LONGLONG

ExcellenceExcellence NOWNOW

Tom Peters/17 November 2012/MoscowTom Peters/17 November 2012/Moscow(slides @ tompeters.com/excellencenow.com)(slides @ tompeters.com/excellencenow.com)

Part Part ONEONE

#1#1

Little =Little =

BIBIGG

#2#2

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

#3#3

Don’t like it?Don’t like it?Don’t pay.Don’t pay.Source: Granite Rock Co.Source: Granite Rock Co.

#4#4

Red light flashes=Red light flashes=

-10%-10%

#5#5

Promised vs Delivered:Promised vs Delivered:

+15%+15%Source; Elgin Corrugated BoxSource; Elgin Corrugated Box

#6#6

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

#7#7

$100+ purchase/ $100+ purchase/ 3-cent3-cent lemonlemon

NationalNational “Brand”/ “Brand”/ 2-cent2-cent candycandy

#8#8

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

““Let me help Let me help you down you down

the jetway.”the jetway.”

#9#9

Socks = Socks = 10,00010,000

#10#10

30 30 minutesminutes = = 1%1%$25M/$20M/$25M/$20M/$200K$200K

#11#11

2X2XSource: Container Store/increase average sale per shopperSource: Container Store/increase average sale per shopper

#12#12

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

#13#13

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

#14#14

<TG<TGWWand …and …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

TGRTGRss..ManageManage ’em. ’em.

MeasureMeasure ’em.’em.**

*I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things

that can be managed—AND measured. that can be managed—AND measured.

““Perception Perception is allis all

there is”there is”

CustomersCustomers describing their describing their service experience as service experience as

“superior”: “superior”: 88%%ComComppaniesanies describing describing

the service experience they the service experience they provide asprovide as

“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a

Stage

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

#15#15

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

>>>>PerfectionPerfection

Acquire vs maintain*:Acquire vs maintain*:

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

#16#16

ConradConrad HiltonHilton, at a gala celebrating his , at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

You get ’em You get ’em inin the the door with “location, door with “location,

location, location”—and location, location”—and a terrific architect. a terrific architect. You You keep ’em keep ’em comincoming g backback

with the tucked in with the tucked in shower curtain!shower curtain!**

*Profit rarely comes from transaction #1; *Profit rarely comes from transaction #1; it is a byproduct of transaction it is a byproduct of transaction #2, #3, #4#2, #3, #4 … …

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

Sports:Sports: You beat You beat yourself!yourself!

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.”—Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

““When assessing candidates, the When assessing candidates, the first thing I looked for was energy first thing I looked for was energy

and enthusiasm for execution: and enthusiasm for execution: Does she talk about the thrill Does she talk about the thrill of of ggettinettingg thin thinggs done, the s done, the

obstacles overcome, the role obstacles overcome, the role her her ppeople eople pplayedlayed —or does —or does

she keep wandering she keep wandering back to strategy or back to strategy or

philosophy?”philosophy?” —Larry Bossidy, —Larry Bossidy, ExecutionExecution

WOWWOW!!!!Observed closely: The use ofObserved closely: The use of

“I”“I” oror “we”“we” during aduring a

job interview.job interview.Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,”

Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

#17#17

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $failure “free” (PR, $

$)$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

(1)(1) Half-day/25 ideasHalf-day/25 ideas(2)(2) One week/5 One week/5

experimentsexperiments(3) (3) One month/Select best One month/Select best

22(4) (4) 60-90 days/Roll out60-90 days/Roll out

Little =Little =

BIBIGG

Part Part TWOTWO

FIVE First FIVE First things Before things Before First Things …First Things …

#1#1

If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

““In great armies, the In great armies, the job of generals is to job of generals is to

back up their back up their sergeants.”sergeants.”

—COL Tom Wilhelm, from Robert Kaplan, —COL Tom Wilhelm, from Robert Kaplan, “The Man Who Would Be Khan,” “The Man Who Would Be Khan,” The AtlanticThe Atlantic

#1#1 cause of cause ofemployee employee

Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction & productivity:Employee retention & satisfaction & productivity: OverwhelminOverwhelminggllyy

based on the based on the first-line first-line manamanagger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules:First, Break All the Rules: What the World’s Greatest Managers Do Differently What the World’s Greatest Managers Do Differently

““People People leave leave

managers not managers not companies.”companies.”

——Dave WheelerDave Wheeler

Suggested addition to your statement of Core Suggested addition to your statement of Core Values: Values: “We are obsessed with “We are obsessed with developing a cadre of 1st line developing a cadre of 1st line managers that is second to managers that is second to

none—we understand that this none—we understand that this cadre per se is arguably one of cadre per se is arguably one of

our top two or three most our top two or three most important ‘Strategic Assets.’”important ‘Strategic Assets.’”

#2#2

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

explicitlyexplicitly & & visiblyvisibly & &

relentlessly relentlessly manage to manage to

XFX standard!XFX standard!

Never Never waste a waste a lunch!lunch!

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

% XF % XF

lunches*lunches***MeasureMeasure!! Monthly! Part of Monthly! Part of

evaluation! [The PAs Club.]evaluation! [The PAs Club.]

XFX:XFX: SocialSocial accelerators …accelerators …

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)world” to your group. (Useful. Mark of respect.)5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of 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 “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)some other function’s folks.) 6. Present counterparts in other functions awards for 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an service to your group. Tiny awards at least weekly; and an “Annual“Annual All-Star Supporters [from other groups] Banquet” All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. modeled after superstar salesperson banquets.

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators7. Routinely discuss—A SEPARATE AGENDA ITEM—good and 7. Routinely discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every problematic acts of cross-functional co-operation at every Team Meeting. Team Meeting. 8. When someone in another function asks for assistance, 8. When someone in another function asks for assistance, respond with … more … alacrity than you would if it were the respond with … more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you person in the cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the would for a key external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all key to Customer Retention which is in turn the key to “all good things.”)good things.”)9. Do not bad mouth ... “the damned accountants,” “the 9. Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever. (Bosses: Severe penalties for this—bloody HR guy.” Ever. (Bosses: Severe penalties for this—including public tongue-lashings.) including public tongue-lashings.) 10. 10. Get physical! “Co-location” may well be the most Get physical! “Co-location” may well be the most powerful “culture change lever.”powerful “culture change lever.” Physical X-functional Physical X-functional proximity is almost a … guarantee … of remarkably improved proximity is almost a … guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.can be mobilized for a team in a flash.11. 11. Establish “adhocracy” as S.O.P.Establish “adhocracy” as S.O.P. To improve the new “X- To improve the new “X-functional Culture” (and business results), little XF teams functional Culture” (and business results), little XF teams should be formed on the spot to deal with an urgent issue—should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.”making it normal to be “working the XF way.”

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators12. Early project “management” experience. Within days, 12. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit literally, of coming aboard folks should be “running” some bit of a bit of a bit a project, working with folks from other of a bit of a bit a project, working with folks from other functions—hence, “all this” becomes as natural as breathing.functions—hence, “all this” becomes as natural as breathing.13. Work proactively to give as large as possible numbers of 13. Work proactively to give as large as possible numbers of people temporary assignments in other functions—especially people temporary assignments in other functions—especially Finance.Finance.14. “Get ’em out with the customer.” Rarely does the 14. “Get ’em out with the customer.” Rarely does the accountant or bench scientist call on the customer. Reverse accountant or bench scientist call on the customer. Reverse that. Give everyone more or less regular “customer-facing that. Give everyone more or less regular “customer-facing experiences.” She or he learns quickly that the customer is not experiences.” She or he learns quickly that the customer is not interested in our in-house turf battles! interested in our in-house turf battles! 15. Consider creating a special role, or even position. Specialty 15. Consider creating a special role, or even position. Specialty chemical company Buckman Labs established chemical company Buckman Labs established “knowledge “knowledge transfer facilitatorstransfer facilitators,,”” effectively former “middle managers,” effectively former “middle managers,” with 100% of discretionary pay based on success at spurring with 100% of discretionary pay based on success at spurring integration across previously impermeable barriers.integration across previously impermeable barriers.

XFX/: Typical XFX/: Typical SocialSocial Accelerators Accelerators

16. Formal evaluations. Everyone, starting with the 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)the Top 3 items in all managers’ evaluations.)17. 17. Every functional unit should have strict and extensive Every functional unit should have strict and extensive measures of “customer satisfaction” based on evaluations measures of “customer satisfaction” based on evaluations from other functions of its usefulness and effectiveness and from other functions of its usefulness and effectiveness and value-added to the enterprise as a whole. value-added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals admirals to have served a full tour in a job whose only goals were cross-functional achievements.were cross-functional achievements.19. “Deep dip.” Dive three levels down in the organization to 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-fill a senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional active on adding value via excellent cross-functional integration. integration. 20. XFX is … PERSONAL … as well as about organizational 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. career, freelancer/Brand You, or as entrepreneur. 21. 21. Excellence!Excellence! There is a “State of XF Excellence” per There is a “State of XF Excellence” per se. Talk it up constantly. Pursue it. Aspire to nothing less.se. Talk it up constantly. Pursue it. Aspire to nothing less.

““I am I am hundreds of hundreds of times better heretimes better here [than[than

in my prior hospital assignment]in my prior hospital assignment] because of because of the support system. the support system. It’s like It’s like

yyou were workinou were workingg in an in an ororgganism; anism; yyou are not a ou are not a

sinsinggle cell when le cell when yyou are out ou are out there there ppracticinracticingg.’”.’” —quote from Dr. Nina Schwenk, —quote from Dr. Nina Schwenk,

in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

#3#3

In the Army, In the Army, 33--star star ggeneralsenerals worry about worry about

training. In most training. In most businesses, it's a “ho businesses, it's a “ho hum” mid-level staff hum” mid-level staff

function.function.

Why is intensive-Why is intensive-extensive training extensive training

obvious for the army obvious for the army & navy & sports & navy & sports

teams & performing teams & performing arts groups--but arts groups--but not

for the average for the average business?business?

(1)(1) Training merits Training merits ““C-level” C-level” status! status!(2)(2) Top trainers should Top trainers should be be paid a king’spaid a king’s ransomransom—and be of—and be of the same caliber asthe same caliber as top marketers ortop marketers or researchers.researchers.

I would hazard a guess I would hazard a guess that most CEOs see IT that most CEOs see IT

investments as a investments as a “strategic necessity,” but “strategic necessity,” but see training expenses as see training expenses as

“a necessary evil.”“a necessary evil.”

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

Q3 2011/BLSQ3 2011/BLS

++3.13.1//Non-farm productivity growthNon-farm productivity growth+3.8/+3.8/Non-farm outputNon-farm output+0.6/+0.6/Non-farm hours workedNon-farm hours worked

++5.45.4//Manufacturing productivityManufacturing productivity+4.7/+4.7/Manufacturing outputManufacturing output-0.6//Manufacturing hours workedManufacturing hours worked

Source: Bureau of Labor Statistics/03 November 2011Source: Bureau of Labor Statistics/03 November 2011

““The root of our problem isThe root of our problem is not that we’re in a Great not that we’re in a Great

Recession or a Great Stagnation, Recession or a Great Stagnation, but rather that we are inbut rather that we are in

the early throes of a Great the early throes of a Great Restructuring. Our technologies Restructuring. Our technologies are racing ahead, but many of are racing ahead, but many of

our skills and organizations are our skills and organizations are lagging behind.”lagging behind.”

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

Legal industry/Pattern Legal industry/Pattern Recognition/Discovery (e-Recognition/Discovery (e-

discovery algorithms):discovery algorithms):

500 lawyers to …500 lawyers to …

ONEONESource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

China/Foxconn:China/Foxconn:

1,000,000 1,000,000 robots in next robots in next

3 years3 yearsSource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

#4#4

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

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

18 18 ……

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark 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 CollaborationCollaboration..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 forListening 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 growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*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 superior EXECUTIONEXECUTION..Listening is ... the key to Listening is ... the key to making the making the SaleSale..Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... Listening is ... ServiceService..Listening is ... the engine of Listening is ... the engine of Network developmentNetwork 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 ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... LearningLearning..Listening is ... the Listening is ... the sine qua non of sine qua non of RenewalRenewal..Listening is ... the Listening is ... the sine qua non of sine qua non of CreativityCreativity..Listening is ... the Listening is ... the sine qua non of sine qua non of InnovationInnovation..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-addedSource #1 of “Value-added.”.”Listening is ... Listening is ... Differentiator #1Differentiator #1..Listening is ... Listening is ... ProfitableProfitable.*.* (*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

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

Is there a full-bore Is there a full-bore training course in training course in

"Listening" for "Listening" for

100100%% ofof employeesemployees, CEO, CEO

to temps? If not, There to temps? If not, There [[damndamn wellwell] ought to ] ought to

be.be.

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are Effective “We are Effective Listeners—we treat Listening Listeners—we treat Listening

EXCELLENCE as the EXCELLENCE as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

and Growth.”and Growth.”

#5#5

Complain all Complain all you want, but you want, but

meetinmeetinggss are what you are what you

[boss] [boss] dodo!!

Meetings = #1 Meetings = #1 leadership leadership

opportunityopportunity

Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination

and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-

oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and

motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a

ppermanentlermanentlyy lost o lost opppportunitortunity.y.

Part Part THREETHREE

Innovation’Innovation’s BIG s BIG

THREETHREE

#1#1

READY.READY.FIRE.FIRE.AIM.AIM.

H. Ross Perot (vs H. Ross Perot (vs ““Aim! Aim! Aim!”Aim! Aim! Aim!” /EDS vs GM/1985)/EDS vs GM/1985)

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals are ready By the time our rivals are ready with wires and screws, we are on version with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.” ——Bloomberg by BloombergBloomberg by Bloomberg

““What are Rutan’s management rules? He What are Rutan’s management rules? He insists he doesn’t have any. ‘I don’t like insists he doesn’t have any. ‘I don’t like

rules,’ he says. ‘Things are so easy to change rules,’ he says. ‘Things are so easy to change if you don’t write them down.’ Rutan feels if you don’t write them down.’ Rutan feels good management works in much the same good management works in much the same way good aircraft design does:way good aircraft design does: Instead Instead

of trof tryyiningg to fi to figgure out the best ure out the best way to do somethinway to do somethingg and and

stickinstickingg to it, to it, jjust trust tryy out an out an aapppproach and keeroach and keepp fixin fixingg it it.”.”

——Eric Abrahamson & David Freedman, Chapter 8, “Messy Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,”Leadership,” from A Perfect Mess: The Hidden Benefits of Disorder from A Perfect Mess: The Hidden Benefits of Disorder

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may be be thethe most most

valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

““Experiment Experiment fearlessly”fearlessly”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“relentless trial“relentless trial and error” and error”

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

In Search of ExcellenceIn Search of Excellence /1982: /1982: The Bedrock “Eight Basics”The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties Properties

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““The secret of fast The secret of fast progress is progress is

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““RewardReward excellent failures. PunishPunish mediocre

successes.”—Phil Daniels, Sydney exec

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

1/461/46

Lesson46:Lesson46: WTTMTWWTTMTW

WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsWinsWins

Better yet:Better yet: WTTMTWTTMTASTMTUTFASTMTUTFWW

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““You miss You miss

100100%% of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

#2#2

The “Hang Out Axiom I”:The “Hang Out Axiom I”: We We are are What We What We

Eat/WeEat/We Are Are the the companycompany we keepwe keep

““You will become You will become like the five people like the five people you associate with you associate with the most—this can the most—this can

be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox

The “We are what we eat”/ The “We are what we eat”/ “We are who we associate with”“We are who we associate with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

Measure “StranMeasure “Stranggeness”/Portfolio Qualityeness”/Portfolio QualityStaffStaff

ConsultantsConsultantsVendorsVendors

Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners

CustomersCustomersCompetitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers may defining customers may account for only account for only 2%2% to to 3%3% of your total, of your total, but but

thetheyy re reppresent a resent a crucial window on the crucial window on the futurefuture.”.” —Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus onfocus on inventing all its own products to developing … inventing all its own products to developing …

others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful example, Mr. Clean Magic Eraser, based on a product example, Mr. Clean Magic Eraser, based on a product

found in an Osaka market.” found in an Osaka market.” ——FortuneFortune

““Don’t Don’t benchmark, benchmark,

futurefuturemark!”mark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

““Don’t Don’t benchmark,benchmark,

‘Other’ ‘Other’ markmark!!””

WeWe Are Are the the companycompany we keep!we keep!ManageManage it! it!

“The The Bottleneck Bottleneck

……

“The Bottleneck The Bottleneck … Is at … Is at

the Top of the the Top of the Bottle”Bottle”

“Where are you likely to find people “Where are you likely to find people with the with the least diversitleast diversityy of ex of expperienceerience, ,

the the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for

industrindustryy do doggmama … …

AtAt thethe totop!”p!”

— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review

Diversity … Diversity … perper sese … is a key … … is a key …

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one randomrandom (and therefore diverse) and one (and therefore diverse) and one

consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: The Difference:

How the Power of Diversity Creates Better Groups,How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Firms, Schools, and Societies

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

WeWe Are Are the the companycompany we keep!we keep!ManageManage it! it!

Co-creationCo-creation

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT

Rob McEwen/CEO/Rob McEwen/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

Forgetting Forgetting >> Learning>> Learning

Forget>“Learn”Forget>“Learn”

“The problem is never “The problem is never how to get new, how to get new,

innovative thoughts innovative thoughts into your mind, into your mind, but

how to get the old ones out.” —Dee Hock—Dee Hock

#3#3

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““We are crazy. We should do We are crazy. We should do something when people say something when people say

it is ‘crazy.’it is ‘crazy.’ If people If people say something is say something is ‘good’, it means ‘good’, it means someone else is someone else is

already doing it.”already doing it.”—Hajime Mitarai, Canon—Hajime Mitarai, Canon

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

Every project:Every project: Where’s Where’s your “Craig’s your “Craig’s

List List

[WOW!][WOW!]

option”option”??

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

WowWow!!

Part Part FOURFOUR

FOURFOURKey Market Key Market StrategiesStrategies

#1#1

Design Design RulesRules!!

APPLEAPPLE market market capcap

> Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

““We are We are allall designers.” designers.”Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for

Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

““Design is Design is treated like treated like a relia religgionion at at

BMW.”*BMW.”* —Fortune—Fortune

**APPLEAPPLE market cap > Exxon Mobil (August 2011) market cap > Exxon Mobil (August 2011)

““We don’t have a good language to talk We don’t have a good language to talk about this kind of thing. In most people’s about this kind of thing. In most people’s

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. DesignDesign is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

Suit/Asda/$50Suit/Asda/$50Suit/M&S/10XSuit/M&S/10X

Suit/Saville Road Suit/Saville Road bespoke/10Xbespoke/10X

iPhone/$700iPhone/$700iPhone/”assembled in iPhone/”assembled in

China”/$20China”/$20Source:Source: John KayJohn Kay/”/”Our Fetish for Making Things Fails to Understand ‘Real Work’”/Our Fetish for Making Things Fails to Understand ‘Real Work’”/FT/FT/11.1211.12

CCDDOO**Chief *Chief DDesignesign Officer Officer

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

#2#2

““I speak to you with a feminine voice. I speak to you with a feminine voice. It’s the voice of democracy, of equality. It’s the voice of democracy, of equality.

I am certain, ladies and gentlemen, I am certain, ladies and gentlemen,

that this will be the that this will be the woman’s centurwoman’s centuryy. In the . In the

Portuguese language, words Portuguese language, words such as life, soul, and hope aresuch as life, soul, and hope are

of the feminine gender, as are other of the feminine gender, as are other words like courage and sincerity.”words like courage and sincerity.” ——

President President Dilma RousseffDilma Rousseff of Brazil, of Brazil, 1st woman to keynote the United Nations General Assembly1st woman to keynote the United Nations General Assembly

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘‘womenomics,’ the economy womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude Zieseniss de —Aude Zieseniss de

Thuin, Women’s Forum for the Economy and SocietyThuin, Women’s Forum for the Economy and Society

““Women areWomen are thethe majority majority

market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

W W == 28T 28T >> 2(C 2(C + I)+ I)

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and

India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning

strategy when it comes to women. Consider Dell’s …”strategy when it comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

2.62.6 vs.vs.

2121

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find that female managers outshine their male that female managers outshine their male

counterparts in almost every measure”counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than Link [rather than

rank] workers; rank] workers; favor interactive-favor interactive-collaborative leadership style collaborative leadership style

[empowerment beats top-down decision [empowerment beats top-down decision making];making]; sustain fruitful collaborations; sustain fruitful collaborations;

comfortable with sharing information; comfortable with sharing information; see see redistribution of power as victory, not redistribution of power as victory, not

surrendersurrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal value technical & interpersonal

skills, individual & group contributions skills, individual & group contributions equally;equally; readily accept ambiguity; readily accept ambiguity; honor honor intuition as well as pure “rationality”;intuition as well as pure “rationality”; inherently flexible; inherently flexible; appreciate cultural appreciate cultural

diversitydiversity.. Source: Judy B. Rosener, Source: Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080 Percent Percent of Management and of Management and Professional Jobs”Professional Jobs”

Source: Source: The Extreme Future: The Top Trends That Will The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 YearsReshape the World in the Next 20 Years, James Canton, James Canton

#3#3

““I am often asked by would-I am often asked by would-be entrepreneurs seeking be entrepreneurs seeking

escape from life within huge escape from life within huge corporate structures, corporate structures, ‘‘How How do I build a small do I build a small firm for myself?’firm for myself?’

The answer seems obviousThe answer seems obvious … … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“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 Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.

TheTheyy found that found that nonenone ofof

the lon the longg-term survivors mana-term survivors managged ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, the worse theyy did did.”.” —Financial Times—Financial Times

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

MittELstandMittELstand* * **** ** “agile creatures darting between “agile creatures darting between the legs of the multinationalthe legs of the multinational monsters"monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

““agile creatures agile creatures darting betweendarting between the legs of the the legs of the multinational multinational

monsters"monsters"

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent StoresIndependent Storesin Americain America —by George Whalin—by George Whalin

Jungle Jim’s International Market, Jungle Jim’s International Market, FairfieldFairfield, , OhioOhio:: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jungle Jim’s call it, begins in the parking lot Jim’s call it, begins in the parking lot and goes on to and goes on to

1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties 1,400 varieties of hot sauceof hot sauce —not to mention —not to mention 12,000 12,000 wines priced from $8 to $8,000wines priced from $8 to $8,000 a a

bottle; all this is brought to you by bottle; all this is brought to you by 4,000 vendors4,000 vendors.. Customers come from every corner of the globe.” Customers come from every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, , MichiMichigganan, ,

pop 5,000:pop 5,000: 98,000-square-foot98,000-square-foot “shop” features “shop” features

the likes of the likes of 6,000 Christmas ornaments, 6,000 Christmas ornaments, 50,000 trims50,000 trims, and anything else you can name if it , and anything else you can name if it pertains to Christmas.pertains to Christmas.Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

#4#4

IBIBMMtoto

IIBBMM

““Never mind computers Never mind computers and tech services. and tech services.

IBM’s radical new focus IBM’s radical new focus is on revamping is on revamping

customers’ operationscustomers’ operations—and running them.”—and running them.”

—Headline/ BW—Headline/ BW

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—

and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be

access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano estimates it atestimates it at $$500500 billionbillion aa y yearear ——that technology companies have never been that technology companies have never been

able to touch.”able to touch.” ——FortuneFortune

IDEOIDEOProduct DesignProduct Design

Product Design TrainingProduct Design TrainingInnovation TrainingInnovation Training

UPSUPS

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

IPM’s Chief:IPM’s Chief: “We’ll do “We’ll do just about anything just about anything

an oilfield owner an oilfield owner would want, from would want, from

drilling to drilling to production.”production.”

““Instant Instant Infrastructure: GE Infrastructure: GE Becomes a General Becomes a General

Store for Store for Developing Developing

Countries”Countries” —headline/ —headline/ NYTNYT

MasterCard MasterCard AdvisorsAdvisors

Huge:Huge: Customer Customer ““SatisfactionSatisfaction with with

product/Service”product/Service” versus versus CustomerCustomer

““SuccessSuccess””

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle —Jan Gunnarsson & Olle

Blohm, Blohm, The Welcoming LeaderThe Welcoming Leader

Part Part FIVEFIVE

People People FirsFirst!t! People People SeconSecond ! d !

People People Third!Third! People People Fourth!Fourth!

People Fifth! People Fifth! People Sixth!People Sixth!

““Business has to give people enriching, Business has to give people enriching,

rewarding lives … rewarding lives … or it's or it's simply not simply not

worth worth doingdoing.”.”

——Richard BransonRichard Branson

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in USA (SWA’s pilots union took out a full-page ad in USA Today Today

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to Providing "What's the Secret to Providing

a World-class Customer Experience"a World-class Customer Experience"

““Employees who Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

EMPLOYEES FIRST, CUSTOMERS SECOND:EMPLOYEES FIRST, CUSTOMERS SECOND:Turning Conventional Management Upside Turning Conventional Management Upside

DownDownVineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

““hostmanship”/hostmanship”/““consideration consideration

renovation”renovation”

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does not go culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.nothing to do with it. True hostmanship leaders focus on their employees. What True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their Would you prefer to stay at a hotel where the staff love their

work or where management has made customers its highest priority?’”work or where management has made customers its highest priority?’” ““We We went throuwent througgh the hotel and made ah the hotel and made a ... ... ‘‘consideration renovation.consideration renovation.’’ Instead of Instead of redoinredoingg bathrooms, dinin bathrooms, dining g rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new ees new

uniforms, bouuniforms, bougght flowers and fruit, and ht flowers and fruit, and chanchangged colors.ed colors. Our focus was totallOur focus was totallyy on on the staff.the staff. TheTheyy were the ones we wanted were the ones we wanted to make hato make happy.ppy. We wanted them to wake up everWe wanted them to wake up everyy mornin morningg excited excited

about a new daabout a new dayy at work at work.” .” —Jan Gunnarsson and Olle Blohm, —Jan Gunnarsson and Olle Blohm, Hostmanship: Hostmanship: The Art of Making People Feel WelcomeThe Art of Making People Feel Welcome..

“ … “ … The guest comes into The guest comes into the picture only when you the picture only when you are ready to ask, are ready to ask, ‘‘Would Would you prefer to stay at a you prefer to stay at a

hotel where the staff love hotel where the staff love their work or where their work or where

management has made management has made customers its highest customers its highest

priority?’priority?’””

Brand Brand = =

Talent.Talent.

Our MissionTo develop and manage To develop and manage

talent;talent;to apply that talent,to apply that talent,

throughout the world, throughout the world, for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.WPP

… … no less than no less than CathedralsCathedrals in which the full and in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant LeadersOur goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]colleagues] are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!*people!**Limited Brands founder Les Wexner queried on astounding *Limited Brands founder Les Wexner queried on astounding

long-term success—said, in effect, it happened because he gotlong-term success—said, in effect, it happened because he got as excited about developing people as he had been about as excited about developing people as he had been about

predicting fashion trends in his early yearspredicting fashion trends in his early years

““The leaders of Great The leaders of Great Groups … Groups … lovelove talent talent … and know where to find … and know where to find it. They … it. They … revelrevel inin ……

the talent of the talent of others.”others.” —Warren Bennis & Patricia Ward —Warren Bennis & Patricia Ward

Biederman, Biederman, Organizing GeniusOrganizing Genius

Three Three People!People!

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … threethree ppeoeopplele … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. heading in the next 12 months. Please explain … in painstakingPlease explain … in painstaking

detail … your development strategy in each case. detail … your development strategy in each case. Please tell me Please tell me your biggest development disappointment—looking back, could you your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five your greatest development triumph—and disaster—in the last five

years. What are the ‘three big things’ you’ve learned about helping years. What are the ‘three big things’ you’ve learned about helping people grow along the way?”people grow along the way?”

Promotion DecisionsPromotion Decisions

“life and “life and death death

decisions”decisions”Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management

2/year 2/year = =

legacy.legacy.

53 = 53 = 5353

People are People are notnot “Standardized.” “Standardized.” Their evaluations Their evaluations

should should notnot be be standardized. standardized.

EverEver..

Standardized Evaluations?Standardized Evaluations?

Sports?*Sports?*Arts?*Arts?*

*“Pure” talent-driven enterprises*“Pure” talent-driven enterprises

Evaluating people Evaluating people = #1 differentiator= #1 differentiator

Source: Jack Welch/Jeff Immelt on GE’s Source: Jack Welch/Jeff Immelt on GE’s #1#1

strategic skill (strategic skill (!!!!!!!!))

““The key difference between checkers and The key difference between checkers and chess is that in checkers the pieces all move chess is that in checkers the pieces all move

the same way, whereas in chess all the pieces the same way, whereas in chess all the pieces

move differently. …move differently. … Discover what Discover what is unique about each is unique about each person and capitalize person and capitalize

on iton it.”.” —Marcus Buckingham, —Marcus Buckingham, The One Thing You Need to The One Thing You Need to KnowKnow

70 70 centscents

““Development can help great Development can help great

people be even better—people be even better—but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership and Development, Paul Russell, Director, Leadership and Development,

GoogleGoogle

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business and yet remainsand yet remains woefully woefully

misunderstoodmisunderstood..””

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,

Geoff Smart and Randy StreetGeoff Smart and Randy Street

1515%%

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

1515%%

2X2X

Source: Container Store/Goal: increase average sale per shopperSource: Container Store/Goal: increase average sale per shopper

The Sky Is The Sky Is the Limit! the Limit!

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

Meanwhile in Meanwhile in Rochester NY Rochester NY and Sao Paulo and Sao Paulo

Brazil …Brazil …

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

WegmansWegmans

..

4 4 Words!Words!

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

organization are …organization are …

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

are …are … “What “What do do youyou think?”think?”

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

8 Words8 Words12 Words12 Words

Change the World With EIGHT WordsChange the World With EIGHT Words

What do you think?*What do you think?*How can I help?**How can I help?**

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

Change the WorldChange the World With TWELVE Words With TWELVE Words

What do you think?*What do you think?*How can I help?**How can I help?**

What have you learned?What have you learned?******

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

***What [new thing] have you learned [in the last 24 hours]? ***What [new thing] have you learned [in the last 24 hours]? ********************* * ********************* *

HelpingHelping

Some Help With Helping …Some Help With Helping …Help works when the recipient subsequently feelsHelp works when the recipient subsequently feels

smarter—not dumber.smarter—not dumber.

Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.Help poorly conveyed spawns powerlessnessHelp poorly conveyed spawns powerlessness

and resentment in recipient.and resentment in recipient.Helping requires a sniper's rifle or surgeon'sHelping requires a sniper's rifle or surgeon's

scalpel—not a shotgun or machete.scalpel—not a shotgun or machete.Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at

home.home.

Effectively "helping" mayEffectively "helping" may be the most difficult be the most difficult leadership task of all!leadership task of all!

"Help" is only truly successful when the recipient"Help" is only truly successful when the recipient says, and believes: "I did it myself!"says, and believes: "I did it myself!"

Near truism: Nobody wants help. But we wouldNear truism: Nobody wants help. But we would all liked to have received help.all liked to have received help.

Guitarist Robert Fripp: Guitarist Robert Fripp: "Don't be helpful. Be available. "Don't be helpful. Be available. Helpful people are a nuisance."Helpful people are a nuisance."

New day.New day.New New

Game.Game.

““Things don’t stay the same. You Things don’t stay the same. You have to understand that not only have to understand that not only your business situation changes, your business situation changes,

but the people you’re working with but the people you’re working with aren’t the same day to day. aren’t the same day to day.

Someone is sick. Someone is Someone is sick. Someone is having a wedding. having a wedding. You must You must ggauaugge e the mood, the thinkinthe mood, the thinkingg level of the level of the

team that dateam that day.”y.” —Coach K [Krzyzewski]—Coach K [Krzyzewski]

230 workdays 230 workdays == 230 230

“rosters”“rosters”

The Memories The Memories That That MatterMatter..

The Memories That MatterThe Memories That Matter

The people you developed who went on toThe people you developed who went on to stellar accomplishments inside or outsidestellar accomplishments inside or outside the company.the company. The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The long shots (people with “a certain something”) you bet on whoThe long shots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.The people of all stripes who 2/5/10/20 yearsThe people of all stripes who 2/5/10/20 years later say later say “You made a difference in my “You made a difference in my life,”life,” “ “Your belief in me changed everything.”Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”

The Memories That MatterThe Memories That Matter

Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”A frighteningly consistent record of having A frighteningly consistent record of having invariably said, invariably said, “Go for it!”“Go for it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.

Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances.… regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)

The Memories That MatterThe Memories That Matter

Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.

The Memories That MatterThe Memories That Matter

An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.A Mandela-like “naïve” belief that others willA Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity.rise to the occasion if given the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”Humility in the face of others, at every level, Humility in the face of others, at every level, who know more than you about “the waywho know more than you about “the way things really are.”things really are.”Bit your tongue on a thousand occasions—and Bit your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)

The Memories That MatterThe Memories That Matter

Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.Always and relentlessly put at the top of your list/any Always and relentlessly put at the top of your list/any list being first and foremost list being first and foremost “of service”“of service” to your to your internal and external constituents. internal and external constituents. (Employees/Peers/(Employees/Peers/ Customers/Vendors/Community.)Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)

The Memories That MatterThe Memories That Matter

Created the sort of workplaces you’d like your kids toCreated the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want inhabit. (Explicitly conscious of this “Would I want mymy kids to work here?” litmus test.)kids to work here?” litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.A self- and relentlessly enforced group standard of A self- and relentlessly enforced group standard of “ “EXCELLENCE-in-all-we-do”/“EXCELLENCE in ourEXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.”behavior toward one another.”

A 15-PointA 15-Point Human Capital Human Capital

Asset Asset Development Development

ManifestoManifestoTom Peters/0615.12Tom Peters/0615.12

Q3 2011/BLSQ3 2011/BLS

++3.13.1//Non-farm productivity growthNon-farm productivity growth+3.8/+3.8/Non-farm outputNon-farm output+0.6/+0.6/Non-farm hours workedNon-farm hours worked

++5.45.4//Manufacturing productivityManufacturing productivity+4.7/+4.7/Manufacturing outputManufacturing output-0.6//Manufacturing hours workedManufacturing hours worked

Source: Bureau of Labor Statistics/03 November 2011Source: Bureau of Labor Statistics/03 November 2011

““A bureaucrat is A bureaucrat is an expensive an expensive microchip.”microchip.”

——Dan Sullivan, consultant and executive coachDan Sullivan, consultant and executive coach

GGeneticsenetics

NNanotechnologyanotechnology

RRoboticsobotics

Or:Or: GRIN/ GRIN/ Genetics, Robotics, Information technology,Genetics, Robotics, Information technology, NanotechnologyNanotechnology Or:Or: NBIC/ NBIC/ Nanotechnology, Biotechnology, InformationNanotechnology, Biotechnology, Information technology, Cognitive sciencetechnology, Cognitive science

A 15-Point Human Capital Development A 15-Point Human Capital Development ManifestoManifesto

1. 1. “Corporate social responsibility” starts at “Corporate social responsibility” starts at home—i.e., inside the enterprise!home—i.e., inside the enterprise! MAXIMIZING MAXIMIZING GDD/Gross Domestic Development of the GDD/Gross Domestic Development of the workforce is the primary source of mid-term and workforce is the primary source of mid-term and beyond growth and profitability—and maximizes beyond growth and profitability—and maximizes national productivity and wealth. (Re national productivity and wealth. (Re profitability: profitability: If you want to serve the customer If you want to serve the customer with uniform Excellence, then you must FIRST with uniform Excellence, then you must FIRST effectiveleffectivelyy and faithfull and faithfullyy serve those who serve serve those who serve the customer—i.e. our emplothe customer—i.e. our employyees, via ees, via maximizinmaximizingg tools and tools and pprofessional rofessional develodeveloppmentment.).)

2. 2. Regardless of the transient external Regardless of the transient external situation, development of “human capital” is situation, development of “human capital” is always the #1 priority.always the #1 priority. This is true in general, in This is true in general, in particular in difficult times which demand particular in difficult times which demand resilience—and uniquely true in this age in resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage only plausible survival strategy for higher wage nations. (nations. (Generic “brainwork,” traditional and Generic “brainwork,” traditional and dominant “white-collar activities, is increasindominant “white-collar activities, is increasingglly y bbeineingg pperformed berformed byy exponentiall exponentiallyy enhanced enhanced artificial intelliartificial intelliggenceence.).)

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

4. 4. Proposition/axiom: The CTO/Chief TRAINING Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO enterprise, at least on a par with, say, the CFO or CIO or head of R&D.or CIO or head of R&D. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get you picture taken next to a hew machine. get you picture taken next to a hew machine. But how do you get a photo of a new and much But how do you get a photo of a new and much improved attitude in a key distribution center? improved attitude in a key distribution center? But the odds are 25:1 that the new attitude But the odds are 25:1 that the new attitude will add more to the bottom line than will the will add more to the bottom line than will the glorious state-of-the-art machine. glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

7. 7. Every individual on the payroll should have Every individual on the payroll should have a benchmarked professional growth strategy.a benchmarked professional growth strategy. Every leader at every level should be evaluated Every leader at every level should be evaluated in no small measure on the collective in no small measure on the collective effectiveness of individual growth strategies—effectiveness of individual growth strategies—that is, each individual’s absolute growth is of that is, each individual’s absolute growth is of direct relevance to every leader’s assessed direct relevance to every leader’s assessed performance. performance.

““Knowledge becomes Knowledge becomes obsolete incredibly fast. obsolete incredibly fast.

The continuing The continuing professional educationprofessional education of adults is the No. 1 of adults is the No. 1

industry in the next 30 industry in the next 30 years.”years.” —Peter Drucker —Peter Drucker

8. 8. Given that we ceaselessly lament the Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just “leadership deficit,” it is imperative, and just plain vanilla common sense, that we maximize plain vanilla common sense, that we maximize the rate of development of women leaders at the rate of development of women leaders at every level—little if anything has a higher every level—little if anything has a higher priority.priority. (It is an outrage that this has not been (It is an outrage that this has not been the case until now—and is still not the case in the case until now—and is still not the case in far too many institutions.) (And, while there far too many institutions.) (And, while there are no guarantees, women are more likely are no guarantees, women are more likely dispositionally to take a shine to the dispositionally to take a shine to the imperative of maximizing human asset imperative of maximizing human asset development.)development.)

9. 9. Maximum utilization of and continued Maximum utilization of and continued development of “older workers” (to age 70—development of “older workers” (to age 70—or even beyond?) is a source of immense or even beyond?) is a source of immense organizational and national growth and organizational and national growth and wealth.wealth. The rapidly aging population, with The rapidly aging population, with oldies far more healthy and vital than ever, oldies far more healthy and vital than ever, Ought to be an opportunity rather than a pain-Ought to be an opportunity rather than a pain-in-the-butt to deal with.in-the-butt to deal with.

10. 10. The practical key to all human asset The practical key to all human asset development activities is the 1st-line development activities is the 1st-line manager.manager. (“Sergeants run the Army” is an (“Sergeants run the Army” is an accurate commonplace. observation—accurate commonplace. observation—supported by development resources.) Hence supported by development resources.) Hence development of the full cadre of 1st-line development of the full cadre of 1st-line managers is an urgent—and invariably managers is an urgent—and invariably underplayed—strategic imperative. Arguably, underplayed—strategic imperative. Arguably, the collective quality and development the collective quality and development trajectory of 1st-line leaders is an trajectory of 1st-line leaders is an organization’s #1 human asset development organization’s #1 human asset development priority. (Consistent with all the above, the priority. (Consistent with all the above, the 1st-line leader’s skill at “people 1st-line leader’s skill at “people development” is her or his top priority—for development” is her or his top priority—for which she or he must be rigorously and which she or he must be rigorously and continually trained.)continually trained.)

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.

““Human creativity Human creativity is the ultimate is the ultimate

economic economic resource.”resource.” —Richard Florida—Richard Florida

12. 12. Associated with the accelerated priority of Associated with the accelerated priority of the national education infrastructure is a the national education infrastructure is a dramatically enhanced and appreciated and dramatically enhanced and appreciated and compensated role for our teachers—this must compensated role for our teachers—this must necessarily be accompanied by rigorous necessarily be accompanied by rigorous accountability.accountability. There is no doubt that There is no doubt that “teaching” (instilling) insatiable curiosity, say, “teaching” (instilling) insatiable curiosity, say, which is the #1 attribute of a creative person, which is the #1 attribute of a creative person, is no easy task; however, there is no way that is no easy task; however, there is no way that it can be ducked if one looks at future it can be ducked if one looks at future definitions of employability. definitions of employability.

““Every child is Every child is born an artist. The born an artist. The trick is to remain trick is to remain

an artist.”an artist.” —Picasso —Picasso

13. 13. The great majority of us work in small The great majority of us work in small enterprises; hence national growth enterprises; hence national growth objectives based upon human capital objectives based upon human capital development MUST necessarily extend development MUST necessarily extend “downward” to even 1-person enterprises.“downward” to even 1-person enterprises. Collective productivity improvement through Collective productivity improvement through human capital development among small human capital development among small businesses has an unimaginably large—and businesses has an unimaginably large—and underappreciated—payoff. While many small underappreciated—payoff. While many small business appreciate the notion, they are business appreciate the notion, they are unprepared to take the steps necessary to unprepared to take the steps necessary to engage their, say, dozen employees in engage their, say, dozen employees in seeking productivity improvements.seeking productivity improvements.

14. 14. Needless to say, the activities imagined Needless to say, the activities imagined here will only be possible if abetted by a here will only be possible if abetted by a peerless National Information and peerless National Information and Communication Infrastructure.Communication Infrastructure. Indeed, the Indeed, the work here is being done—and the need is work here is being done—and the need is appreciated and reasonably well funded. The appreciated and reasonably well funded. The effort must not falter; the new information-effort must not falter; the new information-based tools are the coin of the realm.based tools are the coin of the realm.

15. 15. Associated with the above is a RADICAL Associated with the above is a RADICAL reorientation of leadership education and reorientation of leadership education and development—throughout the development—throughout the enterprise/education/continuing education enterprise/education/continuing education infrastructure.infrastructure. (E.g., Among other things, the (E.g., Among other things, the MBA and executive education will require MBA and executive education will require open-heart surgery—aimed at shifting focus open-heart surgery—aimed at shifting focus from finance and marketing to human from finance and marketing to human resource development. ) To deal with the resource development. ) To deal with the most likely future employment scenarios, most likely future employment scenarios, leaders will need to be masters of the liberal leaders will need to be masters of the liberal arts—said arts are, again, the determinant of arts—said arts are, again, the determinant of responding to the emerging world.responding to the emerging world.

Blame nobody.Blame nobody.Expect nothing.Expect nothing.Do something.Do something.

Globalization1.0: Globalization1.0: Countries Countries globalizing globalizing (1492-1800)(1492-1800)Globalization2.0: Globalization2.0: Companies Companies globalizing globalizing (1800-(1800-2000)2000)

Globalization3.0 Globalization3.0 (2000+)(2000+): : IndividualsIndividuals collaboratingcollaborating & competing globally & competing globallySource: Tom Friedman/Source: Tom Friedman/The World Is FlatThe World Is Flat

““If there is nothing If there is nothing very special about very special about

your work your work …… no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and

that increasingly means you that increasingly means you won’t get paid much either.”won’t get paid much either.”

—Michael Goldhaber, —Michael Goldhaber, WiredWired

The Brand You50: Fifty Ways to Transform The Brand You50: Fifty Ways to Transform Yourself Yourself

from an “Employee” into a Brand That Shouts from an “Employee” into a Brand That Shouts Distinction, Commitment, and PassionDistinction, Commitment, and Passion!

"The illiterate of the "The illiterate of the 21st Century will not 21st Century will not be those who cannot be those who cannot

read or write, read or write, but but those who cannot those who cannot learn, unlearn and learn, unlearn and

relearnrelearn."." —Alvin Toffler—Alvin Toffler

Part Part SIXSIX

LeadinLeadingg

MBWMBWAA

2255

““I’m always stopping by our I’m always stopping by our

stores— stores— at least 25 at least 25 a weeka week. I’m also in other . I’m also in other places: Home Depot, Whole Foods, places: Home Depot, Whole Foods,

Crate & Barrel. … I try to beCrate & Barrel. … I try to be a sponge to pick up as much a sponge to pick up as much

as I can.as I can. … …”” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

You = Your You = Your calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar Your calendar knowsknows PreciselyPrecisely

what youwhat youreally care about.really care about.

DoDo youyou????????

Don’t > Don’t > Do*Do*

* “Don’ting” must be systematic > * “Don’ting” must be systematic > WILLPOWERWILLPOWER

““The The oneone thingthing you you need to know about need to know about sustained individual sustained individual

success: Discover what success: Discover what you don’t like doing you don’t like doing

and and stopstop doing doing it.”it.”

—Marcus Buckingham, The One Thing You Need to Know

““If there is any If there is any oneone ‘secret’ ‘secret’ to effectiveness, it is to effectiveness, it is

concentration. Effective concentration. Effective executives do first things first executives do first things first

… … and theand theyy do do one thinone thingg at a at a

timetime.”.” —Peter Drucker—Peter Drucker

50%.50%.UnUn--scheduled.scheduled.

““Most managers spend a great deal of time thinking about what they plan to Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a do, but relatively little time thinking about what they plan not to do. As a

result, they become so caught up … in fighting the fires of the moment that result, they become so caught up … in fighting the fires of the moment that they cannot really attend to the long-term threats and risks facing the they cannot really attend to the long-term threats and risks facing the

organization. So the first soft skill of leadership the hard way is to cultivate the organization. So the first soft skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused

on what really matters.on what really matters. Let me Let me pput it bluntlut it bluntlyy: ever: everyy leader should routinelleader should routinelyy kee keepp a substantial a substantial pportion of his or her timeortion of his or her time——I would saI would sayy as as

much as 50 much as 50 ppercentercent——unscheduledunscheduled.. … Only when you … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the have substantial ‘slop’ in your schedule—unscheduled time—will you have the

space to reflect on what you are doing, learn from experience, and recover space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ typical issues only when there is an immediate or visible problem. Managers’ typical

response to my argument about free time is, ‘That’s all well and good, but response to my argument about free time is, ‘That’s all well and good, but

there are things I have to do.’there are things I have to do.’ Yet we waste so much time Yet we waste so much time in unin unpproductive activitroductive activity—y—it takes an enormous it takes an enormous

effort on the effort on the ppart of the leader to keeart of the leader to keepp free free time for the trultime for the trulyy im impportant thinortant thinggss.”.” —Dov Frohman —Dov Frohman (& Robert Howard(& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught), Leadership The Hard Way: Why Leadership Can’t Be Taught

—And How You—And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”) Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

““The Discipline Of Daydreaming”:The Discipline Of Daydreaming”: “Nearly every major decision of “Nearly every major decision of my business career was, to some degree, the result of daydreaming. my business career was, to some degree, the result of daydreaming. … To be sure, in every case I had to collect a lot of data, do detailed … To be sure, in every case I had to collect a lot of data, do detailed analysis, and make a data-based argument to convince superiors, analysis, and make a data-based argument to convince superiors,

colleagues and business partners. But that all came later. colleagues and business partners. But that all came later. In In the bethe begginnininningg, there was the , there was the

dadayydreamdream.. By daydreaming, I mean loose, unstructured By daydreaming, I mean loose, unstructured thinking with no particular goal in mind. … In fact, I think thinking with no particular goal in mind. … In fact, I think

daydreaming is a distinctive mode of cognition especially well suited daydreaming is a distinctive mode of cognition especially well suited to the complex, ‘fuzzy’ problems that characterize a more turbulent to the complex, ‘fuzzy’ problems that characterize a more turbulent business environment. … Daydreaming is an effective way of coping business environment. … Daydreaming is an effective way of coping with complexity. When a problem has a high degree of complexity, with complexity. When a problem has a high degree of complexity,

the level of detail can be overwhelming. The more one focuses on the the level of detail can be overwhelming. The more one focuses on the details, the more one risks being lost in them. … Every child knows details, the more one risks being lost in them. … Every child knows

how to daydream. But many, perhaps most, lose the capacity as they how to daydream. But many, perhaps most, lose the capacity as they grow up. …”grow up. …” —Dov Frohman (& Robert Howard),—Dov Frohman (& Robert Howard), Leadership The Hard Way: Leadership The Hard Way:

Why Leadership Can’t Be Taught—And How You Can Learn It Anyway Why Leadership Can’t Be Taught—And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”) (Chapter 5, “The Soft Skills Of Hard Leadership”)

““It’s It’s alwaalwayyss showtime.”showtime.”

—

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

““The leader must have The leader must have infectious optimism. … infectious optimism. …

The final test of a leader The final test of a leader is the feeling you have is the feeling you have

when you leave his when you leave his presence after a presence after a

conference. Have you a conference. Have you a feeling of uplift and feeling of uplift and

confidence?”confidence?” —Field Marshall Bernard Montgomery—Field Marshall Bernard Montgomery

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon—Napoleon

Me first!Me first!

““Being aware of Being aware of yourself yourself and how and how yyou ou

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.” —Edie Seashore (—Edie Seashore (Strategy + Strategy +

BusinessBusiness #45) #45)

““To develop To develop others, start with others, start with yourself.”yourself.” —Marshall Goldsmith—Marshall Goldsmith

““How can a high-level How can a high-level leader like _____ be so out of leader like _____ be so out of touch with the truth about touch with the truth about himself? It’s more common himself? It’s more common than you would imagine. than you would imagine. In fact, the higher up the ladder a leader

climbs, the less accurate his self-

assessment is likely to be. The problem is an The problem is an

acute lack of feedback acute lack of feedback [especially on people [especially on people

issues].”issues].” —Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

"Everyone thinks "Everyone thinks of changing the of changing the

world, but no one world, but no one thinks of thinks of

changing himself" changing himself" - Leo Tolstoy- Leo Tolstoy

The “Have The “Have you …” 50you …” 50

““Mapping your Mapping your competitive competitive position”position”

or …or …

1. Have you in the1. Have you in the last 10 days … last 10 days … visitedvisited a customer? a customer?2. Have you called a2. Have you called a customer … customer … TODAYTODAY ??

1. 1. Have you … in the last 10 days … visited a Have you … in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?various of your folks?

4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three small act of helpfulness … in the last three days?days?5. Have you thanked a front-line employee for a small act of helpfulness … 5. Have you thanked a front-line employee for a small act of helpfulness … in the in the last three last three hourshours??6. Have you thanked a front-line employee for carrying around a great 6. Have you thanked a front-line employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-cross-functional co-operationfunctional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team priorities to your weekly team priorities meeting?meeting?10. Have you personally in the last week-month called-visited an internal or external customer to 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)so? If true—in your mind—then you’re more out of touch than I dared imagine.)

11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically concerning a project’s next steps … and what specifically you can do to remove a hurdleyou can do to remove a hurdle? (“Ninety percent of ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a milestone reached? (I.e., are you a milestone fanatic?)fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly a lousy estimate? (Somehow you must publicly reward the telling of difficult truthsreward the telling of difficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers?customers? (With major consequences for hitting or missing (With major consequences for hitting or missing the mark.)the mark.)

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next the next fourteen daysfourteen days??

21. Have you had in the last year a one-day, intense offsite with each (?) of your 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”?internal customers—followed by a big celebration of “things gone right”?22. Have you in the last week pushed someone to do some family thing that you fear 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?industry, that you ran across in a meeting, reading, etc?27. Have you in the last 24 hours injected into a meeting “I ran across this interesting 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)

29. 29. Have you … in the last 30 days … examined Have you … in the last 30 days … examined in detail (hour by hour) your calendar to evaluate the in detail (hour by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused degree “time actually spent” mirrors your “espoused priorities”? priorities”? (And repeated this exercise with everyone on (And repeated this exercise with everyone on team.)team.)30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours”? (And then discussion on “action items to be dealt with in the next 4, 48 hours”? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)least one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you … in the last month … Have you … in the last month … tautaugghtht a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?

43. 43. Have you … in the Have you … in the last three days …last three days … considered a considered a professional relationship that was a little rocky and professional relationship that was a little rocky and made a call to the person involved to discuss issues made a call to the person involved to discuss issues and smooth the waters? (Taking the “blame,” fully and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)deserved or not, for letting the thing-issue fester.)44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

The Recession 44:The Recession 44:Forty-four “Secrets” Forty-four “Secrets”

and “clever Strategies” and “clever Strategies” For dealing For dealing

Progressively with the Progressively with the Great Recession of Great Recession of

2007++2007++

No peacetime generals No peacetime generals in the history books: in the history books: You You

will be measured by will be measured by what you accomplish what you accomplish

during tough times. (during tough times. (AndAnd remembered by remembered by howhow

you accomplished it.)you accomplished it.)

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2007++Dealing with the Recession of 2007++

You come in earlier.You come in earlier.You leave later.You leave later.You work harder.You work harder.You may well work for less; and, if so, youYou may well work for less; and, if so, you adapt to the untoward circumstances with a adapt to the untoward circumstances with a smile—even if it kills you inside.smile—even if it kills you inside.You volunteer to do more.You volunteer to do more.You dig deep and always bring a good attitudeYou dig deep and always bring a good attitude to work.to work.You fake it if your good attitude flags.You fake it if your good attitude flags.You literally practice your "game face" in theYou literally practice your "game face" in the mirror in the morning, and in the loo mirror in the morning, and in the loo mid-morning.mid-morning.You give new meaning to the idea and You give new meaning to the idea and intensive intensive practice of “visible management.”practice of “visible management.”

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You take better than usual care of yourself andYou take better than usual care of yourself and encourage others to do the same—physicalencourage others to do the same—physical well-being determines mental well-being andwell-being determines mental well-being and response to stress.response to stress.You shrug off shit that flows downhill in your You shrug off shit that flows downhill in your direction—buy a shovel or a “pre-worn” direction—buy a shovel or a “pre-worn” raincoat on eBay.raincoat on eBay.You try to forget about “the good old days”—You try to forget about “the good old days”— nostalgia is self-destructive.nostalgia is self-destructive.You buck yourself up with the thought that You buck yourself up with the thought that “ “this too shall pass”—but then remind this too shall pass”—but then remind yourselfyourself that it might not pass any time soon, and so that it might not pass any time soon, and so you re-dedicate yourself to making the you re-dedicate yourself to making the absolute best of what you have now.absolute best of what you have now.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You work the phones and then work theYou work the phones and then work the phones some more—and stay in touch withphones some more—and stay in touch with positively everyone.positively everyone.You frequently invent breaks from routine,You frequently invent breaks from routine, including “weird” ones—“changeups” preventincluding “weird” ones—“changeups” prevent wallowing and bring a fresh perspective. wallowing and bring a fresh perspective. You eschew all forms of personal excess.You eschew all forms of personal excess.You simplify.You simplify.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You raise to the sky and maintain at allYou raise to the sky and maintain at all costs the Standards of Excellence by whichcosts the Standards of Excellence by which you unfailingly evaluate your own you unfailingly evaluate your own performance.performance.You are maniacal when it comes to respondingYou are maniacal when it comes to responding to even the slightest screw-up.to even the slightest screw-up.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You find ways to be around young people andYou find ways to be around young people and to keep young people around—they are lessto keep young people around—they are less likely to be members of the “sky is falling” likely to be members of the “sky is falling” school.school.You learn new tricks of your trade.You learn new tricks of your trade.You remind yourself that this is not justYou remind yourself that this is not just something to be “gotten through”—it is thesomething to be “gotten through”—it is the Final Exam of character.Final Exam of character.You network like a demon.You network like a demon.You network inside the company—get to knowYou network inside the company—get to know more of the folks who “do the real work.”more of the folks who “do the real work.”You network outside the company—get toYou network outside the company—get to know more of the folks who “do the realknow more of the folks who “do the real work” in vendor-customer outfits.work” in vendor-customer outfits.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You thank others by the truckload if goodYou thank others by the truckload if good things happen—and take the heat yourself things happen—and take the heat yourself if if bad things happen.bad things happen.You behave kindly, but you don't sugarcoat You behave kindly, but you don't sugarcoat oror hide the truth--humans are startlingly hide the truth--humans are startlingly resilient and rumors are the real killers.resilient and rumors are the real killers.You treat small successes as if they wereYou treat small successes as if they were Super Bowl victories—and celebrate andSuper Bowl victories—and celebrate and commend accordingly.commend accordingly.You shrug off the losses (ignoring what's You shrug off the losses (ignoring what's goinggoing on in your tummy), and get back on theon in your tummy), and get back on the horse and immediately try again.horse and immediately try again.You avoid negative people to the extent youYou avoid negative people to the extent you can—pollution kills.can—pollution kills.You eventually read the gloom-sprayers theYou eventually read the gloom-sprayers the riot act. riot act. 

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You give new meaning to the word "thoughtful.“You give new meaning to the word "thoughtful.“You don’t put limits on the flowers budget—You don’t put limits on the flowers budget— “ “bright and colorful” works marvels.bright and colorful” works marvels.You redouble, re-triple your efforts to "walk inYou redouble, re-triple your efforts to "walk in your customer's shoes." (Especially if theyour customer's shoes." (Especially if the shoes smell.)shoes smell.)You mind your manners—and accept others’You mind your manners—and accept others’ lack of manners in the face of their strains.lack of manners in the face of their strains.You are kind to all mankind.You are kind to all mankind.You keep your shoes shined.You keep your shoes shined.You leave the blame game at the office door.You leave the blame game at the office door.You call out the congenital politicians in noYou call out the congenital politicians in no uncertain terms.uncertain terms.You become a paragon of personal You become a paragon of personal accountability.accountability.And then you pray.And then you pray.

K = R = PK = R = P

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 patient’s health referred to patient’s health outcomeoutcome..

Instead:Instead: directldirectly related to y related to StaffStaff Interaction;Interaction; directldirectly correlated with y correlated with

EmploEmployyee Satisfactionee Satisfaction

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

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

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

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

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to

their needs or limiting their sense of control—can be very costly. … their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn Angry, frustrated or frightened patients may be combative, withdrawn

and less cooperative—requiring farand less cooperative—requiring far more time than it would have taken to interact with them initially in a more time than it would have taken to interact with them initially in a

positive way.”positive way.” Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick , Susan Frampton, Laura Gilpin, Patrick

CharmelCharmel (Griffin Hospital/Derby CT; Plantree Alliance) (Griffin Hospital/Derby CT; Plantree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

K = R = P/Kindness = Repeat business = ProfitK = R = P/Kindness = Repeat business = ProfitKindness:Kindness:Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screw-ups.Apologizes with dispatch for screw-ups.““Over”-reacts to screw-ups of any magnitude.Over”-reacts to screw-ups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

““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,American Statesman (1777-1852)

"Let's not forget "Let's not forget that small that small

emotions are the emotions are the great captains of great captains of our lives."our lives." –—Van Gogh–—Van Gogh

Acknowledgement/Acknowledgement/Appreciation/Appreciation/““Thank you!”Thank you!”

““The deepest principal The deepest principal in human nature is the in human nature is the

cravingcraving* to be * to be appreciated.”appreciated.”

—William James—William James

**“Craving,” not “wish” or “desire” or “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, “longing”/Dale Carnegie, How to WinHow to Win

Friends and Influence People Friends and Influence People (“The BIG(“The BIG Secret of Dealing With People”) Secret of Dealing With People”)

““The deepest urgeThe deepest urge in human nature in human nature

is the desire to be is the desire to be important.”important.” —John Dewey—John Dewey

(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence People How to Win Friends and Influence People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

““AcknowledAcknowledggee” … ” … perhaps the most perhaps the most

powerful word (and powerful word (and idea) in the English idea) in the English

language—and language—and manager’s tool kit!manager’s tool kit!

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

centercenterppieceiece of my of my work with executives who work with executives who

want to get better.”want to get better.” ——Marshall GoldsmithMarshall Goldsmith, What Got You Here Won’t Get You There: , What Got You Here Won’t Get You There:

How Successful People Become Even More Successful. How Successful People Become Even More Successful.

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.***divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. 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!

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower apologies … Toro, the lawn mower folks, reduced the average cost of folks, reduced the average cost of

settling a claim fromsettling a claim from $$115,000115,000 in in

1991 to1991 to $$35,00035,000 in 2008 in 2008 …… and and the companthe companyy hasn’t hasn’t been to trial in the been to trial in the

lastlast1515 y yearsears!!

Part Part SEVENSEVEN

Excellence/Excellence/Aspiration/Aspiration/

ServiceServiceImmoderationImmoderation

1982-2012:1982-2012:EXCELLENCE 30EXCELLENCE 30

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.

EXCELLENCE is EXCELLENCE is notnot an "aspiration.”an "aspiration.”

EXCELLENCE EXCELLENCE isis … … THE NEXT FIVE THE NEXT FIVE

MINUTES.MINUTES.

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.Or not.EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think.think.Or not.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.Or not.

EXCELLENCEXCELLENCEE is … is … THE THE NEXTNEXT FIVE FIVE MINUTESMINUTES..

Or not.Or not.

2007 2007 Novosibirsk:Novosibirsk:AspirationAspiration

EnterpriseEnterprise* (*at its best):* (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.**

**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

2007 Sydney:2007 Sydney:ServiceService

Organizations Organizations existexist to to serveserve. Period.. Period.Leaders Leaders live live toto serveserve. Period.. Period.

… … no less than no less than CathedralsCathedrals in which the full and in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

7 Steps to Sustaining Success7 Steps to Sustaining SuccessYou take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

7 Steps to Sustaining Success: And it starts with …7 Steps to Sustaining Success: And it starts with …

YouYou take take care of the care of the people. people.

ImmoderationImmoderation

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

Part Part EightEight

Top Top 2020

Top TwentyTop Twenty

**Just one “secret” to innovation: It’s a messy world. **Just one “secret” to innovation: It’s a messy world. We’re always operating half informed. Hence, “try more We’re always operating half informed. Hence, “try more stuff than the other guy” and sort it out as you go stuff than the other guy” and sort it out as you go forward is best way to up success odds. (“Ready. Fire. forward is best way to up success odds. (“Ready. Fire. Aim.”—Ross Perot)Aim.”—Ross Perot)**Paradox: Superb quality is an absolute necessity, and **Paradox: Superb quality is an absolute necessity, and it requires superb systems; but superb quality with the it requires superb systems; but superb quality with the wrong product flunks. Hence one needs to be organized wrong product flunks. Hence one needs to be organized (quality) and disorganized (innovation) at the same (quality) and disorganized (innovation) at the same time. (Axiom: Management is art, not science.)time. (Axiom: Management is art, not science.)**Waste #1: “Great branding”/marketing can not **Waste #1: “Great branding”/marketing can not overcome a lousy product—it is largely wasted. The overcome a lousy product—it is largely wasted. The product (innovative, attractive, of the highest quality) product (innovative, attractive, of the highest quality) comes first—though excellence in product comes first—though excellence in product and and marketing is indubitably required to achieve a marketing is indubitably required to achieve a smashing success.smashing success.

Top TwentyTop Twenty

**Everywhere: “Excellence” in quality and design is not **Everywhere: “Excellence” in quality and design is not restricted to the “high end.” Both characteristics can restricted to the “high end.” Both characteristics can be imbedded in lower-end products and services.be imbedded in lower-end products and services.**Iron law: All organizations get worse as they become **Iron law: All organizations get worse as they become more and more enormous. No cultural differences.more and more enormous. No cultural differences.**Iron law: Over the long haul, national success is **Iron law: Over the long haul, national success is largely built upon SMEs, with growth and innovation largely built upon SMEs, with growth and innovation associated largely with a large population of vibrant associated largely with a large population of vibrant midsized enterprises—Germany’s “Mittelstand” is midsized enterprises—Germany’s “Mittelstand” is exhibit #1. exhibit #1. **Paradox: Hierarchy is dead. Long live hierarchy. New **Paradox: Hierarchy is dead. Long live hierarchy. New market requirements and new tools can dramatically market requirements and new tools can dramatically reduce hierarchy. Still, I don’t want to drive across a reduce hierarchy. Still, I don’t want to drive across a bridge that didn’t have a “command and control” bridge that didn’t have a “command and control” structure to sign off on safety.structure to sign off on safety.

Top TwentyTop Twenty

**But: Hierarchy is often necessary—but relentless hot **But: Hierarchy is often necessary—but relentless hot war must be declared on bureaucracy “24/7.” war must be declared on bureaucracy “24/7.” **“New marketing techniques”: The newest marketing **“New marketing techniques”: The newest marketing technique is the oldest marketing technique but technique is the oldest marketing technique but remains “new” because it is seldom practiced with remains “new” because it is seldom practiced with requisite intensity. Namely, get the hell out into the requisite intensity. Namely, get the hell out into the market place and listen & listen & listen to customers. market place and listen & listen & listen to customers. Then listen some more.Then listen some more.**Always #1: Any nation’s Olympic team is as good as **Always #1: Any nation’s Olympic team is as good as its athletes. (Duh.) Exactly the same is true with any its athletes. (Duh.) Exactly the same is true with any (as in any!) organization: (as in any!) organization: Investment in and Investment in and development of great people comes first and is the development of great people comes first and is the greatest sustaining differentiator!greatest sustaining differentiator!**Motivator #1: **Motivator #1: Treating people with respect is always Treating people with respect is always the #1 motivational “tool.”the #1 motivational “tool.”

Top TwentyTop Twenty

**Why not business: In the army and in the theater and **Why not business: In the army and in the theater and in sports, training is always Priority #1. Why not in in sports, training is always Priority #1. Why not in business? No organization ever devoted too much effort business? No organization ever devoted too much effort to training!to training!**Success “secret” #1: Work harder/much harder than **Success “secret” #1: Work harder/much harder than the other guy/s. There’s more to it than hard work but the other guy/s. There’s more to it than hard work but hard work is the sine qua non. (Again: Think of the hard work is the sine qua non. (Again: Think of the Olympics.)Olympics.)**Speed’s enabler: The #1 cause of delays is invariably **Speed’s enabler: The #1 cause of delays is invariably lousy cross-functional communication—the product lousy cross-functional communication—the product developers don’t talk to the logistics people who don’t developers don’t talk to the logistics people who don’t talk to the sales people. Etc. Etc. Excellence in cross-talk to the sales people. Etc. Etc. Excellence in cross-functional communication must become a day-to-day functional communication must become a day-to-day top-management obsession. top-management obsession.

Top TwentyTop Twenty

**New context, new leaders: Innovation (and execution) **New context, new leaders: Innovation (and execution) today is a collaborative process. Women are on average today is a collaborative process. Women are on average better leaders than men in collaborative situations. better leaders than men in collaborative situations. Men take to hierarchies—we invented ’em. Women tend Men take to hierarchies—we invented ’em. Women tend to lead more by inclusion rather than coercion.to lead more by inclusion rather than coercion.**Customer #1: In retail and in products designed for **Customer #1: In retail and in products designed for retail, retail, sheshe is the primary consumer. Company is the primary consumer. Company leadership and the product-service portfolio should leadership and the product-service portfolio should mimic, more or less, this fact. (You heard it here 1st: mimic, more or less, this fact. (You heard it here 1st: Men and women are different.)Men and women are different.)**New context, new skills; The Age of Brawn is largely **New context, new skills; The Age of Brawn is largely behind us. Brains and creativity and flexibility have behind us. Brains and creativity and flexibility have come to the fore. Not only are our organizations come to the fore. Not only are our organizations unprepared—but our schools get it more or less exactly unprepared—but our schools get it more or less exactly wrong 100% of the time.wrong 100% of the time.

Top TwentyTop Twenty

**Acceleration: Technological change is accelerating as **Acceleration: Technological change is accelerating as never before. It is not an exaggeration to say that “all never before. It is not an exaggeration to say that “all bets are off;” adaptability and renewal are imperative bets are off;” adaptability and renewal are imperative on a short-cycle unimaginable only 10 or so years ago. on a short-cycle unimaginable only 10 or so years ago. (And we ain’t seen nothin’ yet.)(And we ain’t seen nothin’ yet.)**Mix it up: Company leaders tend to be look alikes. **Mix it up: Company leaders tend to be look alikes. Only (only!) diversity on any dimension you can name Only (only!) diversity on any dimension you can name induces creativity over the long haul—from the induces creativity over the long haul—from the boardroom to the front line.boardroom to the front line.**“Sexy”: Clever strategies and exciting products are **“Sexy”: Clever strategies and exciting products are important, but superb execution invariably carries the important, but superb execution invariably carries the day. Asked his #1 success “secret,” peerless hotelier day. Asked his #1 success “secret,” peerless hotelier Conrad Hilton replied, Conrad Hilton replied, “Don’t forget to tuck the shower “Don’t forget to tuck the shower curtain into the bath tub.”curtain into the bath tub.” Amen! Amen!

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?