Title: NEW ZEALAND 2007
1NEW ZEALAND 2007
2Ho hum 2 weeks in New Zealand
PfizerFordGapChryslerYahoomicrosoftwalma
rt??????
3It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
4 On NELSON other admirals more frightened of
losing than anxious to win
5Axiom We have met the enemy and he is
us.Axiom The adaptive capabilities of big
corporations taken as a whole is problematic
read pathetic.Antidote The answer is 75
internal. To sustain/win, we must first and
foremost and in perpetuity beat back the forces
of darknesssize and inertia and fear and
timidity and over-complexity.
6The last word There is no last word.
7Flat as a Pancake (Or Worse)WalMart Dell
Intel Home Depot Microsoft GE
8 Tom Peters X25EXCELLENCE.
ALWAYS.International Paper/Sanibel
Harbour/0228.07In Search of Excellence
1982-2007
9Slides at tompeters.com
10 EXCELLENCE????
11I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
12Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors significantly underperformed
the market just 2 (2), GE Kodak,
outperformed the market from 1917 to 1987.SP
500 from 1957 to 1997 74 members of the Class of
57 were alive in 97 12 (2.4) of 500
outperformed the market from 1957 to
1997.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
13Welcome 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)
14 SP Stability Ratings
1985 2006Low Risk
41 13 Average Risk 24
14High Risk 35 73Likelihood
of stable long-term earnings growthSource
Fortune (2 October 2006)
15 EXCELLENCE. GAMECHANGER.
16 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
17ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Forbes/Excellence Index /Basket of 32
publicly traded stocks
18 EXCELLENCE. ASPIRATION.
19Why in the world did you go to Siberia?
20The 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.
21In-sane-ly-great
22Enterprise (at its best) An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that elicits maximum
concerted human potential in the wholehearted
service of others.Excellence.
Always.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
23 EXCELLENCE. REVENUE.MATTERS.MOST.
24Analysts preferred cost 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 earnings went to hell. They said,
Oh my gosh, you need revenues to grow earnings
over time. Well, Duh! Dick Kovacevich, Wells
Fargo
25CROChief Revenue Officer
26. Everyone lives by selling something.
Robert Louis Stevenson
27 EXCELLENCE. INNOVATE. OR. DIE.
28Under his former boss, Jack Welch, the skills GE
prized above all others were cost-cutting,
efficiency and deal-making. What mattered was the
continual improvement of operations, and that
mindset helped the 152 billion industrial and
finance behemoth become a marvel of earnings
consistency. Immelt hasnt turned his back on the
old ways. But in his GE, the new imperatives are
risk-taking, sophisticated marketing and, above
all, innovation. BW/2005
29More than 1 RD spending, last 25 years?
30GM
31I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
32Spinoffs systematically perform better than IPOs
track record, profits freed from the
confines of the parent more entrepreneurial,
more nimble Jerry Knight/ Washington Post/
08.05
33When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
cochairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
34Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
35Theres A and then theres A.
36InnoTacs
37 We become who we hang out with!
38Innovations Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
39Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
40Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
41 Why Do I love
Freaks? (1) Because when Anything Interesting
happens it was a freak who did it. (Period.)
(2) Freaks are fun. (Freaks are also a pain.)
(Freaks are never boring.) (3) We need freaks.
Especially in freaky times. (Hint These are
freaky times, for you me the CIA the Army
Avon.) (4) A critical mass of
freaks-in-our-midst automatically make
us-who-are-not-so-freaky at least somewhat more
freaky. (Which is a Good Thing in freaky
timessee immediately above.) (5) Freaks are
the only (ONLY) ones who succeedas in, make it
into the history books. (6) Freaks keep us
from falling into ruts. (If we listen to them.)
(We seldom listen to them.) (Which is why most
organizations are in ruts. Make that chasms.)
42Diverse groups of problem solversgroups of
people with diverse toolsconsistently
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
43Wikinomics.WikiWorld.CrowdSourcing.
44The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline,
FT, 0110.07
45 try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Screw it up. Try it. Try it. Try
it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it. Screw it up.
Try it. Try it. Try it.
46do things.
47We have a strategic plan. Its called doing
things. Herb Kelleher
48 drill.
49 This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
50try things.
51We 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
52Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
53We ground up more pig brains!
54The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
55Screw. things.Up.
56FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
57Fail . Forward. Fast.High Tech CEO,
Pennsylvania
58Fail faster. Succeed Sooner.David
Kelley/IDEO
59Sams Secret 1!
60Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
61try.Miss.try.
62READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
63S.A.V.
64Paul Allaire We are in a brawl with no
rules.TP Theres literally only one
possible answerScrew Around Vigorously!
65You miss 100 of the shots you never take.
Wayne Gretzky
66Speed/ Tempo/is-it
67We all live in Dell-WalMart-eBay-Google World!
68the FedEx Economy headline/New York
Times/10.08.05
69Any3 Anything/ Anywhere/ Anytime
70UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes
71Power Tools For Power Strategies
72Sysco!
735 F500 have CIO on Board While some of the
worlds most admired companiesTesco, WalMart
are transforming the business landscape by
including technology experts on their boards, the
vast majority are missing out on ways to boost
productivity, competitiveness and shareholder
value.Source Burson-Marsteller
74 Clarity
75JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(1-5/Throughout) TALENT JACK!
76 bet the farm
77Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
78No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas
Negroponte
79Conscious measurement
80Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher out of 10 on a Weird/ Profound/
Wow/Game- changer Scale?
81personal
82Step 1 Buy a Mirror!
83The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
84Do one thing every day that scares you.
Eleanor Roosevelt
85 EXCELLENCE. 4/40.
864/40
87De-cent-ral-iz-a-tion!
88The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
89 Decentralization vs Centralization Thats All
There Is (from the Federalist Papers to Org.2007)
90If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
91Ex-e-cu-tion!
92Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
93Execution 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
94Goal (Vision) Projects Milestones
Rapid Review Truth-telling accountability
95Costco figured out the big, simple things and
executed with total fanaticism. Charles
Munger, Berkshire Hathaway
96Ac-count-a-bil-ity!
97GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
98Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
99615A.M.
100DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
101Excellence The SE22 ORIGINS OF SUSTAINABLE
ENTREPRENEURSHIP
102 SE22/Origins of Sustainable
Entrepreneurship 1. Genetically disposed to
Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab,
Starbucks, Oracle, Sun, Fox, Stanford
University, MIT) 2. Perpetually determined to
outdo oneself, even to the detriment of
todays winners (Apple, Cirque du Soleil,
Nokia, FedEx) 3. Treat History as the Enemy
(GE) 4. Love the Great Leap/Enjoy the Hunt
(Apple, Oracle, Intel, Nokia, Sony) 5. Use
Strategic Thrust Overlays to Attack Monster
Problems (Sysco, GSK, GE, Microsoft) 6. Establish
a Be on the COOL Team Ethos. (Most PSFs,
Microsoft) 7. Encourage Vigorous
Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as
well as organizationally Decentralized
(GE, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
103 SE22/Origins of Sustainable
Entrepreneurship 10. Keep decentralizingtireles
s in pursuit of wiping out Centralizing
Tendencies (JJ, Virgin) 11. Scour the world for
Ingenious Alliance Partners especially
exciting start-ups (Pfizer) 12. Acquire for
Innovation, not Market Share (Cisco, GE) 13.
Dont overdo pursuit of synergy (GE, JJ, Time
Warner) 14. Execution/Action Bias Just do it
dont obsess on how it fits the business
model. (3M, J J) 15. Find and Encourage and
Promote Strong-willed/ Hyper-smart/Independe
nt people (GE, PepsiCo, Microsoft) 16. Support
Internal Entrepreneurs (3M, Microsoft) 17. Ferret
out Talent anywhere/No limits approach to
retaining top talent (Virgin, GE, PepsiCo)
104 SE22/Origins of Sustainable Entrepreneurship 1
8. Unmistakable Results Accountability focus
from the get-go to the grave (GE, New York
Yankees, PepsiCo) 19. Up or Out (GE, McKinsey,
big consultancies and law firms and ad
agencies and movie studios in general) 20.
Competitive to a fault! (GE, New York Yankees,
News Corp/Fox, PepsiCo) 21. Bi-polar
Top Team, with Unglued Innovator 1,
powerful Control Freak 2 (Oracle, Virgin) (Watch
out when 2 is missing Enron) 22.
Masters of Loose-Tight/Hard-nosed about a very
few Core Values, Open-minded about
everything else (Virgin)
105 EXCELLENCE. VALUE ADDED.UP THE LADDER.
106 EXCELLENCE.VALUE-ADDED LADDER I. SOLVE IT.
10755B
108Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW/2004
109Up, Up, Up, Up the Value-added Ladder.
110The Value-added Ladder/ STUFF N THINGSGoods
Raw Materials
111The Value-added Ladder/Stuff TRANSACTIONSServ
icesGoods Raw Materials
112The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging SolutionsServicesGoods Raw
Materials
113Era 1/Obvious Value Our it works, is
delivered on time (Close)Era 2/Augmented
Value How our it can add valuea useful it
(Solve)Era 3/Complex Value Networks How
our system can change you and deliver business
advantage (Culture-Strategic
change)Source Jeff Thull, The Prime Solution
Close the Value Gap, Increase Margins, and Win
the Complex Sale
114The business of selling is not just about
matching viable solutions to the customers that
require them. Its equally about managing the
change process the customer will need to go
through to implement the solution and achieve the
value promised by the solution. One of the key
differentiators of our position in the market is
our attention to managing change and making
change stick in our customers organization.
(E.g. CRM failure rate/Gartner 70) Jeff
Thull, The Prime Solution Close the Value Gap,
Increase Margins, and Win the Complex Sale
115Huge Customer Satisfaction versus Customer
Success
116Department Head to Managing Partner, IS
HR, RD, etc. Inc.
117Purchasing Officer Thrust 1 Cost (at All
Costs) Minimization Professional? Or/to Full
Partner-Leader in Lifetime Value-added
Maximization?(Lopez Arguably Villain 1 in
GM tragedy/Anon VSE-Spain)
118Fleet ManagerRolling Stock Cost Minimization
Officervs/orChief of Fleet Lifetime Value
Maximization Strategic Supply-chain
Executive Customer Experience Director (via
drivers)
119 EXCELLENCE.VALUE-ADDED LADDER II. EXPERIENCE
IT.
120Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
121Experience 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
122WHAT CAN BROWN DO FOR YOU?
123Up, Up, Up, Up the Value-added Ladder.
124The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
125 EXCELLENCE.VALUE-ADDED LADDER III. DREAM
IT.
126DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
127Up, Up, Up, Up the Value-added Ladder.
128The Value-added Ladder/ EMOTIONDreams Come
TrueSpellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
129CDMChief Dream Merchant
130Dreams Come TrueIBM
131The (NEW) Value-added LadderDreams Come
TrueSpellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
132 EXCELLENCE. BEDROCK.LEADERSHIP.9Ps.
133PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
134PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
135People 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)
136Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max De Pree,
Herman Miller
137PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
138Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
139Whenever anything is being accomplished, I have
learned, it is being done by a monomaniac with a
mission. Peter Drucker
140PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
141In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
142The role of the Director is to create a space
where the actors and actresses can become more
than theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance speech
143Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups 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.
144Leaderships Mt Everest/Mt Excellencefree to
do his or her absolute best allow its
members to discover their greatness.
145PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
14625
147PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
148You must be the change you wish to see in the
world.Gandhi
149 Its always showtime. David DAlessandro,
Career Warfare
150PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
151This adolescent incident of getting from
point A to point B is notable not only because
it underlines Grants fearless horsemanship and
his determination, but also it is the first known
example of a very important peculiarity of his
character Grant had an extreme, almost phobic
dislike of turning back and retracing his steps.
If he set out for somewhere, he would get there
somehow, whatever the difficulties that lay in
his way. This idiosyncrasy would turn out to be
one the factors that made him such a formidable
general. Grant would always, always press
onturning back was not an option for him.
Michael Korda, Ulysses Grant
152Relentless One of my superstitions had always
been when I started to go anywhere or to do
anything, not to turn back , or stop, until the
thing intended was accomplished. Grant
153"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.
154Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
155PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
156Leaders do people. Period. Anon.
157PARCs Bob Taylor Connoisseur of Talent
158The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others. Warren Bennis Patricia Ward
Biederman, Organizing Genius
159A review of Jack and Suzy Welchs Winning claims
there are but two key differentiators that set GE
culture apart from the herd First Separating
financial forecasting and performance
measurement. Performance measurement based, as it
usually is, on budgeting leads to an epidemic of
gaming the system. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance i.e., its
about how you actually do in the context of what
happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Second Putting HR on a par with finance and
marketing.
160lt CAPEXgt People!
161Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
162 Brand Talent.
163Leaders SERVE people. Period. Anon.
164 Servant Leadership/Robert Greenleaf 1. Do
those served grow as persons? 2. Do they,
while being served, become healthier wiser,
freer, more autonomous, more likely themselves to
become servants?
165PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
166Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
167 Kevin Roberts Credo1.
Ready. Fire! Aim.2. If it aint broke ... Break
it!3. Hire crazies.4. Ask dumb questions.5.
Pursue failure.6. Lead, follow ... or get out of
the way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. Avoid moderation!
168"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)
169PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
170 On NELSON other admirals more frightened of
losing than anxious to win
171The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
172PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
173Excellence 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 _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
174 EXCELLE ALWAYS.