NOTE: To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts:
Showcard Gothic, Ravie, Chiller and Verdana Tom Peters X25* EXCELLENC E. ALWAYS.
Thirteen Guru Gaffes 28 February 2008 *In Search of Excellence 1982-2007 Title. Slides at tompeters.com
Tom Peters X25* EXCELLENCE. ALWAYS. Maybe. ALTERNATE Master/Gaffes 12 November 2007 *In Search of Excellence 1982-2007
Better title? The excellence bit and the always bit are fine; its the analysis thereof I wish to call into question here.. The guru Gaffes hall of shame: the Over-rated
Eight! The Overrated Eight! The Over-rated Eight: Big companies! Public companies!
Cool industries! Stability! Famous CEOs! Hard stuff! Success! Plans! These are a few of the implicit or explicit things that
most all gurus [incl. yrs. truly much of the time] focus on. That are mostly or wholly wrong. #1 Big companies !
Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! It seems that all we talk about are Big Cos.
Too big to manage? Citi/Chuck Prince? Thats the emergent conclusion from Citis woes. (Yikes: Some are muttering the same thing about GE.)
You dont get better by being bigger. You get worse. Dick Kovacevich: The Bigger They
Are: Toyota Takes a Tumble on Quality headline, International Herald, 1103-4.07 Scale? Microsofts Struggle With
Scale Headline, FT, 09.2005 Troubling Exits at Microsoft Cover Story, BW, 09.2005
Too Big to Move Fast? Headline, BW, 09.2005 Biters Bit: How Web Giants Are Losing Business as Startups Scurry In. FT, 0725.07 (The disruptive innovators of the first
Silicon Valley boom may be failing to keep up with a new wave of arrivals.) Kovacevich ran Wells Fargo brilliantly his other passion was a focus on revenue growth rather than a diet of cutting, cutting, cutting. (Reminds me of the subtitle to my 1997 book, Circle of Innovation: You cant shrink your way
to greatness.) Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals. Financial Times, 0329.07, on possible Barclays-ABN Amro merger (When it
comes to asking the stock market whether bigger banks are better, the current answer is a resounding no. Citigroup analysis, 2006) When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee,
Im sure there are success stories out there, but at this moment I draw a blank. answered: Mark Sirower, The Synergy Trap
Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes but Im not sure were actually innovating. Our challenge is money,
to take nanotechnology into the future, to do personalized medicine Jeff Immelt/2005 Winning the Merger Game Is Possible
--Lots of deals --Little deals --Friendly deals --Stay close to core competence --Strategy is easy to understand Source: The Mega-merger Mouse Trap/Wall Street Journal/02.17.2004 / David Harding & Sam Rovit, Bain & Co./re ComcastDisney
Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference. Peter Job, former CEO, Reuters
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 Buy a very large one and just wait.
answer seems obvious: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics : 39 members of the Class of 17 were alive in 87; 18 in 87
F100; 18 F100 survivors significantly underperformed the market; Forbes100 from 1917 to 1987 2 GE
Kodak, just (2%), & outperformed the market from 1917 to 1987. S&P 500 from 1957 to 1997: in 97;
74 members of the Class of 57 were alive 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 Mr. Foster and his McKinsey
colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They none found that 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 Its just a fact: Survivors underperform.
Dick Foster Hope For Breakup Advocates headline, FT, 1105.07, re Citigroup
Jeff Bewkes, the Next Boss of TimeWarner, Is Likely to Break Up the Company headline, Economist, 1110.07 Private Equity-financed
Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, skin in the game *CEO, 100% of time on the biz *Merit! Merit!
*Motivated oversight *Worst case: Rape & Pillage None. Data drawn from the real world attest to a fact that is beyond Everything
in existence tends to deteriorate. our control: Norberto Odebrecht, Education Through Work Odebrecht is a big (heavy industry) Brazilian engineering company.
Welcome to the Club of Shattered Dreams: Of Koreas Top 100 companies in 1955, only 7 were still on the list in 2004. The 1997 crisis
destroyed half of Koreas 30 largest conglomerates. Source: KET Issue Report, Kim Jong Nyun (14.05.2005) Korea, too. Everything in existence tends to deteriorate/ Buy a very large one and just wait
= License (Mandate!) for Radical Action The Big Co situation is nigh on hopelessso you might as well go for it. Youve
nothing to lose. #1 Exporter? #4 Japan #4 Japan #2T China #2T USA
#4 Japan #2T china #2t USA #1 Germany With just 80-million people,
insanely high wages. Reason? Daimler? BASF? Siemens? Commerzbank?
Reason!!! Mittelstand Middle-sized stars. (Of long standing.*) Global masters. Highvalue niches. *The German secret Or
Goldmann Produktion s (11/50%/$5M/dip and coat, expensive pigments vs through coloring, fades Bekro Chemie)
When I studied them, Goldmann had but 11 people, most PhDs, and a 50% world market share! GEOBRA/Playmobil Trumpf Rational Goldmann Produktions
Bavaria: Mittelstand within Mittelstand Place to start over post-WWII 13 million 6th in EU if stand-alone (CA #5) 4% unemployment Munich government pro-business 30 universities (3 of 3 leading in R&D, with Baden50% German Wuerttemberg)
patents (with Baden-Wuerttemberg) SMEs & Big Cos Hot finance communities lions share of German startups Media startups (SF: tech + media) Source: CNBC European Business, November 2007
City-states: Global Mittelstand? Athens Venice Florence Rome Antwerp Amsterdam London New York
Singapore Hong Kong Singapore Silicon Valley (California) Dubai (et al) Principal Mittelstand companies I studiedI may be the only American whos made a serious
study of the Mittelstand?? Skunk Camp #1: American Mittelstand (A.W.O.L.: F500) Frank Perdue/ Perdue Farms (It takes a tough man to make a tender chicken.) Tom Malone/ Milliken and Company
Don Burr/ People Express Tom Monaghan/ Dominos Pizza Stew Leonard/ Stew Leonards Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries
Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs (Bob almost single-handedly invented what we now call knowledge management.) By accident I became enamored with the largely unsung American Mittelstand. Why? They came to my big seminars the F500 didnt. (In Search of Excellence
was pure Big Co.) china ! Chinas success has effectively been Mittelstand-ish. The state-run giants have staggered alongthe successful startups (many, many are
unsuccessful) have been the Chinese growth engine. #2 Public companies ! Cool industries!
Stability! Famous CEOs! Hard stuff! I rarely use Private/Family Co. examples. I aint alone! Family Businesses
Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth
Source: John Davis, HBS GEOBRA/Playmobil Trumpf Rational Goldmann Produktions Private.
Skunk Camp #1: American Mittelstand (A.W.O.L.: F500) Frank Perdue/ Perdue Farms (It takes a tough man to make a tender chicken.) Tom Malone/ Milliken and Company Don Burr/ People Express Tom Monaghan/ Dominos Pizza
Stew Leonard/ Stew Leonards Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs (Bob
almost single-handedly invented what we now call knowledge management.) Mostly private. 10.6 10.6 million women-owned companies in the U.S. Most
are private. U.S. firms owned or controlled by Women: 10.6 million (48% of all firms) Growth rate of Women-owned firms vs all firms: 3X Rate of jobs created by Women-owned firms vs all firms: 2X Ratio of total payroll of Women-owned firms vs total for Fortune 500 firms: >1.0
Ratio of likelihood of Women-owned firms staying in business vs all firms: >1.0 Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all firms: 2X Source: Margaret Heffernan, How She Does It U.S. Women-owned Biz
U.S. employees thereof > F500 employees worldwide Source: Martha Barletta, Marketing to Women The growth and success of womenowned businesses is one of the most profound changes
taking place in the business world today. Margaret Heffernan, How She Does It 94% of loans to
women* *Microlending; Banker to the poor; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner Girls education #1: Yields highest return on investment
in developing world* *better nutrition for family. Better kids education. Better health. Higher family income. Lower birth rate. Etc. Source: Larry Summers, as reported in The Payoff From Womens Rights, Isobel Coleman, Foreign Affairs, May-June 2004 #3
Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff!
Success! Jims Group Jims Mowing Canada Jims Mowing UK Jims Antennas Jims Bookkeeping
Jims Building Maintenance Jims Carpet Cleaning Jims Car Cleaning Jims Computer Services Jims Dog Wash Jims Driving School Jims Fencing Jims Floors
Jims Painting Jims Paving Jims Pergolas [gazebos] Jims Pool Care Jims Pressure Cleaning Jims Roofing Jims Security Doors Jims Trees Jims Window Cleaning
Jims Windscreens Note: Download, free, Jim Penmans book: What Will They Franchise Next? The Story of Jims Group Damn few dog-wash companies in guru presentations! Basement
Systems Inc. *Basement Systems Inc. *Larry Janesky *Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007:
$62,000,000 Love it! Big bucks from dry basements!! etc. PRSX/Paragon Railcar
Salvage* *Salvaged railcars into bridges, etc. Im doing a huge landscaping project. One bit is to be a little bridge over a little stream. Upon Googling little bridge over little stream, I found the Essence of the/an Economynumerous firms doing little bridges. These guys salvage old rail
cars, and use the frames for little bridges over little waterways. Dont ya love it? *Lived in same town all adult life *First generation thats wealthy/ no parental support *Dont look like millionaires, dont dress like millionaires, dont eat like millionaires, dont act like millionaires
*Many of the types of businesses [they] are in could be classified as dullnormal. [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors Source: The Millionaire Next Door, Thomas Stanley & William Danko Ichironomics
Great term! (See next slide.) Ichironomics Spokane, like Minneapolis-St Paul, refuses to bet the economy on one or two industries. Rather, it practices what one city booster calls Ichironomics. Like the Seattle Mariners center fielder, Ichiro Suzuki, we try to hit singles and doubles.
We want to improve the overall conditions for small businesses, not chase the large employer.Rich Karlgaard, Forbes (NB: In 2004 Suzuki broke the all-time record for hits in a single season, with a staggering 262.) (NB II: In 2007 the mayor of Lisbon reduced the amount of time to get a business license from weeks or months to, literally, minutes.) #4
The Over-rated Eight: Big companies! Public companies! Cool industries! Stability! Famous CEOs!
Hard stuff! Success! Plans! Q4/2006 +500,000 = ? Source: Barrons 0922.07
Jobs created in the U.S. in Q4 2006. U.S. has deserved great rep in job creation. Q4/2006 +500,000 = +7,700,000 -7,200,000 Source: Barrons 0922.07
You get to +500K jobs by destroying 7.2 million, creating 7.7 millionin one quarter. Talk about churn! Natural selection is death. ... Without huge amounts of death, organisms do
not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ... The Cobra Event The last word: There
is no last word. Headline, Wall Street Journal, Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed
3 October 2007: The Wal*Mart Era, the retailers time of overwhelming business and social influence in America, is drawing to a close. Sentence #1:
Built to last. Ha! Cover, Newsweek, 05 November 2007: Takedown? ONCE HAILED AS A WORLDBEATER, THE INTERNET COLOSSUS NOW HAS REAL RIVALS ALL OVER
THE WORLD. [text followed by a massive rendition of the GOOGLE logo] Built to last. Ha! Success Kills!
The more successful a company, the flatter its forgetting curve. Gary Hamel and C.K. Prahalad Wanted* ** : Corporate
Senility! *Desperately! ** The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock It is generally much easier to kill
an organizati on than change it substantially. C.E.O. to
C.D.O. Wanted: Chief Destruction Officer! Built to Last vs Built to Change/
Rock the World Ill take the latter. (Lasting per se has never struck me as much of an aspiration. Apple lasts by re-inventing the world time and again. Great!) TP#1*:
Netscape ! My favorite company. Around as an independent for just a few years changed the world. Five hundred years before Christ in a little town on the far western border of the settled and civilized
world, a strange new power was at work. Athens had entered upon her brief and magnificent flowering of genius which so molded the world of mind and of spirit that our mind and spirit today are different. What was then produced of art and of thought has never been surpassed, and the stamp of
it is upon all the art and all the thought of the Western world. Edith Hamilton, The Greek Way GM25/5075: Built to last???? Even GM really gave us only 25 dominating years. Terrific,
but hardly forever. Warren Bennis & Patricia Ward Biederman/ Great Groups Dont Last Very Long!
Organizing Genius: Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process.
Joseph Schumpeter: the Gales of Creative Destruction. Legendary churnmeisters. Palo Alto/30 California/35
I lived in California-Silicon Valley for three decades plus. Makes you believe in (1) churn, (2) death, (3) the possibility of knocking off the impregnables. #5
Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! Success!
Plans! $36B/98 minus $675M/ Chrysler had market cap of $36 billion when Daimler
bought them in 1998. In effect, Daimler had to pay the private equity gang 9 years later to take Chrysler off their hands. capitalizati on lost per day, 19982007: $10,000,00
Holy shit! denie d he should Holy shit!
*Lived in same town all adult life *First generation thats wealthy/ no parental support *Dont look like millionaires, dont dress like millionaires, dont eat like millionaires, dont act like millionaires *Many of the types of businesses [they] are in could be classified as dull-normal. [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets,
dry cleaners, re-builders of diesel engines, paving contractors Source: The Millionaire Next Door, Thomas Stanley & William Danko Deserved its popularitya light year away from typical guru Stuff. CEOs worth talking aboutemulating! #6
Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff!
Success! Hard Is Soft Soft Is Hard The Peters-Waterman mantra that rocked the world of Strategy uber alles, circa 1980.
True or False Axiom: Setting loose a gaggle of the best and the brightest with advanced degrees in math and economics from the worlds best universities will result in permanently reduced risk in global financial markets.
Quant nightmares, circa 2007. True Stan ONeal Chuck Prince Bill Sharpe & The Nobels
Stan and Chuck lost their jobs for overquanting itderivatives of derivatives, supposedly (Ha!) taming risk. Sharpe won a Nobel in econ for providing the base for this excellent adventurethe Nobel ought to be pulled. (By the way, the econ Nobel aint actually a Nobel.) Dumb Bastards: Hard?????
Mark-to-market (Whats market???? What market????) CDOs/Consolidateddebt Obligation (Value of underlying asset??????) (Value of $64B super-senior [super-safe] CDOs at Citi???????) Postscript: Bye, bye Stan/Merrill and Chuck/Citi.
Youre gonna have to learn to live on $100 million or so [Stan/$160M severance], I guess. Ultimate soft turns out to be the supposedly ultimate hardthe debt instruments created by the quants to reduce-eliminate portfolio risk.
False Nassim Nicholas Taleb Warren Buffett Buffet questioned derivatives (hes a socalled value investor); so did NNT see next slide. Medicine used to kill
more patients than it savedjust as financial economics* endangers the system by creating risk. Nassim Nicholas Taleb, The Pseudo- science Hurting Markets, FT, 1024.07 (NNT is author of Fooled By Randomness, The Black Swan)
* Nobel-crowned methods of modern portfolio theory; Sveriges Riksbank Prize in Economic Science in Memory of Alfred Nobel Hard Is Soft Soft Is Hard Hard Is Soft (Plans,
# s) Soft Is Hard (people, customers, values, relationships)) The 7-S Model Strategy Structure Systems
Style Skills Staff Super-ordinate goal McKinsey 7-S model developed by Bob Waterman and yrs. truly in 1979still in use.
The 7-S Model Hard Ss (Strategy, Structure, Systems) Soft SS
(Style, Skills, Staff, Super-ordinate goal) The 7-S Model Strategy Structure Systems Style (Corporate Culture, The way we do things around here)
Skills (Distinctive Competence/s) Staff (People-Talent) Super-ordinate goal (Vision, Core Values) If I could have chosen not to tackle the IBM culture head-on, I probably wouldnt 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 isnt just one aspect of the it is the game.
game Lou Gerstner, Who Says Elephants Cant Dance Gerstner, the arch-enemy of my soft stuff while he was at McKinsey is forced to the wall! (I love it!)
Hard Is Soft Soft Is Hard 95 95%: Understanding
the minds eye of another person What I learned from my years as a hostage3 negotiator is that we do not have to feel powerlessand that bonding
is the antidote to the hostage situation. George Kohlrieser, Hostage at the Table The terms hard facts, and the soft stuff used in business imply that data are somehow real and strong while emotions
are weak and less important. George Kohlrieser, Hostage at the Table The capacity to develop close and enduring relationships is the mark of a leader. Unfortunately, many leaders of major companies believe their job is to create the strategy, organization structure and organizational
processesthen they just delegate the work to be done, remaining aloof from the people doing the work. Bill George, Authentic Leadership Be kind, for everyone you meet is fighting a great battle.
Philo of Alexandria THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF
THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. Relationships (of all varieties) :
The Managers Book of Decencies: How Small /gestures Build Great Companies. Steve Harrison, Adecco
Womens Negotiating Strengths *Ability to put themselves in their counterparties shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude
*Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, Say It Like a Woman: Why the 21st-century negotiator will need the female touch Works Rewards
F: Relationships, respect, selfrealization. M: Title, salary, power. (In all my research with men, Ive never once heard a mention about the importance of relationships.) Source: Susan Rice, former Director of Communications, BBDO Europe (from A Dignified Woman)
Hard Is Soft Soft Is Hard flush $500,000 down the toilet in one
Spend $500K on a store upgrade same crappy staff attitude. Money wastedor worse. < CAPEX > People! Lock down your annual budget. Immediately go back and cut
capital spending about 20%, put $ $ saved into people! profits, people or people, profits? Our Mission
To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
#1/10 0 Best Companies to Wegmans Best company to work for in 2005 is a regional grocery chainpeople
excellence not limited to sexy Genentechs and Googles! Hard Is Soft Soft Is Hard Starbucks big secret: Hire
for Smiles!! (Just try and get a typical HR type to buy into that!) A man without a smiling face must not open a shop. Chinese Proverb
Its simple, really, Tom. Hire for s, and, above all, promote for s. Starbucks middle manager/field Character is more crucial now than ever, because in times of
great uncertainty past performance is no indicator of future performance. Experience falls away and all youre left with is character. David Rothkopf, founder of a firm that helps chief executives manage risks Promote for mostest smiles.
Hard Is Soft Soft Is Hard 2 Starbucks founder Schultz visits 25 stores a week hands on forever!
MBWA Bob Waterman and I found Managing By Wandering Around at a much smaller HP, in 1980. We instantly fell in love. It perfectly symbo0lized
all we were fighting for! You = Your calendar* *Calendars never lie Hard Is Soft
Soft Is Hard R.O.I.R . Return On Investment In Relationships
The Ultimate Hard Stuff relationships. Always have been! Always will be!
C(I) > C(E) Internal customers at least as important as external customerse.g., waiter totally dependent on chefs attitude toward him-her.
TAKE THIS QUICK QUIZ: 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 days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Courtesies of a small
and trivial character are the ones which strike deepest in the grateful and appreciating heart. Henry Clay Jim Jeffords oversigh
The Long story. White House failed to invite VT Senator Jim Jeffords to a bill signing ceremony. This was the tipping point that led JJ to re-register as an Independentand thereby cost Republicans control of the U.S. Senate. (Control of one of
worlds most august electoral bodies shifts on the basis of an invitation to a party! The deepest human need is the need to be appreciated. William James
Thank you!!! Thank you !!!
Ann FL LO OW WE ER R F
PO OW WE ER R P Relationships
(of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL
WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. PROBLEM Invariably! Success
Consult everyone on everything Thank you note carpet bombing Source: Roger Rosenblatt, Rules for Aging As you predicted
My mind is like a sieve Well, looks like we blew it [No, no. Us! Theres blame enough to go around.] Im really sorry. I have only one interest in you
whether or not you have instant and accurate knowledge about the location of the loo. When attacked ask a
question. George Kohlrieser, Hostage at the Table Talk to one person. Have a [private] conversation. Use humor. Talk about kids, etc. Ask questions. Be that
persons world. (Bond!) TP: Take the blame. Deserved or not. (Every issue has at least a little blameworthiness on both sides.) Taking the heat is a winning strategy!!
Have kids? [if yes:] What are they up to? So why dont we do this obvious stuff? Considered soft. Immediate priorities get in the way. The B-school
idea of business pervades. Comfort hanging out in our own confines. Easier. Uncomfortable with the relationship stuff. Problem solvers, not listeners [the 18second Doc]; impatient, not patient. Not the sales type. Like #s better than people. Damned hard work Answer/s?
Formal calendar discipline. A new todo list. A Life coach/Formal mentor (weekly, daily if you can afford it). Support group. If male, woman pal. Trainingincl. role play. Adopt Stephen Covey or Marshall Goldsmith. Report card. Constant, informal as well as formal 360 feedback. A great gotcha pale.g., monitors meetings, goes on sales calls. Sales training!!!!!
Volunteer community leadership work. Fundraising! Hard Is Soft Soft Is Hard The ultimate hard stuff is quant financethe product of pure math guy stuff, the stuff that men are made for! TAKE mark-to-market AND Super-senior CDOs [Consolidated Debt Obligations]. They are killing us!!
Mark-to-market? Fine! But what, my dears, is the market? Nobody has a sweet clueespecially the quants. The market/a market/any market is a function of the long-forgotten [by the quantshard guys, real men] underlying value of the real [not modeled] asset. [E.g. The original mortgage by real people on a real house]. The quant-hard guys-real men mega-models know everything about everythingand nothing about nothing about what matters, the actual value of the actual loan. Citigroup has no less than $60 billion+ tied up in Super-senior CDOs [thought super-safe only weeks agoby the quants]and they have
no f-ing clue as to the real value of any of it! Soft? Hard? Bob Waterman and I, in 1980, developed a mantra in those days of yore when strategy [strategic plans] was everything. We said: Hard is soft. Soft is hard. The readily-manipulable numbers are the true soft stuff. The relationships-leadership-culture-action bias are the true hard stuff.
Source: TP post, tompeters.com, 1112.07 Why is it that your average business person has such a hard time being human? I often wonder if the sole point of business language is to de-humanize those doing business. I struggle to find another explanation. To the rest of the world, emotion is a normal, everyday, important part of life... and people who don't get that are generally considered jerks. Only managers don't get
this. I've found that the simplest (and most powerful) competitive advantage comes from CARING. Genuinely caring about people (customers and partners) covers a multitude of other shortcomings. CARING about people is the best marketing strategy and the best management method. The funny thing is that in such a soulless business climate, CARING is that much more competitiveand
translates nicely to financial performance as well! It also translates into a much fuller and happier life Posted at tompeters.com by AJ Hoge at November 12, 2007 8:11 PM W. Donald Schaefer 1921-Forever He Cared
William Donald Schaefer Mayor of Baltimore He Cared. Hard Is Soft Soft Is Hard
Design is treated like a religion at BMW. Fortune You know a
design is good when you want to lick it. Steve Jobs Source: Design: Intelligence Made Visible, Stephen Bayley & Terence Conran Franchise Lost!
TP: How many of you 
really crave a new Chevy? It suddenly occurred to me
It suddenly occurred to me that in the space of two or three never hours he talked about cars.
Wexner Les Okay, you say product really is hard. Fair enoughbut my point is that the guy in question never talked about what he really does to please the customer.
Did one of em ever turn to the other and say: Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth
for our customers because of this deal? Did one of em ever turn to the other and say: Wow I wonder what unimaginable new tools,
otherwise not possible, will be quickly brought forth for my 19-year-old daughter Anne because of this deal? Consider a mega-merger. In the process of CEO-to-CEO negotiations,
is the desired outcome for the customer ever discussed? Hard Is Soft Soft Is Hard Better By Design: A National Strategy
NZ = Design Excellence New Zealand bets its future on design that shouts cool New Zealand. D
O* ** *** C Design Officer **Minister for Design ***Deputy Prime Minister for Design and Creativity *Chief
Hard Is Soft Soft Is Hard The sun is setting on the Information Societyeven before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the
We stand facing the fifth kind of society: the Dream Society. Future computer. products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.
Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business Saatchi & Saatchi CEO Kevin Roberts declares brands dead gives us lovemarks instead. Top 10 Tattoo Brands*
Harley . 18.9% Disney .... 14.8 Coke . 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex . 5.6 Nike . 4.6 Adidas . 3.1 Absolut . 2.6
Nintendo . 1.5 *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom What % of customers would tattoo the brand name somewhere on their body? (Talk about love.) L
C O* *Chief Lovemark Officer Ladder.2007: 4 of 7!
Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
Value-added beyond the old triumvirateraw materials, goods services. (Four new rungs.) $55 B Backtrack re soft: IBM in mid-90s effectively gives up on M
[machines]; starts selling solutions [IBM Global Services]; builds worlds biggest Professional Services Firm, at close to $60 billion. I. LAN Installation Co. II. Geek Squad. (3%)
(30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale Solutions Strategy Makeover. Local LAN [Local Area Network]
Installation Co. re-labels as Geek Squad. Prospers. Starts doing some work for electronics retailer Best Buy. Eventually BB purchases Geek Squad makes their solutions package the driver of a revised BB strategy for differentiation. Ladder.2007: 4 of 7!
Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials
New (4 of 7) Value-added Ladder: Plays to Womens Inherent Strengths! Lovemark/F Dreams Come True/F Spellbinding Experiences/F Gamechanging Solutions/F Services/F
Goods/M Raw Materials/M VA Teaching Moment Andy pointed to a molding, about halfway up the wall
PepsiCos former president, Andy Pearson, points out to TP that the billions upon billions of Pepsi market cap derived a hard half-roomful of Pepsi syrup. The Boot and Timberland
The Tomato/ Farmer and Campbells Farmer [hard] gets a couple of penniesCampbell gets $1.50 for a can off soup. $1.48 is soft stuff. Likewise Timberland, where farmer is de facto Chinese manufacturer.
#7 Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff!
Success ! Strive for Excellence. Ignore success.
Bill Young, race car driver (courtesy Andrew Sullivan) Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe;
... dream more than others think is practical; ... expect more than others think is possible. Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) EXCELLENCE .
Circa 1982. Excellence1982: The Bedrock Eight Basics 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven
6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties Breakthrough 82* People! Customers
! Action! Values! ExIn*: 1982-2002/Forbes.com $85,000 EI: $10,000 yields $140,050
DJIA: $10,000 yields *Forbes/Excellence Index /Basket of 32 publicly traded stocks Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press The winners in business have always played hardball. Unleash massive and overwhelming force. Exploit
anomalies. Threaten your competitors profit sanctuaries. Entice your competitor into retreat. Approximately 640 Index entries: Customer/s (service, retention, loyalty),
worker/s), 4. People ( 0. Innovation ( employees, motivation, morale, product development, research &
development, new products), 0. EXCELLENCE. ASPIRATION. 2006.
Why in the World did An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best):
concerted human potential in the wholehearted service of others.** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners The Peters Principles:
Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity.
Profit. Innovation. Design. Quality. Entrepreneurialism. Wow! Back to basics in Siberia business at its best. (I pondered this a loooooong time.)
2007. SEPTEMBER. SYDNEY. DRUCKER TRIBUTE. I have always believed that the
purpose of the corporation is to be a blessing to the employees. * Boyd Clarke *TP: An organization is, in fact and after all is said and done, a/the house in which most of us live most of the time.
Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which no less than Cathedrals in which the full and awesome
power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed In passionate pursuit of jointly are perceived soaring purpose and personal and
community and client service Excellence. The ultimate soft languagebut the basis for the maximum in hard results. (Think about it.) We are a Life Success
Company. Dave Liniger, founder, RE/MAX EXCELLENCE . the rules. Cause Space
(worthy of commitment) (room for/encouragement for initiative) Decency humane)
(respect, Another effort to summarize. The Managers Book of Decencies: How Small /gestures Build
Great Companies. Steve Harrison, Adecco What a title! I know nothing like it! It was much later that I realized
Dads 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 He was seriously interested in who you were and what
you had to say. college president. Sara Lawrence-Lightfoot, Respect You can make more friends in two months by becoming interested in other people than you can
in two years by trying to get other people interested in you. Dale Carnegie Cause Space (worthy of commitment)
(room for/encouragement for initiative-adventures) Decency (respect, grace,
integrity, humane) service (worthy of our clients & extended familys continuing custom)
excellence (period) Cause Space (worthy of commitment)
(room for/encouragement for initiative- adventures) Decency service (respect, grace, integrity, humane)
(worthy of our clients & extended familys continuing custom) excellence servant leadership
(period) Cause Space Decency service excellence servant leadership
If not Excellence, what? #8 The Over-rated Eight: Big companies!
Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! Success! Plans!
Recently I asked several corporate executives what decisions they had made in the last year that would not have been made were it not for their All had difficulty identifying one such decision. Since all of the plans are marked corporate plans.
secret or confidential, I asked them how their competitors might benefit from possession of their Each answered with embarrassment that their competitors would not benefit. Russell Ackoff (from Henry plans.
Mintzberg, The Rise and Fall of Strategic Planning) What makes God laugh? People making plans!
EXCELLENCE . one idea. 1966-2007. Try it. Try it. Try it. ry it. Try it. Screw up. Try it. Try it. Try
. Try it. Try it. Try i ry it. Screw it up. i Try it. Try it. try it. The only damned thing Ive learned in 40+ years! (No kidding!!!!!!) do things.
things We have a strategic plan. Its called doing things. Herb Kelleher captain yes.
Captain No. drill. This is so simple it sounds stupid, but it is amazing how few oil people really
you only find oil if you drill wells. understand that You may think youre finding it when youre drawing
maps and studying logs, but you have to drill. Source: The Hunters, by John Masters, Canadian O & G wildcatter try things. things We made mistakes, of course. Most of them were
omissions we didnt think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, were already on prototype version #5.
By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how
to planfor months. Bloomberg by Bloomberg Culture of Prototyping Effective prototyping may be the most
valuable core competence an innovative organization can hope to have. Michael Schrage Experimen t fearlessly
Source: BW0821.06, Type A Organization Strategies/ How to Hit a Moving Target Tactic #1 Reward excellent failures.
Punish mediocre successes. Phil Daniels, Sydney exec In business, you reward people for taking risks. When it doesnt work out
you promote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain. Michael Bloomberg (BW/0625.07) We
performed more operations. The Nobel laureate in medicine reveals [to me] his success secret vs others with eyes on the prize. SERIOUS
PLAY You cant be a serious innovator unless and until you are ready, willing and able to seriously play. Serious play is not an oxymoron; it is the essence of innovation.
Michael Schrage, Serious Play Learn not to be careful. Photographer Diane Arbus to her students (Careful = The sidelines, sidelines from Harriet Rubin in The Princessa)
!!!!!!!!!! Screw. things. Up. Fail . Forward.
Fast. High Tech CEO, Pennsylvania FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett The secret of fast
progress is inefficiency, fast and furious and numerous failures. Kevin Kelly Natural selection is death. ...
Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ... The Cobra Event
The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.Newsweek/ Paul Saffo try. Miss.
try. READY. FIRE! Courtesy EDS founder Ross Perot on EDSs strategy. No try.
No deal. deal You miss 100% of the shots you never
take. Intelligent people can always come up with intelligent reasons to do nothing. Scott Simon
Andrew Higgins , who built landing craft in WWII, refused to hire graduates of engineering He believed that they only teach you what you cant do in engineering school. He schools.
started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, Andrew Higgins won the war for us. He did it without engineers. Stephen Ambrose/Fast Company Life 101: A 40-year Reflection
Go on offense. Give everybody a shot. Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a success.
Extract lessons learned or best practices. Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs todays franchise. Centralize. Calcify.
Install taller walls. Write more rules. Become irrelevant and-or die. Think! vs. do!
The Limits of Systems Thinking: Surprise, Transformation & Excellence Through Spontaneous Discovery
F.A. Hayek described capitalism-a market economy as a spontaneous discovery process. [TP: Try it!] Plan it! Non-linearist: Try it! Linearist:
Linearist: hypothesize! Non-linearist: experiment! Excellence1982: The Bedrock Eight Basics 1.
2. 3. 4. 5. 6. 7. 8. A Bias for Action
Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties
I proceeded by trial and error and instinct, and each experiment led to/suggested another experiment (or 2 or 10) and to a greater understanding of potentialthe plan, though there was none, made itself. And it was far, far better (more ambitious, more interesting, more satisfying) than I would have imagined. In fact, the result to date bears little or no relationship to what I
was thinking about at the starta trivial self-designed chore may become the engine of my next decade; the brushcutting project is now leading Susan and I to view our entire property, and what it might becomerepresent, in a new light. F.A. My little summer project becomes a centerpiece of my future.
That wasnt the plan. I [spontaneously] discovered it along the way. Linearist: a>b* b>a** Non-linearist:
*Attitude shapes behavior Tradition says that your attitude determines your behavior. My sort says your behavior determines your attitudethe difference is philosophical and enormous.
EXCELLENCE . the Lessons. 1966-2007. 4/40 You caught me out. Now I say I
learned FOUR things in 40 years. DECENTRALIZATION . EXECUTION. ACCOUTABILITY. 6:15A.M. !!!!!!!!!!!!!!!!!
Ex-ecution! Execution is the job of the business leader. Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done Execution is a systematic process
of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability. Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
You caught me out. Now I say I learned FOUR things in 40 years. Conrad Hilton, at a gala celebrating his life, was asked, What was the most important lesson youve learned in you long and distinguished career? His immediate answer: remember
to tuck the shower curtain inside the bathtub Ex-e-cution! The Big Three Justas
The strategy is right. Its just a communications problem. The plan is dead onits just an implementation problem. Look, weve got the strategy rightwe just need to fix the people bit. idiots!
Enemy #1 I.C.D. Inherent/Inevitable/ Immutable Centralist Drift Note 1:
Note 2: Jim Burkes 1-word vocabulary: No. Organizations calcify. 30% MH: 80% CF:
(no salesfolk) (salesfolk) When Carly Fiorina ran HP, division honchos controlled 30% of their budgets. Under Mark Hurd, the #
jumped to 80%which is the key to accountability for execution. The Over-rated Eight: Big companies! Public companies! Cool industries! Stability!
Famous CEOs! Hard stuff! Success! Plans! The Esteemed Eight: SMEs! Private companies!
Dull industries! Productive churn! Laudable CEOs! Soft stuff! Excellence! Action-Execution! #9
One more. The nonsense nine! The Nonsense Nine: Big companies!
Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! Success! Plans! Not Just America
Boys Falling Seven Years Behind Girls at GCSE Level headline, Weekly Telegraph, UK, 10.25.06 THE NEW GENDER GAP: From kindergarten to grad
school, boys are becoming the second sex Cover story, BusinessWeek Girls Again Outshine Boys
In CBSE Class 12 Exams Source: Headline, Dateline New Delhi (0526.2007; Khaleej Times) Men [boys] race toward irrelevance. Forget China, India and the Internet: Economic
Growth Is Driven by Women. Headline, Economist, April 15, 2006, Leader, page 14
WOW!* *I believe itits been my lifes work, or a big part thereof, since 1996. But this in 2006 ices the Big Cake. Womens Trifecta+ *Buy *Wealth *Lead
+ECLIPSE MALES OF Women are
the majority market Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from womens increased
purchasing power; over the past decade the value of shares in Goldmans basket has risen by 96%, against the Tokyo stockmarkets rise of 13%. Economist, April 15 Repeat: ?????????
Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment) Houses 91% D.I.Y. (major home projects) 80% Consumer Electronics 51% (66% home computers) Cars 68% (90%) All consumer purchases 83% Bank Account 89%
Household investment decisions 67% Small business loans/biz starts 70% Health Care 80% Womens Commercial Purchasing Power Purchasing mgrs. & agents: 51%
HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women 1970-1998 Mens median income: +0.6% Womens median income: + 63%
Source: Martha Barletta, Marketing to Women Women Household spending: 80% Investment decisions: 53% Home improvement purchase decisions: 80% New cars: 60%+ Computers: 60%
Managers and professionals, overall: 51% New businesses started: 70%* 70% (*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.) Source: Marti Barletta, PrimeTime Women (2007) USA/F.Stats: Short n (Very) Sweet
>50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% of male pay in 1980 to 80% today; equal
if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) Source: Fara Warner, The Power of the Purse Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married couples, women provide >50% of income. 27% of
households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of market investors are women. Major Credit Union: pre Y2K, modal customer was 53-yearold family man; today, 46-year-old single working woman. Commercial: 51% purchasing managers are women. Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women:
70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% of cars (primary influence >80%). Source: Dont Think Pink: What Really Makes Women Buyand How to Increase Your Share of This Crucial Market, Lisa Johnson & Andrea Learned Internet users:
60%F* *manage their lives and the lives of their families Kelley Mooney, president, Resource Interactive The 91% Factor! More than 9 in 10 women age 35 - 49 say they either make or at least
equally influence their household purchases of home electronics. Source: Andrea Learned, co-author, Dont Think Pink 2.6 vs.
21 Women come out better on almost every count as investors They are less likely to hold a losing investment too long, and less likely to wait too long to sell a winner; theyre also less likely to put too much money into a single
investment or to buy a reputedly hot stock without doing sufficient research. Source: The Merrill report: When It Comes to Investing, Gender A Strong Influence on Behavior., Atlantic Women Beat Men at Art of Investing Source: Headline, Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are in and out of stocks more often; women choose carefully and hold on for the long term) JBQ: Stop Treating Women Investors Like Idiots! Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe theyre smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from
their wives. Source: Newsweek 01.08.01 Not just an American phenomenon. The most significant variable in every sales situation is
the gender of the buyer, and more importantly, how the salesperson communicates to the buyers gender. Jeffery Tobias Halter, Selling to Men, Selling to Women The Perfect Answer
Jill and Jack buy slacks in black Selling to men: The TRANSACTION Model The RELATIONAL Model
Selling to Women: Source: Selling to Men, Selling to Women, Jeffery Tobias Halter P-l-e-a-s-e Read Fara Warner: The Power of the Purse
Cases! Cases! Cases! McDonalds (mom-centered to majority consumer; not via kids) Home Depot (Do it [everything!] Herself) P&G (more than house cleaner) DeBeers (right-hand rings/$4B) AXA Financial
Kodak (women = emotional centers of the household) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want friends, not a blond stereotype) Source: Fara Warner/The Power of the Purse
Cases!! We simply had stopped being Mostly Moms
Women were either ignored in favor of focusing on men generally considered the industrys most frequent users and therefore its most important consumersor they were cast in the role of moms who were simply conduits to their children. Fara Warner, The Power of
the Purse, From Minority to Majority: McDonalds Discovers the Woman Inside the Mom McDonalds shifted its strategy toward women from one of minority consumers who served as a conduit to the important childrens market to one in which
women are the companys majority consumers and the main driver behind menu and promotion innovation. Fara Warner, The Power of the Purse, From Minority to Majority: McDonalds Discovers the Woman Inside the Mom 1. Men and women are different. 2. Very different.
3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Womens Market = Opportunity No. 1.
8. Men are (STILL) in charge. 9. MEN ARE TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Womens Market = Opportunity
My conclusionstongue not particularly in cheek. Since 1970, women have held two out of every three new jobs created. FT,
10.03.2006 Forget China, India and the Internet: Economic Growth Is Driven by Women. [Headline.] Even today in the modern, developed world, surveys show that parents still prefer to have a boy rather than a girl. One longstanding reason boys have
been seen as a greater blessing has been that they are expected to become better economic providers for their parents old age. Yet it is time for parents to think again. Girls may now be a better investment. Girls get better grades in school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn. And women are more likely to provide sound advice on investing their parents neste.g.: surveys
show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in the last couple of decades. Those women have contributed more to global GDP growth than have either new technology or the new giants, India and China. Source: Economist, Economist April 15, Leader, page 14
A Guide to Womenomics: The Future of the World Economy Lies Increasingly in Female Hands. (Headline.) More Continuing on page 73: stats: Around the globe since 1980, women have filled two new jobs for everyone taken by a man. Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers
and investors. Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from womens increased purchasing power; over the past decade the value of shares in Goldmans basket has risen by 96%, against the Tokyo stockmarkets rise of 13%. A couple of final assertions: (1) It is now agreed that the single best investment that can be made in the developing world is educating girls. (2) Also, surprisingly, nations with the highest female laborforce
participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest participation rates, such as Italy and Germany, have the lowest fertility rates. Source: Economist, April 15, page 73 AS LEADERS, WOMEN
RULE: New Studies find that female managers outshine their male counterparts in almost every measure Lawrence A. Pfaff & Assoc. 2 Years, 941 mgrs (672M, 269F);
360 feedback Women: better in 20 of 20 categories; 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)
Womens 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. Judy B. Rosener, Americas Competitive Secret: Women Managers Guys want to put everybody in their hierarchical place. Like, should I have more respect for you, or are you somebody thats
south of me? Paul Biondi, Mercer Consultants [from Its Not Business, Its Personal, Ronna Lichtenberg] On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-firstcentury economic
community are going to need the natural talents of women. Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World Women Leaders Time Has Come Project team (old): 23 people, all from our
company (More or less amenable to orders) Project team (new): 43 people from 7 companies in 4 countries on 3 continents (Moved only by effective persuasion and development of common commitment) Worker, circa 1982: Rote work, incl. most white-collar work (Amenable to orders, power
exercised directly) Worker, circa 2007: Project work, team work, mixed-group work, creative work, co-creation with clientmicroprocessors do the rote stuff (Commitment is voluntary, leadership is by developing positive relationships, inducing Society is based on male standards
with women seen as anomalies deviating from the male norm. Bi Puvaneu, Institute for Future Studies (Stockholm) The Core Argument: Women [Ought to] Rule!
1. We are in a War for Talent. 2. The war will intensify. 3. There is a severe shortage of effective leaders at all levels. 4. Women are under-represented in our leadership ranks at or near the top. 5. Women and men are different; new science reinforces this view. 6. Womens strengths match the New Economys
leadership needsto a striking degree. 7. Women are also the principal purchasers of goods and servicesretail and commercial. 8. Ergo, women are a large part of the answer to the War for Talent/leadership shortage issue/opportunity. Catalyst just completed a study showing that companies with at
least three women directors performed significantly better than average in terms of return on equity (16.7% better), return on sales (16.8%), and return on invested capital (10%) Source: Newsweek, 1015.07/16% of S&P500 board members are women; 9% (45) no women
10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Womens work force participation rates have soared worldwide. Women are closing in on same pay for same job.
Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Womens leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everythingcommercial as well as consumer goods.
So what exactly is the point of men? Are men obsolete? Headline, USN&WR Q.E.D.
One thing is certain: Womens rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. This is just the beginning. The phenomenon will only grow as girls prove to be
more successful than boys in the school For a number of observers, we have already entered the age of womenomics, the economy as thought out and practiced by a woman. Aude Zieseniss de Thuin, Financial Times, 10.03.2006 system.
Womenomics, the economy as thought out and practiced by a woman. Aude Zieseniss de Thuin, Financial Times, 10.03.2006
94% of loans to women* *Microlending; Banker to the poor; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner
The Nonsense Nine: Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff!
Success! Plans! The Notable Nine: SMEs! Private companies! Dull industries! Churn!
Laudable CEOs! Soft stuff! Excellence! Action-Execution! Women! #1
And another The terrible ten! The Terrible Ten: Big companies!
Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! Success! Plans! Men!
Young! 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)
Subject: Marketers & Stupidity Its 1844, stupid! Or is it: 18-
44 is stupid, Fifty-four years of age has been the highest cutoff point for any marketing initiative Ive ever been involved in. Which is pretty weird when
you consider age 50 is right about when people who have worked all their lives start to have some money to spend. Marti Barletta, PrimeTime Women One particularly puzzling category of youthobsession is the highly coveted target of men 18-34, and its always referred to as highly coveted category. Marketers have been
distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they dont buy much of anything. The theory is that if you get them while theyre What nonsense!
young, theyre yours for life. Marti Barletta, PrimeTime Women Our marketers undervalue womenand the surge (tsunami) of boomers-geezers. !!!!!!!!!!!!!!!!!
People turning 50 today have more than half of their adult life ahead of them.
Bill Novelli, 50+: Igniting a Revolution to Reinvent America Profound. (And more or less profoundly new.) 7/1
Average # of cars purchased per household, lifetime: 13 Average # of cars bought per household after the head of household reaches age 50:
7 Source: Marti Barletta, PrimeTime Women 20 $14,000,000,000,000 -
$25,000,000,000,000 Americans buy 13 cars in our lifetimes. We buy seven post-50! We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest,
the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the worldand we will be the
Center of your universe for the next twenty- Marketers attempts at reaching those over 50 have been miserably No markets motivations and needs are so poorly understood.
unsuccessful. Peter Francese, founding publisher, American Demographics Boomers-Geezers-Womens Trifecta+ *Buy/all *Wealth/all
*time left/ lots *Eclipse of males/retire-die Median Household Net Worth <35: $7K 35-44: $44K 45-54: $83K
55-64: $112K 65-69: $114K 70-74: $120K >74: $100K Source: U.S. Census BoomerBucks! Boomer turns 50: every 7 seconds. 2009: majority of
U.S. households headed by someone over 50. 20062016: U.S. population up 22.9 million; 22.1 million in over-50 group. 2006: 1 in 5 adults is F, over 50. Women between 50-70 who are single: 35%. Age 4554: highest average income, $59, 021 (national average is $42,209). FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64 (4X men in same category). Women, age 60-64: 50% still in workforce. Highest net worth: families, 55-64 ($182,000). People over 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset
accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. Next 2 decades: BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLION (largest intergenerational transfer of wealth in history). Marti Barletta, PrimeTime Women 55-64 vs 25-34
E.g.: New cars & trucks: 20% more spending. Meals at full-service restaurants: +29%. Airfare: +38%. Sports equipment: +58%. Motorized recreational vehicles: +103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard services: +250% to +500%. Source: Marti Barletta, PrimeTime Women
50+ $7T wealth (70%)/ $2T annual income 50% all discretionary spending 79% own homes 40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs
5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old New Customer Majority *
44-65: *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder The New Customer Majority is the only adult market with realistic prospects for significant
sales growth in dozens of product lines for thousands of companies. David Wolfe & Robert Snyder, Ageless Marketing Baby-boomer Women: The Sweetest of
Sweet Spots for Marketers David Wolfe and Robert Snyder, Ageless Marketing Age Power
will rule the 21 century, and we are woefully unprepared. st Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old No: Target
Marketing Yes : Target Innovation & Target Delivery Systems
Possession Experiences /Desires for things/ Young adulthood/to 38 Catered Experiences/ Desires to be served by others/Middle adulthood Being Experiences/Desires for transcending experiences/Late
adulthood Source: David Wolfe and Robert Ageless Marketing 2006/Top 10% of U.S. Earners* Luxury goods for the home . -5.7% Fashion & jewelry ... -8.7% Luxury cars .. -0.9% Experiential luxury** .. +10.7%
* The wealthy are increasingly spending more on doing things than owning things /Unity Marketing **Travel, dining, entertainment, spa & beauty Source: European Business (04.2007) Older people have an image problem. As a culture, were conditioned toward youth. When we think of youth, we think energetic and colorful; when we think of
middle age or mature, we think tired and washed out. and when we think of old or senior, we think either exhausted and gray or, more likely, we just dont think. The financial numbers are absolutely inarguable the Mature Market has the money. Yet advertisers remain astonishingly
indifferent to them. Marti Barletta, PrimeTime Women Beer: National Boh to Bud to Anchor Steam to Zilch Car: Chevrolet (1942-1962) to misc to Subaru Biz Clothes: Various warehouses to Brooks to Nordstrom to Milan Biz: Big (U.S. Navy, McKinsey) to Small (de facto self-employed) Sports clothes: Misc-cheap to Northface Spouse: Sexy broad (wife #1) to Best friend/Brainy (+sexy)
School: Cornell to Stanford to RISD (Go Nads!) Pens: Cross to Bic Food: Safeway to Whole Foods Music: Beatles to Queen Home Furnishings: With it to Comfortable Home: SF Bay Area to West Tinmouth VT Favorite sport: Lacrosse-Crew to Speed Walking-Trekking-Rowing Favorite MLB, NFL: Orioles-Baltimore Colts to As-Raiders (Warriors!) Favorite magazine: Life to Wired
Favorite media: Print-Radio to Web-Radio Favorite airline: TWA to American to Lufthansa Home: East to West Vacations: USA to New Zealand Price: Cheap to Varied (Wal*Mart to Milan) Hotel: Ramada/Holiday Inns to Four Seasons/Leading Hotels Restaurants: McDonalds to Hole in the wall Stores: Misc/Big to Little shops Loyalty: Serial monogamy (just as loyal now as then; love em, then leave
em) The Terrible Ten: Big companies! Public companies! Cool industries! Stability! Famous CEOs!
Hard stuff! Success! Plans! Men! Young! The Terrific Ten:
SMEs! Private companies! Dull industries! Churn! Laudable CEOs! Soft stuff! Excellence! Action-Execution! Women!
Boomers-Geezers! #1 Again. The egregious
eleven! The Egregious Eleven: Big companies! Public companies! Cool industries! Stability! Famous CEOs!
Hard stuff! Plans! Success! Men! Young! Incrementalis Single
greatest act of pure imagination 24% Twenty-four percent of the worlds construction in the postage stamp called
dubai No Wiggle Room! Incrementalis m is innovations worst enemy.
Nicholas Negroponte The Egregious Eleven: Big companies! Public companies! Cool industries! Stability! Famous CEOs!
Hard stuff! Plans! Success! Men! Young! Incrementalis The Enviable Eleven:
SMEs! Private companies! Dull industries! Churn! Laudable CEOs! Soft stuff! Excellence! Action-Execution!
Women! Boomers-Geezers Imagination Unbound! #1 And another.
The despicable Dozen! Big companies! Public companies! Cool industries! Stability!
Famous CEOs! Hard stuff! Plans! Success! Men! Young! Incrementalism-Kaizen Minimization
Analysts preferred cost cutting, cutting as long as they could see two or three years of EPS growth. I preached revenue and the analysts eyes would glaze over. Now revenue is in because so many got caught, and
They said, Oh my gosh, you need revenues to grow earnings over time. Well, Duh! earnings went to hell. Dick Kovacevich, Wells
Fargo The Commerce Bank Model cost cutting is a death spiral. Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman The Commerce Bank story in retail banking was amazing. (Theyve just been bought by Toronto Dominion.) Our whole story is
growing revenue. Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting) Hill founded the bank. Hill founded the bank.
The Commerce Bank Model over-invest in our people, overinvest in our facilities. Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman
R C *Chief O* Revenue
Officer Everyone lives by selling something. .
Robert Louis Stevenson Competitive costs are important. A great CFO is worth her-his weight in gold. But will somebody p-l-e-a-s-e represent the revenue side?
>TGR TGR (Things gone right) > TGW (Things Gone Wrong) SingaporeCandy
(Operational Excellence+) Bowl with little candies at the Immigration cops booth in Singapore. Message: Welcome to Singapore. Were glad youre here. (Not exactly typical of immigration cops!)
3-cent lemon! Free lemon in a basket at the fish market. Often as not Ive made a $50+ purchase. But its the lemon I remember. Happy
Birthday! Banker in Bologna changes dollars for Euros for me. Takes my passport [required]. Sees that its my birthday. Hands me cash with a hearty happy birthday. Big deal? Little deal? Per me:
Big! Disneys Parking Lot Attendants = Alpha and Omega Disney carefully manages the allimportant first and last impressions.
Another TGR. Experiences are as distinct from services as services are from goods.
Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage 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 Beyond the Transaction/ Satisfaction Mentality
Good hotel/ Happy guest/ Exceeded Expectations vs. Great Vacation/ Great Conference/ Operation Personal Renewal
The latter three are much more inclusive-powerful. This is not semantic games. Not for the Four Seasons hotels! Its a dollars [many] and cents issue-opportunitystrategy-brand statement-basis for a Lovemark. XO*
C *Chief e Xperience Officer Hire a theater director, as a consultant
or FTE! First Step (?!): Car designers need to create a story. Every car provides an opportunity to create an adventure. The Prowler makes you smile. Why? Because its focused. It has a
plot, a reason for being, a passion. Freeman Thomas, co-designer VW Beetle; designer Audi TT Big companies! Public companies! Cool industries! Stability! Famous CEOs!
Hard stuff! Plans! Success! Men! Young! Incrementalism-Kaizen Minimization
The Delectable Dozen: SMEs! Private companies! Dull industries! Churn! Laudable CEOs! Soft stuff! Excellence! Action-Execution!
Women! Young! Imagination Unbound! Accentuate the Positive! #1
Finally The unlucky Thirteen! The Unlucky Thirteen: Big companies! Public companies!
Cool industries! Stability! Famous CEOs! Hard stuff! Plans! Success! Men! Young! Incrementalism-Kaizen
Minimization! Uniformity! The Unlucky Thirteen: Big companies! Public companies! Cool industries! Stability!
Famous CEOs! Hard stuff! Plans! Success! Men! Young! Incrementalism-Kaizen Minimization! Uniformity!
Never, ever again will I evaluate anyone using a standardized instrument devised by a professional in inhuman Resources. Promise #1:
53 = 53 Fifty-three people equal fifty-three totally different cases of individual human development. They (we!!) are not standardized. (Great teacher treats each kid as totally different
from the rest. Right?) (53 is the number of players on a National Football Rosterthe point is that in sport youd never think of using standardized evaluations. (Gawd, am I passionate about this!) Diverse groups of problem solvers groups of people with diverse tools
consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. Diversity trumped ability.
Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Wow! (Read the book.) WikiWorld: The
Billion-man Research Team: Companies offering work to online communities are reaping the benefits of crowdsourcing. Headline, FT, 0110.07 Pose a problem on the Web
numerous folks from numerous backgrounds will come to your aid. Human creativity is the ultimate economic resource.
Richard Florida, The Rise of the Creative Class 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 childlet alone our childreceive a poor grade
His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating grade-level motor skills. skills
in art at such a young age? Jordan Ayan, AHA! Yuck. Every child is born an artist. The trick is to
remain an artist. Picasso The cracked ones let in the light. Source: Santa Cruz California, psychiatrists bumper sticker
Normal = o for 800 No normal people in a history. So why do we avoid abnormal? (0 for 800: 400-page text, 2 people mentioned per page on average.)
15 Leading Biz Schools Design/Core: 0 Design/Elective: 1 Creativity/Core: 0 Creativity/Elective: 4
Innovation/Core: 0 Innovation Innovation/Elective: 6 Source: DMI/Summer 2002/Research by Thomas Lockwood B-schools: Yuck II.
40,000,000/20 [Former Fed Vice-chairman Alan] Blinder remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution communication technology that allows services to be delivered from afarwill put as many as 40
million American jobs at risk of being shipped out of the country in the next decade or two.* Wall Street Journal /0328 only the tip
of a very big iceberg. *Blinder: 40 million = Deutsche Bank Moves Half of Its Back-office Jobs to India/ (500 of 900
Research) headline/FT/0327 Not just jobs at risk. The best jobs are at risk. BRAND YOU.
NO OPTION. No guarantees! We must behave as boss-of-our-own-show! New Work SurvivalKit.2007 1. MASTERY! (Best/Absurdly Good at Something!) 2. Manage to Legacy (All Work = Memorable/Braggable WOW
Projects!) 3. A USP/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession (From vertical/hierarchy/suck up loyalty to horizontal/colleague/mate loyalty) 5. ENTREPRENEURIAL INSTINCT (A sleepless Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring interesting you to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. EMBRACE MARKETING (Your own CSO/Chief Storytelling Officer) 12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)
Stuff we need to know. All human beings are entrepreneurs. Muhammad Yunus: When we were in the caves we were all self-employed . . . finding our food, feeding ourselves. Thats where
human history began . . . As civilization came we suppressed it. We became labor because they stamped us, You are labor. We forgot that we are entrepreneurs. Source: Muhammad Yunus/2006 Nobel Peace prize winner, father of micro-lending /The News HourPBS/1122.2006 Entrepreneurial traits are not so
rarein fact, Yunus suggests they are normal as normal can be. Ye gads: Thomas Stanley has not only found no correlation between success in school and an ability to accumulate wealth, hes 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 successfailure 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 Measure Strangeness/Portfolio Quality
Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we benchmark against) Strategic Initiatives Product Portfolio (LineEx v. Leap)
IS/IT Projects HQ Location Lunch Mates Language Board We are as strange as the people we hang out within every nook and cranny of the organizational
community of which we are a part. Re innovation [Innovate or die!], this is a veeeeery big deal. [CEO A.G.] Lafley has shifted P&Gs focus on inventing all its own products to developing others inventions
at least half the time. One successful example Mr. Clean Magic Eraser, based on a product found in an Osaka market. Fortune, 12.18.06 Another very big dealP&G was headquarters of not invented hereif we didnt invent it, it was
not worth inventing! Venture fund (Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks/
1% ) Starbucks branding guru Scott Bedbury felt the company was getting stale. He asked founder Howard Schultz for 1% of the years construction budget to play with.
Surrounded by the companys coolest people, he tried a dozen new formats. Most failed, as expected. A couple became big winners. f4 Find. A.
Fellow. Freak. Far Away. To test weird stuff, we need weird playmatesas far away from home/HQ as possible! The Hang Out Axiom:
At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: Innovate, Yes or No
Big companies! Public companies! Cool industries! Stability! Famous CEOs! Hard stuff! Plans! Success!
Men! Young! Incrementalism-Kaizen Minimization! Uniformity The Lucky Thirteen: SMEs!
Private companies! Dull industries! Churn! Laudable CEOs! Soft stuff! Excellence! Action-Execution! Women! Boomers-Geezers!
Imagination Unbound! Accentuate the Positive! Individuality! The Lucky Thirteen: SMEs! Private companies!
Dull industries! Churn! laudable CEOs! Soft stuff! Excellence! Action-Execution! Women! Boomers-Geezers! Imagination Unbound!
Accentuate the Positive! Individuality! The Lucky Thirteen: SMEs! Private companies! Dull industries! Churn! laudable CEOs!
Soft stuff! Excellence! Action-Execution! Women! Boomers-Geezers! Imagination Unbound! Accentuate the Positive! Individuality!
EXCELLENCE. BEDROCK. LEADERSHIP. 10Ps. PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. PURPOSE. PASSION.
Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive.
People want to be part of something larger than themselves. They want to be part of something theyre really proud of, that theyll fight for, sacrifice for , trust.
Howard Schultz, Starbucks (IBD/09.05) A leader is a dealer in hope. Napoleon (+TPs writing room pics)
Leader Job One Paint Portraits of Excellence! 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 youve just said. What would it be? Do you feel you have an obligation to Make the world a better place?
PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE.
Potent. Positive. Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge BZ: I am a
Dispenser of Enthusiasm! PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. The role of the Director is to create a space where the actors
become more than theyve ever been before, more than theyve dreamed of being. and actresses can Robert Altman, Oscar acceptance speech
Organizing Genius / Warren Bennis and Patricia Ward Biederman Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.
The best thing a leader can do for a Great Group is to allow its members to discover their greatness. Leaders Mt Everest Test free to do his or her
absolute best allow its members to discover their greatness. PURPOSE. PASSION. Potential.
Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. Its always
showtime. David DAlessandro, Career Warfare PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. You must
be the change you wish to see in the world. Gandhi Being aware of yourself and how you
affect everyone around you is what distinguishes a superior leader. Edie Seashore (Strategy + Business #45) Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on
others? [Are you sure?] What is your impact on others? [Are you sure?] What are the little things you (perhaps unconsciously) do that cause people to shrivelor blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is
your style of hashing things out? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think youre in touch with the pulse of things around here? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are
so much BS?] PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE.
PRIORITIES. PEOPLE. Potent. Positive. Relentless: One of my superstitions had always been when I started to go anywhere or
not to turn back , or stop, to do anything, until the thing intended was accomplished. Grant Success seems to
be largely a matter of hanging on after others
have let go. Feather, author William The most successful people are those who
are good at plan B. James Yorke, mathematician, on chaos theory in The New Scientist PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE. potent. Positive. 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 Dennis, you need a To-dont List ! The one thing you
need to know about sustained individual success: Discover what you dont like doing and stop doing it.
Marcus Buckingham, The One Thing You Need to Know PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE.
PRIORITIES. PEOPLE i. Potent. Positive. Leaders do
people. Period. Anon. The leaders of Great Groups love talent and know where to find
revel in the talent of others. it. They Warren Bennis & Patricia Ward Biederman, Organizing Genius Leaders
SERVE people. Period. inspired by Robert Greenleaf Officers
eat last! PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES.
PEOPLE ii. Potent. Positive. A man without a smiling face
must not open a shop. Chinese Proverb I cant tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on
the fieldand, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to allconference and All-America teams. Bo Schembechler (and John Bacon), Recruit for Character, Bos Lasting Lessons Character is more crucial now than ever, because in times of great uncertainty past
performance is no indicator of future performance. Experience falls away and all youre left with is character. David Rothkopf, founder of a firm that helps chief executives manage risks Its simple, really, Tom. Hire for s,
and, above all, promote for s. Starbucks middle manager/field Go for the soft attributesdamn it! PURPOSE. PASSION. Potential.
Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE iii. Potent. Positive.
53 = 53 Every human being is following their own growth trajectoryin general and relative to the organization-team of which they are a part. Hence standardized evaluation instruments are an abominationwith housekeepers as well as scientists. (Our dream teacher for our kids is the
one who treats each kid differently. The teacherfrom-hell treats them all the same.) (The 53 comes from football. The roster of an NFL team is 53 players. Obviously, wed never treat players as interchangeable blocks. Whats the difference between a 53-person football team or dance company and a 53-person finance or IS department? None!) Never, ever
again will I evaluate anyone using a standardized instrument devised by a professional in inhuman Resources. Promise #1: Diverse groups of problem solvers
groups of people with diverse tools consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. Diversity trumped
ability. Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity PURPOSE. PASSION. Potential.
Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE iv. Potent. Positive.
Forget China, India and the Internet: Economic Growth Is Driven by Women. Headline,
Economist, April 15, 2006, Leader, page 14 AS LEADERS, WOMEN RULE: New Studies find
that female managers outshine their male counterparts in almost every measure Womens 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. Judy B. Rosener, Americas Competitive Secret: Women Managers
Old days: 20-person project team. All from our company. New days: 20-person project team. Six companies in 4 countries represented. Cant bark orders. (This is added to when we acknowledge that our value-added will come from creatives also far less amenable to standard hierarchical approaches.) Old hierarchy disappearing. Men are hierarchy oriented;
women tend to lead through relationship development. 14 168* to Deloitte losing great women. Discover its because women see male-dominated
hierarchy above, and dont want to waste time since top slots not available. Deloitte makes female retention centerpiece of strategy. Among other things, in a decade senior positions held by women grow from 14 to 168. Progress publicly reported in Womens Initiative Annual Report. (In 2007, Deloitte voted best company for fresh-caught college grads to work for.)
Period??!!* Start: 3 0f 14 18 months later: 18
10 of *AIM/September 2007 In Australia, TP pinned against wall by woman financial-services CEO: What would you do if you were made CEO of a firm light in women in senior ranks? After
much thought, I said Id play it straight as a numbers gamee.g., increase my exec team from the current 3 women of 14 to 10 of 18 in 18 months. As to the standard, butt no women are ready, Id simply deep dip as they say in the militarygo down a level or two to find the best women, whether or not they were 100% ready.
10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Womens work force participation rates have soared worldwide. Women are closing in on same pay for same
job. Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Womens leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everythingcommercial
as well as consumer goods. So what exactly is the point of men? One thing is certain: Womens rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. This is just
the beginning. The phenomenon will only grow as girls prove For a number of observers, we have already entered the age of womenomics, the economy as thought out and practiced by a woman. to be more successful than boys in the school system.
Aude Zieseniss de Thuin, Financial Times, 10.03.2006 PURPOSE. PASSION. Potential. Presence. Personal.
PERSISTENCE. PRIORITIES. PEOPLE v. Potent. Positive. PUT HR AT THE HEAD OF THE
HEAD TABLE. BEST PEOPLE. NOBLEST MISSION. PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE vi. Potent. Positive. 2 per Year/
20 per Decade = Excellence + Legacy In I figure one has about two key promotion decisions per year. Collectively the 20 in 10 years will almost totally shape ones legacy. While we take such decisions seriously, I suggest we typically take
them seriously enough based on the analysis above. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE.
PRIORITIES. PEOPLE vii. Potent. Positive. Internal brand promise!
EVP/ IBP?* IBP Whats your companys *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP
EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized
future employability Source: Ed Michaels, The War for Talent; TP We are a Life Success Company. Dave Liniger, founder, RE/MAX
Brand = Talent. PURPOSE. PASSION. Potential. Presence. Personal.
PERSISTENCE. PRIORITIES. PEOPLE vii. Potent. Positive. flush $500,000
down the toilet in one < CAPEX > People! See above, slides 104-107.
PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE.
Potent. Positive. [other] admirals more frightened of losing than anxious to win On NELSON:
In war or peace there is an enormous difference between working to avoid loss (defense rulescost cutting?) versus working to win (a revenueinnovation focus?). Kevin Roberts Credo 1. Ready. Fire! Aim. 2.
3. 4. 5. 6. 7. 8. 9. If it aint broke ... Break it!
Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff. 10.
Avoid moderation! "The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the
unreasonable man. GB Shaw, Man and Superman: The Revolutionists' Handbook. You do not merely want to be the best of the best. You want to be considered the only ones who do
what you do. Jerry Garcia One who does less than he can
is a thief. Gandhi Ouch. PURPOSE. PASSION. Potential. Presence.
Personal. PERSISTENCE. PRIORITIES. PEOPLE. Potent. Positive. The greatest danger
for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
The 1E Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.
Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) Geron-imo! "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but
to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting GERONIMO! Bill McKenna, professional motorcycle racer (Cycle magazine 02.1982)