The Challenge: To Create More Value in All Negotiations

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Tom Peters Excellence. Always. Trinity
University Policy Maker Breakfast 20 March 2009
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NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
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It suddenly occurred to me
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It suddenly occurred to me that in the space of
two or three hours he never talked about cars.
Les Wexner            
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Message from a banker, circa 1988 Tom, let me
tell you the definition of a good lending
officer. After church on Sunday, on the way home
with his family, he takes a little detour to
drive by the factory he just lent money to.
Doesnt go in or any such thing, just drives by
and takes a look.
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Managers have lost dignity over the past decade
in the face of wide spread institutional
breakdown of trust and self-policing in business.
To regain societys trust, we believe that
business leaders must embrace a way of looking at
their role that goes beyond their responsibility
to the shareholders to include a civic and
personal commitment to their duty as
institutional custodians. In other words, it is
time hat management became a profession. Rakesh
Khurana Nitin Nohria, Its ime To Make
Management a True Profession, HBR/10.08
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Too Much Cost, Not Enough Value Too Much
Speculation, Not Enough Investment Too Much
Complexity, Not Enough Simplicity Too Much
Counting, Not Enough Trust Too Much Business
Conduct, Not Enough Professional Conduct Too
Much Salesmanship, Not Enough Stewardship Too
Much Focus on Things, Not Enough Focus on
Commitment Too Many Twenty-first Century
Values, Not Enough Eighteenth-Century Values
Too Much Success, Not Enough Character
chapter titles from John Bogle, Enough. The
Measures of Money, Business, and Life (Bogle is
founder of the Vanguard Mutual Fund Group)
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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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Data drawn from the real world attest to a fact
that is beyond our control Everything in
existence tends to deteriorate. Norberto
Odebrecht, Education Through Work
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4 Japan2T USA2T China
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4 Japan3 USA2 China1 Germany
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Reason!!!Mittelstand
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Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
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Basement Systems Inc.Larry JaneskyDry
Basement Science (115,000!)1990 0 2003
13M 2007 62,000,000
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The Unlucky ThirteenBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Plans!Success!Men!Young!
Incrementalism-KaizenMinimization!Uniformity!
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The Lucky ThirteenSMEs!Private companies!
Dull industries!Churn!laudable CEOs!Soft
stuff!Excellence!Action-Execution!Women!Boomer
s-Geezers!Imagination Unbound!Accentuate the
Positive!Individuality!
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Conrad Hilton, at a gala celebrating his career,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer
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remember to tuck the shower curtain inside the
bathtub
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Execution is strategy. Fred Malek
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MBWA
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CBVACommand By Visiting About/U.S.
Grant/circa 1865 (In these days of telegraph
and steam I can command while traveling and
visiting about.)
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1982
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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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Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
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Hard Is SoftSoft Is Hard
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Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
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The 7-S ModelStrategyStructureSystemsStyle
SkillsStaffSuper-ordinate goal
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The 7-S ModelHard Ss (Strategy,
Structure, Systems)Soft SS (Style, Skills,
Staff, Super-ordinate goal)
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The 7-S ModelStrategyStructureSystemsStyle
(Corporate Culture, The way we do
things around here)Skills (Distinctive
Competence/s)Staff (People-Talent)Super-ordinate
goal (Vision, Core Values)
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If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the gameit is the game. Lou Gerstner, Who
Says Elephants Cant Dance
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2007Siberia
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Why in the World did you go to Siberia?
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Enterprise (at its best) An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that elicits maximum
concerted human
potential in the wholehearted service of
others.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
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2007Sydney
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Organizations exist to serve. Period. Leaders
live to serve. Period.
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Leaders SERVE people. Period. inspired by
Robert Greenleaf
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no less than Cathedrals in which the full and
awesome power of the Imagination and Spirit and
native Entrepreneurial flair of diverse
individuals is unleashed in passionate pursuit of
Excellence.
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We are a Life Success Company.Dave Liniger,
founder, RE/MAX
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Managing winds up being the management of the
allocation of resources against tasks. Leadership
focuses on people. My definition of a leader is
someone who helps people succeed. Carol Bartz,
Yahoo!
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The Dream Manager Matthew KellyAn
organization can only become the-best-version-of-i
tself to the extent that the people who drive
that organization are striving to become
better-versions-of-themselves. A companys
purpose is to become the-best-version-of-itself.
The question is What is an employees purpose?
Most would say, to help the company achieve its
purposebut they would be wrong. That is
certainly part of the employees role, but an
employees primary purpose is to become
the-best-version-of-himself or herself. When a
company forgets that it exists to serve
customers, it quickly goes out of business. Our
employees are our first customers, and our most
important customers.
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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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No matter what the situation, the great
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
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The four most important words in any
organization are What do you think?
Source courtesy Dave Wheeler, posted at
tompeters.com, source of original unknown
(0609.08)
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The deepest human need is the need to be
appreciated.William James
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Buy in- Ownership-Authorial bragging
rights-Born again Champion One Line of Code!
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"Trust the development expertsall seven
billion of them. headline, Financial Times,
0529.08, to an article by development guru
William Easterly, commenting negatively on the
World Bank Growth Commissions recent report that
concludes, in effect, trust the World Bank
experts
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• It was much later that I realized Dads secret.
  He gained respect by giving it. He talked and
  listened to the fourth-grade kids in Spring
  Valley who shined shoes the same way he talked
  and listened to a bishop or a college president.
  He was seriously interested in who you were and
  what you had to say.
• Sara Lawrence-Lightfoot, Respect

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Dont belittle! OD Consultant
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You have to treat your employees like
customers. Herb Kelleher, complete answer, upon
being asked his secrets to success Source
Joe Nocera, NYT, Parting Words of an Airline
Pioneer, on the occasion of Herb Kellehers
retirement after 37 years at Southwest Airlines
(SWAs pilots union took out a full-page ad in
USA Today thanking HK for all he had done across
the way in Dallas American Airlines pilots were
picketing the Annual Meeting)
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The Customer Comes Second Hal Rosenbluth and
Diane McFerrin Peters (no relation)
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Business has to give people enriching, rewarding
lives, or it's simply not worth doing. Richard
Branson
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TP How to flush 500,000 down the toilet in
one easy lesson!!
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lt CAPEXgt People!
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Wegmans
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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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Brand Talent.
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Ben Changes His BHAG! Big Hairy Audacious
Goal/Collins
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Profitable
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We are thoughtful in all we do.
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Thoughtfulness is key to customer
retention. Thoughtfulness is key to employee
recruitment and satisfaction. Thoughtfulness
is key to brand perception. Thoughtfulness is key
to your ability to look in the mirrorand tell
your kids about your job. Thoughtfulness is
free. Thoughtfulness is key to speeding things
up it reduces friction. Thoughtfulness is key
to transparency and even cost containmentit
abets rather than stifles truth-telling.
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none!
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Press Ganey Assoc 139,380 former patients from
225 hospitalsnone of THE top 15 factors
determining Patient Satisfaction referred to
patients health outcomeP.S. directly related
to Staff InteractionP.P.S. directly correlated
with Employee Satisfaction Source Putting
Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel
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Kindness is free.
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Development can help great people be even
better but if I had a dollar to spend, Id spend
70 cents getting the right person in the door.
Paul Russell, Director, Leadership
Development, Google
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In short, hiring is the most important aspect
of business and yet remains woefully
misunderstood. Source Wall Street Journal,
10.29.08, review of Who The A Method for
Hiring, Geoff Smart and Randy Street
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1.Strategic.Priority.Period.
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1A
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1 cause ofDis-satisfaction?
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Employee retention satisfaction
Overwhelmingly, based on the first-line
manager!Source Marcus Buckingham Curt
Coffman, First, Break All the Rules What the
Worlds Greatest Managers Do Differently
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1B
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2/year legacy.
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Diverse groups of problem solversgroups of
people with diverse toolsconsistently
outperformed groups of the best and the
brightest. If I formed two groups, one random
(and therefore diverse) and one consisting of the
best individual performers, the first group
almost always did better. Diversity trumped
ability. Scott Page, The Difference How the
Power of Diversity Creates Better Groups, Firms,
Schools, and Societies Diversity
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The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline,
FT, 0110.07
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In Blackburn, four-year-olds are making
podcasts. In Suffolk, the sometimes tedious and
impractical ritual of morning Assembly has been
replaced in one school by a news video compiled
by pupils posting it on YouTube means parents
can watch as welland they do. Learners at all
stages and ages, from all over the world, are
downloading free tutorials while they replenish
their iPods, courtesy of iTunes U. Source
The Guardian, 0113.09, Resource 2009, a preview
of BETT 2009
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The Bottleneck Is at the Top of the
BottleWhere 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 At the top!
Gary Hamel/Harvard Business Review
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Normal o for 800
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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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Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
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One thing is certain Womens 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, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
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Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversity. Judy B. Rosener, Americas
Competitive Secret Women Managers
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Period??!!Start 3 0f 14 18 months later 10
of 18 (deep dip!)AIM/September 2007
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Women are the majority market Fara
Warner/The Power of the Purse
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Big bank CEO, summarizing to his top-management
team his notes from TPs presentation Toms
made a great point he let us know that our
customer base will be different and more diverse
in the future. Tom With all due respect,
thats not what Tom said. Though I am an
unabashed supporter of diversity in general,
what I said was She is your customerand has
been for a long time and will be forever. And
she is notably AWOL in this meeting room full
of senior leaders.
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Goldman Sachs in Tokyo has developed an index of
115 companies poised to benefit from womens
increased purchasing power over the past decade
the value of shares in Goldmans basket has risen
by 96, against the Tokyo stockmarkets rise of
13. Economist, April 15
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10 UNASSAILABLE REASONS WOMEN
RULE Women make all the financial
decisions.Women control all the wealth. Women
substantially outlive men. Women start most of
the new businesses. Womens work force
participation rates have soared
worldwide. Women are closing in on same pay for
same job. Women are penetrating senior
ranks rapidly even if the pace is slow for
the corner office per se. Womens
leadership strengths are exceptionally well
aligned with new organizational effectiveness
imperatives. Women are better salespersons than
men. Women buy almost everythingcommercial
as well as consumer goods. So what exactly is
the point of men?
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Cases! Cases! Cases!McDonalds
(mom-centered to majority consumer not via
kids)Home Depot (Do it everything!
Herself)PG (more than house cleaner)
DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of the
Purse
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10.6
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94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
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!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
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7/13
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We are the Aussies Kiwis Americans
Canadians. We are the Western Europeans
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the most
(yes) ambitious, the most experimental
exploratory, the most different, the most
indulgent, the most difficult demanding, the
most service experience obsessed, the most
vigorous, (the least vigorous,) the most health
conscious, the most female, the most
profoundly important commercial market in the
history of the worldand we will be the Center of
your universe for the next twenty-five years.
We have arrived!
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L(21) L(-21)

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Leadership(21A.D.) Leadership(21B.C.)

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Give good tea!
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In the same bitter winter of 1776 that Gen.
George Washington led his beleaguered troops
across the Delaware River to safety, Benjamin
Franklin sailed across the Atlantic to Paris to
engage in an equally crucial campaign, this one
diplomatic. A lot depended on the bespectacled
and decidedly unfashionable 70-year-old as he
entered the worlds fashion capitol sporting a
simple brown suit and a fur cap. Franklins
miracle was that armed only with his canny
personal charm and reputation as a scientist and
philosopher, he was able to cajole a wary French
government into lending the fledgling American
nation an enormous fortune. The enduring image
of Franklin in Paris tends to be that of a
flirtatious old man, too busy visiting the citys
fashionable salons to pursue affairs of state as
rigorously as John Adams. When Adams joined
Franklin in Paris in 1779, he was scandalized by
the late hours and French lifestyle his colleague
had adopted, says Stacy Schiff, in A Great
Improvisation Adams was clueless that it was
through the dropped hints and seemingly offhand
remarks at these salons that so much of French
diplomacy was conducted. Like the Beatles
arriving in America, Franklin aroused a
fervorhis face appeared on prints, teacups and
chamber pots. The extraordinary popularity served
Franklins diplomatic purposes splendidly. Not
even King Louis XVI could ignore the enthusiasm
that had won over both the nobility and the
bourgeoisie. Source In Paris, Taking the
Salons By Storm How the Canny Ben Franklin
Talked the French into Forming a Crucial
Alliance, U.S. News World Report, 0707.08
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eighty percent of success is showing up.
Woody Allen
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Allied commands depend on mutual confidence
and this confidence is gained, above all
through the development of friendships.
General D.D. Eisenhower, Armchair General
(05.08)Perhaps his most outstanding ability
at West Point was the ease with which he made
friends and earned the trust of fellow cadets who
came from widely varied backgrounds it was a
quality that would pay great dividends during
his future coalition command
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Ike An American Hero, Michael Korda/pp268-371
infectious grin and great charm nice face
grin that was to become so famous got
along famously goodwill was spontaneous and
easily recognizable good impression that Ike
had made in six weeks newcomer junior general
to supreme commander, Torch Marshall-ADM
King-Roosevelt-Churchill-British Chiefs of Staff
least rank-conscious of generals Men were
happy to serve under Ike, even British admirals
and generals who might easily have raised
objections. His sincerity and lack of ceremony
made it difficult, even impossible, to refuse
him, and enabled him very rapidly to pull a team
together Ike was gregarious, rarely had
anything bad to say about anyone, and, on the
surface at least, was relaxed and good natured.
Whereas Ikes good humor was genuine,
unaffected, and affectionate, Montys Field
Marshall Montgomery was cruel and mocking and
always carried a sting
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?We hire people who smileStarbucks manager
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Mandela, a model host in his prison hospital
room smiled grandly, put Justice Minister
Kobie Coetzee at his ease, and almost
immediately, to their quietly contained surprise,
prisoner and jailer found themselves chatting
amiably. It had mostly to do with body
language, with the impact Mandelas manner had on
people he met. First there was his erect posture.
Then there was the way he shook hands. The effect
was both regal and intimidating, were it not for
Mandelas warm gaze and his big, easy smile.
Coetzee was surprised by Mandelas willingness to
talk in Afrikaans, his knowledge of Afrikaans
history. Coetzee He was a born leader. And he
was affable. He was obviously well liked by the
hospital staff and yet he was respected even
though they knew he was a prisoner. Source
John Carlin, Playing the Enemy Nelson Mandela
and the Game that Made a Nation. (Mandela meets
surreptitiously with justice minister after
decades in prisonand turns on the charm.)
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Major Van Sittert, brute commanding officers,
immune to Mandelas charm He thought hard,
probing for weakness. And he found one. Sittert
was a rugby nut. So, Mandela, who had no special
interest in rugby the quintessential white mans
sport, set about zealously learning the game in
preparation for the majors monthly visit.
Christo Brand, guard Mandela was very polite as
usual. He greeted Sittert with a big smile, and
then immediately started talking rugby. Once
the major got over his amazement, he became very
animated, agreeing with Mandela on almost every
point he made. You could see all those doubts of
the major just melting away. Source John
Carlin, Playing the Enemy Nelson Mandela and
the Game that Made a Nation
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We behaved as if we were guests in their house.
We treated them not as a defeated people, but as
allies. Our success became their success. How
One Soldier Brought Democracy to Iraq The Mayor
of Ar Rutbah (MAJ James Gavrilis/USA Special
Forces)
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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I regard apologizing as the most magical,
healing, restorative gesture human beings can
make. It is the centerpiece of my work with
executives who want to get better. Marshall
Goldsmith, What Got You Here Wont Get You
There How Successful People Become Even More
Successfu.
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Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE.

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THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM. PERCEPTION IS ALL THERE IS!

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1 Truthteller
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You Your calendarCalendars never lie
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I used to have a rule for myself that at any
point in time I wanted to have in mind as it so
happens, also in writing, on a little card I
carried around with me the three big things I
was trying to get done. Three. Not two. Not
four. Not five.Not ten.Three. Richard
Haass, The Power to Persuade
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Dennis, you need a To-dont List !
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You must be the change you wish to see in the
world.Gandhi
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Do one thing every day that scares you.
Eleanor Roosevelt
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Skip the map
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Mapping your competitive position or
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The Have you 50
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1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?
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1/40
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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Screw it up. Try it. Try it. Try
it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it. Screw it up.
Try it. Try it. Try it.
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Dick n dan
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We have a strategic plan. Its called doing
things. Herb Kelleher
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This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
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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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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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Fail . Forward. Fast.High Tech CEO,
Pennsylvania
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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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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DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
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The 19 Es ofExcellence
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If Not Excellence, What? If Not Excellence Now,
When? The 19 Es of Excellence Enthusiasm. (Be
an irresistible force of nature!) Energy. (Be
fire! Light fires!) Exuberance. (Vibratecause
earthquakes!) Execution. (Do it! Now! Get it
done! Barriers are baloney! Excuses are for
wimps! Accountability is gospel!
Adhere to the Bill Parcells
doctrine Blame nobody! Expect nothing! Do
something!) Empowerment. (Respect and
appreciation! Always ask, What do you think?
Then
Listen! Liberate! Celebrate! 100 innovators or
bust!) Edginess. (Perpetually dancing at the
frontier, and a little or a lot beyond.) Enraged.
(Determined to challenge change the status
quo!) Engaged. (Addicted to MBWA/Managing By
Wandering Around. In touch. Always.) Electronic.
(Partners with the world 60/60/24/7 via
electronic community building
and entanglement of every sort.
Crowdsourcing/doing power!) Encompassing.
(Relentlessly pursue diverse opinionsthe more
diversity the merrier! Diversity per se
works!) Emotion. (The alpha. The omega. The
essence of leadership. The essence of sales.
The essence of marketing.
The essence. Period. Acknowledge it.) Empathy.
(Connect, connect, connect with others reality
and aspirations! Walk
in the other persons shoesuntil the soles
have holes!) Experience. (Life is theater! Make
every activity-contact memorable! Standard
Insanely
Great/Steve Jobs Radically Thrilling/BMW.) Eli
minate. (Keep it simple!) Errorprone. (Ready!
Fire! Aim! Try a lot of stuff and make a lot of
booboos and then try some more stuff
and make some more
booboosall of it at the speed of
light!) Evenhanded. (Straight as an arrow!
Fair to a fault! Honest as Abe!) Expectations.
(Michelangelo The greatest danger for most of
us is not that our aim is too high and we miss
it, but
that it is too low and we reach it.
Amen!) Eudaimonia. (Pursue the highest of human
moral purposethe core of Aristotles philosophy.
Be of service. Always.) Excellence. (The only
standard! Never an exception! Start now! No
excuses! If not Excellence, what?
If not Excellence now, when?)
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Mr. Watson, how long does it take to achieve
Excellence?
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1 minute
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Excellence. Always.