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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 PetersEXCELLENCE. PNC Financial
Services Group22 January 2008/Pittsburgh
4
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
5
It suddenly occurred to me
6
It suddenly occurred to me that in the space of
two or three hours he never talked about
cars. Les Wexner            
7
Headline, page 1, Boston Globe, 20 January
2008 Broker's Clients Detail Web of Dashed
Dreams When Marcia Neilson couldn't qualify
for a home loan in early 2006 because of poor
credit, her mortgage broker, Nicole Lyder, had an
unusual solution Add Neilson's daughter to the
loan application. Neilson's 21-year-old
daughter had just lost her job, but Lyder
remained undeterred. That wasn't a problem,
Neilson recalled her broker saying. Neilson's
real estate agent said Lyder enlisted him to
drive Neilson and her daughter to Brockton City
Hall. The pair filled out a business certificate
that claimed they owned a hair salon in
Brockton. The Neilsons qualified for a mortgage
and bought a Dorchester house in June 2006 for
565,000. Last fall, Marcia Neilson learned from
state investigators looking into Lyder's business
practices that her loan application was padded in
other ways a statement for a 25,000 bank
account in Neilson's name that she had no
knowledge of. Fake documents, a phantom
borrower, and other irregularities were common
features of five subprime mortgages brokered by
Lyder between November 2005 and June 2006 that
were examined by the Boston Globe. Lyder's
clients ranged from the barely employed to
struggling working-class couples one had just
left a homeless shelter and two others gave up
government-subsidized housing to buy homes. They
said Lyder arranged loans that they later
realized had monthly payments that far exceeded
their means. All five loans are now in
foreclosure.
8
MBWA (1982-2008) In touch, grounded in
reality
9
Wall Street Journal, 22 January 2008 "Our fourth
quarter results were severely impacted by ongoing
dislocations in capital markets and the slowing
economy," said Kenneth D. Lewis, Bank of
America chairman and chief executive officer.
"However, we are cautiously optimistic about 2008
." TP translation We made total asses of
ourselves, allowing ourselves to be conned by a
bunch of out-of-touch Nobel-winning economists
with their portfolio-risk smoothing models.
Then, as inevitably happens amidst the madness of
crowds of executives bent upon keeping up with
the Joneses, we were flattened by that silly old
saw, That which goes up eventually comes down.
Wow, talk about What they didnt teach us at the
Harvard Business School! Truth is, we all ought
to be put in stocks where people can throw rotten
tomatoes at ustheyll have lots of time to do
that given expected unemployment s that we have
wittingly facilitated. Meanwhile, I wish the very
best to Angelo Mozilo, Countrywide CEO Subprime
Principal Perp, as he ponders how to spend the
112,000,000 Im helping him pocket, obtained by
shafting hundreds of thousands innocents using
sales incentive schemes which make the numbers
racketeers on the streets look squeaky clean by
comparison. As to my cautiously optimistic for
2008, what the hell else do you expect me to
say? If I told the truth, youd string me up even
higher.
10
We Have Thank you, Starbucks!
11
1982/Default Latin America 200 years Total
historical earnings The Black Swan The Impact
of the Highly Improbable, Nassim Nicholas Taleb

12
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
13
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
14
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
15
EXCELLENCE. 2006.
16
Why in the World did you go to Siberia?
17
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
18
EXCELLENCE. 1982.
19
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
20
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
21
Hard Is SoftSoft Is Hard
22
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
23
R.O.I.R.
24
Return On Investment In Relationships
25
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
26
Fred Reichhelds The Ultimate Question
Customer satisfaction is best measured by one
simple question, how likely are you to recommend
______ to a friend? Net Promoter Score
27
The Jim Jeffords oversight!
28
ExIn 1982-2002/Forbes.comDJIA 10,000 yields
85,000 EI 10,000 yields 140,050
Forbes/Excellence Index /Basket of 32
publicly traded stocks
29
Excellence 2007. Organizations exist to serve.
Period. Leaders live to serve. Period. Peter
Drucker Tribute/September 2007
30
I have always believed that the purpose of the
corporation is to be a blessing to the
employees. Boyd Clarke
31
What would happen if we looked at a customer and
saw the face of God in them? To most people it
sounds like a lofty idea. But if you see the face
of God in a flower, why wouldnt you see it in
the face of a customer? If we treated customers
and honored the God within themif we loved
themwe would not need a quality program.
Lance Secretan, founder of Manpower, Inc., and
most recently author of One The Art and Practice
of Conscious Leadership
32
Organizations exist to serve. Period. Leaders
live to serve. Period.
33
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.
34
EXCELLENCE.the rules.
35
Cause (worthy of commitment)Space (room
for/encouragement
for initiative) Decency (respect,
humane)
36
The Managers Book of Decencies How Small
/gestures Build Great Companies. Steve
Harrison, Adecco
37
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)
38
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
39
Leaders SERVE people. Period. Anon.
40
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
41
TP How to piss away 500,000 in one easy
lesson!!
42
Excellence.Untrammeled imagination.
43
Single greatest act of pure imagination
44
24
45
dubai
46
Basement Systems Inc.Larry JaneskyDry
Basement Science (115,000!)1993 0 2003
12M 2006 50,000,000
47
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
48
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
49
Reason!!!Mittelstand
50
one idea.1966-2008.
51
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.
52
We have a strategic plan. Its called doing
things. Herb Kelleher
53
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
54
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
55
You miss 100 of the shots you never take.
Wayne Gretzky
56
We still dont get it! (1 of 2)
57
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
58
Women are the majority market Fara
Warner/The Power of the Purse
59
COROLLARY. EXCELLENCE. WOMEN.RULE.
60
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
61
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
value-added imperatives. Women are better
salespersons than men. Women buy almost
everythingcommercial as well as consumer
goods. So what exactly is the point of men?
62
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
63
We still dont get it! (2 of 2)
64
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
65
7/13
66
2000-2010 Stats18-44 -155 21(55-64
47)
67
We are the Aussies Kiwis yanks 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!
68
44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
69
THE 9Ps.
70
PURPOSE.PASSION.Potential.Personal.Priorities.
PERSISTENCE.PEOPLE. Potent.Positive.
71
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
72
I am a Dispenser of Enthusiasm!Ben Zander
73
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
74
You must be the change you wish to see in the
world.Gandhi
75
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
76
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
77
Leaders do people. Period. Anon.
78
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
79
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)
80
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