Tom Peters’ EXCELLENCE. ALWAYS. ZIM Integrated Shipping Services NEWAVE08/AgenTeam 02 July 2008/Macau (Taipa-Coloane)

Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

ZIM Integrated Shipping ServicesZIM Integrated Shipping ServicesNEWAVE08/AgenTeamNEWAVE08/AgenTeam

02 July 2008/Macau (Taipa-Coloane)02 July 2008/Macau (Taipa-Coloane)

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

Auckland/pmAuckland/pmtaipei/vptaipei/vp

singapore/pmsingapore/pmbangkok/dpmbangkok/dpm

flandersflandersamsterdam/MPamsterdam/MPss

barcelona/mbarcelona/maa

Kuala Lumpur/CMKuala Lumpur/CMlisbon/mlisbon/maa

dublin/pmdublin/pmbuenos airesbuenos aires

são paulosão pauloWarsaw/MPWarsaw/MPss

london/mplondon/mpss

milanmilanSEOUL/MSEOUL/Maa

mexico d.f./mmexico d.f./mistanbul/dpmistanbul/dpm

dubai/rfmdubai/rfmoman/rfmoman/rfm

usausastockholm/mpstockholm/mpss

mauritius/pmmauritius/pmjohannesburgjohannesburgbucharest/CMbucharest/CM

Slides at …Slides at …

tompeters.comtompeters.com

Thank you Thank you Ike, Ben Ike, Ben

and Delawareand Delaware

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all

through the through the develodeveloppmentment of friendshiof friendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his

future coalition commandfuture coalition command

GiveGive good good tea! tea!

““eighty eighty percent of percent of success is success is

showing up.” showing up.” ——Woody AllenWoody Allen

l (+21) l (+21) = L(-= L(-21)21)

ThankThank you Rich! you Rich!

““Mapping your Mapping your competitive competitive position”*position”*

or …or …

*Rich D’Aveni/*Rich D’Aveni/HBRHBR

The The “Have “Have you …”you …”

50*50**See *See Appendix OneAppendix One

1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * *Note: See Note: See APPENDIXAPPENDIX ONEONE for full list for full list

#1#1

“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 Buy a very large one very large one and just waitand just wait.”.”

—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data collected detailed performance data

stretching back stretching back 4040 years for years for 1,0001,000 U.S. U.S. companies.companies. They found that

none of the long-term

survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse

they did.” —Financial Times—Financial Times

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

#1.1#1.1

#1 Exporter?#1 Exporter?

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

Reason??!!Reason??!!

MittelstandMittelstand

Or …Or … Goldmann Goldmann ProduktionProduktion

ss(11/50%/$5M/”dip and coat,” expensive (11/50%/$5M/”dip and coat,” expensive

pigments vs “through coloring,” fades Bekro pigments vs “through coloring,” fades Bekro Chemie)Chemie)

#2#2

1/421/42

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the software. software. We fixed them by doing it over and over, again We fixed them by doing it over and over, again and again.and again. We do the same today. While our competitors We do the same today. While our competitors are still sucking their thumbs trying to make the design are still sucking their thumbs trying to make the design

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##55..

By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage

Excellence1982: The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

#3#3

2-2-5/425/42

De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

Decentralization Decentralization vs Centralization vs Centralization

= “That’s = “That’s AllAll There Is”There Is” (from (from

childrearing 101 to the childrearing 101 to the Federalist PapersFederalist Papers to Org.2007)to Org.2007)

Ex-e-Ex-e-cu-cu-

tion!tion!

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)

(2)(2) sum of sum of Milestones =Milestones = project project

(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

CF: CF: 30%30% (no (no

salesfolk)salesfolk)

MH: MH: 80%80% (salesfolk)(salesfolk)

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

6:15A.M6:15A.M..

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

66:15A.M. :15A.M.

#3.1#3.1

K.i.s.s.K.i.s.s.*Keep It Simple, Stupid*Keep It Simple, Stupid

90K in U.S.A. 90K in U.S.A. ICUsICUs on any on any given day; given day; 178178 steps/day steps/day

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

Case: The Case: The “simple” “simple” Checklist!Checklist!

****Peter PronovostPeter Pronovost, Johns Hopkins, , Johns Hopkins, 20012001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure **Nurses/permission to stop procedure if doc, other not following checklistif doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

**Docs, nurses make own **Docs, nurses make own checklists on whateverchecklists on whatever process-procedure they choose process-procedure they choose**Within **Within weeksweeks, average stay in , average stay in

ICUICU down down 50%50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

“Beware of the Beware of the tyranny of making tyranny of making SmallSmall

Changes to Changes to SSmallmall Things. Things.

Rather, make Rather, make BiBig g Changes to Changes to BiBigg

Things.”Things.” —Roger Enrico, former Chairman, —Roger Enrico, former Chairman,

PepsiCoPepsiCo

““Beware of the tyranny of making Beware of the tyranny of making SSmallmall Changes to Changes to

SSmallmall Things.Things. Rather, Rather, make make BigBig Changes to Changes to Big Big ThingsThings … …

using using Small, Almost Small, Almost Invisible Invisible

Straightforward Straightforward LeversLevers with with BiBigg

SSyystemic Imstemic Imppactact.”.” —TP—TP

““Everything matters”Everything matters”

-80%-80%Source:Source: Nudge,Nudge, Richard Thaler and Cass Richard Thaler and Cass

Sunstein, etching of fly in the urinalSunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportreduces “spillage” by 80%, Schiphol Airport

#4#4

+1/+1/4242

X X =XFX*=XFX*

**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

**Stanford/Hagadorn/Interdisciplinary **Stanford/Hagadorn/Interdisciplinary raison d’ raison d’êêtretre**Conoco/geologists-geophysicists**Conoco/geologists-geophysicists**Old HP/R&D-Sales**Old HP/R&D-Sales**Schlumberger IPM-IBM Global Services-**Schlumberger IPM-IBM Global Services- UPS Logistics, HP-EDS (“bet the company” on UPS Logistics, HP-EDS (“bet the company” on integrating others’ product and service integrating others’ product and service delivery throughout the supply chain) delivery throughout the supply chain)**GSK/7 CEDDs**GSK/7 CEDDs**Chiat/Day**Chiat/Day**Batalden/DHMC/“clinical microsystems”**Batalden/DHMC/“clinical microsystems”**JCS assignment pre-Flag**JCS assignment pre-Flag**Etc.**Etc.**Etc.**Etc.

The “XF-50”: 50 Ways The “XF-50”: 50 Ways to Enhance to Enhance CrossCross--

Functional Functional EffectivenessEffectiveness and and

Deliver Speed, Deliver Speed, “Service Excellence” “Service Excellence”

and “Value-added and “Value-added Customer ‘Solutions’”Customer ‘Solutions’”

1. 1. It’s our organization to make work—or not. It’s not “them,” the It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. outside world that’s the problem. The enemy is us.The enemy is us. Period. Period.

2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore.now and forevermore.3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing OffenseAutomatic Firing Offense. Period. No . Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.)is, make one and all aware why the axe fell.)4.4. Everything Everything on the Web. This helps. A lot. (“Everything” = Big word.)on the Web. This helps. A lot. (“Everything” = Big word.)5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy.imperative in a Burn-the-Silos strategy.

6.6. Project managers rule!!Project managers rule!! Project managers running XF (cross- Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies such and treated as such. (The likes of construction companies have practiced this more or less forever.)have practiced this more or less forever.)

7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is pure and simple a product of XF co-operation; “the product isis the co-operation” is not much the co-operation” is not much of a stretch.of a stretch.

Never Never waste a waste a lunch!*lunch!*

????????

% XF % XF luncheslunches**

*Measure!*Measure!

8.8. “XF work” is the direct work of leaders! “XF work” is the direct work of leaders!9.9. “Integrated solutions” = Our “Culture.” “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) (Therefore: XF = Our culture.)10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything other than delivering on petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise.the (big) Client promise.11.11. All functions are created equal! All functions are created equal! All functions contribute equally! All = All. All functions contribute equally! All = All.12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam!with flying colors, the “works well with others” exam!13.13. We are all in sales! We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver.salespeople are “quarterbacks” who make the system work-deliver.

14. 14. We all invest in “wiring” the Client organization—we We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part develop comprehensive relationships in every part (function, level) of the Client’s organization. (function, level) of the Client’s organization. We pay We pay special attention to the so-called “lower levels,” short special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at on glamour, long on the ability to make things happen at the “coalface.”the “coalface.”

15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is to become a raving which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation.fan of XF co-operation.

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

1.1. Most Tries Wins Most Tries Wins2.2. DECENTRALIZATION.DECENTRALIZATION.3.3. EXECUTION. EXECUTION.4.4. ACCOUTABILITY. ACCOUTABILITY.5.5. 6 6:15A.M.:15A.M.6.6. XFX XFX

#5#5

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

“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. [Yet] I came to see in my time at IBM that culture

isn’t just one aspect of the

game ——it is the it is the gamegame.”.” —Lou Gerstner,

Who Says Elephants Can’t Dance

#5.1#5.1


R.O.I.RR.O.I.R..

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

FYI:FYI: “Relationship “Relationship power” = power” =

““MonopolyMonopoly powerpower””

FYI:FYI: “Sustainable “Sustainable competitive competitive

advantage” = advantage” = “Relationship-based “Relationship-based

advantage” advantage” (period.)(period.)

#5.2#5.2

““The four most The four most important words in any important words in any

organizationorganization

are …are … ‘What do ‘What do you think?’you think?’ ” ”

Source: courtesy Dave Wheeler,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of

original unknown (0609.08) original unknown (0609.08)

1818””

Source: Source: How Doctors ThinkHow Doctors Think, Jerome Groopman, Jerome Groopman

#5.3#5.3


Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

#5.4#5.4

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

#5.5#5.5

Attending toAttending to the “Last 98%”:the “Last 98%”:

The New The New Management Management

“Science,” or …“Science,” or … “ “Hard Is Soft,Hard Is Soft, Soft Is Hard”Soft Is Hard”

NOTE: Complete section at APPENDIX 2NOTE: Complete section at APPENDIX 2

S = f( ___ )S = f( ___ )Success Is aSuccess Is a

Function of …Function of …

S = ƒ(#&DR; -2L, -3L, 4L; I&E)S = ƒ(#&DR; -2L, -3L, 4L; I&E)Number and depth of relationships 2, 3, and 4 levels down,Number and depth of relationships 2, 3, and 4 levels down,inside and outside the organizationinside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea is to haveSucking down is more important than sucking up—the idea is to havethe entire organization working for you.the entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends, number of lunches with people not in my functionNumber of friends, number of lunches with people not in my function

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance function-organizationNumber of friends in the finance function-organization

S = ƒ(OF)S = ƒ(OF)Oddball friendsOddball friends

S = ƒ(PDL)S = ƒ(PDL)Purposeful, deep listening—Purposeful, deep listening—this is very hardthis is very hard

#6#6

EXCELLENCE.EXCELLENCE.

VALUE ADDED. VALUE ADDED.UP THE LADDER.UP THE LADDER.

NoT Optional.NoT Optional.

The Value-added Ladder/TRANSACTIONSTRANSACTIONS

ServicesServicesGoodsGoods

Raw Materials Raw Materials

#6.1#6.1


VALUE-ADDED LADDER.VALUE-ADDED LADDER. SOLVE IT. SOLVE IT.

““M” = M” = $0$0

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

And the “M” Stands for … ?And the “M” Stands for … ?

Gerstner’s IBM:Gerstner’s IBM: “Systems“Systems Integrator of choice.”/BW Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global Services*IBM Global Services* (*Integrated Systems(*Integrated Systems

Services Corp.): Services Corp.): $$55B55B

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic

Manager for Corporate Manager for Corporate AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

MasterCard MasterCard AdvisorsAdvisors

California Closets:California Closets: “a “a whole-life upgrade, not whole-life upgrade, not just a tidy bedroom.”just a tidy bedroom.” —WSJ/0329.07, —WSJ/0329.07, “Why the Container-“Why the Container-

Store Guy Wants to Be Your Therapist”Store Guy Wants to Be Your Therapist”

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions



““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success through Customer Success through ImImpplementedlemented

Gamechanging Solutions*Gamechanging Solutions*ServicesServicesGoodsGoods


**Subject-matter Professionals andSubject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organization Effectiveness Experts (Degree: MBA,

Organizational Psychology)Organizational Psychology)

#6.1.1#6.1.1


SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.PSF. (PSF++)PSF. (PSF++)

“Organizations will Organizations will still be critically still be critically important in the important in the

world, but as world, but as ‘organizers,’ not ‘organizers,’ not

‘employers’!”‘employers’!” — Charles — Charles

HandyHandy

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

#6.1.2#6.1.2

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

The PSF35: The Client Experience11. Always team with client: “full partners in 11. Always team with client: “full partners in achieving memorable results” achieving memorable results” (Wanted: “Chimeras(Wanted: “Chimeras of Moonstruck Minds”!) of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in-12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project Planet Team for the Project13. Client Team Members routinely declare that working with us13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” was “the Peak Experience of my Career”14. The job’s not done until implementation is14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) “100.00% complete” (Those who don’t “get it” must go)

15.15. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL THE CLIENT HAS EXPERIENCED “CULTURE THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” CHANGE”16.16. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT TAKEN PLACE-ROOT (“Teach a man to fish …”)(“Teach a man to fish …”)

17.17. The Final Exam: The Final Exam: DID WE MAKE A DRAMATIC,DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? LASTING, GAME-CHANGING DIFFERENCE?

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

Ideal “finance staffer”: Ideal “finance staffer”:

**Full-scale “business partner”**Full-scale “business partner” [“CFO”?] to the/each department [“CFO”?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance

#6.1.3#6.1.3

Psf.Psf.Bedrock.Bedrock.

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)

Big Idea:

“Corporation” as “Corporation” as

Mega-“PSFMega-“PSF”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

#6.2#6.2


VALUE-ADDED LADDER.VALUE-ADDED LADDER. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘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

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding Experiences*Experiences*

Customer Success/Implemented Customer Success/Implemented Gamechanging SolutionsGamechanging Solutions



**Theatrical Skills (Degree: Theater Arts)Theatrical Skills (Degree: Theater Arts)

<TG<TGWWvs.vs.

>TG>TGRR[Things Gone [Things Gone WRONGWRONG/Things Gone /Things Gone RIGHTRIGHT]]

2-cent 2-cent candycandy

#7#7

We We areare the the companycompany we keepwe keep

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—

consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group

almost always did better. … almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

#9#9

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.LEADERSHIP. LEADERSHIP.

THE 9Ps. THE 9Ps.

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““I am a … I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

—Ben Zander—Ben Zander

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

MBWAMBWA

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi



PositivePositive..

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant



PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

#10#10

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

Excellence IsExcellence Is a Universal Striving.a Universal Striving.

If Not Excellence, If Not Excellence, What? If not What? If not

excellence now, when?excellence now, when?

Documents

Tom Peters’ EXCELLENCE. ALWAYS. ZIM Integrated Shipping Services NEWAVE08/AgenTeam 02 July 2008/Macau (Taipa-Coloane)