LONGTom Peters’ X25*EXCELLENCE. ALWAYS.MilSOFT/Ankara/07 May 2007*In Search of Excellence 1982-2007
Ho hum: 2+ weeks in New Zealand …PfizerFordGapChryslerYahoomicrosoftwal*mart??????
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin
“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
“It is generally much easier tokill an organizationthan change it substantially.”—Kevin Kelly, Out of Control
Excellence1982: 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”
ExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields$85,000EI: $10,000 yields$140,050*Forbes/Excellence Index/Basket of 32 publicly traded stocks
Why in the World did you go to Siberia?
The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow!
Enterprise* ** (*at its best):An emotional, vital, innovative, joyful,creative,entrepreneurial endeavor that elicits maximum concerted human potential in the wholeheartedservice of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“Business is about … solutions & experiences that surprise and amaze and stick in customers’ minds*—which are created and delivered by a committed, energetic team from within & outside the organization.”—Tom Peters*Apple, Whole Foods, Cirque du Soleil, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wannamaker’s (circa 1880)
“Make sure your top team includes top talent in design, engineering and manufacturing, because that’s your only priority— to build cars people want to buy. Hot styling sells them and quality keeps them sold.”—Lee Iacocca, Where Have All the Leaders Gone?
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
*Basement Systems Inc.*Larry Janesky*Dry Basement Science(115,000!)*1993: $0; 2003: $12M; 2006: $50,000,000+
“Analysts … preferred cost cutting,as long as they could see two or three years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell.They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!”—Dick Kovacevich, Wells Fargo
. “Everyone lives by selling something.” – Robert Louis Stevenson
The Mess Is the Message! Period!An Economic Interpretation of the Constitution of the United States —Charles Beard (1913)The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger—Marc LevinsonTube: The Invention of Television—David & Marshall FisherEmpires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World—Jill JonnesThe Soul of a New Machine—Tracy KidderRosalind Franklin: The Dark Lady of DNA—Brenda MaddoxThe Blitzkrieg Myth—John Mosier
First-level Scientific SuccessThe smartest guy in the room wins”Or …
First-level Scientific SuccessFanaticismPersistence-Dogged TenacityPatience (long haul/decades)-Impatience (in a hurry/”do it yesterday”)PassionEnergyRelentlessness (Grant-ian) EnthusiasmDriven (nuts!) (Brutal?) CompetitivenessEntrepreneurialPragmatic (R.F!A.)Scrounge (“gets” the logistics-infrastructure bit)Master of Politics (internal-external)Tactical GeniusPursuit of (Oceanic) Excellence!High EQ/Skillful in Attracting + Keeping Talent/MagneticProlific (“ground up more pig brains”)EgocentricSense of History-DestinyFuturistic-In the MomentMono-dimensional (“Work-life balance”? Ha!)Exceptionally IntelligentExceptionally Clever (methodological shortcuts/methodological genius)Luck
Dick Kovacevich:You don’t get better by being bigger. You get worse.”
“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, 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)
“Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger.Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.”—Jim Collins/Time/2004
“Schrempp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring assets and building empires that just didn’t work.”—Arndt Ellinghorst/ analyst/Dresdner Kleinwort Wasserstein
Spinoffs systematically perform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble”—Jerry Knight/ Washington Post/ 08.05
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.”—Peter Job, former CEO, Reuters