Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age South Africa/18August2003

Tom Peters’

Re-Imagine!Business Excellence in

a Disruptive AgeSouth Africa/18August2003

Slides at …

tompeters.com

It is the foremost task—and responsibility—of our generation to

re-imagine our enterprises, private

and public —from the Foreword, Re-imagine

I. NEW BUSINESS.

NEW CONTEXT.

“Uncertainty is the only thing to be sure of. –Anthony Muh,head of investment in Asia, Citigroup Asset Management

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

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

You must become an ignorant man againAnd see the sun again with an ignorant eyeAnd see it clearly in the idea of it. --Wallace Stevens/“Notes Toward a Supreme Fiction”

1. The Destruction Imperative.

“The corporation as we know it, which is now 120 years old, is

not likely to survive the next 25 years. Legally and

financially, yes, but not structurally and economically.”

Peter Drucker, Business 2.0 (08.00)

Forget>“Learn”

“The problem is never how to get new, innovative

thoughts into your mind,

but how to get the old ones out.”

Dee Hock

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.

S&P 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

“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 Innovator’s Dilemma

“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a

timely death. … We believe that most corporations will find it impossible to

match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in

1000 A.D.]”

Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)

“Acquisitions are about buying market share.

Our challenge is to create markets. There is a big difference.”

Peter Job, CEO, Reuters

“MERGERS: Why Most Big Deals Don’t Pay Off. A

BusinessWeek analysis

shows that 61% of buyers destroyed shareholder wealth.” —BusinessWeek/10.14.2002

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of

the Tinkerers.’ ”CEO, large financial services company

(New York, 5-99)

The Three Levels of Innovation

Transformational

Substantial

Incremental

Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!

II. NEW BUSINESS. NEW TECH.

2. The White Collar Revolution

& the Death of Bureaucracy.

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

IBM’s Project

eLiza!** “Self-bootstrapping”/ “Artilects”

BW Cover/02.2003

“IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic

Research—even Financial Analysis. Can America Lose These

Jobs and Still Prosper?”

“Organizations will still be critically important in the world,

but as ‘organizers,’ not ‘employers’!” — Charles Handy

“The virtual corporation is research, development, design, marketing, financing, legal, and

other headquarters functions wth few or no manufacturing

capabilities – a company with a head but no body.”

Richard Rosecrance, The Rise of the Virtual State

Ford: “Vehicle brand owner” (“design, engineer, and

market, but not actually make”)

Source: The Company, John Micklethwait & Adrian Woolridge

3. IS/ IT/ Web … “On the Bus” or “Off the

Bus.”

100 square feet

“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 Organizational Limits.

“Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office

quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the

years ahead.

“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to

give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based

targeting systems to make the air strikes brutally effective.

“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the

real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly

together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business

2.0/ OCT2002

“A Big Electronics Show Is All About

Connections” —headline, New York Times/ 01.13.2003/

Consumer Electronics Show > COMDEX

WebWorld = Everything

Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web 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 World’s Best at Everything

as next door neighbor

“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

“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the

edge of the forest. We don’t know what’s there and we don’t 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 doesn’t hold

here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

Case: CRM

Amen!

“The Age of the

Never Satisfied Customer”

Regis McKenna

“Parents, doctors, stockbrokers, even military leaders are starting to

lose the authority they once had. There are all these roles premised on access to privileged information. …

What we are witnessing is a collapse of that advantage,

prestige and authority.”Michael Lewis, next

“CRM has, almost universally, failed

to live up to expectations.”

Butler Group (UK)

No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre-

electronic age when service was more personal.”

CGE&Y (Paul Cole): “Pleasant

Transaction” vs. “Systemic Opportunity.” “Better job

of what we do today” vs. “Re-think overall

enterprise strategy.”

Here We Go Again: Except It’s Real This Time!

Bank online: 24.3M (10.2002); 2X Y2000.

Wells Fargo: 1/3rd; 3.3M; 50% lower

attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and stay

with the bank much longer.”

Source: The Wall Street Journal/10.21.2002

III. NEW BUSINESS. NEW

VALUE PROPOSITION.

4. The “PSF Solution”:

The Professional Service Firm Model.

Sarah: “Daddy, what do you do?”

Daddy: “I’m a ‘cost center,’ honey.”

Bobby: “Daddy, what do you do?”

Daddy: “I’m what they call

‘overhead,’ son.”

So what will be the Basic Building

Block of the New Org?

Every job done in W.C.W. is

also done “outside”

…for profit!

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

TP to HRMAC: You are the …

Rock Stars of the Age of

Talent!

DD$21M

eHR*/PCC***All HR on the Web

**Productivity Consulting Center

Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM

Model PSF …

(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!

“Typically in a mortgage company or financial services company, ‘risk

management’ is an overhead, not a revenue

center. We’ve 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)

5. The Heart of the Value

Added Revolution: PSFs Unbound/ The

“Solutions Imperative.”

Base Case: The Sameness Trap

“While everything may

be better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“When McDonald’s first started exporting its formula of quality, cleanliness and service, it was

something of a novelty. … These days, quality, cleanliness and

service are a given—and people are becoming more interested in what they are eating.” —FT/12.21.2002

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

Barry Gibbons on “Nightmare No. 1”

“Customers will try ‘low cost

providers’ … because the Majors have not

given them any clear reason not to.”

Leading Insurance Industry Analyst

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, coming up

with similar ideas, producing

similar things, with similar prices

and similar quality.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

“Companies have defined so much ‘best practice’

that they are now more or less identical.”

Jesper Kunde, A Unique Moment

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. Just

go fly in an airplane. It could be such an enlightening experience. Ho-hum. We swim in an

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

— Barry Gibbons

The Big Day!

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersconsulting business!

“These days, building the best server isn’t enough. That’s the

price of entry.”Ann Livermore, Hewlett-Packard

Gerstner’s 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).

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

“Customer Satisfaction” to “Customer Success”

“We’re getting better at [Six Sigma] every day. But we really

need to think about the customer’s profitability. Are customers’

bottom lines really benefiting from what we provide them?”

Bob Nardelli, GE Power Systems

Keep In Mind: Customer

Satisfaction versus

Customer

Success

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

Leased AC: Units of “Coolth”

Nardelli’s 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

“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)

“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 it’s financial security, buying a car, paying

for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO,

Farmers Group

Omnicom: 57% (of

$6B) from marketing services

And the Winners Are …

Televisions –12%Cable TV service +5%

Toys -10%Child care +5%

Photo equipment -7%Photographer’s fees +3%

Sports Equipment -2%Admission to sporting event +3%

New car -2%Car repair +3%

Dishes & flatware -1%Eating out +2%

Gardening supplies -0.1%Gardening services +2%

Source: WSJ/05.16.03

Core Logic: (1) 108X5 to 8X1/ eLiza/ 100sf. (2)

Dept. to PSF/ WWPF. (3) V.A. via PSFs Unbound/ “Solutions”/ “Customer

Success.”

IV. NEW BUSINESS. NEW

BRAND.

6. A World of Scintillating/

Awesome/ WOW “Experiences.”

“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

“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

“Guinness as a brand is all about community.

It’s about bringing people together and sharing

stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse

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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

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

First Step (?!): Hire a theater director, as

a consultant or FTE!

“Quality Service”

“... Superb, graceful, beautiful, divine,

wonderful, an aesthetic gesture”

— James Hillman, Kinds of Power

Words!

— Magician of Magical Moments— Maestro of Moments of Truth— Recruiter of Raving Fans— Impresario of First Impressions— Wizard of WOW— Captain of Brilliant Comebacks— Director of Electronic Customer Experiences— Conductor of Customer Intimacy— King of Customer Community— Queen of Customer Retention— CEO of Ownership Experience— Managing Director of After-sales Experience

“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.]

Extraction & Goods: Male dominance

Services & Experiences: Female

dominance

“Women don’t buy

brands. They join them.”

EVEolution

The “Experience Ladder”

Experiences Services

Goods Raw Materials

Ladder Position Measure

Solutions Success(Experiences)

Services Satisfaction

Goods Six-sigma

7. The [Mostly Ignored] “Soul” of “Experiences”:

Design Rules!

Design’s place in the universe.

And Tomorrow …

“Fifteen years ago companies competed on price. Now it’s

quality. Tomorrow it’s design.”

Robert Hayes

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

“Design is treated like a religion at

BMW.”Fortune

“The new Beetle fails at most categories. The only

thing it doesn’t fail in is

drop-dead charm.”Jerry Hirshberg, Nissan Design International

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in

point: the iMac. Suddenly, a computer

is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.”

Katherine McCoy & Michael McCoy, Illinois Institute of Technology

“The good 10 percent of American product design comes

out of big-idea companies that don’t believe in talking to the

customer. They're run by passionate maniacs who make everybody’s life miserable until

they get what they want.”

Bran Ferren, Applied Minds/Wired 1-2001

“We don’t have a good language to talk about this kind of thing. In most people’s

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

Check Out the Language:

“Tomorrow it’s design …”“Design is the only thing …”

“Design is … religion ...”“Drop-dead charm …”“Object of desire …”

“Passionate maniacs …” “Fundamental soul …”

Bottom Line.

Design “is” … WHAT & WHY I LOVE.

LOVE.

Design “is” … WHY I

GET MAD. MAD.

Design is never neutral.

Hypothesis: DESIGN is the principal difference between love and

hate!

Step No. 1:

NOTEBOOK POWER!

[Start recording the awesome & the awful]

User …

STOP BLAMING

YOURSELF! (Don

Norman/Design of Everyday Things)

The Designer’s Ring

“For years I thought that Dante should have established a ‘designer’s ring’ in his Hell. If any

designer’s product raised a blister, caused a bruise, ripped a stocking, or caused any of the

thousand things that frustrate us with the products we use, that designer would be assigned the designer’s ring in Hell and forced to use that product for all of eternity.” — James Pirki, designer

and professor, Syracuse University

Message (?????): Men cannot design for women’s

needs.

“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

intuition—it’s female.”

Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

8. The Ultimate Market Megatrend:

Women Roar.

?????????

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

equipment)

Houses … 91%D.I.Y. (“home projects”) … 80%

Consumer Electronics … 51% Cars … 60% (90%)

All consumer purchases … 83% Bank Account … 89%

Health Care … 80%

91% women: ADVERTISERS DON’T

UNDERSTAND US. (58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.”

“He simply wants the transaction to take place. She’s interested in

creating a relationship. Every place women go, they make

connections.”

“Men seem like loose cannons. Men always move faster through a store’s

aisles. Men spend less time looking. They usually don’t like asking where things are.

You’ll see a man move impatiently through a store to the section he wants,

pick something up, and then, almost abruptly he’s ready to buy. For a

man, ignoring the price tag is almost a sign of virility.”

Paco Underhill, Why We Buy* (*Buy this book!)

Women's View of Male Salespeople

Technically knowledgeable; assertive; get to the point; pushy;

condescending; insensitive to women’s needs.

Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

Read This: Barbara & Allan Pease’s

Why Men Don’t Listen & Women Can’t Read Maps

“It is obvious to a woman when another woman is upset, while a man generally has to physically witness

tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned

sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Resting” State: 30%, 90%: “A woman knows her children’s

friends, hopes, dreams, romances, secret fears, what they are

thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes

to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub,

but can never find things in fridges, cupboards or drawers.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“Female hearing advantage contributes significantly to what is

called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair.

They are excellent at imitating animal sounds.”

Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

Senses

Vision: Men, focused; Women, peripheral.

Hearing: Women’s discomfort level I/2 men’s.

Smell: Women >> Men.Touch: Most sensitive man <

Least sensitive women.

Source: Martha Barletta, Marketing to Women

“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or

fixes a leaking tap.”Barbara & Allan Peace, Why Men Don’t Listen &

Women Can’t Read Maps

Editorial/Men: Tables, rankings.*

Editorial/Women: Narratives that cohere.*

*Redwood (UK)

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“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

2.6 vs. 21

“Women don’t buy

brands. They join them.”

EVEolution

Purchasing Patterns

Women: Harder to convince; more loyal once convinced.

Men: Snap decision; fickle.

Source: Martha Barletta, Marketing to Women

Not!“Year of the

Woman”

Enterprise Reinvention!

RecruitingHiring/Rewarding/Promoting

Structure Processes

MeasurementStrategyCulture Vision

Leadership

THE BRAND ITSELF!

“Honey, are you sure you have

the kind of money it takes to

be looking at a car like this?”

“Customer is King”: 4,440

“Customer is Queen”: 29

Source: Steve Farber/Google search/04.2002

Notes to the CEO

--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)

--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!

Source: Martha Barletta, Marketing to Women

No: “Target Marketing”

Yes: “Target

Innovation” & “Target Delivery Systems”

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. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

9. “It” all adds up

to … THE BRAND.

The Heart of Branding …

“WHO ARE WE?”

“WHAT’S OUR

STORY?”

“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

“EXACTLY HOW ARE WE

DRAMATICALLY DIFFERENT?”

1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)

2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)

3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It:

See the next slide.)

Source: Jump Start Your Business Brain, Doug Hall

2 Questions:

“How likely are you to purchase this new product or service?” (95% to 100% weighting by execs)

“How unique is this new product or service?” (0% to 5%*)

*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

“WHY DOES IT MATTER TO

THE CLIENT?”

“EXACTLY HOW DO I PASSIONATELY CONVEY THAT

DRAMATIC DIFFERENCE TO THE

CLIENT ?”

Message: REAL Branding is personal. REAL Branding is integrity. REAL

Branding is consistency & freshness. REAL Branding is the answer to WHO

ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments,

all hands affair.

DO THE HOUSEKEEPERS & CLERKS “BUY

IT”? [ARE YOU V-E-R-Y SURE?]

Branding: Is-Is Not “Table”

TNT is not: TNT is: TNT is not:

Juvenile Contemporary Old-fashioned

Mindless Meaningful Elitist

Predictable Suspenseful Dull

Frivolous Exciting Slow

Superficial Powerful Self-important

Message …

Is Not >> Is

V. NEW BUSINESS. NEW

WORK.

10. Toward Work that Matters: The

WOW Project.

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

Language matters! Wow! BHAG! “Takes

your breath away!”

Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

“Let’s make a dent in the universe.”

Steve Jobs

11. WOW Projects for the “Powerless”: A

Surefire Recipe.

World’s Biggest Waste …

Selling “Up”

THE IDEA: Model F4

Find a Fellow

Freak Faraway

F2F!/K2K!/1@T/R.F!A.*

*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.

And …

K2KK*S2SS***Kook to Kooky Kustomer

**Skunk to Scintillating Supplier

BOTTOM LINE

The Enemy!

Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

Audie Murphy was the most decorated soldier in WW2.

He won every medal we had to offer, plus 5 presented by Belgium and France. There was one common medal he

never won …

… the Good Conduct medal.

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

12. Boss Work: Demos, Heroes,

Stories … Or: Starting a WOW Projects

Epidemic.

Premise: “Ordering” Systemic Change is a Stupid Waste

of Time!

Demos! Heroes! Stories!

“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/ Lessons from an

Uncivil Servant

Leapfrog Group: “Lead Frogs”

Demo = Story

“A key – perhaps the key – to leadership is the

effective communication of a story.”

Howard Gardner, Leading Minds: An Anatomy of Leadership

MBSA!*

*Managing By Story-ing Around/David Armstrong

Culture of Prototyping

“Effective prototyping may be

the most valuable core competence an innovative organization can

hope to have.”

Michael Schrage

He who has the quickest O.O.D.A.

Loops* wins!*Observe. Orient. Decide. Act. /

Col. John Boyd

REAL Org Change: Demos & Models (“Model

Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned

to reinvent gov’t”)/ Stories & Storytellers (Props!)/

Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/

Cheerleaders & Recognition (Pos>>Neg, Volume)/

New Language (Hot/Emotional/WOW)/ Seekers

(networking mania)/ Protectors/ Support Groups/

End Runs—“Pull Strategy” (weird alliances, weird

customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/

Speed (O.O.D.A. Loops—act before the “bad guys” can react)

C.f., Bob Stone, Lessons from an Uncivil Servant

Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments

… Heroes … Renagades … Leadfrogs … Skunkworks …

Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s

Rules … JKC’s Rules

VI. NEW BUSINESS. NEW

YOU.

13. Re-inventing the Individual: Welcome

to a Brand You World

“If there is nothing very special about

your work, no matter how hard you apply yourself, you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2002

MasteryRolodex Obsession (vert. to horiz. “loyalty”)

Entrepreneurial InstinctCEO/Leader/Businessperson/Closer

Mistress of ImprovSense of Humor

Intense Appetite for TechnologyGroveling Before the Young

Embracing “Marketing”Passion for Renewal

“My ancestors were printers in Amsterdam from 1510 or so until

1750, and during that entire time they didn’t have to learn anything

new.”Peter Drucker, Business 2.0 (08.22.00)

“Knowledge becomes obsolete incredibly fast. The

continuing professional education of adults is the

No. 1 industry in the next 30 years … mostly on line.”

Peter Drucker,Business 2.0 (22August2000)

26.3

3 Weeks in May

“Training” & Prep: 187“Work”: 41

(“Other”: 17)

1% vs.

367%

Divas do it. Violinists do it. Sprinters do it. Golfers do it.

Pilots do it. Soldiers do it. Surgeons do it. Cops do it.

Astronauts do it. Why don’t businesspeople do it?

Edward Jones’ Training Machine*

146 hours/employee/yearNew hires: 4X avg.

3.8% of payroll

* #1, “The 100 Best Companies To Work For”/Fortune/01.2003

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/R.I.P.

Personal “Brand Equity” Evaluation– I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].– My current Project is challenging me …– New things I’ve learned in the last 90 days include …– My public “recognition program”

consists of …– Additions to my Rolodex in the last 90 days include …

–My resume is discernibly different from last year’s at this time …

“You are the storyteller of your own life, and you

can create your own legend or not.”

Isabel Allende

14. Boss Job One:

The Talent Obsession.

Age of AgricultureIndustrial Age

Age of Information IntensificationAge of Creation Intensification

Source: Murikami Teruyasu, Nomura Research Institute

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Brand = Talent.

The Talent Ten

1. Obsession

P.O.T.* = All Consuming

*Pursuit of Talent

Model 25/8/53

Sports Franchise GM*

*48 = $500M

“The leaders of Great Groups love talent and know where to find it. They revel in

the talent of others.”Warren Bennis & Patricia Ward Biederman,

Organizing Genius

PARC’s Bob Taylor:

“Connoisseur of Talent”

Les Wexner: From sweaters to people!

2. Greatness

Only The Best!

From “1, 2 or you’re out” [JW] to …

“Best Talent in each industry segment to build

best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent

3. Performance

Up or out!

“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

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

4. Pay

Fork Over!

“Top performing companies are two to four times more likely

than the rest to pay what it takes to prevent losing

top performers.”

Ed Michaels, War for Talent (05.17.00)

5. Youth

Grovel Before the Young!

“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]

8 Minutes*

—Dr. Sugata Mira, NIIT/ New Delhi/ 1999**

*Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”

6. Diversity

Mess Rules!

“Where do good new ideas come from? That’s simple! From

differences. Creativity comes from unlikely juxtapositions.

The best way to maximize differences is to mix ages, cultures and

disciplines.”

Nicholas Negroponte

7. Women

Born to Lead!

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, Business Week, 11.20.00

8. Weird

The Cracked Ones Let in the Light!

The Cracked Ones Let in the Light

“Our 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

“The Bottleneck is at the Top of the Bottle”

“Where 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, “Strategy or Revolution”/ Harvard Business Review

9. Opportunity

Make It an Adventure!

“H.R.” to “H.E.D.” ???

Human

Enablement

Department

“Firms will not ‘manage the careers’ of their employees. They

will provide opportunities to enable the employee to develop

identity and adaptability and

thus be in charge of his or her own career.”

Tim Hall et al., “The New Protean Career Contract”

Talent Department

People Department

Center for Talent Excellence

Seriously Cool People Who Recruit & Develop Seriously Cool People

Etc.

10. Leading Genius

We are all unique!

Beware Lurking HR Types … One size

NEVER fits all. One size fits one. Period.

48 Players = 48 Projects =

48 different success measures.

MantraM3

Talent = Brand

What’s your company’s …

EVP?Employee Value Proposition, per Ed

Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

Talent’s “Big Two” Rules

GREAT Finance Dept. = GREAT Football Team

DIFFERENCES Among Cello Players = DIFFERENCES

Among Hotel GMs

15. Meet the New

Boss: Women Rule!

“AS LEADERS, WOMEN RULE: New Studies find that female managers

outshine their male counterparts in almost

every measure”Title, Special Report, Business Week, 11.20.00

Lawrence A. Pfaff & Assoc.

— 2 Years, 941 mgrs (672M, 269F); 360º feedback

— Women: 20 of 20; 15 of 20 with statistical significance, incl.

decisiveness, planning, setting stds.) — “Men are not rated significantly

higher by any of the raters in any of the areas measured.” (LP)

Women’s 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 diversity.

Source: Judy B. Rosener, America’s Competitive Secret

“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 day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

“Investors are looking more and more for a relationship with their financial

advisers. They want someone they can trust, someone who listens. In my experience, in general,

women may be better at these relationship-building skills than are

men.”

Hardwick Simmons, CEO, Prudential Securities

“Thank you”

17 Men: 84 Women: 19

Okay, you think I’ve gone tooooo far.

How about this: DO ANY OF YOU SUFFER

FROM TOO MUCH TALENT?

16. Brand Talent+:

Addressing the Education

Fiasco

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ”Jordan Ayan, AHA!

“How many artists are there in the room? Would you please raise your hands. FIRST GRADE: En masse the children leapt from their seats, arms waving. Every child was an artist. SECOND

GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out

of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is:

Every school I visited was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace

J. D. Rockefeller’s General Education Board

(1906): “In our dreams people yield themselves with perfect docility to our

molding hands. … The task is simple. We will organize children and teach

them in a perfect way the things their fathers and mothers are doing in an imperfect way.”

John Taylor Gatto, A Different Kind of Teacher

Ye gads: “Thomas Stanley has not only found no correlation between success in school and an

ability to accumulate wealth, he’s actually found a negative correlation. ‘It seems that school-

related evaluations are poor predictors of economic success,’ Stanley concluded. What did predict success was a willingness to take risks.

Yet the success-failure standards of most schools penalized risk takers. Most educational

systems reward those who play it safe. As a result, those who do well in school find it hard to

take risks later on.”Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

The NAESP …

Attributes of Those Who “Made” the 10th Grade History Book

– Committed!

– Determined to make a difference!

– Focused!

– Passionate!

– Irrational about their life’s project!

– Ahead of their time / Paradigm busters!

– Impatient! / Action Obsessed

Attributes of Those Who “Made” the 10th Grade

History Book –Made lots of people mad!

–Flouted the chain of command!

–Creative / Quirky / Peculiar! / Rebels! / Irreverent!

–Masters of improv / Thrive on chaos / Exploit chaos!

Attributes of Those Who “Made” the 10th Grade

History Book –Made lots of people mad!

–Flouted the chain of command!

–Creative / Quirky / Peculiar! / Rebels! / Irreverent!

–Masters of improv / Thrive on chaos / Exploit chaos!

Attributes of Those Who “Made” the 10th Grade History Book

–Forgiveness > Permission

–Bone honest!

–Flawed as the dickens!

– “In touch” with their followers’ aspirations

–Damn good at what they do!

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”*Fortune, article on “Most Admired Global Corporations”

VII. NEW BUSINESS: (NEW) BRAND INSIDE RULES

Message2002 …

BI > BO

Brand Inside Rules!

“I came to see in my time at IBM that culture isn’t just one aspect of the

game—it is the game” —Lou

Gerstner, Who Says Elephants Can’t Dance?

Brand Inside Rules!

“If I could have chosen not to tackle the IBM culture head-on, I probably

wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison,

changing the attitude and behaviors of hundreds of thousands of people is

very, very hard.” —Lou Gerstner, Who Says Elephants Can’t Dance?

17. THINK WEIRD … the HVA/

High Value Added Bedrock.

“We are crazy. We should do something when people say it is

‘crazy.’ If people say something is ‘good’, it

means someone else is already doing it.”

Hajime Mitarai, Canon

THINK WEIRD: The High Standard

Deviation Enterprise.

Saviors-in-Waiting

Disgruntled CustomersOff-the-Scope Competitors

Rogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees

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

“If you worship at the throne of the voice of the customer, you’ll get only

incremental advances.”Joseph Morone, President,

Bentley College

“These days, you can’t succeed as a company if you’re consumer led –

because in a world so full of so much constant change, consumers can’t

anticipate the next big thing.

Companies should be idea-led and consumer-

informed.”Doug Atkin, partner, Merkley Newman Harty

“HAVE MBAs KILLED OFF MARKETING? Prof Rajeev Batra says: ‘What these times call for is more creative

and breakthrough reengineering of product and service benefits, but we don’t train people to think like that.’ The way marketing is

taught across business schools is far too analytical and data-driven. ‘We’ve taken away the emphasis on creativity and big ideas that characterize real marketing breakthroughs.’ In India there is an added problem: most senior marketing jobs have been traditionally dominated by MBAs. Santosh Desai, vice

president, McCann Erickson, an MBA himself, believes in India engineer-MBAs, armed with this Lego-like approach, tend to reduce marketing into neat components. ‘This reductionist

thinking runs counter to the idea that great brands must have a core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is

Marketing Not Working?”

COMPETITORS: “The best swordsman in the world doesn’t 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 doesn’t do the thing he ought to do, and so the expert isn’t

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

“The short road to ruin is to emulate

the methods of your adversary.”

— Winston Churchill

EMPLOYEES: “Are there enough weird

people in the lab these days?”

V. Chmn., pharmaceutical house, to a lab director (06.01)

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

BOARDS: “Extremely contentious boards that

regard dissent as an obligation and that treat

no subject as undiscussable” —Jeffrey Sonnenfeld,

Yale School of Management, on top performers

We become who we

hang out with!

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) don’t 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) Don’t try to learn anything from people who seem to have solved the problems you face.

(11) Forget the past, particularly your company’s success.

Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation

Deviants, Inc. “Deviance tells the story of every mass

market ever created. What starts out weird and dangerous

becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way

out there.”

Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)

Big Idea/s

V.C. GM

PortfolioRoster

VIII. NEW BUSINESS. NEW LEADERSHIP.

18. The Passion

Imperative: The

Leadership50

The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

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, mostly—caveat: “they”

don’t engage unless they’re “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 existed—and 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!

“I don’t know.”

“Ninety percent of what we call ‘management’ consists of making it

difficult for people to get things done.” – P.D.

The Leadership

Types.

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.

25/8/53*(*Damn it!)

Whoops: Jack didn’t have a vision!

3. But Then Again, There Are Times When This “Cult of Personality”

(Type II Leadership) Stuff Actually Works!

“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

4. Find the “Businesspeople”!

(Type III Leadership)

I.P.M. (Inspired Profit

Mechanic)

5. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

6. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

7. The Leader Is Rarely/Never the Best Performer.

33 Division Titles. 26 League Pennants. 14

World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0.

Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky

Anderson—1 season.

The Leadership

Dance.

8. Leaders …

SHOW UP!

Rudy!

9. Leaders … LOVE the

MESS!

“I’m not comfortable unless

I’m uncomfortable.”—Jay Chiat

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

10. Leaders

DO!

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

“You miss 100 percent of the shots you don’t

take.” — Wayne Gretsky

“We have a ‘strategic’ plan. It’s called doing

things.” — Herb Kelleher

11. Leaders

Re-do.

“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly.

They’re eviscerated in public for lousy

products. Yet they persist, through version after version, until they get

something good enough. Then they leverage the power they’ve gained in

other markets to enforce their standard.”Seth Godin, Zooming

“If it works, it’s

obsolete.”

—Marshall McLuhan

12. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

13. Leaders Are …

Optimists.

Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

14. Leaders …

DELIVER!

“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

#49

“It is no use saying ‘We are doing our best.’ You have got to succeed in doing

what is necessary.” —WSC

“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 played—or does she keep

wandering back to strategy or philosophy?” —Larry Bossidy,

Honeywell/AlliedSignal, in Execution

15. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus Imperative”!

16. Leaders

FOCUS!

“To Don’t ” List

It’s T-H-R-E-E, Stupid!

“I used to have a rule for myself that at any point in time I wanted to have in mind — as

it so happens, also in writing, on a little card I carried around with me — the three big

things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.”

— Richard Haass, The Power to Persuade

17. Leaders …

Set CLEAR DESIGN SPECS.

Danger: S.I.O. (Strategic

Initiative Overload)

JackWorld/1@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!

18. Leaders …

Send V-E-R-Y Clear Signals About

Design Specs!

Ridin’ with Roger: “What have you done to

DRAMATICALLY IMPROVE quality in the

last 90 days?”

If It Ain’t Broke … Break It.

19. Leaders …FORGET!/

Leaders … DESTROY!

Forget>“Learn”

“The problem is never how to get new, innovative

thoughts into your mind,

but how to get the old ones out.”

Dee Hock

Cortez!

Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.

20. BUT … Leaders

Have to Deliver, So They Worry About “Throwing the Baby Out with the

Bathwater.”

“Damned If You Do, Damned If You Don’t, 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)

21. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

22. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

DG to TP: “Sam is not afraid

to fail.” **NASA failing #1, from the shuttle disaster report (July 2003):

“fear of retribution by lower-level employees.”

“Fail faster. Succeed sooner.”

David Kelley/IDEO

Fail. Forward. Fast. –High-tech Exec

23. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Create.

24. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

25. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

Legacy!

CEO Assignment2002 (Bermuda):

“Please leap forward to 2007, 2012, or 2022, and write a business history of

Bermuda. What will have been said about your company during your

tenure?”

Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and

imagine me immediately doing something about what you’ve just said. What would it be?”

“Do you feel you have an obligation to ‘Make the world a

better place’?”

“Management has a lot to do with answers. Leadership is a function of questions. And the

first question for a leader always is: ‘Who do we

intend to be?’ Not ‘What are we going to do?’ but ‘Who do

we intend to be?’” —Max DePree, Herman Miller

26. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

27. Leaders

LOVE the New Technology!

100 square feet

28. Needed? Type IV Leadership: Technology

Dreamer-True Believer

The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent

Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True

Believer

Talent.

29. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

Talent’s Rules

1. Talent = 25/8/53 2. Some people are better than other people. Some people are a helluva lot better than other people3. Think “Roster”4. Think “V.C.”5. Talent = Brand6. Talent is what leaders do.

30. Leaders Don’t Create “Followers”:

THEY CREATE LEADERS!

“I start with the premise that the

function of leadership is to produce more leaders, not more

followers.”—Ralph Nader

Brand You, Big Time!

I AM AN ARMY OF

ONE

31. Leaders “Win Followers Over”

WHAT AN IDIOT: “Instead of employees being in the driver’s

seat, now we’re in the driver’s seat.”

PJ: “Coaching is winning

players over.”

“I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very

simple. It was something like, ‘Burger King is 250,000 people, every one of

whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking

about, nothing less.”— Barry Gibbons

Passion.

32. Leaders …

Out Their

PASSION!

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

“Coca-Cola was Roberto Goizueta’s painting. It was never finished, and he was

never totally satisfied with it. But he had the Sistine Chapel in

his head, and he was always working on it.” — Warren Buffett

33. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

“You can’t behave in a calm, rational manner. You’ve got to

be out there on the lunatic fringe.” — Jack Welch,

on GE’s quality program

“I overcame every single one of my personal shortcomings by the sheer passion I brought to my

work.”

“Don’t become too predictable.”

“Swim upstream. Go the other way. Ignore conventional wisdom.”

Source: Sam WaltonHint: All this gets much harder as you become bigger.

34. Leaders Are …

in a Hurry

The Urgency Factor: LEADERS … have a distorted

sense of time. (E.g.:

Rummy thinks he asked months ago … it was the day before yesterday.)

35. Leaders Focus on the

SOFT STUFF!

“Soft” Is “Hard”

- ISOE

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. TP’s final words: CYNICISM SUCKS.]

The “Job” of Leading.

36. Leaders Know It’s

ALL SALES ALL THE TIME.

“Everybody lives by selling something.”

— Robert Louis Stevenson

TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”) (See TP’s The Project50.)

37. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

38. But … Leaders Also

Break a Lot of China

If you’re not pissing people off, you’re not making

a difference!

39. Leaders

Give … RESPECT!

“It was much later that I realized Dad’s 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

“Ph.D. in leadership. Short course: Make a short list of all

things done to you that you abhorred. Don’t do them to

others. Ever. Make another list of things done to you that you

loved. Do them to others. Always.” — Dee Hock

Trust

“ ‘Empowerment’ has become the biggest gap between walk and talk in

America. I hear CEOs stand at podiums and say, ‘How do we get rid of five

thousand more?’ We should forget the word empowerment and go back to plain English. Empowerment is nothing more

than a fancy word for trust.”— Barry Gibbons

Amen!

“What creates trust, in the end, is the leader’s

manifest respect for the followers.” — Jim O’Toole, Leading Change

40. Leaders Say

“Thank You.”

“The two most powerful things

in existence: a kind word and a thoughtful gesture.”

Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]

“The deepest human

need is the need to be appreciated.”

William James

“We look for ...

“... listening, caring, smiling, saying ‘Thank

you,’ being warm.”— Colleen Barrett, President, Southwest Airlines

41. Leaders Are …

Curious.

TP/08.2001: The Three Most Important Letters …

WHY?

42. Leadership Is a …

Performance.

“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

Seven Seconds to Make an Impression

— Amp up your attitude [It’s energy, stupid!] — Recognize “face value” [no “poker face”] — Give your message a mission [don’t forget your agenda] Source: Roger Alles, CEO, Fox News, Fast Company

43. Leaders … Are The Brand

The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-

to-moment actions.

“You must be the change you

wish to see in the world.”

Gandhi

44. Leaders …

Have a GREAT STORY!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

“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

Leaders don’t just make products and make decisions.

Leaders make meaning. – John Seeley Brown

Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments

… Heroes … Renagades … Leadfrogs … Skunkworks …

Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s

Rules … JKC’s Rules

Introspection.

45. Leaders …

Enjoy Leading.

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

46. Leaders …

KNOW THEMSELVES.

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.)

47. But … Leaders

have MENTORS.

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.)

48. Leaders … Take Breaks.

Zombie!Zombie!Zombie!Zombie!

The End Game.

49. Leaders ???

:

“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a LEGACY

of EXCELLENCE.”

“ ‘It’s only business, not personal’ … IT

ALWAYS IS PERSONAL.”

“Hire smart – go bonkers – have grace – make mistakes – love technology – start all

over again.”

“LEADERS NEED TO BE THE ROCK OF

GIBRALTAR ON ROLLER BLADES”

50. Leaders Know

WHEN TO LEAVE!

Successful Businesses’ Dozen Truths: TP’s 30 Year Perspective

1. Insanely Great & Quirky Talent.2. Disrespect for Tradition.3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do.4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.”6. Speed Demons.7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)8. Passionate Hatred of Bureaucracy.9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.)10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom.12. A Crystal Clear Understanding of Brand Power.

It is the foremost task—and responsibility—of our generation to

re-imagine our enterprises, private and public —from the Foreword,

Re-imagine: Business Excellence in a Disruptive Age

Have you changed

civilization today?Source: HP banner ad

T. J. Peters T. J. Peters 1942 – 2---1942 – 2---

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!

T. J. Peters T. J. Peters 1942 – 2---1942 – 2---

HE WAS A PLAYER!HE WAS A PLAYER!

“May you live all the days of

your life.” — Jonathan Swift

“If you ask me what I have come to do in this

world, I who am an artist, I will reply: I am here to live my life out

loud.” — Émile Zola

“Dream as if you’ll live

forever. Live as if you’ll die today.”

—James Dean