Tom Peters’ The Leadership 50 Leading in Totally Screwed-Up Times London/02October2002. “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army. The Leadership 50. The Basic Premise.
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Leaders-Teachers Do Not “Transform People”!Instead leaders-mentors-teachers (1) provide a contextwhich 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!
2.Great Leaders on Snorting Steeds Are Important – butGreat Talent Developers(Type I Leadership)are the Bedrock of Organizations that Perform Over the Long Haul.
33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season.
“If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly. They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in other markets to enforce their standard.”Seth Godin, Zooming
“When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played—or does she keep wandering back to strategy or philosophy?”—Larry Bossidy, Honeywell/AlliedSignal, in Execution
JackWorld/1@T: (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!
“Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.”Judy Rosener, America’s Competitive Secret
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?”Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, Business Week, 11.20.00
Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
“Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”Clayton Christensen, The Innovator’s Dilemma
“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)
CUSTOMERS: “Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.”Adrian Slywotzky, Mercer Consultants
COMPETITORS: “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.”Mark Twain
Suppliers:There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.”Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
The Cracked Ones Let in the Light“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”David Ogilvy
Deviants, Inc. “Deviance tells the story of every mass market ever created.What starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.”Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation
“The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.”—Newsweek/ Paul Saffo (03.02)
1st Law Mktg Physics: OVERTBENEFIT(Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)2ND Law: REALREASONTOBELIEVE(Stand & Deliver!)3RD Law: DRAMATICDIFFERENCE(Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to 5%)Source: Jump Start Your Business Brain, Doug Hall
“They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But what’s the point, the message, the story line, the Big Idea that makes ‘it’ all hang together?”—Exec, major consumer goods company
50+$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes/40M credit card users41% new cars/48% luxury cars$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21stCentury Will Be Ruled by the New Old
“Marketers attempts at reaching those over 50 have been miserably unsuccessful.No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher,American Demographics
“ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old
“Of all the ways the company will be judged over the next decade,none will be greater than our response to the issue of climate change.”William Clay FORD Jr.
And #3: GREEN?????:50% to 36%: Protect Environment > Economic Growth.58% to 34%: Protect Plants & Animals > Preserve Private Property Rights.
E.g.: Genetically Altered FoodWould eat: M, 71%; F, 50%Give to children: M, 59%; F, 37%Pay more for non-altered: M, 35%; F, 47%Source: www.pulse.org & USA Today
Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of Lund/SW) : 620. Lars Edenbrandt’s software: 738.*Only this time it matters!
“Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.”– Stephen Hawking, in the German magazine Focus
(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.”(2) 100% go on the Web.(3)Non-awesome are outsourced (75%??).(4)Remaining “Centers of Excellence” are retained & leveraged to the hilt!
“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that.We pay for ourselves, and we actually make money for the company.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
Gerstner’s IBM: Systems Integrator of choice. Global Services: $35B.Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
“Customer Satisfaction” to “Customer Success”“We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems
Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.”E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”).Source: USA Today/06.14.2002
“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group
“The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.”—Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.
“In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don’t talk to each other.”Boston Globe (09.30.2001)
“Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.” –Bill Owens, Lifting the Fog of War
“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. “The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective.“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/ OCT2002
“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …“Al-Qaeda represents a new and profoundly dangerous kind of organization—one that might be called a ‘virtual state.’ On September a virtual state proved that modern societies are vulnerable as never before.”—Time/09.09.2002
“The deadliest strength of America’s new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. …“ ‘Business as usual won’t do it,’ he said. His answer is to develop swifter, more lethal ways to fight. ‘Big institutions aren’t swift on their feet in adapting but rather ponderous and clumsy and slow.’ ”—The New York Times/09.04.2002
1. It’s the (OUR!) organization, stupid!2. Friction free! 3. No STOVEPIPES!4. “Stovepiping” is a F.O.—Firing Offense.5. ALL on the web! (ALL = ALL.)6. Open access!6. Project Managers rule! (E.g.: Control the purse strings and evals.)7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.)8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.)9. Solutions = “Our ‘culture.’ ”10. Partner with B.I.C. (Best-In-Class). Period.
12. All functions contribute equally—IS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc.13. Project Management can come from any function.14. WE ARE ALL IN SALES. PERIOD.15. We all invest in “wiring” the customer organization.16. WE ALL “LIVE THE BRAND.” (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.)17. We use the word “PARTNER” until we all want to barf!18. We NEVER BLAME other parts of our organization for screw-ups.19. WE AIM TO REINVENT THIS INDUSTRY!20. We hate the word-idea “COMMODITY.”
21. We believe in “High tech, High touch.”22. We are DREAMERS.23. We deliver . (PROFITS.) (CUSTOMER SUCCESS.)24. If we play the “SOLUTIONS GAME” brilliantly, no one can touch us!25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE “All Hands” affair!
Innovation & Speed’s “New Basics”*1. XFTs are the “culture.”2. Project-centric. 3. Open “talent market.”4. “Cause-based” projects. 5. Ubiquitous “open systems.” IS—at home & throughout supply chain. Web based.6. F-L-A-T.*Innovation, Speed, CRM, “Experience”/ “Solution” demand this
“Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.”Ray Lane, Kleiner Perkins
[ Words to Live By …“Hierarchy is an organization with its face toward the CEO and its ass toward the customer.”Kjell Nordström and Jonas Ridderstråle,Funky Business]
“Supply Chain” 2000:“When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.”Red Herring (09.2000)
“Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ”Source: Jean-Marie Dru, Disruption
“Guinness as a brand is all about community. It’s about bringing people together and sharing stories.”—Ralph Ardill, Imagination, in re Guinness Storehouse
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
All Equal Except …“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.Design is the only thing that differentiates one product from another in the marketplace.”Norio Ohga
“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 meaning of design. Design is the fundamentalsoul of a man-made creation.”Steve Jobs
THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the front burner.
“Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female.”Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor
Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.
Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.
“There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”Lewis Carroll
“Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined
The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer
From “1, 2 or you’re out” [JW] to …“BestTalent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)
“Why focus on these late teens and twenty-somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.”The Economist [12/2000]
“Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.”Source: Jean-Marie Dru, Disruption
Culture Change is not “Corporate.”Culture Change is not a “Program.”Culture change does not take “Years.”Culture Change does not start “Today.”Culture Change starts Right Now!Culture Change Lives in the Moment!Culture Change is Entirely in Your Hands!
Characteristics of the “Also rans”*“Minimize risk”“Respect the chain of command”“Support the boss”“Make budget”*Fortune, article on “Most Admired Global Corporations”
“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
“The two most powerful things in existence: a kind word and a thoughtful gesture.”Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal]
“My favorite word is grace– whether it’s amazinggrace, saving grace, graceunder fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or the environment.”Celeste Cooper, designer
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others.Companies will thrive on the basis of their stories and myths.Companies will need to understand that their products are less important than their stories.”Rolf Jensen, Copenhagen Institute for Future Studies
“A key – perhaps the key – to leadership isthe effective communication of a story.”Howard GardnerLeading Minds: An Anatomy of Leadership
“Some people look for things that went wrong and try to fix them.I look for things that went right and try to build on them.”—Bob Stone/ Mr. Rego/ Confessions of an Uncivil Servant
Leaders aimed on changing their world identify palpable heroes, who executed palpable projects—they point to these people and say to the masses, “See, here it is, done by one of your own.” (And then they “deep-dip” a few of those heroes to demo their seriousness.)
REAL Org Change:Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes(mostly extant: “burned to reinvent gov’t”)/ Stories&Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders&Recognition(Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers(networking mania)/ Protectors/ Support Groups/ End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus(3 COs) (long way away)/Speed (O.O.D.A. Loops—act before the “bad guys” can react)C.f., Bob Stone, Confessions of an Uncivil Servant