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The Challenge: To Create More Value in All Negotiations

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Title: 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.Creativity World Forum12 November
2007In Search of Excellence 1982-2007
4
The guru Gaffes hall of shame the
Over-rated Eight!
5
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
6
Over-ratedBig companies!Public companies!
Cool industries!Stability!Famous CEOs!Hard
stuff!Success!Plans!
7
Too big to manage?Citi/Chuck Prince?
8
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
9
Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
none of the long-term survivors managed to
outperform the market. Worse, the longer
companies had been in the database, the worse
they did. Financial Times
10
1 Exporter?
11
4 Japan
12
4 Japan2T China2T USA
13
4 Japan2T china2t USA1 Germany
14
Reason!!!Mittelstand
15
e.g. Goldmann Produktions(11/50/5M/dip and
coat, expensive pigments vs through coloring,
fades Bekro Chemie)
16
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
17
Family BusinessesTwo-thirds of
total s of companiesOne-half of biggest
companiesgtOne-half GDPgtOne-half employment6
more profitable7 better ROAHigher income
growthHigher revenue growthSource John Davis,
HBS
18
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
19
Jims Group
20
Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
21
etc.PRSX/Paragon Railcar SalvageSalvaged
railcars into bridges, etc.
22
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
23
The last word There is no last word.
24
Headline, Wall Street Journal, 3 October 2007
WalMart Era Wanes Amid Big Shifts In Retail
Rivals Find Strategies To Defeat Low Prices
World Has Changed Sentence 1 The WalMart
Era, the retailers time of overwhelming business
and social influence in America, is drawing to a
close.
25
Q4/2006500,000 ? Source Barrons 0922.07
26
Q4/2006500,000 7,700,000-7,200,000
Source Barrons 0922.07
27
Natural selection is death. ... Without huge
amounts of death, organisms do not change over
time. ... Death is the mother of structure. ...
It took four billion years of death ... to invent
the human mind ... The Cobra Event
28
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
29
Mission impossible?36B/98minus 675M/07
30
Market capitalization lost per day, 1998-2007
10,000,000/Day
31
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
32
Hard Is SoftSoft Is Hard
33
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
34
Idiots Hard?????Mark-to-market (Whats
market???? What market????)CDOs/Consolidated-d
ebt Obligation (Value of underlying asset??????)
(Value of 64B super-senior super-safe
CDOs at Citi???????) Postscript Bye, bye
Stan/Merrill and Chuck/Citi. Youre gonna have
to learn to live on 100 million or so
Stan/160M severance, I guess.
35
Hard Is SoftSoft Is Hard
36
25
37
Hard Is SoftSoft Is Hard
38
R.O.I.R.
39
Return On Investment In Relationships
40
Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE.

41
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

42
Hard Is SoftSoft Is Hard
43
TP How to flush 500,000 down the toilet in
one easy lesson!!
44
lt CAPEXgt People!
45
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
46
Strive for Excellence. Ignore success. Bill
Young, race car driver (courtesy Andrew Sullivan)
47
EXCELLENCE.Circa 1982.
48
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
49
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
50
EXCELLENCE. ASPIRATION.2006.
51
Why in the World did you go to Siberia?
52
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
53
2007.SEPTEMBER.SYDNEY.DRUCKER TRIBUTE.
54
I have always believed that the purpose of the
corporation is to be a blessing to the
employees. Boyd Clarke TP An
organization is, in fact and after all is
said and done, a/the house in which most of us
live most of the time.
55
Organizations exist to serve. Period. Leaders
live to serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain
create/must necessarily create organizations
which are no less than Cathedrals in which the
full and awesome power of the Imagination and
Spirit and native Entrepreneurial flair of
diverse individuals is unleashed In passionate
pursuit of jointly perceived soaring purpose and
personal and community and client service
Excellence.
56
The Over-rated EightBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!
57
Recently I asked several corporate executives
what decisions they had made in the last year
that would not have been made were it not for
their corporate plans. All had difficulty
identifying one such decision. Since all of
the plans are marked secret or confidential,
I asked them how their competitors might benefit
from possession of their plans. Each answered
with embarrassment that their competitors
would not benefit. Russell Ackoff (from Henry
Mintzberg, The Rise and Fall of Strategic
Planning)
58
EXCELLENCE. one idea.1966-2007.
59
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.
60
drill.
61
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
62
try things.
63
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
64
Screw. things.Up.
65
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
66
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
67
No try. No deal.
68
You miss 100 of the shots you never take.
Wayne Gretzky
69
The Esteemed EightSMEs!Private companies!
Dull industries!Productive churn!Laudable
CEOs!Soft stuff!Excellence!Action-Execution!
70
The nonsense nine!
71
The Nonsense NineBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Success!Plans!Men!
72
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
73
Women are the majority market Fara
Warner/The Power of the Purse
74
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
75
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
76
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
77
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?
78
The Notable NineSMEs!Private companies!
Dull industries!Churn!Laudable CEOs!Soft
stuff!Excellence!Action-Execution!Women!
79
The nefarious nine point five!
80
The Nefarious Nine Point FiveBig
companies!Public companies! Cool
industries!Stability!Famous CEOs!Hard
stuff!Success!Plans!Men!Young!
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
7/13
83
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!
84
2000-2010 Stats18-44 -155 21(55-64
47)
85
The Nifty Nine Point FiveSMEs!Private
companies! Dull industries!Churn!Laudable
CEOs!Soft stuff!Excellence!Action-Execution!
Women!Boomers-Geezers!
86
The terrible ten!
87
The Terrible TenBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Plans!Success!Men!Increme
ntalism-Kaizen
88
Single greatest act of pure imagination
89
24
90
dubai
91
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
92
The Terrific TenSMEs!Private companies!
Dull industries!Churn!Laudable CEOs!Soft
stuff!Excellence!Action-Execution!Women!Imagin
ation Unbound!
93
The egregious eleven!
94
The Egregious ElevenBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Plans!Success!Men!Increme
ntalism-KaizenMinimization!
95
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
96
Our whole story is growing revenue. Vernon
Hill (Top-line driven standard is bottom-line
driven by cost cutting)
97
The Commerce Bank Model over-invest in our
people, over-invest in our facilities.Source
Fans! Not customers. How Commerce Bank Created a
Super-growth Business in a No-growth Industry,
Vernon Hill Bob Andelman
98
ltTGWvs. gtTGR
99
TGR (Things gone right) gt
TGW (Things Gone Wrong)
100
Singapore-Candy(Operational Excellence)
101
The EnviableSMEs!Private companies! Dull
industries!Churn!Laudable CEOs!Soft
stuff!Excellence!Action-Execution!Women!Imagin
ation Unbound!Emphasize the Positive!
102
The despicable Dozen!
103
The Despicable DozenBig companies!Public
companies! Cool industries!Stability!Famous
CEOs!Hard stuff!Plans!Success!Men!Increme
ntalism-KaizenMinimization!Uniformity!
104
53 53
105
Every child is born an artist. The trick is to
remain an artist. Picasso
106
Muhammad Yunus All human beings are
entrepreneurs. When we were in the caves we were
all self-employed . . . finding our food, feeding
ourselves. Thats where human history began . . .
As civilization came we suppressed it. We became
labor because they stamped us, You are labor.
We forgot that we are entrepreneurs. Source
Muhammad Yunus/2006 Nobel Peace prize winner,
father of micro-lending /The News
HourPBS/1122.2006
107
Normal o for 800
108
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
109
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
110
The Hang Out Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision
about Innovate, Yes or No
111
The Delectable DozenSMEs!Private
companies! Dull industries!Churn!Laudable
CEOs!Soft stuff!Excellence!Action-Execution!
Women!Imagination Unbound!Accentuate the
Positive!Individuality!
112
The Delectable DozenSMEs!Private
companies! Dull industries!Productive
Churn!laudable CEOs!Soft stuff!Excellence!Ac
tion-Execution!Women! (Boomers-Geezers!)Imaginat
ion Unbound!Emphasize the Positive!Individuality
!
113
EXCELLENCE. BEDROCK.LEADERSHIP.10Ps.
114
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
115
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
116
Leader Job OnePaint Portraits of Excellence!
117
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
118
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
119
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
120
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
121
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
122
You must be the change you wish to see in the
world.Gandhi
123
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
124
Being aware of yourself and how you affect
everyone around you is what distinguishes a
superior leader. Edie Seashore (Strategy
Business 45)
125
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
126
Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
127
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES. PEOPLE.potent.Positive.
128
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
129
Dennis, you need a To-dont List !
130
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE .
Potent.Positive.
131
Leaders do people. Period. Anon.
132
Leaders SERVE people. Period. inspired by
Robert Greenleaf
133
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
134
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!
135
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PRIORITIES.PEOPLE. Potent.Positive.
136
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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