Excellence Always: Up the Value-added Ladder

1. NOTE:To appreciate this presentation [and insure that it is not a mess], you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller”and“Verdana”

2. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”Master/Excellence. Always./part THREE (of 7)up, up, up,up …the value added ladder(solutions-experiences-dreams-lovemarks)18 June 2007

3. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”MasterExcellence. Always.part one (of 7)“all you need to know”(dwelling on the obvious)not your father’s worldintroduction to excellence.18 june 2007

4. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”Master*Excellencepart two (of 7)innovate.Or.Die.18 june 2007

5. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”Master/Excellence. Always./part FOUR (of 7)“new” Markets(Stupendous Opportunity)18 June 2007

6. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”MasterExcellence. Always.part FIVE (of 7)people!(Brand you. Talent. Health. Education. Leadership.)18 june 2007

7. NOTE: To appreciate this presentation, you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller” and “Verdana”Master*Excellencepart SIX (of 7)excellence.summaries.Lists.18 june 2007

8. Part sevenExtended Talent & Leadership0618.07

9. Tom Peters’ X25*EXCELLENCE. ALWAYS.MASTER/0618.2007/Part THREE*In Search of Excellence 1982-2007

10. part three

11. Slides at …tompeters.com

12. Up,Up,Up, Upthe Value-added Ladder.

13. As China and India, among others, surge, “the rest of us” [incl. the likes of Romania] must scramble to “Add Value”[mostly, “back to the future”]

14. LEAVE IT TO BEAVER.

15. Trapper: <$20 per beaver pelt.Source: WSJ

16. wdcp/“Wildlife Damage-control Professional”:$150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ

17. Trapper = RedneckWDCP = PSF/ Professional Services Provider

18. 7Xto40Xfor “Solution”[rather than “service transaction”]

19. EXCELLENCE. VALUE ADDED.UP THE LADDER.

20. EXCELLENCE.VALUE-ADDED LADDER I. SOLVE IT.

21. $55B

22. And the “M” Stands for … ?Gerstner’s IBM:“Systems Integrator of choice.”/BW(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )IBM Global Services*(*Integrated Systems Services Corp.):$55B

23. Planetary Rainmaker-in-Chief!“Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models.The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year—that technology companies have never been able to touch.”—Fortune

24. “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever.Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.”—Narayana Murthy, chairman’s letter, Infosys Annual Report

25. “Big Brown’s New Bag: UPSAims to Be theTraffic Manager for Corporate America”—Headline/BW/2004

26. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”Source: ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

27. MasterCard Advisors

28. “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.”SMPS Exec

29. E.g. …UTC/Otis + Carrier: boxes to “integrated building systems”

30. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

31. California Closets:“a whole-life upgrade, not just a tidy bedroom.”—WSJ/0329.07, “Why the Container-Store Guy Wants to Be Your Therapist”

32. Huge:Customer Satisfactionversus Customer Success

33. “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

34. Gamechanging “Solutions”: Bet-the-CompanyIBMUPSXeroxMasterCardGEBestBuy

35. I. LAN Installation Co. (3%)II. Geek Squad. (30%.)III. Acquired by BestBuy.IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.

36. Up,Up,Up, Upthe Value-added Ladder.

37. The Value-added Ladder/ STUFF ‘N’ THINGSGoods Raw Materials

38. The Value-added Ladder/Stuff & TRANSACTIONSServicesGoods Raw Materials

39. The Value-added Ladder/ OPPORTUNITY-SEEKINGCustomer Success/ Gamechanging SolutionsServicesGoods Raw Materials

40. “ ‘Results’ are measured by the success of all those who have purchased your product or service”—Jan Gunnarsson & Olle Blohm, The Welcoming Leader

41. “He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life.Because his sole concern had been my welfare and the success of my business.”—Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)

42. Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”)Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture-Strategic change”)Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

43. “The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%)—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

44. The Value-added Ladder/ OPPORTUNITY-SEEKINGImplemented Gamechanging SolutionsServicesGoods Raw Materials

45. EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF++)

46. “Don’t own nothin’ if you can help it. If you can, rent your shoes.”—Forrest Gump

47. “Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!”— Charles Handy

48. “ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that …you’ve become irrelevant to your customers.”—John Battelle/Point/AdvertisingAge/07.05

49. “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327(500 of 900 Research)

50. “[Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as 40 million Americanjobs at risk of being shipped out of the country in the next decade or two.”*—Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg.”