Tom Peters EXCELLENCE ALWAYS Grocery Innovations Canada Innovations

Tom Peters’ EXCELLENCE. ALWAYS. Grocery Innovations Canada Innovations Alimentaires Canada Toronto Congress Center 27 October 2008

Slides at … tompeters. com

1, 000+

“Tom let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesn’t go in or any such thing, just drives by and takes a look. ”

Derby CT

“Kindness is free. ”

139, 380 former patients from 225 hospitals: Press Ganey Assoc: none of THE top 15 factors determining Patient Satisfaction referred to patient’s health outcome P. S. directly related to Staff Interaction P. P. S. directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being nonresponsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way. ” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin: Music in the parking lot; professional musicians in the lobby (7/week, 3 -4 hrs/day): Five pianos Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

The 9 Planetree Practices* 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health *See the APPENDIX to this presentation for more on Plantree Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc. ) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Access to nurses station: “Happen to” vs “Happen with” Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results: Financially successful. Expanding programsphysically. Growing market share. Only hospital in “ 100 Best Cos to Work for”— 7 consecutive years, currently #6. —“Five-Star Hospitals, ” Joe Flower, strategy+business

Dallas Philadelphia

“You have to treat your employees like customers. ” —Herb Kelleher, complete answer, upon being asked his “secrets to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer, ” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

The Customer Comes Second —Hal Rosenbluth and Diane Mc. Ferrin Peters* (*no relation)

Melbourne Seymour CT

Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

Jim’s Group: Jim Penman. * 1984: Jim’s Mowing. 2006: Jim’s Group. 2, 600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first. ” Private. Small staff. Franchisees can leave at will. 0 -1 complaint per year is norm; cut bad ones quickly. *Ph. D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006

*Basement Systems Inc. *Larry Janesky *Dry Basement Science (115, 000!) *1990: $0; 2003: $13 M; 2007: $62, 000

Canada

Three of Ten: Four Seasons (hospitality)/ London Drugs (retail)/ Cirque du Soleil (overall) Private Focused Measured growth People 1 st Unique Experience Excellence

“All Strategy Is Local: True competitive advantages are harder to find and maintain than people realize. The Focus: odds are best in tightly drawn markets, not big, sprawling ones” —Title/ Bruce Greenwald & Judd Kahn/HBR

“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 ability for a 43 -year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. ” Harley exec, quoted in Results-Based Leadership

“You know a design is good when you want to lick it. ” —Steve Jobs Source: Design: Intelligence Made Visible, Stephen Bayley & Terence Conran

“To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation. ” —W. Chan Kim & Renée Mauborgne, “Think for Yourself — Stop Copying a Rival, ” Financial Times

“Business people don’t need to ‘understand designers better. ’ Businesspeople need to be designers. ” —Roger Martin/Dean/Rotman Management School/ University of Toronto

Hypothesis: DESIGN is the principal difference between love and hate!

Message (? ? ? ): cannot Men design for women’s needs.

<TGW and >TGR [Things Gone WRONG/Things Gone RIGHT]

2 -cent candy

Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in your long and distinguished career? ” His immediate answer: “remember to tuck the shower curtain inside the bathtub”

Germany

#4 Japan #3 USA #2 China #1 Germany

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait. ” myself? ’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

You don’t get better by being bigger. You get worse. ” Dick Kovacevich:

Small Giants: Companies That Choose To Be Great Instead Of Big —by Bo Burlingham

Small Giants/Bo Burlingham "First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create. " "Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow. " "Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business -- a relationship that went well beyond the usual concept of `giving back. '" "Fourth, they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises. "

Small Giants/Bo Burlingham "Fifth, the companies also had what struck me as unusually intimate workplaces. " "Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with. " "Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion. "

Wallop Wal-Mart 16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart 16 *Niche-aimed. (Never, ever “all things for all people, ” a “mini. Wal*Mart. ) *Never attack the monsters head business and lukewarm customers. ) on! (Instead steal niche *“Dramatically Different” (La Difference. . . within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT. ) *Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9. 99 out of 10 cases. ) *Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

The “Small Guys” Guide: Wallop Wal*Mart 16 *Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) *A community out of it!) star! (“Sell” local-ness per se. Sell the hell *An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) *DESIGN DRIVEN! (“Design” is a premier weapon-inpursuit-of-the sublime for small-ish enterprises, including the professional services. )

The “Small Guys” Guide: Wallop Wal*Mart 16 *Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies. ) (THIS IS EMINENTLY DO-ABLE!!) *Sophisticated use of information technology. (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) *Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing. ) *Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community. )

The “Small Guys” Guide: Wallop Wal*Mart 16 *Brand-Lovemark* (*Kevin Roberts) Maniacs! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regionalniche “lovemark. ”) *Focus on women-as-clients. (Most don’t. How stupid. ) Excellence! * (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)

“In-sanely-great”

Radically Thrilling Language! “Radically Thrilling. ” —BMW Z 4 (ad)

“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

1982

Excellence 1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

“Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

Hard Is Soft Is Hard

Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships))

Why in the World did you go to Siberia?

An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others. ** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

… no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

Thank you , 7 -11 …

“How to flush $500, 000 down the toilet in one easy lesson!!” TP:

< CAPEX > People!

“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

Brand = Talent.

#1/100 “Best Companies to Work for”/2005

Wegmans

‘SERVE’ “Leaders people. Period. ” —inspired by Robert Greenleaf

“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

The Dream Manager —Matthew Kelly “An organization can only become the-best-version-ofitself to the extent that the people who drive that organization are striving to become better-versions-ofthemselves. ” “A company’s purpose is to become thebest-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-bestversion-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers. ”

“The four most important words in any organization are … ‘What do you think? ’ ” Source: courtesy Dave Wheeler, posted at tompeters. com, source of original unknown (0609. 08)

18”

#1 cause of Dis-satisfaction?

Thank you , Marshall & Edie …

“To develop others, start with yourself. ” —Marshall Goldsmith

“Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader. ” —Edie Seashore (Strategy + Business #45)

“How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be. The problem is an acute lack of feedback [especially on people issues]. ” —Daniel Goleman (et al. ), The New Leaders

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

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

“The one thing 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

Thank you, Henry , Marshall & Steve …

“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart. ” —Henry Clay

“I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better. ” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successfu.

Relationships : THERE ONCE WAS A TIME WHEN A THREEMINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. (of all varieties)

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. * PROBLEM ** *Watergate, M Stewart, BR **And: PERCEPTION IS ALL THERE IS!

Thank you, Heather …

24 /3

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

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

“Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%. ” —Economist, April 15

most significant variable in every sales situation is the gender of the buyer, and “The more importantly, how the salesperson communicates to the buyer’s gender. ” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer Jill and Jack buy slacks in black…

Cases! Mc. Donald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) De. Beers (“right-hand rings”/$4 B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends, ” not a blond stereotype) Source: Fara Warner/The Power of the Purse

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

Purchasing Patterns Harder to convince; more loyal once convinced. Women: Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women

2. 6 vs. 21

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. * *Editor-in-Chief, Redwood Publications (UK)

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

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

24 M/3 F *Shades of Highpoint (0 -17)

Thank you, Bill …

!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them. ” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/13

2000 -2010 Stats 18 -44: -1% 55+: +21% (55 -64: +47%)

44 -65: “New Customer Majority” * *45% larger than 18 -43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous, ) the most health conscious, the most female, the most profoundly important commercial market in the history of the world we will be the Center of your universe for the next twenty-five years. We —and have arrived!

Thank you, John (et al. ) …

1/40+

“This is so simple it sounds stupid, but it is amazing you only find oil if you drill wells. how few oil people really understand that You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill. ” Source: The Hunters, by John Masters, Canadian O & G wildcatter

“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version # 5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months. ” — Bloomberg by Bloomberg

“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation. ” —Michael Schrage, Serious Play

Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have. ” —Michael Schrage

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. ” —Charles Darwin

He who has the quickest “O. O. D. A. Loops”* wins! *Observe. Orient. Decide. Act. /Col. John Boyd

1/40 y it. Try ry it. Try it. Screw it up. Try it. Scre. it. Try it. try it. Try it. Screw Scre up. Try it.

Thank you, Kevin, Horatio & Mike …

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!

“[other] admirals more frightened of losing than anxious to win” On NELSON:

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

Sam’s Secret #1!