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..