The Challenge: To Create More Value in All Negotiations

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Tom Peters EXCELLENCE. ALWAYS.ZIM
Integrated Shipping ServicesNEWAVE08/AgenTeam02
July 2008/Macau (Taipa-Coloane)
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NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
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Auckland/pmtaipei/vpsingapore/pmbangkok/dpmfla
ndersamsterdam/MPsbarcelona/maKuala
Lumpur/CMlisbon/madublin/pmbuenos airessão
pauloWarsaw/MPslondon/mpsmilanSEOUL/Mamexico
d.f./mistanbul/dpmdubai/rfmoman/rfmusastockho
lm/mpsmauritius/pmjohannesburgbucharest/CM
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Slides at tompeters.com
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Thank you Ike, Ben and Delaware
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Allied commands depend on mutual confidence
and this confidence is gained, above all
through the development of friendships.
General D.D. Eisenhower, Armchair General
(05.08)Perhaps his most outstanding ability
at West Point was the ease with which he made
friends and earned the trust of fellow cadets
who came from widely varied backgrounds it was
a quality that would pay great dividends during
his future coalition command
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Give good tea!
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eighty percent of success is showing up.
Woody Allen
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l (21) L(-21)
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Thank you Rich!
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Mapping your competitive position or
Rich DAveni/HBR
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The Have you 50See Appendix One
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1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?
Note See APPENDIX ONE
for full list
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1
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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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Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
none of the long-term survivors managed to
outperform the market. Worse, the longer
companies had been in the database, the worse
they did. Financial Times
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Dick Kovacevich You dont get better by being
bigger. You get worse.
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Data drawn from the real world attest to a fact
that is beyond our control Everything in
existence tends to deteriorate. Norberto
Odebrecht, Education Through Work
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1.1
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1 Exporter?
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4 Japan3 USA2 China1 Germany
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Reason??!!Mittelstand
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Or Goldmann Produktions(11/50/5M/dip and
coat, expensive pigments vs through coloring,
fades Bekro Chemie)
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2
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1/42
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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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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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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

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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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3
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2-5/42
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De-cent-ral-iz-a-tion!
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Enemy 1I.C.D.Note 1 Inherent/Inevitable/Imm
utable Centralist DriftNote 2 Jim Burkes
1-word vocabulary No.
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Decentralization vs Centralization Thats All
There Is (from childrearing 101 to the
Federalist Papers to Org.2007)
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Ex-e-cu-tion!
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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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(1) sum of Projects Goal
(Vision) (2) sum of Milestones
project(3) rapid Review
Truth-telling accountability
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Ac-count-a-bil-ity!
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CF 30 (no salesfolk)MH 80 (salesfolk)
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GE 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)
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615A.M.
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DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
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3.1
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K.i.s.s.Keep It Simple, Stupid
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90K in U.S.A. ICUs on any given day 178
steps/day in ICU.50 stays result in serious
complicationSource Atul Gawande, The
Checklist (New Yorker, 1210.07)
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Case The simple Checklist!
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Peter Pronovost, Johns Hopkins,
2001Checklist, line infections1/3rd at
least one error when he startedNurses/permissio
n to stop procedure if doc, other not following
checklistIn 1 year, 10-day line-infection
rate 11 to 0 Source Atul Gawande, The
Checklist (New Yorker, 1210.07)
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Docs, nurses make own checklists on whatever
process-procedure they chooseWithin weeks,
average stay in ICU down 50Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
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Beware of the tyranny of making Small Changes to
Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
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Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things using Small, Almost Invisible
Straightforward Levers with Big Systemic Impact.
TP
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Everything matters -80 Source Nudge,
Richard Thaler and Cass Sunstein, etching of fly
in the urinal reduces spillage by 80,
Schiphol Airport
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4
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1/42
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X XFXExcellence Cross-functional
Excellence
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Stanford/Hagadorn/Interdisciplinary raison
dêtreConoco/geologists-geophysicistsOld
HP/RD-SalesSchlumberger IPM-IBM Global
Services- UPS Logistics, HP-EDS (bet the
company on integrating others product and
service delivery throughout the supply
chain)GSK/7 CEDDsChiat/DayBatalden/DHMC/
clinical microsystemsJCS assignment
pre-FlagEtc.Etc.
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The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer Solutions
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1. Its our organization to make workor not.
Its not them, the outside world thats the
problem. The enemy is us. Period. 2.
Friction-free! Dump 90 of middle managersmost
are advertent or inadvertent power freaks. We
are allevery one of usin the Friction Removal
Business, one moment at a time, now and
forevermore. 3. No stovepipes! Stove-piping,
Silo-ing is an Automatic Firing Offense.
Period. No appeals. (Within the limits of
civility, somewhat public firings are not out
of the questionthat is, make one and all aware
why the axe fell.) 4. Everything on the Web. This
helps. A lot. (Everything Big word.) 5. Open
access. All available to all. Transparency,
beyond a level thats sensible, is a de facto
imperative in a Burn-the-Silos strategy. 6.
Project managers rule!! Project managers running
XF (cross-functional) projects are the Elite of
the organization, and seen as such and treated as
such. (The likes of construction companies have
practiced this more or less forever.) 7.
Value-added Proposition Application of
integrated resources. (From the entire
supply-chain.) To deliver on our emergent
business raison detre, and compete with the
likes of our Chinese and Indian brethren, we must
co-operate with anybody and everybody 24/7.
IBM, UPS and many, many others are selling far
more than a product or service that worksthe new
it is pure and simple a product of XF
co-operation the product is the co-operation
is not much of a stretch.
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Never waste a lunch!
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???? XF lunches Measure!
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8. XF work is the direct work of leaders! 9.
Integrated solutions Our Culture.
(Therefore XF Our culture.) 10. Partner with
best-in-class only. Their pursuit of Excellence
helps us get beyond petty bickering. An all-star
team has little time for anything other than
delivering on the (big) Client promise. 11. All
functions are created equal! All functions
contribute equally! All All. 12. All functions
are PSFs, Professional Service Firms.
Professionalism is the watchwordand true
Professionalism rise above turf wars. You are
your projects, your legacy is your projectsand
the legacy will be skimpy indeed unless you pass,
with flying colors, the works well with others
exam! 13. We are all in sales! We all (a-l-l)
sell those Integrated Client Solutions. Good
salespeople dont blame others for screw-upsthe
Clint doesnt care. Good salespeople are
quarterbacks who make the system
work-deliver. 14. We all invest in wiring the
Client organizationwe develop comprehensive
relationships in every part (function, level) of
the Clients organization. We pay special
attention to the so-called lower levels, short
on glamour, long on the ability to make things
happen at the coalface. 15. We all live the
Brandwhich is Delivery of Matchless Integrated
Solutions which transform the Clients
organization. To live the brand is to become a
raving fan of XF co-operation.
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???????Success doesnt depend on the number of
people you know it depends on the number of
people you know in high places!or Success
doesnt depend on the number of people you know
it depends on the number of people you know in
low places!
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1. Most Tries Wins2. DECENTRALIZATION.3.
EXECUTION.4. ACCOUTABILITY.5. 615A.M.6. XFX
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5
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Hard Is SoftSoft Is Hard
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If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the game it is the game. Lou Gerstner, Who
Says Elephants Cant Dance
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5.1
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Hard Is SoftSoft Is Hard
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R.O.I.R.
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Return On Investment In Relationships
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The capacity to develop close and enduring
relationships is the mark of a leader.
Unfortunately, many leaders of major companies
believe their job is to create the strategy,
organization structure and organizational
processesthen they just delegate the work to be
done, remaining aloof from the people doing the
work. Bill George, Authentic Leadership
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FYI Relationship power Monopoly power
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FYI Sustainable competitive advantage
Relationship-based advantage (period.)
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5.2
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The four most important words in any
organization are What do you think?
Source courtesy Dave Wheeler, posted at
tompeters.com, source of original unknown
(0609.08)
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18 Source How Doctors Think, Jerome Groopman
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5.3
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Hard Is SoftSoft Is Hard
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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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5.4
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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5.5
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Attending to the Last 98 The New
Management Science, or Hard Is Soft, Soft
Is Hard NOTE Complete section at APPENDIX 2
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S f( ___ ) Success Is a Function of
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S ƒ(DR -2L, -3L, 4L IE) Number and depth
of relationships 2, 3, and 4 levels down, inside
and outside the organization S
ƒ(SDgtSU) Sucking down is more important than
sucking upthe idea is to have the entire
organization working for you. S ƒ(non-FF,
non-FL) Number of friends, number of lunches
with people not in my function S ƒ(FF) Number
of friends in the finance function-organization S
ƒ(OF) Oddball friends S ƒ(PDL) Purposeful,
deep listeningthis is very hard
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EXCELLENCE. VALUE ADDED.UP THE LADDER.NoT
Optional.
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The Value-added Ladder/TRANSACTIONSServicesGoo
ds Raw Materials
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6.1
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EXCELLENCE.VALUE-ADDED LADDER. SOLVE IT.
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M 0
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IBM 55BAlso HP-EDS
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And the M Stands for ?Gerstners IBM
Systems Integrator of choice./BW (Lou, help
us turn all this into that long-promised
revolution. ) IBM Global Services
(Integrated Systems Services Corp.) 55B
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Planetary Rainmaker-in-Chief!Palmisanos
strategy is to expand techs borders by pushing
usersand entire industriestoward radically
different business models. The payoff for IBM
would be access to an ocean of revenuePalmisano
estimates it at 500 billion a year that
technology companies have never been able to
touch. Fortune
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THE GIANT STALKING BIG OIL How Schlumberger Is
Rewriting the Rules of the Energy Game. IPM
Integrated Project Management strays from
Schlumbergers traditional role as a service
provider and moves deeper into areas once
dominated by the majors. Source BusinessWeek
cover story, January 2008
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves represent.
ecompany.com (E.g., UPS Logistics manages the
logistics of 4.5M Ford vehicles, from 21 mfg.
sites to 6,000 NA dealers)
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MasterCard Advisors
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California Closets a whole-life upgrade, not
just a tidy bedroom. WSJ/0329.07, Why the
Container-Store Guy Wants to Be Your Therapist
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Huge Customer Satisfaction versus Customer
Success
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The Value-added Ladder/TRANSFORMATION Customer
Success/ Gamechanging SolutionsServicesGoods
Raw Materials
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The 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
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The Value-added Ladder/TRANSFORMATION Customer
Success through Implemented Gamechanging
SolutionsServicesGoods Raw Materials
Subject-matter Professionals and Organization
Effectiveness Experts (Degree MBA,
Organizational Psychology)
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6.1.1
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EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF)
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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Department Head to Managing Partner, IS
HR, RD, etc. Inc.
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AnswerPSF
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Are you the Principal Engine of Value
AddedE.g. Your RD budget as robust as the
New Products team?
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6.1.2
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The PSF35 Thirty-Five Professional Service
Firm Marks of Excellence
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The PSF35 The Work The Legacy1.
CRYSTAL CLEAR POINT OF VIEW (E very
Practice Group If you cant explain your
position in eight words or less, you dont
have a positionSeth Godin)2. DRAMATIC
DIFFERENCE (We are the only ones who do what
we doJerry Garcia)3. Stretch Is Routine
(Never bite off less than you can
chewanon.)4. Eye-Appetite for Game-changer
Projects (Excellence at Assembling Best
TeamFast) 5. Playful Clients (Adventurous
folks who unfailingly Aim to Change the
World)6. Small Uneconomic Clients with Big
Aims 7. Life Is Too Short to Work with Jerks
(Fire lousy clients)8. OBSESSED WITH LEGACY
(Practice Group and Individual Dent the
UniverseSteve Jobs)9. Fire-on-the-spot Anyone
Who Says, Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a
commodity 10. Consistent with 9 above DO
NOT SHY AWAY FROM THE WORD (IDEA)
RADICAL
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The PSF35 The Client
Experience11. Always team with client full
partners in achieving memorable results
(Wanted Chimeras of Moonstruck
Minds!)12. We will seek assistance Anywhere to
assemble the Best-in- Planet Team for the
Project13. Client Team Members routinely declare
that working with us was the Peak
Experience of my Career14. The jobs not done
until implementation is 100.00 complete
(Those who dont get it must go)15.
IMPLEMENTATION IS NOT COMPLETE UNTIL THE
CLIENT HAS EXPERIENCED CULTURE CHANGE16.
IMPLEMENTATION IS NOT COMPLETE UNTIL
SIGNIFICANT TECHNOLOGY TRANSFER HAS TAKEN
PLACE-ROOT (Teach a man to fish )17. The
Final Exam DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?
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UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
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Ideal finance staffer Full-scale business
partner CFO? to the/each department
she serves. Not copobsessed instead with
value-added Integration first, stovepipe
secondary MBWA/bigtime Networker to the rest
of Finance
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6.1.3
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Psf.Bedrock.
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Purchasing 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)
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Fleet ManagerRolling Stock Cost Minimization
Officervs/orChief of Fleet Lifetime Value
Maximization Strategic Supply-chain
Executive Customer Experience Director (via
drivers)
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Big Idea Corporation as Mega-PSF
(Professional Service Firm) Virtual
Collection of Entrepreneurially-minded
Professionals (Talent/Roster)
Creating/Applying Intellectual Capital (Work
Product)
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Are you the Principal Engine of Value
AddedE.g. Your RD budget as robust as the
New Products team?
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6.2
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EXCELLENCE.VALUE-ADDED LADDER. 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 thats not work or home. Its the
place our customers come for refuge. Nancy
Orsolini, District Manager
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The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding ExperiencesCustomer
Success/Implemented Gamechanging
SolutionsServicesGoods Raw MaterialsTheatric
al Skills (Degree Theater Arts)
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ltTGWvs. gtTGRThings Gone WRONG/Things Gone
RIGHT
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2-cent candy
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We are the company we keep
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The Hang Out Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision
about Innovate, Yes or No
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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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Diverse 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
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EXCELLENCE. BEDROCK.LEADERSHIP. THE 9Ps.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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I am a Dispenser of Enthusiasm!Ben Zander
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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The 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
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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MBWA
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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You must be the change you wish to see in the
world.Gandhi
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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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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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
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On NELSON other admirals more frightened of
losing than anxious to win
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Excellence can be obtained if you ... care
more than others think is wise ... risk
more than others think is safe ... dream
more than others think is practical ...
expect more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
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Excellence Is a Universal Striving. If Not
Excellence, What? If not excellence now, when?