LONG Tom Peters EXCELLENCE' ALWAYS' World Business Forum Frankfurt24October2006

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LONGTom PetersEXCELLENCE. ALWAYS.World
Business ForumFrankfurt/24October2006
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Slides at tompeters.com
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The Irreducible209/The Sales122/
60TIBs/Tom-A-to, Tom-ah-to
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors significantly underperformed
the market just 2 (2), GE Kodak,
outperformed the market from 1917 to 1987.SP
500 from 1957 to 1997 74 members of the Class of
57 were alive in 97 12 (2.4) of 500
outperformed the market from 1957 to
1997.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
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Franchise Lost! TP How many of you 600
really crave a new Chevy?
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Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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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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Message/Implication go for it!C.E.O. to
C.D.O.
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TP1 Netscape!Where would you rather have
worked for those 5 years, Netscape or
IBM-HP-Microsoft-Oracle? (Where, 25 years from
now, would you rather to be able to tell
someonee.g., grandchildthat you worked?)
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Those Are Big Numbers
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5 (Years) /42 (New Airports)
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Deutsche Bank Moves Half of Its Back-office Jobs
to India/ headline/FT/27.03.06 (500 of 900
Research)
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There is no job that is Americas God-given
right anymore. Carly Fiorina/HP/January2004
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There is no job that is _____s God-given right
anymore. Carly Fiorina/HP/January2004
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PAUSE.EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
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25
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?
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Jims Group
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EXCELLENCE. SIBERIA.
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People.Product.Clients.Execution.Enthusiasm.E
xcellence.
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People.Product.Clients.Execution.Enthusiasm.E
xcellence.
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Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Forbes/Excellence Index /Basket of 32
publicly traded stocks
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EXCELLENCE. THE WORD.
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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EXCELLENCE. SIBERIA.
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Why in the world did you go to Siberia?
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Business (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum concerted human
potential in the wholehearted service of
others.Excellence. Always.Employees,
Customers, Suppliers, Communities, Owners,
Temporary partners
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EXCELLENCE. INNOVATE. OR. DIE.
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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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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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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/2004)
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More Than 1 RD spending, last 25
years/USA?
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GM
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
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When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
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Innovation Tactics
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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. try it. Try it.
Try it. try it. Try it. Try it. Try it. Try it.
Try it.
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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 have a strategic plan. Its called doing
things. Herb Kelleher
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were already on prototype version 5. By the
time our rivals are ready with wires and screws,
we are on version 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by Bloomberg
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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You miss 100 percent of the shots you never
take. Wayne Gretzky
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Excellence1982 The Bedrock Eight
Basics 1. A Bias for Action 2. Close to the
Customer 3. Autonomy and Entrepreneurship 4.
Productivity Through People 5. Hands On,
Value-Driven 6. Stick to the Knitting 7. Simple
Form, Lean Staff 8. Simultaneous Loose-Tight
Properties
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tolerate encourage? failure
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Speed/ Tempo
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the FedEx Economy headline/New York
Times/10.08.05
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Any3 Anything/ Anywhere/ Anytime
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re-imagine the value added equation
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55B
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The NEW Value-added LadderGamechanging
SolutionsServicesGoods Raw Materials
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Are you Rock Stars of the Age of Talent
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Department Head to Managing Partner, IS
HR, RD, etc. Inc.
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HCare CIO Technology Executive (workin in a
hospital) Or/to Full-scale, Accountable (life
or death) Member-Partner of XYZ Hospitals
Senior Healing-Services Team (who happens to be a
techie)
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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
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Rebel Lifestyle!/Premier Tattoo
Brand/LovemarkWhat 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-Davidson exec,
Results-Based Leadership
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The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
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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
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Dreams Come TrueIBM
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Design is treated like a religion at BMW.
Fortune
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The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
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totally re-imagine the business around the
two staggering new opportunities
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Womens TrifectaBuy/all Wealth/all Lead/
better Eclipse of males/whoops
(Retire-old/Poorly educated-young)
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Women are the majority market Fara
Warner/The Power of the Purse
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She knows more about the Volvo than the
salesman who greets her at the door. But how is
she treated? As if she has a low IQ , is slightly
hard of hearing , and really has no right to be
buying a luxury car and if she brought a male
friend with her, odds are 101 that the clueless
salesperson spent most of his time speaking to
him . Selling to Men, Selling to Women, Jeffery
Tobias Halter
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Women dont buy brands. They join
them.EVEolution
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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, 15 April 2006
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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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Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
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1. Participation rate/2 of 3 new jobs,
last 30 years.2. Male workforce
departures/SENIOR male workforce
departures.3. Shrinking pay gap/same jobs.4.
More senior positions. Greater decision-
making/expenditure/org design authority. More
line jobs.5. Female solo head-of-household
growing.6. Longevity.7. Education.8. More
effective money management.
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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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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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Boomers-Geezers-Womens TrifectaBuy/all
Wealth/all time left/ lots
Eclipse of males/retire-die
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We become who we spend time with!
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Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
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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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go for it
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Immelt is now identifying technologies with
which GE will systematically set out to
build entirely new industries
StrategyBusiness, Fall 2005
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EXCELLENCE.1966. 2006.
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4/40
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De-centralizationexecutionaccountability615a.m
.
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If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
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GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
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De-centralizationexecutionaccountability615a.m
.
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EXCELLENCE. BEDROCK.TALENT.
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Hire very good people!
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.
Ed Michaels, War for Talent
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EMPHASIZE THE SOFT SKILLS.
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?
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INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!
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In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
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PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
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A review of Jack and Suzy Welchs Winning claims
there are but two key differentiators that set GE
culture apart from the herd First Separating
financial forecasting and performance
measurement. Performance measurement based, as it
usually is, on budgeting leads to an epidemic of
gaming the system. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance i.e., its
about how you actually do in the context of what
happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Second Putting HR on a par with finance and
marketing.
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LIVE FOR TALENT!
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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SO YOURE A PEOPLE PERSON? PROVE IT.
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PARCs Bob Taylor Connoisseur of Talent
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Leaders do people. Period. Anon.
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Brand Talent.
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EXCELLENCE. INDIVIDUAL.BRAND YOU.
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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
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Distinct or Extinct
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New Work
SurvivalKit.2006 1. MASTERY! (Best/Absurdly Good
at Something!)2. Manage to Legacy (All Work
Memorable/Braggable WOW Projects!) 3. A
USP/UNIQUE SELLING PROPOSITION 4. Rolodex
Obsession (From vertical/hierarchy/suck up
loyalty to horizontal/colleague/mate
loyalty)5. ENTREPRENEURIAL INSTINCT (A sleepless
Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSO
N/CLOSER (CEO, Me Inc. 24/7!)7. Master of
Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber)8.
Sense of Humor (A willingness to Screw Up Move
On) 9. Comfortable with Your Skin (Bring
interesting you to work!)10. Intense Appetite
for Technology (E.g. How Cool-Active is your
Web site? Do you Blog?)11. EMBRACE MARKETING
(Your own CSO/Chief Storytelling Officer)12.
PASSION FOR RENEWAL (Your own CLO/Chief Learning
Officer) 13. EXECUTION EXCELLENCE! (Show up on
time! Leave last!)
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EXCELLENCE. BEDROCK.LEADERSHIP.
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People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
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You must be the change you wish to see in the
world.Gandhi
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
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One of my superstitions had always been when I
started to go anywhere or to do anything, not to
turn back , or stop, until the thing intended was
accomplished. Grant
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Leaders do people. Period. Anon.
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PURPOSE.PASSION.Presence.PERSISTENCE.PEOPLE.
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You only find oil if you drill wells. The
Hunters, by John Masters, Canadian O G
wildcatter
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EXCELLE ALWAYS.