Tom Peters

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Tom Peters X25EXCELLENCE.
ALWAYS.Rompetrol/Annual Management
MeetingParis/02 December 2006In Search of
Excellence 1982-2007
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Slides at tompeters.comalso LONG
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EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
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EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
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Jims Group
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EX-CELL-ENCE. NOT .
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors significantly underperformed
the market just 2 (2), GE Kodak,
outperformed the market from 1917 to 1987.SP
500 from 1957 to 1997 74 members of the Class of
57 were alive in 97 12 (2.4) of 500
outperformed the market from 1957 to
1997.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
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Welcome to the Club of Shattered Dreams Of
Koreas Top 100 companies in 1955, only 7 were
still on the list in 2004. The 1997 crisis
destroyed half of Koreas 30 largest
conglomerates.Source KET Issue Report, Kim
Jong Nyun (14.05.2005)
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SP Stability Ratings
1985 2006Low Risk
41 13 Average Risk 24
14High Risk 35 73Likelihood
of stable long-term earnings growthSource
Fortune (2 October 2006)
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The last word There is no last word.
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Flat as a Pancake (Or Worse)WalMart Dell
Intel Home Depot Microsoft GE
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EXCELLENCE. STARTERS.BASICS.K.I.S.S.
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Why in the world did you go to Siberia?
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Raging Success P-SQUARED. C. E-CUBED.
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People.Product.Clients.Execution.Enthusiasm.E
xcellence.
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Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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The HayGroup Six1.
Accountability2. X-functional coordination3.
Execution/K.I.S.S.4. Talent management5.
Growth, Customers take priority6.
Self-management, Empathy, Teamwork
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EXCELLENCE. ASPIRATION.
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The Peters Principles Enthusiasm. Emotion.
Excellence. Energy. Excitement. Service. Growth.
Creativity. Imagination. Vitality. Joy.
Surprise. Independence. Spirit. Community.
Limitless human potential. Diversity. Profit.
Innovation. Design. Quality. Entrepreneurialism.
Wow.
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Business (at its excellent best) can be An
emotional, vital, audacious, innovative, joyful,
frightening, risky, creative, entrepreneurial
endeavor that breathes life fire into our work
life elicits maximum concerted human
potential in the wholehearted effort to help
others employees, clients, suppliers,
communities, owners, temporary partners succeed
profit imagine reach places theyd never
dreamed they could go.
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In-sane-ly-great
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EXCELLENCE. DEFINED.AGENDA. SETTER.
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Great Companies SET THE AGENDA. (PERIOD.)
disturb the sleep of
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TP1 Netscape!Where would you rather have
worked for those 5 years, Netscape or
IBM-HP-Microsoft-Oracle? (Where, 25 years from
now, would you rather to be able to tell
someonee.g., grandchildthat you worked?)
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Built to LastvsBuilt to Change/Rock the World
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EXCELLENCE. INNOVATE. OR. DIE.
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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EXCELLENCE. INNOVATE. ALL. WRONG.
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
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When asked to name just 1 big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are
success stories out there, but at this
moment I draw a blank. Mark Sirower, The
Synergy Trap
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Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
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Spinoffs systematically perform better than IPOs
track record, profits freed from the
confines of the parent more entrepreneurial,
more nimble Jerry Knight/ Washington Post/
08.05
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Private Equity-financed Firm, Best
CaseFocus! Focus! Focus!In a Big
hurryCEO/Top team, skin in the gameCEO,
100 of time on the bizMerit!
Merit!Motivated oversightWorst case Rape
Pillage
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Theres A and then theres A.
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EXCELLENCE. INNOVATE. TACTICS.
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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.
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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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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You miss 100 percent of the shots you never
take. Wayne Gretzky
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Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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tolerate encourage? failure
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Speed/ Tempo
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We dont sell insurance anymore. We sell
speed. Peter Lewis, Progressive
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We become who we spend time with!
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Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
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measure
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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 Profound/
Amazing/Game- changer Scale?
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EXCELLENCE.1966. 2006.
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4/40
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De-cent-ral-iz-a-tion!
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If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
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The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
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Ex-e-cu-tion!
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
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Projects Goal (Vision)Milestones
Project Rapid Review Truth-telling
accountability
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Ac-count-a-bil-ity!
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GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
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615A.M.
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4/40De-centralizationexecutionaccountability6
15a.m.
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The HayGroup Six1.
Accountability2. X-functional coordination3.
Execution/K.I.S.S.4. Talent management5.
Growth, Customers take priority6.
Self-management, Empathy, Teamwork
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EXCELLENCE. BEDROCK.TALENT.
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Hire very good people!
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.
Ed Michaels, War for Talent
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EMPHASIZE THE SOFT SKILLS.
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The person who is a little less conceptual but
is absolutely determined to succeed will usually
find the right people and get them together to
achieve objectives. Im not knocking education or
looking for dumb people. But if you have to
choose between someone with a staggering IQ and
an elite education whos gliding along, and
someone with a lower IQ but who is absolutely
determined to succeed, youll always do better
with the second person. Larry Bossidy (Larry
Bossidy Ram Charan/ Execution The Discipline
of Getting Things Done)
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PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
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A review of Jack and Suzy Welchs 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. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance i.e., its
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 HR on a par with finance and
marketing.
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SO YOURE A PEOPLE PERSON? PROVE IT.
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The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others. Warren Bennis Patricia Ward
Biederman, Organizing Genius
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SO YOURE A PEOPLE PERSON? PROVE IT.
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lt CAPEXgt People!
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LIVE FOR TALENT!
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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EXCELLENCE. BEDROCK.LEADERSHIP.9Ps.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
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Ah, kids What is your vision for the future?
What have you accomplished since your first
book? Close your eyes and imagine me
immediately doing something about what youve
just said. What would it be? Do you feel you
have an obligation to Make the world a better
place?
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Whenever anything is being accomplished, I have
learned, it is being done by a monomaniac with a
mission. Peter Drucker
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
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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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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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You must be the change you wish to see in the
world.Gandhi
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Relentless One of my superstitions had always
been when I started to go anywhere or to do
anything, not to turn back , or stop, until the
thing intended was accomplished. Grant
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It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
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"The reasonable man adapts himself to the world.
The unreasonable one persists in trying to adapt
the world to himself. Therefore, all progress
depends upon the unreasonable man. GB Shaw,
Man and Superman The Revolutionists'
Handbook.
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Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Leaders do people. Period. Anon.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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Kevin Roberts Credo1.
Ready. Fire! Aim.2. If it aint broke ... Break
it!3. Hire crazies.4. Ask dumb questions.5.
Pursue failure.6. Lead, follow ... or get out of
the way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. Avoid moderation!
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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On NELSON other admirals more frightened of
losing than anxious to win
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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Excellence can be obtained if you ... care
more than others think is wise ... risk more
than others think is safe ... dream more than
others think is practical ... expect
more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
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EXCELLE ALWAYS.
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EXCELLENCE. THE LEADERSHIP23.
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Leadership23/ML1.
Enthusiasm. Energy. Exuberance.2. Action.
Execution.3. Tempo. Metabolism.4.
Relentless.5. Master of Plan B.6.
Accountability.7. Meritocracy.8. Leaders do
people. Mentor. (Success creation
business.)9. Women. Diversity.10. Integrity.
Credibility. Humanity. Grace.11. Realism.12.
Cause. Adventures. Quests.
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Leadership23/ML13.
Legacy.14. Best story wins.15. On the edge.
(Wildest chimera of a moonstruck
mind.) 16. Reward excellent failures. Punish
mediocre successes.17. Different gt Better.
(Only ones who do what we do.)18. MBWA.
Customer MBWA.19. Laughs.20. Repot. Curiosity.
Why?21. You Calendar. To Dont. Two.22.
Excellence. Always. 23. Nelsonian! (Other
admirals more afraid of losing than anxious
to win.)
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Excellence can be obtained if you ... care
more than others think is wise ... risk more
than others think is safe ... dream more than
others think is practical ... expect
more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
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EXCELLE ALWAYS.