LONGLONG

Tom Peters’Tom Peters’

Re-Imagine EXCELLENCERe-Imagine EXCELLENCE

INNOVATEINNOVATE … … or Perishor Perish

Guadalajara/29 October 2014Guadalajara/29 October 2014

(For more see tompeters.com and our fully annotated 23-part Master (For more see tompeters.com and our fully annotated 23-part Master Compendium [Mother of All Presentations] at excellencenow.com)Compendium [Mother of All Presentations] at excellencenow.com)

CONRAD HILTON …CONRAD HILTON …

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his 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.”.”

““EXECUTION EXECUTION ISIS STRATEGY.”STRATEGY.”

—Fred Malek—Fred Malek

““COSTCO FIGURED OUT COSTCO FIGURED OUT

THE THE BIGBIG,, SIMPLESIMPLE THINGS THINGS

AND AND EXECUTEDEXECUTED WITH TOTAL WITH TOTAL

FANATICISMFANATICISM.”.”

—Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

-1/+1/2-1/+1/2

S&P 500S&P 500

+1/-1*+1/-1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

“I am often asked by I am often asked by would-be entrepreneurs would-be entrepreneurs seeking escape from life seeking escape from life within huge corporate within huge corporate structures, structures, ‘How do I build a small firm for myself?’ The answer The answer

seems obviousseems 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: BuBuyy a ver a veryy larlarggee

one and one and jjust ust 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 lonthe 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

THETHE RED RED CARPET CARPET STORESTORE

(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

*Basement Systems Inc. *Basement Systems Inc. (Larry Janesky/Seymour CT)(Larry Janesky/Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)*1990: $0; 2003: $13M; *1990: $0; 2003: $13M;

2010: 2010: $80,000,000$80,000,000

The Magicians of The Magicians of MotuekaMotueka (PLUS) (PLUS)!!

W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)

*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., e.g., U.S. NavyU.S. Navy STLVAST (Small To Large Vehicle At Sea STLVAST (Small To Large Vehicle At Sea

Transfer); custom fabric from Transfer); custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH::

““An adventure in An adventure in ‘shoppertainment,’‘shoppertainment,’ begins in the begins in the

parking lot and goes on to parking lot and goes on to 1,6001,600 cheeses and cheeses and

1,4001,400 varieties of hot sauce—not to mention 12,000 wines varieties of hot sauce—not to mention 12,000 wines

priced from priced from

$8-$$8-$8,0008,000 a bottle; all this is brought to you a bottle; all this is brought to you

by by 4,0004,000 vendors. Customers from every corner of the vendors. Customers from every corner of the

globe.”globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MIBRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP , POP

5,0005,000:: 98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000

Christmas ornaments, Christmas ornaments, 50,00050,000 trims, and anythingtrims, and anything else else

you can name pertaining to Christmas. …”you can name pertaining to Christmas. …”

““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

Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent

““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,

the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground

fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming

pools, and we also happen to build pools, and we also happen to build them.’”them.’”

——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype

Where the +201,000 new private-sectorWhere the +201,000 new private-sector jobs came from … jobs came from …

51% Small firms51% Small firms41% Medium-sized41% Medium-sized**8% Big8% BigSource: ADP National Employment Report/March 2011Source: ADP National Employment Report/March 2011

*E.g., German *E.g., German MITTELSTANDMITTELSTAND

Small (Small (EntrepreneurialEntrepreneurial) BUSINESS:) BUSINESS:

Training Inc.Training Inc. , a 14- , a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my … Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose “Department” Into A Professional Service Firm Whose

Trademarks Are Passion and Innovation.Trademarks Are Passion and Innovation.))

I love …I love … Middle-Middle-sized Niche- sized Niche- Micro-niche Micro-niche

Dominators!Dominators!

"Own" a niche through EXCELLENCE"Own" a niche through EXCELLENCE!!(Writ large: Germany’s (Writ large: Germany’s MITTELSTANDMITTELSTAND: : “agile creatures darting“agile creatures darting

between the legs of the multinational monsters”between the legs of the multinational monsters” ))

I love …I love … Middle-Middle-sized Niche- sized Niche- Micro-niche Micro-niche

Dominators!Dominators!

"Own" a niche through EXCELLENCE"Own" a niche through EXCELLENCE!!(Writ large: Germany’s (Writ large: Germany’s MITTELSTANDMITTELSTAND: : “agile creatures darting“agile creatures darting

between the legs of the multinational monsters”between the legs of the multinational monsters” ))

Michael Raynor and Mumtaz Ahmed: Michael Raynor and Mumtaz Ahmed: THE THREE RULES: THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*::

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no other rules.There are no other rules.(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”)344 companies that qualified as statistically “exceptional.”)

Jeff Colvin, Jeff Colvin, FortuneFortune: “The Economy Is Scary … But Smart : “The Economy Is Scary … But Smart Companies Can Dominate”:Companies Can Dominate”:

They manage for value—not for EPS.They manage for value—not for EPS.They keep developing human capital.They keep developing human capital.They get radically customer-centric.They get radically customer-centric.

EXCELLENCEEXCELLENCE!!

Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht 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 PropertiesProperties

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

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

EXCELLENCE is EXCELLENCE is notnot a “long- a “long-term” "aspiration.”term” "aspiration.”

EXCELLENCE is the ultimate EXCELLENCE is the ultimate short-term strategy. short-term strategy.

EXCELLENCE is … THEEXCELLENCE is … THE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

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.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.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.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.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.”—

—Bill Young, race car driver

SERVICE.SERVICE.PERIOD.PERIOD.

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

PeoplePeople!!PeoplePeople!!PeoplePeople!!

1/4,0961/4,096

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

rewarding lives …rewarding lives …

1/4,096: excellencenow.com1/4,096: excellencenow.com

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

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

worth worth doindoing.”g.”

——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 (SWA’s pilots union took out a full-page ad in USA USA TodayToday

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)

““We look for ... We look for ... listening, caring, listening, caring, smiling, saying smiling, saying

‘Thank you,’ being ‘Thank you,’ being warm.” warm.” — Colleen Barrett, former President, Southwest — Colleen Barrett, former President, Southwest

AirlinesAirlines

““May I help May I help you down you down

the jetway.”the jetway.”

Rocket Science. Rocket Science. NOT.NOT.

““If you want staff to If you want staff to give great service, give great service, give great service give great service

to staff.” to staff.” ——Ari Weinzweig, Zingerman’s Ari Weinzweig, Zingerman’s

Source: Source: Small Giants: Companies That Choose to Be Small Giants: Companies That Choose to Be Great Instead of Big, Great Instead of Big, Bo BurlinghamBo Burlingham

"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 "What's the Secret to

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

““I start with the I start with the premise that the premise that the

function of function of leadership is to leadership is to pproduce more roduce more

leadersleaders, not more , not more followers.”followers.” ——Ralph NaderRalph Nader

EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …

onon EXCELLENT EXCELLENT employee experience!employee experience!

If you want to WOW your If you want to WOW your

customers, customers, FIRSTFIRST you you must WOW those whomust WOW those who WOW the customers!WOW the customers!

Wegmans Wegmans (was #1 in USA)(was #1 in USA)

Container Store Container Store (was #1 in USA)(was #1 in USA)

Whole FoodsWhole FoodsCostcoCostcoPublixPublix

Darden RestaurantsDarden RestaurantsBuild-A-Bear Build-A-Bear WorkshopsWorkshopsStarbucksStarbucks

““The greatest satisfaction for management has come not from the The greatest satisfaction for management has come not from the

financial growth of financial growth of CamelliaCamellia itself, but rather from having itself, but rather from having participated in the vast improvement in the living and working participated in the vast improvement in the living and working

conditions of its employees, resulting from the investment of many tens conditions of its employees, resulting from the investment of many tens of millions of pounds into the tea gardens’ infrastructure of roads, of millions of pounds into the tea gardens’ infrastructure of roads,

factories, hospitals, employees’ housing and amenities. … Within the factories, hospitals, employees’ housing and amenities. … Within the Camellia Group there is a strong aesthetic dimension, an intention that Camellia Group there is a strong aesthetic dimension, an intention that

it should comprise companies and assets of the highest quality, it should comprise companies and assets of the highest quality, operating from inspiring offices and manufacturing in state of the art operating from inspiring offices and manufacturing in state of the art

facilities.facilities. … … Above all, there is a deeAbove all, there is a deepp concern concern for the welfare of each emfor the welfare of each empploloyyee. This ee. This

arises not onlarises not onlyy from a sense of from a sense of humanithumanity,y, but also from but also from

the conviction that the lothe conviction that the loyyaltaltyy of a of a secure and enthusiastic emsecure and enthusiastic empploloyyee will in ee will in the lonthe longg-term -term pprove to be an invaluable rove to be an invaluable

comcomppany assetany asset.”.” ——Camellia: A Very Different Company Camellia: A Very Different Company ($600M enterprise/$160M pretax profit/#3 tea producer/etc.)($600M enterprise/$160M pretax profit/#3 tea producer/etc.)

Brand Brand = =

Talent.Talent.

Our Mission

TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE 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

““G-E-N-I-U-S”G-E-N-I-U-S”Getting more and more cantankerous (short tempered!)Getting more and more cantankerous (short tempered!)

about this:about this: Job #1Job #1 (& #2 & #3)(& #2 & #3) is to abet peoples' personal is to abet peoples' personal

growth. All other good things growth. All other good things flow there from.flow there from.My idea of a gen-u-ine "genius“My idea of a gen-u-ine "genius“

"breakthrough" idea:"breakthrough" idea: If you work your If you work your heart out to help people grow, heart out to help people grow,

they'll work their hearts outthey'll work their hearts out to give customers a great to give customers a great

experience.experience.

““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is However— as ridiculous as it sounds—joy is

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

THE THE MORALMORAL IMPERATIVE:IMPERATIVE:

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

In In Good BusinessGood Business, Mihaly Csikszentmihalyi argues , Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. persuasively that business has become the center of society.

As such, an obligation to community is front & center. As such, an obligation to community is front & center. Business as societal bedrock, has theBusiness as societal bedrock, has the

RESPONSIBILITYRESPONSIBILITY to increase theto increase the

““SUMSUM OF HUMANOF HUMAN WELLWELL--BEINGBEING.”.” Business is NOT "part of the community."Business is NOT "part of the community."

In terms of how adults collectively spend their waking In terms of how adults collectively spend their waking

hours …hours … BUSINESSBUSINESS ISIS THETHE COMMUNITYCOMMUNITY.. And should act accordingly. The And should act accordingly. The

(REALLY) good news:(REALLY) good news: Community mindednessCommunity mindedness is a great way (THE best way?) to have is a great way (THE best way?) to have

spirited/committed/ customer-centric work force—and, spirited/committed/ customer-centric work force—and, ultimately, increase (maximize?) profitability!ultimately, increase (maximize?) profitability!

““The role of the Director is to The role of the Director is to create a space where the create a space where the

actors and actresses canactors and actresses can become more than become more than thetheyy’ve ever been ’ve ever been

before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”

——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

#2: Help people #2: Help people bebe successful.*successful.*#1: Help people#1: Help people grow.grow.** ***** ****Especially circa 2014; “Grow or die (professionally)” is fact, not hyperbole.*Especially circa 2014; “Grow or die (professionally)” is fact, not hyperbole.**With a nod to Matthew Kelly’s **With a nod to Matthew Kelly’s The Dream ManagerThe Dream Manager***#2 and #1 are clearly related, but #1/grow has more to do with ***#2 and #1 are clearly related, but #1/grow has more to do with long-term preparedness.long-term preparedness.

Muhammad Yunus: Muhammad Yunus: ““All human All human beinbeinggs are s are

entreentreppreneursreneurs.. When we When we

were in the caves we were all self-employed were in the caves we were all self-employed ... finding our food, feeding ourselves. ... finding our food, feeding ourselves.

That’s where human history began ... As That’s where human history began ... As civilization came we suppressed it. We civilization came we suppressed it. We

became labor because they stamped us, ‘You became labor because they stamped us, ‘You are labor.’ are labor.’

We forgot that we are entrepreneurs.”We forgot that we are entrepreneurs.”

——Muhammad Yunus,Muhammad Yunus,

Nobel Laureate/The News Hour/PBS/1122.2006Nobel Laureate/The News Hour/PBS/1122.2006

Training = Training = InvestmentInvestment

#1#1!!

6/2/36/2/3**

*It takes Jerry Seinfeld *It takes Jerry Seinfeld SIX SIX MONTHSMONTHS to develop to develop

TWO TWO oror THREE THREE MINUTESMINUTES of new material of new material (documentary: (documentary: ComedianComedian))

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

training. In most training. In most businesses, it's a businesses, it's a

“ho-hum” mid-level “ho-hum” mid-level staff function.staff function.

Is your Is your CTOCTO/Chief /Chief Training Officer your top Training Officer your top paid “C-level” job (other paid “C-level” job (other

than CEO/COO)?than CEO/COO)?If not, why not?

Are your training courses Are your training courses so good they make you so good they make you

giggle and tingle?giggle and tingle?If not, why not?

Gamblin’ ManGamblin’ Man

Bet #1: Bet #1: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as expense rather than investment.expense rather than investment.Bet #2: Bet #2: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as defense rather than offense.defense rather than offense.Bet #3: Bet #3: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as “necessary evil” rather than “strategic “necessary evil” rather than “strategic opportunity.”opportunity.”

Bet #4:Bet #4: >> 8 of 10 CEOs, in a >> 8 of 10 CEOs, in a 45-minute “tour d’horizon” 45-minute “tour d’horizon” of their business, would of their business, would NOTNOT mention training mention training..

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training Are your training courses so good courses so good they make you they make you giggle and tingle?giggle and tingle?If not, why not?If not, why not?Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months?12 months?If not, why not?If not, why not?Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle and tingle?Are your training courses so good they make you giggle and tingle?If not, why not?If not, why not?

Randomly stop an employee Randomly stop an employee in the hall: Can she/he in the hall: Can she/he meticulously describe meticulously describe her/his development plan her/his development plan for the next 12 months?for the next 12 months?If not, why not?If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? them, why not you?

Boss & RPD:Boss & RPD: Your (boss) job is Your (boss) job is safer if every one of your safer if every one of your

team members is team members is committed to committed to

RPDRPD/Radical /Radical Personal Personal

DevelopmentDevelopment. Actively . Actively support one support one

and all!and all!

What is the best reason to go What is the best reason to go bananas over training? bananas over training?

GREED.GREED. (It pays off.) (It pays off.)

(Training should be an official part of the (Training should be an official part of the

R&DR&D budget and a capital expense.) budget and a capital expense.)

2X2X

2/Year = 2/Year = LegacyLegacy

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

11stst-Line Bosses -Line Bosses (Cadre of) = (Cadre of) =

Productivity Asset Productivity Asset

#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?

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

Is there Is there ONEONE “secret” “secret” to productivity and to productivity and

employee satisfaction?employee satisfaction?

YESYES!!

The Quality of your The Quality of your FULLFULL CADRECADRE of … of …1st-line Leaders.1st-line Leaders.

WOMEN RULEWOMEN RULE!!(WOMEN BUY (WOMEN BUY [EVERYTHING][EVERYTHING]!!))

““AS LEADERS, WOMEN RULE: New studies find AS LEADERS, WOMEN RULE: 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

““Research suggests that to Research suggests that to succeed, start by promoting succeed, start by promoting

women.”women.” —Nicholas Kristof, —Nicholas Kristof, NYTimesNYTimes, 1024.13, 1024.13

““In my experience, women make In my experience, women make much better executives than much better executives than

men.”men.”

——Kip Tindell, CEO, Container Store, from Kip Tindell, CEO, Container Store, from UNCONTAINABLE UNCONTAINABLE

““Research suggests Research suggests that to succeed, start that to succeed, start

by promoting by promoting women.”women.”

““McKinsey & Company found that the international companiesMcKinsey & Company found that the international companies with more women on their corporate boards with more women on their corporate boards far outperformedfar outperformed the the

average company in return on equity and other measures. average company in return on equity and other measures.

Operating profit wasOperating profit was 56%56% higher.”higher.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN..”*”*

Source: Headline, Economist

*W > 2X (C + I) = *W > 2X (C + I) = $28T$28T

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$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more 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 the female 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 confident that they have a winning strategy consumer. And yet many companies do just that—even ones that are confident that they have a winning strategy

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

““Women areWomen are THETHE majority majority

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

Context:Context:1,000,0001,000,000

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

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

““Just like other members of Just like other members of the board, the board, the algorithm the algorithm

gets to vote on whether the gets to vote on whether the firm makes an investment firm makes an investment in a sin a sppecific comecific comppananyy or or

notnot. The program will be the . The program will be the sixth member of DKV's sixth member of DKV's

board.”board.”

Source:Source: Business Insider, Business Insider, 13 May 2014: 13 May 2014: “A Hong Kong VC fund “A Hong Kong VC fund has just appointed an algorithm to its board.” has just appointed an algorithm to its board.”

““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical passenger flight, a human pilot passenger flight, a human pilot

holds the controls for a grand total holds the controls for a grand total

of …of …33 minutesminutes. .

[Pilots] have become, it’s not[Pilots] have become, it’s not much of an exaggeration to say, much of an exaggeration to say,

computer operators.”computer operators.” Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13

““Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s

da Vincida Vinci /multiple bypass heart-surgery /multiple bypass heart-surgery

robotrobot

““The root of our problem is notThe root of our problem is not that we’re in a Great Recessionthat we’re in a Great Recession

or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early

throes of a throes of a Great Restructuring. .

Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations

are lagging behind.”are lagging behind.”

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

CORPORATE MANDATE #1/MORAL IMPERATIVE 2014:CORPORATE MANDATE #1/MORAL IMPERATIVE 2014:

Your principal moral obligation as Your principal moral obligation as a leader is to develop the a leader is to develop the

skillset, “soft” and “hard,” of skillset, “soft” and “hard,” of every one of the people in your every one of the people in your charge (temporary as well as charge (temporary as well as

semi-permanent) to the semi-permanent) to the maximum extent of your abilities. maximum extent of your abilities.

The good news: The good news: This is also theThis is also the #1 mid- to lon#1 mid- to longg-term-term … …

p profit maximization straterofit maximization strategy!gy!

INNOVATE INNOVATE … … or PERISHor PERISH

11/48/48

Lesson48:Lesson48: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

Excellence82: The Bedrock “EiExcellence82: The Bedrock “Eigght Basics”ht Basics”

1. 1. A Bias for A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomy and y 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 PropertiesProperties

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)

I want to be a Photographer.I want to be a Photographer.Take a ton of photos. Start a photo blog. Take a ton of photos. Start a photo blog.

Organize an art show for your best work. Make stuff.Organize an art show for your best work. Make stuff.

I want to be a Writer.I want to be a Writer.Write a ton of pieces. Establish a voice on social media. Write a ton of pieces. Establish a voice on social media. Start a blog. Write guest posts for friends. Make stuff.Start a blog. Write guest posts for friends. Make stuff.

Talk is cheap.Talk is cheap.Just make stuff.Just make stuff.

——Reid Shilperoot, brand strategist, on the one piece ofReid Shilperoot, brand strategist, on the one piece of advice that has helped him overcome creative blocksadvice that has helped him overcome creative blocks

““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 againagain 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

““DEMODEMO OR DIE!”OR DIE!”

Source: This was the approach championed by Source: This was the approach championed by NicholasNicholas NeNeggroropponteonte which vaulted his which vaulted his MITMIT MediaMedia LabLab to the forefront of IT-multimedia to the forefront of IT-multimedia

innovation. It was his successful alternative to the traditional innovation. It was his successful alternative to the traditional MIT-academic MIT-academic “publish or perish.”“publish or perish.” Negroponte’s rapid-prototyping Negroponte’s rapid-prototyping

version was emblematic of the times and the pace and the enormityversion was emblematic of the times and the pace and the enormity of the opportunity. (of the opportunity. (NYTimesNYTimes/0426.11)/0426.11)

““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)

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEED?SUCCEED?Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Source: ad for Economist Conference/0328.13/Berkeley CA (caps are EconomistEconomist’s)’s)

““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))

We Are We Are WhatWhat

We Eat We Eat

We Are WhatWe Are What We Eat We Eat

We Are Who We We Are Who We Hang Out WithHang Out With

““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 hang out with”“We are who we hang out 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/Manage: Portfolio Measure/Manage: Portfolio “Strangeness”/“Quality”“Strangeness”/“Quality”

1. Customers1. Customers2. Vendors2. Vendors3. Out-sourcing Partners3. Out-sourcing Partners4. Acquisitions4. Acquisitions5. Purposeful “Theft”5. Purposeful “Theft”6. Diversity/“d”iversity6. Diversity/“d”iversity7. Diversity/Crowd-sourcing7. Diversity/Crowd-sourcing8.8. Diversity/Weird Diversity/Weird 9.9. Diversity/CuriosityDiversity/Curiosity10. Benchmarks10. Benchmarks11. Calendar11. Calendar12. MBWA12. MBWA13. Lunch/General13. Lunch/General14. Lunch/Other functions14. Lunch/Other functions15. Location/Internal15. Location/Internal16. Location/HQ16. Location/HQ17. Top team17. Top team18. Board18. Board

““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

““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

Ouch!Ouch!

“The Bottleneck …The Bottleneck …

“The Bottleneck is at the …The Bottleneck is at the … “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 … …

Top of the Top of the Bottle”Bottle”

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

XFX =XFX =

#1#1

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

% XF % XF

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

evaluation! evaluation!

InnovateInnovate or Die: or Die:

Measure It!Measure It!

Innovation IndexInnovation Index:: How many of your Top 5Top 5

Strategic Initiatives/Key Projects score 88 or or higherhigher [out of 10] on a

“Weird”“Weird”//“Profound”“Profound”/ / “Wow”“Wow”//“Game-“Game-

changer”changer” Scale? (At least 3???)

Innovation IndexInnovation Index:: Move Move

every project (definition) every project (definition) 22 notches up on the notches up on the

“WOWification “WOWification Scale”Scale” … … THIS THIS

WEEKWEEK. .

VALUE-ADDED VALUE-ADDED STRATEGIESSTRATEGIES

TGRs:TGRs:8/808/80

CustomersCustomers describing their service describing their service

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

the service experience they provide the service experience they provide asas

“ “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?

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?”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWandand … …

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

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

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

TGRs:TGRs: 3 Minutes3 Minutes

““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.

TGRs:TGRs:LBTs*LBTs*

*Little BIG Things*Little BIG Things

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

an entrance corridor to one property, an entrance corridor to one property, he was ‘amazed at the magnitude of he was ‘amazed at the magnitude of

change in pedestrians’ behavior’—the change in pedestrians’ behavior’—the percentage who entered increased percentage who entered increased

from from oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas

Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design: Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

(1)(1) AMENABLE TO RAPID AMENABLE TO RAPID EXPERIMENTATION/FAILURE “FREE” EXPERIMENTATION/FAILURE “FREE” (NO BAD “PR,” NO $$)(NO BAD “PR,” NO $$)(2)(2) QUICK TO IMPLEMENT/QUICK TO QUICK TO IMPLEMENT/QUICK TO ROLL OUTROLL OUT(3)(3) INEXPENSIVE TO IMPLEMENT/ INEXPENSIVE TO IMPLEMENT/ ROLL OUTROLL OUT(4)(4) HUGE MULTIPLIER HUGE MULTIPLIER(5)(5) AN “ATTITUDE” AN “ATTITUDE”(6) (6) DOES NOT BY AND LARGE REQUIRE ADOES NOT BY AND LARGE REQUIRE A “ “POWER POSITION” FROM WHICHPOWER POSITION” FROM WHICH TO LAUNCH EXPERIMENTS.TO LAUNCH EXPERIMENTS.

Social Business/ Social Business/ Customer Customer

EngagementEngagement

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make

an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Biz 2014: Get Aboard the “S-Train”Biz 2014: Get Aboard the “S-Train”

SMSM//Social Media.Social Media.

SXSX//Social eXecutives.Social eXecutives.

SESE//Social Employees.Social Employees.

SOSO//Social Social Organization.Organization.

SBSB//Social Business.Social Business.

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

DESIGNDESIGN!!

Design Design RulesRules!!

APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”BMW.” —Fortune—Fortune

““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

The The (ENORMOUS)(ENORMOUS) “Services “Services

Added” Added” OpportunityOpportunity

IBIBMMtoto

IIBBMM

UUPPSS toto

UPUPSS

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, : “Our ‘it’ works, is delivered on time” (“Close”)is delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our “How our ‘it’ can add value—a ‘useful it’” ‘it’ can add value—a ‘useful it’”

(“Solve”)(“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and our ‘system’ can change you and

deliver deliver ‘BUSINESS ADVANTAGE’‘BUSINESS ADVANTAGE’” ” (“Culture-Strategic change”)(“Culture-Strategic change”)

Source: Jeff Thull, Source: Jeff Thull, The Prime Solution: Close the Value Gap,The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale Increase Margins, and Win the Complex Sale

LeadingLeading

25/525/500

““To develop To develop others, start others, start

with with yyourselfourself.”.”

—Marshall Goldsmith—Marshall Goldsmith

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

stores—stores—at least at least 2525

a weeka week.. I’m also in other I’m also in other

places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up & Barrel. I try to be a sponge to pick up

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

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

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about 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 result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a 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 organization. So the first soft skill of leadership the hard way is 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 perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.

Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial

portion of his or her time—I would say portion of his or her time—I would say

as much asas much as 5050 percent—percent—

unscheduledunscheduled.. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will … Only when you 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 from your inevitable mistakes. you have the 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 issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling 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 there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”

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

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

Meetings are Meetings are #1#1 thing thing

bosses bosses dodo. Therefore, . Therefore, 100%100%

of those meetings:of those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..

““If there is any If there is any ONEONE ‘secret’ ‘secret’

to effectiveness, it is concentration. to effectiveness, it is concentration. Effective executives do first things first Effective executives do first things first

… … and they do and they do

ONEONE thing at a thing at a time.”time.” —Peter Drucker—Peter Drucker

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

““Courtesies of a small and trivial Courtesies of a small and trivial character are the ones which character are the ones which

strike strike deedeeppestest in the grateful and in the grateful and appreciating heart.”appreciating heart.” —Henry Clay—Henry Clay

“The “The deedeeppestest principle in human principle in human nature is the craving to be nature is the craving to be

appreciated.”appreciated.” —William James—William James

“The “The deedeeppestest urge in human nature is urge in human nature is the desire to be important.”the desire to be important.” —John Dewey—John Dewey

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

**“Employees who don't feel significant rarely make “Employees who don't feel significant rarely make significant contributions.”significant contributions.” —Mark Sanborn—Mark Sanborn

MBWA MBWA 88: :

Change the World With EIGHT Change the World With EIGHT WordsWords

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 ********************************************************************

MBWA MBWA 1212: :

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)? ********************* * ********************* *

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

Suggested Suggested Core Value Core Value #1:#1: “We are Effective “We are Effective

Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the 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.”

Listen!Listen!

An An [obsession with] Listening is ... the ultimate mark of Respect.[obsession with] Listening is ... the ultimate mark of Respect.Listening is ... the heart and soul of Listening is ... the heart and soul of Engagement.Engagement.Listening is ... the heart and soul of Listening is ... the heart and soul of Kindness.Kindness.Listening is ... the heart and soul of Listening is ... the heart and soul of Thoughtfulness.Thoughtfulness.Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true Partnership.Partnership.Listening is ... a Listening is ... a Team Sport.Team Sport.Listening is ... a Listening is ... a Developable Individual Skill.Developable Individual Skill.Listening is ... the basis for Listening is ... the basis for Community.Community.Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that work.Joint Ventures that work.Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that grow.Joint Ventures that grow.Listening is ... the core of Listening is ... the core of effective Cross-functional Communication.*effective Cross-functional Communication.* (*Which is in turn Attribute #1 of(*Which is in turn Attribute #1 of organization effectiveness.) organization effectiveness.)Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s Business.Keeping the Customer’s Business.Listening is ... Listening is ... Service.Service.Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenance.Network maintenance.Listening is ... the engine of Listening is ... the engine of Network expansion.Network expansion.Listening is ... Listening is ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewal.sine qua non of Renewal.Listening is ... the Listening is ... the sine qua non of Creativity.sine qua non of Creativity.Listening is ... the Listening is ... the sine qua non of Innovation.sine qua non of Innovation.Listening is ... the core of Listening is ... the core of taking diverse opinions aboard.taking diverse opinions aboard.Listening is ... Listening is ... Strategy.Strategy.Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than from anyProfitable.* (*The “R.O.I.” from listening is higher than from any other single activity.)other single activity.)Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment to EXCELLENCE!Commitment to EXCELLENCE!

*8 of 10 sales presentations fail*8 of 10 sales presentations fail

*50% failed sales *50% failed sales

presentations … presentations … talkingtalking “at” before “at” before listening! listening!—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, —Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, Fierce Conversations: Achieving Success at Work and in Life,Fierce Conversations: Achieving Success at Work and in Life,One Conversation at a TimeOne Conversation at a Time

““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”

Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters

““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)

**WTTMSWWTTMSW/Whoever Tries The Most Stuff Wins/Whoever Tries The Most Stuff Wins

““If I had toIf I had to pick one failing pick one failing

of CEOs, it’sof CEOs, it’s that …that …

——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of

CEOs, it’s that … they don’t read enough.”

0/8000/800

““Normal” =Normal” = “0 “0 forfor 800” 800”

*There are … *There are … ZEROZERO … “normal people” in the history books. … “normal people” in the history books.

““Insanely Great”Insanely Great”STEVE JOBSSTEVE JOBS

“Radically Thrilling”“Radically Thrilling”BMWBMW

“Astonish me!”“Astonish me!” (Sergei Diaghlev, to a lead dancer)(Sergei Diaghlev, to a lead dancer)

“Build something great!”“Build something great!” ((Hiroshi Yamauchi, Nintendo, to a senior game designer)Hiroshi Yamauchi, Nintendo, to a senior game designer)

“Make it immortal!”“Make it immortal!” (David Ogilvy, to a copywriter) (David Ogilvy, to a copywriter)

““You can’t behave You can’t behave in a calm, rational in a calm, rational

manner. You’ve got manner. You’ve got to be out there on to be out there on the the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

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!!