Tom Peters at XAlways Inc. 500 Conference

LONGLONG

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.2525thth Annual Inc. 500 Conference Annual Inc. 500 ConferenceWorld’s #1 City/20 January 2007World’s #1 City/20 January 2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

Happy 25!Happy 25!1982-20071982-2007

Inc.Inc.In Search of In Search of ExcellenceExcellence

Built to LastBuilt to Lastvs

Built Built to to Rock Rock the the WorldWorld

TP#1*:

NetscapeNetscape

!!*Where would you rather have worked for those 5 years, Netscape

or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)

Slides* at …Slides* at …

tompeters.comtompeters.com

*also *also “long”“long”

Inc.Inc. Home Home Page: Page: ErrataErrata

““Women in Women in Business”Business”

““MenMen in in Business”Business”

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline, Economist, April 15, 2006, Leader, page 14

A DOZEN UNASSAILABLE REASONS WOMEN RULE/WILL RULEA DOZEN UNASSAILABLE REASONS WOMEN RULE/WILL RULEWomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen make better financial decisions. make better financial decisions.WomenWomen control [all] the [world’s] wealth. control [all] the [world’s] wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.Women Women [girls] are waxing; men [boys] are waning.[girls] are waxing; men [boys] are waning.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same job.” are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].pace is slow for the corner office per se].Women’s Women’s leadership strengths are [exceptionally] wellleadership strengths are [exceptionally] well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are [much] better salespersons than men. are [much] better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

““Goldman Sachs in Goldman Sachs in TokyoTokyo has has developed an index of 115 developed an index of 115

companies poised to benefit from companies poised to benefit from women’s increased purchasing women’s increased purchasing

power;power; over the past over the past decade the value of decade the value of shares in Goldman’s shares in Goldman’s

basket has risen by 96%, basket has risen by 96%, against the Tokyo against the Tokyo

stockmarket’s stockmarket’s rise of 13%rise of 13%.”.” —Economist—Economist, April 15, April 15

EXCELLENCE.EXCELLENCE.

ALL YOU NEED TO KNOW. ALL YOU NEED TO KNOW.

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

*Not to mention the “Red key”


ALL. YOU. NEED. ALL. YOU. NEED. TO. KNOW. TO. KNOW. ANYANYWHERE.WHERE.

ANYANY MARKET. MARKET. ANYANY TIME. TIME.

Jim’s Jim’s GroupGroup

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer ServicesJim’s Dog WashJim’s Dog Wash

Jim’s Driving SchoolJim’s Driving SchoolJim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s PergolasJim’s PergolasJim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim’s book: What Will They Franchise Next? The Story of Jim’s GroupWhat Will They Franchise Next? The Story of Jim’s Group

EXCELLENCE. EXCELLENCE. THE WORD.THE WORD.

Synonyms

PurityPurityTranscendenceTranscendence

VirtueVirtueEleganceEleganceMajestyMajestyAntonyms

Mediocrity

EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.

BASICS.BASICS.K.I.S.S.K.I.S.S.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

““It was a It was a blinding flash of blinding flash of

the obvious!”the obvious!”

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

Enterprise* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, ,

creativecreative, , entrepreneurialentrepreneurial endeavor that elicits endeavor that elicits maximum concerted maximum concerted human potential in human potential in the the wholehearted wholehearted serviceservice of others of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE. EXCELLENCE.

INNOVATE. INNOVATE. OR. DIE.OR. DIE.

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

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

“I don’t believe in economies of scale. You You don’t get better don’t get better by being bigger. by being bigger. You get worseYou get worse.”.” —

Dick Kovacevich/Wells Fargo

The The lastlast word: word: There There

is is nono last last word.word.

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Wal*Mart … Dell … Intel Dell … Intel

… Home … Home Depot … Depot …

Microsoft … Microsoft … GEGE

InnoTac64InnoTac64

try it. Try it. Try it. Try try it. Try it. Try it. Try it. it. Try it.Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. Try Try it. Try it. Try it. Try it. it. Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. Try it. it. Try it.

Try it. try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try Try it. Try

it. Try it. it. Try it.

do do things.things.

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

drill.drill.

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

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

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

studying logs, but you have to drill.”

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

try try things.things.

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version

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

BloombergBloomberg

Screw. Screw. things.things.

Up.Up.

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

try.try.Miss.Miss.try.try.

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

just.just.%&*%$#@.%&*%$#@.

Do it.Do it.

S.A.S.A.V.V.

duh.duh.

““You miss You miss

100100%% of of the shots you the shots you never take.”never take.”

—Wayne—Wayne GretzkyGretzky


4/40.4/40.

4/404/40

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

“‘“‘DecentralizatioDecentralization’ is n’ is notnot a piece a piece of paper. It’s of paper. It’s notnot me. me. It’s either in It’s either in

your your heartheart, or , or not.”not.”

—Brian Joffe/BIDvest

““If if feels If if feels painful and painful and

scary—that’s scary—that’s realreal delegation” delegation”

—Caspian Woods, small biz owner

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

tion!tion!

““ExecutionExecution is is thethe j jobob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

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

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

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

denial in the placedenial in the place.”.” —Kevin Sharer, CEO Amgen,

on the “GE mystique” (Fortune)

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


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

The Value-added Ladder/ ECSTASYECSTASY

LovemarkLovemark Dreams Come True

Spellbinding ExperiencesGamechanging Solutions

ServicesGoods

Raw Materials

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

body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%Harley .… 18.9%Disney .... 14.8Disney .... 14.8

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

Adidas …. 3.1Adidas …. 3.1Absolut …. 2.6Absolut …. 2.6

Nintendo …. 1.5Nintendo …. 1.5

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


NEW MARKETS.NEW MARKETS.ENORMOUS. ENORMOUS.

OPPORTUNITIES.OPPORTUNITIES.

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

““Economic Growth Economic Growth Is Driven by … Is Driven by …

WomenWomen..””

—Headline, EconomistEconomist, April 15, 2006, Leader, page 14

?????????Home Furnishings … 94%Home Furnishings … 94%

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

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

Consumer Electronics … 51% Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)Cars … 68% (90%)AllAll consumerconsumer purchasespurchases … … 83%83%

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

Health Care … 80%Health Care … 80%

The “91% Factor”!The “91% Factor”!

More than More than 99 in in 1010 women women age 35 - 49 say theyage 35 - 49 say they

either either makemake or at least or at least eeqquallually y influenceinfluence their their household purchaseshousehold purchases of of homehome electronicselectronics..

Source: Andrea Learned, co-author, Source: Andrea Learned, co-author, Don’t Think PinkDon’t Think Pink

9494%% of loans to of loans to ……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

USA/F.Stats: Short ’n (Very) SweetUSA/F.Stats: Short ’n (Very) Sweet>50% of stock ownership, $13T total wealth (2X in 15 years)>50% of stock ownership, $13T total wealth (2X in 15 years)

>$7T consumer & biz spending (>50% GDP; > Japan GDP); >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) >80% consumer spdg (Consumer = 70% all spdg)

57% BA degrees (2002); = ed & social strata, no wage gap57% BA degrees (2002); = ed & social strata, no wage gap

60% Internet users; >50% primary users of60% Internet users; >50% primary users of electronic equipment electronic equipment

>50% biz trips>50% biz trips

WimBiz: Employees > F500; 10M+: 33% all US BizWimBiz: Employees > F500; 10M+: 33% all US Biz

Pay from 62% in 1980 to 80% today; equal if education,Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal social status, etc are equal

60% work; 46M (divorced, widowed, never married)60% work; 46M (divorced, widowed, never married)

Source: Fara Warner, The Power of the PurseThe Power of the Purse

Women > 50% of Household Income in >50% of Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married households. In 48% of the 55% of households/married

couples, women provide >50% of income. 27% of couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their female execs with the rank of VP or above out earn their

spouse. Women control 51% of private wealth in the U.S.; spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of head 40% of households with >$600K assets; 47% of

market investors are women.market investors are women.Major Credit Union: pre Y2K, modal customer was 53-year-Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman.old family man; today, 46-year-old single working woman.

Commercial: 51% purchasing managers are women.Commercial: 51% purchasing managers are women.Women make >80% consumer purchases; businesswomen Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women: make >90% of household purchasing decisions. Women:

70% of travel decisions; purchase 57% of consumer 70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% electronics; write 80% of personal checks; purchase >50%

of cars (primary influence >80%).of cars (primary influence >80%).

Source: Don’t Think Pink: What Really Makes Women Buy—and How to Increase Your Share of This Crucial Market, Lisa Johnson & Andrea Learned

WomenWomenHousehold spending: 80%80%Investment decisions: 53%53%Home improvement purchase decisions: 80%80%New cars: 60%+60%+Computers: 60%60%Managers and professionals, overall: 51%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)

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 10.6 millionmillion ( (48%48% of all firms) of all firms)Growth rate of Women-owned firms vs all firms:Growth rate of Women-owned firms vs all firms: 3X3XRate of jobs created by Women-owned firms vs all Rate of jobs created by Women-owned firms vs all firms:firms: 2X2XRatio of total payroll of Women-owned firms vs total Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:for Fortune500 firms: >1.0>1.0Ratio of likelihood of Women-owned firms staying in Ratio of likelihood of Women-owned firms staying in business vs all firms:business vs all firms: >1.0>1.0Growth rate of Women-owned companies with Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all revenues of >$1,000,000 and >100 employees vs all firms:firms: 2X2X

Source: Margaret Heffernan, How She Does It

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household

after the “head of household” reaches age

50: 77Source: Marti Barletta, PrimeTime Women


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

9Ps. 9Ps.

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

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

PURPOSEPURPOSE..

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


PositivePositive..

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

“The role of the Director is to create a space where the actors and actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

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

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

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

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

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

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

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare



PositivePositive..

RelentlessRelentless:: “One of “One of my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

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

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


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —Anon.

Servant LeadershipServant Leadership/Robert Greenleaf/Robert Greenleaf

1. 1. Do those served grow asDo those served grow as persons?persons? 2. 2. Do they, while being served, Do they, while being served,

become healthier wiser, freer, become healthier wiser, freer, more autonomous, more likely more autonomous, more likely themselves to become servants?themselves to become servants?


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

Kevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

““A typical day at the A typical day at the office for me begins by office for me begins by

asking,asking, ‘‘What is What is impossible that I impossible that I am going to do am going to do todaytoday?’”?’” —Daniel Lamarre, —Daniel Lamarre,

president, Cirque du Soleilpresident, Cirque du Soleil



PositivePositive..

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

anxious to win”anxious to win”



PositivePositive..

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

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

EXEXCELLE CELLE ALWALWAYSAYS..

Tom Peters at XAlways Inc. 500 Conference

Business

Transcript of Tom Peters at XAlways Inc. 500 Conference