Tom Peters’ Excellence. NOW. Innovate . Or Die . Tecnológico de Monterrey El Paso/18 May 2012 (Slides at tompeters.com/

1. Paul Omerod: “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 …

2. Tom Peters’ Excellence. NOW. Innovate. OrDie. Tecnológico de Monterrey El Paso/18 May 2012 (Slides at tompeters.com/Also see excellencenow.com)

3. “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

4. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies.They found that noneof the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

5. “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

6. The Innovate or Die 20

7. #1

8. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it.Screw it up. Try it. Try it. Try it. 1/46

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

10. “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells.You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.”—John Masters, Canadian O & G wildcatter

11. “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version#5.By the time our rivals are ready with wires and screws, we are on version #10.It gets back to planning versus acting: We act from day one; others plan how toplan—for months.”—Bloomberg by Bloomberg

12. Culture of Prototyping“Effective prototyping may be themost valuablecore competence an innovative organization can hope to have.”—Michael Schrage

13. Think about It!?Innovation = Reaction to the PrototypeSource: Michael Schrage

14. READY.FIRE!AIM.Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

15. #1A

16. “Fail . Forward. Fast.”High Tech CEO, Pennsylvania

17. “In business, you reward people for taking risks. When it doesn’tworkout you promote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to trya different mountain.”—Michael Bloomberg (BW/0625.07)

18. “The secret of fast progress is inefficiency, fast and furious and numerous failures.”—Kevin Kelly

19. Success 101:“Whoever tries the most stuff and screws the most stuff up and most rapidly launches the next try wins. Failures are not to be ‘tolerated,’ they are to be celebrated.”

20. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin

21. #1B

22. 1/4,096

23. “You miss 100% of the shots you never take.”—WayneGretzky

24. #2

25. The “Parallel Universe” Axiom

26. “the 1% solution”Source: Scott Bedbury/Starbucks (Others: 3M, Google)

27. SkunkWorks/ “Skunks” (!!!)

28. “Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.”—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

29. Demos! Heroes! Stories!

30. #3

31. “Strategic Thrust Overlay”

32. GEInflationR&D/Business DevelopmentRisk managementWorkoutVA/ServiceSix Sigma

33. G[B]TD: TacticsSmall [but powerful] Central “Staff”* [*Line-like]Senior “Homegrown” Boss [& Staff]Enormous Incentives [$/Eval]Line Accountability [Not “Matrix” ]Demo-led [Emergent Methodology]“Tour of [External] Excellence”“Blitz” TrainingCentral Unit/Finite LifeSpeed!Goal: “Culture Change”!

34. #4

35. Little =BIG**Thank you, Mr. Prime Minister

36. Big carts = 1.5X Source: Wal*Mart

37. Bag sizes = New markets: $B Source: PepsiCo

38. Socks = 10,000

39. see green= recover 20% faster

40. #5

41. XFX = #1

42. Never waste a lunch!

43. ???? % XF lunches* *Measure! Monthly! Part of evaluation! [The PA’s Club.]

44. “XFX Social Accelerators.” 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.) 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.

45. THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINALY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFXPER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE FOR NO LESS THAN … VISIBLE. CONSTANT. OBSESSION.

46. #6

47. “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.”—Brian Joffe/BIDvest

48. The True Logic* of Decentralization:6 divisions = 6 “tries”6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win”6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win”*“Driver”: Law of Large #s

49. Enemy #1I.C.D.Note 1:Inherent/Inevitable/Immutable Centralist DriftNote 2: Jim Burke’s 1-word vocabulary: “No.”

50. #7