Tom Peters

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Tom Peters Excellence2006 The
Relentless Pursuit of Dramatic
Difference!Huntington Beach/0328.2006
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Slides _at_ tompeters.comAlso see Long
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1. It Can Be Done!
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Tragic!
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Franchise Lost! TP How many of you 600
really crave a new Chevy?NYC/IIR/061205
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Beyond the Pension Problem Sedan, Less Than
20,000. Sedan, 20,000-30,000. Sedan,
30,000-40,000. Luxury Sedan. SUV, Less Than
30,000. SUV, More Than 30,000. Pickup Truck.
Minivan. Green Car. Fun To Drive.
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Stupid!
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This is not a mature category.
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This is an undistinguished category.
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But It Can Be Done!
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798
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415/SqFt/WalMart798/SqFt/Whole Foods
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7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
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?
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Doug Hall Dramatic difference
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2. Innovateor Die!!
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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/2004)
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Scale?
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo/Forbes/08.04 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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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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Different!Dramatic Difference (DH),
Remarkable Point of view (SG)
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The surplus society has a surplus of similar
companies, employing similar people, with
similar educational backgrounds, coming up with
similar ideas, producing similar things, with
similar prices and similar quality. Kjell
Nordström and Jonas Ridderstråle, Funky Business
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Value innovation is about making the
competition irrelevant by creating uncontested
market space. We argue that beating the
competition within the confines of the existing
industry is not the way to create profitable
growth. Chan Kim Renée Mauborgne (INSEAD),
from Blue Ocean Strategy (The Times/London)
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Cirque du Soleil!
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Every time we come to a comfort zone, we will
find a way out. No Cloning. Reinvent the
brand with each new show. A typical day at the
office for me begins by asking, What is
impossible that I am going to do today? Daniel
Lamarre, president, Cirque du Soleil
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This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Game Boy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to
follow the leader is this The leader is the
leader precisely because he did something
remarkable. And that remarkable thing is now
takenso its no longer remarkable when you
decide to do it. Seth Godin, Fast
Company/02.2003
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Easy?!
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FLASH! Innovation is easy!
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CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
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Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributed. William Gibson
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Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director
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Why Do I love
Freaks? (1) Because when Anything Interesting
happens it was a freak who did it. (Period.)
(2) Freaks are fun. (Freaks are also a pain.)
(Freaks are never boring.) (3) We need freaks.
Especially in freaky times. (Hint These are
freaky times, for you me the CIA the Army
Avon.) (4) A critical mass of
freaks-in-our-midst automatically make
us-who-are-not-so-freaky at least somewhat more
freaky. (Which is a Good Thing in freaky
timessee immediately above.) (5) Freaks are
the only (ONLY) ones who succeedas in, make it
into the history books. (6) Freaks keep us
from falling into ruts. (If we listen to them.)
(We seldom listen to them.) (Which is why most
organizations are in ruts. Make that chasms.)
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We become who we hang out with!
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Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
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BOLD!
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No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas
Negroponte
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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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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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Measurable!
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weird/ Profound/
Wow/Game- changer Scale?
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3. The New Look of Organization The Age of
Best-sourcing.
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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Not out sourcingNot off shoringNot near
shoringNot in sourcingbut Best Sourcing
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global innovation networks vs research in
large monolithic companies Source George
Colony/Forrester Research
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4. The New Look of OrganizationThe Power of
We.
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Theres a fundamental shift in power happening.
Everywhere, people are getting together and,
using the Internet, disrupting whatever
activities theyre involved in. Pierre
Omidyar, founder, eBay
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The architecture of participationTim
OReilly/Tech-book publisher
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5. A World of Scintillating Experiences.
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Up, Up, Up, Up the Value-added Ladder.
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Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
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The Value-added Ladder/Memorable
ConnectionSpellbinding Experiences
ServicesGoods Raw Materials
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6. Embracing the Dream Business.
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DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
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The Value-added Ladder/EmotionDreams Come
TrueSpellbinding ExperiencesServicesGoods Raw
Materials
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Furniture vs. DreamsWe do not sell furniture
at Domain. We sell dreams. This is accomplished
by addressing the half-formed needs in our
customers heads. By uncovering these needs, we,
in essence, fill in the blanks. We convert
needs into dreams. Sales are the inevitable
result. Judy George, Domain Home Fashions
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7. Design Rules The Soul of New Value.
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We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation. Steve Jobs
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8. It all adds up to (THE BRAND.) (THE
STORY.)(THE DREAM.)The Love.
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Brands have run out of juice. Theyre dead.
Kevin Roberts/Saatchi Saatchi
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Kevin Roberts Lovemarks!
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Brand . LovemarkRecognized by
consumers . Loved by PeopleGeneric
PersonalPresents a narrative
.. Creates a Love storyThe promise of
quality A touch of SensualitySymbolic
.. IconicDefined
.. InfusedStatement
.. StoryDefined attributes
... Wrapped in MysteryValues
. SpiritProfessional
... Passionately CreativeAdvertising
agency .. Ideas companySource Kevin
Roberts, Lovemarks
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Up, Up, Up, Up the Value-added Ladder.
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Lovemark Dreams Come True Awesome
ExperiencesServicesGoodsRaw Materials
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9. New C-Levels
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CXOChief eXperience Officer
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CFOChief Festivals Officer
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CCOChief Conversations Officer
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CPIChief Portal Impresario
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CSOChief Seduction Officer
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CDMChief Dream Merchant
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CL OChief Lovemark Officer
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C STOChief Storytelling Officer
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CWOChief WOW Officer
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10. The New Individual Welcome to a Brand
You World
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There is no job that is Americas God-given
right anymore. Carly Fiorina/ HP/ 01.07.2004
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If there is nothing very special about your
work, no matter how hard you apply yourself you
wont get noticed, and that increasingly means
you wont get paid much either. Michael
Goldhaber, Wired
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Distinct or Extinct
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11. Education Pathetic from the Start!
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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!
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12. Leading The Passion Imperative.
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Create a Cause!
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People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
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Make It a Grand Adventure!
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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.
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Yes!!!!!!!!!!!!!!!!!free to do his or her
absolute best allow its members to discover
their greatness.
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The role of the Director is to create a space
where the actor or actress can become more than
theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance
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Put Women in Charge!
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
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Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversity. Judy B. Rosener, Americas
Competitive Secret Women Managers
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Keep It Simple!
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Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
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Avoid Moderation!
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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!
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No Less Than Excellence. Ever.
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Gaspworthy!
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13. Prejudices Biases Your World
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1. Issue 1 Healthy American kid, circa2006
Rare species. (Health-Obesity-Exercise.) 2.
School-is-cool. (School is Coolboys!) 3.
Social responsibility! (Mon-u-men-tal.)
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4. What are psychographics? (Member, APA,
since 1977.) (Women get women. Different
varieties of women get different varieties
of women. Kids get kids. Different flavors
of kids get different flavors of kids. Only
parents get parents.) 5. All great marketing
campaigns come from in-tu-it-ion. (Apple,
Nike, BMW, Nokia) (Great ad No Clio)
(Aint many great ads-marketing campaigns.)
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6. Radical rules. Far out Good. Far-ther
out Better. Focus on creativity. CD/
2016 in 2006. Dont dumb down.) (Kid stuff
for Boomers?)
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7. Innovation X10! (Separate! Isolate!
Double-dramatic decentralization Kids.
Decentralization within kids so you poison
cash cowsmore frequent than in adult world.
Speed! Small is beautiful here more than
ever/other. Like big pharma, alliances.)
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8. Hire kids. (Hire for kid- like attitude.
Eat the dog food. Hire people who like
kids. Diversity, way beyond lip service.
Howard/25/ More important here.)
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9. Internet-centric/ NewTech-centric.
(Obvious.)
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Everything you do
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Every damn thing you do School is cool. Obesity
gt Terrorism.