Tom Peters’ Excellence. Always. Shanghai/25-27 April 2009

Tom Peters’Tom Peters’

Excellence.Excellence.Always. Always.

Shanghai/25-27 April 2009Shanghai/25-27 April 2009

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure

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Part ONE … EXCELLENCE. ALWAYS./25.04Part ONE … EXCELLENCE. ALWAYS./25.04Part TWO … INNOVATION IMPERATIVE,Part TWO … INNOVATION IMPERATIVE, the NEXT STEP/26.04 the NEXT STEP/26.04Part THREE … PEOPLE-PEOPLE-PEOPLE.Part THREE … PEOPLE-PEOPLE-PEOPLE. PERIOD./26-7.04 PERIOD./26-7.04Part FOUR … LEADERSHIP for EXCELLENCEPart FOUR … LEADERSHIP for EXCELLENCE & INNOVATION/27.04 & INNOVATION/27.04

Part THREEPart THREE

PeoPeo--pleple

Tom Peters’Tom Peters’

Excellence.Excellence.Always. Always. People.People.Period.Period.

Shanghai/25-26 April 2009Shanghai/25-26 April 2009

Slides at …Slides at …

tompeters.comtompeters.com

If not Excellence, If not Excellence, What? If Not What? If Not Excellence Now, Excellence Now,

When? When? Excellence. Always. Excellence. Always.

Period. Period.

people power:people power: The The

talent talent 3838

11.. People People First!First!

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

2.2. Priority! Priority! First Things First Things

First!First!

TP: TP: “How to throw away

$500,000 in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

33.. The Alpha. The Alpha. The Omega. And The Omega. And

everything in everything in between. between.

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

44.. FUNDAMENTAL FUNDAMENTAL PREMISE: We Are in PREMISE: We Are in

an Age of Talent/ an Age of Talent/ Creativity/ Creativity/

Intellectual-capital Intellectual-capital Added.Added.

Agriculture Age (farmers)

Industrial Age (factory workers)

Information Age (knowledge workers)

Conceptual AgeConceptual Age (creators and empathizers)

Source: Dan Pink, A Whole New Mind

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.the Value-added Ladder.

““Human cHuman creativitreativity y is the is the ultimateultimate

economic economic resource.”resource.” —Richard Florida,

The Rise of the Creative Class

55.. Diversity = Diversity = creativity. creativity. Period. No Period. No Substitute.Substitute.“Strategic” “Strategic”

Issue.Issue.

““Are thereAre there

enouenougghh weirdweird

ppeoeopplele in the in the lab these days?”lab these days?” —V.

Chmn., pharmaceutical house, to a lab director

CM Prof Richard Florida on “Creative CM Prof Richard Florida on “Creative

CapitalCapital”: ”: “You cannot get a “You cannot get a technologically technologically

innovative place … innovative place … unless it’s open to unless it’s open to

weirdness, eccentricity weirdness, eccentricity and difference.”and difference.”

Source: Source: New York TimesNew York Times/06.01.2002/06.01.2002

66.. Talent Talent “Excellence” in “Excellence” in Every Part of Every Part of

Every Every Organization.Organization.

WeWeggmans:mans:

#1/10#1/1000

““Best Companies to Best Companies to

Work for”Work for”//20052005

Groceries!Groceries!

77.. Talent Talent “Excellence” “Excellence” Stretches Far Stretches Far Beyond Our Beyond Our

Borders.Borders.

We We becomebecome who we who we

spend time spend time with.with.

Measure “Strangeness”/Portfolio QualityMeasure “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 LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

88.. P.O.T./ P.O.T./ Pursuit Of Pursuit Of Talent = Talent =

OBSESSION.OBSESSION.

““The leaders of Great The leaders of Great

Groups Groups lovelove talent talent and know where to find and know where to find

it. They it. They revel revel in the in the talent of others.”talent of others.”

—Warren Bennis & Patricia Ward Biederman, Organizing Genius

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

99.. Talent Masters Talent Masters Understand Understand

Talent’s Talent’s Intangibles.Intangibles.

A A FewFew Lessons from the Arts Lessons from the Arts

Each hired and developed and evaluated in unique waysEach hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways =(23 contributors = 23 unique contributions = 23 pathways =

23 personalities = 23 sets of motivators) 23 personalities = 23 sets of motivators)

Attitude/Enthusiasm/Energy paramountAttitude/Enthusiasm/Energy paramountRe-lent-less!Re-lent-less!

“Practice is cool”“Practice is cool” (G Leonard/(G Leonard/MasteryMastery))

Team Team and and individual individual Aspire to Aspire to EXCELLENCE EXCELLENCE = Obvious= Obvious

Ex-e-cu-tionEx-e-cu-tionTalent = Brand = DuhTalent = Brand = Duh“The Project” rules“The Project” rulesEmotional languageEmotional language

Bit players. No.Bit players. No.B.I.W.B.I.W. (everything)(everything)

Delta events = Delta rostersDelta events = Delta rosters (incl leader/s)(incl leader/s)

1010.. HR Is HR Is “Cool.”“Cool.”

Are you …Are you …

“Rock Stars “Rock Stars of theof the

Age of Talent”? Age of Talent”?

1111.. HR Sits at HR Sits at The Head The Head

Table.Table.

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

FirstFirst:: Separating financial forecasting and performance Separating financial forecasting and performance measurement.measurement. Performance measurement based, as it usually is, on budgeting Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is 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 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 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 actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. gamed-abstract plan developed last year.

SecondSecond:: Putting HR on a par with finance and marketing.

1212.. There Is There Is an “HR an “HR

Strategy”/ Strategy”/ “HR Vision”“HR Vision”

What’s your company’s … EVP/EVP/IBPIBP?*

*Employee Value Proposition, per Ed Michaels et al.,

The War for Talent; IBP/Internal Brand Promise per TP

EVP/IBPEVP/IBP = = Remarkable Remarkable challenge, rapid professional challenge, rapid professional growth, respect, satisfaction, growth, respect, satisfaction,

fun, stunning opportunity, fun, stunning opportunity, exceptional reward, amazing exceptional reward, amazing

peer group, full membership in peer group, full membership in Club Adventure, maximized Club Adventure, maximized

future employabilityfuture employability

Source: Ed Michaels, Source: Ed Michaels, The War for Talent; TPThe War for Talent; TP

1313.. Acquire Acquire for Talent!for Talent!

Omnicom's acquisitionsOmnicom's acquisitions:: “not for “not for

size per se”; size per se”; “buying “buying talent;”talent;” “deepen a “deepen a

relationship with a client.”relationship with a client.”

Source: Source: Advertising AgeAdvertising Age

1414.. There Is a There Is a blockbuster blockbuster Recruitment Recruitment

Strategy.Strategy.

““Busy Executives Busy Executives Fail To Give Fail To Give Recruiting Recruiting

Attention It Attention It Deserves”Deserves”

—Headline, —Headline, WSJWSJ, 1121.05, 1121.05

#1.#1.StrategicStrategic..Priority.Priority.Period.Period.

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business and yet remains and yet remains

woefully woefully misunderstood.”misunderstood.”

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,

Geoff Smart and Randy StreetGeoff Smart and Randy Street

““Development can help great Development can help great

people be even better—people be even better— but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

1515.. There is a There is a “secret” to “secret” to

Satisfied people. Satisfied people.

#1#1 cause cause

of ofDis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the first-first-

line manaline managger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

Promotion Promotion decision is decision is

““StrategicStrategic”!*”!*

BestBest Training Training Course in the Course in the

company!company!*Never “Fill the slot.”*Never “Fill the slot.”

1616.. There Is a There Is a FORMAL FORMAL

Leadership Leadership Development Development Strategy. Strategy.

GE/Crotonville!GE/Crotonville!

Enrico’s Assignment Enrico’s Assignment Wasn’t a Dead End!Wasn’t a Dead End!

1717.. Understand Understand Your Legacy! Your Legacy!

2/2/yearyear = =

legacy.legacy.

1818.. There Is a There Is a FORMAL FORMAL

STRATEGIC HR STRATEGIC HR Review Process.Review Process.

““In most companies, the Talent Review Process is a In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool to 50 people by name. They talk about Talent Pool

strengthening issuesstrengthening issues.. The Talent The Talent Review Process is a Review Process is a

contact sport at GE; it has contact sport at GE; it has the intensity and the the intensity and the

importance of the budget importance of the budget process at most process at most

companiescompanies.”.”—Ed Michaels

1919.. “People”/ “People”/ Talent” Reviews Talent” Reviews Are the Are the FIRST FIRST

Reviews.Reviews.

The Loudest The Loudest Signal!Signal!

2020.. HR Strategy HR Strategy = = BUSINESSBUSINESS

Strategy.Strategy.

Wegmans: #1/Wegmans: #1/ 100 Best Companies to Work for 100 Best Companies to Work for

84%: Grocery stores “are all alike”84%: Grocery stores “are all alike”46%: additional spend if customers have an “emotional connection” to a 46%: additional spend if customers have an “emotional connection” to a

grocery store rather than “are satisfied” (Gallup)grocery store rather than “are satisfied” (Gallup)

“Going to Wegmans is not just shopping, it’s an event.” “Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, —Christopher Hoyt, grocery consultantgrocery consultant

““You cannot separate You cannot separate their strategy as a their strategy as a retailerretailer from their from their

strategy as an strategy as an emempploloyyerer.”.” —Darrell Rigby, Bain & Co.—Darrell Rigby, Bain & Co.

2121.. Make it a Make it a “Cause Worth “Cause Worth

Signing Up Signing Up For.”For.”

““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)

2222.. Pursue Pursue the Best! the Best!

“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

2323.. Ensure that Ensure that the Review the Review Process Has Process Has INTEGRITY.INTEGRITY.

25 = 25 = 100*100** “But what do I do that’s more important

than developing people? I don’t do the damn work. They do.”—GK

2424.. Training I: Training I: Train! Train! Train! Train!

Train!Train!

26.326.3

2525.. Training II: Training II: 100% “Business 100% “Business

People.”People.”

New Work SurvivalKit.2009New Work SurvivalKit.2009

1. MASTERY!MASTERY! (Best/Absurdly Good at Something!)2. “Manage” to Legacy“Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)3. A “USP”/UNIQUE SELLING PROPOSITIONA “USP”/UNIQUE SELLING PROPOSITION4. Rolodex ObsessionRolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. ENTREPRENEURIAL INSTINCTENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSERCEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)7. Master of ImprovMaster of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)8. Sense of HumorSense of Humor (A willingness to Screw Up & Move On)9. Comfortable with Your SkinComfortable with Your Skin (Bring “interesting you” to work!)10. Intense Appetite for TechnologyIntense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?)11. EMBRACE “MARKETING”EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)12. PASSION FOR RENEWALPASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE!EXECUTION EXCELLENCE! (Show up on time! Leave last!)

2626.. Training Training III: 100% III: 100% LEADERS.LEADERS.

““I start with the I start with the premise that the premise that the

function of leadership function of leadership is to produce more is to produce more leaders, not more leaders, not more followers.”followers.”——Ralph NaderRalph Nader

2727.. Training IV: Training IV: Boss as Trainer-Boss as Trainer-

in-Chief.in-Chief.

““Workout” = Workout” = 2424 DPYDPY in the Classroom in the Classroom

28.28. Training V: Training V: The REAL The REAL

Bedrock of the Bedrock of the “Talent Thing.”“Talent Thing.”

“My wife and I went to a [kindergarten] parent-teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator conference and were informed that our budding refrigerator

artist, Christopher, would be receiving a grade of artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any childUnsatisfactory in art. We were shocked. How could any child

—let alone our child—receive a poor grade in art at such a —let alone our child—receive a poor grade in art at such a

young age?young age? His teacher His teacher informed us that he had informed us that he had refused to color within refused to color within the lines, which was a the lines, which was a state restate reqquirement for uirement for demonstratindemonstratingg ‘ ‘ggrade-rade-

level motor skillslevel motor skills.’.’ ” ” —Jordan —Jordan

Ayan, AHA!Ayan, AHA!

2929.. RESPECT!RESPECT!

““What creates What creates trust, in the end, is trust, in the end, is

the leader’s the leader’s manifest resmanifest resppectect

for the followers.”for the followers.” — Jim O’Toole, — Jim O’Toole, Leading ChangeLeading Change

3030.. MBWA: MBWA: Visible Visible

Leadership!Leadership!

MBWMBWAA

3131.. Promote for Promote for “people skills.”“people skills.” (THE REST IS (THE REST IS

DETAILS.)DETAILS.)

““When assessing candidates, the When assessing candidates, the first thing I looked for was energy first thing I looked for was energy

and enthusiasm for execution. and enthusiasm for execution. Does she talk about the thrill Does she talk about the thrill of of ggettinettingg thin thinggs done, the s done, the

obstacles overcome, the role obstacles overcome, the role her her ppeople eople pplayedlayed —or does she —or does she keep wandering back to strategy keep wandering back to strategy

or philosophy?”or philosophy?” —Larry Bossidy, —Larry Bossidy,

Honeywell/AlliedSignal, in Honeywell/AlliedSignal, in ExecutionExecution

3232.. Honor Honor Youth.Youth.

““Why focus on these late teens and twenty-Why focus on these late teens and twenty-

somethings? somethings? Because theBecause theyy are the are the first first yyounoungg who are both in a who are both in a position to change the world, position to change the world,

and are actualland are actuallyy doing so doing so.. … For … For the first time in history, children are more the first time in history, children are more

comfortable, knowledgeable and literate than comfortable, knowledgeable and literate than their parents about an innovation central to their parents about an innovation central to

society. … The Internet has triggered the first society. … The Internet has triggered the first industrial revolution in history to be led by the industrial revolution in history to be led by the

young.”young.”—The Economist—The Economist

3333.. Leader Leader Source #1!Source #1!

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity.. —Judy B. Rosener, America’s Competitive Secret: Women Managers

3434.. We Are All We Are All Unique. Unique.

53 = 53 = 5353

Beware Standardized EvalsBeware Standardized Evals:: One One size size NEVERNEVER fits fits all. One size fits all. One size fits

one.one. PeriodPeriod..

3535.. Capitalize Capitalize

on Strengths. on Strengths.

““The key difference between The key difference between checkers and chess is that in checkers and chess is that in checkers the pieces all move checkers the pieces all move

the same way, whereas in the same way, whereas in chess all the pieces move chess all the pieces move

differently. … differently. … Discover what Discover what is uniis uniqque about each ue about each pperson and caerson and cappitalizeitalize

on iton it.”.” —Marcus Buckingham,—Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

“The mediocre manager believes that The mediocre manager believes that most things are learnable and therefore most things are learnable and therefore that the essence of management is to that the essence of management is to

identify ach person’s weaker areas and identify ach person’s weaker areas and eradicate them. The great manager eradicate them. The great manager

believes the opposite.believes the opposite. He believes He believes that the most influential that the most influential

qualities of a person are innate qualities of a person are innate and therefore that the essence and therefore that the essence

of management is to deploy of management is to deploy these innate qualities as these innate qualities as

effectively as possible and so effectively as possible and so drive performance.”drive performance.” —Marcus —Marcus Buckingham, Buckingham, The One Thing You Need to KnowThe One Thing You Need to Know

3636.. Bosses Bosses “Win People “Win People

Over.”Over.”

PJ: “Coaching“Coaching is winning is winning

players players over.”over.”

3737.. GOAL: GOAL: Voyages of Voyages of

MutualMutual Discovery. Discovery.

““The organization The organization would ultimately win would ultimately win not because it gave not because it gave agents more money, agents more money, but because it gave but because it gave them a chance for them a chance for

better lives.”better lives.” ——Everybody WinsEverybody Wins, Phil Harkins & Keith Hollihan, Phil Harkins & Keith Hollihan

3838.. Talent Talent = Brand.= Brand.

Brand Brand = =

Talent.Talent.

If not Talent If not Talent Excellence, What? Excellence, What?

If Not Talent If Not Talent Excellence Now, Excellence Now, When? Talent. When? Talent.

Brand. Excellence.Brand. Excellence.Period. Period.

If not Excellence, If not Excellence, What? If Not What? If Not Excellence Now, Excellence Now,

When? When? Excellence. Always. Excellence. Always.

Period. Period.

Tom Peters’ Excellence. Always. Shanghai/25-27 April 2009

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