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I Disagree!

From Taipei (the Vice President of the country) to Memphis (senior national church official), I've been pushed hard/hounded lately to turn my attention to the non-profit and public sectors. (Part of it may be Drucker's passing; he spent a lot of energy on non-profits.) I surely agree with the abiding importance of the non-commercial spheres. And in fact, as a government veteran (6 years in the Navy and White House), I've probably addressed over 100 gov't groups in the last 20 years.

But while trying not to sound defensive, I want to offer a defense. I have carefully re-examined my work over the last quarter century, starting with In Search of Excellence, and I can find almost nothing that does not apply ... one-for-one .... to the non-profit and public spheres.

Consider the "guiding premise" and the "eight basics" that were the heart of In Search of Excellence (chapters 4 through 12): "Managing Ambiguity and Paradox"; "A Bias for Action"; "Close to the Customer"; "Autonomy and Entrepreneurship"; "Productivity Through People"; "Hands On, Value-Driven"; "Stick to the Knitting"; "Simple Form, Lean Staff"; "Simultaneous Loose-Tight Properties" (tight adherence to a couple of key/visionary values, otherwise enormous latitude for down-the-line initiative).

While about 20 percent of the companies Bob Waterman and I chose in 1982 have faltered (investing in 1982 in our "portfolio," according to Forbes, would have made you a rich man/woman by 2002, the book's 20th anniversary), the "basics" have held up surprisingly well—perhaps because they are "simply" universals. ("Universals" that Bob and I felt had fallen into disuse in the "Quantitative Age" that dominated in the 50s through 70s.) Today, the closer I bring my magnifying glass, the more I think all eight/nine of these Guiding Notions are absolutely & unequivocally applicable to non-profit and public enterprise; and that their abiding absence is as deleterious to non-profit and public enterprise effectiveness as to private-sector effectiveness. (In recent times, think FEMA vs the U.S. Coast Guard in the wake of Katrina. Think, in NGO world, about micro-finance aimed directly at an impoverished populace vs giant World Bank projects that seem mostly to have lined the pockets of corrupt politicians in recipient countries.)

Going farther (if less systematically), on a recent trip from DC to Boston, thinking about "all this," I simply jotted down a few words that have been central to my thought and also my "point of difference" with most other theorists, including, frequently, Drucker: Technicolor, Enthusiasm. Energy. Respect. Listening. Grace. Cause (worth getting up for). Caring. "Thank you" (recognition). Action, action, action. Experimentation, experimentation, experimentation. Quick prototypes. Excellent failures. Fast failures (he who has the most tries usually wins). MBWA (managing by wandering around). Empowerment. Customer intimacy. Decentralization. Accountability. Integrity. Truth-telling. Truth or consequences. Relatively small is relatively beautiful. Widespread entrepreneurial behavior. WOW! Weird! Gasp-worthy! Insanely great! Love! Design (great). Women (as leaders). No barriers (to communication or action). Staggering "value-added." "Beautiful" systems. (See the pdf version, available at this site, of Tom's 60 TIBs—my bedrock beliefs, for once in brief.)

Or consider this single slide, on love, from my recent, updated "Leadership50" Special Presentation:

"Message: Leadership is all about love: Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change."

I could go on ... and am sorely tempted to. But I'll stop. I've either made my point. Or not. I believe (fervently) in the profit principle, am a fanatic capitalist. But I also fervently believe that the capitalist dream comes true and profit is maximized when ... turned-on people are empowered to dream big and produce awesome products and service experiences for their customers and communities. And that "meta"-idea, profit excepted, applies as well to the non-profit and public sectors as to the private sector.

Comments?

(I could well/may well spend more time in the future on the public and non-profit sectors, but I'd be surprised, even stunned, if my basic ideas and approaches changed much or at all.)

Tom Peters posted this on 11/30/05.

Comments

"I can find almost nothing that does not apply ... one-for-one .... to the non-profit and public spheres."

Totally agree. I'm involved in a process in our church to "Re-Imagine" our church marketing and community outreach programs. Many of the concepts in Re-Imagine are definitely applicable.

Posted by Carlos N Velez at November 30, 2005 12:43 PM


Carlos, a highlight for me, years ago, was when a priest of my aquaintance did his PhD dissertation at Notre Dame on applying In Search of Excellence to the Catholic church. (Not bad for an old Presbyterian.)

Posted by tom peters at November 30, 2005 12:57 PM


I couldn't agree more. People passionately in pursuit of a dream that they are fully engaged in delivers results.

Posted by Dan at November 30, 2005 1:04 PM


Tom - I work with a few non-profits and there is one thing I have come to realize is that non-profits are run by people that are scared to death of change and they do not understand that they must run their organization like a business if they want to survive. Change=FEAR.

Posted by Robert Floyd at November 30, 2005 1:05 PM


And all this time I thought you WERE talking about non-profits (just kidding), but it would have been a great answer! I work in the non-profit world, and if ever there was a group that SHOULD be these applying these principles, this is it.

Posted by A Smith at November 30, 2005 2:01 PM


tom, i don't think the vice president of Taipei or the senior church official are asking you to change any of your ideas. i think they're merely asking you to pay attention. and to bring some light to bear. what they're responding to is that your business examples are mostly about for-profit businesses. of course these ideas apply to non-profits because these ideas apply to people. it's just that the non-profit folks don't feel included in what you talk about. you do talk about profit a fair amount, right?

Posted by erik at November 30, 2005 2:09 PM


Yes Tom , how come you dont do a seminar for some non profit oganzation ?? I bettca if you hook up with CPI/James or some org like that, you would be able to actually create a wonderful experience for this sector of business .. and yes it is a business and their business is to better the world !! :)-

..and no, you really dont need the money so do it for free !!

Remember, once you blogged about having XX about of dollars for a yacht and my question to you was, would you spend xx$ on a yacht or would you spend it to better the world ? (yeah, you already have a yacht !!)

Posted by /pd at November 30, 2005 2:31 PM


pd ... not me, pal. No yacht. Not now. Not ever. But I do admit, in the boat category, that I have two boats, not one--both are 12-foot Steve Caulback Adirondak Guide Boats. They are both (one at a time) propelled by me and me alone. Gorgeous oars, I'll also admit.)

Posted by tom peters at November 30, 2005 2:39 PM


Wow! Each boat weighs less than 40 pounds! In an ad, Steve is shown holding one in the palm of his hand. P.S. the home of his mega-corporation is Charlotte (pronounced shar-lot) Vermont.

Posted by tom peters at November 30, 2005 2:42 PM


Tom, I read In Search of Excellence as a seminary student in 1989. I don't remember now what made me pick it up. But I saw so much that was directly applicable to what I was doing that it launched me into a 16 year long pursuit of best practices, strategies, principles, and ideas. What I saw 16 years ago introduced me to a language that is a constant help in my daily effort! Thank you for your enthusiastic leadership and vision for excellence!

mark

Posted by Mark Howell at November 30, 2005 5:07 PM


Tom, from my lense, you have always been about passion and positive impact! These should be key reasons for any organization, whether they be not-for-profit or uber-profit, to exist.

The only danger I see here is in reification. In this case reification of the word/concept 'non-profit'. Sure, there are specific requirements for an organization to become and maintain non-profit status...the work-scope of organizations and communities with 'non-profit' staus is a wonderfully diverse eco-system, not an abstract monolith.

Oh, speaking of impact, it would appear that the word 'Re-Imagine' is quickly establishing a place in our common lexicon. I was watching a Honda ad last night and noted that the 2006 Honda Civic has been "re-imagined". Imagine that!

/rick

Posted by Rick Kennedy at November 30, 2005 6:04 PM


Tom, yes, I believe you could well fill the shoes of Drucker. I'm a long time follower of your stuff, read your site EVERY day. Here's an idea to ponder: That there's something spiritual about all of this - that something beyond you has chosen to use you to speak into the heartbeat of the non-profit sector (that's where I live) and bring excellence up a few notches in that important area of life. God knows that there is a huge lack of excellence in virtually all non-profit organizations right across the spectrum.

Posted by Steve Sjogren at November 30, 2005 7:16 PM


Hi Tom, I think your work fits very well into non-profit organizations. Actually, it may fit in a whole lot better there. The kind of passion the non-profit associates bring to what they do is awesome. Here in India, many of them work at salaries that would cause a revolt in the corporate world - and yet work with a single-minded focus and deliver on a truly astounding scale. I think the one key thing that differentiates the non-profit worker from the corporate executive is that for the non-profit, Status quo is THE ENEMY. Because it's status quo, the present, that keeps people poor or diseased or the environment degraded. Status Quo is CONSTANTLY battled. In the corporate world, status quo is good enough, even sought after. the focus is often on Maintenance - maintain last year's results, maintain the market...don't rock the boat.

Posted by Porus Munshi at November 30, 2005 11:07 PM


Robert Floyd wrote: "...they [non-profits] do not understand that they must run their organization like a business if they want to survive."

I started my own non-profit a few years ago, and I've worked as an accountant for another (very large) one. The thing is, non-profits are businesses, the only difference being, they're trying to minimize their profits. Otherwise, the principles of business (whether it's accounting, management, finance, marketing, etc.) all apply. Non-profits must be run as a business, period.

Posted by JD at December 1, 2005 2:37 AM


JD, I remember addressing Boy Scout leaders years ago. Couldn't figure out what to say. Then I talked to one of their top people. He said, "Say what you always say." He went on to add that the Boy Scouts were in a life and death competitive struggle like any other business. "We compete for boys' attention," he said. "That attention increasingly goes to TV, computer games, etc. We need more 'mind share.'" I was amused-amazed that he was out me-ing me.

Posted by tom peters at December 1, 2005 7:24 AM


The non-profits... the smart ones... are already watching folks like Tom.. They are looking to engage their audience in the same ways the folks here in TP-Town are.

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I see no difference.

Any non-profit that cannot see the relevance of Peters' approach is simply foolish... this stuff is universal.... for-profit, non-profit, personal.

Posted by james hathaway at December 1, 2005 9:17 AM


I ABSOLUTELY DISAGREE! (Which, I think, means I AGREE with your “DISAGREE”.)

As the “Tom Peters of the Not-for-Profit World” (as I’ve been both affectionately and not so affectionately called), I just wanted to reinforce your own instincts that you have already had a HUGE IMPACT on this “Nonprofit and Public” Sector.

My favorite Peter Drucker quote is: “EVERY ORGANIZATION needs to ABANDON almost EVERYTHING they do.”

Mr. Drucker (R.I.P.) always used ‘ORGANIZATION’ to mean PRIVATE, NOT-FOR-PROFIT and PUBLIC.

You have written more “STUFF” that applies to this Third Sector/Nonprofit world, as well as the Private and Public Sector, than anyone out there.

If anyone doubts that, send them to Project 05 where you “go off” in typical, powerful fashion on DESIGN, BRAND EXCELLENCE, EXPERIENCES (Cirque du Soleil), DREAMS, MESSAGES, METAPHORS, TALENT, GAME CHANGERS, CHANGE THE WORLD!, INNOVATION, RADICALLY DIFFERENT BUSINESS MODELS, DISRUPTION, SCINTILATING EXPERIENCES, etc., etc., etc.

Have them look at Project 04 for CHANGE or BRAND or TOTAL TRANSFORMATION or BOOMERS & GEEZERS or WOMEN or DREAMS or PASSION or TALENT DEVELOPMENT. Everyone of your TIB’s is applicable (especially #49 LIFE IS SALES! THE REST IS DETAILS.)

Or, have anyone from the “Not-for-Profit” or Public Sector open up ANY of the 350 pages of Re-Imagine. They can “March on Monday” with every nugget.

As you have said so often, “WORDS ARE IMPORTANT.”

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I have spent the last three years of my life trying to help CHANGE THE VOCABULARY of this entire sector, especially the WORDS “NOT-FOR-PROFIT”!

These are FOR IMPACT organizations. They shouldn’t be defined in the NEGATIVE. No one wakes up in the morning and shouts, “YEEHAH!!! We don’t get to make any money today!!!” It’s not why volunteers and board members and investors work with these organizations.

Sorry. I have my own “rants” and “vision”. I will send that to you under separate cover.

P.S. My favorite Tom Peters’ quote is simply: “RE-IMAGINE!” (EVERYTHING!)

Posted by Tom Suddes at December 1, 2005 9:32 AM


As a 35 year veteran of 'non-profit public world' of helathcare until last year I have to say there are crap proceses in both sectors and there are wonderful processes in both - the one common feature in either is people who believe in what they do.

Even though I am now in the profit sector I cannot stand by and see the public sector simply pulled to pieces by people who are 'outside' it. My dear late dad always said 'the easiest job to do is someone else's'

Toms messages have always applied equally to both sectors because they are based around people!! - It really is that simple - but you would expect me to say that I guess :-)

Posted by Trevor Gay at December 1, 2005 12:05 PM


I don't think that leadership has much to do with passion or love for life. Leadership is really a lot more about charisma, confidence, respect, intelligence, insight and courage. It's also about being decisive.

I've served under officers who were devoid of all of the 'enlightened' atributes you spoke of, but were extraordinary leaders.

That said, business is about a lot more than just leadership, and those attributes you listed are essential qualities to find at every level of an organization.

That thing about empowering people to dream big and produce awesome products couldn't be more on-target.

I love your blog, o I love it so.

Posted by Olivier Blanchard at December 1, 2005 8:29 PM


I think leadership is first and foremost about credibility with followers through hard work; simplicity; knowledge; competence; doing your homework. These qualities are far more important more than charisma.

In my expereince followers smell bullshit in days; sorry make that hours; sorry make that minutes; sorry I meant seconds.

Posted by Trevor Gay at December 2, 2005 5:33 AM


Tom,

We who have dedicated ourselves to the Third Sector and have worked to achieve excellence in public benefit corporations have followed and learned from your thinking for years.

However, one thing Drucker provided to all of us that will be missing in his absence is that constant reminder to all three sectors of the interconnectedness of our world. We benefited not only from his seminars and books, but also from his vision and example.

All best,

Scott

The Green Skeptic
greenskeptic.blogspot.com
nature.org

P.S. I much prefer the term "public benefit corporation," coined by my friend and mentor Kay Sprinkel Grace, to "non-profit." Why identify yourself by what you ain't?

Posted by Scott Edward Anderson at December 2, 2005 10:37 AM


Trevor,

Good points, Trev. But let's not confuse charisma with "shmooze".

Charisma has nothing to do with bullshit. It's simply a sometimes intagible quality that makes people drawn to you in some way.

Without some measure of charisma, I'm sorry but all of the competence, credibility and knowledge in the world won't make you a leader.

Posted by Olivier Blanchard at December 2, 2005 11:29 AM


Thanks Olivier - I hear what you say - thanks for feedback. I did some research among doctors 8 years ago about what they look for in leaders. Not one of the 30 or so doctors I interviewed mentioned charisma as something that was the best attribute. They mostly mentioned all the 'hard' stuff like competence and knowledge and experience. A charismatic but incompetent leader who does not work hard will never be a real leader. That is not to say charisma is not important but it is only one of the qualities and I am not entirely convinced it is 'compulsory' to have charisma to be a leader providing of course you have everything else.
Charisma of course is a subjective thing with charisma in one person's eyes being arrogance in another's. I know what you mean by that impossible to describe quality and some people clearly do have that. Great topic and one that could run and run.

Posted by Trevor Gay at December 2, 2005 11:58 AM


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Posted by relagen at December 25, 2005 10:07 AM



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