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Title: The%20Challenge:%20%20%20To%20Create%20More%20Value%20in%20All%20Negotiations


1
Welcome to Tom Peters
PowerPoint World! Beyond the set of slides
here, you will find at tompeters.com the last
eight years of presentations, a basketful of
Special Presentations, and, above all, Toms
constantly updated Master Presentationfrom which
most of the slides in this presentation are
drawn. There are about 3,500 slides in the 7-part
Master Presentation. The first five chapters
constitute the main argument Part I is context.
Part II is devoted entirely to innovationthe
sine qua non, as perhaps never before, of
survival. In earlier incarnations of the
master, innovation stuff was scattered
throughout the presentationnow it is front and
center and a stand-alone. Part III is a
variation on the innovation themebut it is
organized to examine the imperative (for most
everyone in the developed-emerging world) of an
ultra high value-added strategy. A value-added
ladder (the ladder configuration lifted with
gratitude from Joe Pine and Jim Gilmores
Experience Economy) lays out a specific logic for
necessarily leaving commodity-like goods and
services in the dust. Part IV argues that in
this age of micro-marketing there are two
macro-markets of astounding size that are
dramatically under-attended by all but a few
namely women and boomers-geezers. Part V
underpins the overall argument with the necessary
bedrockTalent, with brief consideration of
Education Healthcare. Part VI examines
Leadership for turbulent times from several
angles. Part VII is a collection of a dozen
Listssuch as Toms Irreducible 209, 209
things Ive learned along the way. Enjoy!
Download! Stealthats the whole point!
2
NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
3
Tom Peters X25EXCELLENCE.
ALWAYS.Tupelo/26 October 2007In Search of
Excellence 1982-2007
4
All you need to know
5
25
6
All you need to know except for
7
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in you long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub
8
This is itAll you need to know
9
Do one thing every day that scares you.
Eleanor Roosevelt
10
NOT YOUR FATHERS WORLD!
11
THREE BILLION NEW CAPITALISTS Clyde Prestowitz
12
APPARENTLY, NOT YOUR WORLD, EITHER!
13
40,000,000/20 Former Fed Vice-chairman Alan
Blinder remains an implacable opponent of
tariffs and trade barriers. But now he is saying
loudly that a new industrial revolutioncommunicat
ion technology that allows services to be
delivered from afarwill put as many as 40
million American jobs at risk of being shipped
out of the country in the next decade or two.
Wall Street Journal /0328 Blinder 40
million only the tip of a very big
iceberg.
14
THE SECRETS OF EXCELLENCE I THE MID-SIZED
ENTERPRISE.
15
1 Exporter?
16
4 Japan2T China2T USA
17
4 Japan3 USA2 China1 Germany
18
Reason?Daimler?BASF?Siemens?Commerzbank?
19
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
20
Reason!!!Mittelstand
21
GEOBRA/PlaymobilTrumpfRationalGoldmann
Produktions
22
Skunk Camp 1 American Mittelstand (F500
A.W.O.L.) Frank Perdue/ Perdue Farms (It
takes a tough man to make a tender
chicken.) Tom Malone/ Milliken and Company Don
Burr/ People Express Tom Monaghan/ Dominos
Pizza Stew Leonard/ Stew Leonards Hal
Rosenbluth/ Rosenbluth International John
Fisher/ Bank One of Columbus John McConnell/
Worthington Industries Bill and Vieve Gore/ W.L.
Gore Bob Buckman/ Buckman Labs (Bob almost
single-handedly invented what we now call
knowledge management.)
23
THE SECRETS OF EXCELLENCE II
MAINSTREET.(BEYOND HIGH VISIBILITY EXPORTERS.)

24
Jims Group
25
Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
26
Basement Systems Inc.
27
Basement Systems Inc.Larry JaneskyDry
Basement Science (115,000!)1990 0 2003
13M 2007 62,000,000
28
etc.PRSX/Paragon Railcar SalvageSalvaged
railcars into bridges, etc.
29
Lived in same town all adult lifeFirst
generation wealthy/no parental supportDont
look like millionaires, dont dress like
millionaires, dont eat like millionaires,
dont act like millionairesMany of the types
of businesses they are in could be classified
as dull- normal. They are welding
contractors, auctioneers, scrap-metal dealers,
portable toilets, dry cleaners, re-builders
of diesel engines, paving contractors
Source The Millionaire Next Door,
Thomas Stanley William Danko
30
WallopWal-Mart16Or Why its so ABSURDLY
EASY to BEAT a GIANT Company
31
The Small Guys Guide Wallop
WalMart16 Niche-aimed. (Never, ever all
things for all people, a mini-WalMart.) 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 ones nose!) (THIS IS WHERE
MOST MIDGETS COME UP SHORT.) Compete on
value/experience/intimacy, not price. (You aint
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!!
)
32
The Small Guys Guide Wallop WalMart16
Hands-on, emotional leadership. (We are a
great cool intimate joyful dramatically
different team working to transform our Clients
lives via Consistently Incredible
Experiences!) A community star! (Sell
local-ness per se. Sell the hell out of it!) An
incredible experience, from the first to last
momentand then in the follow-up! (These guys
are cool! They get me! They love me!) DESIGN
DRIVEN! (Design is a premier weapon-in-pursuit-o
f-the sublime for small-ish enterprises,
including the professional services.)
33
The Small Guys Guide Wallop WalMart16
Employer of choice. (A very cool, well-paid
place to work/learning and growth experience in
at least the short term marked by notably
progressive policies.) (THIS IS EMINENTLY
DO-ABLE!!) Sophisticated use of information
technology. (Small-ish is no excuse for small
aims/execution in IS/IT!) Web-power! (The Web
can make very small very big if the
product-service is super-cool and one
purposefully masters buzz/viral
marketing.) Innovative! (Must keep renewing and
expanding and revising and re-imagining the
promise to employees, the customer, the
community.)
34
The Small Guys Guide Wallop WalMart16
Brand-Lovemark (Kevin Roberts) Maniacs!
(Branding is not just for big folks with big
budgets. And modest size is actually a Big
Advantage in becoming a local-regional-niche
lovemark.) Focus on women-as-clients. (Most
dont. How stupid.) Excellence! (A small player
per me has no right or reason to exist unless
they are in Relentless Pursuit of Excellence. One
earns the rightone damn day and client
experience at a time!to beat the Big Guys in
your chosen niche!)
35
THE SECRETS OF (American) EXCELLENCE III
ACTION-VITALITY-CHURN.
36
Q4/2006500,000 ? Source Barrons 0922.07
37
Q4/2006500,000 7,700,000-7,200,000
Source Barrons 0922.07
38
Ichiro- nomics
39
Ichironomics Spokane, like Minneapolis-St Paul,
refuses to bet the economy on one or two
industries. Rather, it practices what one city
booster calls Ichironomics. Like the Seattle
Mariners center fielder, Ichiro Suzuki, we try
to hit singles and doubles. We want to improve
the overall conditions for small businesses, not
chase the large employer.Rich Karlgaard,
Forbes (NB In 2004 Suzuki broke the all-time
record for hits in a single season, with a
staggering 262.) (NB II In 2007 the mayor of
Lisbon reduced the amount of time to get a
business license from weeks or months to,
literally, minutes.)
40
THE SECRETS OF EXCELLENCE IV UNBRIDLED
IMAGINATION.
41
Single greatest act of pure imagination
42
24
43
dubai
44
THE FUTURE BELONGS TO SMALL POPULATIONS
WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE
THE TEMPTATION OFOR DO NOT HAVE THE OPTION
OFEXPLOITING NATURAL RESOURCES.Source Juan
Enriquez/As the Future Catches You
45
THE SECRETS OF EXCELLENCE V EDUCATION FOCUSED
ON NURTUTING CREATIVITY.
46
Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
47
Every child is born an artist. The trick is to
remain an artist. Picasso
48
My wife and I went to a kindergarten
parent-teacher conference and were informed that
our budding refrigerator artist, Christopher,
would be receiving a grade of Unsatisfactory in
art. We were shocked. How could any childlet
alone our childreceive a poor grade in art at
such a young age? His teacher informed us that
he had refused to color within the lines, which
was a state requirement for demonstrating
grade-level motor skills. Jordan Ayan,
AHA!
49
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer
2002/Research by Thomas Lockwood
50
Ye gads Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, hes actually found
a negative correlation. It seems that
school-related evaluations are poor predictors of
economic success, Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most schools
penalized risk takers. Most educational systems
reward those who play it safe. As a result, those
who do well in school find it hard to take risks
later on. Richard Farson Ralph Keyes,
Whoever Makes the Most Mistakes Wins
51
Muhammad Yunus All human beings are
entrepreneurs. When we were in the caves we were
all self-employed . . . finding our food, feeding
ourselves. Thats where human history began . . .
As civilization came we suppressed it. We became
labor because they stamped us, You are labor.
We forgot that we are entrepreneurs. Source
Muhammad Yunus/The News HourPBS/1122.2006
52
THE SECRETS OF EXCELLENCE VI THE ESSENCE OF
ENTERPRISE.
53
Cause (worthy of commitment)Space (room
for/encouragement
for initiative) Decency (respect,
humane)
54
Cause (worthy of commitment)Space (room
for/encouragement
for initiative-adventures) Decency
(respect, grace,
integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
55
Cause (worthy of commitment)Space (room
for/encouragement for initiative-adventures)
Decency (respect, grace, integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
servant leadership
56
Cause Space Decency serviceexcellence
servant leadership
57
EXCELLENCE. CIRCA 1978.CIRCA 1982.CIRCA
1992.CIRCA 1994.CIRCA 1996.CIRCA 2006.CIRCA
2004-2007.CIRCA SEPTEMBER 2007.CIRCA 15 OCTOBER
2007.CIRCA 1966-2007.
58
1978.A START.
59
Hard Is Soft (s)Soft Is Hard (people)
60
1982.(OCTOBER)A BOOK.
61
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
62
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
63
1993.LOU FINDS GOLD IN THE RUBBLE.
64
55B
65
Trapper lt20 per beaver pelt.Source WSJ
66
wdcp/Wildlife Damage-control Professional
150 to remove problem beaver 750-1,000
for flood-control piping so that beavers can
stay. Source WSJ
67
Trapper RedneckWDCP PSF/ Professional
Services Provider
68
7X to 40Xfor Solution rather than
service transaction
69
1994.COOL IS COOL.
70
You know a design is good when you want to lick
it. Steve Jobs Source Design Intelligence
Made Visible, Stephen Bayley Terence Conran
71
1996.THE EDUCATION OF TOM.
72
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
73
10.6
74
The growth and success of women-owned businesses
is one of the most profound changes taking place
in the business world today. Margaret
Heffernan, How She Does IT How Women
Entrepreneurs Are Changing the Rules of Business
Success.
75
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
76
10 UNASSAILABLE REASONS WOMEN
RULE Women make all the financial
decisions.Women control all the wealth. Women
substantially outlive men. Women start most of
the new businesses. Womens work force
participation rates have soared
worldwide. Women are closing in on same pay for
same job. Women are penetrating senior
ranks rapidly even if the pace is slow for
the corner office per se. Womens
leadership strengths are exceptionally well
aligned with new organizational effectiveness
imperatives. Women are better salespersons than
men. Women buy almost everythingcommercial
as well as consumer goods. So what exactly is
the point of men?
77
2006.STILL COLD IN MAY.
78
Why in the World did you go to Siberia?
79
Enterprise (at its best) An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that elicits maximum
concerted human
potential in the wholehearted service of
others.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
80
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!
81
2004-2007.INVITATIONS.
82
Better By Design A National StrategyNZ
Design Excellence
83
2007.SEPTEMBER.SYDNEY.DRUCKER TRIBUTE.
84
I have always believed that the purpose of the
corporation is to be a blessing to the
employees. Boyd Clarke TP An
organization is, in fact and after all is
said and done, a/the house in which most of us
live most of the time.
85
Organizations exist to serve. Period. Leaders
live to serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain
create/must necessarily create organizations
which are no less than Cathedrals in which the
full and awesome power of the Imagination and
Spirit and native Entrepreneurial flair of
diverse individuals is unleashed In passionate
pursuit of jointly perceived soaring purpose and
personal and community and client service
Excellence.
86
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
87
16 OCTOBER 2007.HAPPY 25.
88
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)
89
1966.2007.
90
What makes God laugh?
91
People making plans!
92
try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Screw it up. Try it. Try it. Try
it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it. Screw it up.
Try it. Try it. Try it.
93
do things.
94
We have a strategic plan. Its called doing
things. Herb Kelleher
95
try things.
96
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
97
Screw. things.Up.
98
Sams Secret 1!
99
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
100
try.Miss.try.
101
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
102
No try. No deal.
103
You miss 100 of the shots you never take.
Wayne Gretzky
104
EXCELLENCE. BEDROCK.LEADERSHIP.10Ps.
105
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
106
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
107
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)
108
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
109
BZ I am a Dispenser of Enthusiasm!
110
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
111
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
112
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
113
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
114
Its always showtime. David DAlessandro,
Career Warfare
115
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
116
You must be the change you wish to see in the
world.Gandhi
117
Questions What do others think of you? Are you
sure? What do you think of you? Are you
sure? What is your impact on others? Are you
sure? What is your impact on others? Are you
sure? What is your impact on others? Are you
sure? What are the little things you
(perhaps unconsciously) do that cause people to
shrivelor blossom? Are you sure? What do you
want? Are you sure? Are you aware of your
changing moods? Are you sure? How fragile is
your ego? Are you sure? Do you have a true
confidant? Are you sure? Do you perform brief
or not-so-brief self-assessments? Do you talk
too much? Are you sure? Do you know how to
listen? Are you sure? Do you listen? Are you
sure? What is your style of hashing things
out? Are you perceived as (a) arrogant, (b)
abrasive (c) attentive, (d) genuinely interested
in people, (e) etc? Are you sure? Are you
flexible? Have you changed your mind about
anything important in a while? Are you
comfortable-uncomfortable with folks on the front
line? Do you think youre in touch with the
pulse of things around here? Are You Sure?
Are you too emotional/intuitive? Are you too
unemotional/rational? Do you spend much time
with people who are new to you? Do you think
questions like this are so much BS?
118
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
119
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
120
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
121
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES. PEOPLE.potent.Positive.
122
I used to have a rule for myself that at any
point in time I wanted to have in mind as it so
happens, also in writing, on a little card I
carried around with me the three big things I
was trying to get done. Three. Not two. Not
four. Not five.Not ten.Three. Richard
Haass, The Power to Persuade
123
Dennis, you need a To-dont List !
124
The one thing you need to know about sustained
individual success Discover what you dont like
doing and stop doing it. Marcus
Buckingham, The One Thing You Need to Know
125
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
126
Leaders do people. Period. Anon.
127
Leaders SERVE people. Period. inspired by
Robert Greenleaf
128
Leaderships 11th P
Promotion
129
2 per Year/ 20 per Decade Excellence Legacy
130
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
131
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
132
One who does less than he can is a thief.
Gandhi
133
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
134
On NELSON other admirals more frightened of
losing than anxious to win
135
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
136
The 7Es
137
Exuberance! Energy!Empathy!Engagement!Empowerm
ent!Execution!Excellence!
138
The 1E
139
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)
140
Ger-on-i-mo!
141
"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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