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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.World
Marketing and Innovation ForumMadrid/19 November
2007In Search of Excellence 1982-2007
4
1/14
5
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)
6
If Not Excellence, What?
7
2
8
25
9
3-4
10
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub
11
Execution is strategy. Fred Malek
12
ltTGWvs. gtTGR
13
5
14
one idea.1966-2007.
15
What makes God laugh?
16
People making plans!
17
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.
18
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
19
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
20
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
21
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
22
You miss 100 of the shots you never take.
Wayne Gretzky
23
6
24
The last word There is no last word.
25
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.
26
Built to LastvsBuilt to Change/Rock the World
27
7
28
TP How to flush 500,000 down the toilet in
one easy lesson!!
29
lt CAPEXgt People!
30
Brand Talent.
31
7A
32
?
33
7B
34
53 53
35
7c
36
Leaders do people. Period. Anon.
37
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
38
7d
39
Leaders SERVE people. Period. inspired by
Robert Greenleaf
40
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
41
8
42
Do one thing every day that scares you.
Eleanor Roosevelt
43
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!
44
8a
45
Every child is born an artist. The trick is to
remain an artist. Picasso
46
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!
47
15 Leading Biz SchoolsDesign/Core
0Design/Elective 1Creativity/Core
0Creativity/Elective 4Innovation/Core
0Innovation/Elective 6Source DMI/Summer
2002/Research by Thomas Lockwood
48
Deutsche Bank Moves Half of Its Back-office Jobs
to India/ headline/FT/0327 (500 of 900 Research)
49
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
50
9
51
Single greatest act of pure imagination
52
24
53
dubai
54
20,000,000,000
55
No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
56
3Ms Innovation Crisis How Six Sigma Almost
Smothered Its Idea CultureSource Title/Cover
Story, BW, 0611.07 (Whats remarkable is how
fast a culture can be torn apart, 3M lead
scientist In an innovation economy, 6 Sigma
is no longer a cure all/BW)
57
10
58
Strive for Excellence. Ignore success. Bill
Young, race car driver (courtesy Andrew Sullivan)
59
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
60
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
61
Why in the World did you go to Siberia?
62
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
63
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.
64
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.
65
11
66
Im so angry I could scream(so I will!)
67
Rocket Science?Buffett I But what about the
value of the underlying asset?
68
11A
69
Hard Is SoftSoft Is Hard
70
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
71
If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the game it is the game. Lou Gerstner, Who
Says Elephants Cant Dance
72
11B
73
Hard Is SoftSoft Is Hard
74
95
75
What I learned from my years as a hostage
negotiator is that we do not have to feel
powerlessand that bonding is the antidote to
the hostage situation. George Kohlrieser,
Hostage at the Table
76
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
77
11C
78
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
79
Women Leaders Time Has Come Project team
(old) 23 people, all from our company (More or
less amenable to orders)Project team (new) 43
people from 7 companies in 4 countries on 3
continents (Moved only by effective persuasion
and development of common commitment)Worker,
circa 1982 Rote work, incl. most white-collar
work (Amenable to orders, power exercised
directly)Worker, circa 2007 Project work,
team work, mixed-group work, creative work,
co-creation with clientmicroprocessors do the
rote stuff (Commitment is voluntary, leadership
is by developing positive relationships, inducing
creatives to stretch, power exercised
indirectly)
80
TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
81
11d
82
Hard Is SoftSoft Is Hard
83
R.O.I.R.
84
Return On Investment In Relationships
85
11e
86
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.

87
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

88
Im really sorry.
89
12
90
Dont forgetthe it!
91
It suddenly occurred to me
92
It suddenly occurred to me that in the space of
two or three hours he never talked about
cars. Les Wexner            
93
Did one of em ever turn to the other and say
Wow I wonder what unimaginable new tools,
otherwise not possible, will be quickly brought
forth for my 19-year-old daughter Anne because of
this deal?
94
12A
95
Who buys-uses it/1 Sunset for men!
96
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
97
Women are the majority market Fara
Warner/The Power of the Purse
98
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
99
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
100
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?
101
One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
102
12B
103
Who buys-uses it/2 Sunrise for old folks!
104
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
105
7/13
106
2000-2010 Stats18-44 -155 21(55-64
47)
107
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!
108
13
109
gurugate The Gurus fixation with the wrong
stuffNot they, but us.
110
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
111
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
112
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
113
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
114
Dick Kovacevich You dont get better by being
bigger. You get worse.
115
4 Japan2T china2t USA1 Germany
116
Reason!!!Mittelstand
117
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
118
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
119
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
120
Jims Group
121
Jims Mowing 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
122
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
123
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
124
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
125
Mission impossible?36B/98minus 675M/07
126
Market capitalization lost per day, 1998-2007
10,000,000/Day
127
Lived in same town all adult lifeFirst
generation thats wealthy/ no parental
supportDont look like millionaires, dont
dress like millionaires, dont eat like
millionaires, dont act like millionairesMany
of the types of businesses they are in could
be classified as dull-normal. They are
welding contractors, auctioneers, scrap-metal
dealers, lessors of portable toilets, dry
cleaners, re-builders of diesel engines, paving
contractors Source The Millionaire Next
Door, Thomas Stanley William Danko
128
The Fabulous FiveSMEs!Priva
te companies! Dull industries!Productive
churn Built to Rock the World!Laudable
CEOs!
129
14
130
And in conclusion
131
Sir Richards RulesFollow your passions.Keep
it simple.Get the best people to help
you.Re-create yourself.Play.Source Fortune
on Branson
132
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
133
If Not Excellence, What?
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