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Transcript of Tom Peters’ EXCELLENCE. ALWAYS. Hexaware.Phoenix.29September2006.
Tom Peters’Tom Peters’
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.Hexaware.Phoenix.29September2006Hexaware.Phoenix.29September2006
Slides at …
tompeters.comtompeters.com
“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 of the Class of ’17 were alive members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100 in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly “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: 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
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)
“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
Scale?
“Microsoft’s Struggle With
Scale”Scale” —Headline, FT, 09.2005
“Troubling ExitsExits at Microsoft” —Cover Story, BW, 09.2005
“Too BigToo Big to Move Fast?” —Headline, BW, 09.2005
More than $$$$
#1#1 R&D
spending, last 25 years?
GGMM
“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
“Almost every personal friend I have in the world works on Wall Street. You can buy and sell the same company six times and everybody makes
money, but I’m not but I’m not sure we’re actually sure we’re actually innovatinginnovating.. … Our challenge is
to take nanotechnology into the future, to do
personalized medicine …” —Jeff Immelt/2005
““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
“It is generally much easier to kill an
organization than change it substantially.”
—Kevin Kelly, Out of Control
C.E.O.C.E.O. to
C.D.O.C.D.O.
A.W.O.L.A.W.O.L.BASICSBASICS
Franchise Lost!
TP: “How many of you [600] really
cravecrave a new Chevy?”
“FordFord, GMGM
and ChrChryyslersler do not just make cars
expensively … they make
badbad cars expensively.”
—Investec analyst, International Herald, 0805.06
Sluggish Sluggish ++ Obese Obese ++ Unimaginative Unimaginative ++ More More
Sluggish Sluggish ++ More Obese More Obese ++ More Unimaginative More Unimaginative ++ Even Even More Sluggish More Sluggish ++ Even More Even More
Obese Obese ++ Even More Even More
Unimaginative Unimaginative == NISSAN NISSAN ++ RENAULT RENAULT ++ GM GM = = Innovative Challenger for Innovative Challenger for
Toyota????Toyota????
New Economy?!
Genentech09, Genentech09, Amgen09Amgen09
> Merck09 (70K-3/394B-5)
BASICSBASICSK.I.S.S.K.I.S.S.
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
Sir Richard’s Rules:
Follow your passions.Follow your passions.Keep it simple.Keep it simple.
Get the best people to help Get the best people to help you.you.
Re-create yourself.Re-create yourself.Play.Play.
Source: Fortune on Branson
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
RRelentlessnesselentlessness. .
PPeople.eople.PProduct.roduct.CClients.lients.
EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.
RRelentlessness. elentlessness.
SSenility.enility.
Forget>“Learn”
“The problem is never how to get new, innovative
thoughts into your
mind, but how to get the old ones out.” —Dee Hock
““A pattern emphasized in the case studies A pattern emphasized in the case studies in this book is the degree to which powerful in this book is the degree to which powerful
competitors competitors not onlnot onlyy resist resist innovative threats, but innovative threats, but
actuallactuallyy resist all efforts to resist all efforts to understand themunderstand them, preferring to , preferring to further their positions in older products.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
The Perils of Conservatism/IndustrThe Perils of Conservatism/Industryy Leadershi Leadershipp
“ ‘“ ‘GoodGood management’ management’ was the most powerful was the most powerful reason reason [leading firms][leading firms] failed failed
to stay atop their to stay atop their industries.industries. Precisely because these Precisely because these
firms listened to their customers, invested firms listened to their customers, invested aggressively in technologies that would provide aggressively in technologies that would provide their customers more and better products of the their customers more and better products of the
sort they wanted, and because they carefully sort they wanted, and because they carefully studied market trends and systematically allocated studied market trends and systematically allocated investment capital to innovations that promised the investment capital to innovations that promised the
best returns, they lost their positions of best returns, they lost their positions of leadership.”leadership.”
—Clayton Christensen, The Innovator’s Dilemma
EXCELLENCE. EXCELLENCE. THE WORD.THE WORD.
Synonyms
PurityPurityTranscendenceTranscendence
VirtueVirtueEleganceEleganceMajestyMajesty
Antonyms
Mediocrity
EXCELLENCE. EXCELLENCE.
GAMECHANGER.GAMECHANGER.
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”
ExIn*: 1982-2002/Forbes.com
DJIA: $10,000 yields $85,000$85,000 EI: $10,000 yields $140,050$140,050
*Forbes/Excellence Index /Basket of 32 publicly traded stocks
EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.
““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”
Business* ** (*at its best): An emotional, An emotional, vital, innovative, joyful, vital, innovative, joyful,
creative, entrepreneurial creative, entrepreneurial endeavor that elicits endeavor that elicits
maximum concerted human maximum concerted human potential in the potential in the
wholehearted servicewholehearted service of others of others.***
**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“To me business isn’t To me business isn’t about wearing suits or about wearing suits or pleasing stockholders. pleasing stockholders. It’s about being true to It’s about being true to yourself, your ideas and yourself, your ideas and
focusing on the focusing on the essentialsessentials.”.” —Richard Branson
EXCELLENCE. EXCELLENCE.
DEFINED.DEFINED.
Great Companies … SETSET THETHE
AGENDAAGENDA.*
(PERIOD.)
* “disturb the sleep of …
AGENDA SETTERS: “Set the Table”/ AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ AdventurersPioneers/ 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
Built to Last vs Built for Impact
“But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it
will become ever more fleeting. The ultimate The ultimate aim of a business oraim of a business orgganization, an anization, an artist, an athlete or a stockbroker artist, an athlete or a stockbroker mamayy be to ex be to expplode in a dramatic lode in a dramatic frenzfrenzyy of value creation durin of value creation duringg a a
short sshort sppace of time, rather than to ace of time, rather than to live foreverlive forever.”.” —Kjell Nordström and Jonas Ridderstråle,
Funky Business
GMGM2525/50-/50-75:75: “Built to “Built to
last”last”????????
TP#1*:
NetscapeNetscape!!
*Where would you rather have worked for those 5 yearsWhere 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?)
NO “LAST WORD”NO “LAST WORD”
S&P Stability Ratings*
1985 2006
Low Risk 41% 13% Average Risk 24% 14%High RiskHigh Risk 35% 73%35% 73%
*Likelihood of stable longterm earnings growth
Source: Fortune (2 October 2006)
No No “Last “Last word”word”
models. models. Period.Period.
U.S. SteelU.S. SteelFord Ford GMGMIBMIBM
Macy’sMacy’sSearsSears
Microsoft?Microsoft?Dell?Dell?
Wal*Mart?Wal*Mart?
““Seeking GrowthSeeking Growth in Urban Areas, in Urban Areas,
Wal*Mart Gets Cold Wal*Mart Gets Cold Shoulder”Shoulder” —WSJ (09.25.06)
EXCELLENCE. EXCELLENCE.
INNOVATE. INNOVATE. OR. DIE.OR. DIE.
“A focus on cost-cutting and efficiency has helped many organizations weather the
downturn, but this approach will ultimately
render them obsolete. Only the Only the constant pursuit of constant pursuit of
innovation can innovation can ensure long-term ensure long-term
successsuccess.”.” —Daniel Muzyka, Dean, Sauder School of Business,
Univ of British Columbia
EVERYTHING YOU EVERYTHING YOU THOUGHT YOU KNEW THOUGHT YOU KNEW ABOUT INNOVATIONABOUT INNOVATION
IS WRONG IS WRONG
What “We” Know “For Sure” About Innovation
Big mergers Big mergers [by & large][by & large] don’t work don’t workScale is over-ratedScale is over-rated
Strategic planning is the last refuge of scoundrelsStrategic planning is the last refuge of scoundrelsFocus groups are counter-productiveFocus groups are counter-productive“Built to last” is a chimera (stupid)“Built to last” is a chimera (stupid)
Success killsSuccess kills“Forgetting” is impossible“Forgetting” is impossible
Re-imagine is a charming ideaRe-imagine is a charming idea“Orderly innovation process” is an oxymoronic phrase“Orderly innovation process” is an oxymoronic phrase
(= Believed only by morons with ox-like brains) (= Believed only by morons with ox-like brains)“Tipping points” are easy to identify …“Tipping points” are easy to identify … long after they will do you any good long after they will do you any good
“Facts” aren’t“Facts” aren’tAll information making it to the top is filteredAll information making it to the top is filtered
to the point of danger and hilarity to the point of danger and hilarity“Success stories” are the illusions of egomaniacs (and “gurus”)“Success stories” are the illusions of egomaniacs (and “gurus”)
If you believe the memoirs of CEOs you should be institutionalizedIf you believe the memoirs of CEOs you should be institutionalized“Herd behavior” (XYZ is “hot”) is ubiquitous“Herd behavior” (XYZ is “hot”) is ubiquitous
… and amusing … and amusing“Top teams” are “Dittoheads”“Top teams” are “Dittoheads”
CEOs have little effect on performanceCEOs have little effect on performance“Expert” prediction is rarely better than rolling the dice“Expert” prediction is rarely better than rolling the dice
The Mess Is the Message! LIMITS TO FORMAL
“STRATEGY.”
““Recently I asked three corporate Recently I asked three corporate executives what decisions they had made executives what decisions they had made in the last year that would not have been in the last year that would not have been
made were it not for their corporate made were it not for their corporate plans. All had difficulty identifying one plans. All had difficulty identifying one such decision. Since all of the plans are such decision. Since all of the plans are
marked ‘secret’ or ‘confidential,’marked ‘secret’ or ‘confidential,’ I asked I asked them how their comthem how their comppetitors mietitors migght ht benefit frombenefit from p possession of their ossession of their
pplans. Each answered with lans. Each answered with embarrassment that their embarrassment that their
comcomppetitors would not benefitetitors would not benefit.”.” —Russell Ackoff (from Henry Mintzberg,
The Rise and Fall of Strategic Planning)
““We are in a We are in a brawl with no brawl with no
rules.”rules.” —Paul Allaire
S.A.V.S.A.V.
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
“The The Bottleneck Bottleneck
Is at the Top Is at the Top of the of the
Bottle”Bottle”“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry dogma:
AtAt thethe totop!”p!”
— Gary Hamel/Harvard Business Review
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
“How do dominant companies
lose their position? Two-Two-thirds of the time, thirds of the time,
thethey py pick the wronick the wrongg competitor to worrcompetitor to worryy
aboutabout.”.” —Don Listwin, CEO,
Openwave Systems/WSJ
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.
READY.READY.FIRE!FIRE!AIM.AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
READY.READY.FIRE!FIRE!AIM.AIM.
Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“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
You only find You only find oil if you oil if you drill wells.drill wells.
Source: The Hunters, by John Masters, Canadian O & G wildcatter
drill.drill.
““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher
do do things.things.
““ExperimenExperiment t
fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
““You miss 100You miss 100 percent of the percent of the
shots you never shots you never take.”take.” —Wayne—Wayne Gretzky
tolerate tolerate [encourage?] [encourage?]
failurefailure
““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”
—Samuel Beckett
““Fail . Fail . Forward. Forward.
Fast.”Fast.”High Tech CEO, Pennsylvania
““FailFail faster. faster.
Succeed Succeed Sooner.”Sooner.”
David Kelley/IDEO
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
He who has the He who has the quickest quickest
“O.O.D.A. “O.O.D.A. Loops”* wins!Loops”* wins!
*Observe. Orient. Decide. Act. /Col. John Boyd
bet the bet the farmfarm
“[Immelt] is now identifying technologies with which GE
will … systematically systematically set out to build set out to build
entirely new entirely new industriesindustries”” —Strategy+Business, Fall
2005
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
Power Tools Power Tools For Power For Power StrategiesStrategies
On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than
anxious to win”anxious to win”
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?
Excellence: The SE22:
ORIGINS OF ORIGINS OF SUSTAINABLE SUSTAINABLE
ENTREPRENEURSHIENTREPRENEURSHIPP
SE22/Origins of Sustainable Entrepreneurship1. Genetically disposed to Innovations that upset apple carts 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT)Fox, Stanford University, MIT)
2. Perpetually determined to outdo oneself, even to 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)(Apple, Cirque du Soleil, Nokia, FedEx)
3. Treat History as the Enemy 3. Treat History as the Enemy (GE)(GE)
4. Love the Great Leap/Enjoy the Hunt 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)(Apple, Oracle, Intel, Nokia, Sony)
5. Use “Strategic Thrust Overlays” to Attack Monster Problems 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, (Sysco, GSK, GE, Microsoft)GSK, GE, Microsoft)
6. Establish a “Be on the COOL Team” Ethos. 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)(Most PSFs, Microsoft)
7. Encourage Vigorous Dissent/Genetically “Noisy” 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, (Intel, Apple, Microsoft, CitiGroup, PepsiCo)Microsoft, CitiGroup, PepsiCo)
8. 8. ““Culturally” as well as Culturally” as well as organizationally Decentralizedorganizationally Decentralized
(GE, J&J, Omnicom)(GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars 9. Multi-entrepreneurship/Many Independent-minded Stars (GE,(GE, PepsiCo)PepsiCo)
SE22/Origins of Sustainable Entrepreneurship
10. Keep decentralizing—tireless in pursuit of wiping 10. Keep decentralizing—tireless in pursuit of wiping outout Centralizing Tendencies Centralizing Tendencies (J&J, Virgin)(J&J, Virgin)
11. Scour the world for Ingenious Alliance Partners— 11. Scour the world for Ingenious Alliance Partners— especially exciting start-ups especially exciting start-ups (Pfizer)(Pfizer)
12. Acquire for Innovation, not Market Share 12. Acquire for Innovation, not Market Share (Cisco, GE)(Cisco, GE)
13. Don’t overdo “pursuit of synergy” 13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner)(GE, J&J, Time Warner)
14. Execution/Action Bias: Just do it … don’t obsess on14. Execution/Action Bias: Just do it … don’t obsess on how it “fits the business model.”how it “fits the business model.” (3M, J & J) (3M, J & J)
15. Find and Encourage and Promote Strong-willed/15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people Hyper-smart/Independent people (GE, PepsiCo, Microsoft)(GE, PepsiCo, Microsoft)
16. Support Internal Entrepreneurs16. Support Internal Entrepreneurs (3M, Microsoft) (3M, Microsoft)
17. Ferret out Talent anywhere/“No limits” approach to17. Ferret out Talent anywhere/“No limits” approach to retaining top talent retaining top talent (Virgin, GE, PepsiCo(Virgin, GE, PepsiCo))
SE22/Origins of Sustainable Entrepreneurship
18. Unmistakable Results & Accountability focus from18. Unmistakable Results & Accountability focus from the get-go to the grave the get-go to the grave (GE, New York Yankees, PepsiCo)(GE, New York Yankees, PepsiCo)
19. 19. Up or OutUp or Out (GE, McKinsey, big consultancies and law (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios in general)firms and ad agencies and movie studios in general)
20. Competitive to a fault! 20. Competitive to a fault! (GE, New York Yankees, News(GE, New York Yankees, News Corp/Fox, PepsiCo)Corp/Fox, PepsiCo)
21. “Bi-polar” Top Team, with “Unglued” Innovator #1,21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 powerful Control Freak #2 (Oracle, Virgin) (Watch out when(Oracle, Virgin) (Watch out when #2 is missing: Enron)#2 is missing: Enron)
22. Masters of Loose-Tight/Hard-nosed about a very few22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything elseCore Values, Open-minded about everything else (Virgin)(Virgin)
““HOW THE COAST HOW THE COAST GUARD GETS IT GUARD GETS IT RIGHT”RIGHT” —Headline, —Headline, TimeTime, 10.31.2005, 10.31.2005
**AutonomyAutonomy**FlexibilityFlexibility**“Perhaps the most important“Perhaps the most important distinction of the Coast distinction of the Coast Guard is that it trusts itself” Guard is that it trusts itself”
EXCELLENCE. EXCELLENCE.
4/40.4/40.
4/404/40
De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!
The True Logic* of Decentralization:
6 divisions = 6 “tries”6 divisions = 6 “tries”
6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT
“tries” = Max probability of “tries” = Max probability of “win”“win”
6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT
“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”
*“Driver”: Law of Large #s
Ex-e-Ex-e-cu-cu-
tion!tion!
““ExecutionExecution is is thethe j jobob of the of the
businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“Execution is a
systematic systematic processprocess of rigorously
discussing hows and whats, tenaciously following through, and
ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:
The Discipline of Getting Things Done
““Never forget Never forget
imimpplementationlementation boys. In our work it’s boys. In our work it’s
what I call the what I call the
‘‘missinmissingg 98 98 percentpercent’’ of the of the
client puzzle.”client puzzle.” —Al McDonald
Ac-count-Ac-count-a-bil-ity!a-bil-ity!
““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..
????????
Work Hard > Work Hard > Work SmartWork Smart
EXCELLENCE. EXCELLENCE.
BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.
EXCELLENCE.EXCELLENCE.ENTHUSIASM.ENTHUSIASM.
ENERGY. ENERGY. PASSION.PASSION.
““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
““Most important,Most important,
he he uppedupped the the energyenergy levellevel at at
Motorola.”Motorola.” —Fortune on Ed Zander/08.05
EnthusiasmEnthusiasmEnergyEnergy
ExuberanceExuberanceVoracious CuriosityVoracious Curiosity
Irritability/Dis-satisfactionIrritability/Dis-satisfactionRelentlessnessRelentlessnessSelf-relianceSelf-reliance
“Closer” (Execution)“Closer” (Execution)excellenceexcellence
““Everyone lives Everyone lives by by
sellinselling g something.”something.”
—Robert Louis Stevenson
EXCELLENCE. EXCELLENCE.
RELENTLESSNESS.RELENTLESSNESS.
RE-RE-LENT-LENT-LESS-LESS-NESSNESS
““One of my superstitions had One of my superstitions had always been when I started to always been when I started to
go anywhere or to do go anywhere or to do
anything,anything, not to not to turn backturn back ,, or or
stop, until the thing intended stop, until the thing intended was accomplished.”was accomplished.” —Grant
EXCELLENCE. EXCELLENCE.
AGILITY.AGILITY.
““The most The most successful successful
people are those people are those who are goodwho are good at Plan B.” at Plan B.” —James Yorke, mathematician, on chaos
theory, in The New Scientist
EXCELLENCE. EXCELLENCE. SHOWING UP.SHOWING UP.
“You must bebe the change you
wish to see in the world.”
Gandhi
2255
EXCELLENCE. EXCELLENCE.
STRETCH.STRETCH.
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
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!!
““InsanelInsanely great” y great”
"Life is not a journey to the "Life is not a journey to the grave with the intention of grave with the intention of
arriving safely in one pretty and arriving safely in one pretty and well preserved piece, but to skid well preserved piece, but to skid
across the line broadside, across the line broadside, thoroughly used up, wornthoroughly used up, worn
out, leaking oil, shouting …out, leaking oil, shouting …
‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer
EXCELLENCE. EXCELLENCE.
DRILL.DRILL.
You only You only find oil if find oil if you drillyou drill
wellswells.. —The Hunters, by John Masters,
Canadian O & G wildcatter
““It’s It’s always always showtime.”showtime.”
—David D’Alessandro, Career Warfare
EXEXCELLE CELLE ALWALWAYSAYS..