Tom Peters’

Re-imagine! The Leadership50

Belo Horizonte/27September2005

Slides at …

tompeters.com

“If you don’t like change, you’re going to like

irrelevance even less.” —General Eric Shinseki, Chief of Staff. U. S. Army

THREE BILLION NEW

CAPITALISTS —Clyde Prestowitz

26m

43h

The

Leadership50

I. The Basic Premise.

1. Leadership Is a …

Mutual Discovery Process.

“Ninety percent of what we call ‘management’ consists of making it difficult for people to

get things done.” – Peter Drucker

Quests!

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a

Great Group is to allow its members to discover their

greatness.”

Yes!!!!!!!!!!!!!!!!!

“free to do his or her absolute best” …

“allow its members to discover their

greatness.”

Go to the peopleLive with them

Learn from themLove them

Start with what they know Build with what they have But with the best leadersWhen the work is done The task accomplished

The people will say“We have done this ourselves.”

Lao Tsu (700 BC)

2. Leaders Decentralize.

2. Leaders DE-CENT-

RAL-IZE!

The SE22: Origins of

Sustainable Entrepreneurship

II. The Leadership

Types.

3. 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.

“Leaders ‘do’

people. Period.” —Anon.

Routinely Raided:

GEPepsiCo

4. 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

5. Find the “Businesspeople”!

(Type III Leadership)

I.P.M. (Inspired Profit

Mechanic)

6. All Organizations

Need the Golden Leadership

Triangle.

The Golden Leadership

Triangle: (1) Talent Fanatic … (2) Creator-

Visionary … (3) Inspired Profit

Mechanic.

7. Leadership Mantra

#1: IT ALL DEPENDS!

III. The Leadership

Dance.

8. Leaders …

SHOW UP!

MBWA

9. Leaders … LOVE the

MESS!

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

going fast enough.”

Mario Andretti

10. Leaders

DO!

“We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher

A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I

will gladly sell you for $25,000.”

“Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a

gentleman that I will pay you what you ask.”

The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back

to the gent.

And paid him the agreed-upon $25,000.

1. Every morning, write a list of the things that need to be done that day.

2. Do them. Source: Hugh MacLeod/tompeters.com/NPR

11. Leaders

Re-do.

“If it works, it’s

obsolete.”

—Marshall McLuhan

12. BUT … Leaders

Know When to Wait.

Tex Schramm: The

“too hard” box!

13. Leaders Are …

Optimists.

Hackneyed but nonetheless

true: LEADERS SEE CUPS AS “HALF

FULL.”

14. Leaders

FOCUS!

“To Don’t ” List

15. Leaders Follow the

Rule of Three.

“I used to have a rule for myself that at any point in time I wanted to have in mind — as

it so happens, also in writing, on a little card I carried around with me — the three big

things I was trying to get done.

Three. Not two.

Not four. Not five. Not ten. Three.”

— Richard Haass, The Power to Persuade

“Really Important

Stuff”: Roger’s Rule of Three!

IV. If It’s Not Broken …

Break It!

16. 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

17. Leaders Are Not

COPYCATS.

“While everything may be

better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“The ‘surplus society’ has a surplus of

similar companies, employing

similar people, with similar educational backgrounds, coming up

with similar ideas, producing

similar things, with similar prices

and similar quality.”

Kjell Nordström and Jonas Ridderstråle, Funky Business

“Companies have defined so much

‘best practice’ that they are now more or

less identical.”Jesper Kunde, Unique Now ... or Never

“To grow, companies need to break out of a

vicious cycle of competitive

benchmarking and imitation.” —W. Chan Kim & Renée

Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times/08.11.03

18. 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)

19. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES

ABOUT IT!

“Fail faster. Succeed sooner.”

David Kelley/IDEO

Fail. Forward. Fast. –High-tech Exec

20. Leaders Make …

BIG MISTAKES!

“Reward excellent

failures. Punish mediocre

successes.”Phil Daniels, Sydney exec (and, de facto, Jack)

V. Create.

21. Leaders Put INNOVATION

First!

“A focus on cost-cutting and efficiency has helped many organizations weather the

downturn, but this approach will ultimately

render them obsolete. Only the constant pursuit of

innovation can ensure long-term success.” —Daniel

Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

22. Leaders Love the

Top Line!

Top Line, Anyone?

Point (Advertising Age), to Phil Kotler: “Who should the CMO [Chief Marketing Officer]

report to?”

Kotler: “Maybe a Chief Revenue Officer—the cost side has been squeezed, now companies have to focus

on top-line growth—or maybe a Chief Customer Officer. (TP: Or maybe both!)

CRO*

*Chief Revenue Officer

23. 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

“Management has a lot to do with answers. Leadership is a function of

questions. And the first question

for a leader always is: ‘Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’”

—Max De Pree, Herman Miller

Ah, kids: “What is your vision for the future?” “What have you

accomplished since your first book?” “Close your eyes and

imagine me immediately doing something about what you’ve just said. What would it be?” “Do you

feel you have an obligation to ‘Make the world a better place’?”

24. Leaders Push Their

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

Intellectual Capital Chain

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of

choice.” (BW)

IBM Global Services: $55B

25. Leaders Turn Every “Department”

into a Value-adding “PSF”!*

*Professional Service Firm

Sarah: “ Mom, what do you do?”

Mom: “I’m ‘overhead.’ ”

Sarah: “ Mom, what do you do?”

Mom: “I manage a ‘cost center.’ ”

Answer: PSF![Professional Service Firm]

Department Head

to …

Managing Partner, HR [IS, R&D,etc.] Inc.

Point of

View!

26. Leaders Know that the Value-added Revolution”

rests upon: Putting the Intangibles FIRST!

Offer Scintillating …

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

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

One company’s answer:

CXO**Chief eXperience Officer

Understand that the BEDROCK is …

Gasp-worthy Design!

“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

“With its carefully conceived mix of colors and

textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass

Production—the touchstone success story, the exemplar of all that is good and bad about the

aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.”

—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

Marketing “Magic”*

The “Missing 95%”: The Unconscious!

*E.g. ZMET/Zaltman Metaphor Evaluation Technique

“If you can’t win on ‘cost,’

then you’re left with ‘cool.’ ” —

Anon.

27. Leaders Pursue the “Big Two” NEW

MARKET OPPORTUNITIES

Women!

“Kodak Sharpens Digital Focus On Its Best

Customers:

Women”* —Page 1 Headline/WSJ/0705

*TP: The … “Big Duh”!

?????????

Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%D.I.Y. (major “home projects”) … 80%

Consumer Electronics … 51% (66% home computers)

Cars … 68% (90%)All consumer purchases … 83%

Bank Account … 89%Household investment decisions … 67%Small business loans/biz starts … 70%

Health Care … 80%

Thanks, Marti

Barletta!

The Perfect Answer

Jill and Jack buy slacks in black…

1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

Boomers-Geezers

2000-2010 Stats

18-44: -1%

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

“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

28. Leaders Pursue DRAMATIC

DIFFERENCE!

Brand = You Must Care!

“Success means never letting the competition define you. Instead you have to define yourself

based on a point of view you care deeply about.” —Tom Chappell,

Tom’s of Maine

GH (+TP):

“Get better” vs

“Get different”

29. Leaders

LOVE the New Technology!

We all live in Dell-Wal*Mart-

eBay-Google World!

Power Tools for Power Solutions/

Strategies! —TP

30. Needed? Type IV Leadership: Technology

Dreamer-True Believer.

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

(3) Inspired Profit Mechanic …

(4) Technology Dreamer-True Believer

VI. Talent.

31. When It Comes to

TALENT … Leaders Always Go

Berserk!

Brand = Talent.

32. Leaders Hire WEIRD

Employees: “Are there enough weird

people in the lab these days?”

V. Chmn., pharmaceutical house, to a lab director

Why Do I love Freaks?

(1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most of us—and our organizations—are in ruts. Make that chasms.)

33. 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

“AS LEADERS, WOMEN RULE: New Studies find

that female managers outshine their male

counterparts in almost every measure”

Title, Special Report, Business Week

34. Leaders Demand That All Employees Follow the “BRAND YOU” ADVENTURE

“We live in a ‘Brand You’ world.” —Tom Peters

“If there is nothing very special about

your work, no matter how hard you apply yourself you won’t get noticed, and that

increasingly means you won’t get paid much either.”

Michael Goldhaber, Wired

34A (Bonus). Leaders Are Angry that the School

System Is their Enemy, Not Their Ally!*

*From Stem to Stern!

“My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor

grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a

state requirement for demonstrating ‘grade-level motor

skills.’ ” —Jordan Ayan, AHA!

15 “Leading” Biz Schools

Design/Core: 0Design/Elective: 1

Creativity/Core: 0Creativity/Elective: 4

Innovation/Core: 0Innovation/Elective: 6

Source: DMI/Summer 2002Research by Thomas Lockwood

VII. Passion.

35. Leaders …

“Sell”

PASSION!

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

”

36. Leaders Know: ENTHUSIASM

BEGETS ENTHUSIASM!

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

“Most important, he upped the energy level at Motorola.”

—Fortune on Ed Zander/08.05

“Before you can inspire with emotion, you must be

swamped with it yourself. Before you can move their tears, your own must flow.

To convince them, you must yourself believe.” —Winston Churchill

“A man without a smiling face

must not open a shop.” —Chinese Proverb*

*Courtesy Tom Morris, The Art of Achievement

37. Leaders Focus on the

SOFT STUFF!

“Soft” Is “Hard”

- ISOE

VIII. The “Job” of Leading.

38. 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.)

39. Leaders

LOVE “POLITICS.”

TP: If you don’t LOVE POLITICS … find

another life. (Don’t pretend

you’re a “leader.”)

40. 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

41. Leaders Say

“Thank You.”

“The deepest human

need is the need to be appreciated.”

William James

42. Leadership Is a …

Performance.

“It is necessary for the President to be the

nation’s No. 1 actor.”

FDR

43. 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

Leader Job 1

Paint Portraits of

Excellence!

44. Leaders …

Are The Brand

“You must be the change you wish to see in the world.”

Gandhi

IX. Introspection.

45. Leaders …

ENJOY LEADING.

46. Leaders

LAUGH!

47. Leaders …

KNOW THEMSELVES.

Step #1: Buy a Mirror!

“The First step in a ‘dramatic’ ‘organizational

change program’ is obvious—dramatic personal

change!” —LH/RG/??

X. The End Game.

48. Great Leaders

Play Offense!

Nelson’s secret: “[Other] admirals more frightened of losing than

anxious to win”

49. Great Leaders

Live on the Edge!

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!

50. Great Leaders

Free the

Lunatic Within!

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

“You can’t behave in a calm, rational

manner. You’ve got to be out there on

the lunatic fringe.” —

Jack Welch

51. Leaders (and Management Gurus)

Know WHEN TO LEAVE!

“In classical times when Cicero had finished

speaking, the people said, ‘How well he spoke,’ but when Demosthenes had

finished speaking, they said,

‘Let us march.’” —

Adlai Stevenson

Let us

march!