Tom Peters REIMAGINE EXCELLENCE2016 HSM Expo 2016Tetra Pak

Tom Peters’ ! RE-IMAGINE EXCELLENCE/2016 HSM Expo 2016/Tetra Pak Sao Paulo/08 November 2016 (This presentation/10+ years of presentation slides at tompeters. com; also see our annotated 23 -part Monster-Master at excellencenow. com)

Conrad’s Commandment

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career? ” His answer …

“Remember to tuck the shower curtain inside the bathtub. ”

INNOVATION

50: INNOVATION I/Lesson WTTMSW++

WHOEVER TRIES THE MOST STUFF WINS

“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

Bach “The difference between and his forgotten peers isn’t necessarily that he had a better ratio of hits to misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more than a thousand fullfledged musical compositions. A genius is a genius, psychologist Paul Simonton maintains, because he can put together such a staggering number of insights, ideas, theories, random observations, and unexpected connections that he almost inevitably ends up with something great. ‘Quality, ’ Simonton writes, ‘is a probabilistic function of quantity. ’” —Malcolm Gladwell, “Creation Myth, ” New Yorker

“Fail. Forward. Fast. ” —High Tech CEO, Pennsylvania “Fail faster. Succeed sooner. ” —David Kelley/IDEO “Move fast. Break things. ” —Facebook “Success represents one percent of your work, which results only from the ninety-nine percent that is called failure. ” —Soichiro Honda

“What really matters is that companies that don’t continue to COMPANIES THAT DON’T experiment— EMBRACE FAILURE — eventually get in a desperate position, where the only thing they can do is make a ‘Hail Mary’ bet at the end. ” —Jeff Bezos

“If things seem under control, you’re just not going fast enough. ” —Mario Andretti, race driver “I’m not comfortable unless I’m uncomfortable. ” —Jay Chiat “If it works, it’s obsolete. ” —Marshall Mc. Luhan

WTTMSASTMSUTFW

WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP THE FASTEST WINS

“EXPERIMENT FEARLESSLY” Source: Business. Week, “Type A Organization Strategies: How to Hit a Moving Target”— TACTIC #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions

Try It: V )B T L ( ittle ery ig hings

Big carts = 1. 5 X Source: Walmart

Las Vegas Casino/2 X: slightly curved “When Friedman the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who one-third to nearly two-thirds. ” entered increased from —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

(1) Amenable to rapid experimentation/ failure “free” (PR, $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier

Required: “Try It” Culture

“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

“Try It” Culture “Experiment fearlessly” It’s all about attitude! One Big Innovation Lab! Accessible micro-experiment budget! Hyper-quick approval process! Hyper-quick prototyping! Mini-project teams born in a flash! Do “everything at once” (“Let 1, 000 flowers bloom”) (Boss as Gardener-in-Chief? )

“Culture eats strategy for breakfast. ” —Ed Schein/1986

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people Yet I came to see in my time at IBM that culture isn’t just one aspect of the is very, very hard. game —IT IS THE GAME. ” —Lou Gerstner, Who Says Elephants Can’t Dance

We Are What We Eat. We Are Who We Hang Out With.

Diversity: “IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES OF PROGRESS. ” —John Stuart Mill

The “We are what we eat”/ “We are who we hang out with” every !!! Axiom: At its core, ( ) relationship-partnership decision (employee, vendor, customer, etc. , strategic etc. ) is a decision about: “Innovate, ‘Yes’ or ‘No’ ”

“The Bottleneck is at the … “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 … Top of the Bottle” — Gary Hamel/Harvard Business Review

Diversity: Board Fit for the Age/2017 Consider a 10 -person Board of Directors fit for 2017. Here are my compositional “rules” (categories not mutually exclusive)*: At least two members under 30 At least three women One IT/data analytics superstar One or, better yet, two entrepreneurs One person with a “weird” background— artist, musician, shaman, etc. No more than two (one? ) over 60 No more than three (four? ) with MBAs (Possible: One VC) (Possible: One designer) (*Partial inspiration: W. Ross Ashby’s “Law of Requisite Variety. ” The diversity of the board should roughly match the diversity of the context/environment. )

VALUE-ADDED

! 10 August 2011

Design RULES! APPLE market cap > Exxon Mobil* *10 August 2011

“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the DESIGN IS THE FUNDAMENTAL SOUL OF A MANMADE CREATION. ” meaning of design. —Steve Jobs

“Steve and Jony would discuss corners for hours and hours. ” —Laurene Powell Jobs

Hypothesis: Men cannot design for women’s !!? ? needs

Women BUY [Everything] !

W > 2 X (C + I) = $28 TRILLION “Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN. ” Source: Headline, Economist

W> 2 X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 TRILLION in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined— more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” Source: Michael Silverstein and Kate Sayre, “The Female Economy, ” HBR

Women as Decision Makers/Various sources Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55 B travel equipment) Houses … 91% D. I. Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (influence 90%) All consumer purchases … 83% * Bank Account … 89% 67% Small business loans/biz starts … 70% Health Care … 80% Household investment decisions … *In the USA women hold >50% managerial positions including >50% purchasing officer positions; hence women also make the majority of commercial purchasing decisions.

MOST SIGNIFICANT VARIABLE in EVERY “The sales situation is the GENDER of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender. ” —Jeffery Tobias Halter, Selling to Men, Selling to Women

Can you pass the … “Squint test” ?

Value-Added on Steroids: The [ENORMOUS] [UBIQUITOUS] “Services Added” Opportunity

“Rolls-Royce now earns MORE from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them. ” —Economist

PS U to

UPS = United Problem Solvers

“It’s all about solutions. We talk with customers about how to run better, stronger, cheaper supply chains. We have 1, 000 engineers who work with customers …” —Bob Stoffel, UPS senior exec

Master. Card Advisors

Alternatively/ “Value-Added Client Service Maestros …” Tasks. E. g. : *Systems integrators. *Systemic value-added strategists for total Client operations. *Integrated Systems Operators/Managers *Systemic productivity improvement and management *Strategic technology integrators/Value-added tech strategists *Systemic quality management *Client employee training *High value-added subcontractors/full-scale partners for a myriad of Client needs—i. e. , a de facto General Store, ready (like Schlumberger above) to do any damn thing the Client would like to have done Roles. E. g. : Advisory Operational: Subcontractors/Managers of subcontractors Joint-venture partners

PEOPLE

Putting People [REALLY] First

“PEOPLE BEFORE STRATEGY” —Lead article, Harvard Business Review. July-August 2015, by Ram Charan, Dominic Barton, and Dennis Carey “You have to treat your employees like customers. ” —Herb Kelleher “What employees experience, Customers will. The best YOUR CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR EMPLOYEES. ” marketing is happy, engaged employees. —John Di. Julius, The Customer Service Revolution: If you want staff to give great service, give great service to staff. ” —Ari Weinzweig, Zingerman’s

“In a world where customers wake up every morning asking, ‘What’s new, what’s different, what’s amazing? ’ success depends on a company’s ability to unleash initiative, imagination and passion of employees at all levels —and this can only happen if all those folks are connected heart and soul to their work [their ‘calling’], their company and their mission. ” —John Mackey and Raj Sisodia, Conscious Capitalism: Liberating the Heroic Spirit of Business

Your principal moral obligation as a leader is to develop the skillset, “soft” and “hard, ” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities. The bonus: This is also the #1 mid- to long-term … profit maximization strategy! CORPORATE MANDATE #1 2016:

Training = Investment 1! #

In the Army, 3 -star generals worry about training. In most businesses, it's a “hohum” mid-level staff function.

>> 8 of 10 CEOs, in 45 -min “tour d’horizon” of their biz, would NOT mention training. Bet #4:

#1 What is the reason to go berserk over training?

What is the best reason to go bananas over training? GREED. (It pays off. ) (Also: Training should be an official part of the R&D budget and a capital expense. )

st 1 -Line Leaders

Employee retention & satisfaction: “Overwhelmingly based on the first-line manager!” —Marcus Buckingham/Curt Coffman, First, Break All the Rules “People leave managers not companies. ” —Dave Wheeler

LEADERSHIP: SOME STUFF

MBWA 25* *Managing by Wandering Around

“I’m always stopping by our at least a week. stores— 25 I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up as much as I can. ” —Howard Schultz Source: Fortune, “Secrets of Greatness”

1 Mouth, 2 Ears

[An obsession with] Listening is. . . the ultimate mark of Respect . Listening is. . . the heart and soul of Engagement. Listening is. . . the heart and soul of Kindness. Listening is. . . the heart and soul of Thoughtfulness. Listening is. . . the basis for true Collaboration. Listening is. . . the basis for true Partnership. Listening is. . . a Team Sport. Listening is. . . a Developable Individual Skill. * (*Though women are far better at it than men. ) Listening is. . . the basis for Community. Listening is. . . the bedrock of Joint Ventures that work. Listening is. . . the bedrock of Joint Ventures that grow. Listening is. . . the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organization effectiveness. )

Suggested Core Value #1: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth. ”

Part ONE: LISTEN* (pp 11 -116, of 364) *“The key to every one of our [eight] leadership attributes was the vital importance of a leader’s ability to listen. ” (One of Branson’s personal keys to listening is notetaking—he has hundreds of notebooks. ) Source: Richard Branson, The Virgin Way: How to Listen, Learn, Laugh, and Lead

THE END GAME

RULE 2016: AVOID MODERATION

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!

“INSANELY GREAT” STEVE JOBS “RADICALLY THRILLING” BMW “ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER “BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER “MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.