Tom Peters

1
Tom PetersEXCELLENCE. ALWAYS.Discover
NetworkMerchant Advisory CouncilChicago/02
November 2006
2
Thank You!
3
FLOWERPOWER
4
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
5
The Jim Jeffords oversight!
6
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM. Watergate, M Stewart,
BR And PERCEPTION IS ALL THERE IS!

7
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.

8
If God spoke to me by saying, Mark, youre down
to your last three words What would you want to
say to your fellow humans that would make the
most positive impact? It would be a close call
between Love Thy Neighbor and Wash Your Hands
.Mark Pettus, M.D., The Savvy PatientThe
most important thing you can do to keep from
getting sick is to wash your hands.
CDC/National Center for Infectious Diseases
9
Tom PetersEXCELLENCE. ALWAYS.Discover
NetworkMerchant Advisory CouncilChicago/02
November 2006
10
Slides at tompeters.comalso see LONG
version
11
5/42
12
HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
13
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
14
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
15
Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
16
HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
17
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
18
Message/Implication go for it!C.E.O. to
C.D.O.
19
EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
20
25
21
20-minute rule Craig Johnson/30 yrs
22
The Union senior officers rode past the
Confederates smugly without any sign of
recognition except by one. When General Grant
reached the line of ragged, filthy, bloody,
despairing prisoners strung out on each side of
the bridge, he lifted his hat and held it over
his head until he passed the last man of that
living funeral cortege. He was the only officer
in that whole train who recognized us as being on
the face of the earth. quote from the diary
of a Confederate soldier
23
EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
24
A man without a smiling face must not open a
shop. Chinese Proverb
25
EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
26
1/100 Best Companies to Work for/2005
27
7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
28
Jims Group
29
EXCELLENCE. SIBERIA.
30
Why in the world did you go to Siberia?
31
Raging Success P-SQUARED. C. E-CUBED.
32
People.Product.Customers.Execution.Enthusiasm.
Excellence.
33
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
34
EXCELLENCE. INNOVATE. OR. DIE.
35
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
36
EXCELLENCE. INNOVATE. ALL. WRONG.
37
More Than 1 RD spending, last 25
years/USA?
38
GM
39
I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
40
Flat as a Pancake (Or Worse)WalMart Dell
Intel Home Depot Microsoft GE
41
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
42
EXCELLENCE. INNOVATE. AXIOMATIC.
43
The Mess Is the Message! Period!
44
We are in a brawl with no rules. Paul Allaire
45
S.A.V.
46
EXCELLENCE. INNOVATE. TACTICS.
47
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.
48
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
49
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
50
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
51
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
52
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
53
tolerate encourage? failure
54
Sams Secret 1!
55
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
56
Bonus long versionThink!vs.do!Tom
peters/27 October 2006
57
re-imagine the value added equation
58
Up, Up, Up, Up the Value-added Ladder.
59
55B
60
The NEW Value-added LadderGamechanging
Solutions/ Implemented Customer
successServices/TransactionsManufactured
Goods/Things Extracted Raw Materials
61
Department Head to Managing Partner, IS
HR, RD, etc. Inc.
62
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)
63
UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
64
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
65
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
66
The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
67
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
68
The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
69
Dream MerchantIBM
70
totally re-imagine the business around the
two staggering new opportunities
71
women
72
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
73
Womens TrifectaBuy/all Wealth/all Lead/
better Eclipse of males/whoops
(Retire-old/Poorly educated-young)
74
1. Womens CONSUMER GOODS purchases. 2.
Womens COMMERCIAL GOODS purchases.3. WOMEN
ARE THE MARKET. Not an initiative. 4.
Women-owned BUSINESSES (absolute s,
acceleration, relative growth).5. Womens
brand of LEADERSHIP SKILLS.6. womens
strengths match needs of the new
value-added ladder.7. Womens DRAMATICALLY
INCREASING-commanding WEALTHabsolute,
relative. (Jobs. Longevity. Education.
Entrepreneurial. Decline of BOYS. Retirement of
MEN/Senior MEN.) 8. DEMOGRAPHIC TSUNAMI.
WOMEN. Women as solo HEADs-OF-HOUSEHOLD.
THE WOMaN- BOOMER-GEEZER. LOoooNG-TERM
PHENOMENON. Global phenomenon.9. SPEED of
change. mother of all megatrends.
75
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.
76
Women are the majority market Fara
Warner/The Power of the Purse
77
Idiot is too kind a word.
78
Thats a very diverse team. Patrick Cescau,
CEO, Unilever 1 of 14 Board of Directors
members is a woman (not an exec) 2 of 7 Exec
Team members are Indians. (Source FT/24-25
June.) Approximately 85 of Unilevers
products are purchased by women.
79
Thats a VERY diverse team. Patrick
Cescau, CEO, Unilever 1 of 14 Board of
Directors members is a woman (not an exec) 2 of
7 Exec Team members are Indians. (Source
FT/24-25 June.) Approximately 85 of Unilevers
products are purchased by women.
80
Thats a VERY sick man. Tom Peters
81
Good Thinking, Guys!Kodak Sharpens Digital
Focus On Its Best Customers Women Page 1
Headline/WSJ/0705
82
EXCELLENCE. FOUND.DUH.
83
To be a leader in consumer products, its
critical to have leaders who represent the
population we serve. Steve Reinemund/PepsiCo
84
Women are the majority market Fara
Warner/The Power of the Purse
85
The Perfect Answer
Jill and Jack buy slacks in black
86
(No Transcript)
87
Women dont buy brands. They join
them.EVEolution
88
Selling to men The TRANSACTION ModelSelling to
Women The RELATIONAL ModelSource Selling
to Men, Selling to Women, Jeffery Tobias Halter
89
1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.
90
10. Womens Market Opportunity No. 1.
91
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
92
P-l-e-a-s-e Read Fara Warner The Power of the
Purse
93
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
94
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
95
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)
96
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
97
New! New! New! New! New! Womens magazines a
medium that McDonalds had rarely
used Source Fara Warner, The Power of the
Purse, From Minority to Majority McDonalds
Discovers the Woman Inside the Mom
98
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline,
Economist, April 15, 2006, Leader, page 14
99
10.6
100
The growth and success of women-owned businesses
is one of the most profound changes taking place
in the business world today. Margaret
Heffernan, How She Does It
101
U.S. firms owned or controlled by Women 10.6
million (48 of all firms) Growth rate of
Women-owned firms vs all firms 3X Rate of jobs
created by Women-owned firms vs all firms
2X Ratio of total payroll of Women-owned firms
vs total for Fortune500 firms gt1.0 Ratio of
likelihood of Women-owned firms staying in
business vs all firms gt1.0 Growth rate of
Women-owned companies with revenues of
gt1,000,000 and gt100 employees vs all firms 2X
Source Margaret Heffernan, How She Does It
102
94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
103
Economic Growth Is Driven by Women.
Headline, Economist, April 15, 2006, Leader,
page 14
104
Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
105
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
106
Impact! Add It Up!Primary
markets/Everything (Men buy things that other
men will buy for women. I buy things that women
want.successful jeweler/F. Women are the
majority market Fara Warner/The Power of the
Purse. Women as Purchasing Officers, CIOs,
etc.)Greater global workforce participation rate
(bigger contributor to GDP growth than
technology, China, IndiaEconomist)Higher wages
(more seniority, promotionseven if not to CEO
greater pay equityeven if not equal)Business
decision makers (more seniority,
promotionseven if not to CEO)Women-owned
businesses (answer to the Glass Ceiling10.6M in
USA recipients of micro-lendingdeveloping
world)
107
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
108
Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, Cover
story/May 2006, World Business, Say It Like a
Woman Why the 21st-century negotiator will need
the female touch
109
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?
110
boomers-geezers
111
Subject Marketers StupidityIts 18-44,
stupid!
112
Subject Marketers StupidityOr is it 18-44
is stupid, stupid!
113
One particularly puzzling category of
youth-obsession is the highly coveted target of
men 18-34, and its always referred to as highly
coveted category. Marketers have been distracted
by men age 18-34 because they are getting harder
to reach. So what? Who wants to reach them? The
theory is that if you get them while theyre
young, theyre yours for life. What nonsense!
Marti Barletta, PrimeTime Women
114
2000-2010 Stats18-44 -155 21(55-64
47)
115
BoomerBucks!Boomer turns 50 every 7 seconds.
2009 majority of U.S. households headed by
someone over 50. 2006-2016 U.S. population up
22.9 million 22.1 million in over-50 group.
2006 1 in 5 adults is F, over 50. Women
between 50-70 who are single 35. Age 45-54
highest average income, 59, 021 (national
average is 42,209). FASTEST GROWING INCOME
CATEGORY WOMEN, 55-64 (4X men in same category).
Women, age 60-64 50 still in workforce.
Highest net worth families, 55-64 (182,000).
People over 50 70 to 79 of all financial
assets 80 of all savings accounts 62 of all
large Wall Street asset accounts 66 of
invested in the stock market. Age 50 29 of
population, 40 of total consumer spending, 50
of discretionary spending. Next 2 decades
BOOMERS WILL INHERIT 14 TRILLION-25 TRILLION
(largest intergenerational transfer of wealth in
history). Marti Barletta, PrimeTime Women
116
Average of cars purchased per household,
lifetime 13Average of cars bought per
household after the head of household reaches
age 50 7Source Marti Barletta, PrimeTime Women
117
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
118
Fifty-four years of age has been the highest
cutoff point for any marketing initiative Ive
ever been involved in. Which is pretty weird when
you consider age 50 is right about when people
who have worked all their lives start to have
some money to spend. Marti Barletta, PrimeTime
Women
119
Median Household Net Worthlt35 7K35-44
44K45-54 83K55-64 112K65-69 114K70-74
120Kgt74 100KSource U.S. Census
120
44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
121
The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
122
Boomers-Geezers-Womens TrifectaBuy/all
Wealth/all time left/ lots
Eclipse of males/retire-die
123
The Copenhagen (Self) Pact re This
TopicEarly!Loud!Repetitive!Aggressive!
Unfriendly!/rude!/ insulting!
124
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
125
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
126
We become who we spend time with!
127
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
128
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
129
EXCELLENCE.1966. 2006.
130
4/40
131
De-centralizationexecutionaccountability615a.m
.
132
De-centralizationexecutionaccountability615a.m
.
133
If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
134
De-centralizationexecutionaccountability615a.m
.
135
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
136
De-centralizationexecutionaccountability615a.m
.
137
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)
138
De-centralizationexecutionaccountability615a.m
.
139
De-centralizationexecutionaccountability615a.m
.
140
EXCELLENCE. BEDROCK.TALENT.
141
Hire very good people!
142
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
143
INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!
144
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
145
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
146
PUT HR AT THE HEAD OF THE HEAD TABLE.
147
DD21M
148
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.
149
LIVE FOR TALENT!
150
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
151
Brand Talent.
152
EXCELLENCE. BEDROCK.LEADERSHIP.
153
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)
154
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
155
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
156
Most important, he upped the energy level at
Motorola. Fortune on Ed Zander/08.05
157
You must be the change you wish to see in the
world.Gandhi
158
The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
159
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
160
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
161
Leaders do people. Period. Anon.
162
PURPOSE.PASSION.Presence.Personal.PERSISTENCE.
PEOPLE.
163
EXCELLE ALWAYS.