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Welcome to Tom Peters “Power. Point World”! Beyond the set of slides here, you will find at tompeters. com the last eight years of presentations, a basketful of “Special Presentations, ” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There about 3, 500 slides in the 7 -part “Master Presentation. ” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master, ” “innovation” “stuff” was scattered throughout the presentation— now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209, ” 209 “things I’ve learned along the way. ” Enjoy! Download! “Steal”—that’s the whole point!
NOTE: To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: “Showcard Gothic, ” “Ravie, ” “Chiller” and “Verdana”
Tom Peters’ EXCELLENCE. ALWAYS. Kindred Healthcare Las Vegas/25 March 2008 Part 2 of 2
Slides at … tompeters. com
Excellence 1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”
“Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence
Why in the World did you go to Siberia?
An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others. ** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners
2007. SEPTEMBER. SYDNEY. DRUCKER TRIBUTE.
“I have always believed that the purpose of the corporation is to be a blessing to the employees. ” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time.
Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which are no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed … In passionate pursuit of jointly … perceived soaring purpose and personal and community and client service Excellence.
Cause Space Decency service excellence servant leadership
You = Your calendar* *Calendars never lie
“You must be the change you wish to see in the world. ” Gandhi
“Dennis, you need a … ‘To-don’t ’ List !”
Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career? ” His immediate answer: “remember to tuck the shower curtain inside the bathtub”
2 -cent candy
“one idea. ” 1966 -2008.
“This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill 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 #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months. ” —Bloomberg by Bloomberg
“We performed more operations. ”
“You miss 100% of the shots you never take. ” —Wayne Gretzky
Joe J. Jones 1942 – 2008 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
“one point one idea/s. ” 1966 -2008.
“Execution is strategy. ” —Fred Malek
“Execution is the job of the business leader. ” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done
“XX”/Excellence in Execution = Deepest “Blue Ocean”
The “XF-50”: 50 Ways to Enhance Cross. Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”
1. It’s our organization to make work—or not. It’s not “them, ” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks. ” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping, ” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell. ) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word. ) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible, ” is a de facto imperative in a Burn-the-Silos strategy. Project managers rule!! Project managers running XF (crossfunctional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever. ) 6. 7. “Value-added Proposition” = Application of integrated resources. (From the entire supplychain. ) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “ 24/7. ” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch.
The last word: There is no “last word. ”
“How to flush $500, 000 down the toilet in one easy lesson!!” TP:
< CAPEX > People!
Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP
#1/100 “Best Companies to Work for”/2005
Brand = Talent.
“Nothing is so contagious as enthusiasm. ” —Samuel Taylor Coleridge
53 = 53
2/year = legacy.
#1 cause of employee Dis-satisfaction?
‘do’ “Leaders people. Period. ” —Anon.
“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others. ” —Warren Bennis & Patricia Ward Biederman, Organizing Genius
“The role of the Director is to create a space where the actors and actresses become more than they’ve ever been before, more than they’ve dreamed of being. ” can —Robert Altman, Oscar acceptance speech
“Leaders ‘SERVE’ people. Period. ” —inspired by Robert Greenleaf
“No matter what the situation, [the excellent manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success. ” —Marcus Buckingham, The One Thing You Need to Know
“We are a ‘Life Success’ Company. ” Dave Liniger, founder, RE/MAX
“Do one thing every day that scares you. ” —Eleanor Roosevelt
Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke. . . Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow. . . or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!
“Normal” = “o for 800”
“Every child is born an artist. The trick is to remain an artist. ” —Picasso
Single greatest act of pure imagination
Hard Is Soft Is Hard
Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships))
“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the very, very hard. game —it is the game. ” —Lou Gerstner, Who Says Elephants Can’t Dance
Hard Is Soft Is Hard
“What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation. ” —George Kohlrieser, Hostage at the Table
“The terms ‘hard facts, ’ and ‘the soft stuff’ used in business imply that data are somehow real and strong while emotions are weak and less important. ” — George Kohlrieser, Hostage at the Table
Hard Is Soft Is Hard
R. O. I. R.
Return On Investment In Relationships
“You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you. ” —Dale Carnegie
“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart. ” —Henry Clay
“The deepest human need is the need to be appreciated. ” William James
Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM
“I’m really sorry. ”
“I screwed up. ”
“It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a He was seriously interested in who you were and what you had to say. ” college president. Sara Lawrence-Lightfoot, Respect
Attending to the “Last 98%”: The New “Management Science, ” or “Hard Is Soft, Soft Is Hard” Success Is a Function of*. . .
S = ƒ(#&DR; -2 L, -3 L, 4 L, I&E) Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization S = ƒ(SD>SU) Sucking down is more important than sucking up—the idea is to have the entire organization working for you. S = ƒ(#non-FF, #non-FL) Number of friends, number of lunches with people not in my function S = ƒ(#FF) Number of friends in the finance organization
“It helps to know people in. . . high places!” “It helps more to know people in. . . low places!”
S = ƒ(OF) Number of oddball friends S = ƒ(PDL) Purposeful, deep listening—this is very hard S = ƒ(“DSTM, ” EH, TTAGFG) Don’t shoot the messenger—embrace him! Truth-tellers are gifts from God! S + ƒ(#EODD 3 MC) Number of end-of-the-day difficult (you’d rather avoid) “ 3 minutecalls” that sooth raw feelings, mend fences, etc. S = ƒ(UFP, UFK, OAPS) Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc.
S = ƒ(A#C, PTS/“OLC”, SAPA) Absolute # of consultations, perception of being taken seriously (Responsible for “one line of code”), small acts of public appreciation S = ƒ(SU) Showing up (Woody Allen, Delaware’s ridiculous influence on the Constitution of the USA) S = ƒ(1 D) Seeking the assignment of writing first drafts, minutes, etc. (1787) S = ƒ(#SEAs) Number of solid relationships with Executive Assistants S = ƒ(%UL/w-m) % useful lunches per week, month S = ƒ(FG, FOC-BOF, CMO) Favors given, favors owed collectively, balance of favors, conscious management thereof
S = f(CPRM, TS) Conscious-planned Relationship management, time spent thereon
S = ƒ(TN/d, FG/m, AA/d) Thank you notes per Day, flowers given per Month, Acts of Appreciation per Day S = ƒ(WLHAO) Willingness to laugh heartily at oneself S = ƒ(PTA 100%A“T”S, E“NMF, TTT) Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango) S = ƒ(AMR, NBS-SG) Acceptance of mutual responsibilities for all affairs, no blameshifting, scape-goating S = ƒ(APLSLFCT) Awareness, perception of little snubs—and lightening fast correction thereof S = ƒ(G) Grace S = ƒ(GA) Grace toward adversary
F LO W E R POWER P
S = ƒ(GW) Grace toward the wounded in bureaucratic firefights S = ƒ(PD) Purposeful decency S = ƒ(MB“TSS”MR) Purposeful management of this Soft Stuff by people reporting to me S = ƒ(EC, MMO) Emotional connection, mgt & maintenance of S = ƒ(IMDOP) Investment in Mastery of detailed organizational processes S = ƒ(H-TS) Time spent on Hiring
S= ƒ(TSHRO) Time spent. . . Hurdle Removing for Others
S = ƒ(TSPD, TSP-L 1) Time spent on promotion decisions, especially for 1 st level managers S = ƒ(%“SS, ” H-PD) % soft stuff involved in Hiring, Promotion decisions S = (TWA, P, NP) Time wandering around, purposeful, non-planned S = ƒ(SBS) Slack built into Schedule
S = f(%TM“TSS, ” PM“TSS, ” D“TD”“TSS”) Success is a function of: % of time, measured, on this Soft Stuff, purposeful management of this Soft Stuff, daily “to-do” concerning “this Soft Stuff”
Q: But where’s the beef? A: This is the beef!
O(B) = f(XX) O(B), the “blueness” of one’s “ocean” [think Blue Ocean Strategy, the popular book], is directly proportional to one’s e. Xcellence in e. Xecution/XX, per me. [If one finds a “strategic” “blue ocean, ” one will, especially in today’s world, copied immediately; the only “defense”— possibility of sustaining success—is XX/e. Xcellence in e. Xecution. Think EXXON MOBIL; they and their rivals know where the hydrocarbons are—but EXXON MOBIL handily out -executes the competition. ]
S(O) = f(XXFX) The single most important cause of failure to execute effectively is the lack of effective cross-functional communication-execution. Hence, Organizational Success is a e. Xcellence (X) in crossfunctional (XF) e. Xecution (X). Attached function of as Appendix II is my: The “XF-50”: 50 Ways to Enhance Cross. Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions. ’”
S(O) = f(X“SIT”) In 1982 in In Search of Excellence, Bob Waterman and I wrote about the idea of “MBWA, ” or Managing By Wandering Around; we came across “MBWA” at Hewlett-Packard, then a much smaller company, and it was love at first sight! For reasons described in Appendix III, I recently returned to the centrality of that notion—and created a list of 50 “Have Yous. ” That is, instead of worrying ceaselessly about “strategy” and “blue oceans, ” how good a job have you done at Staying In Touch with your extended internal and external “organizational family”? That is: S(O), Organizational X “SIT, ” e. Xcellence at Staying In Touch. Success, is a function of
“Hard” is “soft. ” “Soft” Is “hard. ”
Who buys “it” I: Sunset for men!
“Forget China, India and the Internet: Economic Growth Is Driven by Women. ” —Headline, Economist, April 15, 2006, Leader, page 14
“Women are the majority market” —Fara Warner/The Power of the Purse
most significant variable in every “The sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender. ” —Jeffery Tobias Halter, Selling to Men, Selling to Women
The Perfect Answer Jill and Jack buy slacks in black…
“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics, ’ the economy as thought out and practiced by a woman. ” —Aude Zieseniss de Thuin, Financial Times, 10. 03. 2006
“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ Business. Week
10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job. ” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men?
CEO/F: “So …. ” TP: “Okay, okay, you got me. Ex. Com, at start, 2 F of 11, 18 months later, 9 F of 18. ”
“top line, ” anyone?
The Commerce Bank Model “cost cutting is a death spiral. ” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman
“Our whole story is growing revenue. ” —Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting)
R C *Chief O* Revenue Officer
And in conclusion …
Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson
The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
And in conclusion …
The Common CEO Lament: “If everything had been good, then everything would have been fine. ”* *Annual Reports: Good, “Our strategy … Bad, “Unexpected …”
Black Swans: This is how you earn your pay!* ** *See: The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb *WSC: “When the seas are calm all ships alike show mastership in sailing. ”
“Excellence can be obtained if you: . . . care more than others think is wise; . . . risk more than others think is safe; . . . dream more than others think is practical; . . . expect more than others think is possible. ” Source: Anon. (Posted @ tompeters. com by K. Sriram, November 27, 2006 1: 17 AM)
If Not Excellence, What?