Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeMoscow/16February2004
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Slides at tompeters.com
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I. NEW BUSINESS. NEW CONTEXT.
4
All Bets Are Off.
5
Jobs TechnologyGlobalization War, Warfighting
Security
6
Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
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Jobs New TechnologyGlobalization War,
Warfighting Security
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14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
9
One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/08.18.03
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The proper role of a healthily functioning
economy is to destroy jobs and to put labor to
use elsewhere. Despite this truth, layoffs and
firings will always sting, as if the invisible
hand of free enterprise has slapped workers in
the face. Joseph Schumpeter
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.08.2004
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In Store International Equality, Intranational
InequalityThe new organization of society
implied by the triumph of individual autonomy and
the true equalization of opportunity based upon
merit will lead to very great rewards for merit
and great individual autonomy. This will leave
individuals far more responsible for themselves
than they have been accustomed to being during
the industrial period. It will also reduce the
unearned advantage in living standards that has
been enjoyed by residents of advanced industrial
societies throughout the 20th century.James
Davidson William Rees-Mogg,The Sovereign
Individual
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WHAT ARE PEOPLE GOING TO DO WITH THEMSELVES?
Headline/ Fortune/ 11.03 (We should finally
admit that we do not and cannot know, and regard
that fact with serenity rather than anxiety.)
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Jobs TechnologyGlobalization War, Warfighting
Security
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lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 10 years
for paradigm shift 21st century 1000X tech
change than 20th century (the Singularity, a
merger between humans and computers that is so
rapid and profound it represents a rupture in the
fabric of human history)Ray Kurzweil
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In 25 years, youll probably be able to get the
sum total of all human knowledge on a personal
device.Greg Blonder, VC was Chief Technical
Adviser for Corporate Strategy _at_ ATT Barrons
11.13.2000
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A California biotechnology company has put the
entire sequence of the human genome on a single
chip, allowing researchers to conduct on the
complex relationships between the 30,000 genes
that make up a human being in a single
experiment. Page 1, Financial Times/10.03.2003
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Jobs TechnologyGlobalization War, Warfighting
Security
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The world has arrived at a rare strategic
inflection point where nearly half its
populationliving in China, India and Russiahave
been integrated into the global market economy,
many of them highly educated workers, who can do
just about any job in the world. Were talking
about three billion people. Craig
Barrett/Intel/01.08.2004
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Asias rise is the economic event of our age.
Should it proceed as it has over the last few
decades, it will bring the two centuries of
global domination by Europe and, subsequently,
its giant North American offshoot to an end.
Financial Times (09.22.2003)
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China Roars!
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The World Must Learn to Live with a Wide-awake
China Headline/FT/11.03
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China has become a manufacturing hub for the
rest of the world in low-end labor-intensive
goodsand the rest of the world is becoming a
manufacturing hub for China in high-end,
capital-intensive goods. China may be a threat
to certain parts of the global supply chain that
rely on low-cost labor, but it represents an even
greater opportunity via production-efficiency
gains, economic welfare gains and long-term
dynamic potential. Its booming exports are more
than matched by booming industrial imports and
foreign investment opportunities. It has become
the new engine of global growth.Source Glen
Hodgson Mark Worrall/Export Development Canada,
in China Takes Off, David Hale Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
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1990-2003 Exports 8X (380B) 6 global exports
2003 vs. 3.9 2000 16 of Total Global Growth in
2002.Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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50 of output from private firms, 37 from
state-owned firms 80 of workforce (incl. rural)
now in private employ.Source China Takes
Off, David Hale Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
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200 cities with gt1,000,000 population.Source
China Takes Off, David Hale Lyric Hughes
Hale/Foreign Affairs/Nov-Dec2003
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2003 China-Hong Kong leading producer in 8 of 12
key consumer electronic product areas (gt50
DVDs, digital cameras gt33.33 DVD-ROM drives,
personal desktop and notebook computers gt25
mobile phones, color TVs, PDAs, car
stereos).Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
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World economic output U.S.A., 21 EU, 16
China, 13 (2X since1991)Source New York
Times/12.14.2003
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Jobs TechnologyGlobalization War, Warfighting
Security
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The Breaking of Nations Order and Chaos in the
Twenty-first CenturyRobert Cooper (as
interpreted by Tom Peters)
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This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
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The new century risks being overrun by both
anarchy and technology. The two great destroyers
of history may reinforce each other. Both the
spread of terrorism and weapons of mass
destruction point to a world in which Western
governments are losing control. The spread of the
technology of mass destruction represents a
potentially massive redistribution of power away
from the advanced industrial (and democratic)
states and toward smaller states that may be less
stable and have less of a stake in an orderly
world or more dramatically still, it may
represent a redistribution of power away from the
state itself and towards individuals, that is to
say terrorists or criminals. In the past to be
damaging, an ideological movement had to be
widespread to recruit enough support to take on
authority. Henceforth, comparatively small groups
will be able to do the sort of damage which
before only state armies or major revolutionary
movements could achieve. A few fanatics with a
dirty bomb or biological weapons will be able
to cause death on a scale not previously
envisaged. Emancipation, diversity, global
communicationall of the things that promise an
age of riches and creativitycould also bring a
nightmare in which states lose control of the
means of violence and people lose control of
their futures.Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
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Before we can talk about the security
requirements for today and tomorrow, we have to
forget the security rules of yesterday. Robert
Cooper, The Breaking of Nations Order and Chaos
in the Twenty-first Century
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IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY
BEGAN ON SEPTEMBER 11, 2001. Al-Qaeda
represents a new and profoundly dangerous kind of
organizationone that might be called a virtual
state. On September 11 a virtual state proved
that modern societies are vulnerable as never
before.Time/09.09.2002
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From Weapon v. Weapon To
Org structure v. Org structure
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Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
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The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organizational
Limits.
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The mechanical speed of combat vehicles has not
increased since Rommels day, so the difference
is all in the operational speed, faster
communications and faster decisions. Edward
Luttwak, on the unprecedented pace of the move
toward Baghdad
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Erics ArmyFlat.Fast.Agil
e.Adaptable.Light But Lethal.Talent/ I Am
an Army of One.Info-intense.Network-centric.
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We are in a brawl with no rules.Paul Allaire
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S.A.V.
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Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the Bullshit that Marks Normal
Industry Behavior.5. A Maniacal Bias for
Execution and Utter Contempt for Those Who
Dont Get It.6. Speed Demons.7. Up or Out.
(Meritocracy Is Thy Name. Sycophancy Is Thy
Scourge.)8. Passionate Hatred of Bureaucracy.9.
Willingness to Lead the Customer and Take the
Heat Associated Therewith. (Mantra Satan
Invented Focus Groups to Derail True
Believers.)10. Reward Excellent Failures.
Punish Mediocre Successes. 11. Courage to Stand
Alone on Ones Record of Accomplishment
Against All the Forces of Conventional
Wisdom.12. A Crystal Clear Understanding of
Brand Power.
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It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public. from the Foreword,
Re-imagine
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How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control? Or evolution
and learning? Do we think that progress
requires a central blueprint? Or do we see it as
a decentralized, evolutionary process? Do we
see mistakes as permanent disasters? Or the
correctable byproducts of experimentation? Do
we crave predictability? Or relish surprise?
These two poles, stasis and dynamism,
increasingly define our political, intellectual
and cultural landscape. Virginia Postrel, The
Future and Its Enemies
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2. The Destruction Imperative.
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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C.E.O. to C.D.O.
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Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
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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 underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 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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Far from being a source of comfort, bigness
became a code for inflexibility. John
Micklethwait Adrian Wooldridge, The Company
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Good management was the most powerful reason
leading firms failed to stay atop their
industries. Precisely because these firms
listened to their customers, invested
aggressively in technologies that would provide
their customers more and better products of the
sort they wanted, and because they carefully
studied market trends and systematically
allocated investment capital to innovations that
promised the best returns, they lost their
positions of leadership.Clayton Christensen,
The Innovators Dilemma
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ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
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Conglomerates dont work. James Surowiecki,
The New Yorker (07.01,2002)
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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Change the rules before somebody else does.
Ralph Seferian, VP, Oracle
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Most of our predictions are based on very linear
thinking. Thats why they will most likely be
wrong.Vinod Khosla, in GIGATRENDS, Wired
04.01
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The secret of fast progress is inefficiency
fast and furious and numerous failures. Kevin
Kelly
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Japans Science Gap Rice farming culture
uniqueness suppressed. Govt control of R D.
Promotion based on seniority. Consensus vs.
debate. (U.S. friends can be mortal enemies.)
Bias for C.I. vs. bold leaps. Lack of
competition and critical evaluation (peer
review). Syukuro Manabe What we need to create
is job insecurity rather than security to make
people compete more.Hideki Shirakawa, Nobel
laureate, chemistry
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December 2000 Swiss House for Advanced Research
Education. Cambridge, Massachusetts. Xavier
Comtesse You never hear a Swiss say, I want to
change the world. We need to take more risks.
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II. NEW BUSINESS. NEW TECH.
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3. IS/ IT/ WebOn the Bus or Off the Bus.
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100 square feet
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Dawn Meyerreicks, CTO of the Defense Information
Systems Agency, made one of the most fateful
military calls of the 21st century. After 9/11
her office quickly leased all the available
transponders covering Central Asia. The
implications should change everything about U.S.
military thinking in the years ahead. The U.S.
Air Force had kicked off its fight against the
Taliban with an ineffective bombing campaign, and
Washington was anguishing over whether to send in
a few Army divisions. Donald Rumsfeld told Gen.
Tommy Franks to give the initiative to 250
Special Forces already on the ground. They used
satellite phones, Predator surveillance drones,
and GPS- and laser-based targeting systems to
make the air strikes brutally effective.In
effect, they Napsterized the battlefield by
cutting out the middlemen (much of the militarys
command and control) and working directly with
the real players. The data came in so fast that
HQ revised operating procedures to allow
intelligence analysts and attack planners to work
directly together. Their favorite tool,
incidentally, was instant messaging over a secure
network.Ned Desmond/Broadbands New Killer
App/Business 2.0/ OCT2002
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The Real News X1,000,000TowTruckNet.com
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eRevolution40,000,000 Americans (1 of 2
singles/40 of American adults) went to an online
matchmaking site last month (USNWR/09.29.03)
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flash mobs (!)
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MIT Everywhere EVERY LECTURE, EVERY LECTURE,
EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL
GEEKS GETTING AN MIT EDUCATION, OPEN
SOURCE-STYLE. Headline/Wired/09.03
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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The Web enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, employee, patient or
citizen is dead.Kjell Nordström and Jonas
Ridderstråle, Funky Business
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
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4. The White Collar Revolution.
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108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
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Steel 75,000,000 tons in 82 to 102,000,000 tons
in 02. 289, 000 steelworkers in 82 to 74,000
steelworkers in 02. Source Fortune/11.24.03
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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III. NEW BUSINESS. NEW VALUE PROPOSITION.
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5. The PSF SolutionThe Professional Service
Firm Model.
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Every job done in W.C.W. is also done outside
for profit!
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Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
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DD21M
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6. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
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Base Case The Sameness Trap
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
85
The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices and similar quality.Kjell Nordström
and Jonas Ridderstråle, Funky Business
86
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
87
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
88
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
89
Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
90
Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them?Bob Nardelli, GE Power Systems
91
Keep In Mind Customer Satisfaction versus
Customer Success
92
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves
represent.ecompany.com/06.01 (E.g., UPS
Logistics manages the logistics of 4.5M Ford
vehicles, from 21 mfg. sites to 6,000 NA dealers)
93
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes, upon naming UPS Company of the
Year in Y2000
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And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
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IV. NEW BUSINESS. NEW BRAND.
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7. A World of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
99
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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The Experience LadderExperiences
ServicesGoods Raw Materials
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Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
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8. The Mostly Ignored Soul of Experiences
Design Rules!
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And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
104
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
105
Design is treated like a religion at
BMW.Fortune
106
We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation.Steve Jobs
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Design is WHAT WHY I LOVE. LOVE.
108
Design is WHY I GET MAD. MAD.
109
Design is never neutral.
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Hypothesis DESIGN is the principal difference
between love and hate!
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9. It all adds up to THE BRAND.
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The Heart of Branding
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WHO ARE WE?
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WHATS OUR STORY?
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We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
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EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
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A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
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EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
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Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be insanely True
to the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
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V. NEW BUSINESS. NEW MARKETS.
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10. Trends Worth Trillion Women Roar.
122
?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 Cars
68 (90)All consumer purchases 83 Bank
Account 89Household investment decisions
67Small business loans 70Health Care 80
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91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
124
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
125
FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply
wants the transaction to take place. Shes
interested in creating a relationship. Every
place women go, they make connections.
126
Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
127
Resting State 30, 90 A woman knows her
childrens friends, hopes, dreams, romances,
secret fears, what they are thinking, how they
are feeling. Men are vaguely aware of some short
people also living in the house.Barbara
Allan Pease, Why Men Dont Listen Women Cant
Read Maps
128
As a hunter, a man needed vision that would
allow him to zero in on targets in the distance
whereas a woman needed eyes to allow a wide arc
of vision so that she could monitor any predators
sneaking up on the nest. This is why modern men
can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards
or drawers.Barbara Allan Pease, Why Men
Dont Listen Women Cant Read Maps
129
Female hearing advantage contributes
significantly to what is called womens
intuition and is one of the reasons why a woman
can read between the lines of what people say.
Men, however, shouldnt despair. They are
excellent at imitating animal sounds.Barbara
Allan Pease, Why Men Dont Listen Women Cant
Read Maps
130
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
131
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
132
The Connection Proclivity in women starts
early. When asked, How was school today? a girl
usually tells her mother every detail of what
happened, while a boy might grunt, Fine.
EVEolution
133
Women dont buy brands. They join
them.EVEolution
134
2.6 vs. 21
135
Customer is King 4,440Customer is Queen
29Source Steve Farber/Google search/04.2002
136
1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
137
VI. NEW BUSINESS. NEW WORK.
138
11. Toward Work that Matters The WOW Project.
139
Lets make a dent in the universe.
Steve Jobs
140
Your Current Project?1. Another
days work/Pays the rent.4. Of value.7.
Pretty Damn Cool/Definitely subversive.10.
WE AIM TO CHANGE THE WORLD.
(Insane!/Insanely Great!/WOW!)
141
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
142
VII. NEW BUSINESS. NEW YOU.
143
12. Re-inventing the Individual Welcome to a
Brand You World
144
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
145
In Store International Equality, Intranational
InequalityThe new organization of society
implied by the triumph of individual autonomy and
the true equalization of opportunity based upon
merit will lead to very great rewards for merit
and great individual autonomy. This will leave
individuals far more responsible for themselves
than they have been accustomed to being during
the industrial period. It will also reduce the
unearned advantage in living standards that has
been enjoyed by residents of advanced industrial
societies throughout the 20th century.James
Davidson William Rees-Mogg,The Sovereign
Individual
146
The Creative Class derives its identity from its
members roles as purveyors of creativity.
Because creativity is the driving force of
economic growth, in terms of influence the
Creative Class has become the dominant class in
society. Richard Florida, The Rise of the
Creative Class (38M, 30)
147
If there is nothing very special about your
work, no matter how hard you apply yourself, you
wont get noticed, and that increasingly means
you wont get paid much either.Michael
Goldhaber, Wired
148
Self-reliance never comes naturally to adults
because they have been so conditioned to think
non-authentically that it feels wrenching to do
otherwise. Self Reliance is a last resort to
which a person is driven in desperation only when
he or she realizes that imitation is suicide,
that he must take himself for better, for worse,
as his portion. Lawrence Buell, Emerson
149
My ancestors were printers in Amsterdam from
1510 or so until 1750, and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
150
Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
151
R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
152
Invent. Reinvent. Repeat.Source HP banner ad
153
Personal Brand Equity Evaluation

• I am known for 2 to 3 things next year at this
  time Ill also be known for 1 more thing.
• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• Additions to my Rolodex in the last 90 days
  include
• My resume is discernibly different from last
  years at this time

154
The Rule of PositioningIf you cant describe
your position in eight words or less, you dont
have a position. Jay Levinson and Seth
Godin, Get What You Deserve!
155
You are the storyteller of your own life, and
you can create your own legend or not.Isabel
Allende
156
13. Boss Job One The Talent Obsession.
157
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
158
Historically, smart people have always turned to
where the money was. Today, money is turning to
where the smart people are. FT/06.03.03
159
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
160
Brand Talent.
161
The Talent Ten
162
1. ObsessionP.O.T. All ConsumingPursuit
of Talent
163
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
164
In most companies, the Talent Review Process is
a farce. At GE, Jack Welch and his two top HR
people visit each division for a day. They review
the top 20 to 50 people by name. They talk about
Talent Pool strengthening issues. The Talent
Review Process is a contact sport at GE it has
the intensity and the importance of the budget
process at most companies.Ed Michaels
165
2. GreatnessOnly The Best!
166
From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent
167
3. PerformanceUp or out!
168
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
169
4. PayPay Up!
170
Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
171
5. Youth Grovel Before the Young!
172
Why focus on these late teens and
twenty-somethings? Because they are the first
young who are both in a position to change the
world, and are actually doing so. For the first
time in history, children are more comfortable,
knowledgeable and literate than their parents
about an innovation central to society. The
Internet has triggered the first industrial
revolution in history to be led by the
young.The Economist 12/2000
173
6. DiversityMess Rules!
174
CM Prof Richard Florida on Creative Capital
You cannot get a technologically innovative
place unless its open to weirdness, eccentricity
and difference.Source New York
Times/06.01.2002
175
7. WomenBorn to Lead!
176
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
177
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.Source Judy B. Rosener, Americas
Competitive Secret Women Managers
178
8. WeirdThe Cracked Ones Let in the Light!
179
The Cracked Ones Let in the LightOur business
needs a massive transfusion of talent, and
talent, I believe, is most likely to be found
among non-conformists, dissenters and
rebels.David Ogilvy
180
9. OpportunityMake It an Adventure!
181
H.R. to H.E.D. ???Human
Enablement Department
182
Talent Department
183
People DepartmentCenter for Talent
ExcellenceSeriously Cool People Who Recruit
Develop Seriously Cool PeopleEtc.
184
10. Leading GeniusWe are all unique!
185
Beware Lurking HR Types One size NEVER fits
all. One size fits one. Period.
186
Brand Talent.
187
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
188
14. Brand Talent Addressing the Education
Fiasco.
189
My education was a prolonged and concerted
attack on my individuality. Neil Crofts,
Authentic
190
Losing the War to Bismarck (and Rockefeller)
191
J. D. Rockefellers General Education Board
(1906) In our dreams people yield themselves
with perfect docility to our molding hands. The
task is simple. We will organize children and
teach them in a perfect way the things their
fathers and mothers are doing in an imperfect
way.John Taylor Gatto, A Different Kind of
Teacher
192
My wife and I went to a kindergarten
parent-teacher conference and were informed that
our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in
art. We were shocked. How could any childlet
alone our childreceive a poor grade in art at
such a young age? His teacher informed us that he
had refused to color within the lines, which was
a state requirement for demonstrating
grade-level motor skills. Jordan Ayan, AHA!
193
How many artists are there in the room? Would
you please raise your hands. FIRST GRADE En
masse the children leapt from their seats, arms
waving. Every child was an artist. SECOND GRADE
About half the kids raised their hands, shoulder
high, no higher. The hands were still. THIRD
GRADE At best, 10 kids out of 30 would raise a
hand, tentatively, self-consciously. By the time
I reached SIXTH GRADE, no more than one or two
kids raised their hands, and then ever so
slightly, betraying a fear of being identified by
the group as a closet artist. The point is
Every school I visited was participating in the
suppression of creative genius.Gordon
MacKenzie, Orbiting the Giant Hairball A
Corporate Fools Guide to Surviving with Grace
194
Ye gads Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, hes actually found
a negative correlation. It seems that
school-related evaluations are poor predictors of
economic success, Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most schools
penalized risk takers. Most educational systems
reward those who play it safe. As a result, those
who do well in school find it hard to take risks
later on.Richard Farson Ralph Keyes, Whoever
Makes the Most Mistakes Wins
195
VIII. NEW BUSINESS (NEW) BRAND INSIDE RULES
196
Brand Inside Rules!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?
197
Brand Inside Rules!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. Lou Gerstner, Who Says Elephants Cant
Dance?
198
15. THINK WEIRD the HVA/ High Value Added
Bedrock.
199
Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
200
CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
201
If you worship at the throne of the voice of
the customer, youll get only incremental
advances.Joseph Morone, President, Bentley
College
202
Generally, disruptive technologies underperform
established established products in mainstream
markets. But they have other features that a few
fringe (and generally new) customers
value.Clayton Christensen, The Innovators
Dilemma
203
Ways to Raise a Purple CowThink small. One
vestige of the TV-industrial complex is a need to
think mass. If it doesnt appeal to everyone, the
thinking goes, its not worth it. Think of the
smallest conceivable marketand describe a
product that overwhelms it with remarkability. Go
from there.Source Seth Godin, Fast Company
(02.2003)
204
HAVE MBAs KILLED OFF MARKETING? Prof Rajeev
Batra says What these times call for is more
creative and breakthrough reengineering of
product and service benefits, but we dont train
people to think like that. The way marketing is
taught across business schools is far too
analytical and data-driven. Weve taken away the
emphasis on creativity and big ideas that
characterize real marketing breakthroughs. In
India there is an added problem most senior
marketing jobs have been traditionally dominated
by MBAs. Santosh Desai, vice president, McCann
Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like
approach, tend to reduce marketing into neat
components. This reductionist thinking runs
counter to the idea that great brands must have a
core, unifying idea. Businessworld/04Nov2002/W
hy Is Marketing Not Working?
205
The Fatal Assumption Analysis Produces
SynthesisPlanning by its very nature defines
and preserves categories. Creativity, by its very
nature, creates categories or rearranges
established ones. ... The key is integration
rather than de-composition, based on holistic
images rather than linear words. Henry
Mintzberg, The Rise and Fall of Strategic Planning
206
COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid of
is some ignorant antagonist who has never had a
sword in his hand before he doesnt do the thing
he ought to do, and so the expert isnt prepared
for him he does the thing he ought not to do and
often it catches the expert out and ends him on
the spot. Mark Twain
207
To grow, companies need to break out of a
vicious cycle of competitive benchmarking,
imitation and pursuit. W. Chan Kim Renee
Mauborgne, Think for Yourself Stop Copying a
Rival, Financial Times/08.11.03
208
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
209
This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Gameboy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to follow
the leader is this The leader is the leader
precisely because he did something remarkable.
And that remarkable thing is now takenso its no
longer remarkable when you decide to do it.
Seth Godin, Fast Company/02.2003
210
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
211
Boards Extremely contentious boards that regard
dissent as an obligation and that treat no
subject as undiscussable Jeffrey Sonnenfeld,
Yale School of Management
212
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, Strategy or Revolution/ Harvard
Business Review
213
Enormous sums of money are invested to reduce
cycle time, improve quality, reengineer Much of
this money is simply wasted. The waste is due to
companies inability to develop wide-angle vision
and tap into the power of the edge.Wayne
Burkan, Wide Angle Vision Beat the Competition
by Focusing on Fringe Competitors, Lost
Customers, and Rogue Employees
214
WEIRD IDEAS THAT WORK (1) Hire slow learners (of
the organizational code). (1.5) Hire people who
make you uncomfortable, even those you dislike.
(2) Hire people you (probably) dont need. (3)
Use job interviews to get ideas, not to screen
candidates. (4) Encourage people to ignore and
defy superiors and peers. (5) Find some happy
people and get them to fight. (6) Reward
success and failure, punish inaction. (7)
Decide to do something that will probably fail,
then convince yourself and everyone else that
success is certain. (8) Think of some
ridiculous, impractical things to do, then do
them. (9) Avoid, distract, and bore
customers, critics, and anyone who just wants to
talk about money. (10) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas That Work 11½ Ideas for
Promoting, Managing, and Sustaining Innovation
215
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!
216
Deviants, Inc. Deviance tells the story of
every mass market ever created. What starts out
weird and dangerous becomes Americas next big
corporate payday. So are you looking for the next
mass market idea? Its out there way out
there.Source Ryan Matthews Watts Wacker,
Fast Company (03.02)
217
Giant projects contain within them the almost
certain seeds of mediocrity. The very fact of
their size causes constant scrutiny and thence
political interference. Such oversight drains
the passion of the champions and risksto the
point of certaintyfatal dumbing down and
thence loss of the very distinction and
quirkiness sought in the first place.Exec,
Hollywood
218
Innovation Source No. 1 PPPs/Personally
Pissed-off PeopleBranson started Virgin
Atlantic because flying other airlines was so
dreadful. Fortune/05.13.2002And there is no
No. 2!
219
Bernie Goldhirsh Sailing his passion, but
sailing mags for yachtsmen only start Sail.
Sail a biz success, but biz mags for corporate
types only start Inc.
220
Big Idea/sV.C. GMPortfolioRoster
221
Innovation Index How many of your Top 5
Strategic Initiatives score 7 or higher (out of
10) on a Weirdness/Profundity Scale?
222
IX. NEW BUSINESS. NEW LEADERSHIP.
223
16. The Passion Imperative The Leadership50
224
The Basic Premise.
225
1. Leadership Is a Mutual Discovery Process.
226
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
227
I dont know.
228
Quests!
229
Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups become great only when
everyone in them, leaders and members alike, is
free to do his or her absolute best.The best
thing a leader can do for a Great Group is to
allow its members to discover their greatness.
230
The Leadership Types.
231
2. Great Leaders on Snorting Steeds Are Important
but Great Talent Developers (Type I Leadership)
are the Bedrock of Organizations that Perform
Over the Long Haul.
232
25/8/53
233
Whoops Jack didnt have a vision!
234
T.A. 3
235
3. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
236
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
237
4. Find the Businesspeople! (Type III
Leadership)
238
I.P.M. (Inspired Profit Mechanic)
239
5. All Organizations Need the Golden Leadership
Triangle.
240
The Golden Leadership Triangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic.
241
The Essential Tension Keeper of the
Flame of Creation (Brahma Creator)
Keeper of the Flame of Preservation (Vishnu
Preserver) Keeper of the Flame of
Destruction (Shiva Destroyer)
242
6. Leadership Mantra 1 IT ALL DEPENDS!
243
Renaissance Men are a snare, a myth, a delusion!
244
7. The Leader Is Rarely/Never the Best Performer.
245
The Leadership Dance.
246
8. Leaders SHOW UP!
247
The first and greatest imperative of command is
to be present in person. Those who impose risk
must be seen to share it. John Keegan, The Mask
of Command
248
Rudy!
249
9. Leaders LOVE the MESS!
250
Im not comfortable unless Im
uncomfortable.Jay Chiat
251
If things seem under control, youre just not
going fast enough.Mario Andretti
252
10. Leaders DO!
253
The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
254
We have a strategic plan. Its called doing
things. Herb Kelleher
255
11. Leaders Re-do.
256
If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
257
If it works, its obsolete. Marshall McLuhan
258
12. BUT Leaders Know When to Wait.
259
Tex Schramm The too hard box!
260
13. Leaders Are Optimists.
261
Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
262
Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
263
14. Leaders DELIVER!
264
Leaders dont want to win. Leaders need to
win.49
265
It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
266
15. BUT Leaders Are Realists/Leaders Win
Through LOGISTICS!
267
The Gus Imperative!
268
16. Leaders FOCUS!
269
To Dont List
270
Its T-H-R-E-E, Stupid!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
271
17. Leaders Set CLEAR DESIGN SPECS.
272
Danger S.I.O. (Strategic Initiative Overload)
273
JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(Throughout) TALENT JACK!
274
18. Leaders Send V-E-R-Y Clear Signals About
Design Specs!
275
Ridin with Roger What have you done to
DRAMATICALLY IMPROVE quality in the last 90 days?
276
If It Aint Broke Break It.
277
19. Leaders FORGET!/Leaders DESTROY!
278
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
279
Cortez!
280
20. BUT Leaders Have to Deliver, So They Worry
About Throwing the Baby Out with the Bathwater.

281
Damned If You Do, Damned If You Dont, Just
Plain Damned.Subtitle in the chapter, Own Up
to the Great Paradox Success Is the Product of
Deep Grooves/ Deep Grooves Destroy Adaptivity,
Liberation Management (1992)
282
21. Leaders HONOR THE USURPERS.
283
Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
284
22. Leaders Make Lotsa Mistakes and MAKE NO
BONES ABOUT IT!
285
Fail faster. Succeed sooner.David Kelley/IDEO
286
23. Leaders Make BIG MISTAKES!
287
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
288
Silicon Valley Success Failure?
SecretsPursuit of risk 4 of 20 in V.C.
portfolio go bust 6 lose money 6 do okay 3 do
well 1 hits the jackpotSource The Economist
289
Create.
290
24. Leaders Know that THERES MORE TO LIFE THAN
LINE EXTENSIONS. Leaders Love to CREATE NEW
MARKETS.
291
No one ever made it into the Business Hall of
Fame on a record of line extensions.
292
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

293
25. Leaders Make Their Mark / Leaders Do
Stuff That Matters
294
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
295
Legacy!
296
Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max DePree, Herman
Miller
297
CEO Assignment2002 (Bermuda) Please leap
forward to 2007, 2012, or 2022, and write a
business history of Bermuda. What will have been
said about your company during your tenure?
298
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?
299
26. Leaders Push Their Organizations W-a-y Up the
Value-added/ Intellectual Capital Chain
300
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting business!
301
27. Leaders LOVE the New Technology!
302
100 square feet
303
28. Needed? Type IV Leadership Technology
Dreamer-True Believer
304
The Golden Leadership Quadrangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic. (4) Technology
Dreamer-True Believer
305
Talent.
306
29. When It Comes to TALENT Leaders Always
Swing for the Fences!
307
Talents Rules1. Talent
25/8/53 2. Some people are better than other
people. Some people are a helluva lot better
than other people3. Think Roster4. Think
V.C.5. Talent Brand6. Talent is what
leaders do.
308
30. Leaders Dont Create Followers THEY CREATE
LEADERS!
309
I start with the premise that the function of
leadership is to produce more leaders, not more
followers.Ralph Nader
310
31. Leaders Win Followers Over
311
WHAT AN IDIOT Instead of employees being in the
drivers seat, now were in the drivers seat.
312
PJ Coaching is winning players over.
313
Passion.
314
32. Leaders Out Their PASSION!
315
G.H. Create a cause, not a business.
316
33. Leaders Know ENTHUSIASM BEGETS ENTHUSIASM!
317
BZ I am a Dispenser of Enthusiasm!
318
Until there is commitment there is hesitancy,
the chance to draw back. Concerning all acts of
initiative and creation, there is one elementary
truth, the ignorance of which kills countless
ideas and splendid plans that the moment one
definitely commits oneself, then providence moves
too. All sorts of things occur to help one that
would never otherwise have occurred. Whatever you
can do or dream you can, begin it. Boldness has
genius, power and magic in it. Begin it now!
Johann Wolfgang von Goethe
319
34. Leaders Are in a Hurry
320
The Urgency Factor LEADERS have a distorted
sense of time. (E.g. Rummy thinks he asked
months ago it was the day before yesterday.)
321
35. Leaders Focus on the SOFT STUFF!
322
Soft Is Hard- ISOE
323
Message Leadership is all about love! P