Tom Peters

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Tom PetersEXCELLENCE. ALWAYS.World
Business ForumMilano/27October2006
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Slides at tompeters.com
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BonusThink!vs.do!Tom peters27 October 2006
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3/Billion5/42500/900 Americas god-given
right
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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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 very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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Forbes100 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.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
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Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
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HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Message/Implication go for it!C.E.O. to
C.D.O.
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EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
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25
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20-minute rule Craig Johnson/30 yrs
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EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
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Jims Group
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EXCELLENCE. SIBERIA.
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Why in the world did you go to Siberia?
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Raging Success P-SQUARED. C. E-CUBED.
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People.Product.Customers.Execution.Enthusiasm.
Excellence.
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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
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Why in the world did you go to Siberia?
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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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To me business isnt about wearing suits or
pleasing stockholders. Its about being true to
yourself, your ideas and focusing on the
essentials. Richard Branson
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EXCELLENCE. INNOVATE. OR. DIE.
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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EXCELLENCE. INNOVATE. ALL. WRONG.
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More Than 1 RD spending, last 25
years/USA?
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GM
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
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When 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
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EXCELLENCE. INNOVATE. AXIOMATIC.
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The Mess Is the Message! Period!
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EXCELLENCE. INNOVATE. TACTICS.
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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. try it. Try it.
Try it. try it. Try it. Try it. Try it. Try it.
Try it.
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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 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
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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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
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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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
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Get mad. Do something about it. Now.
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tolerate encourage? failure
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Speed/ Tempo
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the FedEx Economy headline/New York
Times/10.08.05
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Any3 Anything/ Anywhere/ Anytime
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re-imagine the value added equation
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55B
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The NEW Value-added LadderGamechanging
Solutions/ Implemented Customer
successServices/TransactionsManufactured
Goods/Things Extracted Raw Materials
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HCare CIO Technology Executive (workin in a
hospital) Or/to Full-scale, Accountable (life
or death) Member-Partner of XYZ Hospitals
Senior Healing-Services Team (who happens to be a
techie)
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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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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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The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
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Furniture vs. DreamsWe 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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The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
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Dream MerchantIBM
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totally re-imagine the business around the
two staggering new opportunities
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women
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Womens TrifectaBuy/all Wealth/all Lead/
better Eclipse of males/whoops
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Women are the majority market Fara
Warner/The Power of the Purse
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She knows more about the Volvo than the
salesman who greets her at the door. But how is
she treated? As if she has a low IQ , is
slightly hard of hearing , and really has no
right to be buying a luxury car and if she
brought a male friend with her, odds are 101
that the clueless salesperson spent most of his
time speaking to him . Selling to Men,
Selling to Women, Jeffery Tobias Halter
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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, 15 April 2006
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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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Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
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1. Participation rate/2 of 3 new jobs,
last 30 years.2. Male workforce
departures/SENIOR male workforce
departures.3. Shrinking pay gap/same jobs.4.
More senior positions. Greater decision-
making/expenditure/organization design
authority. More line jobs.5. Female solo
head-of-household growing.6. Longevity.7.
Education.8. More effective money management.
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
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boomers-geezers
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2000-2010 Stats18-44 -155 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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Boomers-Geezers-Womens TrifectaBuy/all
Wealth/all time left/ lots
Eclipse of males/retire-die
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People turning 50 today have more than half of
their adult life ahead of them. Bill Novelli,
50 Igniting a Revolution to Reinvent America
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We become who we spend time with!
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Measure 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
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The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma At the top!
Gary Hamel/Harvard Business Review
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EXCELLENCE.1966. 2006.
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4/40
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De-centralizationexecutionaccountability615a.m
.
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If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
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De-centralizationexecutionaccountability615a.m
.
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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De-centralizationexecutionaccountability615a.m
.
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De-centralizationexecutionaccountability615a.m
.
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EXCELLENCE. BEDROCK.TALENT.
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Hire very good people!
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.
Ed Michaels, War for Talent
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INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!
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In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
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PUT HR AT THE HEAD OF THE HEAD TABLE.
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DD21M
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LIVE FOR TALENT!
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Our 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
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Brand Talent.
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EXCELLENCE. BEDROCK.LEADERSHIP.
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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)
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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You must be the change you wish to see in the
world.Gandhi
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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Relentless 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
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Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
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Leaders do people. Period. Anon.
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PURPOSE.PASSION.Presence.Personal.PERSISTENCE.
PEOPLE.
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EXCELLE ALWAYS.
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BonusThink!vs.do!Tom peters27 October 2006
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Think!vs.do!
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Never forget implementation , boys. In our work,
its what I call the last 98 percent of the
client puzzle. Al McDonald, former Managing
Director, McKinsey Co, to a project team that
included TP
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The (Strange) Case of Peter Drucker Michael
Porter vs. The Non-linearistsHERBERT SIMON.
(Administrative Behavior.) JAMES MARCH. KARL
WEICK. (The Social Psychology of Organizing.)
EUGENE WEBB. Henry MINTZBERG. (The Rise and
Fall of Strategic Planning.) JAMES UTTERBACK.
THOMAS KUHN. (The Structure of Scientific
Revolutions.) CHARLES LINDBLOM. Daniel
goleman. INNOVATION BIOGRAPHERS.
(Transcontinental Railroad, Electrification,
Radio, Television, Containerization, DNA,
Computers, Military History, Etc.) MOST
POLITICAL SCIENTISTS. SILICON VALLEY. Etc.
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Linearist Plan it!Non-linearist Try it!
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Linearist think!Non-linearist do!
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Linearist hypothesize!Non-linearist
experiment!
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Linearist failure unnecessaryNon-linearist
failure life
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Linearist agtbNon-linearist
bgtaAttitude shapes behaviorBehavior
shapes attitude
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Linearist deliberate!Non-linearist
relentless! Do it right the first
time (Hero Phil Crosby) Never retreat (Hero
U.S. Grant)
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Linearist logical!Non-linearist
passionate!
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Linearist give me genius!Non-linearist
give me luck!
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Linearist spotless academic record!Non-linear
ist a.d.d.
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Linearist measured pace!Non-linearist
Tempo! Tempo! Tempo!
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Linearist think! Plan! (r.a.f.)Non-linearist
Try it! Screw it up! Fix it! Try it again!
(r.f.a.) Ready. Aim. Fire.ready. Fire.
Aim. (Or, circa 2006 fire. Fire. Fire.)
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Cheap ShotLinearist minimize
cost.Non-linearist maximize revenue.
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Linearist marketing rules.Non-linearist
sales rules.
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Linearist Background planning, marketing
finance.Non-linearist background sales
operations.
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Linearist likes ideas.Non-linearist
likes people.
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Linearist likes parts.Non-linearist
likes wholes.
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Linearist office walls.Non-linearist
office none.
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Linearist style meetings.Non-linearist
style m.b.w.a. Managing by wandering around
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Linearist reads michael porter. Peter
drucker.Non-linearist reads waterman
peters. Tom clancy. Michael peterBob
tom tom
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Linearist reads michael porter. Peter
drucker.Non-linearist reads doesnt
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Linearist preferred baseball score
1-0.Non-linearist preferred baseball score
11-9.
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Linearist preferred football score
7-0.Non-linearist preferred football score
41-38.
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Linearist criminal record none.Non-lineari
st criminal record disorderly
conduct.Chronic jaywalking.
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Linearist drives lincoln town car. Ford
explorer (weekends).Non-linearistdrives
bmw. Harley-davidson (weekends).
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The (Strange) Case of Peter Drucker Michael
Porter vs. The Non-linearistsHERBERT SIMON.
(Administrative Behavior.) JAMES MARCH. KARL
WEICK. (The Social Psychology of Organizing.)
EUGENE WEBB. Henry MINTZBERG. (The Rise and
Fall of Strategic Planning.) JAMES UTTERBACK.
THOMAS KUHN. (The Structure of Scientific
Revolutions.) CHARLES LINDBLOM. Daniel
goleman. INNOVATION BIOGRAPHERS.
(Transcontinental Railroad, Electrification,
Radio, Television, Containerization, DNA,
Computers, Military History, Etc.) MOST
POLITICAL SCIENTISTS. SILICON VALLEY. Etc.
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EXCELLE ALWAYS.