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Title: Tom%20Peters


1
Tom PetersEXCELLENCE. ALWAYS.DealerTrack
Las Vegas/08 November 2006
2
Slides at tompeters.comalso see Long
version
3
HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.
HA. HA. HA.
4
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
5
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.Source Dick Foster Sarah Kaplan,
Creative Destruction Why Companies That Are
Built to Last Underperform the Market
6
Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
7
Flat as a Pancake (Or Worse)WalMart Dell
Intel Home Depot Microsoft GE
8
EXCELLENCE. ALL . YOU. NEED. TO. KNOW.
9
25
10
20-minute rule Craig Johnson/30 yrs
11
EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
12
7X. 730A-800P. F12A.93-03/10 yr annual
return CB 29 WM 17 HD 16. Mkt Cap 48
p.a.
13
1/100 Best Companies to Work for/2005
14
A store is a store is a store is a store
15
EXCELLENCE. ALL. YOU. NEED. TO. KNOW.
ANYWHERE. ANY MARKET. ANY TIME.
16
Jims Group
17
EXCELLENCE. SIBERIA.
18
Why in the world did you go to Siberia?
19
Raging Success P-SQUARED. C. E-CUBED.
20
People.Product.Customers.Execution.Enthusiasm.
Excellence.
21
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
22
EXCELLENCE. INNOVATE. OR. DIE.
23
We are in a brawl with no rules. Paul Allaire
24
S.A.V.
25
EXCELLENCE. INNOVATE. TACTICS.
26
try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. try it. Try it.
Try it. try it. Try it. Try it. Try it. Try it.
Try it.
27
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
28
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
29
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
30
tolerate encourage? failure
31
Sams Secret 1!
32
Speed.Tempo.is-it.
33
WalMart (!) Katrina
34
the FedEx Economy headline/New York
Times/10.08.05
35
Any3 Anything/ Anywhere/ Anytime
36
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes
37
Grunge Removal 101Ellie Mae
38
email from JUDITH SINNARD (smarteplans.com)
Judith has a little idea. She provides
eServices to the Houston real estate community.
She measures rooms at a MLS home, provides at a
Click dimensions thereof as well as photos of
each room. Little deal? Big deal? The average
days-on-market for one of her homes was 33 last
year, compared to the average of 82 days.
Little idea. Big industry! Big difference!
39
Power Tools For Power Strategies
40
Sysco!
41
Go for the Bold
Bold/Aggressive/ Bold/GameChanger
Bold/Creative Destruction Bold/Web Fanaticism
42
Productivity!McKesson 2003-2004 Revenue 7B
Employees 500Source USA Today
43
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
44
re-imagine the value added equation
45
55B
46
The NEW Value-added LadderGamechanging
Solutions/ Implemented Customer
successServices/TransactionsManufactured
Goods/Things Extracted Raw Materials
47
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
48
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
49
The NEW Value-added Ladderspellbinding
Experiences Gamechanging SolutionsServicesGoods
Raw Materials
50
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
51
The NEW Value-added Ladderdreams come
truespellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
52
Kevin Roberts Lovemarks!
53
(No Transcript)
54
Tattoo Brand What of users would tattoo the
brand name on their body?
55
Top 10 Tattoo BrandsHarley . 18.9Disney
.... 14.8Coke . 7.7Google .... 6.6Pepsi ....
6.1Rolex . 5.6Nike . 4.6Adidas .
3.1Absolut . 2.6Nintendo . 1.5BRANDsense
Build Powerful Brands through Touch, Taste,
Smell, Sight, and Sound, Martin Lindstrom
56
The NEW Value-added Ladder/4 of 7
Lovemark Dreams Come True Spellbinding
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
57
Cirque du Soleil!
58
totally re-imagine the business around the
two staggering new opportunities
59
women
60
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
61
Womens TrifectaBuy/all Wealth/all Lead/
better Eclipse of males /whoops
(Retire-old/Poorly educated-young)
62
Women are the majority market Fara
Warner/The Power of the Purse
63
She knows more about the Volvo than the
salesman who greets her at the door. But how is
she treated? As if she has a low IQ , is
slightly hard of hearing , and really has no
right to be buying a luxury car and if she
brought a male friend with her, odds are 101
that the clueless salesperson spent most of his
time speaking to him . Selling to Men,
Selling to Women, Jeffery Tobias Halter
64
Women dont buy brands. They join
them.EVEolution
65
Selling to men The TRANSACTION ModelSelling to
Women The RELATIONAL ModelSource Selling
to Men, Selling to Women, Jeffery Tobias Halter
66
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.
67
10. Womens Market Opportunity No. 1.
68
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, 15 April 2006
69
Cases! Cases! Cases!McDonalds
(mom-centered to majority consumer not via
kids)Home Depot (Do it everything!
Herself)PG (more than house cleaner)
DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of
the Purse
70
McDonalds shifted its strategy toward women
from one of minority consumers who served as a
conduit to the important childrens market to one
in which women are the companys majority
consumers and the main driver behind menu and
promotion innovation. Fara Warner, The Power
of the Purse, From Minority to Majority
McDonalds Discovers the Woman Inside the Mom
71
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline,
Economist, April 15, 2006, Leader, page 14
72
Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
73
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
74
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?
75
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special
Report/BusinessWeek
76
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
77
New (4 of 7) Value-added Ladder Plays to
Womens Inherent Strengths! Lovemark /F Dreams
Come True /F Spellbinding Experiences
/FGamechanging Solutions /FServices/F (or
M)Goods/MRaw Materials/M
78
boomers-geezers
79
2000-2010 Stats18-44 -155 21(55-64
47)
80
One particularly puzzling category of
youth-obsession is the highly coveted target of
men 18-34, and its always referred to as highly
coveted category. Marketers have been distracted
by men age 18-34 because they are getting harder
to reach. So what? Who wants to reach them?
Beyond fast food and beer, they dont buy much of
anything. The theory is that if you get them
while theyre young, theyre yours for life.
What nonsense! Marti Barletta, PrimeTime Women
81
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
82
Average of cars purchased per household,
lifetime 13Average of cars bought per
household after the head of household reaches
age 50 7Source Marti Barletta, PrimeTime Women
83
3Q/2006.312M. (18.)1.6B. (14.)Source
BusinessWeek, 1106.06, Harley Just Keeps on
Cruisin Aging customers? Sure. Nostalgia brand?
Definitely. So why is the stock at a record high?
84
Fifty-four years of age has been the highest
cutoff point for any marketing initiative Ive
ever been involved in. Which is pretty weird when
you consider age 50 is right about when people
who have worked all their lives start to have
some money to spend. Marti Barletta, PrimeTime
Women
85
Boomers-Geezers-Womens TrifectaBuy/all
Wealth/all time left/ lots
Eclipse of males/retire-die
86
EXCELLENCE. BEDROCK.TALENT.
87
Hire very good people!
88
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
89
PUT HR AT THE HEAD OF THE HEAD TABLE.
90
DD21M
91
LIVE FOR TALENT!
92
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
93
Brand Talent.
94
Urgent/Angry Message to Convenience Store Execs
Less on Renovation. More on People!
95
EXCELLENCE. BEDROCK.LEADERSHIP.
96
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)
97
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
98
25
99
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
100
Leaders do people. Period. Anon.
101
PURPOSE.PASSION.Presence.PERSISTENCE.PEOPLE.
102
EXCELLE ALWAYS.
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