Tom Peters

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Tom PetersEXCELLENCE. ALWAYS.ONO/Managem
ent ForumMadrid/30 November 2006
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Slides at tompeters.comalso see LONG
version
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EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
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EXCELLENCE. ANY MARKET. ANYWHERE. ANY TIME.
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Jims Group
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EX-CELL-ENCE. NOT .
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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.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
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Welcome to the Club of Shattered Dreams Of
Koreas Top 100 companies in 1955, only 7 were
still on the list in 2004. The 1997 crisis
destroyed half of Koreas 30 largest
conglomerates.Source KET Issue Report, Kim
Jong Nyun (14.05.2005)
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SP Stability Ratings
1985 2006Low Risk
41 13 Average Risk 24
14High Risk 35 73Likelihood
of stable long-term earnings growthSource
Fortune (2 October 2006)
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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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EXCELLENCE. SIBERIA.
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Why in the world did you go to Siberia?
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Raging Success P-SQUARED. C. E-CUBED.
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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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The older I get the less boring the basics
become!
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EXCELLENCE. INNOVATE. OR. DIE.
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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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EXCELLENCE. INNOVATE. ALL. WRONG.
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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 1 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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EXCELLENCE. INNOVATE. 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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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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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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tolerate encourage? failure
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Sams Secret 1!
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Speed/ Tempo/is-it-Telecom
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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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WalMart (!) Katrina
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Power Tools For Power Strategies
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place big bets
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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measure
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher out of 10 on a Profound/
Amazing/Game- changer Scale?
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re-imagine the value added equation
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Up, Up, Up, Up the Value-added Ladder.
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55B
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/2004
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The NEW Value-added LadderGamechanging
Solutions/ Implemented Customer culture change
successServices/TransactionsManufactured
Goods/Things Extracted Raw Materials/Stuff
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PSF
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Up, Up, Up, Up the Value-added Ladder.
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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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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
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Up, Up, Up, Up the Value-added Ladder.
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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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The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
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Dream MerchantsIBMUPS
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totally re-imagine the business around the
two staggering new opportunities
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women
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Women are the majority market Fara
Warner/The Power of the Purse
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Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline,
Economist, April 15, 2006, Leader, page 14
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One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de
Thuin, Financial Times, 10.03.2006
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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
value-added imperatives. Women are better
salespersons than men. Women buy almost
everythingcommercial as well as consumer
goods. So what exactly is the point of men?
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94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
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rapidly aging population
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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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!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
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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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De-centralizationexecutionaccountability615a.m
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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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De-centralizationexecutionaccountability615a.m
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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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615a.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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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.
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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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Brand Talent.
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lt CAPEXgt People!
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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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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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Relentless 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.Personal.PERSISTENCE.
PEOPLE.
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EXCELLE ALWAYS.