Download
1 / 505
E N D
Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updatedMaster Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point!
NOTE:To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller”and“Verdana”
Tom Peters’ X25*EXCELLENCE. ALWAYS.ALTERNATE Master/Gaffes12 November 2007*In Search of Excellence 1982-2007
Tom Peters’ X25*EXCELLENCE. ALWAYS.Maybe.ALTERNATE Master/Gaffes12 November 2007*In Search of Excellence 1982-2007
Better title? The “excellence” bit and the “always” bit are fine; it’s the analysis thereof I wish to call into question here..
The “Over-rated Eight”:Big companies!Public companies!“Cool” industries!Stability!Famous CEOs!“Hard” stuff!“Success”!Plans!
These are a few of the implicit or explicit things that most all “gurus” [incl. yrs. truly much of the time] focus on. That are mostly or wholly wrong.
Over-rated:Big companies!Public companies!“Cool” industries!Stability!Famous CEOs!“Hard” stuff!“Success”!Plans!
That’s the emergent conclusion from Citi’s woes. (Yikes: Some are muttering the same thing about … GE.)
Dick Kovacevich:You don’t get better by being bigger. You get worse.”
Kovacevich ran Wells Fargo brilliantly—his other passion was a focus on revenue growth rather than a diet of cutting, cutting, cutting. (Reminds me of the subtitle to my 1997 book, Circle of Innovation: “You can’t shrink your way to greatness.)
“Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals.”—Financial Times, 0329.07, on possible Barclays-ABN Amro merger (“When it comes to asking the stock market whether bigger banks are better, the current answer is a resounding ‘no.” —Citigroup analysis, 2006)
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious:Buy a very large one and just wait.”—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“Forbes100” from 1917 to 1987:39members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from 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
“Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times
“Data drawn from the real world attest to a fact that is beyond our control:Everything in existence tends to deteriorate.”—Norberto Odebrecht, Education Through Work
Odebrecht is a big (heavy industry) Brazilian engineering company.
Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in 2004. The 1997 crisis “destroyed halfof Korea’s 30 largest conglomerates.”Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)
“Everything in existence tends to deteriorate”/ “Buy a very large one and just wait”= License (Mandate!) for Radical Action
The Big Co situation is nigh on hopeless—so you might as well “go for it.” You’ve nothing to lose.
Middle-sized stars. (Of long standing.*) Global masters. High-value niches.*The “German secret”
Or … Goldmann Produktions(11/50%/$5M/”dip and coat,” expensive pigments vs “through coloring,” fadesBekro Chemie)
When I studied them, Goldmann had but 11 people, most PhDs, and a 50% world market share!
Principal Mittelstand companies I studied—I may be the only American who’s made a serious study of the Mittelstand??
“Skunk Camp” #1: American “Mittelstand” (A.W.O.L.: F500) Frank Perdue/ Perdue Farms (“It takes a tough man to make a tender chicken.”) Tom Malone/ Milliken and Company Don Burr/ People Express Tom Monaghan/ Domino’s Pizza Stew Leonard/ Stew Leonard’s Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs(Bob almost single-handedly invented what we now call “knowledge management.”)
By accident I became enamored with the largely unsung “American Mittelstand.” Why? They came to my big seminars—the F500 didn’t. (In Search of Excellence was pure Big Co.)
China’s success has effectively been Mittelstand-ish. The state-run giants have staggered along—the successful startups (many, many are unsuccessful) have been the Chinese growth engine.
The “Over-rated Eight”:Big companies!Public companies!“Cool” industries!Stability!Famous CEOs!“Hard” stuff!“Success”!Plans!
Family BusinessesTwo-thirds of total #s of companiesOne-half of biggest companies>One-half GDP>One-half employment6% more profitable7% better ROAHigher income growthHigher revenue growthSource: John Davis, HBS
“Skunk Camp” #1: American “Mittelstand” (A.W.O.L.: F500) Frank Perdue/ Perdue Farms (“It takes a tough man to make a tender chicken.”) Tom Malone/ Milliken and Company Don Burr/ People Express Tom Monaghan/ Domino’s Pizza Stew Leonard/ Stew Leonard’s Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs(Bob almost single-handedly invented what we now call “knowledge management.”)
