The Challenge: To Create More Value in All Negotiations

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Tom Peters X25Enthusiasm.Energy.Empathy.Exe
cution.Excellence. Always. XAlways.ROCHE.ATHENS
.11 January 2007In Search of Excellence
1982-2007
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FLOWERPOWER
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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Where Are Your 2-cent Candies?Beltramos
checkout.Carpet installer booties.Singapore
candies _at_ Immigration
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The Jim Jeffords oversight!
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Slides at tompeters.comalso long
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EXCELLENCE. ALL YOU NEED TO KNOW.
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25
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MBWA, Grameen Style!Conventional banks ask
their clients to come to their office. Its a
terrifying place for the poor and illiterate.
The entire Grameen Bank system runs on the
principle that people should not come to the
bank, the bank should go to the people. If any
staff member is seen in the office, it should be
taken as a violation of the rules of the Grameen
Bank. It is essential that those setting up a
new village Branch have no office and no place
to stay. The reason is to make us as different as
possible from government officials. Source
Muhammad Yunus, Banker to the Poor
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EXCELLENCE. THE MANDATE.
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It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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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
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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
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Welcome to the Club of Shattered Dreams Of
Koreas Top 100 companies in 1955, only 7 were
still on the list in 2004. The 1997 crisis
destroyed half of Koreas 30 largest
conglomerates.Source KET Issue Report, Kim
Jong Nyun (14.05.2005)
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SP Stability Ratings
1985 2006Low Risk
41 13 Average Risk 24
14High Risk 35 73Likelihood
of stable long-term earnings growthSource
Fortune (2 October 2006)
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Flat as a Pancake (Or Worse)WalMart Dell
Intel Home Depot Microsoft GE
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The last word There is no last word.
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EXCELLENCE. THE WORD.
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SynonymsPurityTranscendenceVirtueEleganceMaj
estyAntonymsMediocrity
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EXCELLENCE. GAMECHANGER.
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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
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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
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EXCELLENCE. ASPIRATION.
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Why in the world did you go to Siberia?
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Business (at its excellent best) can be An
emotional, vital, audacious, innovative, joyful,
frightening, risky, creative, entrepreneurial
endeavor that breathes life fire into our work
life elicits maximum concerted human
potential in the wholehearted effort to help
others employees, clients, suppliers,
communities, owners, temporary partners succeed
profit imagine reach places theyd never
dreamed they could go.
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In-sane-ly-great
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EXCELLENCE.ASPIRATION. YOU ME.
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! RG
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Work on me first. Kerry Patterson, Joseph
Grenny, Ron McMillan and Al Switzler/Crucial
Conversations
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Every time we come to a comfort zone, we will
find a way out. No Cloning. Reinvent the
brand with each new show. A typical day at the
office for me begins by asking, What is
impossible that I am going to do today?
Daniel Lamarre, president, Cirque du Soleil
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EXCELLENCE. ALWAYS.
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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)
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EXCELLENCE. INNOVATE. OR. DIE.
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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
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse.
Dick Kovacevich/Wells Fargo
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Not a single company that qualified as having
made a sustained transformation ignited its leap
with a big acquisition or merger. Moreover,
comparison companiesthose that failed to make a
leap or, if they did, failed to sustain itoften
tried to make themselves great with a big
acquisition or merger. They failed to grasp the
simple truth that while you can buy your way to
growth, you cannot buy your way to greatness.
Jim Collins/Time/2004
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EVERYTHING YOU THOUGHT YOU KNEW ABOUT
INNOVATION IS WRONG
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The Mess Is the Message! Period!
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The Mess Is the Message! Period!An Economic
Interpretation of the Constitution of the United
States Charles Beard (1913)The Box How the
Shipping Container Made the World Smaller and the
World Economy Bigger Marc LevinsonTube The
Invention of Television David Marshall Fisher
Empires of Light Edison, Tesla, Westinghouse,
and the Race to Electrify the World Jill
JonnesThe Soul of a New Machine Tracy
KidderRosalind Franklin The Dark Lady of DNA
Brenda MaddoxThe Blitzkrieg Myth John
Mosier
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InnoTacs
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We become who we hang out with!
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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
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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
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send people on quests!
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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.
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Leaderships Mt Everest/Mt Excellencefree to
do his or her absolute best allow its
members to discover their greatness.
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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Try it. try it. Try it.
Try it. try it. Try it. Try it. Try it. Try it.
Try it.
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drill.
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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
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try things.
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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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
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We ground up more pig brains!
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The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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You miss 100 percent of the shots you never
take. Wayne Gretzky
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TP Lessons LearnedInnovation DisDis
(Disciplined Disorganization)Luck is a very
good thing. (More lessons later E.g., If
you hire a bunch of disciplined weirdos and try
a lot of weird stuff, the odds of getting lucky
go up remarkably) (Career success depends on
convincing others that you knew what the hell you
were doing all along. Good news Say it long
enough and you will believe it. Great news Keep
saying it and you, too, can become a guru.)
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do things.
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We have a strategic plan. Its called doing
things. Herb Kelleher
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no option.
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Paul Allaire We are in a brawl with no
rules.TP Theres only one possible answer
S.A.V.Screw Around Vigorously
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tolerate encourage? failure
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FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
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Fail . Forward. Fast.High Tech CEO,
PennsylvaniaFail faster. Succeed
Sooner.David Kelley/IDEO
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Sams Secret 1!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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EXCELLENCE. 4/40.
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4/40
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De-cent-ral-iz-a-tion!
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If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
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Ex-e-cu-tion!
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Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
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Ac-count-a-bil-ity!
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GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
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615A.M.
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EXCELLENCE. VALUE ADDED.UP THE LADDER.
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EXCELLENCE.VALUE-ADDED LADDER I. SOLVE IT.
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55B
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Up, Up, Up, Up the Value-added Ladder.
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The Value-added Ladder/ OPPORTUNITY-SEEKING
Gamechanging SolutionsServicesGoods Raw
Materials
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The business of selling is not just about
matching viable solutions to the customers that
require them. Its equally about managing the
change process the customer will need to go
through to implement the solution and achieve the
value promised by the solution. One of the key
differentiators of our position in the market is
our attention to managing change and making
change stick in our customers organization.
(E.g. CRM failure rate/Gartner 70) Jeff
Thull, The Prime Solution Close the Value Gap,
Increase Margins, and Win the Complex Sale
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EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF)
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Department Head to Managing Partner, IS
HR, RD, etc. Inc.
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Core MechanismGame-changing Solutions PSF
(Professional Service Firm model/The
Organizing Principle) Brand You(Distinct or
Extinct/The Talent) Wow! Projects
(Different vs Better/The Work)
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HCare CIO Technology Executive (workin in a
hospital) Or/to Full-scale, Accountable (life
or death) Member-Partner of XYZ Hospitals
Senior Healing-Services Team (who happens to be a
techie)
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EXCELLENCE.VALUE-ADDED LADDER II. EXPERIENCE
IT.
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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
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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
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Up, Up, Up, Up the Value-added Ladder.
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The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding Experiences
Gamechanging SolutionsServicesGoods Raw
Materials
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EXCELLENCE. OPPORTUNITY.ENORMOUS.WOMEN.
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Idiot is too kind a word.
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Thats a VERY diverse team. Patrick
Cescau, CEO, Unilever 1 of 14 Board of
Directors members is a woman (not an exec) 2 of
7 Exec Team members are Indians. (Source
FT/24-25 June.) Approximately 85 of Unilevers
products are purchased by women.
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Thats a VERY sick man. Tom Peters
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EXCELLENCE. OPPORTUNITY.ENORMOUS.WOMEN.
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Women are the majority market Fara
Warner/The Power of the Purse
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Selling to men The TRANSACTION ModelSelling to
Women The RELATIONAL ModelSource Selling
to Men, Selling to Women, Jeffery Tobias Halter
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Editorial/Men Tables, rankings.Editorial/Women
Narratives that cohere.Redwood (UK)
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WOMEN. DOMINATE. ECONOMIC. GROWTH.
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Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
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10 UNASSAILABLE REASONS WOMEN
RULE Women make all the financial
decisions.Women control all the wealth. Women
substantially outlive men. Women start most of
the new businesses. Womens work force
participation rates have soared
worldwide. Women are closing in on same pay for
same job. Women are penetrating senior
ranks rapidly even if the pace is slow for
the corner office per se. Womens
leadership strengths are exceptionally well
aligned with new organizational effectiveness
value-added imperatives. Women are better
salespersons than men. Women buy almost
everythingcommercial as well as consumer
goods. So what exactly is the point of men?
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Not Just America Boys Falling Seven Years
Behind Girls at GCSE Level headline, Weekly
Telegraph, UK, 10.25.06
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COROLLARY. EXCELLENCE. WOMEN.RULE.
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
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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. Judy B. Rosener, Americas
Competitive Secret Women Managers
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Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, Cover
story/May 2006, World Business, Say It Like a
Woman Why the 21st-century negotiator will need
the female touch
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EXCELLENCE. OPPORTUNITY.ENORMOUS.BOOMERS.GEEZ
ERS.
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!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
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EXCELLENCE. BEDROCK.LEADERSHIP.9Ps. L23.
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
112
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
113
People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
115
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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Whenever anything is being accomplished, I have
learned, it is being done by a monomaniac with a
mission. Peter Drucker
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Great leaders move us. They ignite our passion
and inspire the best in us. When we try to
explain why they are so effective, we speak of
strategy, vision or powerful ideas. But the
reality is much more primal Great leadership
works through the emotions. Daniel Goleman,
The New Leaders
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To meet Roosevelt, said Churchill, with all
his buoyant sparkle, his iridescence, was like
opening a bottle of champagne. Churchill, who
knew both champagne and human nature, recognized
ebullient leadership when he saw it. Kay
Redfield Jamison, Exuberance The Passion for
Life Churchill had a very powerful mind, but a
romantic and unquantitative one. If he thought
about a course of action long enough, if he
achieved it alone in his own inner consciousness
and desired it passionately, he convinced himself
it must be possible. Then, with incomparable
invention, eloquence and high spirits, he set
out to convince everyone else that it was not
only possible, but the only course of action
open to man.C.P. Snow We are all worms. But
I do believe that I am a glow-worm.Churchill
on Churchill The multitudes were swept forward
till their pace was the same as his.Churchill
on T.E. Lawrence
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
120
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
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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
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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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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
124
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PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
126
You must be the change you wish to see in the
world.Gandhi
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Its always showtime. David DAlessandro,
Career Warfare
128
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
129
Relentless 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
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"The reasonable man adapts himself to the world.
The unreasonable one persists in trying to adapt
the world to himself. Therefore, all progress
depends upon the unreasonable man. GB Shaw,
Man and Superman The Revolutionists'
Handbook.
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Success seems to be largely a matter of
hanging on after others have let go. William
Feather, author
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"Life is not a journey to the grave with the
intention of arriving safely in one pretty and
well preserved piece, but to skid across the line
broadside, thoroughly used up, worn out, leaking
oil, shouting GERONIMO! Bill McKenna,
professional motorcycle racer (Cycle magazine)
133
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
134
Leaders do people. Period. Anon.
135
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
136
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman,
PepsiCo
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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!
138
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
139
On NELSON other admirals more frightened of
losing than anxious to win
140
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
141
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)
142
EXCELLENCE. THE LEADERSHIP23.
143
Leadership23/ML1.
Enthusiasm. Energy. Exuberance.2. Action.
Execution.3. Tempo. Metabolism.4.
Relentless.5. Master of Plan B.6.
Accountability.7. Meritocracy.8. Leaders do
people. Mentor. (Success creation
business.)9. Women. Diversity.10. Integrity.
Credibility. Humanity. Grace.11. Realism.12.
Cause. Adventures. Quests.
144
Leadership23/ML13.
Legacy.14. Best story wins.15. On the edge.
(Wildest chimera of a moonstruck
mind.) 16. Reward excellent failures. Punish
mediocre successes.17. Different gt Better.
(Only ones who do what we do.)18. MBWA.
Customer MBWA.19. Laughs.20. Repot. Curiosity.
Why?21. You Calendar. To Dont. Two.22.
Excellence. Always. 23. Nelsonian! (Other
admirals more afraid of losing than anxious
to win.)
145
EXCELLE ALWAYS.