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Tom Peters

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Title: Tom Peters


1
Tom PetersEXCELLENCE. ALWAYS.XAlways/A
ustin/07 September 2006
2
Slides at tompeters.comalso LONG
3
Thats a Big Number .
4
THREE BILLION NEW CAPITALISTS Clyde Prestowitz
5
There is no job that is Americas God-given
right anymore. Carly Fiorina/HP/January2004
6
Deutsche Bank Moves Half of Its Back-office Jobs
to India/ headline/FT/0327 (500 of 900 Research)
7
EXCELLENCE.MANDATE.
8
If you dont like change, youre going to
like irrelevance even less. General Eric
Shinseki, Chief of Staff. U. S. Army
9
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
10
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
11
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
12
(Practical) Implication?Go for it! (Why
notalternative is slow death, at best)
13
C.E.O. to C.D.O.
14
The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles. Newsweek/Paul Saffo
15
TP1 Netscape!Where would you rather have
worked for those 5 years, Netscape or
IBM-HP-Microsoft-Oracle? (Where, 25 years from
now, would you rather to be able to tell
someonee.g., grandchildthat you worked?)
16
Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown. Kevin Kelly,
New Rules for the New Economy
17
New Economy?!Sergey Larry gt Harvard/370
18
EXCELLENCE. STARTERS.HORRORS.
19
Franchise Lost! TP How many of you 600
really crave a new Chevy?
20
Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
21
Sluggish Obese Unimaginative More Sluggish
More Obese More Unimaginative Even More
Sluggish Even More Obese Even More
Unimaginative NISSAN RENAULT GM
Innovative Challenger for Toyota????
22
Oh, Great Ford Airplane guy.GM CFO.
23
Small cars HQ LA. Big cars HQ Dallas.
Corporate HQ Atlanta. CEO Roger Enrico or Lou
Gerstner or Meg Whitman. COO Bob Nardelli.
Chairman George Steinbrenner or Jack Welch or
Ross Perot. Vice-chairman CFO Warren
Buffett. Chief Marketing Officer Brenda
Barnes. Chief Branding Officer Phil Knight
(or Howard Schultz). Chief Innovation Officer
Steve Jobs or Jeff Immelt. Chief/Supply Chain
Raid WalMart or CostCo or Dell. Chief/Dealer
Relations Carl Sewell.
24
EXCELLENCE. STARTERS.BASICS.
25
Did one of em ever turn to the other and say
Wow, I wonder what unimaginable new tools,
otherwise not possible, will be brought forth for
my daughter Alice, age 17, because of this deal?
26
People.Product.Clients.Execution.Enthusiasm.E
xcellence.
27
People.Product.Clients.Execution.Enthusiasm.E
xcellence.Relentless.
28
People.Product.Clients.Execution.Enthusiasm.E
xcellence.Relentless.Senility.
29
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out. Dee Hock
30
EXCELLENCE. THE WORD.
31
SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
32
EXCELLENCE. GAMECHANGER.
33
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
34
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
35
EXCELLENCE. ALWAYS.
36
Why in the world did you go to Siberia?
37
Business (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum concerted human
potential in the wholehearted service of
others.Excellence. Always.Employees,
Customers, Suppliers, Communities, Owners,
Temporary partners
38
EXCELLENCE. VALUE ADDED.UP THE LADDER.
39
EXCELLENCE. SOLVE IT.
40
55B
41
Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW
42
EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF)
43
Disintermediation is overrated. Those who
fear disintermediation should in fact be afraid
of irrelevancedisintermediation is just another
way of saying that youve become irrelevant to
your customers. John Battelle/Point/Advertisin
g Age/07.05
44
Department Head to Managing Partner, IS
HR, RD, etc. Inc.
45
Up, Up, Up, Up the Value-added Ladder.
46
The Value-added Ladder/Opportunity-seeking
Gamechanging SolutionsServicesGoods Raw
Materials
47
EXCELLENCE. EXPERIENCE IT.
48
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
49
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
50
The Value-added Ladder/Memorable
ConnectionSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
51
798
52
415/SqFt/WalMart798/SqFt/Whole Foods
53
SummaryWallopWalMart16Or Why its so
absurdly easy to beat a GIANT Company
54
The SmallMart Revolution How Local Businesses
Are Beating Local Competition Michael Shuman
55
EXCELLENCE. DREAM IT.
56
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
57
The Value-added Ladder/EmotionDreams Come
TrueSpellbinding Experiences Gamechanging
SolutionsServicesGoods Raw Materials
58
Big Blue
59
EXCELLENCE. LOVE IT.
60
Kevin Roberts Lovemarks!
61
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
62
Lovemark Dreams Come True Spellbinding
ExperiencesGamechanging SolutionsServicesGoods
Raw Materials
63
EXCELLENCE.NEW VALUE EQUATION. NEW
C-levels.
64
CXOChief eXperience Officer
65
CDMChief Dream Merchant
66
CL OChief Lovemark Officer
67
CSTOChief Storytelling Officer
68
CDOChief Design Officer
69
CfaOChief freaks acquisition Officer
70
CQOChief quest-meister
71
CWOChief WOW Officer
72
CROChief Revenue Officer
73
EXCELLENCE. EVERYWHERE.
74
SpainPortugalItalyIrelandSingapore
TaiwanThailandMalaysiaSingapore
PhilippinesUAEOmanChileRomaniaNew
ZealandAustralia
75
Better By Design A National StrategyNZ
Design Excellence
76
EXCELLENCE.CENTURY 21.EMPIRES OF THE
MIND.RICHARD FLORIDA.JUAN ENRIQUEZ.
77
Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
78
THE FUTURE BELONGS TO SMALL POPULATIONS
WHO BUILD EMPIRES OF THE MIND AND WHO IGNORE
THE TEMPTATION OFOR DO NOT HAVE THE OPTION
OFEXPLOITING NATURAL RESOURCES.Source Juan
Enriquez/As the Future Catches You
79
U.S. Historical Strength Invest in
CreativityFoster new industriesFree open
societyInvestment higher ed, R D,
cultureImmigrants Source Richard Florida,
The Rise of the Creative Class
80
CI/Top10 Metro Austin, SF, Seattle, Boston,
Raleigh-Durham, Portland, Minneapolis,
Washington-Baltimore, Sacramento,
DenverCI/Bottom10 Detroit, Norfolk,
Cleveland, Milwaukee, Grand Rapids, Memphis,
Jacksonville, Greensboro, New Orleans, Buffalo,
Louisville gt 1M/49 totalSource Richard
Florida, The Rise of the Creative Class
81
The global talent pool and the high-end, high
margin creative industries that used to be the
sole province of the U.S., and a critical source
of its prosperity, have begun to disperse around
the globe. A host of countriesIreland, Finland,
Canada, Australia, New Zealand, among themare
investing in higher education, cultivating
creative people, and churning out stellar
products, from Nokia phones to the Lord of the
Rings movies.. Many of these countries have
learned from past U.S. success and are shoring up
efforts to attract foreign talentincluding
Americans. The United States may well be the
Goliath of the twentieth century global economy,
but it will take just half a dozen
twenty-first-century Davids to begin to wear it
down. To stay innovative, America must continue
to attract the worlds sharpest minds. And to do
that, it needs to invest in the further
development of its creative sector. Because
wherever creativity goesand, by extension,
wherever talent goesinnovation and economic
growth are sure to follow. Americas Looming
Creativity Crisis/Richard Florida/HBR/10.04
82
EXCELLENCE. INNOVATE. OR. DIE.
83
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/09.17.04)
84
More than 1 RD spending, last 25 years?
85
GM
86
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)
87
Scale?Microsofts Struggle With Scale
Headline, FT, 09.2005Troubling Exits at
Microsoft Cover Story, BW, 09.2005Too Big
to Move Fast? Headline, BW, 09.2005
88
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
89
The Perils of Conservatism/Industry
Leadership 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
90
InnoTacs
91
We become who we hang out with!
92
The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma At the top!
Gary Hamel/Harvard Business Review
93
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
94
try it
95
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
96
tolerate encourage? failure
97
Sams Secret 1!
98
bet the farm
99
Immelt is now identifying technologies with
which GE will systematically set out to build
entirely new industries StrategyBusiness, Fall
2005
100
EXCELLENCE. 4/40.
101
4/40
102
De-cent-ral-iz-a-tion!
103
Ex-e-cu-tion!
104
Ac-count-a-bil-ity!
105
615A.M.
106
EXCELLENCE. ACTION.ROOTS.
107
GRANT
108
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
109
NELSON
110
On NELSON other admirals more frightened of
losing than anxious to win
111
BOYD
112
He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. /Col. John
Boyd
113
BOSSIDY
114
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
115
Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
116
PEROT
117
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
118
MASTERS
119
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
120
HERB
121
We have a strategic plan. Its called doing
things. Herb Kelleher
122
EXCELLENCE. BEDROCK.TALENT.
123
Brand Talent.
124
DD21M
125
A review of Jack and Suzy Welchs Winning claims
there are but two key differentiators that set GE
culture apart from the herd First Separating
financial forecasting and performance
measurement. Performance measurement based, as it
usually is, on budgeting leads to an epidemic of
gaming the system. GEs performance measurement
is divorced from budgetingand instead reflects
how you do relative to your past performance and
relative to competitors performance i.e., its
about how you actually do in the context of what
happened in the real world, not as compared to a
gamed-abstract plan developed last year.
Second Putting HR on a par with finance and
marketing.
126
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
127
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
128
CQOChief quest-meister
129
EXCELLENCE. INDIVIDUAL.BRAND YOU.
130
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
131
Distinct or Extinct
132
EXCELLENCE AWOL THE NEW ECONOMY AND THE
SCHOOLS FIASCO
133
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!
134
Ye gads Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, hes actually found
a negative correlation. It seems that
school-related evaluations are poor predictors of
economic success, Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most schools
penalized risk takers. Most educational systems
reward those who play it safe. As a result, those
who do well in school find it hard to take risks
later on. Richard Farson Ralph Keyes, Whoever
Makes the Most Mistakes Wins
135
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer
2002/Research by Thomas Lockwood
136
EXCELLENCE. BEDROCK.PURPOSE.
137
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
138
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
139
EXCELLENCE.ENTHUSIASM.ENERGY.
PASSION.RELENTLESSNESS.
140
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
141
It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
142
EXCELLENCE. AGILITY.
143
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
144
EXCELLENCE. SHOWING UP.
145
25
146
MBWA
147
You must be the change you wish to see in the
world.Gandhi
148
The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
149
EXCELLENCE. STRETCH.
150
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
151
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!
152
EXCELLE ALWAYS.
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