among the engineers, assuming
that a mostly flat organization would encourage
engineers to try out new ideas without fear of
being rebuffed. Within Honda RD, we have an
expression that all engineers are equal in the
presence of technology. Source Jeffrey
Rothfeder, Driving Honda Inside the Worlds
Most Innovative Car Company
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The Honda
Way Individual responsibility over corporate
mandates A flat organization Autonomous and ad
hoc design, development and manufacturing
teams that are nonetheless continuously
accountable to one another Perpetual change as
working medium Unyielding cynicism about what
is believed to be truth Jeffrey Rothfeder,
Driving Honda Inside the Worlds Most Innovative
Car Company
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Bert Rutans No Rules Rules1. Get
going, now fix it after youve gotten
started.2. Forget best, forget rulesjust run
like mad and adjust fast.3. People with
passion and breadthgiven freedom from Day 1
to try any-damn- thing. (Specialism
secondary.)4. Everyone questions everything all
the time. No sacred cows (principles).
No sacred cows (people).5. Applaud mistakesAND
the person who made them.
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1/19821/2014
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Excellence82 The Bedrock Eight Basics 1.
A Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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1/48/1966-2014 WTTMTW
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WHOEVER TRIES THE MOST THINGS WINS
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WE HAVE A STRATEGIC PLAN. ITS CALLED DOING
THINGS. Herb KelleherDONT PLAN. DO
STUFF.David Kelley/IDEO
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We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were already on prototype version 5. By the
time our rivals are ready with wires and screws,
we are on version 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by Bloomberg
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Culture of Rapid PrototypingEffective
prototyping may be THE MOST VALUABLE CORE
COMPETENCE an innovative organization can hope
to have. Michael Schrage

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Minimize measure mean-time-to-prototypeSour
ce Sony/Akio Morita/reported by Michael Schrage
in Serious Play
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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.
Michael Schrage, Serious Play
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Learn not to be careful. Photographer Diane
Arbus to her students (Careful Stay on the
sidelines)
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EXPERIMENT FEARLESSLYBusinessWeek, Type A
Organization Strategies How to Hit a Moving
TargetTactic 1RELENTLESS TRIAL AND
ERROR Source Wall Street Journal,
cornerstone of effective approach to
rebalancing company portfolios in the face of
changing and uncertain global economic conditions
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FAIL. FORWARD. FAST.
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FAIL. FORWARD. FAST.High Tech CEO,
Pennsylvania FAIL FASTER. SUCCEED SOONER.
David Kelley/IDEO
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MOVE FAST. BREAK THINGS. Facebook
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Fall seven times, stand up eight. Japanese
proverb
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REWARD excellent failures. PUNISH mediocre
successes.Phil Daniels, Sydney exec
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In business, you REWARD people for taking RISKS.
WHEN IT DOESNT WORK OUT YOU PROMOTE THEM
-BECAUSE THEY WERE WILLING TO TRY NEW THINGS. If
people tell me they skied all day and never fell
down, I tell them to try a different mountain.
Michael Bloomberg
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The secret of fast progress is INEFFICIENCY,
fast and furious and numerous failures.Kevin
Kelly
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Natural selection is death. ... WITHOUT HUGE
AMOUNTS OF DEATH, ORGANISMS DO NOT CHANGE OVER
TIME. ... Death is the mother of structure. ...
It took four billion years of death ... to invent
the human mind ... The Cobra Event
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The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles. Paul Saffo
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Regis McKenna A lot of companies in Silicon
Valley fail.Robert Noyce Maybe not enough
fail.RM What do you mean by that?RN
Whenever you fail, it means youre trying new
things.McKenna was the original Silicon
Valley marketing guruRobert Noyce/Intel
co-founder/co-inventor integrated
circuitSource Fast Company
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THE ESSENCE OF CAPITALISM IS ENCOURAGING
FAILURE, NOT REWARDING SUCCESS. Nassim Nicholas
Taleb/Antifragile
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Ideas Economy CAN YOUR BUSINESS FAIL FAST
ENOUGH TO SUCCEED? Source ad for Economist
Conference/0328.13/Berkeley CA (caps are
Economist)
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Richard Farson Ralph Keyes Whoever Makes
the Most Mistakes Wins The Paradox of Innovation
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It is not enough to tolerate failureyou must
CELEBRATE failure. Richard Farson (Whoever
Makes the Most Mistakes Wins)
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WTTMTAMTMMW
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WHOEVER TRIES THE MOST THINGS AND
MAKES THE MOST MISTAKES WINS
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Tempo/ Temperament
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If things seem under control, youre just not
going fast enough. Mario Andretti, race
driver Im not comfortable unless Im
uncomfortable. Jay Chiat If it works, its
obsolete. Marshall McLuhan
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We eat change for breakfast. Harry
Quadracci, founder, QuadGraphics
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WTTMTAMTMMTFW
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WHOEVER TRIES THE MOST THINGS AND
MAKES THE MOST MISTAKES THE FASTEST WINS
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In Silicon Valley, start-ups are built for
speed. There might be a group of six or eight
peoplesay, two from the United States, two from
India, one from China, one from Russiaand they
can decide in six hours to set up a programming
game development center in India. Tomoko Namba,
former McKinsey partner and founder and CEO,
DeNA, What Japan Can Learn From Silicon Valley
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Antifragile Things That GAIN From Disorder
Nassim Nicholas TalebNot to be confused with
RESILIENCE
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WE ARE THE COMPANY WE KEEP
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Diversity IT IS HARDLY POSSIBLE TO OVERRATE THE
VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH
PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES
OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH
THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS
BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE
OF THE PRIMARY SOURCES OF PROGRESS. John Stuart
Mill
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You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
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The We are what we eat axiom At its core,
every (!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
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CEO A.G. Lafley has shifted PGs focus on
inventing all its own products to developing
OTHERS INVENTIONS AT LEAST HALF THE TIME. One
successful example, Mr. Clean Magic Eraser,
based on a product found in an Osaka market.
Fortune
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DONT BENCHMARK, FUTURE MARK! DONT
BENCHMARK, OTHER MARK! Impetus The
future is already here its just not evenly
distributed William Gibson
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WE ARE THE COMPANY WE KEEP! MANAGE IT!
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The Bottleneck is at the 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
Top of the Bottle. Gary Hamel/Harvard
Business Review
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At Nissan, 30 percent of the corporate
officers are foreigners, chiefly British, French,
and American. We are happy to show that diversity
can work in Japan. Just because a company has
more foreigners at the top doesnt mean it has
lost its identity as a Japanese company At
the most basic level, diversity in Japan means
having more women in the workforce. The country
needs more active people and the most obvious
resource is women. I dont think Japan has a
choice here. Carlos Ghosn, CEO,
Renault-Nissan Alliance, How to Drive Change
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THE WHOLE WIDE WORLD AS INNOVATION PARTNER
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The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline,
Financial Times
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Rob McEwen/CEO/Goldcorp Inc./Red Lake
GOLDSource Wikinomics How Mass Collaboration
Changes Everything, Don Tapscott Anthony
Williams
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THE CREATIVITY IMPERATIVE (ORGANIZATIONS/NATIONS)

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Human creativity is the ultimate economic
resource. Richard Florida Every child is
born an artist. The trick is to remain an
artist. Picasso "Creativity can no longer be
treated as an elective. John Maeda
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CORPORATE MANDATE 1 2014 Your principal moral
obligation as a leader is to develop the
skillset, soft and hard, of every one of the
people in your charge (temporary as well as
semi-permanent) to the maximum extent of your
abilities. The good news This is also the 1
mid- to long-term profit maximization
strategy!
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3 Provide a pride- worthy job. 2 Help
people be successful at their current
job. 1 Help people grow/ prepare for an
uncertain future. Provide a secure
job.NOT POSSIBLE IN 2014. Societyand
profitabilitydemands this. (Or should!)
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The role of the Director is to create a space
where the actors and actresses can become more
than theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance speech
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THE CREATIVITY IMPERATIVE (INDIVIDUALS)
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Muhammad Yunus ALL HUMAN BEINGS ARE
ENTREPRENEURS. When we were in the caves we were
all self-employed, finding our food, feeding
ourselves. Thats where human history began . . .
As civilization came we suppressed it. We became
labor because they stamped us, You are labor.
We forgot that we are entrepreneurs. Source
The News Hour/PBS/1122.2006
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Carpenters bend wood fletchers bend arrows
wise men fashion themselves. Buddha
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A professional Committed to
her/his discipline.Committed to constant
growthCommitted to uniform project
excellenceCommitted to ones community of
peersCommitted to integrity in his/her work
and relationshipsSource Subroto Bagchi, The
Professional Defining the New Standard of
Excellence at Work
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The average age of a startup founder is 40. And
high-growth startups are nearly twice as likely
to be launched by people over 55 as by people
20-34. Vivek Wadhwa, Kauffman foundation
(Time/0325.13)
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THIS WILL BE THE WOMANS CENTURY
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I speak to you with a feminine voice. Its the
voice of democracy, of equality. I am certain,
ladies and gentlemen, that this will be the
womans century. In the Portuguese language,
words such as life, soul, and hope are of the
feminine gender, as are other words like courage
and sincerity. President Dilma Rousseff of
Brazil, 1st woman to keynote the United Nations
General Assembly (2011)
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Research suggests that to succeed, start by
promoting women. Nicholas Kristof, Twitter,
Women, and Power, NYTimes In my experience,
women make much better executives than men.
Kip Tindell, CEO, Container Store
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McKinsey Company found that the
international companies with more women on their
corporate boards far outperformed the average
company in return on equity and other measures.
Operating profit was 56 higher.
Nicholas Kristof, Twitter, Women, and Power,
NYTimes, 1024.13
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Power Women 100/Forbes 10.25.1026 female CEOs
of Public CompaniesVs. Men/Market 28
(Post-appointment)Vs. Industry 15
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Forget CHINA, INDIA and the INTERNET Economic
Growth Is Driven by WOMEN. Source Headline,
Economist
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The growth and success of women-owned businesses
is one of the most profound changes taking place
in the business world today. Margaret
Heffernan, How She Does It
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Innovate or Die Measure It!
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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? (At least 3???)
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Innovate or Perish Extreme Times Demand
Extreme Solutions.
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
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We are crazy. We should do something when
people say it is crazy. If people say something
is good, it means someone else is already doing
it. Hajime Mitarai, CEO, Canon
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INSANELY GREATSTEVE JOBSRADICALLY
THRILLING BMWASTONISH ME SERGEI DIAGHLEV,
TO A LEAD DANCERBUILD SOMETHING GREAT
HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME
DESIGNER MAKE IT IMMORTAL DAVID OGILVY, TO
A COPYWRITER.
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EXCELLENCE 1982 People First. Product First
(1T). Limit MBA-ism.EXCELLENCE 2014
Innovate or Perish. If its not broken, break
it. People First (new definition).
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