Tom Peters’ EXCELLENCE. ALWAYS. MassMutual/Leaders Conference 2006 Washington/29July
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Transcript of Tom Peters’ EXCELLENCE. ALWAYS. MassMutual/Leaders Conference 2006 Washington/29July
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Tom Peters’
EXCELLENCE. ALWAYS.
MassMutual/Leaders Conference 2006Washington/29July
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Slides* at …
tompeters.com
*also “long”
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The Irreducible209+/
Sales122
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2255
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EXCELLENCE. STARTERS.
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Radio City Music HallSeptember 2005
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Franchise Lost!
TP: “How many of you [600] really
crave a new Chevy?”
NYC/IIR/061205
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2P.3E.
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People.Product.
Execution.Enthusiasm.Excellence.
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EXCELLENCE. THE WORD.
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Synonyms
PurityTranscendence
VirtueEleganceMajesty
Antonyms
Mediocrity
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EXCELLENCE.
GAMECHANGER.
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Excellence1982: The Bedrock “Eight Basics”
1. A Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties”
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ExIn*: 1982-2002/Forbes.com
DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
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Them-UsTom Peters/0624.2006
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“Them” “Us”
Strategy EXECUTIONPlanning ActionMarketing Selling/SalesMarkets CustomersCustomers ClientsMicro-segmentation Big Stuff (Women, Boomers)Cost minimization Revenue maximizationSynergy/“Efficiencies” Decentralization“Strategic supplier Pioneering supplierProcess ProjectEffectiveness ExcellenceMen WomenLeadership Management + LeadershipStandardization Exceptionalism (53 = 53)Big clients COOL clientsPrestigious Board INTERESTING Board
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good words.Bad words.
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Words that may NOT be used in my presence:
“Motivate”
“Market”
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Words that may NOT be used in my presence:
“Motivate”
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“In the end, management doesn’t
change culture. Management
invites
the workforce itself to change the culture.”
—Lou Gerstner
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Words that may NOT be used in my presence:
“Market”
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SellSellSell
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Words that MAY be used in my presence: “Invite” (v. “Motivate”) … “Sell” (v. “Market”) … “People” (we’d like to serve) (v. “Market segment”) … “Client” (v.
“Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute” (v. “Plan”) … “Talent” (v. “Worker”) …
“Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) … “Wow Project” (v. “Task”) … “Rockin’ (profit-makin’)
PSF” (v. “Department”) … “Theater” (v. “Office”) … “Breathtaking Experience” (v. “Transaction” that “Exceeds
expectations”) … “Talent Fanatics Inc” (v. “HR”) … “Brand You adventure” (v “Career development”)
“Annual Report development session” … (v.
“Employee evaluation”) … “Woman” (v. “Man”) …
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EXCELLENCE.
ALWAYS.
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“Why in the world did you go to Siberia?”
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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.
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Business* ** (*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
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Business: The Ultimate Creative
Endeavor.
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Business: The Ultimate Personal
Development-Growth
Experience.
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Business: The Ultimate
Transcendent Service
Opportunity.
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EXCELLENCE.
WANTING.
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This is not a “mature
category.”
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This is an “undistinguishe
d category.”
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EXCELLENCE. DRAMATIC.
DIFFERENCE.DOABLE.
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$798
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$415/SqFt/Wal*Mart$798/SqFt/Whole
Foods
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7X. 730A-800P.
F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%;
HD: 16%. Mkt Cap: 48% p.a.
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EXCELLENCE.
#1T.
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Cirque du Soleil!
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EXCELLENCE.
#1T.
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Donnelly’s Weatherstrip
Service
Weymouth MA
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EXCELLENCE. NO EXCUSES.
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Summary:
WallopWal*Mart16*
*Or: Why it’s so absurdly easy to beat a GIANT Company
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The “Small Guys” Guide: Wallop Wal*Mart16
*Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.)
*Never attack the monsters head on! (Instead steal niche business and lukewarm customers.)
*“Dramatically Different” (La Difference ... within our
community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)
*Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
*Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)
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What I’ve Learned about
“Small Business”
Tom Peters26June2006
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Passion for PRODUCT.OBSESSION With Product.
LOVE The Product.Aim To Be “ONLY ONES WHO DO WHAT WE DO.”
Keep ADDIN’ Stuff.Invest “UNWISELY” in R&D.
Reside Permanently In The DISCOMFORT Zone.“Unhealthy” PARANOIA Is A Good Thing.
Add Clients That PUSH-PULL.SELL. SELL. SELL. SELL.
Go For Broke: CUSTOMER CONTACT PEOPLE.PERFECTION: Customer Contact People.
Hire for ATTITUDE.INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal.
QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit
Mechanic)
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“A man without a smiling face
must not open a shop.” —Chinese Proverb
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EXCELLENCE.
PITIFUL.
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“Idiot” is too kind a
word.
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“That’s a very diverse* team.”
—Patrick Cescau, CEO, Unilever**
*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)
**Approximately 85% of Unilever’s products
are purchased by … women.
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“That’s a
VERY diverse team.”
—Patrick Cescau, CEO, Unilever* **
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“That’s a
VERY sick man.”
—Tom Peters
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EXCELLENCE.
FOUND.
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“To be a leader in consumer
products, it’s critical to have
leaders who represent the population we
serve.” —Steve Reinemund/PepsiCo
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EXCELLENCE.
OPPORTUNITY.
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“Women are the
majority market”
—Fara Warner/The Power of the Purse
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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% 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
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The Perfect Answer
Jill and Jack buy slacks in black…
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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.
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“Women don’t buy
brands. They join them.”
EVEolution
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2.6 vs. 21
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10. Women’s Market =
Opportunity No. 1.
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Cases!McDonald’s (“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 FinancialKodak (women = “emotional centers of the household”)
Nike (> jock endorsements; new def sports; majority consumer)
AvonBratz (young girls want “friends,” not a blond stereotype)
Source: Fara Warner/The Power of the Purse
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Faith, Lys, Marti, Fara …
Targeting the New Professional Woman:
How to Market and Sell to Today’s 57 Million
Working Women.
—Gerry Myers
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“Goldman Sachs in Tokyo has developed an index of 115
companies poised to benefit from women’s increased purchasing
power; over the past decade the value of shares in Goldman’s
basket has risen by 96%, against the Tokyo stockmarket’s rise of
13%.” —Economist, April 15
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EXCELLENCE.
OPPORTUNITY.
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10.6
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EXCELLENCE.
OPPORTUNITY.
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47% )
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44-65: “New Customer Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“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
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“Baby-boomer Women: The Sweetest of
Sweet Spots for Marketers” —David Wolfe and
Robert Snyder, Ageless Marketing
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EXCELLENCE.
OPPORTUNITY.
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Women.Women business owners.
Boomers-Geezers.Single-adults (Urban)
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Fastest growing demographic:
Single-person Households (>50% in
London, Stockholm, etc)
Source: Richard Scase
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% of homes purchased by single women: 1981, 10%;
2005, 20%
% of homes purchased by single men: 1981, 10%;
2005, 9%
Source: USA Today/02.15.06
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EXCELLENCE.
VALUE ADDED.
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$55B
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EXCELLENCE.
EXPERIENCE IT.
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“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
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“The [Starbucks] Fix” Is on …
“We have identified a
‘third place.’ And I
really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers
come for refuge.”
Nancy Orsolini, District Manager
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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
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CXO**Chief eXperience Officer
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EXCELLENCE.
DREAM IT.
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Furniture vs. Dreams
“We do not sell ‘furniture’ at
Domain. We sell dreams. This is
accomplished by addressing the half-formed needs in our
customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.” — Judy George,
Domain Home Fashions
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DREAM: “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
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CDM*
*Chief Dream Merchant
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EXCELLENCE.
LOVE IT.
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Kevin Roberts:
Lovemarks!
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CL O*
*Chief Lovemark Officer
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EXCELLENCE. THE STORY.
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“Storytelling
is the core of culture.”
—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
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Market Power = Story Power
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CSTO*
*Chief Storytelling Officer
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EXCELLENCE.
BEDROCK.
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Brand =
Talent.
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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.”
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Leadership’s Mt Everest/Mt Excellence
“free to do his or her absolute best” …
“allow its members to discover their
greatness.”
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“The role of the Director is to create a
space where the actor or actress can become more than they’ve ever been before, more than
they’ve dreamed of being.” —Robert Altman, Oscar
acceptance
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CQO*
*Chief quest-meister
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EXCELLENCE. WOMEN.
RULE.
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“AS LEADERS, WOMEN
RULE: New Studies find that
female managers outshine their male counterparts in almost every measure”
Title, Special Report/BusinessWeek
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Women’s 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”
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Women
Dominate Economic Growth.
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“Forget China, India and the
Internet: Economic Growth Is Driven
by Women.” —Headline, Economist,
April 15, 2006, Leader, page 14
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Impact! Add It Up!
Primary markets/Everything (“Men
buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)
Greater global workforce participation rate (“bigger contributor to GDP
growth than technology, China, India”—Economist)
Higher wages (more seniority, promotions—even if not
to CEO; greater pay equity—even if not equal)
Business “decision makers” (more
seniority, promotions—even if not to CEO)
Women-owned businesses (answer to
the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)
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EXCELLENCE. WOMEN.
SELL.
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“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the
details? Who finds it easier to meet new people? Who asks more questions in a
conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch
with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
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Health
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Childhood Obesity > Terrorism
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Bust fat
docs!
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Wash your hands.Apply #50 sunscreen.
Banish trans fatBanish high fructose corn syrup.
Exercise “30-7.”Breathe.
Stockpile for H5N1.* (*not Tamiflu!)
Avoid hospitalization.Take charge of your health.
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EXCELLENCE.
BEDROCK.
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X.Step #1:Buy a Mirror!
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“The First step in a ‘dramatic’
‘organizational change program’ is obvious—
dramatic personal change!” —RG
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“Work on me
first.” —Kerry Patterson,
Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations
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“You must
be the
change you wish to see in the
world.”Gandhi
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“It’s always showtime.”
—David D’Alessandro, Career Warfare
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motivational stuff
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“Do one thing every day that scares you.”
—Eleanor Roosevelt
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Stop Doing
It!
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“The one thing you need to know about sustained individual
success: Discover what you don’t like
doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know
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Paul Arden, Whatever You Think Think the Opposite
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“ARE YOU BEING REASONABLE? Most
people are reasonable; that’s why they only do
reasonably well.”
Source: Paul Arden, Whatever You Think Think the Opposite
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BONUS
Stating the Obvious: THE PROBLEM IS
RARELY THE PROBLEM.
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THE PROBLEM IS RARELY/NEVER THE
PROBLEM. THE RESPONSE TO THE
PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* **
*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!
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OFTEN AS NOT/MORE OFTEN
THAN NOT THE UNDERLYING
PROBLEM IS NOT MUCH OF A PROBLEM.
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PERCEPTION IS ALL THERE IS.
PERIOD.*
*From Whole Foods to IBM to the corner deli
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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.
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POWER WORDS!
“I’m sorry.”
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Stating the Obvious: MORE POWER WORDS/IDEAS
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Thank You!
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Say it with …
FLOWERS
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POWER IDEAS!
You must care.—General Melvin Zais
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EXCELLENCE. EXECUTION.
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“We have a ‘strategic plan.’ It’s
called doing things.” — Herb Kelleher
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“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 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
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You only find oil if
you drill wells.
Source: The Hunters, by John Masters, Canadian O & G wildcatter
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6:15A.M.
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????????
Work Hard > Work Smart
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EXCELLENCE.
DETERMINATION.
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BLOOD-Y-MIND-ED-
NESS
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Bloodyminded: Unreasonably
stubborn
Source: The Random House Dictionary of the English Language
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“This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s 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 on—
turning back was not an option for him.”
—Michael Korda, Ulysses Grant
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“Whenever anything is being accomplished, I
have learned, it is being done by a monomaniac
with a mission.” —Peter Drucker
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"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.
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“I’m looking for insane
commitment.”
—Twyla Tharp, The Creative Habit
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“You want ‘checklists.’ I instead offer you a ‘guaranteed’
‘formula’: Passion.
Enthusiasm. Bloody-mindedness [as contrasted
with mere ‘determination’]. Relentlessness. A demonic need to make ‘it’
happen.” —TP
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“A year from now you may wish
You had started today.”
—Karen Lamb
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Geronimo!
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“Life is not a journey to the grave with the
intention of arriving safely in a pretty and well-preserved body—but
rather a skid in broadside, thoroughly used up, totally worn out, and
loudly proclaiming, ‘Wow, what a ride!’ ” —anon.
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"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)
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EXCELLENCE.
STRETCH.
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The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
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Kevin Roberts’ Credo
1. Ready. Fire! Aim.2. If it ain’t 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!
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EXCELLENCE.
THRILLS.
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Radically Thrilling Language!
“Radically Thrilling.”
—BMW Z4 (ad)
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CTO**Chief Thrills Officer
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EXCELLENCE. WOW. NOW.
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CWO**Chief WOW Officer
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“It’s always
showtime.”
—David D’Alessandro, Career Warfare
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EXCELLE ALWAYS.