Exhibits Exhibit 1: Satires on Maurice Saatchi’s departure

Exhibit 3: Peak Performance

Their ideas, presented in the book Peak Performance (2001), are based on the idea that peak performance in sport can teach us a great deal about peak performance in business, which is defined as ‘continuously exceeding organizational best in the pursuit of the organization’s purpose’²². The sporting parallel is contrasted with the ‘military’ metaphors of traditional management-speak, and the sporting world is put forward as an ideal place in which to learn at first hand what enables people to achieve excellence. The authors explain that they ‘believe there are general organizational ideas that enable people to work together enjoyably and effectively toward the organization’s greatest imaginable challenge. Where better to search for these ideas than in the teams and organizations of elite sports, the icons of the late twentieth century?’ The book goes on to present accounts and analyses of the successes of twelve high-achieving sports teams and organisations around the world (mainly in the US, Australia and New Zealand).

The closing chapter of the book presents Peak Performing Organisation (PPO) Theory:

There are four key principles: purpose, practice, potency and performance. Purpose provides intent, meaning and direction for people within organizations [and includes the ‘inspirational dream’ and the ‘greatest imaginable challenge’]. Practice puts in place the organizational content, environment and practices that provide the foundations for sustained success. Potency relates to the processes that occur in consciousness – thoughts, emotions, intuition, desire, will and memory – that provide the energy for sustained peak performance. Performance explains the actions necessary for sustained success.

Beginning with inspirational players (such as Michael Jordan, who ‘personifies basketball’), these ideas come together as follows:

Inspirational players provide a meaningful challenge for an organization and its players that is both important and stretching and that becomes the focus of the organization’s actions that are undertaken to live the dream, and in doing so a purpose to the organization is established that must be nurtured for the future through the careful recruitment and development of the individuals that make up the organization, together with a long-term commitment to an effective infrastructure that allows the dream to be shared, which builds an aura of association and sense of belonging and a feeling of family based on trusting relationships, leading the participants to a sense of harmony with self and others, and allowing a passionate commitment to the purpose of the organization that establishes an environment with the potency for peak flow or optimal organizational experiences, leading to catching the last detail and imagining game-breaking ideas that enable the continuous exceeding of organizational best in the endless pursuit of the organization’s shared purpose and ultimately to sustaining peak performance.

Linking Peak Performance ideas to his work at Saatchi & Saatchi, Kevin Roberts comments as follows. ‘Saatchi & Saatchi was a famous brand, with some great people, but it was in dire straits. Its founders had left the company in disgrace, frankly, and people were embarrassed to pick up a newspaper and see what was happening next. Clients were leaving us, and we were close to insolvency. Our margins were 6%, in an industry where the average is 13% and the gold standard 15%. Our biggest client, P&G, was taking brands away from us, and competitors were circling like sharks. As a new CEO I had the task of coming into the company and inspiring people to lift their game and be the best they could be. I couldn’t find anything in the theory of management and leadership that was of any use whatsoever. We didn’t need a book of lists or another management consultancy. Instead, I worked with Mike [Pratt] and Clive [Gilson] on studying peak performers, and we discovered some important things. Inspiration is at the core of what great organisations achieve, and having a shared dream is integral to sustained success. We had to redefine the spirit of the company and what made us special. And we did something new by taking actions in harmony with academic research – I’d have an idea, Mike and Clive would go off and research it and report back on what worked and what didn’t, and we’d continuously improve.’

He goes on to point out the successes achieved with the approach. ‘When we demerged with a share price of 110p, we set a target to double the share price in three years. Well, we did better than that, selling the company for 500p. Our margins are now close to 15%, we’ve improved revenue and market share every year and we’ve gone from being P&G’s smallest agency to being their biggest agency. We’re probably one of the top three creative performers in the world, year in, year out. We’ve done it all through constant adherence to our purpose, our inspirational dream and our values. Now we’re focused on perpetuating Lovemarks (see Exhibit 4), and we continue to practice and teach peak performance ideas.’²³