Excellence.Excellence.Always.Always.

““Hard” is Soft.Hard” is Soft.““Soft” is Hard.Soft” is Hard.

The “small” courtesies.The “small” courtesies.Competitive Advantage #1Competitive Advantage #1..

Tom PetersTom Peters25 November 200925 November 2009

(Annotated)(Annotated)

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

New book due in February. New book due in February. The Little BIG ThingsThe Little BIG Things.. Toughest part of “writing” is choosing the epigraph. This is it. Toughest part of “writing” is choosing the epigraph. This is it. Perfect by my lights. What follows is a straightforward explication Perfect by my lights. What follows is a straightforward explication of Mr. Clay’s words.of Mr. Clay’s words.

#1#1

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

Keep this in mind. Keep this in mind.

#2#2

MBWMBWAA

““Discovered” this at HP in 1978 Discovered” this at HP in 1978 Managing By Managing By Wandering AroundWandering Around. A good idea. But more . A good idea. But more

than that, a metaphor for “staying in touch”—tough for a boss, than that, a metaphor for “staying in touch”—tough for a boss, particularly as she goes up the hierarchy. particularly as she goes up the hierarchy.

Sunday “Drive By”:Sunday “Drive By”: The CEO of a very successful mid-sized The CEO of a very successful mid-sized bank, in the Mid-west, attended a seminar of mine in bank, in the Mid-west, attended a seminar of mine in Northern California in the mid-80s—but I remember the Northern California in the mid-80s—but I remember the following as if it were yesterday. I’ve forgotten the following as if it were yesterday. I’ve forgotten the specific context, but I recall him saying to me, pretty specific context, but I recall him saying to me, pretty

much word for word,much word for word, “Tom let me tell you “Tom let me tell you the definition of a good lending the definition of a good lending officer. After church on Sunday, on officer. After church on Sunday, on the way home with his family, he the way home with his family, he takes a little detour to drive by the takes a little detour to drive by the factory he just lent money to. factory he just lent money to. Doesn’t go in or any such thing, Doesn’t go in or any such thing, just drives by and takes a look.”just drives by and takes a look.”

Explains a lot of the sub-prime crisis. No “MBWA.” Explains a lot of the sub-prime crisis. No “MBWA.”

#3#3

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

The signature of … The signature of … In Search of ExcellenceIn Search of Excellence. .

See the next slide for a shorthand explanation. See the next slide for a shorthand explanation.

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships)relationships)

!!! !!!

#4#4

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

The patient is the best source of information. Sooo … The patient is the best source of information. Sooo …

1818 secondsseconds

Shame on docs. True enough. But most managers are equally Shame on docs. True enough. But most managers are equally

indictable on this charge!!! indictable on this charge!!! Are you an “18-Are you an “18-second manager”?second manager”? I’d put money on it in 5 cases out I’d put money on it in 5 cases out

of 7. of 7.

[An obsession with] Listening is ... the ultimate mark of [An obsession with] Listening is ... the ultimate mark of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* (*Though women are .* (*Though women are farfar better at it than men.) better at it than men.)Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional Communication*effective Cross-functional Communication* (*Which is in turn Attribute #1 of organizational effectiveness.)(*Which is in turn Attribute #1 of organizational effectiveness.)Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Listening is ... Learning.Learning.Listening is ...the Listening is ...the sine qua non of Renewalsine qua non of Renewal..Listening is ...the Listening is ...the sine qua non of Creativitysine qua non of Creativity..Listening is ...the Listening is ...the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than from any other single activity.)(*The “R.O.I.” from listening is higher than from any other single activity.)Listening underpins ... Listening underpins ... Commitment to EXCELLENCECommitment to EXCELLENCE

The power of listening is … The power of listening is … limitlesslimitless. .

Read—and ponder—this list very carefully. Read—and ponder—this list very carefully.

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

This is not just an exhortation, “Hey, listen.” I’m suggesting that This is not just an exhortation, “Hey, listen.” I’m suggesting that listening become a pre-occupation. That it be no less than the listening become a pre-occupation. That it be no less than the whole-damn-organization’s trademark. whole-damn-organization’s trademark.

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

Listen!Listen!• • Listening Leaders: The Ten Golden Rules ToListening Leaders: The Ten Golden Rules To Listen, Lead & Succeed—Listen, Lead & Succeed—Lyman Steil andLyman Steil and Richard BommeljeRichard Bommelje• • The Zen of Listening—The Zen of Listening—Rebecca ShafirRebecca Shafir• • Effective Listening Skills—Effective Listening Skills—Dennis Kratz andDennis Kratz and Abby Robinson KratzAbby Robinson Kratz• • Are You Really Listening?—Are You Really Listening?—Paul Donoghue andPaul Donoghue and Mary SiegelMary Siegel• • Active Listening: Improve Your Ability to ListenActive Listening: Improve Your Ability to Listen and Lead—and Lead—Michael HoppeMichael Hoppe• • Listening: The Forgotten SkillListening: The Forgotten Skill — —Madelyn Burley-AllenMadelyn Burley-Allen

Yes you can! That is, you can study “this stuff.”Yes you can! That is, you can study “this stuff.”

#4A#4A

Message:Message: Listening is a Listening is a … …

professionprofession!!

Just like becoming a professional musician. Or a neurosurgeon. Just like becoming a professional musician. Or a neurosurgeon.

#4B#4B

ListenListen = Profession = Study = practice = evaluation = = Profession = Study = practice = evaluation = Enterprise value:

"We listen intently "We listen intently to and fully to and fully

engageengage all with whom all with whom

we work."we work."

Core value #1.Core value #1. No kidding. No kidding.

#4C#4C

““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in

other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to

get other people get other people interested in you.”interested in you.” —Dale

Carnegie

Another [key] byproduct of listening-engaging. Another [key] byproduct of listening-engaging.

#4D#4D

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

Listening. The key to/cornerstone of every relationship. Superior Listening. The key to/cornerstone of every relationship. Superior relationships … the key to, literally, everything! relationships … the key to, literally, everything!

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied of fellow cadets who came from widely varied backgrounds; it was a quality that would pay greatbackgrounds; it was a quality that would pay great

dividends during his future coalition commanddividends during his future coalition command

Listening In effect, Eisenhower’s principal “weapon” as coalition Listening In effect, Eisenhower’s principal “weapon” as coalition leader. leader.

R.O.I.RR.O.I.R..

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

The idea here is to think directly about your “investment” in The idea here is to think directly about your “investment” in relationship building and maintenance. relationship building and maintenance.

#4E#4E

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Edward VII/dance-flatter-mingle-learn the languageEdward VII/dance-flatter-mingle-learn the languageVladimir Putin/birthday party of outgroup guy’s wifeVladimir Putin/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

No detailed explanation forthcoming. Sorry. It is, in full, a series of No detailed explanation forthcoming. Sorry. It is, in full, a series of stories of “little” “relationship” things—that literally changed the stories of “little” “relationship” things—that literally changed the world. E.g., a whirlwind 96-hour “social” visit to Paris by King world. E.g., a whirlwind 96-hour “social” visit to Paris by King Edward VII which paved the way to a British-French entente which Edward VII which paved the way to a British-French entente which determined the outcome of World War I. determined the outcome of World War I.

#4F#4F

““if you don’t if you don’t listen, you don’t listen, you don’t sell anything.”sell anything.”

——Carolyn MarlandCarolyn Marland

!!! !!! (So true.)(So true.)

#4G#4G

Questioning, Questioning, the art the art [and [and

“profession”]“profession”] of. of.

Listening’s corollary: the Art & Practice of Asking. Listening’s corollary: the Art & Practice of Asking.

Ask!Ask!• • Leading with Questions: How Leaders Find theLeading with Questions: How Leaders Find the Right Solutions by Knowing What to AskRight Solutions by Knowing What to Ask — —Michael MarquardtMichael Marquardt• • Smart Questions: Learn to Ask the RightSmart Questions: Learn to Ask the Right Questions for Powerful ResultsQuestions for Powerful Results — —Gerald Nadler and William ChandonGerald Nadler and William Chandon• • The Art of Asking: Ask Better Questions,The Art of Asking: Ask Better Questions, Get Better Answers—Get Better Answers—Terry FademTerry Fadem• • How to Ask Great QuestionsHow to Ask Great Questions — —Karen Lee-ThorpKaren Lee-Thorp• • Change Your Questions, Change YourChange Your Questions, Change Your Life—Life—Marilee AdamsMarilee Adams• • Asking the Right Questions: A Guide toAsking the Right Questions: A Guide to Critical Thinking—Critical Thinking—Neil Browne andNeil Browne and Stuart KeeleyStuart Keeley

Again: Can be studied. Again: Can be studied.

Listen! Ask!Listen! Ask!

• • Listening Leaders: The Ten Golden Rules To Listen, Lead & SucceedListening Leaders: The Ten Golden Rules To Listen, Lead & Succeed — —Lyman Steil and Richard BommeljeLyman Steil and Richard Bommelje• • The Zen of Listening—The Zen of Listening—Rebecca ShafirRebecca Shafir• • Effective Listening Skills—Effective Listening Skills—Dennis Kratz and Abby Robinson KratzDennis Kratz and Abby Robinson Kratz• • Are You Really Listening?—Are You Really Listening?—Paul Donoghue and Mary SiegelPaul Donoghue and Mary Siegel• • Active Listening: Improve Your Ability to Listen and LeadActive Listening: Improve Your Ability to Listen and Lead — —Michael HoppeMichael Hoppe• • Listening: The Forgotten Skill—Listening: The Forgotten Skill—Madelyn Burley-AllenMadelyn Burley-Allen

• • Leading with Questions: How Leaders Find the Right Solutions byLeading with Questions: How Leaders Find the Right Solutions by Knowing What to Ask—Knowing What to Ask—Michael MarquardtMichael Marquardt• • Smart Questions: Learn to Ask the Right Questions for PowerfulSmart Questions: Learn to Ask the Right Questions for Powerful Results—Results—Gerald Nadler and William ChandonGerald Nadler and William Chandon• • The Art of Asking: Ask Better Questions, Get Better AnswersThe Art of Asking: Ask Better Questions, Get Better Answers — —Terry FademTerry Fadem• • How to Ask Great Questions—How to Ask Great Questions—Karen Lee-ThorpKaren Lee-Thorp• • Change Your Questions, Change Your Life—Change Your Questions, Change Your Life—Marilee AdamsMarilee Adams• • Asking the RightAsking the Right Questions: A Guide to Critical Thinking— Questions: A Guide to Critical Thinking—Neil Browne andNeil Browne and Stuart KeeleyStuart Keeley

#5#5

““The The fourfour most most imimpportantortant wordswords in any in any

organization are …organization are …

Ta da … Ta da …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.comSource: courtesy Dave Wheeler, posted at tompeters.com

““WDYT” = WDYT” = Certification of me Certification of me

as a person of as a person of Importance whose Importance whose opinion is valued. opinion is valued.

Biiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiig deal.Biiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiig deal. (Remember, (Remember, The The

Little BIG ThingsLittle BIG Things.) .)

Tomorrow: How Tomorrow: How many times will you many times will you

“ask the WDYT “ask the WDYT question”?question”?

[Count!] [Practice [Practice

makes better!] [This is a makes better!] [This is a

STRATEGIC skill!]skill!]

Not to be left to chance. Yup … can be Not to be left to chance. Yup … can be MEASUREDMEASURED..

#5A#5A

From Enemy/Reluctant User From Enemy/Reluctant User to Champion/Savior/Owner:to Champion/Savior/Owner:

The The “one line of code!”

AxiomAxiom

Ask my opinion of a system revision. I give you an earful. You go back and Ask my opinion of a system revision. I give you an earful. You go back and make a couple of tiny changes [“a line of code”] to accommodate me. Now make a couple of tiny changes [“a line of code”] to accommodate me. Now I “own” the thing—and become a champion rather than a resistor. More or I “own” the thing—and become a champion rather than a resistor. More or less ... GUARANTEED … to work.less ... GUARANTEED … to work.

#6#6

““The deepest The deepest human need is human need is

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

Once again. ALL POWERFUL. Once again. ALL POWERFUL. (And usually (And usually neglected or half-hearted.)neglected or half-hearted.)

““Thank you” lingers on:Thank you” lingers on:

1010 years years

3M exec retires. At going away party, someone comes up to him, 3M exec retires. At going away party, someone comes up to him, very emotional, to thank the exec for a thank you note he’d sent 10 very emotional, to thank the exec for a thank you note he’d sent 10 years ago. (I’ve got a ton of similar stories.)years ago. (I’ve got a ton of similar stories.)

Tomorrow: How many Tomorrow: How many times will you mange to times will you mange to blurt out, “Thank you”? blurt out, “Thank you”?

[Count ’em!]

[Practice makes better!* *The engineer from [Practice makes better!* *The engineer from

Manchester.]] [This is a Manchester.]] [This is a STRATEGIC skill!]skill!]

Not a casual idea. Not a casual idea. Measure it.Measure it.

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

*appreciation is a proper … *appreciation is a proper …

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

*appreciation is a … *appreciation is a … professionprofession ! !

One more time. A topic worthy of serious “professional” study. One more time. A topic worthy of serious “professional” study.

And the answer is ….And the answer is ….

otisotis

Teacher gives a science exam. Students prepped—know what’s Teacher gives a science exam. Students prepped—know what’s coming. Quiet in the room. Then din. Students complaining. “Will coming. Quiet in the room. Then din. Students complaining. “Will the last question count?” Teacher: “Most definitely.” And the last the last question count?” Teacher: “Most definitely.” And the last

question is: question is: “What is the first name of “What is the first name of the person who cleans the room the person who cleans the room after class?”after class?”

(Hint: Otis.)(Hint: Otis.)

Teacher: “As you go forward in life, you will meet many people. All Teacher: “As you go forward in life, you will meet many people. All of them are important. Each one deserves your attention and of them are important. Each one deserves your attention and respect …”respect …”

Source: Deborah Norville, Source: Deborah Norville, The Power of Respect.The Power of Respect.

““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to

the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a

college president.college president. He was He was seriously interested in seriously interested in

who you were and what who you were and what you had to say.”you had to say.”

—Sara Lawrence-Lightfoot, Respect

Self explanatory. Usually honored in the breach.Self explanatory. Usually honored in the breach.

#7#7

It helps to know people in …It helps to know people in …

highhigh places!places!

Conventional wisdom. Not silly …Conventional wisdom. Not silly …

It helps It helps moremore to know people in … to know people in … ““LowLow””

places!places!

My “wisdom.” “Low” is where the … My “wisdom.” “Low” is where the … real workreal work … is done. … is done.

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

TP on Charlie Wilson’s War, by George Crile:TP on Charlie Wilson’s War, by George Crile: Make friends by the Make friends by the bushel with those bushel with those several levels down and with various several levels down and with various

disenfranchised groups.disenfranchised groups. Gust Avrakotos’ strategy: Gust Avrakotos’ strategy: “He had “He had become something of a legend with become something of a legend with these people who manned the these people who manned the underbelly of the Agency [CIA].”underbelly of the Agency [CIA].” Eg, Gust Eg, Gust apparently knew every executive secretary by name—and had helped apparently knew every executive secretary by name—and had helped many of them out with personal or professional problems. You could many of them out with personal or professional problems. You could

almost say he had the almost say he had the “invisible 95%”“invisible 95%” of the Agency of the Agency working for him which allowed him to make incredible things happen working for him which allowed him to make incredible things happen despite furious resistance from the top of a very rigid organization. I despite furious resistance from the top of a very rigid organization. I have spoken and Blogged on this topic before, arguing among other have spoken and Blogged on this topic before, arguing among other things that things that the key to sales success is “wiring” the client organization the key to sales success is “wiring” the client organization 3 or 4 levels down—where the real work gets done. Most would agree 3 or 4 levels down—where the real work gets done. Most would agree perhaps—but damn few make it the obsession it needs to be to foster perhaps—but damn few make it the obsession it needs to be to foster success. One added (big) benefit is that “those folks” are seldom success. One added (big) benefit is that “those folks” are seldom recognized, and thence the “investment” will likely yield long-lasting, recognized, and thence the “investment” will likely yield long-lasting, not transient, rewards. not transient, rewards.

The CIA go-to guy inThe CIA go-to guy in Charlie Wilson’s War Charlie Wilson’s War was a middle manager—was a middle manager—but he was able to work miracles in a rigid institution because of his but he was able to work miracles in a rigid institution because of his tight and extensive relationships with the organization’s tight and extensive relationships with the organization’s “underbelly.”“underbelly.”

Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”

Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”

Maximizing “friends in low places” is a winning strategy.Maximizing “friends in low places” is a winning strategy.

C(I)C(I)>>C(C(E)E)

Internal Internal “customers” [C(I)] often more important than external “customers” [C(I)] often more important than external customers [C(E)]. If your whole organization is at your beck and customers [C(E)]. If your whole organization is at your beck and call, you can repeatedly work miracles for the external customer. If call, you can repeatedly work miracles for the external customer. If your “internal customers” are peeved at you, they can torpedo your your “internal customers” are peeved at you, they can torpedo your work with your outside customers in a gazillion (or more) ways.work with your outside customers in a gazillion (or more) ways.

““Suck down for Suck down for success!” * ** *** **** success!” * ** *** **** ********

*“He [Gust Avrakotos] had become something *“He [Gust Avrakotos] had become something of a legend with these people who manned the of a legend with these people who manned the underbelly of the Agency [CIA],”underbelly of the Agency [CIA],” fromfrom Charlie Charlie Wilson’s War Wilson’s War **Getting to know “the risk guys” [GE Power] **Getting to know “the risk guys” [GE Power] ******“Spend less time with your customer!”“Spend less time with your customer!”

********C(I) > C(E)C(I) > C(E) *****The ATT systems sales exec*****The ATT systems sales exec

An AT&T systems sales exec started me down this path.An AT&T systems sales exec started me down this path.

#8#8

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More SuccessfulEven More Successful

“… “… most magical, healing, restorative gesture human beings can most magical, healing, restorative gesture human beings can make.”make.” Talk about “strong language”! And Goldsmith is the Talk about “strong language”! And Goldsmith is the unquestioned #1 executive coach—i.e., worth paying attention to.unquestioned #1 executive coach—i.e., worth paying attention to.

pausepause

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More SuccessfulEven More Successful

Worth re-reading.Worth re-reading.

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

I believe this is true I believe this is true 100%100% of the time. Most of my of the time. Most of my

personal and professional disasters could clearly have personal and professional disasters could clearly have been reversed or ameliorated with such a call.been reversed or ameliorated with such a call.

The “three-minute call” The “three-minute call” often-usually-invariably often-usually-invariably leads to a leads to a strenstrenggthenintheningg of the relationship. It not of the relationship. It not only acts as atonement only acts as atonement but also paves the path but also paves the path for a “better than ever” for a “better than ever”

trajectory.trajectory.

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSERESPONSE TO THE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

Think Richard Nixon, Bill Clinton, Martha Stewart. None, Think Richard Nixon, Bill Clinton, Martha Stewart. None, and a host like them, ever got in trouble for “the act and a host like them, ever got in trouble for “the act itself”—but instead for the cover-up.itself”—but instead for the cover-up.

pausepause

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSERESPONSE TO THE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

Yup … another one worth re-reading immediately.Yup … another one worth re-reading immediately.

Potlatch.Potlatch.

Potlatch is the ritual of overwhelming one with gifts to Potlatch is the ritual of overwhelming one with gifts to the point at which one is paralyzed. I’m not quite the point at which one is paralyzed. I’m not quite suggesting that, but I am simply saying that an suggesting that, but I am simply saying that an “overwhelming”-“disproportionate”-“asymmetric” “overwhelming”-“disproportionate”-“asymmetric” response to a screw-up is more or less … ALWAYS … response to a screw-up is more or less … ALWAYS … warranted. warranted.

(FYI: Also central to this idea is a culture that (FYI: Also central to this idea is a culture that encourages timely truth-telling around screw-ups.) encourages timely truth-telling around screw-ups.)

Shit Shit happens. happens.

Be Be prepared.prepared.

Potlatch-plus. Shit happens—to the best of us. Have Potlatch-plus. Shit happens—to the best of us. Have slack resources ready to react to problems before they slack resources ready to react to problems before they occur. occur.

*effective “Repair”/Apology is of the*effective “Repair”/Apology is of the

utmost … utmost … strategicstrategic importance! importance!

*effective repair is a proper …*effective repair is a proper …

core core valuevalue ! !

*effective repair is …*effective repair is …

trainabletrainable !!

*effective repair is a …*effective repair is a …

professionprofession ! !

Once more … a craft … a profession … a trait worthy of Once more … a craft … a profession … a trait worthy of study.study.

#8A#8A

ComebackComeback[big, quick response][big, quick response]

>>>>PerfectionPerfection

Human irrationality at its best: Addressing a screw-up Human irrationality at its best: Addressing a screw-up brilliantly may well result in a stronger relationship than brilliantly may well result in a stronger relationship than one marked by flawless delivery but no tests of one marked by flawless delivery but no tests of response to adversity.response to adversity.

Acquire vs maintain*:Acquire vs maintain*:

5X5X*Recession goal: Higher “market share” *Recession goal: Higher “market share” currentcurrent customers customers

The economics are clear. It costs far, far more to dig up a The economics are clear. It costs far, far more to dig up a new customer than to maintain a current relationship—new customer than to maintain a current relationship—hence justification for spending lavishly to patch a hence justification for spending lavishly to patch a pothole to keep a current customer happy or regain her pothole to keep a current customer happy or regain her or his confidence.or his confidence.

#8B#8B

““One of the secrets of One of the secrets of a long and fruitful life a long and fruitful life

is to forgive everybody is to forgive everybody of everything every of everything every night right before night right before

going to bed.”going to bed.” —Bernard Baruch—Bernard Baruch

Carrying grudges has high personal costs (wear and tear Carrying grudges has high personal costs (wear and tear on the psyche), and high professional costs; in the latter on the psyche), and high professional costs; in the latter case, the damage that can be done by even weak case, the damage that can be done by even weak enemies is immeasurable! So: If you’re wise you’ll enemies is immeasurable! So: If you’re wise you’ll forgive and move on.forgive and move on.

#9#9

Enterprise Value:Enterprise Value: “We are “We are thoughtful in thoughtful in all we do.”all we do.”

I have come to love the word “thoughtful.” Especially in I have come to love the word “thoughtful.” Especially in difficult times. It is a “way to live in the world”—and I difficult times. It is a “way to live in the world”—and I firmly believe it can contribute directly to the bottom firmly believe it can contribute directly to the bottom line. It is a matter of trust and character and courtesy—line. It is a matter of trust and character and courtesy—all three pay big dividends. (Not to mention the fact that all three pay big dividends. (Not to mention the fact that thoughtfulness results in a more attractive image when thoughtfulness results in a more attractive image when one looks in the mirror or discusses what one does with one looks in the mirror or discusses what one does with our children.)our children.)

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.

““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

This I believe. This I believe.

*Thoughtfulness is of the*Thoughtfulness is of the

utmost … utmost … strategicstrategic importance! importance!

*thoughtfulness is a proper … *thoughtfulness is a proper …

core core valuevalue ! !

*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

One more time. One more time.

#9A#9A

nonenone!!

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to the patient’s health referred to the patient’s health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.S.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

Stunning. Stunning.

Patient satisfaction is almost exclusively related to the Patient satisfaction is almost exclusively related to the quality of interactions with hospital staff—which in turn quality of interactions with hospital staff—which in turn is primarily caused by the quality of staffers’ interactions is primarily caused by the quality of staffers’ interactions with one another. with one another.

““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their

questions costs nothing. questions costs nothing. It can be argued that negative It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a than it would have taken to interact with them initially in a

positive waypositive way.”.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

Be kind.Be kind.Have happy patients.Have happy patients.Save $$$.Save $$$.Grow market share.*Grow market share.*(*Griffin Hospital, Planetree Alliance.)(*Griffin Hospital, Planetree Alliance.)

““KindnesKindness is free.”s is free.”

#10#10

The “Eight Courtesies”The “Eight Courtesies”

1. Stay in touch. 1. Stay in touch. (MBWA.)(MBWA.)

2. Invest in relationships. 2. Invest in relationships. (Make friends. (Make friends. Obsess.)Obsess.)

3. Listen. 3. Listen. (Respect. Learn. Student. PROFESSIONAL.(Respect. Learn. Student. PROFESSIONAL. Sustainable Competitive Advantage #1Sustainable Competitive Advantage #1))

4. Ask 4. Ask (Engage. Inspire. Consult. React.)(Engage. Inspire. Consult. React.)

5. Thank 5. Thank (Appreciate. Acknowledge.)(Appreciate. Acknowledge.)

6. Network. 6. Network. (“Suck down.” C(I)>C(E).)(“Suck down.” C(I)>C(E).)

7. Apologize 7. Apologize (Unequivocal. Rectify. Over-react.(Unequivocal. Rectify. Over-react. Forgive. ) Forgive. )

8. Practice thoughtfulness. 8. Practice thoughtfulness. (Kindness is free.(Kindness is free. This is … STRATEGIC.)This is … STRATEGIC.)

The story/this story/my story in summary form.The story/this story/my story in summary form.

Big 5Big 5

1. Listen.1. Listen. (Respect. Learn) (Respect. Learn)

2. Ask.2. Ask. (Solicit. Engage. Inspire.) (Solicit. Engage. Inspire.)

3.3. Thank.Thank. (Appreciate. Acknowledge.)(Appreciate. Acknowledge.)

4. Apologize 4. Apologize (Rectify. Build.)(Rectify. Build.)

5. Practice thoughtfulness5. Practice thoughtfulness (A way of life. A staple of “good business.”)(A way of life. A staple of “good business.”)

Sometimes (such as short presentations) I focus “just” Sometimes (such as short presentations) I focus “just” on what I call “The BIG 5.”on what I call “The BIG 5.”

#11#11

““If I could have chosen not to tackle the IBM culture If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of comparison, changing the attitude and behaviors of

hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.

[Yet] I came to see in my [Yet] I came to see in my time at IBM that culture time at IBM that culture

isn’t just one aspect of the isn’t just one aspect of the

game game ——it is the it is the gamegame.”.” —Lou Gerstner,—Lou Gerstner,

Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

To do “all this stuff” is primarily a “cultural” issue. (As To do “all this stuff” is primarily a “cultural” issue. (As Lou Gerstner found out to his dismay at IBM.)Lou Gerstner found out to his dismay at IBM.)

“… “… it is it is the the

game.”game.”

Ken Kizer/VA 1997: Ken Kizer/VA 1997: “culture of cover-up “culture of cover-up that pervades healthcare” that pervades healthcare”

“Patient Safety Event Registry”“Patient Safety Event Registry”

… “looking for systemic solutions, … “looking for systemic solutions, not not seeking to fix blameseeking to fix blame on individuals on individuals

except in the most egregious cases. The good news except in the most egregious cases. The good news

was awas a thirtthirtyy-fold -fold increaseincrease in the number of medical in the number of medical

mistakes and adverse events that got reported.” mistakes and adverse events that got reported.” “ “National Center for Patient Safety Ann Arbor”National Center for Patient Safety Ann Arbor”

““Culture change” Culture change” cancan be accomplished in even the least be accomplished in even the least likely places—Big Time. Mostly, hospital staffs hide likely places—Big Time. Mostly, hospital staffs hide mistakes—it’s perhaps the “culture of medicine.” The mistakes—it’s perhaps the “culture of medicine.” The

Veterans AdministrationVeterans Administration hospitals hospitals successfully attacked that culture. Reporting “incidents” successfully attacked that culture. Reporting “incidents” became “the thing to do”—and was rewarded. As a became “the thing to do”—and was rewarded. As a result mistakes reported throughout the system result mistakes reported throughout the system increased by a … FACTOR OF THIRTY! Armed with increased by a … FACTOR OF THIRTY! Armed with buckets full of precious data, the VA became, among buckets full of precious data, the VA became, among other things, America’s best model of patient safety. other things, America’s best model of patient safety.

3030--

fold!fold!

Quite a lot, eh?Quite a lot, eh?

#12#12

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

The uncommon “common courtesies”—the primary The uncommon “common courtesies”—the primary basis for staff basis for staff andand customer satisfaction customer satisfaction andand retention— retention—andand superior relationships in general. superior relationships in general. And And high high

profitability. profitability. And And the deepest of deep the deepest of deep blueblue oceans oceans