Tom Peters with KPMG

NOTE : To appreciate this presentation [and insure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”

Section TWO of TWO Tom Peters’ X25* EXCELLENCE. ALWAYS. KPMG/Training Solutions /Nairobi/21July2007 * In Search of Excellence 1982-2007

EXCELLENCE. VALUE ADDED. UP THE LADDER.

Up, Up, Up, Up the Value-added Ladder.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

Hu g e : Customer Satisfaction versus Customer Success

“ ‘ Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader

“ He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life. Because his sole concern had been my welfare and the success of my business.” —Jim Penman, on learning how to sell ( What Will They Franchise Next? The Story of Jim’s Group )

The Value-added Ladder/ STUFF ‘N’ THINGS Goods Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONS Services Goods Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. SOLVE IT. NO OPTION. PSF. (PSF++)

“ [Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as 40 million American jobs at risk of being shipped out of the country in the next decade or two.”* —Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg.”

Department Head to … Managin g Partner , IS [HR, R&D, etc.] Inc .

Core Mechanism : “Game-chan g in g Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )

The “ PSF35 ” : Thirty-Five Professional Service Firm Marks of Excellence

The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”

The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) 29. Excellence+ in EXECUTION … 100.00% of the Time 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) 33. BRAND MANIACS (Organize Around a Point of View Worth BROADCASTING) 34 . PASSION! ENTHUSIASM! 35. EXCELLENCE. ALWAYS.

PSF /Professional Service Firm/Beliefs Profession : Calling/Passion to make a difference/Excellence (always) point of view : know exactly what we stand for/ “Dramatic Difference” Client : enduring, test-the-limits relationship/Trusted advisor Solution : Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction”

Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)

Are you the … “ Princi p al En g ine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?

“ Let’s make a dent in the universe!” —Steve Jobs

Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

If you are not prepared to be fired over your beliefs … you are working on the wrong project. — TP

Starting a WOW ! Projects Epidemic: Demos, Heroes, Stories!

Premise : “ Ordering” Systemic Change is a Waste of Time!

Subversive Change Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd

EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

“ 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

Safe, On-time and ... “We defined personality as a market niche. We seek to amaze, surprise, entertain.” — Herb Kelleher, SWA / LUV

The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Be y ond the “Transaction”/ “Satisfaction” Mentalit y “Good hotel”/ “Happy guest”/ “Exceeded Expectations” vs. “Great Vacation ”/ “Great Conference ”/ “Operation Personal Renewal ”

Words! — Magician of Magical Moments — Maestro of Moments of Truth — Recruiter of Raving Fans — Impresario of First Impressions — Wizard of WOW — Captain of Brilliant Comebacks — Director of Electronic Customer Experiences — Conductor of Customer Intimacy — King of Customer Community — Queen of Customer Retention — CEO of Ownership Experience — Managing Director of After-sales Experience

<TG W vs. >TG R [Things Gone WRONG /Things Gone RIGHT ]

tom peters: what I’ve Learned about “Small Business”

Passion for PRODUCT. OBSESSION With Product . LOVE The Product. Aim To Be “ONLY ONES WHO DO WHAT WE DO.” Keep ADDIN’ Stuff. Invest “UNWISELY” in R&D. Reside Permanently In The DISCOMFORT Zone. “Unhealthy” PARANOIA Is A Good Thing. Add Clients That PUSH-PULL. SELL. SELL. SELL. SELL. Go For Broke: CUSTOMER CONTACT PEOPLE. PERFECTION: Customer Contact People. Hire for ATTITUDE. INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal. QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit Mechanic)

GREAT Logo. DESIGN! “OVERDO” Marketing Materials. WOMEN Roar. WOMEN Rule. WOMEN Buy. Diversity = $$$$$$ Be RELENTLESS. Cut And RUN. Product Includes-Features the PACKAGING. Define Your DRAMATIC DIFFERENCE (R.P.O.V.8) Best STORY Wins. DRESS For Success. First Goal: AMUSE Yourself. Know YOURSELF. DON’T Do Stuff You Hate. “Over-invest” In RELATIONSHIPS. (R.O.I.R.: Return On Investment in Relationships) SYSTEMATICALLY “Manage” Relationships. “Work” The SUPPORT PEOPLE In Client Orgs.

BLOG As If Your Life Depended On It. SOPHISTICATED Use Of Infotech. RESPONSE To Problems. Make ’Em PAY. CLOSE The Sale. Invest BIGTIME In PR. Media FRIENDLY. Live-To- SCHMOOZE. Fun/Laughter = $$$$ MBWA: Stay In Touch. “You Must Be The Change You Wish To See In The World”/ GANDHI 5K For 5M. Your CALENDAR Never Lies. OUT: Pastels. IN: T e c h n i c o l o r

JUST SAY “NO” TO C.E.O.: CIO /Chief Innovation Officer. CSO /Chief Sales Officer. CWO / Chief Wow Officer EXCELLENCE Is Very Cool. “MICRO-MANAGE” Your Reputation. Wear Your Integrity On Your SLEEVE. KEEP Your Promises. EXECUTION !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! “A Man Without A Smiling Face MUST NOT Open His Shop.” RECOGNITION! Work HARD, Not Smart. “Insanely Great.” THE STANDARD.

Measure #1: R.O.I.R. * * Return On Investment In Relationships

I [“Bacteria Man”] HEREBY PLEDGE: When asked, “What are some examples of companies stepping up to today’s challenges?” … I will … NEVER AGAIN … offer an example of a Giant Company; instead I’ll refer to Cirque du Soleil , Donnelly’s Weatherstrip Service , 3K tanning salons , 10.6M women-owned businesses (or the typically/95+% female recipients of micro-lending) …* *There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”

Excellence. Bank on it. (commerce bank.)

The Commerce Bank Model “Are you going to cost cut your way to prosperity? Or … are you going to spend your way to prosperity?” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman

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 Hills (Top-line driven; standard is bottom-line driven by cost cutting)

The Commerce Bank Model “ over -invest in our people, over -invest in our facilities.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman

Commerce Bank: From “Service” to “Experience” 7X. 730A-800P. F12A. * * ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

The Commerce Bank Model “every computer at commerce bank has a special red key on it that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell us about it, and if we agree, we will give you $50.’” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman

“ You do not merely want to be the best of the best. You want to be considered the only ones who do what you do .” —Jerry Garcia

All E q ual Exce p t … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Desi g n is the onl y thin g that differentiates one p roduct from another in the market p lace .” —Norio Ohga

“ Design is treated like a religion at BMW.” —Fortune

Design “is” … WHAT & WHY I LOVE. LOVE .

Design “is” … WHY I GET MAD. MAD .

Wanted : THE DESIGNER OF MY NEW HP COMPUTER

Design is … never neutral .

Hypothesis: DESIGN is the p rincipal difference between love and hate!

EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S.

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams . 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 convert ‘needs’ into ‘dreams.’ Sales are the inevitable result .” — Judy George, Domain Home Fashions

The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. SOUL II. THE STORY.

“ Storytelling is the core of culture.” — Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld , James Twitchell

“ Leaders ‘ SERVE ’ people. Period.” —Anon.

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

THE PROBLEM IS RARELY THE PROBLEM.

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *RMN, M Stewart, WJC, “Scooter” Libby

PERCEPTION IS ALL THERE IS. PERIOD .* *From Whole Foods to IBM to the corner deli

“ I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three . Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade

“ Really Important Stuff”: Roger’s Rule of Three !

“ Dennis, you need a … ‘To-don’t ’ List !”

“ The one thin g you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know

SWEET SPOT: SEEKING THE DIS COMFORT ZONE.

“ Do one thing every day that scares you.” —Eleanor Roosevelt

“ A typical day at the office for me begins by asking, ‘ What is impossible that I am going to do today ?’” —Daniel Lamarre, president, Cirque du Soleil

“ Little Stuff” (the end) (almost)

Conrad Hilton, at a big celebration of his life, on “the most important lesson you’ve learned in you long and distinguished career”: “ remember to tuck the shower curtain inside the bathtub”

E-nor-mous Stra-te-gic opp-or-tun-ity. Damn it.

Good Thinkin g , Gu y s! “Kodak Sharpens Digital Focus On Its Best Customers: Women” —Page 1 Headline/ WSJ / 0705

“ To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.” —Steve Reinemund/PepsiCo

“ Forget China , India and the Internet : Economic Growth Is Driven by Women .” —Headline, Economist , April 15, 2006, Leader, page 14

Women’s Trifecta+ * Buy * Wealth * Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)

Not Just America … “Boys Falling Seven Years Behind Girls at GCSE Level” —headline, Weekly Telegraph , UK, 10.25.06

Girls Again Outshine Boys In CBSE Class 12 Exams Source: Headline, Dateline New Delhi (0526.2007; Khaleej Times)

“ Girls are the new boys.” Source: The Daily Mail , 0425.2007, “Why today’s women want a girl”

“ Women are the majority market” —Fara Warner/ The Power of the Purse

????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

91 % women: “ ADVERTISERS DON’T UNDERSTAND US .” (58% “ANNOYED.”) Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

“ The most significant variable in every 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

“ Women don’t buy brands. They join them .” EVEolution

Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women , Jeffery Tobias Halter

Editorial/ Men : Tables, rankings.* Editorial/ Women : Narratives that cohere.* *Redwood (UK)

FemaleThink / Popcorn & Marigold “Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.” “ He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

“ The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

“ People powered”: Age 3 days , baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women

“ Resting” State: 30%, 90% : “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are va g uely aware of some short p eo p le also livin g in the house .” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“ As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest . This is wh y modern men can find their wa y effortlessl y to a distant pub, but can never find thin g s in fridges, cu p boards or drawers .” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

“ Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. The y are excellent at imitatin g animal sounds .” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

How many men does it take to change a roll of toilet paper? It’s unknown. It’s never happened. Source: Allan Pease & Barbara Pease, Why Men Can Only Do One Thing at a Time and Women Never Stop Talking

1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT . 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF . 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.

10. Women’s Market = Opportunity No. 1.

EXCELLENCE. OPPORTUNITY. WOMEN. BUSINESS. OWNERS.

“ The growth and success of women-owned businesses is one of the most profound changes taking place in the business world today.” — Margaret Heffernan, How She Does It

Women-owned Biz U.S. employees > F500 employees worldwide Source: Martha Barletta, Marketing to Women

94 % of loans to … women * * M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

WOMEN. DOMINATE. ECONOMIC. GROWTH.

“ Since 1970 , women have held two out of every three new jobs created.” — FT , 10.03.2006

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 & value-added 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 ?

COROLLARY. EXCELLENCE. WOMEN. RULE.

“ AS LEADERS, WOMEN RULE : New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek

“ On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twenty-first-century economic community are going to need the natural talents of women.” —Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World

EX CELLENC ALW AYS . End. PART THREE .

EXCELLENCE. INDIVIDUAL. BRAND YOU.

“ You are the storyteller of your own life, and you can create your own legend or not.” —Isabel Allende

Personal “Brand Equity” Evaluation My current Project is challenging me … New things I’ve learned in the last 90 days include … I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing]. My public “recognition program” consists of … Additions to my Rolodex in the last 90 days include … My resume is discernibly different from last year’s at this time …

R.D.A. Rate: 15%?, 25%? Therefore: Formal “Investment Strategy”/ R.I.P .* *Renewal Investment Plan

“ The only thing you have power over is to get good at what you do. That’s all there is; there ain’t no more!” —Sally Field

Muhammad Yunus: “ All human beings are entrepreneurs . When we were in the caves we were all self-employed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006

“ Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead

“ It’s always showtime.” —David D’Alessandro, Career Warfare

Brand Essentials: *Mastering Sales/The Sales25. *Getting Things Done/The Power & Implementation34. *presentation Excellence/ The PresX56. *interviewing Excellence/ The IntX31

Brand you tool #1: Mastering Sales … The Sales25.

“ Everyone lives by selling something.” — Robert Louis Stevenson

Great Salespeople … 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”) 4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customer’s org. (Relationships at all levels & functions.) 7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)

It’s all about politics! (Play or sit on the sidelines.)

“ If you don’t listen, you don’t sell anything.” —Carolyn Marland/Managing Director/Guardian Group

Brand you tool #2: Getting Things Done … The Power & Implementation34.

*Send “Thank You” notes! It’s (always) “all about relationships.” And at the Heart of Effective Relationships is … APPRECIATION. (Oh yeah: Never, ever forget a birthday of a co-worker.) *Bring donuts! “Small” gestures of appreciation (on a rainy day, after a long day’s work the day before) are VBDs … Very Big Deals. *Make the call! One short, hard-to-make call today can avert a relationship crisis that could bring you down six months from now. *Remember: There are no “little gestures” of kindness. As boss, stopping by someone’s cube … for 30 seconds … to inquire about their sick parent will be remembered for … 10 years . (Trust me.) *Make eye contact! No big deal? Wrong! “It” is all about … Connection! Paying attention! Being there … in the Moment … Present. So, work on your eye contact, your Intent to Connect. *Smile! Or, rather: SMILE. Rule: Smiles beget smiles. Frowns beget frowns. Rule: WORK ON THIS. *Smile! (If it kills you.) Energy & enthusiasm & passion engender energy-enthusiasm-passion in those we work with.

Brand You Tool #3: Presentation Excellence … The PresX56

Presentation Excellence 1. Total commitment to the Problem/Project/Outcome 2. A compelling “Story line”/“Plot” 3. Enough data to sink a tanker (98% in reserve) 4. Know the data from memory; ability to manipulate the data in your head 5. Great Stories/Illustrations/Vignettes 6. Superb “political antennae” (you must “play the room” like a Virtuoso and be hyper-attentive to the likes of Body Language) 7. By hook or by crook … CONNECT 7A. CONNECT! CONNECT! CONNECT! 8. Punch line/Plot Outline/WOW/Surprise in first one to two minutes

“ The only reason to give a speech is to change the world .” —JFK

Brand You Tool #4: Interviewing Excellence … The IntX31

Interviewing Excellence 1. INTERVIEWING IS AN “ART” WORTH MASTERING! (Think Christiane Amanpour, Mike Wallace) 2. Don’t overschedule—2 or 3 in depth interviews are a solid day’s work. (More than that is lunacy and will lead to shallow results.) 3. Save, if possible, the “Big” Guy/Gal until last—that is, until you know what the hell you’re doing! 4. Find a comfy/“safe”/neutral setting. THIS IS ALL IMPORTANT! (Worst case: You on the other side of his/her desk.) 5. Start with a little bit (LITTLE) of local small talk. But get some tips on the interviewee ahead of time; he may be one of the “brusque ones” who considers any small talk a waste of his Imperial Time. 6. DO YOUR DAMN HOME WORK! (On the interviewee, the subject matter.) 7. Concoct a … LONG LIST … of questions. (You’ll only use 10% of it, but that’s okay.)

“ We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $ 25 million to $ 80 million in 2 years.” —Ed Michaels, War for Talent

INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

“ In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

“ The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being .” —Robert Altman, Oscar acceptance speech

EMPHASIZE THE “SOFT SKILLS.”

“ It’s simple, really, Tom. Hire for  s , and, above all , p romote for  s.” —Starbucks middle manager/field

Q : “If it were your $50K [life’s savings] and my $50K, what sort of Waiters would we look for?” A : “Enthusiasts!”

“ The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … Discover what is unique about each person and capitalize on it .” —Marcus Buckingham, The One Thing You Need to Know

“ The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know

One size … NEVER … fits all.

Promise #1: “Never, ever again will I evaluate anyone using a standardized instrument devised by a “professional” in inhuman Resources.”

SO YOU’RE A “PEOPLE PERSON”? PROVE IT .

“ 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

PARC’s Bob Taylor: “Connoisseur of Talent”

220 workdays = 220 “rosters” Source: Coach K

new goal … every game! Source: Coach K

“ Leaders ‘ do ’ people. Period.” —Anon.

PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION.

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 HR on a par with finance and marketing.

What’s your company’s … EVP/ IBP ?* * E mployee V alue P roposition , per Ed Michaels et al., The War for Talent; IBP/ I nternal B rand P romise per TP

EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, The War for Talent; TP

“ I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke

Re-ima g ine Peo p le Power: The Talent 50

The Talent50 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/Intellectual- capital Added. 4. Talent “excellence” in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is “cool.”

The Talent50 8. Re-name “HR.” (Talent Department, Center of Talent Excellence) 9. There’s an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a “world class” Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The “Top100,” and every unit’s Top10, are consciously managed.

The Talent50 15. “People/Talent Reviews” are the FIRST reviews. 16. HR Strategy = Business Strategy. 17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay!

The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% “business people.” 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual.

The Talent50 33. Places of “grace.” 34. MBWA: The “Rudy Rule.” 35. Thank You! 36. Promote for “people skills.” (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring.

The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses “win people over.” 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm!

EXCELLENCE. BEDROCK. LEADERSHIP. L23. 7Es. 9Ps. 12Ps.

Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!

EXCELLENCE. THE LEADERSHIP23.

Leadershi p 23/ML 1. Enthusiasm. Energy. Exuberance. 2. Action. Execution. 3. Tempo. Metabolism. 4. Relentless. 5. Master of Plan B. 6. Accountability. 7. Meritocracy. 8. Leaders “do” people. Mentor. (“Success creation business.”) 9. Women. Diversity. 10. Integrity. Credibility. Humanity. Grace. 11. Realism. 12. Cause. Adventures. Quests.

Leadershi p 23/ML 13. Legacy. 14. Best story wins. 15. On the edge. (“Wildest chimera of a moonstruck mind.”) 16. “Reward excellent failures. Punish mediocre successes.” 17. Different > Better. (“Only ones who do what we do.”) 18. MBWA. Customer MBWA. 19. Laughs. 20. Repot. Curiosity. Why? 21. You = Calendar. “To Don’t.” Two. 22. Excellence. Always. 23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”)

EXCELLENCE. BEDROCK. LEADERSHIP. “12 P s .” Tom Peters/04.18.2007

PURPOSE . PASSION . Potential . Presence . Personal . pissed off . Playful . PERSISTENCE . PEOPLE . Peculiar . Potent . Positive .

The Passion Imperative: Leadership 50

1 . Leadership Is a … Mutual Discovery Process.

Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they ( and their mentors-teachers-leaders) had never dreamed existed —and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best .” “The best thing a leader can do for a Great Group is to allow its members to discover their g reatness .”

Leaders’ “Mt Everest Test” “free to do his or her absolute best” … “allow its members to discover their greatness.”

“ Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done .” – Peter Drucker

2 . Great Leaders on Snorting Steeds Are Important – but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.

Whoops: Jack didn’t have a vision!

3 . But Then Again, There Are Times When This “visionary” (Type II Leadership) Stuff Actually Works!

“ A leader is a dealer in hope.” Napoleon

4 . Find the “Businesspeople”! (Type III Leadership)

I.P.M. (Inspired Profit Mechanic)

5 . All Organizations Need the Golden Leadership Triangle.

The Golden Leadership Triangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic.

6 . Leadership Mantra #1: IT ALL DEPENDS!

Renaissance Men are … a snare, a myth, a delusion!

7 . The Leader Is Rarely/ Never the Best Performer.

8 . Leaders … SHOW UP !

MBWA * *5,000 miles for a 5-minute face-to -face meeting (courtesy super- agent Mark McCormick)

Mark McCormack : 5,000 miles for a 5 min. meeting !

“ A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender

MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials .” Source: Muhammad Yunus, Banker to the Poor

9 . Leaders … LOVE the MESS !

“ I’m not happy unless I’m uncomfortable.” — Jay Chiat

“ If things seem under control, you’re just not going fast enough.” Mario Andretti

“ We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher

“ If it works, it’s obsolete.” —Marshall McLuhan

12 . BUT … Leaders Know When to Wait.

Tex Schramm: The “too hard” box!

13 . Leaders Are … Optimists .

Hackneyed but none the less true : LEADERS SEE CUPS AS “HALF FULL.”

Half-full Cups : “[Ronald Reagan] radiated an almost transcendent happiness.” Lou Cannon, George

“ I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade

15 . Leaders … Set CLEAR DESIGN SPECS .

Danger : S.I.O. (Strategic Initiative Overload)

JackWorld/ [email_address] : (1) Neutron Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3) “Workout” Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK!

16 . Leaders … Send V-E-R-Y Clear Signals About What’s Important!

“ Really Important Stuff”: Roger’s Rule of Three!

If It Ain’t Broke … Break It.

17 . Leaders … FORGET !/ Leaders … DESTROY !

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

18 . BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.”

“ Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

19 . Leaders … HONOR THE USURPERS .

Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision

20 . Leaders Make [Lots of] Mistakes – and MAKE NO BONES ABOUT IT!

“ Fail faster. Succeed sooner.” David Kelley/IDEO

Fail. Forward. Fast. –High-tech Exec

21 . Leaders Make … BIG MISTAKES!

“ Reward excellent failures . Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack)

22 . Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW MARKETS .

“ Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

23 . Leaders … Make Their Mark / Leaders … Do Stuff That Matters

“ I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” — Richard Branson

Ah, kids : “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?”

24 . Leaders Push Their Organizations … W-a-y Up the Value-added/ Intellectual Capital Chain.

And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.” (BW) IBM Global Services: $ 55B

25 . Leaders Know that the “HVA/Solutions Revolution” rests upon: Scintillating Experiences.

“ Experiences are as distinct from services as services are from goods.” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

26. Leaders LOVE the New Technology!

Power Tools For Power Strategies

Go for the Bold * Bold /Aggressive/$$$$ * Bold /GameChanger * Bold /Creative Destruction * Bold /“Cool” Supplier Portfolio * Bold /Web Fanaticism

27 . Needed? Type IV Leadership: Technology Dreamer-True Believer

The Golden Leadership Quadrangle : (1) Talent Fanatic-Mentor … (2) Creator-Visionary … (3) Inspired Profit Mechanic … (4) Technology Dreamer-True Believer

28 . Leaders … DO TALENT!

29 . When It Comes to TALENT … Leaders Always Go Berserk!

From “1, 2 or you’re out” [JW] to … “ Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

30 . Leaders Don’t Create “Followers”: THEY CREATE LEADERS !

“ I start with the premise that the function of leadership is to produce more leaders, not more followers.” — Ralph Nader

31 . Leaders … “Sell” PASSION !

G.H. : “Create a ‘cause,’ not a ‘business.’ ”

“ People want to be part of something larger than themselves . They want to be part of something they’re really proud of, that they’ll fight for , sacrifice for , trust .” — Howard Schultz, Starbucks ( IBD /09.05)

32 . Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM !

BZ : “I am a … Dispenser of Enthusiasm !”

“ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge

James Woolsey, former CIA director: “ If you’re enthusiastic about the things you’re working on, people will come ask you to do interesting things .”

33 . Leaders Are … in a Hurry

Read It Closely : “We don’t sell insurance anymore. We sell s p eed .” Peter Lewis, Progressive

34 . Leaders Focus on the SOFT STUFF!

“ Soft” Is “Hard ” - ISOE

Message : Leadership is all about love ! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.]

35 . Leaders Know It’s ALL SALES ALL THE TIME.

TP : If you don’t LOVE SALES … find another life. (Don’t pretend you’re a “leader.”) (See TP’s The Project50 .)

36 . Leaders LOVE “ POLITICS .”

TP : If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”)

37 . But … Leaders Also Break a Lot of China.

Characteristics of the “Also rans” * “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” * Fortune , article on “Most Admired Global Corporations”

38 . Leaders Give … RESPECT !

Amen! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change

“ 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 college president. He was seriously interested in who you were and what you had to say .” Sara Lawrence-Lightfoot, Respect

39 . Leaders Say “ Thank You.”

“ The deepest human need is the need to be appreciated.” William James

40 . Leaders Are … Curious.

The Three Most Important Letters … WHY ?

41 . Leadership Is a … Performance.

“ It is necessary for the President to be the nation’s No. 1 actor.” FDR

42 . Leaders … Are The Brand

“ You must be the change you wish to see in the world.” Gandhi

“ You can’t lead a cavalry charge if you think you look funny on a horse.” —John Peers, President, Logical Machine Corporation

“ It’s alwa y s showtime.” —David D’Alessandro, Career Warfare

43 . Leaders … Have a GREAT STORY !

“ Leaders don’t just make products and make decisions. Leaders make meaning.” – John Seely Brown

“ A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership

Leader Job 1 Paint Portraits of Excellence !

The Re-ima g ineer’s Credo … or, Pit y the Poor Brown * Technicolor Times demand … Technicolor Leaders and Boards who recruit … Technicolor People who are then sent on … Technicolor Quests to execute … Technicolor (WOW!) Projects in partnership with … Technicolor Customers and … Technicolor Suppliers all in pursuit of … Technicolor Goals and Aspirations fit for … Tech ni col or Times. *WSC

44 . Leaders … Enjoy Leading.

“ Warren, I know you want to ‘be’ president. But do you want to ‘do’ president?”

46 . Leaders … KNOW THEMSELVES.

Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.)

Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think you’re “in touch with the pulse of things around here”? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are “so much BS”?]

47 . But … Leaders have MENTORS .

The Word According to TP : Upon having the Leadership Mantle placed upon one’s head, he/she shall never hear the unvarnished truth again!* (*Therefore, she/he needs one faithful compatriot to lay it on with no jelly.)

48 . Leaders are … RELENTLESS.

“ This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character : Grant had an extreme, almost phobic dislike of turning back and retracing his steps . If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on—turning back was not an option for him.” — Michael Korda, Ulysses Grant

Relentless : “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back , or stop, until the thing intended was accomplished.” —Grant

“ incredible power of endurance” —p olitical colleague, on Nicolas Sarkozy, repeatedly written off by the public and the celestial powers of French politics ( FT , 0515.07)

“ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author

25 2,500 63 64 48 5,000,000 2,500,000 15

25 years 2,500 Seminars 63 Countries 64/Kenya 48 States 5,000,000 Miles 2,000,000 People 15 Books

“ Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE .”

“ LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES.”

50 . Leaders Free the Lunatic Within !

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

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 !

“ You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch

51 . Leaders (and Management Gurus) Know WHEN TO LEAVE !

“ 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)

Tom Peters with KPMG

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