The Challenge: To Create More Value in All Negotiations

1
Welcome to Tom Peters
PowerPoint World! Beyond the set of slides
here, you will find at tompeters.com the last
eight years of presentations, a basketful of
Special Presentations, and, above all, Toms
constantly updated Master Presentationfrom which
most of the slides in this presentation are
drawn. There are about 3,500 slides in the 7-part
Master Presentation. The first five chapters
constitute the main argument Part I is context.
Part II is devoted entirely to innovationthe
sine qua non, as perhaps never before, of
survival. In earlier incarnations of the
master, innovation stuff was scattered
throughout the presentationnow it is front and
center and a stand-alone. Part III is a
variation on the innovation themebut it is
organized to examine the imperative (for most
everyone in the developed-emerging world) of an
ultra high value-added strategy. A value-added
ladder (the ladder configuration lifted with
gratitude from Joe Pine and Jim Gilmores
Experience Economy) lays out a specific logic for
necessarily leaving commodity-like goods and
services in the dust. Part IV argues that in
this age of micro-marketing there are two
macro-markets of astounding size that are
dramatically under-attended by all but a few
namely women and boomers-geezers. Part V
underpins the overall argument with the necessary
bedrockTalent, with brief consideration of
Education Healthcare. Part VI examines
Leadership for turbulent times from several
angles. Part VII is a collection of a dozen
Listssuch as Toms Irreducible 209, 209
things Ive learned along the way. Enjoy!
Download! Stealthats the whole point!
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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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Celebrating you!
4
Over-ratedBig companies! Cool
industries!Famous CEOs!
5
Over-ratedBig companies! Cool
industries!Famous CEOs!
6
Dick Kovacevich You dont get better by being
bigger. You get worse.
7
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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1 Exporter?
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4 Japan
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4 Japan2T China2T USA
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4 Japan2T china2t USA1 Germany
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Reason!!!Mittelstand
13
Over-ratedBig companies! Cool
industries!Famous CEOs!
14
Jims Group
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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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etc.PRSX/Paragon Railcar SalvageSalvaged
railcars into bridges, etc.
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Lived in same town all adult lifeFirst
generation wealthy/no parental supportDont
look like millionaires, dont dress like
millionaires, dont eat like millionaires,
dont act like millionairesMany of the types
of businesses they are in could be classified
as dull- normal. They are welding
contractors, auctioneers, scrap-metal dealers,
portable toilets, dry cleaners, re-builders
of diesel engines, paving contractors
Source The Millionaire Next Door, Thomas
Stanley William Danko
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Over-ratedBig companies! Cool
industries!Famous CEOs!
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Mission impossible?36B/98minus 675M/07
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Market capitalization lost per day, 1998-2007
10,000,000/Day
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Over-ratedBig companies! Cool
industries!Famous CEOs!
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Whats Left?SMEs! Real industries!Excellen
t CEOs!
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Tom Peters X25EXCELLENCE. ALWAYS.Mind
Consulting/Bologna09 November 2007In Search
of Excellence 1982-2007
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All you need to know
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25
26
a blinding flash of the obvious Manny Garcia
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All you need to know
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?
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A man without a smiling face must not open a
shop. Chinese Proverb
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This is itAll you need to know
31
TP How to flush 500,000 down the toilet in
one easy lesson!!
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lt CAPEXgt People!
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This is itAll you need to know
34
R.O.I.R.
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Return On Investment In Relationships
36
You can make more friends in two months by
becoming interested in other people than you can
in two years by trying to get other people
interested in you. Dale Carnegie
37
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
38
Happy Birthday!
39
The deepest human need is the need to be
appreciated.William James
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THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

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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 only thing you need to know
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Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub
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Hands On!People!Relationships!Sweat the small
stuff!
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Tom Peters X25EXCELLENCE. ALWAYS.Mind
Consulting/Bologna09 November 2007In Search
of Excellence 1982-2007
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1982.(NOVEMBER)A BOOK.
47
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
48
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
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EXCELLENCE. ASPIRATION.2006.
50
Why in the World did you go to Siberia?
51
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
52
2007.SEPTEMBER.SYDNEY.DRUCKER TRIBUTE.
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I have always believed that the purpose of the
corporation is to be a blessing to the
employees. Boyd Clarke TP An
organization is, in fact and after all is
said and done, a/the house in which most of us
live most of the time.
54
Organizations exist to serve. Period. Leaders
live to serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain
create/must necessarily create organizations
which are 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 jointly perceived soaring purpose and
personal and community and client service
Excellence.
55
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
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EXCELLENCE.the rules.
57
Cause (worthy of commitment)Space (room
for/encouragement
for initiative) Decency (respect,
humane)
58

• 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

59
Cause (worthy of commitment)Space (room
for/encouragement
for initiative-adventures) Decency
(respect, grace,
integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
60
Cause (worthy of commitment)Space (room
for/encouragement for initiative-adventures)
Decency (respect, grace, integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
servant leadership
61
Cause Space Decency serviceexcellence
servant leadership
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EXCELLENCE. one idea.1966-2007.
63
What makes God laugh?
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People making plans!
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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.
66
drill.
67
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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try things.
69
We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were already on prototype version 5. By the
time our rivals are ready with wires and screws,
we are on version 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by Bloomberg
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Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

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faIL. FAST.
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Fail . Forward. Fast.High Tech CEO,
Pennsylvania
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Natural selection is death. ... Without huge
amounts of death, organisms do not change over
time. ... Death is the mother of structure. ...
It took four billion years of death ... to invent
the human mind ... The Cobra Event
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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try.Miss.try.
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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No try. No deal.
78
You miss 100 of the shots you never take.
Wayne Gretzky
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EXCELLENCE. INNOVATION. JOB ONE.ALWAYS.
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INNOVATE. OR. DIE.
81
InnoTacs
82
revenue matters most
83
The Commerce Bank ModelCost cutting is a death
spiral.Source Fans! Not customers. How
Commerce Bank Created a Super-growth Business in
a No-growth Industry, Vernon Hill Bob Andelman
84
Our whole story is growing revenue. Vernon
Hill (Top-line driven standard is bottom-line
driven by cost cutting)
85
The Commerce Bank Model over-invest in our
people, over-invest in our facilities.Source
Fans! Not customers. How Commerce Bank Created a
Super-growth Business in a No-growth Industry,
Vernon Hill Bob Andelman
86
We become who we spend time with
87
The Hang Out Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision
about Innovate, Yes or No
88
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
89
We become who we spend time with ii
90
WikiWorld The Billion-man Research Team
Companies offering work to online communities are
reaping the benefits of crowdsourcing.
Headline, FT, 0110.07
91
Educate for creativity
92
Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
93
Every child is born an artist. The trick is to
remain an artist. Picasso
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Foster independence
95
Muhammad Yunus All human beings are
entrepreneurs. When we were in the caves we were
all self-employed . . . finding our food, feeding
ourselves. Thats where human history began . . .
As civilization came we suppressed it. We became
labor because they stamped us, You are labor.
We forgot that we are entrepreneurs. Source
Muhammad Yunus/The News HourPBS/1122.2006
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Race up up Up the value-added ladder
solutions
97
55B
98
The Value-added Ladder/ OPPORTUNITY-SEEKING
Customer Success/ Gamechanging
SolutionsServicesGoods Raw Materials
99
Race up up Up the value-added ladder
Experiences
100
Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
101
The Starbucks Fix Is on We have
identified a third place. And I really
believe that sets us apart. The third place is
that place thats not work or home. Its the
place our customers come for refuge. Nancy
Orsolini, District Manager
102
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
103
The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
104
ltTGWvs. gtTGRThings Gone WRONG/Things Gone
RIGHT
105
Singapore-Candy(Operational Excellence)
106
3-cent lemon!
107
Disneys Parking Lot Attendants Alpha and Omega
108
winning through design
109
Design is treated like a religion at BMW.
Fortune
110
Race up up Up the value-added ladder
dreams come true
111
The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. Future products
will have to appeal to our hearts, not to our
heads. Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
112
Furniture vs. DreamsWe do not sell furniture
at Domain. We sell dreams. This is accomplished
by addressing the half-formed needs in our
customers heads. By uncovering these needs, we,
in essence, fill in the blanks. We convert
needs into dreams. Sales are the inevitable
result. Judy George, Domain Home Fashions
113
Dreams Come True Spellbinding
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
114
ltTGWvs. gtTGRThings Gone WRONG/Things Gone
RIGHT
115
imagination unbound!
116
Single greatest act of pure imagination
117
24
118
dubai
119
Women as innovation force!
120
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
121
Pursuing humongous new markets
122
Women are the majority market Fara
Warner/The Power of the Purse
123
?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 (66
home computers) Cars 68 (90)All consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
124
Repeat 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
125
The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
126
Selling to men The TRANSACTION ModelSelling to
Women The RELATIONAL ModelSource Selling
to Men, Selling to Women, Jeffery Tobias Halter
127
The Perfect Answer
Jill and Jack buy slacks in black
128
(No Transcript)
129
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
130
We simply had stopped being relevant to women.
Kay Napier, SVP Marketing (Fara Warner, The
Power of the Purse, From Minority to Majority
McDonalds Discovers the Woman Inside the Mom)
131
Mostly Moms Women were either ignored in
favor of focusing on mengenerally considered the
industrys most frequent users and therefore its
most important consumersor they were cast in the
role of moms who were simply conduits to their
children. Fara Warner, The Power of the Purse,
From Minority to Majority McDonalds Discovers
the Woman Inside the Mom
132
McDonalds shifted its strategy toward women
from one of minority consumers who served as a
conduit to the important childrens market to one
in which women are the companys majority
consumers and the main driver behind menu and
promotion innovation. Fara Warner, The Power
of the Purse, From Minority to Majority
McDonalds Discovers the Woman Inside the Mom
133
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?
134
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
135
new markets ii
136
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
137
7/13
138
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!
139
Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly understood.
Peter Francese, founding publisher, American
Demographics
140
Conscious measurement
141
Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher out of 10 on a Wow/Rock the World
Scale?
142
EXCELLENCE. BEDROCK.LEADERSHIP.10Ps.
143
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
144
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
145
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)
146
Leader Job OnePaint Portraits of Excellence!
147
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
148
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
149
BZ I am a Dispenser of Enthusiasm!
150
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
151
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
152
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
153
25
154
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
155
You must be the change you wish to see in the
world.Gandhi
156
Being aware of yourself and how you affect
everyone around you is what distinguishes a
superior leader. Edie Seashore (Strategy
Business 45)
157
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
158
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
159
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES. PEOPLE.potent.Positive.
160
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
161
Dennis, you need a To-dont List !
162
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE i.
Potent.Positive.
163
Leaders do people. Period. Anon.
164
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
165
Leaders SERVE people. Period. inspired by
Robert Greenleaf
166
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE ii.
Potent.Positive.
167
?
168
I cant tell you how many times we passed up
hotshots for guys we thought were better people,
and watched our guys do a lot better than the big
names, not just in the classroom, but on the
fieldand, naturally, after they graduated, too.
Again and again, the blue chips faded out, and
our little up-and-comers clawed their way to
all-conference and All-America teams. Bo
Schembechler (and John Bacon), Recruit for
Character, Bos Lasting Lessons
169
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE iii.
Potent.Positive.
170
53 53
171
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
172
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE iv.
Potent.Positive.
173
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
174
!!!!!!!!!!!!!!!14 to 168Leadership
Positions/DT/1992-2002/WIAR (Womens Initiative
Annual Report)
175
Period??!!Start 3 0f 14 18 months later 10
of 18 AIM/September 2007
176
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE v.
Potent.Positive.
177
PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
178
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE vi.
Potent.Positive.
179
2 per Year/ 20 per Decade Excellence Legacy
180
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE vii.
Potent.Positive.
181
Brand Talent.
182
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
183
You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do. Jerry Garcia
184
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!
185
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
186
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo