Unformatted text preview: Tom Peters’
CELLENCE. AL Slides* at … tompeters.com
*also “long” tom peters’ “excellence. Always.”
“excellence. 1. Excellence! Always!
2. context. 3,000,000,000 new capitalists!
3. Innovate or die!
4. Revenue Matters Most!
5. Up+Up+Up+up the “Value-added Ladder”!
(commodity to “ gamechanging solution”
to “breathtaking experience” to “lovemark”) 6. Make . Much. Money. Damn it!
(women-Boomers-geezers) 7. Action!/Try It!/Execution!
8. Best “roster” wins!
9. Emotional Leadership!/
Leading for excellence!
10. Excellence! Always!
Always The Irreducible209+/
Tom-A-to, Tom-ah-to A frustrated participant at a seminar for investment bankers in Mauritius listened
impatiently to my explanation of differences of opinion among me, Mike Porter, “What, if anything,” he asked, “do you believe ‘for sure’?”
Gary Hamel, Jim Collins, etc. Finally, he’d had enough. I mumbled something, but his query started rumbling around in my mind. Three days later,
wandering on a Sunday in London, the idea of “the irreducibles” occurred to
me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before 209 items. Hence “The
209 I knew it, a few days later, the list had grown to
Irreducible209” that follows. Tom Peters 1. Hare 1, Tortoise 0. (Harey times.)
1. 2. Tempo. (O.O.D.A.)
4. Appreciation. (“Motivator” #1.) (Can’t be faked. Good.)
7. Time out.
8. One matters. 9. Big change. Short time. (Alt not work.)
10. Excellence. Always.
11. Passion. Energy. Hustle. Enthusiasm. Exuberance. (Move mountains. No alt.)
12. You must care.
14. Hard is soft. (Soft is hard.) EXCELLENCE.
ALL YOU NEED TO KNOW. 25
lives by selling
. – Robert Louis Stevenson A Few Biases You Should Know About
*I am not a macro-economist.
*I am wholly biased by 30 years (1970-2000) in Silicon Valley.
*I would rather work for eBay than BankAmerica.
*I believe that the Giant Merger Game is the single greatest
waste of energy in the world of business.
*Economies of scale are wildly over-rated.
*I find the entire notion of “career” to be disturbing and a little silly.
*I find the notion of “built to last” hilarious.
*Between 1965 and 1980 I turned 179.9 degrees from “Mr Big
Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you,
*Joseph Schumpeter (“gales of creative destruction”) and F.A. Hayek
are my economist “gods”; JK Galbraith is my b ête noir.
*“Innovation” is a wonderfully messy & chaotic process—not
amenable to “strategic plans.”
*I believe in Luck. (Fooled by Randomness—best book
I’ve ever read.) A Few Biases You Should Know About
*I find most strategic plans (and strategic planners) to be amusing.
*I am not … Mike Porter.
*I am not … Peter Drucker.
*I am not … Jim Collins.
*I believe that the resilience of Giant Companies is
*I believe that America’s productivity edge comes from car
dealers more than Giant Cos.
*No “business model” is “the last word.”
*I am a Great Believer in “the basics”: product, people,
customers, execution. (Hence there is nothing very interesting,
save one thing, in In Search of Excellence.)
*I believe that EXCELLENCE is a legitimate aspiration for each
of us; and that any lesser aspiration is unconscionable. Execution. (Discipline.)
Action, a Bias for. (S.A.V./R.F.A.)
Experimentation. (“Innovate or Die.” “He who makes …”)
Adaptability. (Plan B; “We eat …”)
“In the moment.” (Bertolucci.)
Technicolor. Wow! (Extreme Language.)
Talent. Roster. ($21M.)
Weird. (Hangin’ Out + Bottlenecks.)
Up-Up-Up the “VA Ladder.”
Trifecta: Wow Projects-Brand You-PSF. (No Option.)
4-40/D.E.A.615. (60TIBs; IRR209.)
EXCELLENCE. TOM PETERS.
THE “ERAS.” TP’s
1942-2006 B>A* (R.F.A.) (*Behavior drives Attitude) … ’71-’06
Implementation = #1 … ’73-’77 (’06)
“Soft is Hard” (“Management Style”) … ’77-’79 (’06)
(Org) Structure>Strategy … ’77-’83 (’06)
Strategy-Structure+/ “McKinsey 7-S” Model ... ’77-’81
Action>Planning … ’74-’06
Mess = Reality ... ’77-’06
Skunkworks/Skunks (“Offline” Innovation/Innovators) … ’84-’91
MBWA … ’80-’85 (’06)
Excellence I … ’79-’84
Mid-size biz is cool … ’84-’89 (’06)
Customer service … ’84-’88
Innovation … ’87-’92
Free trade/Hayek … ’90-’92
New Org Models … ’92-’96
PSF … ’92-’06
WOW! (WOW Projects) … ’93-’06
Brand You … ’94-’00
Design … ’94-’06
Women (Markets-Leaders) … ’96-’06
EXCELLENCE II … ’06-??
Healthcare (Quality-Wellness-PatientCentric) … ’06-??
Exuberance-Passion (Soft is Hard) … ’42-’06
(Soft TOM PETERS.
THE “DAMN ITS.” To The Mat: The “5 Damn Its” Women.
EXCELLENCE. ALWAYS. M.I.A.
The Work Itself! ***
***WOW Projects! “Never forget implementation boys. In our work it’s what I call the ‘missing 98
percent’ of the client percent
puzzle.” —Al McDonald TOM PETERS.
THE DEAL. Revolution-Transformation.
(No long runs on Broadway-Senility.)
(Culture or Bust.)
(Do>Think.) Clean Sheet of Paper.
Clean (Web2.0, Transparency, New Org Form—Itinerant Potential Machines.)
(Web2.0, PSF-Brand You-Wow Projects.
Up-Up-Up the VA Ladder.
Up-Up-Up (Gamechanging Solutions-Eyepopping Experiences-Dream Merchants-Lovemarks.)
Weird. (Innovation “Easy.”)
Excellence. Always. That’s a Big
Big Number …. THREE BILLION
—Clyde Prestowitz Schools & Shifting Tectonic 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 oncein 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. “ There is no job that is Amer ica’s God
given r ight anymore.” “ There is no job that is _____’s Godgiven r ight anymore.” “Income Confers
No Immunity as
—Headline/USA Today/02.2004 “Deutsche Bank Moves Half of Its
Back-office Jobs to India”/ (500 of
Research headline/FT/0327 December 9, 2005: “Ogre to
Slay? Outsource It to
Chinese” (New York Times,
page 1—news section). The
page “factory”: Fuzhou, China. The workers: youngsters
logging 12-hour shifts. Their clientele: youngsters
from “Seoul to San Francisco.” The “work”: The
Chinese youngsters are playing the early levels of
video games for their affluent “clients,” who want to
avoid the pain and time associated with those
annoying first few levels. “Forget China, India and the Internet: Economic Growth Is Driven by Women.”
—Headline, Economist, April 15, 2006, Leader, page 14 That’s a small
small Number …. 26
26 m 43
43 h Those are Big
Big Numbers …. 1 Houston/
Month/15 Savings, internal
external investment > 50% GDP
50% Those are Big
Big Issues …. Unparalleled in “Our” Professional Lifetime Terrorism
Middle East instability
“Cold War” with China
Fraying American fabric
U.S. impotence in the face of Asia’s rise “This is a dangerous world and
it is going to become more dangerous.” “We may not be
interested in chaos but
chaos is interested in
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century EXCELLENCE.
NECESSITY. “One Singaporean worker costs as much as …
3 … in Malaysia 8 … in Thailand 13 … in China 18 … in India.” Source: The Straits Times/2003 “Thaksinomics” (after Thaksin Shinawatra) “Bangkok “managed
Fashion City”: (add to brand value of Thai textiles by demonstrating flair and
Source: The Straits Times/2004 Spain
Romania New Zealand
New “Better By Design”: A National Strategy NZ = Design Excellence
Excellence “THE FUTURE BELONGS
TO … SMALL
POPULATIONS … WHO
BUILD EMPIRES OF THE
MIND … AND WHO IGNORE THE
TEMPTATION OF—OR DO NOT HAVE THE
OPTION OF—EXPLOITING NATURAL
Source: Juan Enriquez/As the Future Catches You Spain
New Zealand Taiwan “ ‘MADE IN TAIWAN’: “ ‘
From Cheap Manufacturing to Chic
—Headline/Advertising Age/06.05 Taiwan, Your Taiwan, Your Partner in InnoValue
ROOTS. Age of Agriculture
Age of Information Intensification Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers) Conceptual Age (creators and empathizers)
Source: Dan Pink, A Whole New Mind “ Human c reativit y is the ultimate economic resource.”
—Richard Florida, The Rise of the Creative Class “ The Creative Age is a wide open g ame .”
—Richard Florida, The Rise of the Creative Class “You can’t build
a ‘real economy’ on
advertising, London circa 1976: deliberately aims
to be the “capital of the 21
century” London circa 2006: Austin,
SF, Seattle, Boston, RaleighSF,
CI/Top10 Metro*: CI/Bottom10: Detroit, Norfolk, Cleveland, Milwaukee, Grand Rapids,
Memphis, Jacksonville, Greensboro, New Orleans, Buffalo, Louisville
*> 1M/49 total
Source: Richard Florida, The Rise of the Creative Class EXCELLENCE. THE
MANDATE. “If you don’t like
going to like
less.” less.” —General Eric Shinseki, Chief of Staff.
U. S. Army “It is not the strongest of
the species that survives,
nor the most intelligent,
but the one most
to change.” —Charles Darwin
to “The most
are those who
are good at ‘plan B’.”
—James Yorke, mathematician, on chaos
theory in The New Scientist “Forbes100” from 1917 to 1987 : 39 members of the
39 Class of ’17 were alive in ’87; 18 in ’87 F100;
18 F100 “survivors” significantly
underperformed the market;
under 2 GE Kodak
GE Kodak just
outperformed the market from
1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97;
74 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 “I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, ‘How do I build a small firm for Buy
a very large one
and just wait.”
and myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies
in 1955, only 7 were still on the
list in 2004. The 1997 crisis
“destroyed half of Korea’s
30 largest conglomerates.”
Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005) S&P Stability Ratings* 1985 Low Risk 41% Average Risk 24% High Risk 2006 35%
35% *Likelihood of stable long-term earnings growth
Source: Fortune (2 October 2006) 13%
14% 73% Flat as a Pancake (Or Worse)
Flat Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE Day of Shame/end of a
glorious “I do not accept personal responsibility for what happened.” — Patricia Dunn/0928.2006 “It is generally much easier to kill an or g anization
than change it substantially.” “The difficulties arise from the inherent conflict between the need
to control existing operations and the need to create the kind of
environment that will permit new ideas to flourish—and old ones to We believe that most
corporations will find it impossible to
match or outperform the market
without abandoning the assumption
of continuity. … The current apocalypse—the transition
die a timely death. … from a state of continuity to state of discontinuity—has the same
suddenness as the trauma that beset civilization in 1000 A.D.”
Richard Foster & Sarah Kaplan, “Creative Destruction” ( The McKinsey Quarterly) C.E.O.
C.D.O. DYB.com (Practical) Implication?
Implication “Go for it!” (Why not—
alternative is slow death, at best) Axiom: “We are in a brawl with no rules.” (PA)
Implication: “The world will not be kind to those who ‘play by
the rules’.”* (TP)
Strategy: S.A.V./R.F.A. (RP/TP+)
*Axiom: The microprocessor plays by the rules. Keep Austin Weird
Keep “Active mutators in placid times
tend to die off. They are
Reluctant mutators in quickly
changing times are also
selected against.” against
—Carl Sagan & Ann Druyan,
Shadows of Forgotten Ancestors “Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “ Uncertainty is the only thing to be sure of.” –Anthony Muh,
head of investment in Asia, Citigroup Asset Management “The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.” —Newsweek/Paul Saffo TP#1*: Netscape!
*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?) “A lot of companies in the Valley fail.”
RMcK: “Maybe not enough fail.”
“Maybe not enough fail.”
RMcK: “What do you mean by that?”
RN: “Whenever you fail, it
“Whenever you fail, it means you’retrying new things.”
RN: Source: Fast Company “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” —Kevin Kelly, New Rules for the New
Economy New Economy?! Sergey + Larry
Harvard/ “Reward excellent
Phil Daniels, Sydney exec Joe J. Jones Joe J. Jones 1942 – 2006 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM! “It is the foremost task—and
generation to re-imagine
enterprises and institutions,
from the back cover of Re-imagine! EXCELLENCE.
HORRORS. Radio City Music Hall
September 2005 Franchise Lost! TP:  “ How many of you r eally crave a new Chevy?” “ Ford , GM and Chr y sler do not just make cars expensively … they make bad cars expensively.” My (Les’s) Dinner with Henri JUSWHATIZZITUMAKE? My (Les’s) Dinner with Henri JUST WHAT IS IT
YOU MAKE? Sluggish + Obese +
Unimaginative + More Sluggish +
More Obese + More
Unimaginative + Even More
Sluggish + Even More Obese +
Even More Unimaginative = NISSAN + RENAULT + N ISSAN GM = Innovative Challenger for
Crappy Management (GM) +
Management (Carlos G) = Great
Management Oh, Great … Ford: Airplane guy.
GM: CFO. Small cars HQ: LA. Big cars HQ: Dallas. Small cars HQ: Corporate HQ: Atlanta. CEO: Roger Enrico or Lou Gerstner or Meg Whitman. COO: Bob Nardelli. Chairman: George Steinbrenner or Jack Welch or Ross Perot. Vicechairman & CFO: Warren Buffett. Chief Marketing Officer: Brenda Barnes. Chief Branding Officer: Phil Knight (or Howard Schultz). Chief Innovation Officer: Steve Jobs or Jeff Immelt. Chief/Supply Chain: Raid Wal*Mart or CostCo or Dell. Chief/Dealer Relations: Carl Sewell. “Not long ago, I heard one studio chief utter the unthinkable: ‘What
‘What would happen if I made a
movie I actually looked
forward to seeing?’ ” —Peter Bart, Editor in
Chief, Variety; former Paramount exec, “Hollywood’s Model Doesn’t
Produce Art, or Much Profit” (NYT/0721.06) Did one of ’em ever turn to the
other and say: “Wow, I wonder what unimaginable
new tools, otherwise not
possible, will be brought
forth for my daughter
Alice, age 17, because
of this deal?” Did one of ’em ever turn to the
other and say: “Wow I wonder what unimaginable new
tools, otherwise not
possible, will be quickly
brought forth for our
customers because of
Excellence. “To me business isn’t about
wearing suits or pleasing
stockholders. It’s about being
true to yourself, your ideas
and focusing on the
essentials.” —Richard Branson
Excellence. Resilience. “It is not the strongest of
the species that survives,
nor the most intelligent,
but the one most
to change.” —Charles Darwin
Resilience. Relentlessness. “One of my superstitions had always been when I started to go anywhere or to do anything, not to
not turn back, or stop, until the turn thing intended was accomplished.” —Grant "The reasonable man adapts himself
to the world. The unreasonable one
persists in trying to adapt the world
to himself. Therefore, all
to progress depends upon the
unreasonable man.” unreasonable
—GB Shaw, Man and Superman: The Revolutionists' Handbook. “Success seems to be
largely a matter of
hanging on after others
have let go.”
—William Feather, author* (*c.f. Woody Allen: “90% of success is
showing “The first 90% of a project takes 90% of the time. The last 10% takes the other 90% of the time.”
—Richard Templar, The Rules of Management
Relentlessness. Senility. Forget>“Learn” “ The problem is never how to get new, innovative thoughts into your mind, but how to g et the old ones out .” —Dee Hock “A pattern emphasized in the case studies in this book is the degree to which powerful competitors not only resist innovative threats, but actually resist all efforts to understand them, preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death.” —Jim Utterback, Mastering the
Dynamics of Innovation Wanted* ** : Corporate
** “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock People.
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- Winter '11