Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeEpson/La Jolla/05.12.2004
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Slides at tompeters.com
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Uncertainty is the only thing to be sure of.
Anthony Muh,head of investment in Asia,
Citigroup Asset Management If you dont like
change, youre going to like irrelevance even
less. General Eric Shinseki, Chief of Staff,
U. S. Army
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Montgomery Ward Kmart Sears Macys DEC
Wang Compaq Chase Manhattan American
Motors Chrysler U.S. Steel Bethlehem Steel
ATT Soviet Union
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WalMart Dell Microsoft U.S.A.
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All Bets Are Off.
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Jobs TechnologyGlobalization War, Warfighting
Security
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14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
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Behind Surging Productivity The Service Sector
Delivers. Firms Once Thought Immune to Boosting
Worker Output Are Now Big Part of the Trend
Headline/WSJ/11.03
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One Singaporean worker costs as much
as 3 in Malaysia 8
in Thailand 13 in China
18 in India. Source The Straits
Times/08.18.03
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lt1000A.D. paradigm shift 1000s of years1000
100 years for paradigm shift1800s gt prior 900
years1900s 1st 20 years gt 1800s2000 10 years
for paradigm shift 21st century 1000X tech
change than 20th century (the Singularity, a
merger between humans and computers that is so
rapid and profound it represents a rupture in the
fabric of human history)Ray Kurzweil
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UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes, upon naming UPS Company of the
Year in Y2000
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The world has arrived at a rare strategic
inflection point where nearly half its
populationliving in China, India and Russiahave
been integrated into the global market economy,
many of them highly educated workers, who can do
just about any job in the world. Were talking
about three billion people. Craig
Barrett/Intel/01.08.2004
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World economic output U.S.A., 21 EU, 16
China, 13 (2X since1991)Source New York
Times/12.14.2003
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Indian GDP/1990-2002 Ag, 34 to 21 services,
40 to 56Source The Economist/02.04
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Level 5 (top) ranking/Carnegie Mellon Software
Engineering Institute 35 of 70 companies in
world are from IndiaSource Wired/02.04
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This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
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All Bets Are Off!
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We are in a brawl with no rules.Paul Allaire
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S.A.V.
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Successful Businesses Dozen Truths TPs
30-Year Perspective1. Insanely Great Quirky
Talent.2. Disrespect for Tradition.3. Totally
Passionate (to the Point of Irrationality) Belief
in What We Are Here to Do.4. Utter
Disbelief at the BS that Marks Normal Industry
Behavior.5. A Maniacal Bias for Execution and
Utter Contempt for Those Who Dont Get
It.6. Speed Demons.7. Up or Out. (Meritocracy
Is Thy Name. Sycophancy Is Thy Scourge.)8.
Passionate Hatred of Bureaucracy.9. Willingness
to Lead the Customer and Take the Heat
Associated Therewith. (Mantra Satan Invented
Focus Groups to Derail True Believers.)10.
Reward Excellent Failures. Punish Mediocre
Successes. 11. Courage to Stand Alone on Ones
Record of Accomplishment Against All the
Forces of Conventional Wisdom.12. A Crystal
Clear Understanding of Brand Power.
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2. The Destruction Imperative.
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 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
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Good management was the most powerful reason
leading firms failed to stay atop their
industries. Precisely because these firms
listened to their customers, invested
aggressively in technologies that would provide
their customers more and better products of the
sort they wanted, and because they carefully
studied market trends and systematically
allocated investment capital to innovations that
promised the best returns, they lost their
positions of leadership.Clayton Christensen,
The Innovators Dilemma
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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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3. IS/ IT/ WebOn the Bus or Off the Bus.
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100 square feet
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Invisible Supplier Has Penneys Shirts All
Buttoned Up From Hong Kong, It Tracks Sales,
Restocks Shelves, Ships Right to the Store.
Headline, Wall Street Journal (09.11.03)
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Our entire facility is digital. No paper, no
film, no medical records. Nothing. And its all
integratedfrom the lab to X-ray to records to
physician order entry. Patients dont have to
wait for anything. The information from the
physicians office is in registration and vice
versa. The referring physician is immediately
sent an email telling him his patient has shown
up. Its wireless in-house. We have 800
notebook computers that are wireless. Physicians
can walk around with a computer thats
pre-programmed. If the physician wants, well go
out and wire their house so they can sit on the
couch and connect to the network. They can review
a chart from 100 miles away. David Veillette,
CEO, Indiana Heart Hospital (HealthLeaders/12.2002
)
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Dawn Meyerreicks, CTO of the Defense Information
Systems Agency, made one of the most fateful
military calls of the 21st century. After 9/11
her office quickly leased all the available
transponders covering Central Asia. The
implications should change everything about U.S.
military thinking in the years ahead. The U.S.
Air Force had kicked off its fight against the
Taliban with an ineffective bombing campaign, and
Washington was anguishing over whether to send in
a few Army divisions. Donald Rumsfeld told Gen.
Tommy Franks to give the initiative to 250
Special Forces already on the ground. They used
satellite phones, Predator surveillance drones,
and GPS- and laser-based targeting systems to
make the air strikes brutally effective.In
effect, they Napsterized the battlefield by
cutting out the middlemen (much of the militarys
command and control) and working directly with
the real players. The data came in so fast that
HQ revised operating procedures to allow
intelligence analysts and attack planners to work
directly together. Their favorite tool,
incidentally, was instant messaging over a secure
network.Ned Desmond/Broadbands New Killer
App/Business 2.0/ OCT2002
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The mechanical speed of combat vehicles has not
increased since Rommels day, so the difference
is all in the operational speed, faster
communications and faster decisions. Edward
Luttwak, on the unprecedented pace of the move
toward Baghdad
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Ebusiness is about rebuilding the organization
from the ground up. Most companies today are not
built to exploit the Internet. Their business
processes, their approvals, their hierarchies,
the number of people they employ all of that is
wrong for running an ebusiness.Ray Lane,
Kleiner Perkins
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Case CRM
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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CRM has, almost universally, failed to live up
to expectations. Butler Group (UK)
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No! No! No! FT The aim of CRM is to make
customers feel as they did in the pre-electronic
age when service was more personal.
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CGEY (Paul Cole) Pleasant Transaction vs.
Systemic Opportunity. Better job of what we do
today vs. Re-think overall enterprise strategy.
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IS/IT is strategy!
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5 F500 have CIO on Board While some of the
worlds most admired companiesTesco,
WalMartare transforming the business landscape
by including technology experts on their boards,
the vast majority are missing out on ways to
boost productivity, competitiveness and
shareholder value.Source Burson-Marsteller
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4. The White Collar Revolution.
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Steel 75,000,000 tons in 82 to 102,000,000 tons
in 02. 289,000 steelworkers in 82 to 74,000
steelworkers in 02. Source Fortune/11.24.03
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E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
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Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
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Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Wooldridge
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Dont own nothin if you can help it. If you
can, rent your shoes.F.G.
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5. The Heart of the Value Added Revolution The
Solutions Imperative.
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Base Case The Sameness Trap
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
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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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Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
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To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renee Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/08.11.03
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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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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
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These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
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Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
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Customer Satisfaction to Customer
SuccessWere getting better at Six Sigma
every day. But we really need to think about the
customers profitability. Are customers bottom
lines really benefiting from what we provide
them?Bob Nardelli, GE Power Systems
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Keep In Mind Customer Satisfaction versus
Customer Success
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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/06.01 (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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And
the Winners Are Televisions 12Cable TV
service 5Toys -10Child care 5Photo
equipment -7Photographers fees 3Sports
Equipment -2Admission to sporting event
3New car -2Car repair 3Dishes
flatware -1Eating out 2Gardening supplies
-0.1Gardening services 2Source
WSJ/05.16.03
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6. A World of Scintillating Experiences.
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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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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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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WHAT CAN BROWN DO FOR YOU?
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The Experience LadderExperiences
ServicesGoods Raw Materials
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Duet Whirlpool washing machine to fabric
care system white goods a sea of
undifferentiated boxes 400 to 1,300 the
Ferrari of washing machines consumer They
are our little mechanical buddies. They have
personality. When they are running efficiently,
our lives are running efficiently. They are part
of my family. machine as aesthetic showpiece
laundry room to family studio / designer
laundry room (complements Sub-Zero refrigerator
and home-theater center)Source New York Times
Magazine/01.11.2004
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1997-2001gt600 10 to 18400-600 49 to
32lt400 41 to 50Source Trading Up,
Michael Silverstein Neil Fiske
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7. Trends Worth Trillion I Women Roar.
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 (66
home computers) Cars 68 (90)All consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
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2/3rds working women/50 working wives gt
5080 checks61 bills53 stock (mutual fund
boom)43 gt 500K95 financial decisions/ 29
single handed
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply
wants the transaction to take place. Shes
interested in creating a relationship. Every
place women go, they make connections.
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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The Connection Proclivity in women starts
early. When asked, How was school today? a girl
usually tells her mother every detail of what
happened, while a boy might grunt, Fine.
EVEolution
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What If What if ExxonMobil or Shell dipped
into their credit card database to help commuting
women interview and make a choice of car pool
partners?What if American Express made a
concerted effort to connect up female
empty-nesters through on-line and off-line
programs, geared to help women re-enter the
workforce with todays skills?EVEolution
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Women dont buy brands. They join
them.EVEolution
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2.6 vs. 21
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1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
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8. Trends Worth Trillion II Boomer Bonanza/
Godzilla Geezer.
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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The New Consumer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
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507T wealth (70)/2T annual income50 all
discretionary spending79 own homes/40M credit
card users41 new cars/48 luxury cars610B
healthcare spending/74 prescription drugs5
of advertising targetsKen Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
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Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly
understood.Peter Francese, founding publisher,
American Demographics
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No Target MarketingYes Target Innovation
Target Delivery Systems
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9. Boss Job One The Talent Obsession.
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Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
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Brand Talent.
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Model 25/8/53 Sports Franchise GM
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The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others.Warren Bennis Patricia Ward
Biederman, Organizing Genius
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From 1, 2 or youre out JW to Best
Talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent
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Message Some people are better than other
people. Some people are a helluva lot better than
other people.
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.Ed
Michaels, War for Talent
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
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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.Source Judy B. Rosener, Americas
Competitive Secret Women Managers
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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DD21M
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10. Leading in Totally Screwed-Up Times The
Passion Imperative
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Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
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I dont know.
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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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Quests!
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The Kotler Doctrine1965-1980
R.A.F.(Ready.Aim.Fire.)1980-1995
R.F.A.(Ready.Fire!Aim.)1995-????
F.F.F.(Fire!Fire!Fire!)
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We have a strategic plan. Its called doing
things. Herb Kelleher
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If Microsoft is good at anything, its avoiding
the trap of worrying about criticism. Microsoft
fails constantly. Theyre eviscerated in public
for lousy products. Yet they persist, through
version after version, until they get something
good enough. Then they leverage the power theyve
gained in other markets to enforce their
standard.Seth Godin, Zooming
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
111
Im not comfortable unless Im
uncomfortable.Jay Chiat
112
If things seem under control, youre just not
going fast enough.Mario Andretti
113
Thank You!