tom peters’ excellence. always. version.234 women-boomers-geezers 03 november 2006

Tom Peters’Tom Peters’

EXCELLENCEXCELLENCEE. . ALWAYSALWAYS..

Version.234Version.234Women-Boomers-GeezersWomen-Boomers-Geezers

03 November 200603 November 2006

Thank Thank You!You!

FFLLOOWWEERRPPOOWWEERR

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

The … Jim Jim Jeffords Jeffords oversighoversigh

t!t!

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE REAL PROBLEMREAL PROBLEM.* **

*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE

CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF

THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A THAT RESULTED IN A COMPLETE RUPTURE.COMPLETE RUPTURE.

““WHY NOT WHY NOT JUST TELL JUST TELL

THE THE TRUTH?”TRUTH?”

—Raymond Carver

““If God spoke to me by saying, ‘Mark, you’re If God spoke to me by saying, ‘Mark, you’re down to your last three words: What woulddown to your last three words: What would you want to say to your fellow humans that you want to say to your fellow humans that

would make the most positive impact?’ It would would make the most positive impact?’ It would be a close call between be a close call between Love Thy NeighborLove Thy Neighbor

and and Wash Your HandsWash Your Hands

.”.”—Mark Pettus, M.D., —Mark Pettus, M.D., The Savvy PatientThe Savvy Patient

“The most important thing you can do to keep “The most important thing you can do to keep

from getting sick is tofrom getting sick is to wash wash your handsyour hands.”.” ——CDCCDC/National Center /National Center

for Infectious Diseasesfor Infectious Diseases

The older I The older I get the get the lessless boring the boring the “basics” “basics” become!become!

A store isA store is a store is a store is a store is a a store is a

storestore … …

The The lastlast word: word: There There

is is nono last last word.word.

Flat as a Pancake (Or Worse)Flat as a Pancake (Or Worse)

Wal*Mart … Wal*Mart … Dell … Intel Dell … Intel

… Home … Home Depot … Depot …

Microsoft … Microsoft … GEGE

Tom Peters’Tom Peters’

EXCELLENCEXCELLENCEE. . ALWAYSALWAYS..

Discover NetworkDiscover NetworkMerchant Advisory CouncilMerchant Advisory CouncilChicago/02 November 2006Chicago/02 November 2006

5/45/422

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

HA. HA.

“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: 39 members of the Class of ’17 were

alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market;

just 2 (2%), GE & Kodak,,

outoutpperformederformed the market from 1917 to 1987. the market from 1917 to 1987.

Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

“Ford, GM and Chrysler do not just make cars expensively … they make bad

cars expensively.” —

Investec analyst, International Herald, 0805.06

HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA. HA.

HA. HA.

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

Message/Implication: Message/Implication: go for itgo for it!

C.E.O.C.E.O. to

C.D.O.C.D.O.

EXCELLENCE. EXCELLENCE.

ALLALL . YOU. . YOU. NEED. TO. NEED. TO.

KNOW.KNOW.

““20-20-minute minute

rule”rule” —Craig Johnson/30 yrs


ALLALL . YOU. . YOU. NEED. TO. NEED. TO.

KNOW.KNOW.

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

““The The [Union senior][Union senior] officers rode past officers rode past the Confederates smugly without any the Confederates smugly without any

sign of recognition except by one. sign of recognition except by one.

‘When ‘When GeneralGeneral GrantGrant reached reached the line of ragged, filthy, bloody, the line of ragged, filthy, bloody,

despairing prisoners strung out on despairing prisoners strung out on each side of the bridge, each side of the bridge, he lifted his he lifted his hat and held it over his head until he hat and held it over his head until he

ppassed the last man of that living assed the last man of that living funeral cortefuneral corteggee. He was the only . He was the only officer in that whole train who officer in that whole train who recognized us as being on therecognized us as being on the

face of the earth.’*”face of the earth.’*”

*quote from the diary of a Confederate soldier

EXCELLENCE.EXCELLENCE.

ALL. YOU. NEED. ALL. YOU. NEED. TO. KNOW. TO. KNOW. ANYANYWHERE.WHERE.

ANYANY MARKET. MARKET. ANYANY TIME. TIME.

7X.7X. 730A-730A-800P. 800P. F12AF12A..**

*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

#1/10#1/1000

“Best Companies to Work for”/2005

EXCELLENCE.EXCELLENCE.

ALL. YOU. NEED. ALL. YOU. NEED. TO. KNOW. TO. KNOW. ANYANYWHERE.WHERE.

ANYANY MARKET. MARKET. ANYANY TIME. TIME.

Jim’s Jim’s GroupGroup


SIBERIA.SIBERIA.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

Raging Success Raging Success == P P-SQUARED-SQUARED. .

CC. . EE-CUBED-CUBED..

PPeople.eople.PProduct.roduct.

CCustomers.ustomers.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 Entrepreneurship

4. Productivity Through 4. Productivity Through PeoplePeople5. 5. HandsHands OnOn, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting

7. 7. SimpleSimple Form, Form, LeanLean StaffStaff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

““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

“Pierson’s entire focus was makingmaking airplanesairplanes. Forgeard’s focus was

blurredblurred byby ambition ambition . He wanted to move up and

become co-chairman of EADS.” —Newsweek, 1023.06


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

““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


INNOVATE. INNOVATE. ALL. ALL. WRONGWRONG..

More Than $$$$

#1#1 R&D

spending, last 25 years/USA?

“I don’t believe in

economies of scale. You don’t get better by being bigger. You get worse.” —

Dick Kovacevich/Wells Fargo

“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 are success stories

out there, but at this moment I draw a

blank.” —Mark Sirower, The Synergy Trap


INNOVATE. INNOVATE. AXIOMATICAXIOMATIC..

The The MessMess Is Is the the

MessageMessage!! PeriodPeriod!!

““We are in a We are in a brawl with no brawl with no

rules.”rules.” —Paul Allaire

S.A.V.S.A.V.


INNOVATE. INNOVATE. TACTICS..

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

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1

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

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

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

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”

Axiom: “We are in a brawl “We are in a brawl with no rules.”with no rules.” (PA)

Implication: “The world will “The world will not be kind to those who not be kind to those who ‘play by the rules’.”‘play by the rules’.”** (TP)

Strategy: S.A.V./R.F.A.S.A.V./R.F.A. (RP/TP+)

*Axiom: The microprocessor plays by the rules.

tolerate tolerate [encourage?] [encourage?]

failurefailure

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

BonusBonus

Think!Think!vs.vs.

do!do!Tom petersTom peters

27 October 200627 October 2006

Speed/ Speed/ TempoTempo

“the FedFedExEx EconomyEconomy”

—headline/New York Times/10.08.05

“Any3”:

Anything/ Anything/ Anywhere/ Anywhere/ AnytimeAnytime

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

added” added” equationequation

$55$55BB

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

UpUp

the Value-added Ladder.

The [NEW] “Value-added Ladder”

Gamechanging Solutions/ Gamechanging Solutions/ Implemented Implemented

Customer successCustomer successServices/Transactions

Manufactured Goods/Things Extracted Raw Materials

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ HosHosppital’s ital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

“Experiences are as distinct

from services as services are from

goods.” —Joe Pine & Jim Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership


spellbindingspellbinding ExperiencesExperiences Gamechanging SolutionsGamechanging Solutions

ServicesGoods

Raw Materials

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We We

convert ‘needs’ into convert ‘needs’ into ‘dreams.’ Sales are the ‘dreams.’ Sales are the

inevitable resultinevitable result.”.” — Judy George,

Domain Home Fashions

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

UpUp

the Value-added Ladder.


dreamsdreams comecome truetruespellbindingspellbinding ExperiencesExperiences GamechangingGamechanging SolutionsSolutions

ServicesGoods

Raw Materials

Dream Merchant:Dream Merchant:

IBMIBM

[totally] re-imagine [totally] re-imagine the business around the business around the the twotwo staggering staggering

“new” opportunities“new” opportunities

women.women.BOOMERSBOOMERS

..GEEZERS.GEEZERS.

women.women.BOOMERBOOMER

S.S.GEEZERSGEEZERS

..

The Copenhagen (Self) Pact re “This The Copenhagen (Self) Pact re “This Topic”:Topic”:

*Early!*Early!*Loud!*Loud!*Repetitive!*Repetitive!*Aggressive!*Aggressive!**UnUnfriendly!/rude!/friendly!/rude!/ insulting! insulting!

womenwomen

““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

Women’sWomen’s Trifecta+ Trifecta+

**BuyBuy * *WealthWealth

**LeadLead

++ECLIPSE OF ECLIPSE OF MALESMALES

(Old/Retire; Young/Poorly educated)

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)

1.1. Women’s CONSUMER GOODS Women’s CONSUMER GOODS purchasespurchases. . 2.2. Women’s COMMERCIAL GOODS Women’s COMMERCIAL GOODS purchasespurchases..3.3. WOMEN WOMEN AREARE THE MARKET. THE MARKET. NotNot an an “initiative.” “initiative.” 4.4. WomenWomen--ownedowned BUSINESSES BUSINESSES (absolute #s, (absolute #s, acceleration, relative growth). acceleration, relative growth).

5.5. Women’s “brand” of Women’s “brand” of LEADERSHIP LEADERSHIP SKILLS.SKILLS.6.6. women’s strengths women’s strengths matchmatch needs of the needs of the newnew “value-added ladder.” “value-added ladder.”7.7. Women’s DRAMATICALLY INCREASING- Women’s DRAMATICALLY INCREASING-commandingcommanding WEALTHWEALTH—absolute, relative. —absolute, relative. (Jobs. Longevity.(Jobs. Longevity. Education. Entrepreneurial. Decline of BOYS. Retirement of Education. Entrepreneurial. Decline of BOYS. Retirement of MEN/Senior MEN.) MEN/Senior MEN.)

8.8. DEMOGRAPHICDEMOGRAPHIC TSUNAMITSUNAMI. WOMEN. Women . WOMEN. Women as as solo HEADs-OF-HOUSEHOLD. THE WOMaN- solo HEADs-OF-HOUSEHOLD. THE WOMaN- BOOMER-GEEZER. LOoooNG-TERM BOOMER-GEEZER. LOoooNG-TERM PHENOMENON. PHENOMENON. Global phenomenon. Global phenomenon.9.9. SPEEDSPEED of “change.” mother of all of “change.” mother of all ““megatrendsmegatrends.”.”

1. 1. ParticipationParticipation rate/2 of 3 new jobs, lastrate/2 of 3 new jobs, last 30 years. 30 years.2. Male workforce2. Male workforce departuresdepartures/SENIOR male/SENIOR male workforce departures. workforce departures.3. 3. ShrinkingShrinking pay gap/same jobs.pay gap/same jobs.4. More senior positions. Greater decision-4. More senior positions. Greater decision- making/expenditure/org design making/expenditure/org design authorityauthority.. More line jobs. More line jobs.5. Female 5. Female solosolo head-of-household growing. head-of-household growing.6. 6. LongevityLongevity..7. 7. EducationEducation..8. More effective 8. More effective moneymoney managementmanagement..

Not. Yet. Done.*Not. Yet. Done.*Loyalty programs: M F “Difference” = Yawning gap (173+ degrees)Loyalty programs: M F “Difference” = Yawning gap (173+ degrees)

Forced to do it: e.g., a division aimed at Boomer Women … Exclusively.Forced to do it: e.g., a division aimed at Boomer Women … Exclusively.

Just say no to “trickle up”: Why have the 5% chase the 95%?)Just say no to “trickle up”: Why have the 5% chase the 95%?)

Men think they’re doing their share (helping, sure, but the buck stops Men think they’re doing their share (helping, sure, but the buck stops with her); busy, busy, busy—think Jim’s Group)with her); busy, busy, busy—think Jim’s Group)

New forms of living together, playing together as aging proceeds New forms of living together, playing together as aging proceeds (“commune”, Beacon Hill Assn, telemedicine, etc, etc, etc.)(“commune”, Beacon Hill Assn, telemedicine, etc, etc, etc.)

“Grab ’em early & keep ’em”: Total Unmitigated Crap“Grab ’em early & keep ’em”: Total Unmitigated Crap (TP: 100% brand switch. 100%.) (TP: 100% brand switch. 100%.)

“They didn’t take it seriously” —German bank exec, Bonn, F“They didn’t take it seriously” —German bank exec, Bonn, F

This is not a $%^&ing “program.” This is “NEW Life 101.” ThisThis is not a $%^&ing “program.” This is “NEW Life 101.” This is Soooo Big it Staggers the Imagination. (Will be paramount is Soooo Big it Staggers the Imagination. (Will be paramount

“trend” for 20 years.) “trend” for 20 years.)

*The Copenhagen Pact*The Copenhagen Pact

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

““IdioIdiott”” is too is too

kind a kind a word.word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 8585%% of

Unilever’s products are purchased by … women.

“That’s a

VERYVERY diverse team.”

—Patrick Cescau, CEO, Unilever* **

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 85% of Unilever’s products are purchased by … women.

“That’s a

VERYVERY sick

man.”

—Tom Peters

Good Thinking, Guys!

“Kodak Sharpens Digital Focus “Kodak Sharpens Digital Focus

On Its Best Customers:On Its Best Customers:

WomenWomen””

—Page 1 Headline/WSJ/0705


FOUND.FOUND.DUH.DUH.

“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have

leaders who leaders who represent the represent the population we population we

serveserve.”.” —Steve Reinemund/PepsiCo

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

The Perfect Answer

Jill and Jack buy slacks in black…

“She knows more about the [Volvo] than the salesman who greets

her at the door. But how is she treated? As if she has a low IQ , is

slightly hard of hearing , and really has no right to be buying a luxury

car; and if she brought a male friend with her, odds are 10:1 that the

clueless salesperson spent most of his time speaking to him .”

—Selling to Men, Selling to Women, Jeffery Tobias Halter

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

Selling to men: The The TRANSACTION Model Model

Selling to Women: The The RELATIONAL Model Model

Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

“Women come out betterWomen come out better on almost everon almost everyy count count as investorsas investors … They are less likely to hold a losing investment too

long, and less likely to wait too long to sell a winner; they’re also less likely to

put too much money into a single investment or to buy a reputedly hot

stock without doing sufficient research.”

Source: The Merrill report: “When It Comes to Investing, Gender A Strong Influence on Behavior.”/Atlantic

1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.

6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.

10. 10. Women’s Women’s Market = Market =

Opportunity Opportunity No. 1.No. 1.

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has

developed andeveloped an index of 115 index of 115 companies poised to benefit companies poised to benefit

from women’s increased from women’s increased purchasing powerpurchasing power ;; over the past over the past

decade the value of shares in decade the value of shares in

Goldman’s basket hasGoldman’s basket has risen by risen by

9696%%,, against the Tokyo against the Tokyo stockmarket’s rise of stockmarket’s rise of

1313%%.”.”

—Economist, 15 April 2006

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

12.2002: $-344M

*International*International*Build*Build*Men & Children*Men & Children

Source: Fara Warner, The Power of the Purse,“From Minority to Majority: McDonald’s Discoversthe Woman Inside the Mom”

“Mostly Moms”

““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—

generally considered the generally considered the industry’s most frequent industry’s most frequent

users and therefore its most users and therefore its most important consumers—or they important consumers—or they were cast in the role of moms were cast in the role of moms who were simply conduits to who were simply conduits to

their children.”their children.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

“Women [in women-only focus groups] told us that all moms are

women, but not all women are moms—so why weren’t

we trying to reach all women? We realized we

should be finding the woman inside the mom.” —Carol Koepke, marketing director (Fara Warner, The Power of

the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”)

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

New! New! New! New! New!New! New! New! New! New!

Women’s Women’s magazinesmagazines [“a medium

that McDonald’s had rarely used”]

Source: Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers

the Woman Inside the Mom”

““Forget Forget ChinaChina, , IndiaIndia andand the the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen..””

—Headline, Economist, April 15, 2006, Leader, page 14

10.610.6

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 million (48% of all firms)10.6 million (48% of all firms)

Growth rate of Women-owned firms vs all Growth rate of Women-owned firms vs all firms:firms: 3X 3X

Rate of jobs created by Women-owned firms Rate of jobs created by Women-owned firms vs all firms:vs all firms: 2X 2X

Ratio of total payroll of Women-owned firms Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:vs total for Fortune500 firms: >1.0 >1.0

Ratio of likelihood of Women-owned firms Ratio of likelihood of Women-owned firms staying in business vs all firms:staying in business vs all firms: >1.0 >1.0

Growth rate of Women-owned companies Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 with revenues of >$1,000,000 and >100 employees vs all firms:employees vs all firms: 2X 2X

Source: Margaret Heffernan, How She Does It

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “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

““Economic Growth Economic Growth Is Driven by … Is Driven by …

WomenWomen..””

—Headline, EconomistEconomist, April 15, 2006, Leader, page 14

Impact! Add It Up!

Primary markets/EverythingPrimary markets/Everything (“Men

buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce Greater global workforce participation rateparticipation rate (“bigger contributor to GDP

growth than technology, China, India”—Economist)

Higher wagesHigher wages (more seniority, promotions—even if not

to CEO; greater pay equity—even if not equal)

Business “decision makers”Business “decision makers” (more

seniority, promotions—even if not to CEO)

Women-owned businessesWomen-owned businesses (answer to

the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

“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, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as

thought out and practiced by a thought out and practiced by a woman.”woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

““Since Since 19701970, , women have women have

held held twotwo out of out of every every three three new new jobs created.”jobs created.” —FT,

10.03.2006

1. 1. ParticipationParticipation rate/2 of 3 new jobs, lastrate/2 of 3 new jobs, last 30 years. 30 years.2. Male workforce2. Male workforce departuresdepartures/SENIOR male/SENIOR male workforce departures. workforce departures.3. 3. ShrinkingShrinking pay gap/same jobs.pay gap/same jobs.4. More senior positions. Greater decision-4. More senior positions. Greater decision- making/expenditure/organization making/expenditure/organization design design authorityauthority. More line jobs.. More line jobs.5. Female 5. Female solosolo head-of-household growing. head-of-household growing.6. 6. LongevityLongevity..7. 7. EducationEducation..8. More effective 8. More effective moneymoney managementmanagement..

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that

female managers outshine their male counterparts in almost every measure”

Title, Special Report/BusinessWeek

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

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/FGoods/M

Raw Materials/M

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons WhySelling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

boomersboomers-geezers-geezers

Subject: Marketers & StupiditySubject: Marketers & Stupidity

““It’s 18-It’s 18-44, 44,

stupid!”stupid!”

Subject: Marketers & StupiditySubject: Marketers & Stupidity

Or is it: “18-44 is

stupid, stupid!”

“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly

coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants Who wants

to reach them?to reach them? Beyond fast food and beer, they don’t buy much of anything. … The

theory is that if you ‘get them while they’re

young, they’re yours for life.’ What What nonsensenonsense!”!”

—Marti Barletta, PrimeTime Women

2000-2010 Stats2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more thanthan halfhalf of their of their

adult life ahead of adult life ahead of them.”them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household

after the “head of household” reaches age

50: 77Source: Marti Barletta, PrimeTime Women

3Q/2006.3Q/2006.$312M. (+18%.)$312M. (+18%.)$1.6B. (+14%.)$1.6B. (+14%.)

Source: Source: BusinessWeekBusinessWeek, 1106.06, “Harley Just Keeps on , 1106.06, “Harley Just Keeps on Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely. Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely.

So why is the stock at a record high?”So why is the stock at a record high?”

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when Which is pretty weird when you consider age 50 is right you consider age 50 is right

about when people who have about when people who have worked all their lives start to worked all their lives start to have some money to spend.”have some money to spend.”

—Marti Barletta, PrimeTime Women

Median Household Net WorthMedian Household Net Worth

<35: $7K35-44: $44K45-54: $83K

55-64: $112K55-64: $112K65-69: $114K65-69: $114K70-74: $120K70-74: $120K

>74: $100KSource: U.S. Census

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

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

““The New Customer The New Customer Majority is the only adult Majority is the only adult

market with realistic market with realistic prospects for significant prospects for significant sales growth in dozens of sales growth in dozens of

product lines for product lines for thousands of thousands of companies.”companies.”

—David Wolfe & Robert Snyder, Ageless Marketing

““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

Magazine of Magazine of the Year*:the Year*: MoreMoreSource: Source: Advertising AgeAdvertising Age, 1023., 1023.20062006, “‘More’ , “‘More’

Taps Power of 40-plus to Draw Advertisers in Taps Power of 40-plus to Draw Advertisers in Droves”Droves” (“More is breaking through (“More is breaking through

advertisers’ irrational obsession withadvertisers’ irrational obsession with 20-somethings …”) 20-somethings …”)

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

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

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

BONUS.BONUS.

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.ENORMOUS.ENORMOUS.

GENERIC DEMOGRAPHIC GENERIC DEMOGRAPHIC TSUNAMI. TSUNAMI. (UNPRECEDENTED IN HISTORY.)(UNPRECEDENTED IN HISTORY.)

Demographic Upheaval!Demographic Upheaval!

1/1/2008: 60%60% of the Prime Work Force (“boomers”), mostly white males, will be

able to retire—at a rate of 10,000 per 10,000 per dayday.

As of 2005: 75%75% of people entering the workforce are women and minorities. As of

2008, they will “flood the “flood the management ranks”management ranks” as the

PWF retires.

Programs for recruiting women and minorities with the necessary intensity:

mostly AWOL.

Selling to Men, Selling to Women, Jeffery Tobias Halter

We We becomebecome who we who we

spend time spend time with!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 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.EXCELLENCE.1966. 2006.1966. 2006.

4/404/40

De-centralizationDe-centralizationexecutionexecution

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

“‘“‘DecentralizatioDecentralization’ is n’ is notnot a piece a piece of paper. It’s of paper. It’s notnot me. me. It’s either in It’s either in

your your heartheart, or , or not.”not.”

—Brian Joffe/BIDvest

““If if feels If if feels painfulpainful and and

scaryscary—that’s —that’s realreal delegation”delegation”

—Caspian Woods, small biz owner

““ExecutionExecution is is the the jobjob 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

““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)


BEDROCK.BEDROCK.TALENT.TALENT.

Hire Hire veryvery 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!

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

“The role of the Director is to create a space where

the actor or actress can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

A A FewFew “Talent Lessons” from the Arts “Talent Lessons” from the Arts

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

23 distinct personalities = 23 sets of motivators)

Attitude/Enthusiasm/Energy paramount!Attitude/Enthusiasm/Energy paramount!Re-lent-less!!!!!!!!!!!Re-lent-less!!!!!!!!!!!

“Peculiar” = requisite “Peculiar” = requisite (Each expected to make unique/“peculiar” contribution)

“Practice is cool”“Practice is cool” (Practice stars = Performance stars. See George Leonard’s Mastery; Twyla Tharp’s The Creative Habit)

Team Team andand Individual equally cherished Individual equally cherished Aspire to EXCELLENCE = Obvious Aspire to EXCELLENCE = Obvious (Excellence = Cool))

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

Emotional language OkayEmotional language Okay“Bit players”? No!“Bit players”? No! (All = Vital)

Standard = B.I.WStandard = B.I.W. . (Best. In. World.)

Different events = Different rostersDifferent events = Different rosters (Duh.)

PUT PUT HRHR AT AT THE THE HEADHEAD OF OF

THETHE HEADHEAD TABLETABLE. .

DDDD$21M$21M

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

First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting 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 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 gamed-abstract plan developed last year.

Second: Putting Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

LIVE FOR LIVE FOR TALENT!TALENT!

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

SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE

PERSON”? PERSON”? PROVE ITPROVE IT..

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

Brand Brand = =

Talent.Talent.


BEDROCK.BEDROCK.LEADERSHIP.LEADERSHIP.

““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)

““I never, ever thought I never, ever thought of myself as a of myself as a

businessman. businessman. I was I was interested in interested in

creating things I creating things I would be proud would be proud

ofof.”.” —Richard Branson

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

—Samuel Taylor Coleridge

““Most important,Most important,

he he uppedupped the the energyenergy levellevel at at

Motorola.”Motorola.” —Fortune on Ed Zander/08.05

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William

Feather, author

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

PURPOSEPURPOSE..PASSIONPASSION..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE..

“No leader sets out to be a

leader per se, but rather but rather to express him- or to express him- or herself freely and herself freely and

fullyfully.. ThatThat is, leaders have no interest in proving themselves,

but an abiding interest in expressing themselves.” —Warren Bennis, On Becoming a Leader

You only You only find oil if find oil if you drillyou drill

wellswells.. —The Hunters, by John Masters,

Canadian O & G wildcatter

EXEXCELLE CELLE ALWALWAYSAYS..

BonusBonus

Think!Think!vs.vs.

do!do!Tom petersTom peters

27 October 200627 October 2006

Think!Think!vs.vs.

do!do!

“Never forget Never forget implementationimplementation , , boys. boys. In our work, it’s what I In our work, it’s what I

call the call the ‘‘last 98 last 98 percentpercent’’ of the client of the client puzzle.”puzzle.” —Al McDonald, former Managing

Director, McKinsey & Co, to a project team that included TP

The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”

HERBERT SIMON. HERBERT SIMON. (Administrative Behavior.) (Administrative Behavior.) JAMES MARCH. KARL WEICK. JAMES MARCH. KARL WEICK. (The (The

Social Psychology of Organizing.) Social Psychology of Organizing.) EUGENE WEBB. EUGENE WEBB. Henry MINTZBERG. Henry MINTZBERG. (The Rise and Fall of (The Rise and Fall of

Strategic Planning.)Strategic Planning.) JAMES UTTERBACK. JAMES UTTERBACK. THOMAS KUHN. THOMAS KUHN. (The Structure of Scientific (The Structure of Scientific

Revolutions.)Revolutions.) CHARLES LINDBLOM. CHARLES LINDBLOM. Daniel goleman. INNOVATION Daniel goleman. INNOVATION BIOGRAPHERS.*BIOGRAPHERS.* (*Transcontinental Railroad,

Electrification, Radio, Television, Containerization, DNA,

Computers, Military History, Etc.) MOST MOST POLITICAL SCIENTISTS. SILICON POLITICAL SCIENTISTS. SILICON

VALLEY. Etc.VALLEY. Etc.

“Linearist”: Plan it!Plan it!“Non-linearist”: Try it!Try it!

“Linearist”: think!think!“Non-linearist”: do!do!

“Linearist”:

hypothesize!hypothesize!“Non-linearist”:

experiment!experiment!

“Linearist”: failure = failure = unnecessaryunnecessary

“Non-linearist”:

failure = lifefailure = life

“Linearist”: a>b*a>b*“Non-linearist”: b>a**b>a**

*Attitude shapes behavior**Behavior shapes attitude

“Linearist”: deliberate!*deliberate!*

“Non-linearist”: relentless!relentless!****

* “Do it right the first time” (Hero: Phil Crosby) * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant)**Never retreat (Hero: U.S. Grant)

“Linearist”: logical!logical!“Non-linearist”:

passionate!passionate!

“Linearist”: give me give me genius!genius!

“Non-linearist”: give give me luck!me luck!

“Linearist”: spotless spotless academic academic record!record!

“Non-linearist”: a.d.d.a.d.d.

“Linearist”:

measured pace!measured pace!“Non-linearist”:

Tempo! Tempo! Tempo! Tempo! Tempo!Tempo!

“Linearist”: think! Plan! think! Plan! (r.(r.a.a.f.*)f.*)

“Non-linearist”: Try it! Try it! Screw it up! Fix it! Screw it up! Fix it!

Try it again! Try it again! (r.(r.f.f.a.**) a.**)

*Ready. *Ready. Aim.Aim. Fire. Fire.**ready. **ready. Fire.Fire. Aim. (Or, circa 2006: Aim. (Or, circa 2006: fire. Fire. Fire.fire. Fire. Fire.))

Cheap Shot

“Linearist”: minimize minimize cost.cost.

“Non-linearist”: maximize maximize revenue.revenue.

“Linearist”: marketing marketing rules.rules.

“Non-linearist”: sales sales rules.rules.

“Linearist”

Background: Background: planning, marketing planning, marketing

& finance.& finance.“Non-linearist”

background:background: sales & operations. sales & operations.

“Linearist”

likes: ideas.likes: ideas.“Non-linearist”

likes: people.likes: people.

“Linearist”

likes: parts.likes: parts.“Non-linearist”

likes: wholes.likes: wholes.

“Linearist”

office: walls.office: walls.“Non-linearist”

office: none.office: none.

“Linearist”

style: meetings.style: meetings.“Non-linearist”

style: m.b.w.a.* style: m.b.w.a.* *Managing by wandering around*Managing by wandering around

“Linearist”

reads: michael porter. reads: michael porter. Peter drucker.*Peter drucker.*

“Non-linearist”

reads: waterman & reads: waterman & peters.peters. Tom clancy.** Tom clancy.**

*Michael & peter*Michael & peter**Bob & tom & tom**Bob & tom & tom

“Linearist”

reads: michael porter. reads: michael porter. Peter drucker.Peter drucker.

“Non-linearist”

reads: doesn’treads: doesn’t

“Linearist”

preferred baseball preferred baseball score: 1-0.score: 1-0.

“Non-linearist”

preferred baseball preferred baseball score: 11-9.score: 11-9.

“Linearist”

preferred football preferred football score: 7-0.score: 7-0.

“Non-linearist”

preferred football preferred football score: 41-38.score: 41-38.

“Linearist”

criminal record: criminal record: none.none.

“Non-linearist”

criminal record: criminal record: disorderly conduct.disorderly conduct.Chronic jaywalking.Chronic jaywalking.

“Linearist”

drives: lincoln town drives: lincoln town car. Ford explorer car. Ford explorer

(weekends).(weekends).

“Non-linearist”

drives: bmw. Harley-drives: bmw. Harley-davidson davidson (weekends).(weekends).

The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”

HERBERT SIMON. HERBERT SIMON. (Administrative Behavior.) (Administrative Behavior.) JAMES MARCH. KARL WEICK. JAMES MARCH. KARL WEICK. (The (The

Social Psychology of Organizing.) Social Psychology of Organizing.) EUGENE WEBB. EUGENE WEBB. Henry MINTZBERG. Henry MINTZBERG. (The Rise and Fall of (The Rise and Fall of

Strategic Planning.)Strategic Planning.) JAMES UTTERBACK. JAMES UTTERBACK. THOMAS KUHN. THOMAS KUHN. (The Structure of Scientific (The Structure of Scientific

Revolutions.)Revolutions.) CHARLES LINDBLOM. CHARLES LINDBLOM. Daniel goleman. INNOVATION Daniel goleman. INNOVATION BIOGRAPHERS.*BIOGRAPHERS.* (*Transcontinental Railroad,

Electrification, Radio, Television, Containerization, DNA,

Computers, Military History, Etc.) MOST MOST POLITICAL SCIENTISTS. SILICON POLITICAL SCIENTISTS. SILICON

VALLEY. Etc.VALLEY. Etc.

EXEXCELLE CELLE ALWALWAYSAYS..

tom peters’ excellence. always. version.234 women-boomers-geezers 03 november 2006

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