Tom Peters’Tom Peters’

Re-imagine.Re-imagine.EXCELLENCE. EXCELLENCE.

ALWAYS.ALWAYS.CIDEM/Barcelona/18October2006CIDEM/Barcelona/18October2006

Slides at …

tompeters.comtompeters.com

EXCELLENCE. EXCELLENCE.

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

2255

““Conventional banks ask their clients to come to their office. It’s a Conventional banks ask their clients to come to their office. It’s a

terrifying place for the poor and illiterate. …terrifying place for the poor and illiterate. … The entire The entire Grameen Bank system runs on the Grameen Bank system runs on the principle that people should not principle that people should not

come to the bank, the bank should come to the bank, the bank should go to the peoplego to the people. … . … If any staff If any staff member is seen in the office, it member is seen in the office, it

should be taken as a violation of should be taken as a violation of the rules of the Grameen Bankthe rules of the Grameen Bank.. … It is … It is

essential that [those setting up a new village Branch] have no essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as office and no place to stay. The reason is to make us as different as

possible from government officialspossible from government officials.” .” —Muhammad Yunus

Jim’s Jim’s GroupGroup

EXCELLENCE. EXCELLENCE.

SIBERIA.SIBERIA.

“FordFord, GMGM and ChrChryyslersler

do not just make cars

expensively … they make badbad cars

expensively.” —Investec analyst, International Herald, 0805.06

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

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

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.

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

“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

““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

The Mess Is The Mess Is the the

Message!Message! Period!Period!

Innovation Innovation TacticsTactics

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

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

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

make the design perfect, we’re already on prototype

version No. 5No. 5. By the time our rivals are ready with wires and screws, we are on version

No. 10No. 10.. It It ggets back to ets back to pplanninlanningg versus actin versus actingg: We act : We act from dafrom dayy one; others one; others p plan how lan how

to to pplan—for monthslan—for months.”.” —Bloomberg by Bloomberg

Excellence1982: The Bedrock “Eight Basics”

1.1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, 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”

tolerate tolerate [encourage?] [encourage?]

failurefailure

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

re-imagine re-imagine the “value the “value

added” added” equationequation

The [NEW] “Value-added Ladder”

lovemarkslovemarksdreams come truedreams come true

spellbinding Experiencesspellbinding Experiences Gamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials

“Rebel Lifestyle!”/Premier “Tattoo Brand”/“Lovemark”

“What we sell is the ability “What we sell is the ability for a 43-year-old for a 43-year-old

accountant to dress in accountant to dress in black leather, ride through black leather, ride through

small towns and have small towns and have people be afraid of him.”people be afraid of him.”

Harley-DavidsonHarley-Davidson exec,Results-Based Leadership

[totally] re-[totally] re-imaginee the imaginee the

business around the business around the two staggering two staggering

“new” opportunities“new” opportunities

Women’s Trifecta+Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline, Economist, April 15, 2006, Leader, page 14

9494%% of loans to of loans to ……

womenwomen***M*Microlending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

We We becomebecome who we who we

spend time spend time with!with!

Measure “Strangeness”/Portfolio QualityStaffStaff

ConsultantsConsultantsVendorsVendors

Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners

CustomersCustomersCompetitors 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

“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

EXCELLENCE.1966. 2006.

4/404/40

De-centralizationDe-centralizationexecutionexecution

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

EXCELLENCE. EXCELLENCE.

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

INVITE THEM INVITE THEM TO JOIN US IN TO JOIN US IN A JOURNEY TO A JOURNEY TO EXCELLENCE!EXCELLENCE!

“The role of the Director is to create a space where the actor or actress can become become more than themore than theyy’ve ever ’ve ever been beforebeen before, , more than more than

thetheyy’ve dreamed of ’ve dreamed of beinbeing.”g.” —Robert Altman, Oscar acceptance

LIVE FOR LIVE FOR TALENT!TALENT!

Our MissionTo 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 = Talent.Brand = Talent.TALENT = TALENT =

EVERYTHINGEVERYTHING

““THE FUTURE BELONGS THE FUTURE BELONGS TO … SMALL TO … SMALL

POPULATIONS … WHO POPULATIONS … WHO BUILD BUILD EMPIRESEMPIRES OF THEOF THE

MINDMIND … AND WHO IGNORE THE TEMPTATION OF—OR DO NOT HAVE THE

OPTION OF—EXPLOITING NATURAL RESOURCES.”

Source: Juan Enriquez/As the Future Catches You

“Better By Design”: A National Strategy

NZ = DesignNZ = Design ExcellenceExcellence

Taiwan, Your Taiwan, Your Partner in Partner in InnoValueInnoValue

Poster/Bucharest/03.06

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

““People want to be part People want to be part of something larger of something larger

than themselves. They than themselves. They want to be part of want to be part of

something they’re really something they’re really proud of, that they’ll proud of, that they’ll

fight for, sacrifice for , fight for, sacrifice for , trust.”trust.”

—Howard Schultz, Starbucks (IBD/09.05)

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

—Samuel Taylor Coleridge

RELENTLESS!RELENTLESS!““Success seems to be Success seems to be

largely a matter of largely a matter of hanging on after hanging on after

others have let go.”others have let go.” —William Feather, author

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

PURPOSE.PURPOSE.PASSION.PASSION.

PERSISTENCPERSISTENCE.E.

PEOPLE.PEOPLE.

EXEXCELLE CELLE ALWALWAYSAYS..