Tom Peters/ SouthAfrica2002 Leading in Totally Screwed-Up Times 12August2002/Johannesburg

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Tom Peters/SouthAfrica2002Leading in Totally
Screwed-Up Times12August2002/Johannesburg
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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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Toms 15
TIBs1. Technicolor.2. Passion.3.
Action/R.F!A.4. Screw-ups.5. Mess.6.
Revolution.7. eALL.8. Forgetting/Destruction.9.
Daring.10. Talent.11. Talent/Diversity.12.
Talent/Women.13. Design.14. Experiences.15.
New Demographics/Women/Aging/Green.
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The Context.
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There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
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The Leadership50
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The Basic Premise.
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1. Leadership Is a Mutual Discovery Process.
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Leaders-Teachers Do Not Transform People!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a
luxuriant portfolio of meaningful opportunities
(projects) which (3) allow people to fully (and
safely, mostlycaveat they dont engage unless
theyre mad about something) express their
innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams,
assisted by an extensive self-constructed
network) by which those people (5) go to-create
places they (and their mentors-teachers-leaders)
had never dreamed existedand then the
leaders-mentors-teachers (6) applaud like hell,
stage photo-ops, and ring the church bells 100
times to commemorate the bravery of their
followers explorations!
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1A. Leaders Cede Control.
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I dont know.
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1B. Leaders Try Not to Screw Things Up
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Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
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The Leadership Types.
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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.
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25/8/53(Damn it!)
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Whoops Jack didnt have a vision!
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2A. Just One Great Leading Great Mentoring.
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T.A. 3
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2B. Great Leaders are Great V.C.s.
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Basically Omnicoms John Wren makes aggressive
bets on entrepreneurs and gives them tremendous
autonomy, on the assumption that the risk-taking
will pay off in new ideas, connections,
businesses, and, yes, revenues and profits.
Omnicom operates like a venture-capital firm,
says Sir Martin Sorrell of WPP.Business 2.0
(09.17.2001)
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3. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
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A leader is a dealer in hope.Napoleon
(TPs writing room pics)
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4. Find the Businesspeople! (Type III
Leadership)
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I.P.M. (Inspired Profit Mechanic)
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4A. All Organizations Need the Golden Leadership
Triangle.
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The Golden Leadership Triangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic.
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5. Leadership Mantra 1 IT ALL DEPENDS!
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Renaissance Men are a snare, a myth, a delusion!
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5A. The Leader Is Rarely/Never the Best Performer.
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33 Division Titles. 26 League Pennants. 14 World
Series Earl Weaver0. Tom Kelly0. Jim
Leyland0. Walter Alston1AB. Tony LaRussa132
games, 6 seasons. Tommy LasordaP, 26 games.
Sparky Anderson1 season.
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The Leadership Dance.
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6. Leaders SHOW UP!
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Rudy!
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P.S. Mark McCormack 5,000 miles for a 5 min.
meeting!
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6A. Leaders LOVE the MESS!
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Im not happy unless Im uncomfortable.Jay
Chiat
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If things seem under control, youre just not
going fast enough.Mario Andretti
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7. Leaders DO!
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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!)
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Read It Closely We dont sell insurance
anymore. We sell speed. Peter Lewis,
Progressive
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7A. Leaders Re-do.
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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
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Sony Electronics has a well-earned reputation
for persistence. The companys first entry into a
new field often isnt very good. But, as it has
shown in laptops, Sony will keep trying until it
gets it right.Business Week (5/01)
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If it works, its obsolete. Marshall McLuhan
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7B. Leaders Are PLAYFUL.
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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
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8. BUT Leaders Know When to Wait.
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Tex Schramm The too hard box!
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Leaders know when to RETREAT.
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Axioms (1) Pick your battles carefully. (2)
Sometimes inaction promotes sorting out
preserves options.
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9. Leaders DELIVER!
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9A. Leaders KNOW They Can Make a Difference!
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Leaders dont want to win. Leaders need to
win.49
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It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
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When assessing candidates, the first thing I
looked for was energy and enthusiasm for
execution. Does she talk about the thrill of
getting things done, the obstacles overcome, the
role her people playedor does she keep wandering
back to strategy or philosophy? Larry Bossidy,
Honeywell/AlliedSignal, in Execution
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9B. Leaders Are Optimists.
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Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
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Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
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10. BUT Leaders Are Realists/Leaders Win
Through LOGISTICS!
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The Gus Pagonis Imperative!
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11. Leaders FOCUS!
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To Dont List
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11A. Leaders Set CLEAR DESIGN SPECS.
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Danger S.I.O. (Strategic Initiative Overload)
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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!
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11B. Leaders Send V-E-R-Y Clear Signals About
Design Specs!
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Ridin with Roger What have you done to
DRAMATICALLY IMPROVE quality in the last 90 days?
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Its Relationships, Stupid.
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12. Leaders Trust in TRUST!
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Credibility!
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12A. Leaders Infuse the Dreaded-All Important
Evaluation Process with CREDIBILITY!
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25 100
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13. Leaders Understand the Ultimate Power of
RELATIONSHIPS.
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Women speak and hear a language of connection
and intimacy, and men speak and hear a language
of status and independence. Men communicate to
obtain information, establish their status, and
show independence. Women communicate to create
relationships, encourage interaction, and
exchange feelings.Judy Rosener, Americas
Competitive Secret
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TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
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14. Leaders Know Women Roar/ Women Rule.
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversitySource Judy B. Rosener, Americas
Competitive Secret
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If It Aint Broke Break It.
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15. Leaders FORGET!/Leaders DESTROY!
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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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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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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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Whaddaboutheproduct?20 of 267 of top 10
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PG Declining domestic sales in 20 of 26
categories 7 of top 10 categories. (The
billion-dollar problem.)Source Advertising
Age 01.21.2002/BofA Securities
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Primary Obstacles to Marketing-driven
Change1. Fear of cannibalism.2. Excessive
cult of the consumer/ customer driven/
slavery to demographics, market research and
focus groups.3.Creating sustainable
advantage. Source
John-Marie Dru, Disruption
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Leaders dump the ones who brung em Nokia, HP,
3M, PerkinElmer, Corning, etc.
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Cortez!
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Jim Tom. Joined at the hip. Not.
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The New Ge WayDYB.com
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16. BUT Leaders Have to Deliver, So They Worry
About Throwing the Baby Out with the Bathwater.

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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)
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Organize for performance customer
satisfaction.Disorganize for renewal
innovation.
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17. Leaders HONOR THE USURPERS.
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Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
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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
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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
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Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
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Suppliers There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
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17A. Leaders HANG OUT WITH FREAKS!
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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
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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)
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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
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Leaders know WE BECOME WHO WE HANG WITH!
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Message TAKE SOMEONE NEW WEIRD TO LUNCH TODAY
OR TOMORROW. Inundate yourself with weird.
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18. Leaders Make Lotsa Mistakes and MAKE NO
BONES ABOUT IT!
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Sams Secret 1!
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Fail faster. Succeed sooner.David Kelley/IDEO
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Fail. Forward. Fast. High-tech Exec
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The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.Newsweek/ Paul Saffo
(03.02)
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Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
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18A. Leaders Make BIG MISTAKES!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
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18B. Leaders Honor Mistakes Create Blame-free
Cultures.
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Winning By Acknowledging FailuresWernher Von
Braun, the Redstone missile engineer who
confessed the bottle of champagne. Award to
the sailor on the Carl Vinsonfor reporting the
lost tool. Amy Edmondson the successful nursing
units with the highest reported adverse drug
events.Source Karl Weick Kathleen Sutcliffe,
Managing the Unexpected
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Accountability YES!Never-ending witch hunts NO!
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Create.
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19. Leaders Know that THERES MORE TO LIFE THAN
LINE EXTENSIONS. Leaders Love to CREATE NEW
MARKETS.
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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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No one ever made it into the Business Hall of
Fame on a record of line extensions.
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20. Leaders Pursue DRAMATIC DIFFERENCE!
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1st Law Mktg Physics OVERT BENEFIT (Focus 1 or
2 gt 3 or 4/One Great Thing. Source 1
Personal Passion)2ND Law REAL REASON TO
BELIEVE (Stand Deliver!)3RD Law DRAMATIC
DIFFERENCE (Execs Dont Get It intent to
purchase 100 unique 0 to 5)Source
Jump Start Your Business Brain, Doug Hall
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They consumer goods company have acquired a
bunch of products, which is what everyone is
doing. But whats the point, the message, the
story line, the Big Idea that makes it all hang
together? Exec, major consumer goods company
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20A. Leaders Make Their Mark / Leaders Do
Stuff That Matters
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I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Trends.
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21. Leaders Get the Big3 Trends
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Trends I Women Roar.
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (home projects)
80Consumer Electronics 51 Cars 60
(90)All consumer purchases 83 Bank Account
89Health Care 80
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2/3rds working women/50 working wives gt
5080 checks61 bills53 stock (mutual fund
boom)43 gt 500K95 financial decisions/ 29
single handed
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4.8T gt Japan9M/27.5M/3.6T gt Germany
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Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
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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.
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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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
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Women dont buy brands. They join
them.EVEolution
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Not!Year of the Woman
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Honey, are you sure you have the kind of money
it takes to be looking at a car like this?
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STATEMENT OF PHILOSOPHY I am a businessperson.
An analyst. A pragmatist. The enormous social
good of increased womens power is clear to me
but it is not my bailiwick. My game is
haranguing business leaders about my fact-based
conviction that womens increasing power
leadership skills and purchasing power is the
strongest and most dynamic force at work in the
American economy today. Dare I say it as a
long-time Palo Alto resident THIS IS EVEN
BIGGER THAN THE INTERNET!Tom Peters
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Ad from Furniture /Today (04.01)MEET WITH THE
EXPERTS! How Retailings Most Successful Stay
that WayPresenting Experts M 16F ??
(94 272)
144
0
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Stupid Amazing, now that I think about it. A
bunch of guys --developers, architects,
contractors, engineers, bankers--sitting around
designing shopping centers. And the end users
will be overwhelmingly women!
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Stupid!
147
F.Y.I.
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Women Beat Men at Art of InvestingSource
Miami Herald, reporting on a study by Profs.
Terrance Odean and Brad Barber, UC Davis (Cause
Guys are in and out of stocks more often women
choose carefully and hold on for the long term)
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Investment Club ReturnsWomen-only clubs 1997
17.9Mixed 17.3Men-only 15.6Source
National Assoc. Investors
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Value Line Top State Investment Clubs 20008
All male19 Coed22 All FEMALE VT Maine
not included D.C. included
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Customer is King 4,440Customer is Queen
29Source Steve Farber/Google search/04.2002
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No Target MarketingYes Target Innovation
Target Delivery Systems
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Trends II Boomer Bonanza/ Godzilla Geezer.
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Subject Marketers StupidityIts 18-44,
stupid!
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Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
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2000-2010 Stats18-44 -155 21(55-64
47)
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507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury cars610B
healthcare spending/74 prescription drugs5
of advertising targetsKen Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
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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
159
Age Power will rule the 21st century, and we
are woefully unprepared.Ken Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
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No Target MarketingYes Target Innovation
Target Delivery Systems
161
Trends III Green
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Of all the ways the company will be judged over
the next decade, none will be greater than our
response to the issue of climate change.
William Clay FORD Jr.
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And 3 GREEN????? 50 to 36 Protect
Environment gt Economic Growth.58 to 34
Protect Plants Animals gt Preserve Private
Property Rights.
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E.g. Genetically Altered FoodWould eat M,
71 F, 50Give to children M, 59 F,
37Pay more for non-altered M, 35 F,
47Source www.pulse.org USA Today
165
No Target MarketingYes Target Innovation
Target Delivery Systems
166
Womens/Aging/Green Market Why
Tough?Encompassing!Attitude!CULTURAL!
167
New Model.
168
22. Leaders Understand the Enormity of the
White Collar Revolution.
169
108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
170
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
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IBMs Project eLiza! Self-bootstrapping/
Artilects
172
Deep Blue Redux 2,240 EKGs 1,120 heart
attacks. Hans Ohlin (50 yr old chief of coronary
care, Univ of Lund/SW) 620. Lars Edenbrandts
software 738.Only this time it matters!
173
Unless mankind redesigns itself by changing our
DNA through altering our genetic makeup,
computer-generated robots will take over the
world. Stephen Hawking, in the German magazine
Focus
174
23. Leaders Turn All Departments into PSFs.
175
So what will be the Basic Building Block of the
New Org?
176
Every job done in W.C.W. is also done outside
for profit!
177
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
178
eHR/PCCAll HR on the WebProductivity
Consulting CenterSource E-HR A Walk through a
21st Century HR Department, John Sullivan, IHRIM
179
Model PSF
180
(1) Translate ALL departmental
activities into discrete W.W.P.F.
Products.(2) 100 go on the Web.(3)
Non-awesome are outsourced (75??).(4)
Remaining Centers of Excellence are
retained leveraged to the hilt!
181
Typically in a mortgage company or financial
services company, risk management is an
overhead, not a revenue center. Weve become more
than that. We pay for ourselves, and we actually
make money for the company.Frank Eichorn,
Director of Credit Risk Data Management Group,
Wells Fargo Home Mortgage (Source sas.com)
182
24. Leaders Push Their Organizations W-a-y Up the
Value-added/ Intellectual Capital Chain
183
The Big Day!
184
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting business!
185
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
186
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).
187
You are headed for commodity hell if you dont
have services.Lou Gerstner on IBMs coming
revolution (1997)
188
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
189
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
190
Keep In Mind Customer Satisfaction versus
Customer Success
191
Was Big Iron Transformer Dudes Division. Is
Air Traffic Controllers of Electrons.
192
Was Bunch of Guys Who Make Circuit Breakers
Division. Is GE Industrial Systems.
193
Nardellis goal (50B to 100B by 2005)
move Home Depot beyond selling goods to selling
home services. He wants to capture home
improvement dollars wherever and however they are
spent. E.g. house calls (At-Home Service
10B by 05?) pros shops (Pro Set) home
project management (Project Management System
a deeper selling relationship).Source USA
Today/06.14.2002
194
E.g. UTC/Otis Carrier boxes to integrated
building systems
195
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)
196
No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
197
VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell
is not a man plagued by self doubt. Mr. Zell
controls public companies that own nearly 700
office buildings in the United States. Now Mr.
Zell says he will transform the real estate
market by turning those REITs into national
brands. Mr. Zell believes clients will start
to view those offices as something more than a
commodity chosen chiefly by price and location.
New York Times (12.16.2001)
198
Omnicom 57 (of 6B) from marketing services
199
25. Leaders Demolish Stovepipes!
200
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 Organization
Limits.
201
In an era when terrorists use satellite phones
and encrypted email, US gatekeepers stand armed
against them with pencils and paperwork, and
archaic computer systems that dont talk to each
other.Boston Globe (09.30.2001)
202
Once devised in Riyadh, the tasking order took
hours to get to the Navys six aircraft
carriersbecause the Navy had failed years
earlier to procure the proper communications gear
that would have connected the Navy with its Air
Force counterparts. To compensate for the lack
of communications capability, the Navy was forced
to fly a daily cargo mission from the Persian
Gulf and Red Sea to Riyadh in order to pick up a
computer printout of the air mission tasking
order, then fly back to the carriers, run
photocopy machines at full tilt, and distribute
the documents to the air wing squadrons that were
planning the next strike. Bill Owens, Lifting
the Fog of War
203
The Solutions25.
204
1. Its the (OUR!) organization,
stupid!2. Friction free! 3. No STOVEPIPES!4.
Stovepiping is a F.O.Firing Offense.5. ALL on
the web! (ALL ALL.)6. Open access!6. Project
Managers rule! (E.g. Control the purse
strings and evals.)7. VALUE-ADDED RULES!
(Services Rule.) (Experiences Rule.) (Brand
Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS.
Period. We sell PRODUCTIVITY
PROFITABILITY. Period.)9. Solutions Our
culture. 10. Partner with B.I.C.
(Best-In-Class). Period.
205
12. All functions contribute equallyIS, HR,
Finance, Purchasing, Engineering,
Logistics, Sales, Etc.13. Project Management can
come from any function.14. WE ARE ALL IN SALES.
PERIOD.15. We all invest in wiring the
customer organization.16. WE ALL LIVE THE
BRAND. (Brand Solutions. That MAKE
MONEY FOR OUR CUSTOMER- PARTNER.)17. We
use the word PARTNER until we all want to
barf!18. We NEVER BLAME other parts of our
organization for screw-ups.19. WE AIM TO
REINVENT THIS INDUSTRY!20. We hate the word-idea
COMMODITY.
206
21. We believe in High tech, High touch.22. We
are DREAMERS.23. We deliver . (PROFITS.)
(CUSTOMER SUCCESS.)24. If we play the SOLUTIONS
GAME brilliantly, no one can touch us!25.
Our TEAM needs 100 I.C.s (Imaginative
Contributors). This is the ULTIMATE All Hands
affair!
207
Innovation Speeds New Basics1. XFTs
are the culture.2. Project-centric. 3. Open
talent market.4. Cause-based projects. 5.
Ubiquitous open systems. ISat home
throughout supply chain. Web based.6.
F-L-A-T.Innovation, Speed, CRM, Experience/
Solution demand this
208
KEY WORDS Partners with our Customers in
creating Memorable, Value-added Solutions/
Successes/ Experiences. WHICH REQUIRES Total
Enterprise Responsiveness beyond functional
walls.
209
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
210
Words to Live By Hierarchy is an
organization with its face toward the CEO and its
ass toward the customer.Kjell Nordstrom and
Jonas Ridderstrale, Funky Business
211
Supply Chain 2000When Joe Employee at
Company X launches his browser, hes taken to
Company Xs personalized home page. He can
interact with the entire scope of Company Xs
world customers, other employees, distributors,
suppliers, manufacturers, consultants. The
browser that is, the portal resembles a My
Yahoo for Company X and hooks into every network
associated with Company X. The real trick is that
Joe Employee, business partners and customers
dont have to be in the office. They can log on
from a cell phone, Palm Pilot, pager or home
office system.Red Herring (09.2000)
212
26. Leaders Know that the HVA/Solutions
Revolution rests upon Experiences Dream
Fulfillment Design.
213
A World of Scintillating/ Awesome/ WOW
Experiences.
214
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
215
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
216
Guinness as a brand is all about community. Its
about bringing people together and sharing
stories.Ralph Ardill, Imagination, in re
Guinness Storehouse
217
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
218
The Experience LadderExperiences
ServicesGoods Raw Materials
219
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
220
Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
221
Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
222
Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, A Unique Moment on the
excellence of Nokia, Nike, Lego, Virgin et al.
223
Experiences Embracing the Dream Business.
224
DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
225
Common Products Dream ProductsMaxwell
House StarbucksBVD
Victorias SecretPayless
FerragamoHyundai
FerrariSuzuki
Harley DavidsonAtlantic City
AcapulcoNew Jersey
CaliforniaCarter
KennedyConners
PeleCNN
MillionaireSource Gian Luigi Longinotti-Buitoni
226
Building the Creative
OrganizationChoose a creator The cultural
leader who gives the company an aesthetic point
of view.Hire eclectically Hire collaborators
with different cultures and past histories in
order to balance rigor with emotion.Prepare
vertically Develop a rigorous understanding of
the product and the client.Develop horizontally
Promote curiosity in unrelated disciplines.Lead
emotionally Engender passionate dedication
through vision and freedom.Build for the long
haul Creativity requires a lifetime
commitment.Source Gian Luigi Longinotti-Buitoni
227
Emotional Design that Interprets Dreams Zero
defects Only the starting point.Love at first
sight.Design for the five senses.Develop to
expand the Main Dream.Design so as to seduce
through the peripheral senses.Source Gian
Luigi Longinotti-Buitoni
228
The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
229
The Mostly Ignored Soul of Experiences
Design Rules!
230
Designs place in the universe.
231
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
232
Design is treated like a religion at
BMW.Fortune
233
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
234
Bottom Line.
235
Design is WHAT WHY I LOVE. LOVE.
236
Design is WHY I GET MAD. MAD.
237
Design is never neutral.
238
Hypothesis DESIGN is the principal difference
between love and hate!
239
THE BASE CASE I am a design fanatic. Though
not artistic, I love cool stuff. But it
goes much further, far beyond the personal.
Design has become a professional obsession. I
SIMPLY BELIEVE THAT DESIGN PER SE IS THE
PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT or
detachment RELATIVE TO A PRODUCT OR SERVICE OR
EXPERIENCE. Design, as I see it, is arguably
the 1 DETERMINANT of whether a
product-service-experience stands out or
doesnt. Furthermore, its another one of those
things that damn few companies put
consistently on the front burner.
240
Message (?????) Men cannot design for womens
needs.
241
Perhaps the macho look can be interesting if
you want to fight dinosaurs. But now to survive
you need intelligence, not power and aggression.
Modern intelligence means intuitionits female.
Source Philippe Starck, Harvard Design
Magazine (Summer 1998)
242
Technology.
243
27. Leaders LOVE the New Technology!
244
100 square feet
245
WebWorld Everything Web as a way to run your
businesss innardsWeb as connector for your
entire supply-demand chain Web as spiders web
which re-conceives the industryWeb/B2B as
ultimate wake-up call to commodity
producersWeb as the scourge of slack,
inefficiency, sloth, bureaucracy, poor customer
dataWeb as an Encompassing Way of LifeWeb
Everything (P.D. to after-sales)Web forces you
to focus on what you do bestWeb as entrée, at
any size, to Worlds Best at Everything as next
door neighbor
246
Message eCommerce is not a technology play! It
is a relationship, partnership, organizational
and communications play, made possible by new
technologies.
247
Message There is no such thing as an effective
B2B or Internet-supply chain strategy in a
low-trust, bottlenecked-communication, six-layer
organization.
248
Theres no use trying, said Alice. One cant
believe impossible things. I daresay you
havent had much practice, said the Queen. When
I was your age, I always did it for half an hour
a day. Why, sometimes Ive believed as many as
six impossible things before breakfast.Lewis
Carroll
249
Inet allows you to dream dreams you could
never have dreamed before!
250
Supposejust supposethat the Web is a new world
were just beginning to inhabit. Were like the
earlier European settlers in the United States,
living on the edge of the forest. We dont know
whats there and we dont know exactly what we
need to do to find out Do we pack mountain
climbing gear, desert wear, canoes, or all three?
Of course while the settlers may not have known
what the geography of the New World was going to
be, they at least knew that there was a
geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It
has nothing natural in it. It has few rules of
behavior and fewer lines of authority. Common
sense doesnt hold here, and uncommon sense
hasnt yet emerged. David Weinberger, Small
Pieces Loosely Joined
251
28. Needed? Type IV Leadership Technology
Dreamer-True Believer
252
The Golden Leadership Quadrangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic. (4) Technology
Dreamer-True Believer
253
Talent.
254
29. When It Comes to TALENT Leaders Always
Swing for the Fences!
255
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 (05.17.00)
256
Message Some people are better than other
people. Some people are a helluva lot better than
other people.
257
30. Leaders Dont Create Followers THEY CREATE
LEADERS!
258
I start with the premise that the function of
leadership is to produce more leaders, not more
followers.Ralph Nader
259
Brand You, Big Time!I AM AN ARMY OF ONE
260
31. Leaders Win Followers Over
261
WHAT AN IDIOT Instead of employees being in the
drivers seat, now were in the drivers seat.
262
PJ Coaching is winning players over.
263
32. Leaders Manage Their EVP/Internal Brand
Promise.
264
MantraM3Talent Brand
265
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
266
33. Leaders LOVE KIDS.
267
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
268
8 Minutes Dr. Sugata Mira, NIIT/ New Delhi/
1999Ignorance to SurfingAnd then theres
oya yubi sedai, the thumb generation
269
33A. Leaders Pursue Poets!
270
Gardners MI7 Logical-mathematical, Linguistic,
Spatial, Musical, Bodily-kinesthetic,
Interpersonal, Intrapersonal.
271
Passion.
272
34. Leaders Out Their PASSION!
273
G.H. Create a cause, not a business.
274
Vision is a love affair with an idea.Boyd
Clarke Ron Crossland, The Leaders Voice
275
Apple opposes, IBM solves, Nike exhorts, Virgin
enlightens, Sony dreams, Benetton protests.
Brands are not nouns but verbs.Source
Jean-Marie Dru, Disruption
276
!
277
35. Leaders Know ENTHUSIASM BEGETS ENTHUSIASM!
278
BZ I am a Dispenser of Enthusiasm!
279
35A. Leaders Watch Their LANGUAGE!
280
Language matters!
281
36. Leaders Focus on the SOFT STUFF!
282
Soft Is Hard- ISOE
283
Message Leadership is all about love! Passion,
Enthusiasms, Appetite for Life, Engagement,
Commitment, Great Causes Determination to Make
a Damn Difference, Shared Adventures, Bizarre
Failures, Growth, Insatiable Appetite for
Change. Otherwise, why bother? Just read
Dilbert. TPs final words CYNICISM SUCKS.
284
36A. Leaders Know Culture Change Takes But a
Minute. (No Bull!)
285
What Do I Do First?One Minute
Excellence!Thomas Watson
286
Culture Change is not Corporate.Culture Change
is not a Program.Culture change does not take
Years.Culture Change does not start
Today.Culture Change starts Right
Now!Culture Change Lives in the Moment!Culture
Change is Entirely in Your Hands!
287
The Job of Leading.
288
37. Leaders Know Its ALL SALES ALL THE TIME.
289
TP If you dont LOVE SALES find another life.
(Dont pretend youre a leader.) (See TPs
The Project50.)
290
37A. Leaders LOVE POLITICS.
291
TP If you dont LOVE POLITICS find another
life. (Dont pretend youre a leader.)
292
38. But Leaders Also Break a Lot of China
293
If youre not pissing people off, youre not
making a difference!
294
Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
295
Joe J. Jones 1942 2002 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
296
39. Leaders Give RESPECT!
297

• 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

298
It is impossible to claim that all good teachers
use similar techniques some lecture nonstop and
others speak very little some stay close to
their material and others loose the imagination
some teach with the carrot and others with the
stick. But in every instance, good teachers share
one trait a strong sense of personal identity
infuses their work. Dr. A is really there when
he teaches. Mr. B has such enthusiasm for his
subject. You can tell that this is really Prof.
Cs life. Parker Palmer, The Courage to Teach
299
40. Leaders Say Thank You.
300
The deepest human need is the need to be
appreciated.William James
301
The two most powerful things in existence a
kind word and a thoughtful gesture.Ken
Langone, CEO, Invemed Associates from Ronna
Lichtenberg, Its Not Business, Its Personal
302
40A. Leaders Are Graceful.
303
My favorite word is grace whether its amazing
grace, saving grace, grace under fire, Grace
Kelly. How we live contributes to beauty
whether its how we treat other people or the
environment.Celeste Cooper, designer
304
Rodales on Grace elegance charm
loveliness poetry in motion kindliness ..
benevolence benefaction compassion beauty
305
41. Leaders LISTEN!
306
See Stephen! (Empathetic Listening)
307
41A. Leaders Are Curious.
308
TP/08.2001 The Three Most Important Letters
WHY?
309
42. Leadership Is a Performance.
310
It is necessary for the President to be the
nations No. 1 actor.FDR
311
You cant lead a cavalry charge if you think you
look funny on a horse. John Peers, President,
Logical Machine Corporation
312
43. Leaders Are The Brand
313
WHO ARE YOU these days ?TP to Client
314
The BRAND lives (OR DIES) in the minutiae of
the leaders moment-to-moment actions.
315
You must be the change you wish to see in the
world.Gandhi
316
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
317
44. Leaders Have a GREAT STORY!
318
A key perhaps the key to leadership is
the effective communication of a story.Howard
Gardner Leading Minds An Anatomy of Leadership
319
Stories of identity narratives that help
individuals think about and feel who they are,
where they come from, and where they are headed
constitute the single most powerful weapon in the
leaders arsenal.Howard Gardner, Leading
Minds An Anatomy of Leadership
320
Early in my career in the law I learned that
he who has the best story wins.JQ Adams/A
Hopkins to T Joadson/M Freeman
321
MBSA!Managing By Story-ing Around/David
Armstrong
322
45. Leaders Seed Pursue Recognize (Weird)
Demos.
323
Some people look for things that went wrong and
try to fix them. I look for things that went
right and try to build on them. Bob Stone/ Mr.
Rego/ Confessions of an Uncivil Servant
324
Leaders aimed on changing their world identify
palpable heroes, who executed palpable
projectsthey point to these people and say to
the masses, See, here it is, done by one of your
own. (And then they deep-dip a few of those
heroes to demo their seriousness.)
325
REAL Org Change Demos Models (Model
Installations, ReGo Labs)/ Heroes (mostly
extant burned to reinvent govt)/ Stories
Storytellers (Props!)/ Chroniclers (Writers,
Videographers, Pamphleteers, Etc.)/ Cheerleaders
Recognition (PosgtgtNeg, Volume)/ New Language
(Hot/Emotional/WOW)/ Seekers (networking mania)/
Protectors/ Support Groups/ End RunsPull
Strategy (weird alliances, weird customers,
weird suppliers, weird alumnae-JKC)/ Field Real
People Focus (3 COs) (long way away)/ Speed
(O.O.D.A. Loopsact before the bad guys can
react)C.f., Bob Stone, Confessions of an
Uncivil Servant
326
Each VP a V.C. Portfolio of high-risk
investments in people ideas from all across the
company.
327
Introspection.
328
46. Leaders Enjoy Leading.
329
Warrens Whoops Moment
330
Warren, I know you want to be president. But
do you want to do president?
331
46A. Leaders KNOW THEMSELVES.
332
Individuals (would-be leaders) cannot engage in a
liberating mutual discovery process unless they
are comfortable with their own skin. (Leaders
who are not comfortable with themselves become
petty control freaks.)
333
46B. But Leaders have MENTORS.
334
The Gospel According to TP Upon having the
Leadership Mantle placed upon thine head, thou
shalt never hear the unvarnished truth again!
(Therefore, thy needs one faithful compatriot to
lay it on with no jelly.)
335
47. Leaders LAUGH!
336
47A. But Leaders Know Its My Fault.
337
You recruited em.You hired em.You trained
em. You evaluated em.You motivated em.
338
47B. Leaders Dont Scapegoat / Allow Scapegoating.
339
When a plane crashes, they ask, What happened?
In medicine they ask Whose fault was it?
James Bagian, M.D. former astronaut, now
working with the VHA.
340
48. Leaders Take Breaks.
341
Zombie!Zombie!Zombie!Zombie!
342
The End Game.
343
49. Leaders ???
344
Leadership is the PROCESS of ENGAGING PEOPLE in
CREATING a LEGACY of EXCELLENCE.
345
Its only business, not personal IT ALWAYS
IS PERSONAL.
346
Hire smart go bonkers have grace make
mistakes love technology start all over
again.
347
LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON
ROLLER BLADES
348
Bonus Boss Talk
349
Branding Kevin Roberts The great brands have
mystery and sensuality. Apple is the most sensual
product since the vibrator./ Tina Brown You
should be able to throw a magazine on the floor
at any page and know whose magazine it is./
350
The Perils of Me-too Stephen Hardis (Eaton)
Dont have your resources trapped in areas that
are inherently zero-sum games with a very
marginal return./ Phil Condit (Boeing) Just
doing what your competitor does is the biggest
opportunity to lose money. Douglas and Lockheed
built tri-jets to the identical specs and beat
each other silly.
351
Jeff Bezos Its easy to let the in-box side of
your life overwhelm you, so you become a totally
reactive person. The only remedy I know is to set
aside some fraction of your time as your own. I
use Tuesdays and Thursdays as my proactive days,
when I try not to schedule meetings.
352
Jeff Bezos I'm often encouraging people to go
faster, even if it means a worse initial product.
I want us to start learning. The cost of trying
to avoid mistakes is huge in terms of speed.
353
Robert Miller (Federal-Mogul), on Turnarounds
(1) Tell the truth. Play it straight. (2) Make
decisions. Dont study things to death. (3)
Listen to your customers. They are usually more
perceptive than you are about what needs to be
done.
354
Juergen Schrempp/DaimlerChryslerDigital
decision making/ the danger of the deadly wish
for harmony
355
Boss Talk/WSJProvide a
simple, clear, exciting energizing
focus.Obsess on TALENT.Speed gt Perfection.
(Clarity, motivation, rapid adjustment.)Leap gt
Line extension. (Beware me-too, perfecting
yesterday.)Tell the truth.Control your
calendar.Get out of the office.Listen to
customers face-to-faceat their place.
356
50. Leaders Know WHEN TO LEAVE!
357
Thank You!