Tom Peters The Leadership 50 Leading in Totally Screwed-Up Times London/02October2002.

Tom Peters’

The Leadership50Leading 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

Leadership50

The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

Leaders-Teachers Do Not “Transform People”!

Instead leaders-mentors-teachers (1) provide a context which 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!

1A. Leaders …

Cede Control.

“I don’t know.”

1B. Leaders Try … Not to Screw

Things Up

“Ninety percent of what we call ‘management’ consists of making it

difficult for people to get things done.” – P.D.

The Leadership

Types.

2. Great Leaders on Snorting

Steeds Are Important – but

Great Talent Developers (Type I

Leadership) are the Bedrock of Organizations that Perform Over

the Long Haul.

25/8/53*(*Damn it!)

Whoops: Jack didn’t have a vision!

3. But Then Again, There Are Times When This “Cult of Personality”

(Type II Leadership) Stuff Actually Works!

“A leader is a dealer in hope.”

Napoleon

(+TP’s writing room pics)

4. Find the “Businesspeople”!

(Type III Leadership)

I.P.M. (Inspired Profit

Mechanic)

4A. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership Triangle: (1) Creator-

Visionary … (2) Talent Fanatic-Mentor-V.C. …

(3) Inspired Profit Mechanic.

5. Leadership Mantra

#1: IT ALL DEPENDS!

Renaissance Men are … a snare, a

myth, a delusion!

5A. The Leader Is Rarely/Never the Best Performer.

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.

The Leadership

Dance.

6. Leaders …

SHOW UP!

Rudy!

6A. Leaders … LOVE the

MESS!

“I’m not happy unless

I’m uncomfortable.”—Jay Chiat

“If things seem under control, you’re just not

going fast enough.”

Mario Andretti

7. Leaders

DO!

The Kotler Doctrine:

1965-1980: R.A.F.(Ready.Aim.Fire.)

1980-1995: R.F.A.(Ready.Fire!Aim.)

1995-????: F.F.F.(Fire!Fire!Fire!)

7A. Leaders

Re-do.

“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

“If it works, it’s

obsolete.”

—Marshall McLuhan

8. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

9. Leaders …

DELIVER!

“Leaders don’t

‘want to’ win.

Leaders ‘need to’ win.”

#49

“It is no use saying ‘We are doing our best.’ You have got to succeed in doing

what is necessary.” —WSC

“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

9A. Leaders Are …

Optimists.

Hackneyed but none the less

true: LEADERS SEE CUPS AS “HALF

FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent

happiness.”Lou Cannon, George (08.2000)

10. BUT … Leaders Are

Realists/Leaders Win Through LOGISTICS!

The “Gus [Pagonis]

Imperative”!

11. Leaders

FOCUS!

“To Don’t ” List

11A. Leaders …

Set CLEAR DESIGN SPECS.

Danger: S.I.O. (Strategic

Initiative Overload)

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!

11B. Leaders …

Send V-E-R-Y Clear Signals About

Design Specs!

Ridin’ with Roger: “What have you done to

DRAMATICALLY IMPROVE quality in the

last 90 days?”

It’s Relationships,

Stupid.

12. Leaders Trust in

TRUST!

Credibility!

12A. Leaders Infuse the Dreaded-All Important “Evaluation Process”

with CREDIBILITY!

25 = 100

13. Leaders …

Understand the Ultimate Power of RELATIONSHIPS.

“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

14. Leaders Know …

Women Roar/ Women Rule.

“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

If It Ain’t Broke … Break It.

15. Leaders …FORGET!/

Leaders … DESTROY!

Forget>“Learn”

“The problem is never how to get new, innovative

thoughts into your mind,

but how to get the old ones out.”

Dee Hock

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

Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc.

Cortez!

Jim & Tom. Joined at the

hip. Not.

16. BUT … Leaders

Have to Deliver, So They Worry About “Throwing the Baby Out with the

Bathwater.”

“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)

17. Leaders …

HONOR THE USURPERS.

Saviors-in-Waiting

Disgruntled CustomersUpstart CompetitorsRogue EmployeesFringe Suppliers

Wayne Burkan, Wide Angle Vision

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

Employees: “Are there enough weird

people in the lab these days?”

V. Chmn., pharmaceutical house, to a lab director (06.01)

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

17A. Leaders …

HANG OUT WITH FREAKS!

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

Leaders know … WE BECOME WHO

WE HANG WITH!

18. Leaders Make [Lotsa] Mistakes

– and MAKE NO BONES ABOUT IT!

Sam’s

Secret #1!

Fail. Forward. Fast. –High-tech Exec

“Fail faster. Succeed sooner.”

David Kelley/IDEO

“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)

Read This!

Richard Farson & Ralph Keyes: Whoever Makes the Most

Mistakes Wins: The Paradox of Innovation

18A. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre successes.”

Phil Daniels, Sydney exec (and, de facto, Jack)

Create.

19. Leaders Know that

THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW

MARKETS.

“Acquisitions are about

buying market share. Our challenge is to create markets.

There is a big difference.” Peter Job, CEO, Reuters

No one ever made it into the Business Hall of Fame on a record of

“line extensions.”

20. Leaders Pursue

DRAMATIC DIFFERENCE!

1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.”

Source #1: Personal Passion)

2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!)

3RD Law: DRAMATIC DIFFERENCE (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

20A. Leaders … Make Their Mark /

Leaders … Do Stuff That Matters

“I never, ever thought of myself

as a businessman. I was interested in creating

things I would be proud of.” —Richard Branson

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Trends.

21. Leaders “Get” the …

Big3 Trends

Trends I:

Women Roar.

Trends II:

Boomer Bonanza/ Godzilla Geezer.

Subject: Marketers & Stupidity

“It’s 18-44, stupid!”

Subject: Marketers & Stupidity

Or is it: “18-44 is stupid,

stupid!”

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47%)

50+

$7T wealth (70%)/$2T annual income50% all discretionary spending

79% own homes/40M credit card users41% new cars/48% luxury cars

$610B healthcare spending/74% prescription drugs

5% of advertising targets

Ken Dychtwald, Age Power: How the 21st Century 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

Trends III:

Green = $$$$$$

“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 Food

Would 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

No: “Target Marketing”

Yes: “Target

Innovation” & “Target Delivery Systems”

New Model.

22. Leaders … Understand the

Enormity of the White Collar Revolution.

108 X 5vs.

8 X 1= 540 vs. 8 (-98.5%)

E.g. …

Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in

3 years.

Source: BW (01.28.02)

IBM’s Project

eLiza!** “Self-bootstrapping”/ “Artilects”

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

23. Leaders … Turn All

Departments into “PSFs.”

So what will be the Basic Building

Block of the New Org?

Every job done in W.C.W. is

also done “outside”

…for profit!

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, etc.] Inc.

Model PSF …

(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)

24. Leaders Push Their

Organizations W-a-y Up the Value-added/

Intellectual Capital Chain

The Big Day!

09.11.2000: HP bids

$18,000,000,000for

PricewaterhouseCoopersConsulting business!

“These days, building the best server isn’t enough. That’s the

price of entry.”

Ann Livermore, Hewlett-Packard

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).

“You are headed for commodity

hell if you don’t have services.”—Lou Gerstner on IBM’s coming

revolution (1997)

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

“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

Keep In Mind: Customer

Satisfaction versus

Customer

Success

Was: Bunch of Guys Who Make Circuit Breakers Division.

Is: GE Industrial 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

E.g. …

UTC/Otis + Carrier: boxes to “integrated building systems”

“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

Omnicom: 57%

(of $6B) from marketing services

25. Leaders …

Demolish Stovepipes!

“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

The …

Solutions25.

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)

26. Leaders Know that the “HVA/Solutions

Revolution” rests upon: Experiences … Dream Fulfillment … Design.

A World of Scintillating/

Awesome/ WOW “Experiences.”

“Experiences are 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

The “Experience Ladder”

Experiences Services

Goods Raw Materials

The [Mostly Ignored] “Soul” of “Experiences”:

Design Rules!

Design’s place in the universe.

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

“Design is treated like a religion at

BMW.”Fortune

“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 fundamental soul

of a man-made creation.”

Steve Jobs

Bottom Line.

Design “is” … WHAT & WHY I LOVE.

LOVE.

Design “is” … WHY I

GET MAD. MAD.

Design is never neutral.

Hypothesis: DESIGN is the principal difference between love and

hate!

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.

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

needs.

“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)

Technology.

27. Leaders

LOVE the New Technology!

100 square feet

WebWorld = Everything

Web as a way to run your business’s innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as 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

I’net …

… allows you to dream dreams

you could never have dreamed

before!

“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

28. Needed? Type IV Leadership: Technology

Dreamer-True Believer

The Golden Leadership Quadrangle: (1) Creator-Visionary … (2) Talent

Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True

Believer

Talent.

29. When It Comes to

TALENT … Leaders Always Swing

for the Fences!

From “1, 2 or you’re out” [JW] to …

“Best Talent in each industry segment to build

best proprietary intangibles” [EM]

Source: Ed Michaels, War for Talent (05.17.00)

Message: Some people are better than other

people. Some people are a helluva lot better than other

people.

30. Leaders Don’t Create “Followers”:

THEY CREATE LEADERS!

“I start with the premise that the

function of leadership is to produce more leaders, not more

followers.”—Ralph Nader

Brand You, Big Time!

I AM AN ARMY OF

ONE

31. Leaders “Win Followers Over”

WHAT AN IDIOT: “Instead of employees being in the driver’s

seat, now we’re in the driver’s seat.”

PJ: “Coaching is winning

players over.”

32. Leaders “Manage” Their

EVP/Internal Brand Promise.

MantraM3

Talent = Brand

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward

Source: Ed Michaels et al., The War for Talent

33. Leaders LOVE KIDS.

“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]

8 Minutes*

—Dr. Sugata Mira, NIIT/ New Delhi/ 1999**

*Ignorance to Surfing**And then there’s oya yubi sedai, the “thumb generation”

Passion.

34. Leaders …

Out Their

PASSION!

G.H.: “Create a ‘cause,’ not a ‘business.’ ”

“Vision is a

love affair with an idea.”—Boyd Clarke & Ron

Crossland, The Leader’s Voice

“Apple opposes, IBM solves, Nike exhorts,

Virgin enlightens, Sony dreams, Benetton

protests. … Brands are not nouns but verbs.”

Source: Jean-Marie Dru, Disruption

35. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

BZ: “I am a … Dispenser of Enthusiasm!”

36. Leaders Focus on the

SOFT STUFF!

“Soft” Is “Hard”

- ISOE

36A. Leaders Know …

“Culture Change” Takes But a Minute. (No Bull!)

What Do I “Do” First?

One Minute Excellence!*

*Thomas Watson

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!

The “Job” of Leading.

37. Leaders Know It’s

ALL SALES ALL THE TIME.

TP: If you don’t LOVE SALES … find

another life. (Don’t pretend

you’re a “leader.”) (See TP’s The Project50.)

37A. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

38. But … Leaders Also

Break a Lot of China

If you’re not pissing people off, you’re not making

a difference!

Characteristics of the “Also rans”*

“Minimize risk”“Respect the chain of

command”“Support the boss”

“Make budget”

*Fortune, article on “Most Admired Global Corporations”

Joe J. Jones Joe J. Jones 1942 – 2002 1942 – 2002

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

39. Leaders

Give … RESPECT!

“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

40. Leaders Say

“Thank You.”

“The deepest human

need is the need to be appreciated.”

William James

“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]

40A. Leaders Are …

Graceful.

“My favorite word is grace –

whether it’s amazing grace,

saving grace, grace under

fire, Grace Kelly. How we live contributes to beauty – whether it’s how we treat other people or

the environment.”

Celeste Cooper, designer

Rodale’s on “Grace” …

elegance … charm … loveliness … poetry in motion … kindliness ..

benevolence … benefaction … compassion … beauty

41. Leaders Are …

Curious.

TP/08.2001: The Three Most Important Letters …

WHY?

42. Leadership Is a …

Performance.

“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

43. Leaders … Are The Brand

“WHO ARE YOU [these days] ?”

TP to Client

The BRAND lives (OR DIES) in the “minutiae” of the leader’s moment-

to-moment actions.

“You must be the change you

wish to see in the world.”

Gandhi

“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

44. Leaders …

Have a GREAT STORY!

“A key – perhaps the key – to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

45. Leaders Seed & Pursue &

Recognize (Weird) “Demos.”

“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

Each VP a V.C.: Portfolio of high-risk investments in

people & ideas from all across the company.

Introspection.

46. Leaders …

Enjoy Leading.

Warren’s “Whoops Moment” …

“Warren, I know you want to ‘be’

president. But do you want to ‘do’

president?”

47. Leaders

LAUGH!

47A. But … Leaders Know

“It’s My Fault.”

You recruited ’em.You hired ’em.

You trained ’em. You evaluated ’em.

You “motivated” ’em.

48. Leaders … Take Breaks.

Zombie!Zombie!Zombie!Zombie!

The End Game.

49. Leaders ???

:

“Leadership is the PROCESS of

ENGAGING PEOPLE in CREATING a LEGACY

of EXCELLENCE.”

“ ‘It’s only business, not personal’ … IT

ALWAYS IS PERSONAL.”

“Hire smart – go bonkers – have grace – make mistakes – love technology – start all

over again.”

“LEADERS NEED TO BE THE ROCK OF

GIBRALTAR ON ROLLER BLADES”

50. Leaders Know

WHEN TO LEAVE!

Thank You!