LONG Tom Peters’ Re-Imagine: Excellence NOW Achieve Greatness/IASA2012/San Diego/04 June 2012

LONGLONG

Tom Peters’Tom Peters’

Re-Imagine:Re-Imagine:ExcellenceExcellence

NOWNOW

Achieve Greatness/IASA2012/San Diego/04 June 2012Achieve Greatness/IASA2012/San Diego/04 June 2012(slides @ tompeters.com and excellencenow.com)(slides @ tompeters.com and excellencenow.com)

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

““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

““The head of one of the large management consulting The head of one of the large management consulting firms asks [members of a client organization, ‘And what firms asks [members of a client organization, ‘And what do you do that justifies your being on the payroll?’ The do you do that justifies your being on the payroll?’ The

great majority answer, ‘great majority answer, ‘I run the accountinI run the accountingg de deppartment,artment,’ ’ or ‘or ‘I am in charI am in chargge of the sales forcee of the sales force’ … Only a few say, ’ … Only a few say, ‘‘It’s mIt’s my jy job to ob to ggive our manaive our managgers the information theers the information theyy need to make the rineed to make the rigght decisions,ht decisions,’ or ‘’ or ‘I am resI am respponsible onsible for findinfor findingg out what out what pproducts the customer will want roducts the customer will want

tomorrowtomorrow.’ The man who focuses on efforts and stresses .’ The man who focuses on efforts and stresses his downward authority is a subordinate no matter how his downward authority is a subordinate no matter how

exalted his rank or title.exalted his rank or title. But the man who But the man who focuses on contributions and who focuses on contributions and who takes restakes respponsibilitonsibilityy for results, no for results, no matter how matter how jjunior, is in the most unior, is in the most literal sense of the literal sense of the pphrase, ‘tohrase, ‘topp manamanaggement.’ He holds himself ement.’ He holds himself

resrespponsible for the onsible for the pperformance of erformance of the wholethe whole.”.” ——Peter DruckerPeter Drucker

Operationalizing: It’s Gotta Add Operationalizing: It’s Gotta Add

upup!!

(1)(1) sum of Projects = sum of Projects = Goal (“Vision”) Goal (“Vision”)

(2)(2) sum of Milestones = sum of Milestones = On-time project On-time project(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability

““Costco figured out the Costco figured out the

bigbig,, simplesimple things things

and and executedexecuted with with

total total fanaticismfanaticism.”.” —Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

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)

"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

"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

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

customers then customers then must must firstfirst WOW WOW those who WOW those who WOW the customers!the customers!

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

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, Dave Liniger, founder, RE/MAXRE/MAX

““The organization would The organization would ultimately win not ultimately win not

because it gave agents because it gave agents more money,more money, but but

because it because it ggave themave them a chance for better a chance for better

liveslives.”.” —Phil Harkins & Keith Hollihan, —Phil Harkins & Keith Hollihan,

Everybody Wins, Everybody Wins, onon RE/MAXRE/MAX

BByy definition, the definition, the manamanagger cannot do all er cannot do all

the work herselfthe work herself.. Hence, effectivelHence, effectivelyy, the , the manamanagger's sole task is er's sole task is to make othersto make others——one one at a timeat a time——successfulsuccessful..

If the manager’s sole task is If the manager’s sole task is to make team members to make team members

successful— successful— then what is then what is yyourour [manager][manager] p plan to lan to

make each individual make each individual more successful within more successful within

the cominthe comingg week week??

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first response is always to think response is always to think

about the individual about the individual concerned and concerned and how thinhow thinggs s

can be arrancan be arrangged to heled to helpp that that individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

Brand Brand = =

Talent.Talent.

Our Mission

To 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

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our 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.

7 Steps to Sustaining Success7 Steps to Sustaining Success

You 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 Success7 Steps to Sustaining Success

You 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.)

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?”

““Unremarkable” Unremarkable” except forexcept for RESULTS: RESULTS:

Superb people Superb people developer developer

(her/his folks (her/his folks invariablyinvariably

amazed at what amazed at what they’ve accomplished!)they’ve accomplished!)

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““A man should A man should nevernever be promoted to a be promoted to a

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s weaknesses rather than on rather than on

their their strengths.”.” —Peter Drucker,—Peter Drucker,

The Practice of ManagementThe Practice of Management

AndrewAndrew CarneCarneggieie’s Tombstone Inscription …’s Tombstone Inscription …

Here lies a manHere lies a manWho knew how to enlistWho knew how to enlist

In his serviceIn his serviceBetter men than himself.Better men than himself.

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

““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

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

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

““C-C-level”? level”?

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?

No company ever No company ever Expended too Expended too

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

**ESPECIALLYESPECIALLY … small company … small company

4 4 Words!Words!

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

organization are …organization are …

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 Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.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 Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at home.individual—leave the “cookie cutter” at home.

Effectively "helping" may be the most difficultEffectively "helping" may 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."

Goal/Skill #1: Goal/Skill #1: The The

“Adaptive” “Adaptive” OrganizationOrganization

Goal/Skill #1: The “Adaptive” OrganizationGoal/Skill #1: The “Adaptive” Organization

Adaptive organizations will have workforces which …Adaptive organizations will have workforces which …

*Are hired for *Are hired for attitudeattitude and and charactercharacter and proven and proven teamworkteamwork as as much or more than for skillmuch or more than for skill*Are respected and trusted and visibly *Are respected and trusted and visibly aappppreciatedreciated and and celebratedcelebrated*Are in on pretty much everything in an environment of*Are in on pretty much everything in an environment of information sharing and transparencyinformation sharing and transparency*Are *Are trainedtrained and and rere--trainedtrained ad infinitum— ad infinitum—you can, in effect, you can, in effect, nevernever spend too much time or money on training and re-trainingspend too much time or money on training and re-training*Treat “learning new stuff”—*Treat “learning new stuff”—each and every dayeach and every day —as a near —as a near holyholy responsibilityresponsibility*Believe that every one of us and every outsider has *Believe that every one of us and every outsider has somethingsomething worthy to teach usworthy to teach us*Are routinely exposed to an “insane” variety of outsiders who*Are routinely exposed to an “insane” variety of outsiders who offer constant stimulation and direct challenges to offer constant stimulation and direct challenges to conventionalconventional organizational/marketplace wisdomorganizational/marketplace wisdom*Are given the *Are given the autonomautonomy (with concomitant accountability) toy (with concomitant accountability) to and encouragement to and encouragement to “try it,”“try it,” almost any “it,” at the drop of almost any “it,” at the drop of aa hat—hat—and then try it and try it again and againand then try it and try it again and again

Adaptive organizations Adaptive organizations will have workforces will have workforces which are hired for which are hired for

attitudeattitude and and charactercharacter and proven and proven teamworkteamwork as much or more than as much or more than

for skill.for skill.

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots hotshots

for for gguuyys we thous we thougght were ht were better better ppeoeopplele … and watched our … and watched our

guys do a lot better than the big guys do a lot better than the big names, not just in the classroom, but names, not just in the classroom, but on the field—and, naturally, after they on the field—and, naturally, after they graduated, too. Again and again, the graduated, too. Again and again, the blue chips faded out, and our little blue chips faded out, and our little up-and-comers clawed their way to up-and-comers clawed their way to

all-conference and All-America all-conference and All-America teams.”teams.”

—Bo Schembechler (and John Bacon), “Recruit for —Bo Schembechler (and John Bacon), “Recruit for Character,” Character,” Bo’s Lasting LessonsBo’s Lasting Lessons

Goal/Skill #1: The “Adaptive” Organization (cont.)Goal/Skill #1: The “Adaptive” Organization (cont.)

Adaptive organizations will have workforces which …Adaptive organizations will have workforces which …

*Are guaranteed that *Are guaranteed that “useful failures”“useful failures” are are cheerecheered rather thand rather than jeeredjeered*Are bound by a creed that shouts “good enough is never good*Are bound by a creed that shouts “good enough is never good enough”enough”*Are all *Are all “dreamers with deadlines,”“dreamers with deadlines,” committed to pursuit of committed to pursuit of thethe novel and disruptive—and equally committed to flawless andnovel and disruptive—and equally committed to flawless and timely executiontimely execution**LauLaugghh a lot at themselves and their foibles and pratfalls a lot at themselves and their foibles and pratfalls*Are, while *Are, while civilcivil to a fault, to a fault, irreverentirreverent about damn near about damn near anythinganything other than integrity and decencyother than integrity and decency*Are responsible for each other’s *Are responsible for each other’s mentorinmentoring and gg and growthrowth*Believe that their role—each and everyone—is to *Believe that their role—each and everyone—is to serveserve, to , to serveserve each other and to serve each member of our family ofeach other and to serve each member of our family of organizations (vendors, customers, communities, etc)organizations (vendors, customers, communities, etc)*Are *Are diversediverse to a fault—not legalistically diverse, but from to a fault—not legalistically diverse, but from everyevery background imaginablebackground imaginable*Are insistent that each and every one is treated as an utterly*Are insistent that each and every one is treated as an utterly indispensable member of the team—indispensable member of the team—there are no bit playersthere are no bit players*Relentlessly pursue no less than EXCELLENCE in all we do, in*Relentlessly pursue no less than EXCELLENCE in all we do, in tough times even more than in times of economic good healthtough times even more than in times of economic good health

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.”


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.)


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.


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.)


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.)


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.”

Joe J. Jones Joe J. Jones 1942 – 2010 1942 – 2010

Net WorthNet Worth

$21,543,672.48$21,543,672.48

Not.

Re-Imagine:Re-Imagine:ExcellenceExcellence

NOWNOW Tom Peters/8 November 2011Tom Peters/8 November 2011[Revised 14 November 2011][Revised 14 November 2011]

Business Results Group/JohannesburgBusiness Results Group/Johannesburg(slides @ tompeters.com)(slides @ tompeters.com)

Service/Service/Character/Character/Excellence/Excellence/

ImmoderationImmoderation

ServiceService

Organizations Organizations existexist to to serveserve. .

Period.Period.

Leaders Leaders livelive to to serveserve. Period.. Period.

Service is a Service is a beautiful word. beautiful word.

NOT ... "Wow NOT ... "Wow service" or "raving service" or "raving

fans“fans“ or "experience." or "experience." "Just" ... "Just" ... SERVICESERVICE

CharacterCharacter

““At a party …At a party …

““At a party given by a billionaire At a party given by a billionaire on Shelter Island, Kurt Vonnegut on Shelter Island, Kurt Vonnegut

informs his pal, Joseph Heller, informs his pal, Joseph Heller, that their host, a hedge fund that their host, a hedge fund

manager, had made more money manager, had made more money in a single day than Heller had in a single day than Heller had earned from his wildly popular earned from his wildly popular novel novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds …

““At a party given by a billionaire on Shelter Island, Kurt Vonnegut At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund informs his pal, Joseph Heller … that their host, a hedge fund

manager, had made more money in a single day than Heller had manager, had made more money in a single day than Heller had earned from his wildly popular novel earned from his wildly popular novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds … ‘Yes, but I ‘Yes, but I have something have something

he will never he will never have …have …

Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, Enough. The Measures of Money, Business, and Lifeand Life (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

At a party given by a billionaire on Shelter Island, At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more their host, a hedge fund manager, had made more money in a single day than Heller had earned from his money in a single day than Heller had earned from his wildly popular novel wildly popular novel Catch-22Catch-22 over its whole history. over its whole history. Heller responds … Yes, but I have something he will Heller responds … Yes, but I have something he will never have … never have …

enough.enough. Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, and Enough. The Measures of Money, Business, and LifeLife (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

““Too Much Cost, Not Enough Value”Too Much Cost, Not Enough Value”““Too Much Speculation, Not Enough Too Much Speculation, Not Enough

Investment”Investment”““Too Much Complexity, Not Enough Simplicity”Too Much Complexity, Not Enough Simplicity”

““Too Much Counting, Not Enough Trust”Too Much Counting, Not Enough Trust”““Too Much Business Conduct, Not Enough Too Much Business Conduct, Not Enough

Professional Conduct”Professional Conduct”““Too Much Salesmanship, Not Enough Too Much Salesmanship, Not Enough

Stewardship”Stewardship”““Too Much Focus on Things, Not Enough Focus Too Much Focus on Things, Not Enough Focus

on Commitment”on Commitment”““Too Many Twenty-first Century Values, Not Too Many Twenty-first Century Values, Not

Enough Eighteenth-Century Values”Enough Eighteenth-Century Values”““Too Much ‘Success,’ Not Enough Character”Too Much ‘Success,’ Not Enough Character”

Source: Chapter titles from Jack Bogle, Source: Chapter titles from Jack Bogle, Enough. Enough.

ExcellenceExcellence

Why in Why in the the World World did youdid you go to go to SiberiaSiberia??

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

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

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 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.

““The first step is to measure whatThe first step is to measure what can easily be measured. This is okay can easily be measured. This is okay as far as it goes. The second step isas far as it goes. The second step is to disregard that which cannot be to disregard that which cannot be measured, or give it an arbitrary measured, or give it an arbitrary

quantitative value. This is artificial quantitative value. This is artificial and misleading. The third step isand misleading. The third step is to presume that what cannot be to presume that what cannot be measured is not very important. measured is not very important.

This is blindness. The fourth step isThis is blindness. The fourth step is to say that what cannot be measured to say that what cannot be measured does not really exist. This is suicide.”does not really exist. This is suicide.”

—Daniel Yankelovich (from —Daniel Yankelovich (from Enough!Enough!, by Jack Bogle), by Jack Bogle)

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.

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!!

Four [really] Four [really] First things First things Before First Before First

Things …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?

The The sergeants sergeants

run the run the army. army.

Period.Period.

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

““People People leave leave

managers not managers not companies.”companies.”

——Dave WheelerDave Wheeler

E.g.: Do you have the ...E.g.: Do you have the ... ABSOLUTEABSOLUTE BEST BEST TRAINING & TRAINING & DEVELOPMENT DEVELOPMENT PROGRAMSPROGRAMSIN THE INDUSTRYIN THE INDUSTRY ... ...

(or some subset thereof)(or some subset thereof) for first-line supervisors?for first-line supervisors?

I am sure you “spend time” I am sure you “spend time” on this. My question: Is it an on this. My question: Is it an

… … OBSESSIONOBSESSION … …worthy of the impact it has worthy of the impact it has on enterprise performance?on enterprise performance?

#2#2

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Never Never waste a waste a lunch!lunch!

““Allied commands depend on Allied commands depend on mutual confidence mutual confidence

and this confidence is and this confidence is gained, above all gained, above all

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]

was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from

widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”

““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 Accelerators

1. 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.

Present counterparts in other Present counterparts in other functions recognition/awards for functions recognition/awards for

service to your group:service to your group: Tiny Tiny awards at least weekly. An awards at least weekly. An

“Annual All-Star “Annual All-Star Supporters Supporters [from other groups][from other groups] Banquet” modeled after Banquet” modeled after

[and equivalent to[and equivalent to!!]] superstar superstar salesperson banquets.salesperson banquets.

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

7. 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.”

The subtext of many, The subtext of many, if not all, of these ideas if not all, of these ideas is moving from implicit is moving from implicit to to exexpplicitlicit focus on XFX focus on XFX

—it should noisily —it should noisily intrude into [literally] intrude into [literally]

every discussion!every discussion!

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

12. 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.

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

Promote into Promote into functional leadership functional leadership

positions based positions based primarily on … primarily on …

temperamenttemperament..

Case: Case: HealthcareHealthcare

"When I was in medical school, I "When I was in medical school, I spent hundreds of hours looking spent hundreds of hours looking into a microscope—a skill I never into a microscope—a skill I never needed to know or ever use. needed to know or ever use. Yet I didn't have a single class that taught me communication or teamwork skills—something I need every day I walk into the

hospital.” —Peter Pronovost, —Peter Pronovost, Safe Patients, Smart HospitalsSafe Patients, Smart Hospitals

William Mayo, William Mayo, 19101910, on the Clinic’s , on the Clinic’s Two Core Values:Two Core Values:

Patient-centered carePatient-centered care

Team medicine Team medicine (“medicine as a co-(“medicine as a co-operative science”)operative science”)

Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

““Teamwork Teamwork isn’t isn’t

optional.”optional.” ——Fast CompanyFast Company

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

““Competency is Competency is irrelevant if we don’t irrelevant if we don’t

share common share common values.”values.” —Mayo Clinic exec, from Leonard Berry & Kent Seltman, —Mayo Clinic exec, from Leonard Berry & Kent Seltman,

“Orchestrating the Clues of Quality,” Chapter 7 from “Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

““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

““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.]

““I wasn’t bowled over by I wasn’t bowled over by [David Boies][David Boies] intelligence … What impressed me was intelligence … What impressed me was

that when he asked a question, he waited that when he asked a question, he waited

for an answer. for an answer. He not only He not only listened … listened … he made me he made me feel like I was the only feel like I was the only

person in the roomperson in the room.”.” —Lawyer —Lawyer

_____, on his first, inadvertent meeting with renown attorney David Boies, _____, on his first, inadvertent meeting with renown attorney David Boies, from Marshall Goldsmith, “The One Skill That Separates,” from Marshall Goldsmith, “The One Skill That Separates,” Fast CompanyFast Company

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

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

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

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

—Sara Lawrence-Lightfoot, Respect

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

““It’s amazing how this It’s amazing how this seemingly small thing— seemingly small thing—

simsimppllyy pa payyiningg fierce fierce attention to another, reallattention to another, reallyy

askinaskingg, reall, reallyy listenin listening,g, even durineven duringg a brief a brief

conversationconversation—can evoke —can evoke such a wholehearted such a wholehearted

response.”response.” —Susan Scott, —Susan Scott, Fierce Conversations: Fierce Conversations:

Achieving Success at Work and in Life, One Conversation at a TimeAchieving Success at Work and in Life, One Conversation at a Time

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

#4#4

Bitch all you Bitch all you want, but 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.

FYI:FYI: This is … This is … notnot … a rant about … a rant about

“conducting “conducting better meetings.”better meetings.”

Prep! Prep!! Prep!!!Prep! Prep!! Prep!!!

Meetings.Meetings.Phone calls. Phone calls.

Emails.Emails.Conversations.Conversations.

MBWMBW

AA

2255

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

MIA: Origins of Our Financial Chaos …MIA: Origins of Our Financial Chaos …

The CEO of a very successful The CEO of a very successful mid-sized bank, in the Midwest, mid-sized bank, in the Midwest, attended a seminar of mine in attended a seminar of mine in

northern California in the northern California in the mid-’80s—but I remember the mid-’80s—but I remember the

following, pretty much word for following, pretty much word for word, as if it were yesterday …word, as if it were yesterday …

MIA: Origins of Our Financial Chaos …MIA: Origins of Our Financial Chaos …

““Tom, let me tell you the Tom, let me tell you the definition of a good lending definition of a good lending

officer. After church on Sunday, officer. After church on Sunday, on the way home with his on the way home with his

family, he takes a little detour family, he takes a little detour to drive by the factory he just to drive by the factory he just

lent money to. Doesn’t go in or lent money to. Doesn’t go in or any such thing, just drives by any such thing, just drives by

and takes a look.”and takes a look.”

You = You = Your Your

calendarcalendar

You = You = Your 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????????

““Dennis, you need a …Dennis, you need a …

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

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

““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

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

—David D’Alessandro, Career Warfare

““I am a I am a dispenser of dispenser of

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

“Make it fun to work at your Make it fun to work at your agency. … Encourage agency. … Encourage

exuberance.exuberance. Get rid Get rid of sad dogs of sad dogs who spread who spread doom.”doom.” —David Ogilvy—David Ogilvy

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

Monday/Tomorrow/Courtesy NFL:Monday/Tomorrow/Courtesy NFL:

“Script” your “Script” your first 5-10 first 5-10

“plays.”“plays.” (I.e., carefully (I.e., carefully

launch the day/week in a launch the day/week in a purposefulpurposeful fashion.) fashion.)

Me first!Me first!

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

““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)

"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

""You will never change You will never change your life until you change your life until you change something you do daily. something you do daily.

The secret of The secret of yyour our success is found in success is found in yyour our daildailyy routine routine."." -- John C. Maxwell-- John C. Maxwell

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++

In 2007-2009, I was constantly asked for “strategies/

‘secrets' for surviving the Great Recession.” I tried to

appear wise and informed—and parade original,

sophisticated thoughts. But if you want to know what’ was really

going through my head, see the list that follows …

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.


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.


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.


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.


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.

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.)

K = R = PK = R = P

““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

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

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

budget. 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 their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring farcombative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them more time than it would have taken to interact with them

initially in a positive way.”initially in a positive way.”

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

(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 = Profit

Kindness: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.

Kindness … Kindness … WORKSWORKS!!

Kindness … Kindness … PAYSPAYS!!

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

““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

A good friend scored a A good friend scored a big win yesterday—big win yesterday—

her "target" was feeling her "target" was feeling un-acknowledged; by un-acknowledged; by

“merely” “showing up,” “merely” “showing up,” she, in effect, she, in effect,

acknowledged that acknowledged that person.person.

“Acknowledge” … perhaps the most

powerful word (and idea) in the English

language—and 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.

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

lastlast

1515 y yearsears!!

““Keep a short Keep a short

enemies list. enemies list. One enemy can do can do

more damage than the good done than the good done

by by a hundreda hundred friendsfriends.”.”

——Bill Walsh (from Bill Walsh (from The Score Takes Care of ItselfThe Score Takes Care of Itself))

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!

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

>>>>PerfectionPerfection

TGRs/ TGRs/ LBTs LBTs

8/808/80

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?

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?”

Carl’sCarl’s Street- Street-

Sweeper Sweeper

<TG<TGWWandand … …

>TG>TGRR[Things Gone [Things Gone WRONG-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.

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

120-oz container to ketchup-bottle 120-oz container to ketchup-bottle size laundry-detergentsize laundry-detergent concentrate concentrate

(100% conversion):(100% conversion): 1/4th 1/4th packaging; 1/4th weight; 1/4th packaging; 1/4th weight; 1/4th

cost to ship; 1/4th space on cost to ship; 1/4th space on ships, trucks, shelves. 3 years: ships, trucks, shelves. 3 years:

95M #s plastic resin saved, 125M 95M #s plastic resin saved, 125M #s cardboard conserved, 400M #s cardboard conserved, 400M less gallons of water shipped, less gallons of water shipped,

500K gallons less diesel fuel, 11M 500K gallons less diesel fuel, 11M less #s CO2 released)less #s CO2 released)

Source: Source: Force of Nature: The Unlikely Story of Walmart’s Force of Nature: The Unlikely Story of Walmart’s Green RevolutionGreen Revolution, Edward Humes, Edward Humes

DesignDesign! !

Design Design RulesRules!!

APPLEAPPLE market market capcap

> Exxon Mobil* > Exxon Mobil*

*August 2011*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

““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)

““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]

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the indicative of our era than the iMac. It is to the AAggee ofof

AestheticsAesthetics what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass Production or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the qualityenhance the quality of everything the customers see, of everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writeswrites

CEO Howard Schultz.” CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

““PackagesPackages … … are are

about about containincontainingg and and labelinlabelingg and and informininformingg and and celebratincelebratingg. They. They

are about are about ppowerower and and flatterflatteryy and and trying to win people’s trying to win people’s trusttrust. They . They

are about are about beautbeautyy and and craftsmanshicraftsmanshipp and and comfortcomfort. They . They

are about are about colorcolor, , pprotectionrotection, ,

survivalsurvival.”.” –Thomas Hine, –Thomas Hine, The Total PackageThe Total Package

Charles Handy:Charles Handy: “One bank is currently claiming to … “One bank is currently claiming to …

‘leverage its global footprint to provide effective financial

solutions for its customers by providing a gateway to

diverse markets.’”

““I assume that it is just saying that it I assume that it is just saying that it

isis there to …there to … ‘ ‘helhelpp its its customers customers

wherever thewherever theyy areare’.”’.” —Charles Handy—Charles Handy

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

and and hate!*hate!**Not “like” and “dislike”

CCDDOO**Chief *Chief DDesignesign Officer Officer

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

… … this will be this will be the woman’s the woman’s century …century …

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

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

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

*Women = *Women = $28 trillion$28 trillion > twice China + India combined > twice China + India combined

““Women areWomen are thethe majority majority

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

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer purchasing officer positions positions; hence women also make the majority of ; hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

Sales/Aftersales ProcessSales/Aftersales Process

1. Kick-off – 1. Kick-off – womenwomen2. Research – 2. Research – womenwomen3. Purchase – 3. Purchase – men4. Ownership – 4. Ownership – womenwomen5. Word-of-mouth – 5. Word-of-mouth – womenwomen

Source: Marti BarlettaSource: Marti Barletta

The Perfect Answer

Jill and Jack buy slacks in black…

Cases! Cases! Cases!Cases! Cases! Cases!

McDonald’sMcDonald’s (“mom-centered” to F as(“mom-centered” to F as

“majority consumer”; not via kids) “majority consumer”; not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)(“Do it [everything!] Herself”)

P&GP&G (more than F as “house cleaner”) (more than F as “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)(“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)(women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)(> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)(young girls want “friends,” not a blond stereotype)

Source: Source: Fara Warner/Fara Warner/The Power of the The Power of the PursePurse

Lowe’sLowe’s“Home Depot is still very much a guy’s “Home Depot is still very much a guy’s chain. But women, according to Lowe’s chain. But women, according to Lowe’s

research, initiate research, initiate 8080 p percentercent of all of all home-improvement purchase decisions— home-improvement purchase decisions—

esesppeciallecially y thethe bibig g ticket ordersticket orders like kitchen cabinets, flooring and like kitchen cabinets, flooring and

bathrooms. ‘We focused on a customer bathrooms. ‘We focused on a customer nobody in home improvement has focused nobody in home improvement has focused

on. on. Don’t Don’t gget me wronet me wrongg, but , but women are far more women are far more

discriminatindiscriminatingg than men than men,’,’ says says

CEO Robert Tillman.”CEO Robert Tillman.” —Forbes.com—Forbes.com

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. They They ‘‘join’ join’

themthem.”.”—Faith Popcorn, —Faith Popcorn, EVEolutionEVEolution

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

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

““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

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

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, Source: Horacio Falcao, Cover story/May 2006, World BusinessWorld Business, “Say It , “Say It Like a Woman: Why the 21Like a Woman: Why the 21stst-century negotiator will need the female -century negotiator will need the female touch”touch”

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

14 14 toto 168168**

*Leadership Positions/D&T/1992-2002/*Leadership Positions/D&T/1992-2002/WIAR WIAR (Women’s Initiative Annual Report)(Women’s Initiative Annual Report)

““Women Beat Women Beat Men at Art of Men at Art of

Investing”Investing”Source: Headline, Source: Headline, Miami HeraldMiami Herald, reporting on a study by Profs. Terrance Odean and , reporting on a study by Profs. Terrance Odean and

Brad Barber, UC DavisBrad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully

and hold on for the long term)

Warren Buffett Warren Buffett Invests Like a Girl: Invests Like a Girl:

And Why YouAnd Why YouShould TooShould Too —Louann Lofton,—Louann Lofton,

Portrait of a Female InvestorPortrait of a Female Investor

1. Trade less than men do1. Trade less than men do2. Exhibit less overconfidence—more likely to know2. Exhibit less overconfidence—more likely to know what they don’t know what they don’t know3. Shun risk more than male investors do3. Shun risk more than male investors do4. Less optimistic, more realistic than their male4. Less optimistic, more realistic than their male counterparts counterparts5. Put in more time and effort researching possible5. Put in more time and effort researching possible investments—consider details and alternate points investments—consider details and alternate points of view of view6. More immune to peer pressure—tend to make6. More immune to peer pressure—tend to make decisions the same way regardless of who’s decisions the same way regardless of who’s watchingwatching7. Learn from their mistakes7. Learn from their mistakes8. Have less testosterone than men do, making them8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, less willing to take extreme risks, which, in turn, could lead to less extreme market cycles could lead to less extreme market cycles

Source: Source: Warren Buffett Invests Like a Girl: And Why YouWarren Buffett Invests Like a Girl: And Why YouShould TooShould Too, Louann Lofton, Chapter 2, “The Science Behind the Girl”, Louann Lofton, Chapter 2, “The Science Behind the Girl”

““Power Women 100”/Power Women 100”/ForbesForbes 10.25.10 10.25.1026 female CEOs of Public Companies:26 female CEOs of Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

““Are men Are men obsolete?obsolete?

””

—Headline, —Headline, USN&WRUSN&WR

““Men Are Men Are Finished”Finished”

Source: Slate conference 0920/NYUSource: Slate conference 0920/NYU

Men employed, full or part-Men employed, full or part-time … 63% time … 63% (lowest since record-(lowest since record-

keeping began/1948)keeping began/1948)

Median inflation adjusted Median inflation adjusted wages, men 30-50 with jobs, wages, men 30-50 with jobs,

1969-20091969-2009: $33K, : $33K, -27%-27%

Source: Source: “The Slow Disappearance of the American “The Slow Disappearance of the American Working Man,”Working Man,” Bloomberg BusinessweekBloomberg Businessweek/08.11/08.11

All You Need All You Need to Know to Know

About the About the Aging Aging

Population/Population/MarketMarket

1/8/201/8/20

Date: 1/1/11Date: 1/1/11Activity: USA BoomersActivity: USA Boomers start turning 65 start turning 65

Rate: Rate: 1 every 1 every 88 secondssecondsDuration: Duration: 2020 yearsyearsImpacted: EVERYTHINGImpacted: EVERYTHING

50/5050/50 (At age 50, we have 50% of our adult (At age 50, we have 50% of our adult

lifelife ahead of us) ahead of us)

7/137/13 (An American will buy 13 cars in the course(An American will buy 13 cars in the course

of a lifetime—7 after the age of 50)of a lifetime—7 after the age of 50)

22/1/1022/1/10 (USA adult population will have(USA adult population will have

grown by 23 million between 2006grown by 23 million between 2006 and 2016. Ages 18-49 will haveand 2016. Ages 18-49 will have grown by 1 million, age 50+ willgrown by 1 million, age 50+ will have grown by 22 million)have grown by 22 million)

1/8/201/8/20 (One USA boomer will turn 65 every 8(One USA boomer will turn 65 every 8

seconds for the next 20 years)seconds for the next 20 years)

8.48.4 (Boomers inherit $8.4 trillion in next few (Boomers inherit $8.4 trillion in next few

years.)years.)

Boomers:Boomers:

70% will inherit/70% will inherit/$300K average/$300K average/

Top 8 million $1.5M Top 8 million $1.5M average/average/

Total inheritanceTotal inheritance$8.4 Trillion$8.4 Trillion

Source: Forbes/0411.11

55+ > 55-55+ > 55-**

*“[55-plus] are more active in online*“[55-plus] are more active in online finance, shopping and entertainment than finance, shopping and entertainment than

those under 55?”—Forrester Research those under 55?”—Forrester Research ((USA TodayUSA Today, 8 January 2009), 8 January 2009)

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are the the fastest growingfastest growing, the , the biggestbiggest, the , the

wealthiestwealthiest, the , the boldestboldest, the most , the most (yes) (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the , the most most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult difficult

&& demandingdemanding, the most , the most service & experience service & experience obsessedobsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) vigorous,) the most the most health conscioushealth conscious, the most , the most femalefemale, the , the

most profoundly important commercial market in the most profoundly important commercial market in the

history of the world—andhistory of the world—and we will be we will be the Center of the Center of yyour our

universe for the next universe for the next twenttwentyy-five -five yyearsears.. We We

have arrived!have arrived!

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

monsters"monsters"

“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: 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

M & A success rate as measured M & A success rate as measured by adding value to theby adding value to the

acquirer:acquirer:

15%15%Source: Mark Sirower, Source: Mark Sirower, The Synergy TrapThe Synergy Trap

““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

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 Jim’s Jungle Jim’s

call it, begins in the parking lot call it, begins in the parking lot and goes on to and goes on to 1,600 1,600 cheesescheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced 12,000 wines priced from $8 to $8,000from $8 to $8,000 a bottle; all this is brought to a bottle; all this is brought to

you by you by 4,000 vendors4,000 vendors.. Customers come from Customers come from every corner of the globe.” 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 the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it 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

““Satisfaction”Satisfaction”toto

“Success”“Success”

Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product/Service”product/Service”

versus versus CustomerCustomer

““SuccessSuccess””

IBMIBM

IBIBMMtoto

IIBBMM

$55B*$55B**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

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

UPSUPS

““WHAT CAN BROWN DO FOR YOU?”WHAT CAN BROWN DO FOR YOU?”

“It’s all about “It’s all about solutionssolutions. We . We talk with customers about talk with customers about

how to run better, stronger, how to run better, stronger, cheaper supply chains. We cheaper supply chains. We have 1,000 engineers who have 1,000 engineers who work with customers …”work with customers …”

—Bob Stoffel, UPS senior exec—Bob Stoffel, UPS senior exec

““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.”

MasterCard MasterCard AdvisorsAdvisors

““We Are We Are WhatWhat

We Eat.” We Eat.”

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 “Hang Out Axiom II”:The “Hang Out Axiom II”: “Spend “Spend time with ‘Interesting,’ time with ‘Interesting,’ and thou shall become and thou shall become

more interesting. Spend more interesting. Spend time with ‘dull’ and thou time with ‘dull’ and thou shall become more dull.” shall become more dull.”

WeWe Are Are the the companycompany we keep!we keep!

ManageManage it! it!

Measure/Manage: Portfolio “Strangeness”/ Measure/Manage: Portfolio “Strangeness”/ “Quality”“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 “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’ ” ”

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!!””

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

Whoops …Whoops …

“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

1/451/45

R.F.A.R.F.A.

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)

““This is so simple it sounds stupid, but it is This is so simple it sounds stupid, but it is amazing how few oil people really amazing how few oil people really

understand thatunderstand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may You may

think you’re finding it when you’re drawing think you’re finding it when you’re drawing maps and studying logs, but you have to maps and studying logs, but you have to

drill.”drill.”

Source: The HuntersSource: The Hunters, by John Masters, , by John Masters, wildly successful Canadian Oil & Gas wildcatterwildly successful Canadian Oil & Gas wildcatter

““We have a We have a strategic plan. strategic plan. It’s called … It’s called …

doindoing tg thinhinggss.”.” —Herb Kelleher—Herb Kelleher

““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

““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

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

11/45/45

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

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

Better yet:Better yet: WTTMSWTTMSASTMSUTFASTMSUTFWW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffAndAndScrews Screws The The Most Most Stuff Stuff UpUp TheTheFastestFastestWinsWins

““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)

Stay Hungry. Stay Hungry. Stay Foolish.Stay Foolish.

Steve JobsSteve Jobs

““Fail.Fail. Forward. Forward.

Fast.”Fast.”

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““No matter. No matter. Try again. Fail Try again. Fail

again. Fail again. Fail better.”better.”

—Samuel Beckett—Samuel Beckett

Read ItRead It

Richard Farson & Ralph Keyes:Richard Farson & Ralph Keyes:

Whoever MakesWhoever Makes the Most Mistakes the Most Mistakes Wins: The ParadoxWins: The Paradox

of Innovation of Innovation

““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))

1/50001/5000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted by NFLSource: Locker room sign posted by NFL football coach Bill Parcellsfootball coach Bill Parcells

WowWow

!!

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

Skinning Skinning CatsCats

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““There’s no use trying,’ said There’s no use trying,’ said Alice. ‘One cannot believe Alice. ‘One cannot believe

impossible things.’ ‘I daresay impossible things.’ ‘I daresay you haven’t had much practice,’ you haven’t had much practice,’

said the Queen. ‘When I was said the Queen. ‘When I was your age, I always did it for half your age, I always did it for half an hour a day. an hour a day. Why, sometimes Why, sometimes

I’ve believed as manI’ve believed as manyy as six as six imimppossible thinossible thinggs before s before

breakfastbreakfast.’”.’” — Lewis Carroll — Lewis Carroll

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

List List

[WOW!][WOW!]

option”option”??

““We all agree your We all agree your theory is crazy. The theory is crazy. The

question, which question, which divides us, is divides us, is

whether it is crazy whether it is crazy enough.”enough.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli

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!!

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

"The object of life's journey is not to arrive at the grave safely in a well

preserved body, but rather to skid in sideways, totally worn out, shouting, 'Holy Shit, What a Ride!!!’ ”

—Mavis Leyrer (feisty OCTOGENARIAN, living in Seattle)

““I WANT TO BE THOROUGHLY I WANT TO BE THOROUGHLY USED UP WHEN I DIE.USED UP WHEN I DIE. … Life is … Life is no ‘brief candle’ to me. It is a no ‘brief candle’ to me. It is a sort of splendid torch which I sort of splendid torch which I

have got hold of for the have got hold of for the moment, and I want to make it moment, and I want to make it

burn as brightly as possible burn as brightly as possible before handing it on to future before handing it on to future

generations.” generations.” —George Bernard Shaw—George Bernard Shaw

Wow!Wow!

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

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

Documents

LONG Tom Peters’ Re-Imagine: Excellence NOW Achieve Greatness/IASA2012/San Diego/04 June 2012