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Title: Tom Peters


1
Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeKuala Lumpur/03March2004
2
Slides at tompeters.com
3
I. NEW BUSINESS. NEW CONTEXT.
4
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
5
All Bets Are Off.
6
Jobs TechnologyGlobalization
7
14 MILLION service jobs are in danger of being
shipped overseas The Dobbs Report/USNWR/11.03/r
e new UCB study
8
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
9
The proper role of a healthily functioning
economy is to destroy jobs and to put labor to
use elsewhere. Despite this truth, layoffs and
firings will always sting, as if the invisible
hand of free enterprise has slapped workers in
the face. Joseph Schumpeter
10
Jobs TechnologyGlobalization
11
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
12
In 25 years, youll probably be able to get the
sum total of all human knowledge on a personal
device.Greg Blonder, VC was Chief Technical
Adviser for Corporate Strategy _at_ ATT Barrons
11.13.2000
13
A California biotechnology company has put the
entire sequence of the human genome on a single
chip, allowing researchers to conduct on the
complex relationships between the 30,000 genes
that make up a human being in a single
experiment. Page 1, Financial Times/10.03.2003
14
Jobs TechnologyGlobalization
15
Asias rise is the economic event of our age.
Should it proceed as it has over the last few
decades, it will bring the two centuries of
global domination by Europe and, subsequently,
its giant North American offshoot to an end.
Financial Times (09.22.2003)
16
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
17
China Roars!
18
1990-2003 Exports 8X (380B) 6 global exports
2003 vs. 3.9 2000 16 of Total Global Growth in
2002.Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
19
World economic output U.S.A., 21 EU, 16
China, 13 (2X since1991)Source New York
Times/12.14.2003
20
1998-2003 45,000,000 layoffs in state sector
offset by 450B in foreign investment foreign
companies account for 50 of exports vs. 31 in
Mexico, 15 in Korea.Source China Takes
Off, David Hale Lyric Hughes Hale/Foreign
Affairs/Nov-Dec2003
21
2003 China-Hong Kong leading producer in 8 of 12
key consumer electronic product areas (gt50
DVDs, digital cameras gt33.33 DVD-ROM drives,
personal desktop and notebook computers gt25
mobile phones, color TVs, PDAs, car
stereos).Source China Takes Off, David Hale
Lyric Hughes Hale/Foreign Affairs/Nov-Dec2003
22
As China becomes the worlds factory and
Flextronics becomes the biggest electronics
manufacturer in China, policy makers and analysts
wonder wether there will be a future for
manufacturing in Singapore, Malaysia, North
America or Europe. Asia Inc./02.2004
23
With a Small Car, India Takes Big Step Onto
Global Stage Headline, p. 1, WSJ, 02.05.2004
24
INDIAThe Next Manufacturing Hub? Asia
Inc./02.04
25
All Bets Are Off!
26
We are in a brawl with no rules.Paul Allaire
27
There will be more confusion in the business
world in the next decade than in any decade in
history. And the current pace of change will only
accelerate.Steve Case
28
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control? Or evolution
and learning? Do we think that progress
requires a central blueprint? Or do we see it as
a decentralized, evolutionary process? Do we
see mistakes as permanent disasters? Or the
correctable byproducts of experimentation? Do
we crave predictability? Or relish surprise?
These two poles, stasis and dynamism,
increasingly define our political, intellectual
and cultural landscape. Virginia Postrel, The
Future and Its Enemies
29
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 Nonsense 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.
30
It is the foremost taskand responsibilityof
our generation to re-imagine our enterprises,
private and public. from the Foreword,
Re-imagine
31
2. The Destruction Imperative.
32
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
33
C.E.O. to C.D.O.
34
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
35
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
36
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
37
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
38
Winning the Merger Game Is Possible--Lots of
deals--Little deals--Friendly deals--Stay
close to core competence--Strategy is easy to
understandSource The Mega-merger Mouse
Trap/Wall Street Journal02.17.2004/David
Harding Sam Rovit, Bain Co./re Comcast-Disney
39
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
40
The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
41
Silicon Valley Success Failure?
SecretsPursuit of risk 4 of 20 in V.C.
portfolio go bust 6 lose money 6 do okay 3 do
well 1 hits the jackpotSource The Economist
42
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
43
Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company
44
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
45
II. NEW BUSINESS. NEW TECH.
46
3. IS/ IT/ WebOn the Bus or Off the Bus.
47
100 square feet
48
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)
49
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
)
50
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
51
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
52
flash mobs (!)
53
The Real News X1,000,000TowTruckNet.com
54
MIT Everywhere EVERY LECTURE, EVERY LECTURE,
EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL
GEEKS GETTING AN MIT EDUCATION, OPEN
SOURCE-STYLE. Headline/Wired/09.03
55
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
56
The organizations we created have become
tyrants. They have taken control, holding us
fettered, creating barriers that hinder rather
than help our businesses. The lines that we drew
on our neat organizational diagrams have turned
into walls that no one can scale or penetrate or
even peer over. Frank Lekanne Deprez René
Tissen, Zero Space Moving Beyond Organizational
Limits.
57
From Weapon v. Weapon To
Org structure v. Org structure
58
Our military structure today is essentially one
developed and designed by Napoleon.Admiral
Bill Owens, former Vice Chairman, Joint Chiefs of
Staff
59
Eric Shinsekis ArmyFlat.Fast.Ag
ile.Adaptable.Light But Lethal.I Am an Army
of One.Info-intense.Network-centric.
60
4. The White Collar Revolution.
61
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
62
108 X 5vs. 8 X 1 540 vs. 8 (-98.5)
63
E.g. Jeff Immelt 75 of admin, back room,
finance digitalized in 3 years.Source BW
(01.28.02)
64
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
65
Ford Vehicle brand owner (design, engineer,
and market, but not actually make)Source The
Company, John Micklethwait Adrian Wooldridge
66
III. NEW BUSINESS. NEW VALUE PROPOSITION.
67
5. The PSF SolutionThe Professional Service
Firm Model.
68
Answer PSF!Professional Service
FirmDepartment Head to Managing Partner,
HR IS, etc. Inc.
69
TP to HRMAC You are the Rock Stars of the
Age of Talent!
70
DD21M
71
6. The Heart of the Value Added Revolution PSFs
Unbound/ The Solutions Imperative.
72
Base Case The Sameness Trap
73
While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
74
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
75
Companies have defined so much best practice
that they are now more or less identical.Jesper
Kunde, Unique Now ... or Never
76
We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
77
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersconsulting business!
78
These days, building the best server isnt
enough. Thats the price of entry.Ann
Livermore, Hewlett-Packard
79
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).
80
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
81
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
82
Keep In Mind Customer Satisfaction versus
Customer Success
83
The Ericsson Case1. 50 Mfg
to Solectron/Flextronics2. Substantial RD to
India3. Division for licensing technology4. JV
with Sony on crown jewel handsets5. Result a
wireless specialist that depends on services more
than manufacturing, on knowledge more than
metal Source BW/11.04.02
84
Flextronics-- 14B 100K employees 60 p.a.
growth (93-00)-- contract mfg to
EMS/Electronics Manufacturing Services (design,
mfg, logistics, repair) total package of
outsourcing solutions (Pamela Gordon, Technology
Forecasters)-- The future of manufacturing
isnt just in making things but adding value
(3,500 design engineers)Source Asia
Inc./02.2004
85
E.g. UTC/Otis UTC/Carrier boxes to
integrated building systems
86
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)
87
SCS/Supply Chain Solutions 750 locations
2.5B fastest growing division 19 acquisitions,
including a bankSource Fast Company/02.04
88
WHAT CAN BROWN DO FOR YOU?
89
Omnicom 60 (of 7B) from marketing services
90
Architecture is becoming a commodity. Winners
will be Turnkey Facilities Management
providers.SMPS Exec
91
No longer are we only an insurance provider.
Today, we also offer our customers the products
and services that help them achieve their dreams,
whether its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
92
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
93
IBM/Q3/10.15.03/Rev 5Services/Consulting
11Software 5Hardware -5PCs
-2Technology/Chips -33
94
Turnkey Nation/sHP Sun Farmers Group
Northwestern Mutual Financial Network IBM
ATT Ericsson GE Power Systems GE
Industrial Systems Ford Siemens Home Depot
Deere UTC Otis UTC Carrier UPS
Springs Industries RCI Equity Office
Properties Omnicom India Singapore Etc.
95
IV. NEW BUSINESS. NEW BRAND.
96
7. A World of Scintillating Experiences.
97
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
98
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
99
The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
100
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
101
The Experience LadderExperiences
ServicesGoods Raw Materials
102
Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
103
Most executives have no idea how to add value to
a market in the metaphysical world. But that is
what the market will cry out for in the future.
There is no lack of physical products to choose
between.Jesper Kunde, Unique Now ... or Never
on the excellence of Nokia, Nike, Lego, Virgin
et al.
104
ltTGWvs. gtTGR
105
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
106
Dell IBM Harley Davidson
Magic!Frictionless throughout Supply-chain
EncompassingSolutions Scintillating Experience
107
8. Experiences Embracing the Dream Business.
108
DREAM A dream is a complete moment in the life
of a client. Important experiences that tempt the
client to commit substantial resources. The
essence of the desires of the consumer. The
opportunity to help clients become what they want
to be. Gian Luigi Longinotti-Buitoni
109
The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
110
(Revised) Experience LadderDreams Come True
Awesome ExperiencesSolutionsServicesGoodsRaw
Materials
111
The sun is setting on the Information
Societyeven before we have fully adjusted to its
demands as individuals and as companies. We have
lived as hunters and as farmers, we have worked
in factories and now we live in an
information-based society whose icon is the
computer. We stand facing the fifth kind of
society the Dream Society. The Dream Society
is emerging this very instantthe shape of the
future is visible today. Right now is the time
for decisionsbefore the major portion of
consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will
have to appeal to our hearts, not to our heads.
Now is the time to add emotional value to
products and services. Rolf Jensen/The Dream
SocietyHow the Coming Shift from Information to
Imagination Will Transform Your Business
112
9. The Mostly Ignored Soul of Experiences
Design Rules!
113
And Tomorrow Fifteen years ago companies
competed on price. Now its quality. Tomorrow
its design.Robert Hayes
114
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
115
Design is treated like a religion at
BMW.Fortune
116
We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation.Steve Jobs
117
Hypothesis DESIGN is the principal difference
between love and hate!
118
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer 2002
119
10. It all adds up to THE BRAND.
120
The Heart of Branding
121
WHO ARE WE?
122
WHATS OUR STORY?
123
We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
124
EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?
125
A great company is defined by the fact that it
is not compared to its peers.Phil Purcell,
Morgan Stanley
126
EXACTLY HOW DO I PASSIONATELY CONVEY THAT
DRAMATIC DIFFERENCE TO THE CLIENT ?
127
Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be insanely True
to the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
128
V. NEW BUSINESS. NEW MARKETS.
129
11. Trends Worth Trillion I Women Roar.
130
?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 Cars
68 (90)All consumer purchases 83 Bank
Account 89Household investment decisions
67Small business loans 70Health Care 80
131
5T gt Japan10M/28M/3.6T gt Germany
132
91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
133
Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
134
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.
135
Women's View of Male SalespeopleTechnically
knowledgeable assertive get to the point
pushy condescending insensitive to womens
needs.Source Judith Tingley, How to Sell to
the Opposite Sex (Martha Barletta, Marketing to
Women)
136
Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
137
Resting State 30, 90 A woman knows her
childrens friends, hopes, dreams, romances,
secret fears, what they are thinking, how they
are feeling. Men are vaguely aware of some short
people also living in the house.Barbara
Allan Pease, Why Men Dont Listen Women Cant
Read Maps
138
As a hunter, a man needed vision that would
allow him to zero in on targets in the distance
whereas a woman needed eyes to allow a wide arc
of vision so that she could monitor any predators
sneaking up on the nest. This is why modern men
can find their way effortlessly to a distant pub,
but can never find things in fridges, cupboards
or drawers.Barbara Allan Pease, Why Men
Dont Listen Women Cant Read Maps
139
Female hearing advantage contributes
significantly to what is called womens
intuition and is one of the reasons why a woman
can read between the lines of what people say.
Men, however, shouldnt despair. They are
excellent at imitating animal sounds.Barbara
Allan Pease, Why Men Dont Listen Women Cant
Read Maps
140
Editorial/Men Tables, rankings.Editorial/Women
Narratives that cohere.Redwood (UK)
141
Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
142
EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
143
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
144
Women dont buy brands. They join
them.EVEolution
145
2.6 vs. 21
146
Not!Year of the Woman
147
Enterprise Reinvention!RecruitingHiring/Rewardi
ng/PromotingStructure ProcessesMeasurementStra
tegyCulture VisionLeadershipTHE BRAND ITSELF!
148
Norwegian Law Boards must have at least 40
women.
149
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.
150
12. Trends Worth Trillion II Boomer Bonanza/
Godzilla Geezer.
151
44-65 New Consumer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
152
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
153
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
154
Sixty Is the New Thirty Cover/AARP/11.03
155
Aging/ElderlyIm in charge!
156
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
157
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
158
The mature market cannot be dismissed as
entrenched in its brand loyalties. Carol Morgan
Doran Levy, Marketing to the Mindset of Boomers
and Their Elders
159
Possession Experiences /Desires for
things/Young adulthood/to 38Catered
Experiences/ Desires to be served by
others/Middle adulthoodBeing
Experiences/Desires for trancendany
experiences/Late adulthoodSource David Wolfe
and Robert Snyder/Ageless Marketing
160
Age Power will rule the 21st century, and we
are woefully unprepared.Ken Dychtwald, Age
Power How the 21st Century Will Be Ruled by the
New Old
161
No Target MarketingYes Target Innovation
Target Delivery Systems
162
VI. NEW BUSINESS. NEW YOU.
163
13. Re-inventing the Individual Welcome to a
Brand You World
164
In a global economy, the government cannot give
anybody a guaranteed success story, but you can
give people the tools to make the most of their
own lives. WJC, from Philip Bobbitt, The Shield
of Achilles War, Peace, and the Course of History
165
The Creative Class derives its identity from its
members roles as purveyors of creativity.
Because creativity is the driving force of
economic growth, in terms of influence the
Creative Class has become the dominant class in
society. Richard Florida, The Rise of the
Creative Class (38M, 30)
166
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
167
My ancestors were printers in Amsterdam from
1510 or so until 1750, and during that entire
time they didnt have to learn anything
new.Peter Drucker, Business 2.0 (08.22.00)
168
Knowledge becomes obsolete incredibly fast. The
continuing professional education of adults is
the No. 1 industry in the next 30 years mostly
on line.Peter Drucker,Business 2.0
(22August2000)
169
Invent. Reinvent. Repeat.Source HP banner ad
170
Personal Brand Equity Evaluation
  • I am known for 2 to 3 things next year at this
    time Ill also be known for 1 more thing.
  • My current Project is challenging me
  • New things Ive learned in the last 90 days
    include
  • My public recognition program consists of
  • Additions to my Rolodex in the last 90 days
    include
  • My resume is discernibly different from last
    years at this time

171
14. Boss Job One The Talent Obsession.
172
When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
173
Age of AgricultureIndustrial AgeAge of
Information IntensificationAge of Creation
IntensificationSource Murikami Teruyasu,
Nomura Research Institute
174
Historically, smart people have always turned to
where the money was. Today, money is turning to
where the smart people are. FT/06.03.03
175
Brand Talent.
176
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
177
PARCs Bob Taylor Connoisseur of Talent
178
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
179
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
180
Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
181
Where do good new ideas come from? Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
182
The Cracked Ones Let in the LightOur business
needs a massive transfusion of talent, and
talent, I believe, is most likely to be found
among non-conformists, dissenters and
rebels.David Ogilvy
183
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
BusinessWeek, 11.20.00
184
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
185
Opportunity!
  • U.S.
    G.B. E.U. Ja.
  • M.Mgt. 41 29 18
    6
  • T.Mgt. 4 3 2
    lt1
  • Peak Partic. Age 45 22 27
    19
  • Coll. Stud. 52 50 48 26
  • Source Judy Rosener, Americas Competitive
    Secret

186
Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent IBP/Internal Brand Promise per TP
187
EVP Challenge, professional growth, respect,
satisfaction, opportunity, rewardSource Ed
Michaels et al., The War for Talent
188
Talent Department
189
People DepartmentCenter for Talent
ExcellenceSeriously Cool People Who Recruit
Develop Seriously Cool PeopleEtc.
190
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
191
15. Brand Talent Addressing the Education
Fiasco.
192
My education was a prolonged and concerted
attack on my individuality. Neil Crofts,
Authentic
193
J. D. Rockefellers General Education Board
(1906) In our dreams people yield themselves
with perfect docility to our molding hands. The
task is simple. We will organize children and
teach them in a perfect way the things their
fathers and mothers are doing in an imperfect
way.John Taylor Gatto, A Different Kind of
Teacher
194
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!
195
How many artists are there in the room? Would
you please raise your hands. FIRST GRADE En
masse the children leapt from their seats, arms
waving. Every child was an artist. SECOND GRADE
About half the kids raised their hands, shoulder
high, no higher. The hands were still. THIRD
GRADE At best, 10 kids out of 30 would raise a
hand, tentatively, self-consciously. By the time
I reached SIXTH GRADE, no more than one or two
kids raised their hands, and then ever so
slightly, betraying a fear of being identified by
the group as a closet artist. The point is
Every school I visited was participating in the
suppression of creative genius.Gordon
MacKenzie, Orbiting the Giant Hairball A
Corporate Fools Guide to Surviving with Grace
196
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
197
VII. NEW BUSINESS WEIRD RULES
198
16. THINK WEIRD the HVA/ High Value Added
Bedrock.
199
Saviors-in-WaitingDisgruntled
CustomersOff-the-Scope CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue
Employees
200
CUSTOMERS Future-defining customers may account
for only 2 to 3 of your total, but they
represent a crucial window on the
future.Adrian Slywotzky, Mercer Consultants
201
If you worship at the throne of the voice of
the customer, youll get only incremental
advances.Joseph Morone, President, Bentley
College
202
Primary Obstacles to Marketing-driven
Change1. Fear of cannibalism.2. Excessive
cult of the consumer/ customer driven/
slavery to demographics, market research and
focus groups.3.Creating sustainable
advantage. Source
John-Marie Dru, Disruption
203
Chivalry is dead. The new code of conduct is an
active strategy of disrupting the status quo to
create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of sustainable
advantage after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.Rich DAveni,
Hypercompetition Managing the Dynamics of
Strategic Maneuvering
204
HAVE MBAs KILLED OFF MARKETING? Prof Rajeev
Batra says What these times call for is more
creative and breakthrough reengineering of
product and service benefits, but we dont train
people to think like that. The way marketing is
taught across business schools is far too
analytical and data-driven. Weve taken away the
emphasis on creativity and big ideas that
characterize real marketing breakthroughs. In
India there is an added problem most senior
marketing jobs have been traditionally dominated
by MBAs. Santosh Desai, vice president, McCann
Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like
approach, tend to reduce marketing into neat
components. This reductionist thinking runs
counter to the idea that great brands must have a
core, unifying idea. Businessworld/04Nov2002/W
hy Is Marketing Not Working?
205
COMPETITORS The best swordsman in the world
doesnt need to fear the second best swordsman in
the world no, the person for him to be afraid of
is some ignorant antagonist who has never had a
sword in his hand before he doesnt do the thing
he ought to do, and so the expert isnt prepared
for him he does the thing he ought not to do and
often it catches the expert out and ends him on
the spot. Mark Twain
206
To grow, companies need to break out of a
vicious cycle of competitive benchmarking,
imitation and pursuit. W. Chan Kim Renee
Mauborgne, Think for Yourself Stop Copying a
Rival, Financial Times/08.11.03
207
The short road to ruin is to emulate the methods
of your adversary. Winston Churchill
208
Employees Are there enough weird people in the
lab these days?V. Chmn., pharmaceutical house,
to a lab director (06.01)
209
Suppliers There is an ominous downside to
strategic supplier relationships. An SSR supplier
is not likely to function as any more than a
mirror to your organization. Fringe suppliers
that offer innovative business practices need not
apply. Wayne Burkan, Wide Angle Vision Beat
the Competition by Focusing on Fringe
Competitors, Lost Customers, and Rogue Employees
210
Boards Extremely contentious boards that regard
dissent as an obligation and that treat no
subject as undiscussable Jeffrey Sonnenfeld,
Yale School of Management
211
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, Strategy or Revolution/ Harvard
Business Review
212
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!
213
WEIRD IDEAS THAT WORK (1) Hire slow learners (of
the organizational code). (1.5) Hire people who
make you uncomfortable, even those you dislike.
(2) Hire people you (probably) dont need. (3)
Use job interviews to get ideas, not to screen
candidates. (4) Encourage people to ignore and
defy superiors and peers. (5) Find some happy
people and get them to fight. (6) Reward
success and failure, punish inaction. (7)
Decide to do something that will probably fail,
then convince yourself and everyone else that
success is certain. (8) Think of some
ridiculous, impractical things to do, then do
them. (9) Avoid, distract, and bore
customers, critics, and anyone who just wants to
talk about money. (10) Dont try to learn
anything from people who seem to have solved the
problems you face. (11) Forget the past,
particularly your companys success. Bob
Sutton, Weird Ideas That Work 11½ Ideas for
Promoting, Managing, and Sustaining Innovation
214
Innovation Index How many of your Top 5
Strategic Initiatives score 7 or higher (out of
10) on a Weirdness/Profundity Scale?
215
VIII. NEW BUSINESS. NEW LEADERSHIP.
216
17. The Passion Imperative The Leadership50
217
The Basic Premise.
218
1. Leadership Is a Mutual Discovery Process.
219
Ninety percent of what we call management
consists of making it difficult for people to get
things done. P.D.
220
I dont know.
221
Quests!
222
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.
223
The Leadership Types.
224
2. Great Leaders on Snorting Steeds Are Important
but Great Talent Developers (Type I Leadership)
are the Bedrock of Organizations that Perform
Over the Long Haul.
225
25/8/53
226
3. But Then Again, There Are Times When This
Cult of Personality (Type II Leadership) Stuff
Actually Works!
227
A leader is a dealer in hope.Napoleon
(TPs writing room pics)
228
4. Find the Businesspeople! (Type III
Leadership)
229
I.P.M. (Inspired Profit Mechanic)
230
5. All Organizations Need the Golden Leadership
Triangle.
231
The Golden Leadership Triangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic.
232
The Essential Tension Keeper of the
Flame of Creation (Brahma Creator)
Keeper of the Flame of Preservation (Vishnu
Preserver) Keeper of the Flame of
Destruction (Shiva Destroyer)
233
6. Leadership Mantra 1 IT ALL DEPENDS!
234
Renaissance Men are a snare, a myth, a delusion!
235
7. The Leader Is Rarely/Never the Best Performer.
236
The Leadership Dance.
237
8. Leaders SHOW UP!
238
The first and greatest imperative of command is
to be present in person. Those who impose risk
must be seen to share it. John Keegan, The Mask
of Command
239
9. Leaders LOVE the MESS!
240
Im not comfortable unless Im
uncomfortable.Jay Chiat
241
If things seem under control, youre just not
going fast enough.Mario Andretti
242
10. Leaders DO!
243
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!)
244
We have a strategic plan. Its called doing
things. Herb Kelleher
245
11. Leaders Re-do.
246
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
247
12. BUT Leaders Know When to Wait.
248
Tex Schramm The too hard box!
249
13. Leaders Are Optimists.
250
Hackneyed but none the less true LEADERS SEE
CUPS AS HALF FULL.
251
Half-full Cups Ronald Reagan radiated an
almost transcendent happiness.Lou Cannon,
George (08.2000)
252
14. Leaders DELIVER!
253
Leaders dont want to win. Leaders need to
win.49
254
It is no use saying We are doing our best. You
have got to succeed in doing what is necessary.
WSC
255
15. BUT Leaders Are Realists/Leaders Win
Through LOGISTICS!
256
The Gus Imperative!
257
16. Leaders FOCUS!
258
To Dont List
259
Its T-H-R-E-E, Stupid!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
260
17. Leaders Set CLEAR DESIGN SPECS.
261
Danger S.I.O. (Strategic Initiative Overload)
262
JackWorld/1_at_T (1) Neutron Jack. (Banish
bureaucracy.) (2) 1, 2 or out Jack. (Lead or
leave.) (3) Workout Jack. (Empowerment, GE
style.) (4) 6-Sigma Jack. (5) Internet Jack.
(Throughout) TALENT JACK!
263
18. Leaders Send V-E-R-Y Clear Signals About
Design Specs!
264
Ridin with Roger What have you done to
DRAMATICALLY IMPROVE quality in the last 90 days?
265
If It Aint Broke Break It.
266
19. Leaders FORGET!/Leaders DESTROY!
267
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out.Dee Hock
268
20. BUT Leaders Have to Deliver, So They Worry
About Throwing the Baby Out with the Bathwater.

269
Damned If You Do, Damned If You Dont, Just
Plain Damned.Subtitle in the chapter, Own Up
to the Great Paradox Success Is the Product of
Deep Grooves/ Deep Grooves Destroy Adaptivity,
Liberation Management (1992)
270
21. Leaders HONOR THE USURPERS.
271
Saviors-in-WaitingDisgruntled
CustomersUpstart CompetitorsRogue
EmployeesFringe SuppliersWayne Burkan, Wide
Angle Vision
272
22. Leaders Make Lotsa Mistakes and MAKE NO
BONES ABOUT IT!
273
Fail faster. Succeed sooner.David Kelley/IDEO
274
Fail. Forward. Fast. High-tech Exec
275
23. Leaders Make BIG MISTAKES!
276
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec (and, de
facto, Jack)
277
Create.
278
24. Leaders Know that THERES MORE TO LIFE THAN
LINE EXTENSIONS. Leaders Love to CREATE NEW
MARKETS.
279
No one ever made it into the Business Hall of
Fame on a record of line extensions.
280
25. Leaders Make Their Mark / Leaders Do
Stuff That Matters
281
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
282
Great Companies SET THE AGENDA. (Period.)
283
AGENDA SETTERS Set the Table/ Pioneers/
Questors/ AdventurersUS Steel Ford Macys
Sears Litton Industries ITT The Gap
Limited WalMart PG 3M Intel IBM
Apple Nokia Cisco Dell MCI Sun Oracle
Microsoft Enron Schwab GE Southwest
Laker People Express Ogilvy Chiat/Day
Virgin eBay Amazon Sony BMW CNN
284
Legacy!
285
CEO Assignment2002 (Bermuda) Please leap
forward to 2007, 2012, or 2022, and write a
business history of Bermuda. What will have been
said about your company during your tenure?
286
Ah, kids What is your vision for the future?
What have you accomplished since your first
book? Close your eyes and imagine me
immediately doing something about what youve
just said. What would it be? Do you feel you
have an obligation to Make the world a better
place?
287
Management has a lot to do with answers.
Leadership is a function of questions. And the
first question for a leader always is Who do we
intend to be? Not What are we going to do? but
Who do we intend to be? Max DePree, Herman
Miller
288
26. Leaders Push Their Organizations W-a-y Up the
Value-added/ Intellectual Capital Chain
289
09.11.2000 HP bids 18,000,000,000for
PricewaterhouseCoopersConsulting business!
290
27. Leaders LOVE the New Technology!
291
100 square feet
292
28. Needed? Type IV Leadership Technology
Dreamer-True Believer
293
The Golden Leadership Quadrangle (1)
Creator-Visionary (2) Talent Fanatic-Mentor-V.C.
(3) Inspired Profit Mechanic. (4) Technology
Dreamer-True Believer
294
Talent.
295
29. When It Comes to TALENT Leaders Always
Swing for the Fences!
296
Talents Rules1. Talent
25/8/53 2. Some people are better than other
people. Some people are a helluva lot better
than other people3. Think Roster4. Think
V.C.5. Talent Brand6. Talent is what
leaders do.
297
30. Leaders Dont Create Followers THEY CREATE
LEADERS!
298
I start with the premise that the function of
leadership is to produce more leaders, not more
followers.Ralph Nader
299
31. Leaders Win Followers Over
300
WHAT AN IDIOT Instead of employees being in the
drivers seat, now were in the drivers seat.
301
PJ Coaching is winning players over.
302
The Cold War armies were not great armies,
because all the decisions were made by generals
and politicians. In great armies, the job of
generals is to back up their sergeants. COL Tom
Wilhelm, from Robert Kaplan, The Man Who Would
Be Khan, The Atlantic, 03.2004
303
Passion.
304
32. Leaders Out Their PASSION!
305
G.H. Create a cause, not a business.
306
Vision is a love affair with an idea.Boyd
Clarke Ron Crossland, The Leaders Voice
307
33. Leaders Know ENTHUSIASM BEGETS ENTHUSIASM!
308
BZ I am a Dispenser of Enthusiasm!
309
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch, on GEs quality program
310
Im looking for insane commitment. Twyla
Tharp, The Creative Habit
311
a powerful and madly exuberant work LA Times
on Frank Gehrys Walt Disney Concert Hall (10.03)
312
34. Leaders Are in a Hurry
313
The Urgency Factor LEADERS have a distorted
sense of time. (E.g. Rummy thinks he asked
months ago it was the day before yesterday.)
314
35. Leaders Focus on the SOFT STUFF!
315
Soft Is Hard- ISOE
316
Message Leadership is all about love! Passion,
Enthusiasms, Appetite for Life, Engagement,
Commitment, Great Causes Determination to Make
a Damn Difference, Shared Adventures, Bizarre
Failures, Growth, Insatiable Appetite for
Change. Otherwise, why bother? Just read
Dilbert. TPs final words CYNICISM SUCKS.
317
The Job of Leading.
318
36. Leaders Know Its ALL SALES ALL THE TIME.
319
TP If you dont LOVE SALES find another life.
(Dont pretend youre a leader.) (See TPs
The Project50.)
320
37. Leaders LOVE POLITICS.
321
TP If you dont LOVE POLITICS find another
life. (Dont pretend youre a leader.)
322
38. But Leaders Also Break a Lot of China
323
If youre not pissing people off, youre not
making a difference!
324
39. Leaders Give RESPECT!
325
  • It was much later that I realized Dads secret.
    He gained respect by giving it. He talked and
    listened to the fourth-grade kids in Spring
    Valley who shined shoes the same way he talked
    and listened to a bishop or a college president.
    He was seriously interested in who you were and
    what you had to say.
  • Sara Lawrence-Lightfoot, Respect

326
Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
327
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