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


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 EXCELLENCE. ALWAYS.New
Master/0411.08/1156
4
Slides at tompeters.com
5
5 PartsIntroductionP1/Generic/15
Key PointsP2/LeadershipP3/TalentP4/The
EquationsP5/Implementation
6
We Have Thank you, Starbucks!
7
Sports You beat yourself!
8
Speech You beat yourself!
9
Internal organizational excellence Deepest
Blue Ocean
10
A Blue ocean is by definition very profitable
and will be quickly copied. sustainable blue
(Internal organizational excellence) is far more
difficult to copy.
11
Internal organizational excellence Brand
inside
12
B(I) gt B(O)
13
Part I
14
EXCELLENCE. ALWAYS.Essentials.
15
1/15
16
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)
17
2
18
25
19
2a
20
MBWA
21
5,000 miles for a 5-minute face-to-face
meeting
22
I call 60 CEOs in the first week of the year
to wish them happy New Year. Hank Paulson,
former CEO, Goldman SachsSource Fortune,
Secrets of Greatness, 0320.05
23
MBWA, Grameen Style!Conventional banks ask
their clients to come to their office. Its a
terrifying place for the poor and illiterate.
The entire Grameen Bank system runs on the
principle that people should not come to the
bank, the bank should go to the people. If any
staff member is seen in the office, it should be
taken as a violation of the rules of the Grameen
Bank. It is essential that those setting up a
new village Branch have no office and no place
to stay. The reason is to make us as different as
possible from government officials. Source
Muhammad Yunus, Banker to the Poor
24
2b
25
The Have you 50
26
The Have you 50
27
Mapping your competitive position or
28
1. Have you in the last 10 days visited a
customer? 2. Have you called a customer
TODAY? 3. Have you in the last 60-90 days had
a seminar in which several folks from the
customers operation (different levels, different
functions, different divisions) interacted, via
facilitator, with various of your folks? 4. Have
you thanked a front-line employee for a small act
of helpfulness in the last three days? 5. Have
you thanked a front-line employee for a small act
of helpfulness in the last three hours? 6.
Have you thanked a front-line employee for
carrying around a great attitude today? 7. Have
you in the last week recognizedpubliclyone of
your folks for a small act of cross-functional
cooperation? 8. Have you in the last week
recognizedpubliclyone of their folks (another
function) for a small act of cross-functional
cooperation? 9. Have you invited in the last
month a leader of another function to your weekly
team priorities meeting? 10. Have you personally
in the last week-month called-visited an internal
or external customer to sort out, inquire, or
apologize for some little or big thing that went
awry? (No reason for doing so? If truein your
mindthen youre more out of touch than I dared
imagine.)
29
1. Have you in the last 10 days visited a
customer?2. Have you called a customer TODAY?
30
2c
31
You Your calendarCalendars never lie
32
3
33
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub.
34
3A
35
2-cent candy
36
3-cent lemon!
37
ltTGWvs. gtTGR
38
What Rikyu demanded was not cleanliness alone,
but the beautiful and the natural also. Kakuzo
Okakura, The Book of Tea
39
Rikyu was watching his son Sho-an as he swept
and watered the garden path. Not clean enough,
said Rikyu, when Sho-an had finished his task,
and bade him try again. After a weary hour, the
son turned to Rikyu Father, there is nothing
more to be done. The steps have been washed for
the third time, the stone planters and the trees
are well sprinkled with water, moss and lichens
are shining with a fresh verdure not a twig, not
a leaf have I left on the ground. Young fool,
chided the tea-master, that is not the way a
garden path should be swept. Saying this, Rikyu
stepped into the garden, shook a tree and
scattered over the garden gold and crimson
leaves, scraps of the brocade of autumn! What
Rikyu demanded was not cleanliness alone, but the
beautiful and the natural also. Kakuzo Okakura,
The Book of Tea
40
First Step (?!) Hire a theater director, as a
consultant or FTE!
41
4
42
one idea.1966-2008.
43
What makes God laugh?
44
People making plans!
45
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. Screw it up. it. Try
it. Try it. try it. Try it. Screw it up. Try it.
Try it. Try it.
46
We have a strategic plan. Its called doing
things. Herb Kelleher
47
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
48
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
49
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
50
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
51
You miss 100 of the shots you never take.
Wayne Gretzky
52
Joe J. Jones 1942 2008 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
53
4a
54
one point one idea/s.1966-2008.
55
Execution is strategy. Fred Malek
56
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
57
Execution Deepest Blue Ocean
58
5
59
X XFXExcellence Cross-functional
Excellence
60
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer Solutions
61
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 dêtre, and compete with the
likes of our Chinese and Indian brethren, we must
cooperate 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 cooperation
the product is the cooperation is not much of a
stretch.
62
5A
63
K.i.s.s.Keep It Simple, Stupid
64
Case The simple Checklist!
65
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)
66
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)
67
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)
68
Replicate in Inner City Detroit (resource
strapped, staff cut 1/3rd, poorest patients
in USA)Nurses QB the processProject manager
for overall process implementationExec
involvement (help with little thingsits all
little things)Blue Cross/insurers, small
bonuses for participating6 months, 66
decrease in infection rate USA bottom 25 in
hospital rankings to top 10Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
69
Pronovost is focused on work that is not
normally considered a significant contribution in
academic medicine. As a result, few others are
venturing to extend his achievements. Yet his
work has already saved more lives than that of
any laboratory scientist in the last decade.
Atul Gawande, The Checklist (New Yorker,
1210.07)
70
Beware of the tyranny of making Small Changes to
Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
71
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
72
6
73
TP How to flush 500,000 down the toilet in
one easy lesson!!
74
lt CAPEXgt People!
75
Brand Talent.
76
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.
77
PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
78
6A
79
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
80
6B
81
?
82
A man without a smiling face must not open a
shop. Chinese Proverb
83
EMPHASIZE THE SOFT SKILLS.
84
6c
85
IBP Remarkable challenge, rapid professional
growth, respect, satisfaction, fun, stunning
opportunity, exceptional reward, amazing peer
group, full membership in Club Adventure,
maximized future employabilitySource Ed
Michaels, The War for Talent TP
86
B(I) gt B(O)
87
6d
88
53 53
89
6e
90
2/year legacy.
91
6f
92
1 cause ofDis-satisfaction?
93
The Big Three Marriage Parenthood 1st Line
Supervisor Accomplishment through others
94
6g
95
Leaders do people. Period. Anon.
96
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
97
6h
98
Leaders SERVE people. Period. inspired by
Robert Greenleaf
99
No matter what the situation, the excellent
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
100
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
101
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.
102
6i
103
Every child is born an artist. The trick is to
remain an artist. Picasso
104
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/2006 Nobel Peace prize winner,
father of micro-lending /The News
HourPBS/1122.2006
105
7
106
Do one thing every day that scares you.
Eleanor Roosevelt
107
Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint 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!
108
7a
109
We are the company we keep
110
The Hang Out Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision
about Innovate, Yes or No
111
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
112
Normal o for 800
113
8
114
Single greatest act of pure imagination
115
24
116
dubai
117
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
118
3Ms Innovation Crisis How Six Sigma Almost
Smothered Its Idea CultureSource Title/Cover
Story, BW, 0611.07 (Whats remarkable is how
fast a culture can be torn apart, 3M lead
scientist In an innovation economy, 6 Sigma
is no longer a cure all/BW)
119
9
120
Strive for Excellence. Ignore success. Bill
Young, race car driver (courtesy Andrew Sullivan)
121
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
122
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
123
9a
124
The Eight Basics of Excellence Two Points of
View
125
One A bias for action a preference for doing
something - anything - rather than sending a
question through cycles and cycles of analyses
and committee reports. One A bias for action a
preference for doing something - anything -
rather than sending a question through cycles and
cycles of analyses and committee reports.
Understanding that experimentation (trial
error), not theory, is the bedrock of the
scientific method and enterprise Excellence
alike. Two Staying close to the customer
learning his preferences and catering to them.
Two Staying close to the customer learning
her preferences, catering to her needs, engaging
her in a partnership, creating experiences for
her that unleash the sustainability of loyalty
and the power of word-of-mouth recommendation.
126
Three Autonomy and entrepreneurship - breaking
the corporation into small companies and
encouraging them to think independently and
competitively. Three Autonomy and
entrepreneurship - breaking the corporation into
small companies, and the company into small
groupsand encouraging them all to think
imaginatively, to own their part of the
enterprise, and to be accountable for their
results. Four Productivity through people
creating in all employees the awareness that
their best efforts are essential and that they
will share in the rewards of the companys
success. Four Productivity through people
practicing servant leadership, realizing that
the leaders job in pursuit of Excellence is
first and last and foremost to develop
unsurpassable competitive advantage through
turned on, eternally growing, highly committed
talent in every position. To a large extent, This
Is Our Mission!
127
Five Hands-on, value driven insisting that
executives keep in touch with the firms
essential business. Five Hands-on, value driven
staying in close personal touch with the action
and actors on the ground, no matter the
distractions of other priorities, through daily
MBWA/Managing By Wandering Around, Preaching and
living the Gospel of Excellence. Six Stick
to the knitting remaining with the business the
company knows best. Six Stick to the knitting
learning, growing, branching out, but favoring
organic growth and not straying beyond the core
competencies that are the basis of our
sustainable Excellence.
128
Seven Simple form, lean staff few
administrative layers, few people at the upper
levels. Seven Simple form, lean staff few
administrative layers, few people at the upper
levels, employees each acting as Brand You,
constant pursuit of Excellence in Execution
through Simplicity and Clarity and
Integrity-Character. Eight Simultaneous
loose-tight properties fostering a climate
where there is dedication to the central values
of the company combined with tolerance for all
employees who accept those values. Eight
Simultaneous loose-tight properties fostering a
climate where there is dedication and buy in
and excitement about the central values and the
Ideal of Excellence throughout the enterprise,
combined with a passion for constant growth and
experimentation within or close to the bounds of
those shared values.
129
Doing to vs doing with Job done well vs
open-ended Quest for growth, full of
surprises Motivate vs Engage Tolerance
vs Expectation Director vs
Servant Unspecified vs Excellence Him vs
Her
130
9b
131
The last word There is no last word.
132
Flat as a Pancake (Or Worse)WalMart Dell
Intel Yahoo Home Depot Microsoft GE
133
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.SP
500 from 1957 to 1997 74 members of the Class of
57 were alive in 97 12 (2.4) of 500
outperformed the market from 1957 to
1997.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
134
C.E.O. to C.D.O.
135
Chief Destruction Officer
136
Built to LastvsBuilt to Change/Rock the World
137
9c
138
Why in the World did you go to Siberia?
139
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
140
10
141
Hard Is SoftSoft Is Hard
142
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships)
143
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
144
10A
145
Hard Is SoftSoft Is Hard
146
95
147
What I learned from my years as a hostage
negotiator is that we do not have to feel
powerlessand that bonding is the antidote to
the hostage situation. George Kohlrieser,
Hostage at the Table
148
The terms hard facts, and the soft stuff
used in business imply that data are somehow real
and strong while emotions are weak and less
important. George Kohlrieser, Hostage at the
Table
149
10b
150
Hard Is SoftSoft Is Hard
151
R.O.I.R.
152
Return On Investment In Relationships
153
C(I)gtC(E)
154
Q/Systems Salesperson I make the sale, and then
the company screws up the engineering or delivery
or one of a dozen things. Any suggestions?A/TP
Spend less time with your customers!
155
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 days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
156
10c
157
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
158
10d
159
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.

160
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

161
I screwed up.The virtuous circle of
blame
162
10e
163
Attending to the Last 98 The New
Management Science, or Hard Is Soft, Soft
Is Hard Tom Peters/12.03.2008
164
S f( ___ ) Success Is a Function of
165
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
166
S ƒ(EODD3MC) Number of end-of-the-day
difficult (youd rather avoid) 3-minute calls
that soothe raw feelings, mend fences, etc. S
ƒ(UFP, UFK, OAPS) Unsolicited favors performed,
UFs involving co-workers kids, overt acts
politeness-solicitude toward co-workers
spouses, parents, etc. S ƒ(TN) Number of
thank you notes sent S ƒ(C, PTS/OLC,
SAPA) of consultations, perception of being
taken serious (Responsible for one line of
code, small act of public appreciation S
ƒ(SU) Showing up (Woody Allen, Delawares
ridiculous influence on the U.S. Constitution)
167
S ƒ(1D) Seeking the assignment of writing first
drafts, minutes, etc. (1787) S ƒ(SEAs) Number
of solid relationships with Executive
Assistants S ƒ(UL/w-m) useful lunches per
week, month S ƒ(FG,FOC-BOF, CMO) Favors given,
favors owed collectively, balance of favors,
conscious management thereof S ƒ(CPRM,
TS) Conscious-planned Relationship management,
time spent thereon S ƒ(TN/d, FG/m, AA/d) Thank
you notes per Day, flowers given per Month, Acts
of Appreciation per Day S ƒ(PT100ATS,
ENMFTTT) Proactive, timely, 100 apologies for
tiny screw-ups, even if not my fault (it always
takes two to tango)
168
S ƒ(AMR, NBS-SG) Acceptance of mutual
responsibilities for all affairs, no
blame- shifting, scape-goating S
ƒ(APLSLFCT) Awareness, perception of little
snubsand lightening fast correction thereof S
ƒ(G) Grace S ƒ(GA) Grace toward adversary S
ƒ(GW) Grace toward the wounded in bureaucratic
firefights
169
S ƒ(PD) Purposeful decency S ƒ(TSPD,
TSP-L1) Time spent on promotion decisions,
especially for 1st level managers S ƒ(SS,
H-PD) soft stuff involved in Hiring, Promotion
decisions S ƒ(TWA, P, NP) Time wandering
around, purposeful, non-planned S ƒ(SBS) Slack
built into Schedule S ƒ(TSHR) Time spent
Hurdle Removing
170
S ƒ(TMTSS, PMTSS, DTDTSS) of time,
measured, on This Soft Stuff, purposeful
management of this Soft Stuff, daily to do
concerning this Soft Stuff S
ƒ(MBTSSMR) Purposeful management of this Soft
Stuff by people reporting to me S ƒ(EC,
MMO) Emotional connection, mgt maintenance
of S ƒ(IMDOP) Investment in Mastery of
detailed organization processes S ƒ(H-TS) Time
spent on Hiring
171
S f(TMTSS, PMTSS, DTDTSS) of time,
measured, on This Soft Stuff, purposeful
management of this Soft Stuff, daily to do
concerning this Soft Stuff
172
Q But wheres the beef? A This is
the beef!
173
11
174
Dont forgetthe it!
175
It suddenly occurred to me
176
It suddenly occurred to me that in the space of
two or three hours he never talked about
cars. Les Wexner            
177
Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
178
11A
179
Who buys it I Sunset for men!
180
Women are the majority market Fara
Warner/The Power of the Purse
181
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, April 15
182
The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
183
The Perfect Answer
Jill and Jack buy slacks in black
184
(No Transcript)
185
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
186
One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
187
11B
188
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
189
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?
190
11c
191
Who buys it II Sunrise for old folks!
192
2000-2010 Stats18-44 -155 21(55-64
47)
193
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
194
7/13
195
We are the Aussies Kiwis Americans
Canadians. We are the Western Europeans
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the most
(yes) ambitious, the most experimental
exploratory, the most different, the most
indulgent, the most difficult demanding, the
most service experience obsessed, the most
vigorous, (the least vigorous,) the most health
conscious, the most female, the most
profoundly important commercial market in the
history of the worldand we will be the Center of
your universe for the next twenty-five years.
We have arrived!
196
12
197
gurugate The Gurus fixation with the wrong
stuffNot they, but us.
198
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
199
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
200
Dick Kovacevich You dont get better by being
bigger. You get worse.
201
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
202
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
203
4 Japan2T china2t USA1 Germany
204
Reason!!!Mittelstand
205
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
206
Family BusinessesTwo-thirds of
total s of companiesOne-half of biggest
companiesgtOne-half GDPgtOne-half employment6
more profitable7 better ROAHigher income
growthHigher revenue growthSource John Davis,
HBS
207
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
208
Jims Group
209
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
210
Basement Systems Inc.
211
Basement Systems Inc.Larry JaneskyDry
Basement Science (115,000!)1990 0 2003
13M 2007 62,000,000
212
etc.PRSX/Paragon Railcar SalvageSalvaged
railcars into bridges, etc.
213
Small Giants Companies That Choose To Be Great
Instead Of Big by Bo Burlingham
214
Small Giants/Bo
Burlingham "First, I could see that, unlike most
entrepreneurs, their founders and leaders had
recognized the full range of choices they had
about the type of company they would create."
"Second, the leaders had overcome the enormous
pressures on successful companies to take paths
they had not chosen and did not necessarily want
to follow." "Third, each company had an
extraordinarily intimate relationship with the
local city, town, or county in which it did
business -- a relationship that went well beyond
the usual concept of giving back.'" "Fourth,
they cultivated exceptionally intimate
relationships with customers and suppliers, based
on personal contact, one-on-one interaction, and
mutual commitment to delivering on promises."
215
Small Giants/Bo
Burlingham "Fifth, the companies also had what
struck me as unusually intimate workplaces."
"Sixth, I was impressed by the variety of
corporate structures and modes of governance that
these companies had come up with." "Finally, I
noticed the passion that the leaders brought to
what the company did. They loved the subject
matter, whether it be music, safety lighting,
food, special effects, constant torque hinges,
beer, records storage, construction, dining, or
fashion."
216
Ichiro- nomics
217
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.)
218
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
219
Natural selection is death. ... Without huge
amounts of death, organisms do not change over
time. ... Death is the mother of structure. ...
It took four billion years of death ... to invent
the human mind ... The Cobra Event
220
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
221
Mission impossible?36B/98minus 675M/07
222
Market capitalization lost per day, 1998-2007
10,000,000/Day
223
Lived in same town all adult lifeFirst
generation thats 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, lessors of portable toilets, dry
cleaners, re-builders of diesel engines, paving
contractors Source The Millionaire Next
Door, Thomas Stanley William Danko
224
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
225
The Fabulous FiveSMEs!Priva
te companies! Dull industries!Productive
churn Built to Rock the World!Laudable
CEOs!
226
13
227
EXCELLENCE. BEDROCK.LEADERSHIP. THE 9Ps. THE
1M.
228
THE 9Ps.
229
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
230
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
231
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)
232
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
233
I am a Dispenser of Enthusiasm!Ben Zander
234
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
235
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
236
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
237
MBWA
238
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
239
You must be the change you wish to see in the
world.Gandhi
240
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
241
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
242
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
243
Leaders do people. Period. Anon.
244
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
245
Kevin Roberts Credo1.
Ready. Fire! Aim.2. If it aint 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!
246
Do one thing every day that scares you.
Eleanor Roosevelt
247
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
248
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
249
Leaderships 10th P
Promotion
250
2 per Year/ 20 per Decade Excellence Legacy
251
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.Promotion.
252
On NELSON other admirals more frightened of
losing than anxious to win
253
The 1m
254
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
255
14
256
And in conclusion
257
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
258
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
259
14A
260
And in conclusion
261
The Common CEO Lament If everything had been
good, then everything would have been
fine.Annual Reports Good, Our strategy
Bad, Unexpected
262
Black Swans This is how you earn your pay!
See The Black Swan The Impact of the
Highly Improbable, Nassim Nicholas TalebWSC
When the seas are calm all ships alike show
mastership in sailing.
263
Attributes of resilient peopleInner calm
(Buddhist?) High self-knowledge (comfortable in
own skin)Breadth of experiencedrove a cab,
worked construction, ran Alaska tours as
well as more traditional stuffSense of, Ah, my
moment (Giuliani)Lover of modestly controlled
chaos (bored amidst calmFDR)Reach out
effortlesslyReach out effortlessly to a wide
variety of peopleBizarrely energeticKnown for
integrity, in the sense of straight
shooterHires resilient people in key positions!
(All senior leadership roles?)Maintains sense of
humorEmpathy (I feel your pain)Cruelty
(Must make tough decisions instantaneously,
without looking back not confident, but
overwhelming sense of urgency to press
ahead)Decisive but not rigidStrong individual,
strong team playerUnderstands the chain of
commandand is flexibleComfortable being
challenged by thinkers, but a strong doer bias
overallA person of Hope (religious?)Not
necessarily ex-college QB, comeback rep (Why
All within the rules, with in the context of
that which has been practiced)Better Ocean
sailboat racer ER doc public health doc
astronaut combat experience as NCO hostage
negotiator survived in hopeless circumstances
through guile and grit seeks independent
dutyTests lights go out during interview,
followed by fire alarm, etc focus on in
reference checks
264
Attributes of resilient organizationsHire
resilient folks at all levels and in all
functionsexplicit about so doingPromote
resilienceDecentralization (organization
structure, physical, systems)RedundancyFinancial
paddingExcellent equipmentAbility to get by
without IS-IT!!Test in uncomfortable
situationsPromote an unusually high share of
mavericksDiversity per se
265
15/15
266
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)
267
If Not Excellence, What?
268
Part II
269
Excellence The Leadership50
270
bedrock.
271
1. Leaders serve.
272
Organizations exist to serve. Period. Leaders
live to serve. Period.
273
The Basic Mechanism.
274
2. Leadership Is a Mutual Discovery Process.
275
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
276
Organizing Genius / Warren Bennis and Patricia
Ward BiedermanGroups 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.
277
Leaders Mt Everest Testfree to do his or
her absolute best allow its members to
discover their greatness.
278
The Dream Manager Matthew KellyE.g. An
organization can only become the-best-version-of-i
tself to the extent that the people who drive
that organization are striving to become
better-versions-of-themselves. A companys
purpose is to become the-best-version-of-itself.
The question is What is an employees purpose?
Most would say, to help the company achieve its
purposebut they would be wrong. That is
certainly part of the employees role, but an
employees primary purpose is to become
the-best-version-of-himself or herself. When a
company forgets that it exists to serve
customers, it quickly goes out of business. Our
employees are our first customers, and our most
important customers.
279
Quests!
280
Cause (worthy of commitment)Space (room
for/encouragement
for initiative) Decency (respect,
humane)
281
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)
282
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
283
Cause Space Decency serviceexcellence
servant leadership
284
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.
285
Why in the World did you go to Siberia?
286
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
287
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
Excellence.
288
Organizations Exist to Serve. Period. Leaders
Live to Serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain (a
600SF retail space, a 4-person training
department, an urban school, a rural school, a
city, a nation), 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 (We are all
entrepreneursMuhammad Yunus) of diverse
individuals (100 creative Talentfrom checkout
to lab, from Apple to Wegmans to Janes
one-person accountancy in Invercargill NZ) is
unleashed in passionate pursuit of jointly
perceived soaring purpose ( win a Nobel peace
prize like Yunus, or at least do something worthy
of bragging about 25 years from now to your
grandkids) and personal and community and
client service Excellence.
289
Such Talent unbound pursue Quests (rapidly and
relentlessly experimenting and failing and trying
again) which surprise and surpass and redefine
the expectations of the individual and the
servant leader alike. The collective products
of these Quests offer the best chance of
achieving rapid organizational and individual
adaptation to fast-transforming environments, and
provide the nutrition for continuing (and
sometimes dramatic) re-imaginings which re-draw
the boundaries of industries and communities and
human achievement and the very conception of
what is possible.
290
In turn, such organizations, bent upon excellence
and re-imaginings based on maximizing human
creativity and achievement, will automatically
create cadres of imaginative and inspiring and
determined servant leaders who stick around to
take the organization to another level, and then
anotheror, equally or more important, leave
to spread the virus of Freedom-Creativity-Excellen
ce-Transforming Purpose by pathfinding new
streets, highways and alleyways which vitalize
and revitalize, through creative destruction,
Entrepreneurial Capitalism, which is the best
hope for maximizing collective human Freedom,
Happiness, Prosperity, Wellbeingand, one prays,
some measure of Peace on earth.
291
such organizations, bent upon excellence and
re-imaginings based on maximizing human
creativity and achievement vitalize and
revitalize, through creative destruction,
Entrepreneurial Capitalism, which is the best
hope for maximizing collective human Freedom,
Happiness, Prosperity, Wellbeingand, one prays,
some measure of Peace on earth.
292
Internal organizational excellence Deepest
Blue Ocean
293
A Blue ocean is by definition very profitable
and will be quickly copied. sustainable blue
(Internal organizational excellence) is far more
difficult to copy.
294
Internal organizational excellence Brand
inside
295
B(I) gt B(O)
296
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 gameit is the game. Lou Gerstner, Who
Says Elephants Cant Dance
297
The Leadership Types.
298
3. Great Leaders on White Horses Are Important
but Great Talent Developers (Type I Leadership)
are the Bedrock of Organizations that Perform
Over the Long Haul.
299
Whoops Jack didnt have a vision!
300
4. But There Are Times When the visionary
Type (Type II Leadership) Matters!
301
A leader is a dealer in hope. Napoleon
302
5. Find the Businesspeople! (Type III
Leadership)
303
I.P.M. (Inspired Profit Mechanic)
304
6. All Organizations Need the Golden Leadership
Triangle.
305
The Golden Leadership Triangle (1) Talent
Fanatic (2) Visionary (3) Inspired Profit
Mechanic.
306
7. Leadership Mantra 1 IT ALL DEPENDS!
307
Renaissance Men are a snare, a myth, a
delusion!
308
8. The Leader Is Rarely/Never the Best Performer.
309
The Leadership Dance.
310
9. Leaders SHOW UP!
311
MBWA
312
A body can pretend to care, but they cant
pretend to be there. Texas Bix Bender
313
Its always showtime. David DAlessandro,
Career Warfare
314
10. Leaders LOVE the MESS!
315
If things seem under control, youre just not
going fast enough. Mario Andretti
316
11. Leaders DO!
317
We have a strategic plan. Its called doing
things. Herb Kelleher
318
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
319
12. Leaders Re-do.
320
Phil Crosby is an idiot!
321
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
322
13. BUT Leaders Know When to Wait.
323
Tex Schramm The too hard box!
324
14. Leaders Are Optimists.
325
Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
326
Half-full Cups Ronald Reagan radiated an
almost transcendent happiness. L ou Cannon
327
15. Leaders FOCUS!
328
Dennis, you need a To-dont List !
329
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
330
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
331
16. Leaders Send V-E-R-Y Clear Signals About
Whats Important!
332
Really Important Stuff Rogers Rule of Three!
333
Robinson/American ExpressPuckett/HughesOlsen/Dig
italMozilo/CountrywideMilliken/MillikenWelch/GE
334
Danger S.I.O. (Strategic Initiative Overload)
Slide 335
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