Tom Peters’ Excellence: The Relentless Pursuit of Dramatic Difference ! NAPA/Atlanta/09FEB2006

Tom Peters’ Excellence:

The Relentless Pursuit of

Dramatic Difference!NAPA/Atlanta/09FEB2006

Slides at …

tompeters.com

New world.

THREE BILLION NEW

CAPITALISTS —Clyde Prestowitz

Business Mantra #1* of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART

ON PRICE OR CHINA ON COST!*Mantra #2: See Mantra #1

No option.

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army

No option.

Best is not good

enough!*

*“Non-linear”:Tiger/Lance/Mike Leach/Dell/Wal*Mart/etc

Program06*

Study moreRenew moreTailor moreOffer moreListen moreMarket more

Practice moreChallenge moreSocialize more

Smile moreFollow-up more

Plan execution moreCost control more

*Thanks, Mr President

“In Tom’s world, it’s always better to try a

swan dive and deliver a

colossal belly flop than to step timidly off the

board while holding your nose.” —Fast Company /October2003

Tragic.

Franchise Lost!

TP: “How many of you [600] really

crave a new Chevy?”

NYC/IIR/061205

Sad.

This is not a “mature

category.”

This is an “undistinguished

category.”

A B C D E Avg

Toilets 0 1 6 5 5 D

Gen’l Cleanliness 1 2 8 5 1 C- Speed 4 6 5 2 0 B

Attitude 1 3 8 4 1 C

Overall “Experience” 0 3 9 5 0 C-

TOTAL 6 15 36 21 7

“When we did it ‘right’ it was still pretty ordinary.”

Barry Gibbons on “Nightmare No. 1”

Fight ’til Death!

“I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but

when I do it’s ‘Ho-hum.’ It’s

bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we

have created a plethora of ho-hum products and services. We swim in an

ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.” — Barry Gibbons

But.

“It” can be done.

$798

$798

$798

$798

$415/SqFt/Wal*Mart$798/SqFt/Whole Foods

4X: “At London Drugs, everyone

cares about everything.” —Wynne

Powell

7X. 730A-800P. F12A.*

*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

A “Life Success

Company”*1000-4/372

No Excuses: #1*84%: Grocery stores “are all alike”

46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup)

“Going to Wegmans is not just

shopping, it’s an event.” —Christopher Hoyt, grocery consultant

“You cannot separate their strategy as a retailer from their strategy as an employer.” —Darrell Rigby, Bain & Co.

*100 Best Companies to Work for/Fortune/2005

Only One Answer.

“Get better” vs

“Get different”

“You do not merely want to be

the best of the best. You want to be

considered the only ones who do what

you do.”Jerry Garcia

Winning.

Up, Up, Up, Up,Up the Value-added Ladder.

The (Old) “Value-added Ladder”: Stuff

Goods Raw Materials

The Value-added Ladder: Stuff plus Transactions

ServicesGoods

Raw Materials

Rock their world.

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator

of choice.” (BW)

IBM Global Services: $55B

“Big Brown’s New Bag: UPS

Aims to Be the Traffic Manager for Corporate

America” —Headline/BW/07.19.2004

The Value-added Ladder

Gamechanging Solutions

ServicesGoods

Raw Materials

Static/Imitative

Integrity.Quality.

Excellence.Continuous Improvement.

Superior Service (Exceeds Expectations.)

Completely Satisfactory Transaction.Smooth Evolution.

Market Share.

Dynamic/Different

Dramatic Difference!Disruptive!

Insanely Great! (Quality++++)

Life-(Industry-)changing Experience!Game-changing!

WOW!Surprise!Delight!

Breathtaking!Market Creation!

“The only reason to give

a speech is to change

the world.” —JFK

Experience it.

“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

2%/50%

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

2%/50%

The Value-added Ladder

Awesome Experiences

Gamechanging SolutionsServicesGoods

Raw Materials

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an

entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third

place is that place that’s not work or

home. It’s the place our customers

come for refuge.”Nancy Orsolini, District Manager

Beyond the “Transaction” Mentality

“Good hotel”/ “Happy guest” vs.

“Great Vacation”/ “Great Conference”/ “Operation Personal

Renewal”“Good to Be Home”

Dream it.

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

“The Ritz-Carlton experience enlivens the

senses, instills well-being, and fulfills even the unexpressed wishes

and needs of our guests.” — from the Ritz-Carlton Credo

Experience Ladder

Dreams Come True Awesome Experiences

Gamechanging SolutionsServicesGoods

Raw Materials

IBM, UPS …

Dream Merchants!

Love it.

“Brands have run out of

juice. They’re dead.” —Kevin Roberts/Saatchi &

Saatchi

Kevin Roberts:

Lovemarks!

Tattoo Brand: What % of users would tattoo the brand name on

their body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%Disney .... 14.8

Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6Nike …. 4.6

Adidas …. 3.1Absolut …. 2.6

Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

LovemarksDreams Come True

Awesome ExperiencesGamechanging Solutions

ServicesGoods

Raw Materials

“What Isn’t Matter Is

What Matters”

—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld,

James Twitchell

Gas ……………… $1.75 per gallonLipton Iced Tea .. $9.52 per gallonOcean Spray …... $10.00Gatorade ……….. $10.17Diet Snapple …... $10.32Milk ……………… $12.72Evian water ……. $21.19*STP brake fluid .. $33.60Pepto-Bismol ….. $123.20Vicks NyQuil …... $178.13

*”MESSAGE IN A BOTTLE: Our thirst for bottled water has created a $US46 billion global market—and New Zealand is infiltrating the once European-dominated industry with our own clean, green offerings”—article title, Air New Zealand magazine

Source: Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell (2004)

Bonus.

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%

D.I.Y. (major “home projects”) … 80%Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)All consumer purchases … 83%

Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%

Health Care … 80%

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

The Perfect Answer

Jill and Jack buy slacks in black…

Lead as if your life depended

on it.

Make a

Difference!

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

Go for the

Gold!

“Beware of the tyranny of making Small

Changes to Small Things.

Rather, make Big Changes to Big

Things.” —Roger Enrico, former Chairman, PepsiCo

“You do not merely want to be

the best of the best. You want to be

considered the only ones who do what

you do.”Jerry Garcia

Dispense

Enthusiasm!

“Nothing is so contagious

as enthusiasm.”

—Samuel Taylor Coleridge

Pursue Excellence!

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

“Insanely Great”

PSF!

Donnelly’s Weatherstrip

Service

Weymouth MA

“The ancient Greek definition of

happiness was the full use of your

powers along lines of excellence.” —JFK

Dream!

“the wildest hallucinations of

a moonstruck mind” —The Federalist on TJ’s Louisiana Purchase

Avoid Moderation!

“You can’t behave in a calm, rational

manner. You’ve got to be out there on

the lunatic fringe.” —

Jack Welch

!