The Challenge: To Create More Value in All Negotiations

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 Peters X25EXCELLENCE.
ALWAYS.FEMSA/Buenos Aires/02 November
2007In Search of Excellence 1982-2007
4
All you need to know
5
25
6
All you need to know except for
7
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub
8
EXCELLENCE. CIRCA 1982.
9
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
10
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
11
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
12
EXCELLENCE. ASPIRATION.2006.
13
Why in the World did you go to Siberia?
14
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
15
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)
16
EXCELLENCE. INNOVATE. OR. DIE.
17
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
18
Dick Kovacevich You dont get better by being
bigger. You get worse.
19
InnoTacs
20
revenue matters most
21
The Commerce Bank Modelcost cutting is a death
spiral.Source Fans! Not customers. How
Commerce Bank Created a Super-growth Business in
a No-growth Industry, Vernon Hill Bob Andelman
22
Our whole story is growing revenue. Vernon
Hill (Top-line driven standard is bottom-line
driven by cost cutting)
23
imagination
24
Single greatest act of pure imagination
25
24
26
dubai
27
design wow
28
You know a design is good when you want to lick
it. Steve Jobs Source Design Intelligence
Made Visible, Stephen Bayley Terence Conran
29
We become who we hang out with 1
30
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
31
CEO A.G. Lafley has shifted PGs focus on
inventing all its own products to developing
others inventions at least half the time. One
successful example Mr. Clean Magic Eraser, based
on a product found in an Osaka market. Fortune,
12.18.06
32
Concoct a Parallel universe!
33
Venture fund (Gerstner/Amex, Dow/Marriott,
Grove/Intel, Bedbury/Starbucks/ 1 )
34
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.
35
drill.
36
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
37
try things.
38
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
39
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

40
No try. No deal.
41
You miss 100 of the shots you never take.
Wayne Gretzky
42
new markets i
43
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
44
Women are the majority market Fara
Warner/The Power of the Purse
45
Repeat 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, April 15
46
The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
47
The Perfect Answer
Jill and Jack buy slacks in black
48
(No Transcript)
49
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
50
We simply had stopped being relevant to women.
Kay Napier, SVP Marketing (Fara Warner, The
Power of the Purse, From Minority to Majority
McDonalds Discovers the Woman Inside the Mom)
51
Mostly Moms Women were either ignored in
favor of focusing on mengenerally considered the
industrys most frequent users and therefore its
most important consumersor they were cast in the
role of moms who were simply conduits to their
children. Fara Warner, The Power of the Purse,
From Minority to Majority McDonalds Discovers
the Woman Inside the Mom
52
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
53
new markets ii
54
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
55
7/13
56
We are the Aussies Kiwis Americans
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!
57
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
58
2000-2010 Stats18-44 -155 21(55-64
47)
59
Conscious measurement
60
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?
61
EXCELLENCE. BEDROCK.LEADERSHIP.10Ps.
62
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
63
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
64
A leader is a dealer in hope. Napoleon
(TPs writing room pics)
65
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
66
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
67
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
68
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
69
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
70
Its always showtime. David DAlessandro,
Career Warfare
71
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
72
You must be the change you wish to see in the
world.Gandhi
73
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
74
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
75
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES. PEOPLE.potent.Positive.
76
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
77
Dennis, you need a To-dont List !
78
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE i.
Potent.Positive.
79
Leaders do people. Period. Anon.
80
Leaders SERVE people. Period. inspired by
Robert Greenleaf
81
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE ii.
Potent.Positive.
82
?
83
A man without a smiling face must not open a
shop. Chinese Proverb
84
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE iii.
Potent.Positive.
85
53 53
86
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE iv.
Potent.Positive.
87
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
88
!!!!!!!!!!!!!!!14 to 168Leadership
Positions/DT/1992-2002/WIAR (Womens Initiative
Annual Report)
89
Period??!!Start 3 0f 14 18 months later 10
of 18 AIM/September 2007
90
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
imperatives. Women are better salespersons than
men. Women buy almost everythingcommercial
as well as consumer goods. So what exactly is
the point of men?
91
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
92
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE v.
Potent.Positive.
93
PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
94
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE vi.
Potent.Positive.
95
Internal brand promise!
96
IBP Remarkable challenge, rapid professional
growth, respect, satisfaction, fun, stunning
opportunity, exceptional reward, amazing peer
group, full membership in Club Adventure,
maximized future employabilitySource adapted
from Ed Michaels, The War for Talent
97
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
98
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE vii.
Potent.Positive.
99
TP How to flush 500,000 down the toilet in
one easy lesson!!
100
lt CAPEXgt People!
101
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
102
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!
103
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
104
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo