tom peters’ excellence: the relentless pursuit of dramatic difference ! napa/atlanta/09feb2006
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Tom Peters’ Excellence: The Relentless Pursuit of Dramatic Difference ! NAPA/Atlanta/09FEB2006. Slides at … tompeters.com. New world. THREE BILLION NEW CAPITALISTS —Clyde Prestowitz. Business Mantra #1* of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART ON PRICE OR CHINA ON COST ! - PowerPoint PPT PresentationTRANSCRIPT
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Tom Peters’ Excellence:
The Relentless Pursuit of
Dramatic Difference!NAPA/Atlanta/09FEB2006
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Slides at …
tompeters.com
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New world.
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THREE BILLION NEW
CAPITALISTS —Clyde Prestowitz
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Business Mantra #1* of the ’00s: DON’T TRY TO COMPETE WITH WAL*MART
ON PRICE OR CHINA ON COST!*Mantra #2: See Mantra #1
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No option.
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“If you don’t like change, you’re going to like
irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army
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No option.
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Best is not good
enough!*
*“Non-linear”:Tiger/Lance/Mike Leach/Dell/Wal*Mart/etc
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Program06*
Study moreRenew moreTailor moreOffer moreListen moreMarket more
Practice moreChallenge moreSocialize more
Smile moreFollow-up more
Plan execution moreCost control more
*Thanks, Mr President
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“In Tom’s world, it’s always better to try a
swan dive and deliver a
colossal belly flop than to step timidly off the
board while holding your nose.” —Fast Company /October2003
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Tragic.
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Franchise Lost!
TP: “How many of you [600] really
crave a new Chevy?”
NYC/IIR/061205
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Sad.
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This is not a “mature
category.”
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This is an “undistinguished
category.”
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A B C D E Avg
Toilets 0 1 6 5 5 D
Gen’l Cleanliness 1 2 8 5 1 C- Speed 4 6 5 2 0 B
Attitude 1 3 8 4 1 C
Overall “Experience” 0 3 9 5 0 C-
TOTAL 6 15 36 21 7
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“When we did it ‘right’ it was still pretty ordinary.”
Barry Gibbons on “Nightmare No. 1”
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Fight ’til Death!
“I thought, ‘What a dreadful mission I have in life.’ I’d love to get six-thousand restaurants up to spec, but
when I do it’s ‘Ho-hum.’ It’s
bugged me ever since. It’s one of the great paradoxes of modern business. We all know distinction is key, and yet in the last twenty years we
have created a plethora of ho-hum products and services. We swim in an
ocean of ho-hum, and I’m going to fight it. I’m going to die fighting it.” — Barry Gibbons
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But.
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“It” can be done.
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$798
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$798
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$798
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$798
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$415/SqFt/Wal*Mart$798/SqFt/Whole Foods
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4X: “At London Drugs, everyone
cares about everything.” —Wynne
Powell
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7X. 730A-800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
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A “Life Success
Company”*1000-4/372
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No Excuses: #1*84%: Grocery stores “are all alike”
46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup)
“Going to Wegmans is not just
shopping, it’s an event.” —Christopher Hoyt, grocery consultant
“You cannot separate their strategy as a retailer from their strategy as an employer.” —Darrell Rigby, Bain & Co.
*100 Best Companies to Work for/Fortune/2005
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Only One Answer.
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“Get better” vs
“Get different”
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“You do not merely want to be
the best of the best. You want to be
considered the only ones who do what
you do.”Jerry Garcia
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Winning.
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Up, Up, Up, Up,Up the Value-added Ladder.
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The (Old) “Value-added Ladder”: Stuff
Goods Raw Materials
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The Value-added Ladder: Stuff plus Transactions
ServicesGoods
Raw Materials
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Rock their world.
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And the “M” Stands for … ?
Gerstner’s IBM: “Systems Integrator
of choice.” (BW)
IBM Global Services: $55B
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“Big Brown’s New Bag: UPS
Aims to Be the Traffic Manager for Corporate
America” —Headline/BW/07.19.2004
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The Value-added Ladder
Gamechanging Solutions
ServicesGoods
Raw Materials
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Static/Imitative
Integrity.Quality.
Excellence.Continuous Improvement.
Superior Service (Exceeds Expectations.)
Completely Satisfactory Transaction.Smooth Evolution.
Market Share.
Dynamic/Different
Dramatic Difference!Disruptive!
Insanely Great! (Quality++++)
Life-(Industry-)changing Experience!Game-changing!
WOW!Surprise!Delight!
Breathtaking!Market Creation!
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“The only reason to give
a speech is to change
the world.” —JFK
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Experience it.
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“Experiences are as distinct from
services as services are from goods.”
Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
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2%/50%
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Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant
to dress in black leather, ride through small towns
and have people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
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2%/50%
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The Value-added Ladder
Awesome Experiences
Gamechanging SolutionsServicesGoods
Raw Materials
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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third
place is that place that’s not work or
home. It’s the place our customers
come for refuge.”Nancy Orsolini, District Manager
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Beyond the “Transaction” Mentality
“Good hotel”/ “Happy guest” vs.
“Great Vacation”/ “Great Conference”/ “Operation Personal
Renewal”“Good to Be Home”
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Dream it.
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DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The
essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni
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“The Ritz-Carlton experience enlivens the
senses, instills well-being, and fulfills even the unexpressed wishes
and needs of our guests.” — from the Ritz-Carlton Credo
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Experience Ladder
Dreams Come True Awesome Experiences
Gamechanging SolutionsServicesGoods
Raw Materials
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IBM, UPS …
Dream Merchants!
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Love it.
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“Brands have run out of
juice. They’re dead.” —Kevin Roberts/Saatchi &
Saatchi
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Kevin Roberts:
Lovemarks!
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Tattoo Brand: What % of users would tattoo the brand name on
their body?
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Top 10 “Tattoo Brands”*
Harley .… 18.9%Disney .... 14.8
Coke …. 7.7Google .... 6.6Pepsi .... 6.1Rolex …. 5.6Nike …. 4.6
Adidas …. 3.1Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom
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LovemarksDreams Come True
Awesome ExperiencesGamechanging Solutions
ServicesGoods
Raw Materials
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“What Isn’t Matter Is
What Matters”
—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld,
James Twitchell
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Gas ……………… $1.75 per gallonLipton Iced Tea .. $9.52 per gallonOcean Spray …... $10.00Gatorade ……….. $10.17Diet Snapple …... $10.32Milk ……………… $12.72Evian water ……. $21.19*STP brake fluid .. $33.60Pepto-Bismol ….. $123.20Vicks NyQuil …... $178.13
*”MESSAGE IN A BOTTLE: Our thirst for bottled water has created a $US46 billion global market—and New Zealand is infiltrating the once European-dominated industry with our own clean, green offerings”—article title, Air New Zealand magazine
Source: Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell (2004)
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Bonus.
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?????????
Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)All consumer purchases … 83%
Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%
Health Care … 80%
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2000-2010 Stats
18-44: -1%
55+: +21%(55-64: +47%)
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The Perfect Answer
Jill and Jack buy slacks in black…
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Lead as if your life depended
on it.
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Make a
Difference!
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G.H.: “Create a ‘cause,’ not a ‘business.’ ”
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Go for the
Gold!
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“Beware of the tyranny of making Small
Changes to Small Things.
Rather, make Big Changes to Big
Things.” —Roger Enrico, former Chairman, PepsiCo
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“You do not merely want to be
the best of the best. You want to be
considered the only ones who do what
you do.”Jerry Garcia
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Dispense
Enthusiasm!
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“Nothing is so contagious
as enthusiasm.”
—Samuel Taylor Coleridge
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Pursue Excellence!
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The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo
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“Insanely Great”
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PSF!
Donnelly’s Weatherstrip
Service
Weymouth MA
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“The ancient Greek definition of
happiness was the full use of your
powers along lines of excellence.” —JFK
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Dream!
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“the wildest hallucinations of
a moonstruck mind” —The Federalist on TJ’s Louisiana Purchase
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Avoid Moderation!
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“You can’t behave in a calm, rational
manner. You’ve got to be out there on
the lunatic fringe.” —
Jack Welch
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!