excellence. all you need to know

LONGLONG

Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEEXCELLENCE. ALWAYS.. ALWAYS.

1313thth Annual World Islamic Banking Conference Annual World Islamic Banking ConferenceKingdom of Bahrain.11 December 2006Kingdom of Bahrain.11 December 2006

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

EXCELLENCE.EXCELLENCE.

ALL YOU NEED TO KNOW. ALL YOU NEED TO KNOW.

““20-20-minute minute

rule”rule” —Craig Johnson/30 yrs

““I called 60 CEOs in the I called 60 CEOs in the first week of the year] to first week of the year] to

wish them happy New wish them happy New Year. …”Year. …” —Hank Paulson, former CEO,—Hank Paulson, former CEO,

Goldman Sachs Goldman Sachs

Source: Fortune, “Secrets of Greatness,” 0320.05

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

EXCELLENCE. THE EXCELLENCE. THE

MANDATE.MANDATE.

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most responsive one most responsive to changeto change.”.” —Charles Darwin

“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 Buy a very large one very large one and just waitand just wait.”.”

—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Forbes100” from 1917 to 1987: 3939 members members

of the Class of ’17 were alive in ’87; 18 in ’87 of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly F100; 18 F100 “survivors” significantly

underunderpperformederformed the market; the market;

just just 22 (2%), (2%), GEGE & & KodakKodak, ,

outoutpperformederformed the market from the market from 1917 to 1987. 1917 to 1987.

S&P 500 from 1957 to 1997: 7474 members of the Class of ’57 were alive

in ’97; 1212 (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

Welcome to the “Club of Shattered Dreams”:

Of Korea’s Top 100Top 100 companies

in 1955, only 77 were still on the list in 2004. The 1997 crisis

“destroyed halfhalf of Korea’s

3030 largest conglomerates.”

Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

S&P Stability Ratings*

1985 2006

Low Risk 41% Low Risk 41% 13%13% Average Risk 24% 14%

High RiskHigh Risk 35% 35% 73%73%

*Likelihood of stable long-term earnings growth

Source: Fortune (2 October 2006)

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Wal*Mart … Dell … Intel Dell … Intel

… Home … Home Depot … Depot …

Microsoft … Microsoft … GEGE

The The lastlast word: word: There There

is is nono last last word.word.

EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.

BASICS.BASICS.K.I.S.S.K.I.S.S.

Raging Success Raging Success == P P-SQUARED-SQUARED. .

CC. . EE-CUBED-CUBED..

PPeople.eople.PProduct.roduct.CClients.lients.

EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.

EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.

BASICS.BASICS.K.I.S.S.K.I.S.S.

“One bank is currently claiming to …

‘leverage its global footprint

to provide effective financial

solutions for its customers by providing a gateway to

diverse markets.”

—Charles Handy

“I assume that it is just saying that it is

there to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.” —Charles Handy

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

The Peters Principles: Enthusiasm.Enthusiasm.

Emotion. Emotion. Excellence.Excellence. Energy. Energy. Excitement. Service. Growth. Excitement. Service. Growth.

Creativity. Imagination. Vitality. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Joy. Surprise. Independence. Spirit. Community. Limitless Spirit. Community. Limitless human potential. Diversity. human potential. Diversity. Profit.Profit. Innovation. Design. Innovation. Design.

Quality. Entrepreneurialism. Quality. Entrepreneurialism. Wow.Wow.

Enterprise* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, ,

creativecreative, , entrepreneurialentrepreneurial endeavor that elicits endeavor that elicits maximum concerted maximum concerted human potential in human potential in the the wholehearted wholehearted serviceservice of others of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

EXCELLENCE.EXCELLENCE.PORTER.PORTER.

DRUCKER.DRUCKER.BENNIS.BENNIS.PETERS.PETERS.

Importance of Success Factors by VariousImportance of Success Factors by Various “Gurus”/(Unreliable) Estimates by Tom Peters“Gurus”/(Unreliable) Estimates by Tom Peters

StrategyStrategy SystemsSystems PeoplePeople PassionPassion

Porter Porter 50%50% 2020 20 10 20 10

Drucker 25% Drucker 25% 3535 25 15 25 15

Bennis 25% 20 30 Bennis 25% 20 30 2525

Peters 15% 20 Peters 15% 20 4040 2525

EXCELLENCE. EXCELLENCE.

DEFINED.DEFINED.AGENDA. AGENDA. SETTER.SETTER.

Great Companies … SETSET THETHE

AGENDAAGENDA.*

(PERIOD.)

* “disturb the sleep of …

AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers

US Steel … Ford … US Steel … Ford … ToyotaToyota … Sears … … Sears … GM … ITT …GM … ITT … The Gap …The Gap … Limited …Limited …

Wal*MartWal*Mart …… TescoTesco …… P&G … 3M …P&G … 3M … IntelIntel … IBM …… IBM … AppleApple …… NokiaNokia ……

CiscoCisco … … DellDell … MCI … Sun …… MCI … Sun … MicrosoftMicrosoft …… GoogleGoogle … Enron …… Enron …

SchwabSchwab …… GEGE … Laker … … Laker … Southwest Southwest … People Express …… People Express … OgilvyOgilvy …… VirginVirgin

…… eBayeBay …… AmazonAmazon … Sony… Sony …… AmgenAmgen …… BMWBMW … CNN … … CNN … NikeNike

TP#1*:

NetscapeNetscape!!

*Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you

rather to be able to tell someone—e.g., grandchild—that you worked?)

Built to Lastvs

Built Built to to ChangeChange//Rock Rock the the

WorldWorld


DEFINED.DEFINED. X06 X06

X.06X.06Tom Peters/Excellence.2006/1210.2006Tom Peters/Excellence.2006/1210.2006

X.06.23X.06.23:: Whole Foods Markets Whole Foods Markets …… Starbucks Starbucks … … Wegmans Wegmans …… Commerce Commerce Bank Bank …… John Laing Homes John Laing Homes …… Apple Apple ……

London Drugs London Drugs …… Griffin Hospital/ Griffin Hospital/ Planetree Alliance Planetree Alliance …… The Met The Met

School/Big Picture School/Big Picture …… Carl Sewell Carl Sewell …… Progressive Insurance Progressive Insurance …… Stanford Stanford

women’s sports women’s sports …… Stanford D-School Stanford D-School …… HSM HSM …… Washington Speakers Bureau Washington Speakers Bureau … …

Build-A-Bear Build-A-Bear …… RE/MAX RE/MAX … … Donnelly’s Donnelly’s Weather Strip Service Weather Strip Service … … Jim’s Group Jim’s Group ……

Cirque du Soleil … Cirque du Soleil … (U.S. Grant)(U.S. Grant) …… (Horatio Nelson) (Horatio Nelson) …… (Stew Leonard’s)(Stew Leonard’s) … …

(DeMar Plumbing) … (FBR/Friedman (DeMar Plumbing) … (FBR/Friedman Billings Ramsey)Billings Ramsey)

Cirque du Cirque du SoleilSoleil

And the Winner is …

1. 1. Audacity of VisionAudacity of Vision2. 2. Innovation/R&D/DesignInnovation/R&D/Design3. 3. Talent Acquisition &Talent Acquisition & Development Development4. Resultant “Experience”4. Resultant “Experience”5. Strategic Alliances5. Strategic Alliances6. Operations6. Operations7. Financial Management7. Financial Management8. Overall/Sustaining Excellence8. Overall/Sustaining Excellence9. “Wow!”9. “Wow!”10. 10. Lovemark!Lovemark!

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a

way out.” “No Cloning.” way out.” “No Cloning.” “‘Reinvent the brand’ with “‘Reinvent the brand’ with each new show.” “A typical each new show.” “A typical

day at the office for me day at the office for me begins by asking, ‘begins by asking, ‘What is What is impossible that I am going impossible that I am going to do today?’”to do today?’” —Daniel Lamarre, —Daniel Lamarre,

president,president, Cirque du SoleilCirque du Soleil

whole whole foods foods

$79$7988

$415$415/SqFt/Wal*Mart

$$798798/SqFt/Whole Foods

Whole FoodsWhole Foods

Astounding selectionAstounding selectionAstounding qualityAstounding quality

Fun to chooseFun to choose (Buy FAR more than intended)(Buy FAR more than intended)

Genius merchandisingGenius merchandisingUse of colorUse of color

AttitudeAttitudeKnowledgeableKnowledgeable

ParkingParkingCheckoutCheckout

Reeks of distinction/DDReeks of distinction/DD Clean Clean (“Eat off the floor”/the food)(“Eat off the floor”/the food)

starbucksstarbucks

WegmansWegmans

#1/10#1/1000

“Best Companies to Work for”/2005

London London DrugsDrugs

London DrugsLondon Drugs

**Each major department a “category killerEach major department a “category killer” (pharmacy,” (pharmacy, computers, photo-photo finishing, cosmetics) computers, photo-photo finishing, cosmetics)**“Service added”/ Experience “Service added”/ Experience (e.g., consultation booths (e.g., consultation booths forfor pharmaceutical Clients) pharmaceutical Clients)**Brilliant, eye-popping design-merchandisingBrilliant, eye-popping design-merchandising*Price point: peanuts to super-premium*Price point: peanuts to super-premium**Massive training, very low staff t/oMassive training, very low staff t/o*Big-bet experimentation-innovation*Big-bet experimentation-innovation*Locales begging for LD*Locales begging for LD**Financials to die forFinancials to die for**IS/IT/SC pioneersIS/IT/SC pioneers (compared favorably to Wal*Mart’s (compared favorably to Wal*Mart’s supply-chain management; exquisite vendor-partner supply-chain management; exquisite vendor-partner programs) programs)**Effectively deflected Wal*Mart incursionEffectively deflected Wal*Mart incursion*Philosophy: fun, enthusiasm, innovation, commitment,*Philosophy: fun, enthusiasm, innovation, commitment, care, talent development care, talent development

Griffin Griffin Hospital/Hospital/Planetree Planetree AllianceAlliance

““It was the goal of It was the goal of PlanetreePlanetree to help to help

patients not only get patients not only get well faster but also well faster but also

to stay well longer.”to stay well longer.”

—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

(Planetree Alliance/Griffin Hospital)

The 9 Planetree Practices

1.1. The Importance of Human InteractionThe Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Friends Healing Partnerships: The importance of Including Friends and Family and Family4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Conducive Healing Environments: Architecture and Design Conducive to Health to Health

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Big Picture Big Picture schools/schools/The MetThe Met

EBF* to EBI**

“engage the kids “engage the kids around their around their

passions.”passions.” —Dennis Littky/

The Met-Big Picture Schools

* Education By Fiat** Education By Interest

ProgressiveProgressive

““We don’t sell insurance We don’t sell insurance

anymore.anymore. WeWe sell sell speedspeed.”.” —Peter Lewis, —Peter Lewis,

ProgressiveProgressive

Commerce Commerce BankBank

The Power of WOW!The Power of WOW!How Commerce Bank How Commerce Bank

Created a Super-Created a Super-Growth Business in a Growth Business in a No-Growth IndustryNo-Growth Industry

Vernon W. Hill, IIVernon W. Hill, II

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hills (Top-line driven; standard —Vernon Hills (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

Commerce Bank: From “Service” to “Experience”Commerce Bank: From “Service” to “Experience”

7X. 730A-7X. 730A-800P. 800P.

F12A.F12A.**

**’93-’03/10 yr annual return: CB: 29%; ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

8,000 Radio City 8,000 Radio City Music HallMusic Hall … J.D. Power/Customer … J.D. Power/Customer

service/Bank/NYC/1service/Bank/NYC/1stst in 5 of 6; 2 in 5 of 6; 2ndnd in #6 … Inspired by Ray in #6 … Inspired by Ray Kroc … $36B ($100B in 6 years); +$750M per month/373 Kroc … $36B ($100B in 6 years); +$750M per month/373

branches in 7 states/900 in 6 years … player piano … branches in 7 states/900 in 6 years … player piano … Penny Arcade/$25K per machine … 9M lollipops, 2M dog Penny Arcade/$25K per machine … 9M lollipops, 2M dog

biscuits … stupid rule (red) button … call center not biscuits … stupid rule (red) button … call center not “cost center,” but opportunity/human by second “cost center,” but opportunity/human by second operation … over-invest in real estate … design-operation … over-invest in real estate … design-

experience fanaticism … Red!/Red Friday/Hot music … experience fanaticism … Red!/Red Friday/Hot music … deposits available next day (vs ½ on 3deposits available next day (vs ½ on 3rdrd; ½ on 5; ½ on 5thth; focus ; focus

on 99%, not 1%)on 99%, not 1%) … LONG HOURS!!!! (7/week/12 … LONG HOURS!!!! (7/week/12 hours/Fridays/15 minutes before) … “Do whacky things hours/Fridays/15 minutes before) … “Do whacky things

forfor customers” (VH) … “create magical moments of customers” (VH) … “create magical moments of surprise and delight for employees” (VH) … “Hire for surprise and delight for employees” (VH) … “Hire for attitude. Train for skills.” (VH) … Chinatown/10K first attitude. Train for skills.” (VH) … Chinatown/10K first

day; 28K first week … Commerce U in ’93 (“underlying day; 28K first week … Commerce U in ’93 (“underlying theme is fun”—VH)theme is fun”—VH)

Thesaurus of WOW!

“They” hate it if you call them “bankers.” “They” love it, on the other hand, when you ask to see their #s—stupendous. “They” are … Commerce Bank. These absurdly fast

growing, insanely profitable “retailers,” rewriting the rules of East Coast retail

banking, sent me a copy of their booklet, “Traditions.” It explicates their “Wow the Customer Philosophy.” At the end there’s “A Collection of Commerce Lingo.” I won’t define (use your imagination), but simply offer a small

sample: “Fans, Not Customers.” “Say YES … 1 to say YES, 2 to say NO.” (A staffer has to get a supervisor’s approval to say “no” to anything.) “Recover!!! To Err Is Human; To Recover Is Devine.” “Leave ’Em Speechless.” “Positive Behavior.”

“Positive Language.” “Kill A Stupid Rule.” (Get cash rewards for exposing dumb internal rules “that impede our ability to WOW!”) Make the ‘WOW! Answer Guide’

Your Best Friend.” “Buzz Bee.” “CommerceWOW!Zone.” (A K-12 financial education program.) “Doctor WOW!” “Ten-Minute Principle.” (“Stores” open 10 minutes before

posted hours, stay open 10 minutes after posted hours—and the hours, such as open 7 days a week, are already incredibly generous & tradition-shattering.) “Wall of

WOW!” “WOW! Awards.” (The annual recognition ceremony—Radio City Music Hall, with the Rockettes, in ’05.) “WOW! Patrol.” “WOW! Spotlight.”

“WOW Van.” “WOW Wiz.” (A service superstar.) Etc.

S.M.A.R.T.S.M.A.R.T.

S.S. Say Yes Say YesM.M. Make Each Customer Feel Special Make Each Customer Feel SpecialA.A. Always Keep Customer Promises Always Keep Customer PromisesR.R. Recover! Recover!T.T. Think Like Our Customers Think Like Our Customers

Standard bank:Standard bank: Keep ’em out of Keep ’em out of branches; ignore middle income; cost-branches; ignore middle income; cost-driven following mergers. (“No great driven following mergers. (“No great American retailer was ever created by American retailer was ever created by

doing acquisitions”—VH “No examples of doing acquisitions”—VH “No examples of seriously broken retail models thatseriously broken retail models that

have been fixed.”) have been fixed.”)

CB:CB: deposit focus; customer experience; deposit focus; customer experience; best facilities; no stupid rules; revenue best facilities; no stupid rules; revenue

driven; better experience for lower yielddriven; better experience for lower yield

“ … cut costs at most banks. ‘We have to push

them out of the branches.’ ‘We have to push them to

machines.’ We have to push them to the Internet.”

Source: Vernon HillSource: Vernon Hill

““We defy conventional We defy conventional wisdom, operating more wisdom, operating more like the young bucks at like the young bucks at Starbucks than the old Starbucks than the old

farts at the Bank of farts at the Bank of America.”America.” —Vernon Hills—Vernon Hills

TP:TP: Experience … Top-line Experience … Top-line fanaticism (vs Cost-fanaticism (vs Cost-

fanaticism) … Deposits …fanaticism) … Deposits …Drive ’em to the branch … Drive ’em to the branch … Experience/Wow! … design Experience/Wow! … design … little touches … no stupid … little touches … no stupid

rules … Talent/Attitude/ rules … Talent/Attitude/ RecognitionRecognition

John Laing John Laing HomesHomes

““Soft Skills, Soft Skills, Hard Dollars”Hard Dollars”

Source: Headline, Source: Headline, BigBuilder,BigBuilder, September 2006 September 2006

““Builder of the Year”/Builder of the Year”/Professional Professional BuilderBuilder … Experience … Communities/ … Experience … Communities/

Family values/ Relationships/After-sale “ …Family values/ Relationships/After-sale “ …talk to our customers …” J.D. Power talk to our customers …” J.D. Power

awards … Warranties … Price premiums … awards … Warranties … Price premiums … Design!!!! (all Divisions winners) (Top Design!!!! (all Divisions winners) (Top

“names”) … Data/market research … Top “names”) … Data/market research … Top company to work for … Team development company to work for … Team development … “I just love being a home builder.” (LW) … “I just love being a home builder.” (LW)

… Brand … Emaar Properties (Robert … Brand … Emaar Properties (Robert Booth/Int’l: “They have a tremendous Booth/Int’l: “They have a tremendous

focus on the customer, and that is hugely focus on the customer, and that is hugely important to us.”)important to us.”)

Re/max Re/max

““We are a We are a ‘life Success ‘life Success Company”’Company”’

Dave Linegar, RE/MAXDave Linegar, RE/MAX

““The organization would The organization would ultimately win not ultimately win not

because it gave agents because it gave agents more money, more money, but but

because it because it ggave themave them a chance for better a chance for better

liveslives.”.” —Phil Harkins & Keith Hollihan, —Phil Harkins & Keith Hollihan,

Everybody WinsEverybody Wins

jim’s group jim’s group

Jim’s GroupJim’s Group:: Jim Penman.* Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group. 1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees2,600 franchisees (Australia, NZ, UK). (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is can leave at will. 0-1 complaint per year is

norm; cut bad ones quickly.norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

X.06.23X.06.23:: Whole Foods Markets Whole Foods Markets (high-end, experience-design, (high-end, experience-design, demographic)demographic) … Starbucks … Starbucks (people, experience)(people, experience) … Wegmans … Wegmans

(people)(people) … Commerce Bank … Commerce Bank (nuts about customers, WOW, (nuts about customers, WOW, people, execution)people, execution) … Apple … Apple (design-experience, breakthrough, (design-experience, breakthrough,

“virus management,” resilience, talent, “seriously cool”)“virus management,” resilience, talent, “seriously cool”) … … London Drugs London Drugs (design-experience, people, “solutions”)(design-experience, people, “solutions”) … Griffin … Griffin Hospital/Planetree Alliance Hospital/Planetree Alliance (customer-centric, “whole person”)(customer-centric, “whole person”) … The Met School/Big Picture … The Met School/Big Picture (engagement, self-control)(engagement, self-control) … Carl … Carl

Sewell Sewell (experience!)(experience!) … Progressive Insurance … Progressive Insurance (speed, IT)(speed, IT) … … Stanford women’s sports Stanford women’s sports (demographic, Blue Ocean)(demographic, Blue Ocean) … Stanford … Stanford

D-School D-School (design-biz-engineering, Blue Ocean)(design-biz-engineering, Blue Ocean) … HSM … HSM (execution, experience)(execution, experience) … WSB … WSB (integrity, broad view of (integrity, broad view of

customers, execution)customers, execution) … Build-A-Bear … Build-A-Bear (experience) (experience) RE/MAX RE/MAX (people/“create(people/“create

success stories”)success stories”) … Donnelly’s Weather Strip Service … Donnelly’s Weather Strip Service (high end, (high end, execution-reliability, simply the best)execution-reliability, simply the best) … Jim’s Group … Jim’s Group

(imagination-Blue Ocean, demographic, customer-centric)(imagination-Blue Ocean, demographic, customer-centric) … … Cirque du Soleil Cirque du Soleil (talent, R&D, Imagination, resilience, design-(talent, R&D, Imagination, resilience, design-experience, partnering)experience, partnering) … (U.S. Grant/ … (U.S. Grant/execution, delegation, execution, delegation,

people, K.I.S.S., action-at-all-costs, win, bold people, K.I.S.S., action-at-all-costs, win, bold ) … (Horatio ) … (Horatio Nelson/Nelson/execution, delegation, people, K.I.S.S., action-at-all-execution, delegation, people, K.I.S.S., action-at-all-

costs, win, boldcosts, win, bold) … (Stew Leonard’s/) … (Stew Leonard’s/people, experience-design, people, experience-design, WowWow) … (DeMar Plumbing/) … (DeMar Plumbing/experience, people, Blue Oceanexperience, people, Blue Ocean) … ) …

(FBR/Friedman Billings Ramsey/(FBR/Friedman Billings Ramsey/research, focusresearch, focus) )

High end.High end.Experience.Experience.

Design.Design.Crazy for customers!Crazy for customers!

Crazy for Patients! (“Whole person”).Crazy for Patients! (“Whole person”).Wow!Wow!

People first, second, third.People first, second, third.Breakthrough or bust.Breakthrough or bust.

““Seriously cool.”Seriously cool.”““Virus management.”Virus management.”

Resilience.Resilience.Tippy-top talent.Tippy-top talent.

“ “Solutions,” not “just” “satisfaction.”Solutions,” not “just” “satisfaction.”Engagement.Engagement.

Self-control. (Customer/Patient/Student control.)Self-control. (Customer/Patient/Student control.)Blue Ocean.Blue Ocean.

““Mundane stuff” made great.Mundane stuff” made great.Great demographic.Great demographic.

The best. Period.The best. Period.Effective partnering.Effective partnering.

K.I.S.S.K.I.S.S.Play to win. (Offense > Defense.)Play to win. (Offense > Defense.)

Bold!Bold!Action! Always!Action! Always!

Integrity-as-strategy.Integrity-as-strategy.

**Focused on Focused on growthgrowth and and revenuerevenue and “ and “offenseoffense,”,” not defense and cost containment.not defense and cost containment.

**People-talent obsession.People-talent obsession.

**Provide mind-bending experiences. (DrivenProvide mind-bending experiences. (Driven by design primacy.)by design primacy.)

**Nuts about customers.Nuts about customers.

**Happy to use words like Happy to use words like “Wow.”“Wow.”

**Pretty close to the high end of the market.Pretty close to the high end of the market.

[*[*Ability to make silk purses filled with gold out ofAbility to make silk purses filled with gold out of sows’ ears: Wegmans-Whole Foods-Stew Leonard’ssows’ ears: Wegmans-Whole Foods-Stew Leonard’s and groceries; Jim’s Group and dog-walking;and groceries; Jim’s Group and dog-walking; Donnelly and weather strip installation; DeMarDonnelly and weather strip installation; DeMar and plumbing.and plumbing.]]

**Execution!Execution!

EXCELLENCE.EXCELLENCE.ASPIRATION. ASPIRATION. YOU & ME.YOU & ME.

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG


REVENUE.REVENUE.MATTERS.MATTERS.

MOST.MOST.

““Analysts … preferred cost cuttingAnalysts … preferred cost cutting, as long as they could see two or three years of EPS growth. I

preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and

earnings went to hell. They said, They said, ‘Oh my gosh, you ‘Oh my gosh, you need revenues to need revenues to

grow earnings over grow earnings over time.’ time.’

Well, Duh!Well, Duh!”” —Dick Kovacevich, Wells

Fargo


INNOVATE. INNOVATE. OR. DIE.OR. DIE.

PathPatheticetic!!

“I don’t believe in

economies of scale. You You don’t get better don’t get better by being bigger. by being bigger. You get worseYou get worse.”.” —

Dick Kovacevich/Wells Fargo

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman Sachs’

Investment Policy Committee,

answered: I’m sure there I’m sure there are success stories out are success stories out

there, but at this there, but at this moment I draw a moment I draw a

blankblank.”.” —Mark Sirower, The Synergy Trap

““Not a single company Not a single company that qualified as having that qualified as having

made a sustained made a sustained transformation ignited transformation ignited

its leap with a big its leap with a big acquisition or mergeracquisition or merger.

Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often

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

There’s “A”“A” and then

there’s “A.”“A.”

SpinoffsSpinoffs systematically perform better than IPOs … track

record, profits … “freed from the “freed from the confines of the parent … more confines of the parent … more entrepreneurial, more nimbleentrepreneurial, more nimble”

—Jerry Knight/ Washington Post/ 08.05

InnoTacsInnoTacs

We We becomebecome who we hang who we hang

out with!out with!

Measure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ Location

Lunch MatesLunch MatesLanguageLanguage

BoardBoard

futuremarkfuturemark

““To grow, companies To grow, companies need to break out of a need to break out of a

vicious cycle of vicious cycle of competitive competitive

benchmarking and benchmarking and imitation.”imitation.” —W. Chan Kim & Renée Mauborgne,

“Think for Yourself —Stop Copying a Rival,” Financial Times/2003

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 itTry 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. Try it. Try it.

Try it. Try it.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

tolerate tolerate [encourage?] [encourage?]

failurefailure

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

Speed/ Speed/ TempoTempo

“We don’t sell

insurance anymore.

WeWe sell sell speedspeed.”.”

Peter Lewis, Progressive

bet the bet the farmfarm

“I don’t intend to be known as

the ‘King of the

Tinkerers.’ ”CEO, large financial services company

No Wiggle Room!No Wiggle Room!

“Incrementalism“Incrementalism is innovation’s is innovation’s worstworst enemy.” enemy.”

Nicholas Negroponte

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make BigBig Changes

to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

Five MYTHS About Changing Behavior

*Crisis is a powerful impetus for change*Change is motivated by fear*The facts will set us free

*Small, gradual changes are always easier to make and sustain*We can’t change because our brains become “hardwired” early in life

Source: Fast Company/05.2005

focusfocus

““We will We will notnot, I , I repeat repeat notnot, ,

pretend to be pretend to be ‘all things to all ‘all things to all people.’”people.’” —CEO, Investec (03.06)

Private Equity-financedPrivate Equity-financed Firm, Firm, BestBest *Case *Case

*Focus! Focus! Focus!*Focus! Focus! Focus!*In a [Big] hurry*In a [Big] hurry

*CEO/Top team, “skin*CEO/Top team, “skin in the game” in the game”

*CEO, 100% of time*CEO, 100% of time on the biz on the biz

*Merit! Merit!*Merit! Merit!*Motivated oversight*Motivated oversight

*Worst case: Rape & Pillage

Conscious Conscious measurementmeasurement

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game- changer”“Game- changer”

Scale?

personalpersonal

Step #1: Buy a Buy a Mirror!Mirror!

EXCELLENCE.EXCELLENCE.1966. 2006.1966. 2006.

4/404/40

De-centralizationDe-centralizationexecutionexecution

accountabilityaccountability6:15a.m.6:15a.m.

““If if feels If if feels painfulpainful and and

scaryscary—that’s —that’s realreal delegation”delegation”

—Caspian Woods, small biz owner

““ExecutionExecution is is the the jobjob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

6:15a.m6:15a.m..


BEDROCK.BEDROCK.TALENT.TALENT.

Hire Hire ververy y good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22 years.”

—Ed Michaels, War for Talent

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.

NOBLEST NOBLEST MISSION.MISSION.

A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd:

First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year.

Second: Putting Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE

PERSON”? PERSON”? PROVE ITPROVE IT..

< CAPEX< CAPEX> People!> People!

LIVE FOR LIVE FOR TALENT!TALENT!

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

Brand Brand = =

Talent.Talent.


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

9Ps.9Ps.

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

““Whenever anything is Whenever anything is being accomplished, I being accomplished, I

have learned, it is have learned, it is being done by a being done by a

monomaniac with a monomaniac with a mission.”mission.” —Peter Drucker

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

“The role of the Director is to create a space where the actors

and actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi



PositivePositive..

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William

Feather, author

"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!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine)


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make BigBig Changes

to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

Kevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!



PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo



PositivePositive..

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

EXEXCELLE CELLE ALWALWAYSAYS..

excellence. all you need to know

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