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Title: excellence. Always. New slides. New stories. July-august 2006.


1
excellence.Always.New slides.New
stories.July-august 2006.
2
New 02 September 2006
3
context
4
The Missing 900K Will the Boat Sink the Water
The Life of Chinas Peasants Chen Guidi and Wu
Chuntaos
5
Schools Techtonic Plates In
"economics, technology, social customs and
globalization." Out Socialism in general ("one
short chapter"). Chinese communism before the
1979 economic revolution ("a sentence"). Mao
("only once--in a chapter on etiquette"). Source
The New York Times, p1, 0901.2006, on reported
on revised history textbooks for high school
seniors in Shanghai, China.
6
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
7
(Practical) Implication?Go for it! (Why
notalternative is slow death, at best)
8
In-Cab UniversityBusiness.
Humanities. Science. Personal growth.Listen
in truck, transmit assignments via cellphone or
Wi-Fi at truck stops225 per credit hour
several big fleets payingStephen Fraser, 38
Rather than driving all day and dreaming about
lottery winnings, Im actually using my mind.
9
Leaders gotta say it!
10
No leader sets out to be a leader per se, but
rather to express him- or herself freely and
fully. That is, leaders have no interest in
proving themselves, but an abiding interest in
expressing themselves. Warren Bennis, On
Becoming a Leader
11
Leaders
12
EnthusiasmEnergyExuberanceVoracious
CuriosityIrritability/Dis-satisfactionRelentless
nessSelf-relianceCloser (Execution)excellence

13
EnthusiasmEnergyExuberanceVoracious
Curiosityartistic inclinationIrritability/Dis-sa
tisfactionRelentlessnessSelf-relianceCloser
(Execution)engagementexcellence
14
Exuberance
15
Exuberance
16
Exuberance The Passion for Life, by Kay Redfield
Jamison I believe exuberance is incomparably
more important than we acknowledge. If, as has
been claimed, enthusiasm finds the opportunities
and energy makes the most of them, a mood of mind
that yokes the two of them is formidable
indeed. The Greeks bequeathed to us one of
the most beautiful words in our languagethe
word enthusiasmen theosa god within. The
grandeur of human actions is measured by the
inspiration from which they spring. Happy is he
who bears a god within, and who obeys it.Louis
Pasteur Exuberance is, at its quick,
contagious. As it spreads pell-mell through a
group, exuberance excites, it delights, and it
dispels tension. It alerts the group to change
and possibility.
17
Exuberance The Passion for Life, by Kay Redfield
Jamison A leader is someone who creates
infectious enthusiasm.Ted Turner Glorious
was a term John Muir would invoke time and
again despite his conscious attempts to
eradicate it from his writing. Glorious and
joy and exhilaration no matter how often he
scratched out these words once he had written
them, they sprang up time and again 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.
18
Exuberance The Passion for Life, by Kay Redfield
Jamison At a time of weakness and mounting
despair in the democratic world, Roosevelt stood
out by his astonishing appetite for life and by
his apparently complete freedom from fear of the
future as a man who welcomed the future eagerly
as such, and conveyed the feeling that whatever
the times might bring, all would be grist to his
mill, nothing would be too formidable or crushing
to be subdued. He had unheard of energy and gusto
and was a spontaneous, optimistic,
pleasure-loving ruler with unparalleled capacity
for creating confidence.Isaiah Berlin on FDR
19
Exuberance The Passion for Life, by Kay Redfield
Jamison 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 He
brought back a real joy to music.Wynton
Marsalis on Louis Armstrong
20
bedrock behaviors
21
Home RunBeing there! No more,
no lessA body can pretend to care, but they
cant pretend to be there. Texas Bix
Bender GEN Melvin Zais on COs and
inspectionsSilence is golden! Utter silence
is golden-er.
22
Period!Shake handsSmileEye contact
23
Period!Shake handsSmileEye contactThank
youFlowersOpen poseROIR
24
Period!Shake handsSmileEye contactThank
youFlowersOpen poseROIR
25
Sorting Out a Problem/ Misunderstanding with an
e-mailDont delay! Its the effort that
counts (LonggtShort)Get personal
(authenticyuck)FLAT OUT APOLOGIZE (no
equivocality)Take more blame than you deserve
26
BG It sounds like you listen to your
instincts.DvF I do. I have a very, very good
relationship with myself.Source Diane von
Furstenberg, Boston Globe on her
staying power, 0806.06
27
By Invitation only!
28
By Invitation!
29
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
30
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 gameit is the game. Lou Gerstner, Who
Says Elephants Cant Dance
31
Game-changing Solutions Core MechanismPSF
(Professional Service Firm model)Wow
Projects (Different vs Better)Brand
You(Distinct or Extinct)
32
Unassailable Value-Added The PSF model
33
The Pursuit of Unassailable Value-Added
34
The Only? Answer PSF (Professional Service
Firm model/The Organizing Principle) Brand
You(Distinct or Extinct/The Talent) Wow!
Projects (Different vs Better/The Work)
35
The Only? Answer PSF Brand YouWow!
Projectsdamn it!
36
PSF BY WP VA
37
PSF BY WP DD E UVA
38
PSF BY WP DD E UVA
39
PSF (Professional Service Firm) BY (Brand You)
WP (WOW Projects) DD (Dramatic Difference)
E (Excellence) UVA (Unassailable
Value-Added)
40
The Only? Answer PSF (Professional Service
Firm model/The Organizing Principle) Brand
You(Distinct or Extinct/The Talent) Wow!
Projects (Different vs Better/The Work)
41
The New Enterprise Value-Added Equation/Mark2006
(1) 100 WOW PROJECTS (New Org DNA/The
Work) (2) Incredible TALENT Transformed
into (3) Entrepreneurial BRAND YOUs and (4)
Launched on Awesome QUESTS FOR EXCELLENCE
(5) Internal Rockin PSFs (Staff Depts. Morphed
into Wildly Innovative Professional Service
Firms) (6) Which Coalesce to Transform the
FEVP/Fundamental Enterprise Value Proposition
from Superior Products Services to
ENCOMPASSING SOLUTIONS GAME-CHANGING CLIENT
SUCCESS
42
Big Idea/Meta-Idea/Premier Engine of Value
Added(1) The Talent Best Roster of
Entrepreneurial-minded Brand Yous.(2) The
(Virtual) Organization Internal or External
PSF/Professional Service Firm working with
Best Anywhere Engine of Value Added through
the Application of Creative Intellectual
Capital(3) The Work Product Game Changer/
Gaspworthy WOW Projects
43
Static/ImitativeIntegrity.Quality.Continuous
Improvement.Superior Service (Exceeds
Expectations.)Completely Satisfactory
Transaction.Smooth Evolution.Market
Share.Dynamic/DifferentDramatic
Difference!Disruptive!Insanely Great!
(Quality)Life-(Industry-)changing
Experience!Game-changing!WOW!Surprise!Delight!
Breathtaking!Punctuated Equilibrium!Market
Creation!
44
EXCELLENCE Flawless EXECUTION Continuous
IMPROVEMENT Brilliantly Trained
PEOPLEGamechanging QUESTS WEIRD Rosters
GASPWORTHY Results
45
Itinerant Potential Machines.
46
Re-imagine Tomorrows Organizations Itinerant
Potential Machines.
47
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
48
I wanted GE to operate with the speed,
informality, and open communication of a corner
store. Corner stores often have strategy right.
With their limited resources, they have to rely
on laser-like focus on doing one thing very
well. Jack Welch/Fortune/04.05
49
TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal if youre
stretching. Want to make their bones in the
revolution. Love the new technologies. Well
rewarded. Dont plan to be around 10 years from
now.
50
TALENT POOL PLUS. Seek out and work with
worlds best as needed (its often needed). We
aim to change the world, and we need gifted
colleagueswho well may not be on our payroll.
51
BRASSY-BUT-GROUNDED-LEADERSHIP. Say I dont
knowand then unleash the TALENT. Have a vision
to be DRAMATICALLY DIFFERENTbut dont expect the
co. to be around forever. Will scrap pet
projects, and change course 180 degreesand take
a big write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YET-COME. GREAT
REGRETS AT TIME WASTED ON ME TOO
PRODUCTS AND PROJECTS.
52
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
Visionary leaders matched by leaders with
shrewd business sense HOW DO WE TURN A PROFIT
ON THIS GORGEOUS IDEA? Appreciate market
creation as much as or more than market share
growth. ARE INSANELY AWARE THAT MARKET LEADERS
ARE ALWAYS IN PRECARIOUS POSITIONS, AND THAT
MARKET SHARE WILL NOT PROTECT US, IN TODAYS
VOLATILE WORLD, FROM THE NEXT KILLER IDEA AND
KILLER ENTREPRENEUR. (Gates. Ellison. Venter.
McNealy. Walton. Case. Etc.)
53
ALLIANCE MANIACS. Dont assume that the best
resides within. WORK WITH A SHIFTING ARRAY OF
STATE-OF-THE-ART PARTNERS FROM ONE END OF THE
SUPPLY CHAIN TO THE OTHER. Including vendors
and consultants and especially PIONEERING
CUSTOMERS who will pull us into the future.
54
TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet at Internet speed.
Reluctant to work with those who dont share
this (radical) vision.
55
POTENTIAL MACHINES-ORGANISMS. Dont know whats
coming next. But are ready to jump at
opportunities, especially those that
challenge-overturn our own way of doing things.
56
In-Cab UniversityBusiness.
Humanities. Science. Personal growth.Listen
in truck, transmit assignments via cellphone or
Wi-Fi at truck stops225 per credit hour
several big fleets payingStephen Fraser, 38
Rather than driving all day and dreaming about
lottery winnings, Im actually using my mind.
57
Small Biz
58
SummaryWallopWalMart16Or Why its so
absurdly easy to beat a GIANT Company
59
The Small Guys Guide Wallop
WalMart16 Niche-aimed. (Never, ever all
things for all people, a mini-WalMart.) Never
attack the monsters head on! (Instead steal niche
business and lukewarm customers.) Dramatically
Different (La Difference ... within our
community, our industry regionally, etc is as
obvious as the end of ones nose!) (THIS IS WHERE
MOST MIDGETS COME UP SHORT.) Compete on
value/experience/intimacy, not price. (You aint
gonna beat the behemoths on cost-price in 9.99
out of 10 cases.) Emotional bond with Clients,
Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!
)
60
This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Game Boy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to
follow the leader is this The leader is the
leader precisely because he did something
remarkable. And that remarkable thing is now
takenso its no longer remarkable when you
decide to do it. Seth Godin, Fast
Company/02.2003
61
The Small Guys Guide Wallop WalMart16
Hands-on, emotional leadership. (We are a
great cool intimate joyful dramatically
different team working to transform our Clients
lives via Consistently Incredible
Experiences!) A community star! (Sell
local-ness per se. Sell the hell out of it!) An
incredible experience, from the first to last
momentand then in the follow-up! (These guys
are cool! They get me! They love me!) DESIGN
DRIVEN! (Design is a premier weapon-in-pursuit-o
f-the sublime for small-ish enterprises,
including the professional services.)
62
The Small Guys Guide Wallop WalMart16
Employer of choice. (A very cool, well-paid
place to work/learning and growth experience in
at least the short term marked by notably
progressive policies.) (THIS IS EMINENTLY
DO-ABLE!!) Sophisticated use of information
technology. (Small-ish is no excuse for small
aims/execution in IS/IT!) Web-power! (The Web
can make very small very big if the
product-service is super-cool and one
purposefully masters buzz/viral
marketing.) Innovative! (Must keep renewing and
expanding and revising and re-imagining the
promise to employees, the customer, the
community.)
63
The Small Guys Guide Wallop WalMart16
Brand-Lovemark (Kevin Roberts) Maniacs!
(Branding is not just for big folks with big
budgets. And modest size is actually a Big
Advantage in becoming a local-regional-niche
lovemark.) Focus on women-as-clients. (Most
dont. How stupid.) Excellence! (A small player
per me has no right or reason to exist unless
they are in Relentless Pursuit of Excellence. One
earns the rightone damn day and client
experience at a time!to beat the Big Guys in
your chosen niche!)
64
The Fab Five What Every Small Biz Needs Success
DDMMPR/ "D-squared, M-squared, PR DramDiff
Money-Financial Acumen Good Marketing
Instincts Stellar People Resilience
65
What Ive Learned about Small BusinessTom
Peters/26June2006
66
Passion for PRODUCT.OBSESSION With Product.LOVE
The Product.Aim To Be ONLY ONES WHO DO WHAT WE
DO.Keep ADDIN Stuff.Invest UNWISELY in
RD.Reside Permanently In The DISCOMFORT
Zone.Unhealthy PARANOIA Is A Good Thing.Add
Clients That PUSH-PULL.SELL. SELL. SELL.
SELL.Go For Broke CUSTOMER CONTACT
PEOPLE.PERFECTION Customer Contact People.Hire
for ATTITUDE.INVITE On An Adventure. GREAT
CFO/Biz Guy-Gal. NASTY CFO/Biz
Guy-Gal.QUADRANGULAR LEADERSHIP
Visionary-Talent Fanatic-Project Manager-I.P.M.
(I.P.M. Inspired Profit Mechanic)
67
More _at_ Moore
68
GREAT Logo.DESIGN! OVERDO Marketing
Materials.WOMEN Roar. WOMEN Rule. WOMEN
Buy.Diversity Be RELENTLESS. Cut And
RUN.Product Includes-Features the
PACKAGING.Define Your DRAMATIC DIFFERENCE
(R.P.O.V.8)Best STORY Wins.DRESS For
Success.First Goal AMUSE Yourself.Know
YOURSELF. DONT Do Stuff You Hate.
Over-invest In RELATIONSHIPS. (R.O.I.R.
Return On Investment in Relationships)SYSTEMATICA
LLY Manage Relationships.Work The SUPPORT
PEOPLE In Client Orgs.
69
BLOG As If Your Life Depended On
It.SOPHISTICATED Use Of Infotech.RESPONSE To
Problems.Make Em PAY.CLOSE The Sale. Invest
BIGTIME In PR.Media FRIENDLY.Live-To-SCHMOOZE.F
un/Laughter MBWA Stay In Touch.You
Must Be The Change You Wish To See In The
World/GANDHI5K For 5M.Your CALENDAR Never
Lies.OUT Pastels. IN Technicolor
70
JUST SAY NO TO C.E.O. CIO/Chief Innovation
Officer. CSO/Chief Sales Officer. CWO/Chief Wow
OfficerEXCELLENCE Is Very Cool.
MICRO-MANAGE Your Reputation.Wear Your
Integrity On Your SLEEVE.KEEP Your
Promises.EXECUTION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!A Man Without A Smiling Face MUST NOT
Open His Shop.RECOGNITION! Work HARD, Not
Smart.Insanely Great. THE STANDARD.
71
Tom/2006/Q97-Q100Study more.Renew more.Tailor
more.Offer more.Listen more.Market
more.Practice more.Challenge more.Socialize
more.Smile more.Follow-up more.Plan execution
more.Cost control more.
72
A man without a smiling face must not open a
shop. Chinese Proverb
73
A man without a smiling face must not open a
shop. Chinese Proverb
74
Its always showtime. David DAlessandro,
Career Warfare
75
Small Giants Companies That Choose To Be Great
Instead Of Big by Bo Burlingham
76
The SmallMart Revolution How Local Businesses
Are Beating Local Competition Michael Shuman
77
I HEREBY PLEDGE When asked, What are some
examples of companies stepping up to todays
challenges? I will NEVER AGAIN offer an
example of a Giant Company instead Ill refer to
Cirque du Soleil, Donnellys Weatherstrip
Service, 3K tanning salons, 10.6M women-owned
businesses (or the typically female recipients of
micro-lending) There is more to Biz Life
than Giant Cos LOTS MORE that hidden 99
78
Women
79
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?
80
Im not a fashion historian. A woman is a woman.
I do my best. I follow my instinct. I watch
women. My company is 97 percent women. Diane
von Furstenberg, Boston Globe on her staying
power, 0806.06
81
Design.Again.
82
All Tingly!EMS rain shell (zipper)Columbia
walking shoes (overall design, yellow stripe in
bottom of sole)
83
spellbinding experience
84
The 2-cent Candy Redux (From Beltramos to
Singapore.)
85
And You?Stockholm blanket at outside table
(August)
86
Grant
87
U.S. Grant, painter
88
tragedy
89
Ford, GM and Chrysler do not just make cars
expensively they make bad cars expensively.
Investec analyst, International Herald, 0805.06
90
Health
91
REALLY Saving Lives Exercise!!!!Wash your
hands!!!!Sunscreen!!!! Drop transfatsNo high
fructose corn syrupModest quality improvement
schemesin acute-care settingsEMR/DSSImmunizatio
nDDTIncreased GDP
92
Saving lives 101Hard is Soft is Hard
93
Dock fat docs.Malpractice suits for
administrators/facilities with no EMRs.
94
MESSY RULES DEAL WITH ITLIMITS TO STRATEGY
95
The Mess Is the Message! Period!
96
Wanted Corporate Senility! Desperately!
The problem is never how to get new, innovative
thoughts into your mind, but how to get the old
ones out. Dee Hock
97
People.Product.Persistence.Experimentation.Exe
cution.Enthusiasm.Excellence.
98
People.Product.Persistence.Experimentation.Exe
cution.Enthusiasm.Excellence.Senility.
99
Pee-squared Cee Eee-squared X-squared/PPCEEXX
PeoplePersistenceCustomersEnthusiasmEnergyeXe
cutioneXcellence
100
Pee-squared Cee Eee-squared X-squared/PPCEEXX
PeoplePersistenceCustomersEnthusiasmEnergyeXe
cutioneXcellenceSenility
101
People.Product.Passion.Relentless.Re-invent.E
xperimentation.Execution.Enthusiasm.Excellence.
102
People.Product.Passion.Relentless.Re-invent.E
xperimentation.Execution.Enthusiasm.Excellence.
Senility.
103
Revolution-Transformation. (No long runs on
Broadway-Senility.)SoftgtHard. (Culture or
Bust.)Execution-Action. (DogtThink.)Clean
Sheet of Paper. (Web2.0, Transparency, New Org
FormItinerant Potential Machines.)PSF-Brand
You-Wow Projects.Up-Up-Up the VA Ladder.
(Gamechanging Solutions-Eyepopping
Experiences-Dream Merchants-Lovemarks.)Weird.
(Innovation Easy.)Energy-Enthusiasm-Relentles
sness.Excellence. Always.
104
The most thoughtful and articulate strategies
tend to come from big banks. But their actual
results seldom bear that out. When you walk the
streets and look at whats happening, the gap
between strategy and execution becomes obvious.
We have to see with our own eyes what customers
are experiencing. Thomas Brown, CEO, Second
Curve Capital hedge fund , on their annual
branch huntMr Browns favorite experience
came at a Chase branch where he opened a checking
account. When a Chase employee asked where he
currently did business, he said he was a Citibank
customer. Im surprised you want to switch, she
replied matter of factly, I have my account at
Citibank. Bill Taylor, Get Out of That Rut
and Into the Shower, NYT, 0813.06
105
Apparently our society, not unlike the Greeks
with their Delphic oracles, takes great comfort
in believing that very talent seers removed
from the hurly-burly world of reality can tell
foretell coming events. Len Sayles/Columbia
106
Recently I asked three 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)
107
Nothing is more dangerous in war than
theoreticians. Marshall PetainSource John
Mosier, The Blitzkrieg Myth, ,War as
Pseudoscience 1920-1939
108
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
109
MESSY RULES science?
110
First-level Scientific SuccessThe smartest guy
in the room winsOr
111
First-level Scientific SuccessFanaticismPersist
ence-Dogged TenacityPatience (long
haul/decades)-Impatience (in a hurry/do it
yesterday)PassionEnergyRelentlessness
(Grant-ian) EnthusiasmDriven (nuts!) (Brutal?)
CompetitivenessEntrepreneurialPragmatic
(R.F!A.)Scrounge (gets the logistics-infrastruc
ture bit)Master of Politics (internal-external)T
actical GeniusPursuit of (Oceanic)
Excellence!High EQ/Skillful in Attracting
Keeping Talent/MagneticProlific (ground up more
pig brains)EgocentricSense of
History-DestinyFuturistic-In the
MomentMono-dimensional (Work-life balance?
Ha!)Exceptionally IntelligentExceptionally
Clever (methodological shortcuts/methodological
genius)Luck
112
First-level Scientific Success/Short
FormScientific Success (Nobel-level) Genius
Execution Master of Soft Skills Enthusiasm
Magnetism Destiny (sense of) Energy
113
MESSY RULES Blitzkrieg?
114
Blitzkrieg?
115
Case Lesson LearnedPlanned innovation is
possible, is cool, is effective. Write it up.
Publish.
116
Case RealityGermans cross Meuse into France.
Whoops French intelligence completely drops the
ball. (Loses track of the Germansno
kidding.)Germans keep advancing outrun supply
lines no land-air co-ordination. Hitler orders
advance stopped.General never gets the word.
General marches to Paris, virtually
unopposed.Germans shocked.After the fact,
Germans label it Blitzkrieg.
117
Case Lessons LearnedDo something.Get lucky.
Attribute luck to superior planning.Get medals.
118
Smashing Conventional Wisdom Blitzkrieg in fact
emerged in a rather haphazard way from the
experience of the French campaign, whose success
surprised the Germans as much as the French. Why
otherwise did the High Command try on various
occasions, with Hitlers backing, to slow the
panzers down? The victory in France came about
partly because the German High Command
temporarily lost control of the battle. The
decisive moment in this process was Guderians
decision to move immediately westward on 14 May,
the day after the Meuse crossing, wrenching the
whole of the rest of the army along behind
him. messed up traffic, little close air
support, random heroics by some small bits of
Guderians forces, Guderian not a disciple of
the WWI-derived strategy of indirect
approach Source Julian Jackson, The Fall of
France
119
What We Know For Sure About InnovationBig
mergers by large dont workScale is
over-ratedStrategic planning is the last refuge
of scoundrelsFocus groups are counter-productive
Built to last is a chimera (stupid)Success
killsForgetting is impossibleRe-imagine is a
charming ideaOrderly innovation process is an
oxymoronic phrase ( Believed only by morons
with ox-like brains)Tipping points are easy to
identify long after they will do you any
goodFacts arentAll information making it to
the top is filtered to the point of danger and
hilaritySuccess stories are the illusions of
egomaniacs (and gurus)If you believe the
memoirs of CEOs you should be institutionalizedH
erd behavior (XYZ is hot) is ubiquitous and
amusingTop teams are DittoheadsCEOs have
little effect on performanceExpert prediction
is rarely better than rolling the dice
120
Sustainable entrepreneurship
121
Excellence The SE22 Origins of Sustainable
Entrepreneurship
122
SE22/Origins of Sustainable
Entrepreneurship 1. Genetically disposed to
Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab,
Starbucks, Oracle, Sun, Fox, Stanford
University, MIT) 2. Perpetually determined to
outdo oneself, even to the detriment of
todays winners (Apple, Cirque du Soleil,
Nokia, FedEx) 3. Treat History as the Enemy
(GE) 4. Love the Great Leap/Enjoy the Hunt
(Apple, Oracle, Intel, Nokia, Sony) 5. Use
Strategic Thrust Overlays to Attack Monster
Problems (Sysco, GSK, GE, Microsoft) 6. Establish
a Be on the COOL Team Ethos. (Most PSFs,
Microsoft) 7. Encourage Vigorous
Dissent/Genetically Noisy (Intel, Apple,
Microsoft, CitiGroup, PepsiCo) 8. Culturally as
well as organizationally Decentralized
(GE, JJ, Omnicom) 9. Multi-entrepreneurship/Many
Independent-minded Stars (GE, PepsiCo)
123
HPs Big Duh!Decentralize (90B)Undo
MatrixAccountabilitySource HP Says
Goodbye To Drama/BW/09.05/re Mark Hurds first
5 months
124
DePuySpine/JJ70/3game-changers!Still
decentralized after all these years!
125
No Need for Economies of Scale Illinois Tool
Revs Up Innovation by Keeping Its 655 Units
Separate and Focused Source Headline, BW,
1031.05 (commodity producer RD 1 Top 100
patent recipient66th in 04) (12B rev in 04
CEO David Speer focus, lean, customer intimacy,
entrepreneurial, employee participation)
126
Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
127
SE22/Origins of Sustainable
Entrepreneurship 10. Keep decentralizingtireles
s in pursuit of wiping out Centralizing
Tendencies (JJ, Virgin) 11. Scour the world for
Ingenious Alliance Partners especially
exciting start-ups (Pfizer) 12. Acquire for
Innovation, not Market Share (Cisco, GE) 13.
Dont overdo pursuit of synergy (GE, JJ, Time
Warner) 14. Execution/Action Bias Just do it
dont obsess on how it fits the business
model. (3M, J J) 15. Find and Encourage and
Promote Strong-willed/ Hyper-smart/Independe
nt people (GE, PepsiCo, Microsoft) 16. Support
Internal Entrepreneurs (3M, Microsoft) 17. Ferret
out Talent anywhere/No limits approach to
retaining top talent (Virgin, GE, PepsiCo)
128
SE22/Origins of Sustainable
Entrepreneurship 18. Unmistakable Results
Accountability focus from the get-go to the
grave (GE, New York Yankees, PepsiCo) 19. Up or
Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios
in general) 20. Competitive to a fault! (GE, New
York Yankees, News Corp/Fox,
PepsiCo) 21. Bi-polar Top Team, with Unglued
Innovator 1, powerful Control Freak 2
(Oracle, Virgin) (Watch out when 2 is
missing Enron) 22. Masters of Loose-Tight/Hard-no
sed about a very few Core Values,
Open-minded about everything else (Virgin)
129
HOW THE COAST GUARD GETS IT RIGHT Headline,
Time, 10.31.2005AutonomyFlexibilityPerhaps
the most important distinction of the Coast
Guard is that it trusts itself
130
ORGANIZATION IS THE GUERRILLA/ NETWORK
ADVANTAGE
131
ORGANIZATION STRATEGY THE GUERRILLA
ADVANTAGE Tom Peters/04August2006
132
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
133
New Era of War, and U.S. Isnt Ready Conflicts
of Future Nations vs. Networks Headline/p1/
International Herald Tribune /31.07.2006Opening
Pound for pound and pounding, the Israeli
military is one of the worlds finest. But
Hezbollah, with the discipline and ferocity of
its fighters and its ability to field advanced
weaponry, has taken Israel by surprise. Now that
surprise has rocketed back to Washington and
across the U.S. military.We are into the
first great war between nations and networks.
This proves the growing strength of networks as a
threat to American national security. John
Arguilla, USNPGS, from Net Warfare 101
134
Small units agile lethal invisible
guerrilla network warfare distributed
dispersed mobile .. Flat hierarchy
improvisational etc.
135
ORGANIZATION STRATEGY THE GUERILLA
ADVANTAGE Agile. (Sluggish.) Wily. (Big
footprint.) Always moving. (Seldom moving.)
Brownian motion per se bewilders the enemy.
(Blind despite NewTech.) Momentum comes from
small wins. (Small wins invisible, too small
scale to execute.) Goal is converts, not
territory. (Protect territory.) Offense.
(Defense.) Travel light very high tooth to
tail ratio. (Travel heavy, low tooth to tail.)
Live off the land. (Tortuous supply chain.)
UNPREDICTABLE BEHAVIOR NEARLY RANDOM. (VERY
PREDICTABLE LONG PLANNING CYCLE OBSERVABLE
FOOTPRINT.) Dug in but not dug in. (Dug in but
vulnerable.) No HQ floating HQ. (Big HQ at
home and away.) Few fixed assets. (Mostly
fixed assets.) Scroungers mentality.
(Methodical complex.) Mobile communications.
(Fixed communications.) Everything, including
people, disposable. (Tight asset management,
materials humans.) No fortress to guard.
(Big fortresses which must be guarded.)
Replaceable leaders. (Formal, rule-based
hierarchy.) Self-healing network, like
Internet. (Network far more fixed.) Hackers
mentality. (Planners mentality.)
DECENTRALIZED. (CENTRALIZED.) KIAs are
celebrated. (KIAs are the ultimate loss.)
Natural reorganizations following cell division
model. (Methodical, high-friction change.)
Few formal layers. (Lotsa formal layers.) Few
rules. (Lotsa rules.)
136
ORGANIZATION STRATEGY THE GUERILLA
ADVANTAGE Management By Vision. (Management
by law-rule books.) Miniaturized but deadly
weapons. (Fixed weapons.) Invent your own
arsenal. (Gazillion-year weapons acquisition
cycle.) Multiplier impact by spreading
confusion. (Need set-piece victories to satisfy
constituents.) Passion. (Supportive at the
level of car decals.) Little value on current
rules. (Value of life paramount.) Ad hoc RFA
or FFF. (R.A.F. / Ready. Aim. Aim. Aim. Fire.)
SIMPLE PHILOSOPHY THAT BINDS, FLEXIBLE ORG,
FLEXIBLE OPS. (COMPLEX PHILOSOPHY, INFLEXIBLE
ORG, INFLEXIBLE OPS.) Different time frame a
1,000 year conflict. (Need to show progress
daily.) Attract youth with more energy and zeal
than good sense. (Mature and inflexible and
cautious and methodical.) Minimum need to
spin as easy to spin a loss as a win. (Battle
plans designed distorted diluted to produce
spin per se.) Ad hoc. (Due process.)
Media looks for wins media values small wins.
(Media fixated by SNAFUs small wins beneath the
radar.) Win when enemy over-reacts. (Lose if
over-react.) Ubiquitous webs. (Ubiquitous
bureaucracy.) Recruit, support, impact follows
Virus Model recruit via Buzz. (All is formal.)
Value of conventional scale declining
exponentially. (Still citizens of a big is
beautiful age.) Virtually no way to lose a
loss is a win as much or more than a win is a
win. (Virtually no way to win a win is often a
loss as much as a loss is a loss.)
137
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
138
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
139
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
140
If things seem under control, youre just not
going fast enough. Mario Andretti
141
Ready.Fire.Aim.Ross Perot
142
Crazy Times Call for Crazy Organizations
Subtitle, The Tom Peters Seminar (1993)
143
Inflexibility and mass are favored in static
times. Flexible and ephemeral are favored in
chaotic times.
144
Stephen Jay Gould Bacteria rule! Sizeable cases
e.g. humans are virtually irrelevant anomalies.
145
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 between 1917 and 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
146
Sluggish Obese Unimaginative More Sluggish
More Obese More Unimaginative Even More
Sluggish Even More Obese Even More
Unimaginative Nissan Renault GM
Innovative Challenger for Toyota????
147
??????????????Crappy Management (GM)
Arrogant-Overstretched Management (Carlos G)
Great Management
148
As If Germs and Bombs on the Belly were Not
Enough!Cyberwar techniques can be treated as
weapons of mass destructionSource Chinese
Peoples Liberation Army Daily (from Harpers,
08.06)
149
ACTION!ALWAYS!
150
Execution is strategy. TP (1983)Operations
is policy. Fred Malek (1977)
151
ThinkvsDo
152
TP No plan, total accountabilityTK Perfect
plan, no accountabilityLG IBM
153
AgtBvsBgtA
154
CK Chesterton How do I know what I think until
I see what I say? Reporter Mr Drucker, why
are you still giving speeches at 90? PD How
else can I figure out what Im thinking?
155
Power of the Small Win/ String of (TP/1977
KWEJW)
156
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
157
My only goal is to have no goals. The goal,
every time, is that film, that very moment.
Bernardo Bertolucci
158
PlannersvsSearchers
159
Where planners raise high expectations but take
no responsibility for meeting them, searchers
prefer to work case-by-case, using trial and
error to tailor solutions to individual problems,
fully aware that most remedies must be
homegrown. WSJ, 0822.06 (on malaria
eradication, and hedge fund manager Lance
Laifer)Planners WHO, World Bank, etc see
poverty as a technical engineering problem that
their answers will solve. William Easterly
All sorts of approaches need to be tried and we
need feedback. Roger Bate
160
PlannersvsSearchers
161
Find em!
162
Somewhere in your organization, groups of people
are already doing things differently and better.
To create lasting change, find these areas of
positive deviance and fan the flames.
Richard Pascale Jerry Sternin, Your
Companys Secret Change Agents, HBR
163
Some people look for things that went wrong and
try to fix them. I look for things that went
right, and try to build off them. Bob Stone (Mr
ReGo)
164
Premise Ordering Systemic Change is a Waste of
Time!
165
Demos! Heroes! Stories!
166
Demo StoryA key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner, Leading Minds An
Anatomy of Leadership
167
REAL Org Change Demos Models (Model
Installations, ReGo Labs)/ Heroes (mostly
extant burned to reinvent govt)/ Stories
Storytellers (Props!)/ Chroniclers (Writers,
Videographers, Pamphleteers, Etc.)/ Cheerleaders
Recognition (PosgtgtNeg, Volume)/ New Language
(Hot/Emotional/WOW)/ Seekers (networking mania)/
Protectors/ Support Groups/ End RunsPull
Strategy (weird alliances, weird customers,
weird suppliers, weird alumnae-JKC)/ Field Real
People Focus (3 COs) (long way away)/ Speed
(O.O.D.A. Loopsact before the bad guys can
react)C.f., Bob Stone, Lessons from an Uncivil
Servant
168
JKC1. Scour for renegades
wine dine.2. Go outside for funds.
169
Build a School on top of a school (The Parallel
Universe Strategy)
170
My mission is that of a molemy existence only
to be known by upheavals. Jan Morris, Fishers
Face, Or, Getting to Know the Admiral First Sea
Lord John Fisher
171
Never doubt that a small group of committed
people can change the world. Indeed it is the
only thing that ever has. Margaret Mead
172
Stories Paint me a picture Story
infrastructure Demos Quick prototypes
Experiments Heroes Renegades Skunkworks
Demo Funds V.C. G.M. Roster Portfolio
Stones Rules JKCs Rules
173
Think about It!?Innovation Reaction to the
PrototypeMichael Schrage
174
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!)
175
Innovation. Easy.
176
Keep Austin Weird(Kirk Watson)
177
ONE WORD
178
ONE WORD
179
ONE WORD Drill more wells R.F.A. Accountability
Realism Decentralization Execution Action
bias Most mistakes wins 615am Energy Enthusiasm D
ogtPlan ActgtThink BehaviorgtAttitude Passion
180
ONE WORD Emotion Intuition Sell O.O.D.A. Integri
ty Weird Appreciate Celebrate Respect Listen Wande
r Calendar rules Calendar doesnt lie To
dont Max priorities 3
181
ONE WORD 5 min/5,000 miles Women Decency Grace I
nnovate or Die Re-imagine Fight irrelevance Just
Do It Care (You Must) Flowers (Say It With) Im
sorry Thank You Insanely Great Silence 2-cent
candy
182
ONE WORD MBWA Why? PSF Wow! ! (red) Buy a
Mirror Know thyself Invite Quest Adventure Talent
Brand You Lovemark Experience Dreamketing
183
ONE WORD Gasp-worthy Insanely
great Differentgtbetter Impactgtlongevity Dramatic
Difference Only ones do what we
do Smile 798 7-7-7 Design rules Beautiful
Systems 450/8 VP S.O.U.B. Women buy all Women
lead better
184
ONE WORD Boomers-geezers own all 2.6/21 25 25 3,
000,000,000 (900,000,000) 26 minutes 43
hours Perception Is All There Is Enthusiasm The
Ultimate Virus
185
EXCELLE ALWAYS.
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