Tom Peters’ EXCELLENCE ! “THE WORKS” 1966-2015 Chapter TWO: EXCELLENCE 30 November 2015 (10+ years of presentation slides at tompeters.com)

Tom Peters’Tom Peters’

EXCELLENCEEXCELLENCE!!““THE WORKS”THE WORKS”

1966-20151966-2015

Chapter Chapter TWOTWO: : EXCELLENCEEXCELLENCE

30 November 201530 November 2015

(10+ years of presentation slides at (10+ years of presentation slides at tompeters.comtompeters.com))

Contents/“The Works”/1966-2015/EXCELLENCEContents/“The Works”/1966-2015/EXCELLENCE!!Chapter Chapter ONEONE:: Execution/The “All-Important Last 95%” Execution/The “All-Important Last 95%”Chapter Chapter TWOTWO:: EXCELLENCE (Or Why Bother at All?) EXCELLENCE (Or Why Bother at All?) Chapter Chapter THREETHREE:: 34 BFOs/Blinding Flashes of the Obvious 34 BFOs/Blinding Flashes of the Obvious Chapter Chapter FOURFOUR:: People (REALLY!) First People (REALLY!) First Chapter Chapter FIVEFIVE:: Tech Tsunami/Software Is Eating the World++ Tech Tsunami/Software Is Eating the World++ Chapter Chapter SIXSIX:: People First/A Moral Imperative Circa 2015 People First/A Moral Imperative Circa 2015 Chapter Chapter SEVENSEVEN:: Giants Stink/Age of SMEs/Be The Best, Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter Chapter EIGHTEIGHT:: Innovate Or Die/W.T.T.M.S.W./ Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter Chapter NINENINE:: Nine Value-added Strategies Nine Value-added Strategies Chapter Chapter TENTEN:: The “PSF”/Professional Service Firm “Model” The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter Chapter ELEVENELEVEN:: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’” You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”Chapter Chapter TWELVETWELVE:: Women Are Market #1 For Everything/ Women Are Market #1 For Everything/ Women Are the Most Effective LeadersWomen Are the Most Effective LeadersChapter Chapter THIRTEENTHIRTEEN:: Leadership/46 Scattershot Tactics Leadership/46 Scattershot Tactics Chapter Chapter FOURTEENFOURTEEN:: Avoid Moderation!/Pursue Avoid Moderation!/Pursue “ “Insanely Great”/Just Say “NO!” to Normal Insanely Great”/Just Say “NO!” to Normal

STATEMENT OF PURPOSESTATEMENT OF PURPOSE

This—circa November 2015—is my best shot. It is … This—circa November 2015—is my best shot. It is … “THE WORKS.”“THE WORKS.” Some Some half-century in the making (from 1966, Vietnam, U.S. Navy ensign, combat half-century in the making (from 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—my 1st “management” job—to today, 49 years later); but engineer/Navy Seabees—my 1st “management” job—to today, 49 years later); but also the product of a massive program of self-directed study in the last 36 also the product of a massive program of self-directed study in the last 36 months. months. It includes, in effect, a 250-page book’s worth—50,000++ words—of annotation.It includes, in effect, a 250-page book’s worth—50,000++ words—of annotation.

The times are nutty—and getting nuttier at an exponential pace. I have taken as The times are nutty—and getting nuttier at an exponential pace. I have taken as best I can the current context fully into account. But I have given equal attention best I can the current context fully into account. But I have given equal attention to more or less eternal (i.e., human) verities that will continue to drive to more or less eternal (i.e., human) verities that will continue to drive organizational performance and a quest for EXCELLENCE for the next several organizational performance and a quest for EXCELLENCE for the next several years—and perhaps beyond. (Maybe this bifurcation results from my odd adult years—and perhaps beyond. (Maybe this bifurcation results from my odd adult life circumstances: life circumstances: 30 years in Silicon Valley, 20 years in Vermont.)30 years in Silicon Valley, 20 years in Vermont.)

Enjoy.Enjoy.Steal.Steal.P-L-E-A-S-E try something, better yet several somethings.* ** *** **** *****P-L-E-A-S-E try something, better yet several somethings.* ** *** **** *****

*Make no mistake … *Make no mistake … THISTHIS ISIS AA 1414--CHAPTERCHAPTER BOOKBOOK. I think and write in . I think and write in PowerPoint; I dearly hope you will join me in this cumulative—half century—journey.PowerPoint; I dearly hope you will join me in this cumulative—half century—journey.**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his most recent book). The point is not “resilience” in the face of change; most recent book). The point is not “resilience” in the face of change; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; perhaps I somewhat anticipated this with my 1987 book, perhaps I somewhat anticipated this with my 1987 book, Thriving on ChaosThriving on Chaos. . ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is “crowdsourced.”“crowdsourced.”**********I am not interested in providing a “good presentation.” I am interested in I am not interested in providing a “good presentation.” I am interested in spurring practical action. Otherwise, why waste your time—or mine?spurring practical action. Otherwise, why waste your time—or mine?

Note:Note: There is considerable DUPLICATION in what follows. I do not imagine you will read this book straight through. There is considerable DUPLICATION in what follows. I do not imagine you will read this book straight through. Hence, to some extent, each chapter is more or less stand-alone.Hence, to some extent, each chapter is more or less stand-alone.

EpigraphsEpigraphs

““Business has to give people enriching, rewarding lives … Business has to give people enriching, rewarding lives …

or it's simply not worth doing.”or it's simply not worth doing.” —Richard Branson—Richard Branson

““Your customers will never be any happier Your customers will never be any happier than your employees.”than your employees.” —John DiJulius—John DiJulius

““We have a strategic plan. It’s called ‘doing things.’ ”We have a strategic plan. It’s called ‘doing things.’ ” —Herb Kelleher—Herb Kelleher

““You miss 100% of the shots you never take.”You miss 100% of the shots you never take.” —Wayne—Wayne GretzkyGretzky

““Ready. Fire. Aim.”Ready. Fire. Aim.” —Ross Perot —Ross Perot

““Execution Execution isis strategy.” strategy.” —Fred Malek—Fred Malek

““Avoid moderation.”Avoid moderation.” —Kevin Roberts—Kevin Roberts

““I’m not comfortable unless I’m uncomfortable.”I’m not comfortable unless I’m uncomfortable.” —Jay Chiat—Jay Chiat

““It takes 20 years to build a reputation and five minutes to ruin it.”It takes 20 years to build a reputation and five minutes to ruin it.”

——John DiJulius on social mediaJohn DiJulius on social media

““Courtesies of a small and trivial character are the ones which Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”strike deepest in the grateful and appreciating heart.” —Henry Clay —Henry Clay

““You know a design is cool when you want to lick it.”You know a design is cool when you want to lick it.” —Steve Jobs —Steve Jobs

““This will be the women’s century.”This will be the women’s century.” —Dilma Rousseff —Dilma Rousseff

““Be the best. It’s the only market that’s not crowded.”Be the best. It’s the only market that’s not crowded.” —George Whalin —George Whalin

First Principles. Guiding Stars. Minimums.First Principles. Guiding Stars. Minimums.

**EXECUTION! The “Last 95%.”EXECUTION! The “Last 95%.”GET IT (Whatever) DONE.GET IT (Whatever) DONE.

**EXCELLENCE. Always. PERIOD.EXCELLENCE. Always. PERIOD.**People REALLY First! Moral Obligation #1.People REALLY First! Moral Obligation #1.

**EXPONENTIAL Tech Tsunami.EXPONENTIAL Tech Tsunami.GET OFF ON CONTINUOUS UPHEAVALS!GET OFF ON CONTINUOUS UPHEAVALS!

**Innovate or DIE! Innovate or DIE! WTTMSW/Whoever Tries The Most Stuff Wins!WTTMSW/Whoever Tries The Most Stuff Wins!

**Women Buy (EVERYTHING)! Women Buy (EVERYTHING)! Women Are the Best Leaders! Women RULE!Women Are the Best Leaders! Women RULE!

**Oldies Have (All of) the Market Power!Oldies Have (All of) the Market Power!**DESIGN Matters! EVERYWHERE!DESIGN Matters! EVERYWHERE!

**Maximize TGRs!/Things Gone RIGHT!Maximize TGRs!/Things Gone RIGHT!**SMEs, Age of/“Be the Best, SMEs, Age of/“Be the Best,

It’s the Only Market That’s Not Crowded.”It’s the Only Market That’s Not Crowded.”**Moderation KILLS!Moderation KILLS!

NEW WORLD ORDERNEW WORLD ORDER??!!

0810/2011:0810/2011: Apple > ExxonApple > Exxon**

0724/2015:0724/2015: Amazon > WalmartAmazon > Walmart*****Market capitalization; Apple became *Market capitalization; Apple became #1#1 in the world. in the world.

**Market capitalization; Walmart is a “Fortune **Market capitalization; Walmart is a “Fortune 11” company—” company—the biggest in the world by sales.the biggest in the world by sales.

Phew.Phew.

Contents/“The Works”/1966-2015/EXCELLENCEContents/“The Works”/1966-2015/EXCELLENCE!!Chapter Chapter ONEONE: Execution/The “All-Important Last 95%”: Execution/The “All-Important Last 95%”Chapter Chapter TWOTWO: EXCELLENCE (Or Why Bother at All?) : EXCELLENCE (Or Why Bother at All?) Chapter Chapter THREETHREE: 34 BFOs/Blinding Flashes of the Obvious : 34 BFOs/Blinding Flashes of the Obvious Chapter Chapter FOURFOUR: People (REALLY!) First : People (REALLY!) First Chapter Chapter FIVEFIVE: Tech Tsunami/Software Is Eating the World++ : Tech Tsunami/Software Is Eating the World++ Chapter Chapter SIXSIX: People First/A Moral Imperative Circa 2015 : People First/A Moral Imperative Circa 2015 Chapter Chapter SEVENSEVEN: Giants Stink/Age of SMEs/Be The Best,: Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter Chapter EIGHTEIGHT: Innovate Or Die/W.T.T.M.S.W./: Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter Chapter NINENINE: Nine Value-added Strategies : Nine Value-added Strategies Chapter Chapter TENTEN: The “PSF”/Professional Service Firm “Model” : The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter Chapter ELEVENELEVEN: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”Chapter Chapter TWELVETWELVE: Women Are Market #1 For Everything/: Women Are Market #1 For Everything/ Women Are the Most Effective LeadersWomen Are the Most Effective LeadersChapter Chapter THIRTEENTHIRTEEN: Leadership/46 Scattershot Tactics : Leadership/46 Scattershot Tactics Chapter Chapter FOURTEENFOURTEEN: Avoid Moderation!/Pursue : Avoid Moderation!/Pursue “ “Insanely Great”/Just Say “NO!” to Normal Insanely Great”/Just Say “NO!” to Normal

Chapter TWOChapter TWO

EEXXCELLENCECELLENCE

2.1 2.1 X3/4X3/4

I wrote a book in 1982.I wrote a book in 1982.A few people bought it.A few people bought it.Then, hooray, a few more …Then, hooray, a few more …

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

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

PeoplePeopleExecutionExecutionExcellenceExcellence

PXX PXX = = People.People. eXecution.eXecution. eXcellence.eXcellence.

In Search of In Search of ExcellenceExcellence

… … in in 33 words.* words.*

(*Circa 1982. Circa 2015.)(*Circa 1982. Circa 2015.)

ActionActionPeoplePeople

CustomersCustomersValuesValues

To be sure, the “Eight Basics.”To be sure, the “Eight Basics.”(They’ve held up pretty darn well.)(They’ve held up pretty darn well.)Nonetheless …Nonetheless …In Search of ExcellenceIn Search of Excellence in … in …

44 words on the prior slide. words on the prior slide.

(Circa 1982. Circa 2015.)(Circa 1982. Circa 2015.)

Excellence.2015: The Bedrock “Eleven Basics”Excellence.2015: The Bedrock “Eleven Basics”

1. A Bias for 1. A Bias for Action/Serious Play/ExecutionAction/Serious Play/Execution4. 4. PeoPeopplele First/First/TraininTraining-g-Development Development Mania Mania 2. Symbiosis With the 2. Symbiosis With the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. SimSimpplele Form, Form, LeanLean Staff, Staff, Collaboration Collaboration ImperativeImperative7. Simultaneous 7. Simultaneous Loose-Tight Loose-Tight PropertiesProperties8. Ubiquitous 8. Ubiquitous DesiDesiggn-mindednessn-mindedness9. 9. TechnoloTechnologygy Fanaticism Fanaticism10. 10. AntifraAntifraggile/Sile/Sppeedeed Demons Demons

Excellence.2015: The Bedrock “Eleven Basics”Excellence.2015: The Bedrock “Eleven Basics”

1. A Bias for 1. A Bias for Action/Action/Serious PlaSerious Playy//ExecutionExecution**4. 4. PeoPeopplele FirstFirst//TraininTraining-g-Development Development ManiaMania 2. 2. SymbiosisSymbiosis With the With the CustomerCustomer3. 3. AutonomAutonomy and y and EntreEntreppreneurshireneurshipp5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. SimSimpplele Form, Form, LeanLean Staff, Staff, CollaborationCollaboration Imperative Imperative7. Simultaneous 7. Simultaneous Loose-Tight Loose-Tight PropertiesProperties8. 8. Ubiquitous Ubiquitous DesiDesiggn-mindednessn-mindedness 9. 9. TechnoloTechnology Fanaticismgy Fanaticism10. 10. AntifraAntifraggile/Sile/Sppeedeed Demons Demons

**RED RED is changes from 1982 list.is changes from 1982 list.

Update 2015.Update 2015.Much the same.Much the same.But important changes.But important changes.(The changes—as well as the similarities—(The changes—as well as the similarities—are imbedded in the material in this are imbedded in the material in this presentation.)presentation.)

2.22.2 X140X140 Excellence “Twitter-ized”Excellence “Twitter-ized”

In Search of Excellence “twitter-In Search of Excellence “twitter-

ized”/ized”/ <140 Characters: <140 Characters: Cherish Cherish your people, cuddle your people, cuddle

your customers, wander your customers, wander around, “try it” beatsaround, “try it” beats

“ “talk about it,” pursue talk about it,” pursue Excellence, tellExcellence, tell

the truth.the truth.127/Q.E.D.127/Q.E.D.

In Search of Excellence.2015In Search of Excellence.2015 … …

TwitterTwitter-ization.-ization.

My Story/My Story/40+40+ Years/140 Characters Years/140 Characters

****Take charge of your life!Take charge of your life!****Aim high!Aim high!****Be “Of service”!Be “Of service”!****Engage and empower others!Engage and empower others!****Follow the Golden Rule!Follow the Golden Rule!****Act now!Act now!****Relentless!Relentless!****No less than EXCELLENCE!No less than EXCELLENCE!

My lifeMy life … … TwitterTwitter-ized.-ized.

((2.3 2.3 By The Way By The Way ……))

ExIn*: 1982-2002/Forbes.comExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields DJIA: $10,000 yields $85,000

EI: $10,000 yields EI: $10,000 yields $140,050

* “Excellence Index”/Basket of 32 publicly traded stocks* “Excellence Index”/Basket of 32 publicly traded stocks

I am often asked how the “Excellent companies” have I am often asked how the “Excellent companies” have fared. Some, to be sure, were bombs. But, on the 20fared. Some, to be sure, were bombs. But, on the 20thth anniversary of the book’s publication, in 2002, anniversary of the book’s publication, in 2002,

Forbes.com Forbes.com analyzed the stock market analyzed the stock market performance of the firms. performance of the firms.

The results, FYI, are on the prior slide.The results, FYI, are on the prior slide.

(In addition to the satisfactory performance, (In addition to the satisfactory performance, ForbesForbes noted that, unlike the real world of stock-picker indices, noted that, unlike the real world of stock-picker indices, this analysis precluded selling off stocks that were this analysis precluded selling off stocks that were tanking—hence the Index is at a big disadvantage to tanking—hence the Index is at a big disadvantage to standard indices; yet it had still done very well.) (For no standard indices; yet it had still done very well.) (For no particular reason, neither I nor anyone else seems to particular reason, neither I nor anyone else seems to have done a subsequent analysis. Frankly, 20 years is a have done a subsequent analysis. Frankly, 20 years is a pretty good test.)pretty good test.)

2.42.4 X6X6Just 6 Words*:Just 6 Words*:

But a Core But a Core PhilosophyPhilosophy

(*+7 Ss)(*+7 Ss)

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

Hard Hard (numbers, plans)(numbers, plans) is Soft.is Soft.Soft Soft (people/relationships/culture)(people/relationships/culture) is Hard.is Hard.

Action.Action.People.People.Customers.Customers.Values.Values.

Some—most?—call these areas “soft”: Where are the numbers Some—most?—call these areas “soft”: Where are the numbers Where are the plans?Where are the plans?

Surely there Surely there isis room for the numbers— room for the numbers—andand the plans. the plans.But they are the real “soft stuff”—malleable and manipulable. But they are the real “soft stuff”—malleable and manipulable. (As we saw again and again during the economic crisis.)(As we saw again and again during the economic crisis.)

The truly “hard stuff”—which can’t be faked or exaggerated—The truly “hard stuff”—which can’t be faked or exaggerated—are the relationships with, for instance, our customers and our are the relationships with, for instance, our customers and our own people.own people.

“‘“‘Hard’ is ‘soft.’Hard’ is ‘soft.’‘‘Soft’ is ‘hard.’”Soft’ is ‘hard.’”Mantra #1 from Mantra #1 from In Search of EXCELLENCE.In Search of EXCELLENCE.Mantra 1982.Mantra 1982.Mantra 2015.Mantra 2015.

““THE 7-S MODEL”THE 7-S MODEL”

STRATEGYSTRATEGYSTRUCTURESTRUCTURE

SYSTEMSSYSTEMSSTYLESTYLESKILLSSKILLSSTAFFSTAFF

SUPER-ORDINATE GOALSUPER-ORDINATE GOAL

““The 7-S Model”The 7-S Model”

“Hard S“Hard Sss”” (Strategy, Structure, Systems)(Strategy, Structure, Systems)

“Soft S“Soft SSS”” (Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)

““The 7-S Model”The 7-S Model”STRATEGYSTRATEGY

STRUCTURESTRUCTURESYSTEMSSYSTEMS

STYLESTYLE (CORPORATE “CULTURE,” “THE WAY(CORPORATE “CULTURE,” “THE WAY WE DO THINGS AROUND HERE”) WE DO THINGS AROUND HERE”)

SKILLSSKILLS (“DISTINCTIVE COMPETENCE/S”)(“DISTINCTIVE COMPETENCE/S”)STAFFSTAFF (PEOPLE-TALENT)(PEOPLE-TALENT)

SUPER-ORDINATE GOALSUPER-ORDINATE GOAL (VISION, CORE VALUES)(VISION, CORE VALUES)

The The “McKinsey 7-S Model”“McKinsey 7-S Model” (or simply “7- (or simply “7-S model”) that Bob Waterman and I developed in 1979 S model”) that Bob Waterman and I developed in 1979 (with Tony Athos, Richard Pascale and Julien Phillips) (with Tony Athos, Richard Pascale and Julien Phillips) has stood the test of time—36 years to date. Our has stood the test of time—36 years to date. Our current-day McKinsey colleagues claim it’s still the current-day McKinsey colleagues claim it’s still the “most useful framework for assessing Organizational “most useful framework for assessing Organizational Effectiveness”—it underpins a great deal of McKinsey’s Effectiveness”—it underpins a great deal of McKinsey’s current work. current work.

The idea, encompassed by the “Hard is soft, Soft is The idea, encompassed by the “Hard is soft, Soft is Hard” notion, is that there are “soft Ss” as well as Hard” notion, is that there are “soft Ss” as well as “hard Ss” that must be considered and managed-as-“hard Ss” that must be considered and managed-as-one to maximize organization well-being and one to maximize organization well-being and competitive strength. Moreover—and here’s the rub—competitive strength. Moreover—and here’s the rub—all 7 must in effect be perfectly aligned to achieve all 7 must in effect be perfectly aligned to achieve sustaining Excellence. (No mean feat!)sustaining Excellence. (No mean feat!)

.

The 7-S model was/is to be laid out this The 7-S model was/is to be laid out this way. The diagram implicitly introduces way. The diagram implicitly introduces

the crucial idea of … the crucial idea of … “fit.”“fit.”

Each of the “Ss” must be considered in Each of the “Ss” must be considered in relationship to the other six. This relationship to the other six. This balancing/high-tension act is at the balancing/high-tension act is at the center of the leader’s role as center of the leader’s role as Enterprise Architect. Enterprise Architect.

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward on, I probably wouldn’t have. My bias coming in was toward

strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. [YET] I CAME TO SEE IN MY TIME

AT IBM THAT CULTURE ISN’T JUST ONE ASPECT OF

THE GAME ——IT IS THE IT IS THE GAMEGAME.”.” —Lou Gerstner,—Lou Gerstner,

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

Hard to describe the meaning of this to Hard to describe the meaning of this to me personally. Gerstner said again and me personally. Gerstner said again and again when he an I were at McKinsey again when he an I were at McKinsey that I was full of baloney for focusing that I was full of baloney for focusing on the “soft” “culture stuff.” on the “soft” “culture stuff.”

Per this slide, from his autobiography Per this slide, from his autobiography featuring the IBM years, he apparently featuring the IBM years, he apparently

became a convertbecame a convert!!

THE SOFT THE SOFT EDGEEDGE

Pillars of Soft-Edge Pillars of Soft-Edge ExcellenceExcellence

TrustTrustTeamsTeamsTasteTaste

Smarts Smarts StoryStory

Source: Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Rich Karlgaard is the publisher of Forbes Rich Karlgaard is the publisher of Forbes magazine—and a Silicon Valley stalwart of magazine—and a Silicon Valley stalwart of the 1the 1stst order. So it is especially interesting order. So it is especially interesting that he would write a book on “the soft that he would write a book on “the soft

stuff.” But stuff.” But The Soft EdgeThe Soft Edge is just is just that—and his arguments are compelling. The that—and his arguments are compelling. The bottom line, in Silicon Valley for example, is bottom line, in Silicon Valley for example, is that you will not achieve more than a that you will not achieve more than a smidgeon of your tech potential unless the smidgeon of your tech potential unless the organization which carries out your mission organization which carries out your mission emphasizes Rich’s “soft edge” traits.emphasizes Rich’s “soft edge” traits.

(The idea holds elsewhere as well. But the point is (The idea holds elsewhere as well. But the point is that even in Silicon Valley the “soft stuff” is that even in Silicon Valley the “soft stuff” is paramount as one seeks lasting impact and paramount as one seeks lasting impact and excellence.)excellence.)

““Far too many companies invest too little time and Far too many companies invest too little time and money in their soft-edge excellence. … The three main money in their soft-edge excellence. … The three main reasons for this mistake are:reasons for this mistake are:

1. 1. The hard edge is easier to The hard edge is easier to quantify. …quantify. …2. 2. Successful hard-edge Successful hard-edge investment provides a faster investment provides a faster return on investment. …return on investment. …3. 3. CEOs, CFO, chief operating CEOs, CFO, chief operating officers, boards of directors, and officers, boards of directors, and shareholders speak the language shareholders speak the language of finance. of finance. …”


Soft-Edge AdvantagesSoft-Edge Advantages

1. Soft-edge strength leads to greater 1. Soft-edge strength leads to greater brand recognition, higher profit brand recognition, higher profit margins, … margins, … [It] is the ticket out of [It] is the ticket out of Commodityville.Commodityville.““2. 2. Companies strong in the soft edge Companies strong in the soft edge are better prepared to survive a big are better prepared to survive a big strategic mistake or cataclysmic strategic mistake or cataclysmic disruption …disruption …““3. Hard-edge strength is absolutely 3. Hard-edge strength is absolutely necessary to compete, but it provides necessary to compete, but it provides only a fleeting advantage.”only a fleeting advantage.”


Amen.Amen.(Read the book. (Read the book. PLEASEPLEASE.).)



McKinseMcKinsey: Culture > Strategyy: Culture > Strategy

Wall Street Journal, Wall Street Journal, 0910.13, interview:0910.13, interview: “What “What matters most to a company matters most to a company

over time? Strategy or over time? Strategy or culture?”culture?”

Dominic Barton, Managing Director, Dominic Barton, Managing Director,

McKinsey & Co.:McKinsey & Co.: “Culture.”“Culture.”

McKinseMcKinsey: People > Strategyy: People > Strategy

““People Before Strategy”People Before Strategy” —title, —title, lead article,lead article, Harvard Business Review Harvard Business Review July-August 2015, July-August 2015,

by McKinsey MD Dominic Barton et al.by McKinsey MD Dominic Barton et al.

McKinsey fought me tooth and nail in the McKinsey fought me tooth and nail in the late 1970s. Strategy #1 was the unbending late 1970s. Strategy #1 was the unbending credo. credo.

Times change. The current McKinsey MD is Times change. The current McKinsey MD is singing a different tune—in fact from a singing a different tune—in fact from a different hymnal.different hymnal.

Interesting.Interesting.Eh?Eh?

2.5 2.5 X1X1

““Mr. Watson, how Mr. Watson, how long does it take to long does it take to

achieve excellence?” achieve excellence?”

Thomas Watson, legendary CEO of IBM.Thomas Watson, legendary CEO of IBM.

““One One minute. …”minute. …”

““One minute. You One minute. You make up your mind make up your mind

to never again to never again consciously do consciously do

something that issomething that is not excellent.”not excellent.”

EXCELLENCE starts EXCELLENCE starts insideinside you and is you and is reflected—or not—in your most minute and reflected—or not—in your most minute and temporal behaviors.temporal behaviors.

2.6 2.6 X/BLDX/BLD

““Everything can be taken Everything can be taken from a man but one thing:from a man but one thing:

the last of the human the last of the human freedoms—to choose one’s freedoms—to choose one’s attitude in any given set of attitude in any given set of circumstances, to choose circumstances, to choose one’s own way.”one’s own way.” —Victor Frankl—Victor Frankl

Frankl, one of the world’s greatest Frankl, one of the world’s greatest psychologists, was a survivor of a Nazi psychologists, was a survivor of a Nazi concentration camp.concentration camp.

BLD:BLD: Fact is, you Fact is, you CANCAN take take ANYANY damned damned

attitude attitude YOUYOU choose choose to work today!to work today!

In fact, it's your … In fact, it's your …

BLD/BLD/BBiggest iggest LLifeife

DDecision!ecision!

BIGGEST.BIGGEST.Up to you.Up to you.Soooo…..Soooo…..

EXCELLENCE is EXCELLENCE is a a PERSONALPERSONAL choice … choice … NOTNOT an institutional an institutional

choice!choice!

In fact there are few items in this In fact there are few items in this presentation that are more important than presentation that are more important than this one.this one.

Bottom line:Bottom line:

YOUR CHOICE.YOUR CHOICE.PERIOD.PERIOD.

Joe J. Jones Joe J. Jones 1942 – 2015 1942 – 2015

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!

There are a hundred hundred reasons why There are a hundred hundred reasons why this or that desirable/exciting thing this or that desirable/exciting thing (SERVICE, EXCELLENCE) (SERVICE, EXCELLENCE) “can’t be done “can’t be done around herearound here”*—or, at least, not today. ”*—or, at least, not today.

But, in the end, it’s But, in the end, it’s yyourour tombstone, not tombstone, not “theirs.”“theirs.”

(*I hear that damn refrain at every seminar(*I hear that damn refrain at every seminar!!))

2.7 2.7

X3/5/7X3/5/7

CAUSE.CAUSE. (worthy of commitment)(worthy of commitment)

SPACE.SPACE. (room for/encouragement(room for/encouragement

for initiative by ALL) for initiative by ALL)

DECENCY.DECENCY. (respect, grace,(respect, grace,

integrity, civility) integrity, civility)

It came out of nowhere … sprang from my It came out of nowhere … sprang from my keyboard unbidden. A(nother) “Theory of keyboard unbidden. A(nother) “Theory of

Everything” in … Everything” in … 33 words.* words.*

(*What can I say? I keep looking for clarity & brevity in (*What can I say? I keep looking for clarity & brevity in presenting the main themes of my work since 1976.)presenting the main themes of my work since 1976.)




DECENCY.DECENCY. (respect, grace, integrity, civility)(respect, grace, integrity, civility)

SERVICE. SERVICE. (worthy of our clients’ & extended(worthy of our clients’ & extended

family’s continuing custom) family’s continuing custom)

EXCELLENCE.EXCELLENCE. (PERIOD) (PERIOD)




DECENCY.DECENCY. (respect, grace, integrity, civility)(respect, grace, integrity, civility)

SERVICE. SERVICE. (worthy of our clients’ & extended(worthy of our clients’ & extended

family’s continuing custom) family’s continuing custom)

EXCELLENCE.EXCELLENCE. (PERIOD) (PERIOD)

SERVANT LEADERSHIP.SERVANT LEADERSHIP.

CAUSE.CAUSE.

SPACE.SPACE.

DECENCY.DECENCY.

SERVICE. SERVICE. EXCELLENCE.EXCELLENCE.

SERVANT LEADERSHIP.SERVANT LEADERSHIP.

I added 2 more ideas/2 more words. Then 1 I added 2 more ideas/2 more words. Then 1 more idea/another 2 words. Hence in the more idea/another 2 words. Hence in the

end, end,

A … “Theory of Everything” in A … “Theory of Everything” in 77 words. words.

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.)

Another Another 77

2.8 2.8 A Sacred A Sacred TrustTrust

““LEADERS LEADERS

‘‘DODO’’ PEOPLE. PEOPLE.

PERIOD.”PERIOD.” —Anon.—Anon.

LEADERSHIPLEADERSHIP IS A SACRED IS A SACRED

TRUST.TRUST.***President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

!!

""Leadership is a Leadership is a gift. It's given by gift. It's given by those who follow. those who follow.

You have to be You have to be worthy of it.”worthy of it.”

——General Mark Welsh, Commander, U.S. Air Forces Europe General Mark Welsh, Commander, U.S. Air Forces Europe

!!

2.9 2.9 Engineering.Engineering.NOT.NOT.

A LIBERAL A LIBERAL ARTART

Response to question on his Response to question on his (Peter Drucker’s) “most important (Peter Drucker’s) “most important

contribution”:contribution”: “I focused this “I focused this discipline on people and power; on discipline on people and power; on values, structure, and constitution; values, structure, and constitution; and above all, on responsibilities—and above all, on responsibilities—

THAT IS,THAT IS, I FOCUSED THE DISCIPLINE I FOCUSED THE DISCIPLINE

OF MANAGEMENT ON OF MANAGEMENT ON MANAGEMENT AS A TRULY MANAGEMENT AS A TRULY

LIBERAL ARTLIBERAL ART.”.” (18 January 1999)(18 January 1999)

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

Management as a … Management as a … LIBERAL LIBERAL ARTART..* *** **(*P-l-e-a-s-e convey that to the business schools(*P-l-e-a-s-e convey that to the business schools—fat chance getting an iota of reaction.)—fat chance getting an iota of reaction.)(**The consequences of this are enormous. The (**The consequences of this are enormous. The impact on people practices, for one giant thing, impact on people practices, for one giant thing, are mind boggling—starting, obviously with are mind boggling—starting, obviously with hiring.)hiring.)

2.10 2.10 X5X5

EXCELLENCE is EXCELLENCE is

notnot notnot notnot a “long-a “long-

term” "aspiration.”term” "aspiration.”

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

EXCELLENCE EXCELLENCE isis the ultimate short- the ultimate short-term strategy. EXCELLENCE term strategy. EXCELLENCE isis … …

THETHE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.

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

Translation: Reflect on your last five minutesTranslation: Reflect on your last five minutes—and next five minutes. —and next five minutes.

Did they/will they measure up to the Did they/will they measure up to the “Excellence Standard”?“Excellence Standard”?

(That’s all there is, there ain’t no more.)(That’s all there is, there ain’t no more.)

Next five minutes.Next five minutes.

OR NOT.OR NOT.

““I shall tell you a I shall tell you a great secret, my great secret, my

friend. Do not wait friend. Do not wait for the last for the last

judgment; judgment; it takes it takes pplace everlace everyy da day.”y.”

——Albert CamusAlbert Camus

Truer words …Truer words …

2.112.11 Excellence: Excellence:The Thing The Thing

About Joe …About Joe …

““In a way, the world is a great liar. In a way, the world is a great liar. It shows you it worships and admires It shows you it worships and admires money, but at the end of the day it money, but at the end of the day it doesn’t. It says it adores fame and doesn’t. It says it adores fame and

celebrity, but it doesn’t, not really. The celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, world admires, and wants to hold on to,

and not lose, goodness. It admires virtue. and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to At the end it gives its greatest tributes to

generosity, honesty, courage, mercy, generosity, honesty, courage, mercy, talents well used, talents that, brought talents well used, talents that, brought

into the world, make it better. That’s what into the world, make it better. That’s what it really admires. That’s what we talk about it really admires. That’s what we talk about

in eulogies, because that’s what’s in eulogies, because that’s what’s important. We don’t say, ‘The thing about important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can …Joe was he was rich!’ We say, if we can …

“ … “ … We say, if we can …We say, if we can …

‘‘The thing about The thing about Joe was he took Joe was he took

good care of good care of people.’”people.’”

——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim RussertPeggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert ,, The Wall Street Journal, The Wall Street Journal, June 21-22, 2008June 21-22, 2008

Phew!Phew!Wow!Wow!

Joe J. Jones Joe J. Jones 1942 – 2015 1942 – 2015

Net WorthNet Worth

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

Not.

$$$$$$: Not the stuff of tombstones.$$$$$$: Not the stuff of tombstones. Eh? Eh?

2.122.12 EXCELLENCE:EXCELLENCE:Beyond Beyond

Success Success ……

““[This year’s] graduates are told [by [This year’s] graduates are told [by commencement speakers] to pursue commencement speakers] to pursue

happiness and joy. But, of course, when you happiness and joy. But, of course, when you read a biography of someone you admire, it’s read a biography of someone you admire, it’s rarely the things that made them happy that rarely the things that made them happy that compel our admiration. It’s the things they compel our admiration. It’s the things they

did to court unhappiness—the things they did did to court unhappiness—the things they did that were arduous and miserable, which that were arduous and miserable, which

sometimes cost them friends and aroused sometimes cost them friends and aroused

hatredhatred. . It’s excellence, not It’s excellence, not hahappppiness, that we iness, that we

admire mostadmire most.”.” —David Brooks, “It’s Not —David Brooks, “It’s Not

About You,” op-ed,About You,” op-ed, New York Times New York Times, 30 May 2011, 30 May 2011

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.”

—Bill Young, race car driver

Not only do I agree with this sentiment—Not only do I agree with this sentiment—but I think it is profound. In higher but I think it is profound. In higher mathematics the accuracy of a new proof is mathematics the accuracy of a new proof is not enough. The proof must be not enough. The proof must be parsimonious, beautiful in its own fashion.parsimonious, beautiful in its own fashion.

In the same way, “ugly success” may have In the same way, “ugly success” may have its virtues, but also its vices. E.g., the its virtues, but also its vices. E.g., the winning sports team that exhibits winning sports team that exhibits arrogance rather than grace toward one’s arrogance rather than grace toward one’s defeated opponents.defeated opponents.

EXCELLENCE—to me—has its own rewards EXCELLENCE—to me—has its own rewards per se and is the mightiest of aspirations—per se and is the mightiest of aspirations—particularly as one looks back in the particularly as one looks back in the hindsight of a decade or two.hindsight of a decade or two.

2.132.13 Excellence: Excellence:Five Or Less Five Or Less

Words To The Words To The WiseWise

EXCELLENCE/Five Or Less Words To The WiseEXCELLENCE/Five Or Less Words To The Wise

4 most important words: 4 most important words: “What do you think?”“What do you think?” (Dave Wheeler @ (Dave Wheeler @ tompeters.com: “Most important 4tompeters.com: “Most important 4 words in an organization.”)words in an organization.”)4 most important words: 4 most important words: “How can I help?”“How can I help?” (Boss as CHRO/ (Boss as CHRO/ Chief Hurdle Removal Officer)Chief Hurdle Removal Officer)2 most important words: 2 most important words: “Thank you!”“Thank you!” (Appreciation/ (Appreciation/ Recognition)Recognition)2 most important words: 2 most important words: “All yours.”“All yours.” (“Hands-off” delegation/ (“Hands-off” delegation/ Respect/Trust)Respect/Trust)3 most important words: 3 most important words: “I’m going out.”“I’m going out.” (MBWA/Managing By (MBWA/Managing By Wandering Around/In touch!)Wandering Around/In touch!)2 most important words: 2 most important words: “I’m sorry.”“I’m sorry.” (Power of unconditional (Power of unconditional apology = Stunning! Marshallapology = Stunning! Marshall Goldsmith: #1 exec issue)Goldsmith: #1 exec issue)5 most important words: 5 most important words: “Did you tell the customer?”“Did you tell the customer?” (Over- (Over- communicate) communicate) 2 most important words: 2 most important words: “She says …”“She says …” (“She” is the customer!) (“She” is the customer!)


2 most important words: 2 most important words: “Yes ma’am.”“Yes ma’am.” (Women are more often (Women are more often than not the best managers.) than not the best managers.) 2 most important words: 2 most important words: “Try it!”“Try it!” (My only “for sure” in 49 (My only “for sure” in 49 years:years: Herb Kelleher: Herb Kelleher: “We have a strategic“We have a strategic plan, it’s called doing things.”/plan, it’s called doing things.”/BillBill Parcells: Parcells: “Blame no one. Expect“Blame no one. Expect nothing. Do something.”nothing. Do something.”))3 most important words: 3 most important words: “Try it again!”“Try it again!” (My only “for sure” 44 (My only “for sure” 44 years: MOST TRIES WINS.)years: MOST TRIES WINS.)2 most important words: 2 most important words: “Good try!”“Good try!” (CELEBRATE “good (CELEBRATE “good failures.” Richard Farson/book:failures.” Richard Farson/book: Whoever Makes the Most MistakesWhoever Makes the Most Mistakes Wins. Wins. Samuel Beckett:Samuel Beckett: “Fail. Fail again. “Fail. Fail again. Fail better.”Fail better.”))3 most important words: 3 most important words: “At your service.”“At your service.” (Organizations exist (Organizations exist to serve. Period. Leaders live to serve.to serve. Period. Leaders live to serve. Period.)Period.)4 most important words: 4 most important words: “How are we doing?”“How are we doing?” (To customers, (To customers, regularly.)regularly.)4 most important words: 4 most important words: “How was Mary’s recital?”“How was Mary’s recital?” (Know your (Know your employees’ kids.)employees’ kids.)2 most important words: 2 most important words: “Let’s party!”“Let’s party!” (Celebrate “small wins” (Celebrate “small wins” atat the drop of a hat.) the drop of a hat.)


1 most important word: 1 most important word: “No.”“No.” (“To don’ts” > “To dos”) (“To don’ts” > “To dos”)1 most important word: 1 most important word: “Yes.”“Yes.” (Hey, give it a shot/Anon. quote: (Hey, give it a shot/Anon. quote: ““The best answer is always, ‘What theThe best answer is always, ‘What the hell.’”/hell.’”/Wayne Gretzky: Wayne Gretzky: “You miss“You miss 100% of the shots you don’t take.”100% of the shots you don’t take.”))2 most important words: 2 most important words: “Lunch today?”“Lunch today?” (“Social stuff” = Secret (“Social stuff” = Secret to problem/opportunity #1:/XFX/to problem/opportunity #1:/XFX/ cross-functional Excellence.)cross-functional Excellence.)4 most important words: 4 most important words: “Thank Dick in accounting.”“Thank Dick in accounting.” (Readily (Readily acknowledge help from otheracknowledge help from other functions.)functions.)2 most important words: 2 most important words: “After you.”“After you.” (Courtesy rules.) (Courtesy rules.)3 most important words: 3 most important words: “Thanks for coming.”“Thanks for coming.” (Civility. E.g., (Civility. E.g., bossboss acknowledges employee coming toacknowledges employee coming to her/his office.) her/his office.) 2 most important words: 2 most important words: “Great smile!”“Great smile!” (Note & acknowledge (Note & acknowledge good attitude.)good attitude.)1 most important word: 1 most important word: “Wow!”“Wow!” (The gold standard … for (The gold standard … for everything.) everything.) 1 most important word: 1 most important word: “EXCELLENT!”“EXCELLENT!” (The … ONLY … (The … ONLY … acceptable standard/aspiration.)acceptable standard/aspiration.)

2.14 2.14 Excellence:Excellence:

The The 19Es19Es

If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!)

EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)

ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)

ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)

EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)

EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)

EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)

EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.)

ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)

EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)

EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)

EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)

ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)

EliminateEliminate.. (Keep it simple!)(Keep it simple!)

ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)

EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)

ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)

EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)

ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE

EnthusiasmEnthusiasm!! (Be an irresistible force of nature! (Be an irresistible force of nature! Be fire! Light fires!)Be fire! Light fires!)ExuberanceExuberance!! ( (Vibrate—cause earthquakes!)Vibrate—cause earthquakes!)ExecutionExecution!! (Do it! Now! Get it done! Barriers are baloney! Excuses are (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to coach Bill Parcells’for wimps! Accountability is gospel! Adhere to coach Bill Parcells’ doctrine: doctrine: “Blame nobody!! Expect nothing!! Do something!!”“Blame nobody!! Expect nothing!! Do something!!”))EmEmppowermentowerment!! (Respect! Appreciation! Ask until you’re blue in the face, (Respect! Appreciation! Ask until you’re blue in the face, ““What do you think?”What do you think?” Then: Listen! Liberate! 100.00% innovators!)Then: Listen! Liberate! 100.00% innovators!)EdEdgginessiness!! (Perpetually dance at the frontier and a little, or a lot, beyond.) (Perpetually dance at the frontier and a little, or a lot, beyond.)EnraEnraggeded!! (Maintain a permanent state of mortal combat with the (Maintain a permanent state of mortal combat with the status-quo!)status-quo!)EnEnggaaggeded!! (Addicted to (Addicted to MBWAMBWA/Managing By Wandering Around. /Managing By Wandering Around. In touch.In touch. Always.Always.) ) ElectronicElectronic!! (Partner with the whole wide world 60/60/24/7 via all manner (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. of electronic community building and entanglement. Crowdsourcing Crowdsourcing wins!)wins!)EncomEncomppassingassing!! (Relentlessly pursue diversity of every flavor! Diversity (Relentlessly pursue diversity of every flavor! Diversity per se generates big returns!) (Seeking superb leaders: per se generates big returns!) (Seeking superb leaders: Women rule!Women rule!))EmotionEmotion!! (The alpha! The omega! The essence of (The alpha! The omega! The essence of leadershipleadership! The! The essence of essence of salessales! The essence of ! The essence of designdesign! The essence of life itself! ! The essence of life itself! Acknowledge it! Use it!)Acknowledge it! Use it!)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE

EmEmppathathy!y! ( (Connect! Connect! Connect!Connect! Connect! Click with others’ reality and Connect! Click with others’ reality and aspirations!aspirations! “Walk in the other person’s shoes”—until the soles “Walk in the other person’s shoes”—until the soles have holes!)have holes!)EarsEars!! (Effective listening in every encounter: (Effective listening in every encounter: Strategic Advantage No. 1! Strategic Advantage No. 1! Believe it!)Believe it!)ExExpperienceerience!! (Life is theater! (Life is theater! It’s always showtime! It’s always showtime! Make every contact Make every contact a a “Wow”“Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically ! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Thrilling”/BMW.)EliminateEliminate!! (Keep it simple!! Furiously battle hyper-complexity and (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!)gobbledygook!!)ErrorErrorppronerone!! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. CELEBRATE the booboos! Try more stuff, make more booboos! HeCELEBRATE the booboos! Try more stuff, make more booboos! He who makes the most mistakes wins! who makes the most mistakes wins! Fail! Forward! Fast!)Fail! Forward! Fast!)EvenhandedEvenhanded!! (Straight as an arrow! (Straight as an arrow! Fair to a fault! Fair to a fault! Honest as Abe!)Honest as Abe!)ExExppectationsectations!! (Michelangelo: “ (Michelangelo: “The greatest danger for most of us is notThe greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and wethat our aim is too high and we miss it, but that it is too low and we hit it.”)hit it.”)EudaimoniaEudaimonia!! (The essence of Aristotelian philosophy: True happiness is (The essence of Aristotelian philosophy: True happiness is pursuit of the highest of human moral purpose. pursuit of the highest of human moral purpose. Be of service! Be of service! Always!)Always!)EXCELLENCEEXCELLENCE!! (The only standard! Never an exception! (The only standard! Never an exception! Start NOW! Start NOW! No excuses!)No excuses!)

2.15.12.15.1 Why Why Not I?Not I?

ExcellenceExcellence.. Always. Always.

If notIf not Excellence,Excellence, what?what?

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

This is my mantra.This is my mantra.This is my life.This is my life.(Fact is, though we rarely “make it,” I find an (Fact is, though we rarely “make it,” I find an aspiration of less than excellence beyond my aspiration of less than excellence beyond my comprehension.)comprehension.)

The failure to The failure to pursue pursue

EXCELLENCEEXCELLENCE is is incomprehensible incomprehensible

to me.to me.

We may not “get there”—to EXCELLENCE—We may not “get there”—to EXCELLENCE—but what is the point of most anything if but what is the point of most anything if one does not aspire to doing “it,” humble one does not aspire to doing “it,” humble or grand, with passion and in pursuit of an or grand, with passion and in pursuit of an

admirable outcomeadmirable outcome? ?

““If a man is called to be a street If a man is called to be a street sweeper, he should sweep streets sweeper, he should sweep streets even as Michelangelo painted, or even as Michelangelo painted, or Beethoven composed music, or Beethoven composed music, or Shakespeare wrote poetry. He Shakespeare wrote poetry. He should sweep streets so well should sweep streets so well

that all the hosts of heaven and that all the hosts of heaven and earth will pause to say, here livedearth will pause to say, here lived

a great street sweeper who did his a great street sweeper who did his job well.” job well.” —Dr. Martin Luther King, Jr.—Dr. Martin Luther King, Jr.

To my point …To my point …

Some might say this means one should not aspire to Some might say this means one should not aspire to be “more” than a streetsweeper. be “more” than a streetsweeper. Dr. King would doubtless agree at one level. But Dr. King would doubtless agree at one level. But there is a larger and more universal point—the there is a larger and more universal point—the aspiration for EXCELLENCE, the way in which the aspiration for EXCELLENCE, the way in which the given task is performed, not the prestige of the given task is performed, not the prestige of the task. Beyond this, though, is the fact that in 9 of 10 task. Beyond this, though, is the fact that in 9 of 10 instances an exhibition of EXCELLENCE per se at instances an exhibition of EXCELLENCE per se at anything is the foremost calling card when it comes anything is the foremost calling card when it comes to moving in whatever direction one wishes.to moving in whatever direction one wishes.

(I once heard General Colin Powell say the greatest of (I once heard General Colin Powell say the greatest of success principles—okay, he said “success”—is to do success principles—okay, he said “success”—is to do today’s job with all one’s might and not waste energy or today’s job with all one’s might and not waste energy or time angling for the next job. Excellence/ success today is time angling for the next job. Excellence/ success today is

the ultimate “USP”/Unique Selling Proposition.)the ultimate “USP”/Unique Selling Proposition.)

2.15.22.15.2 EXCELLENCE. EXCELLENCE. Now.Now.

EXCELLENCE. EXCELLENCE. Always.Always.

Shorthand.Shorthand.

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.

1.1. People first, second, third, fourth … /The People first, second, third, fourth … /The “business” of leaders is people: to “business” of leaders is people: to inspire/engage/provide a trajectory of opportunity—inspire/engage/provide a trajectory of opportunity—enterprise of every size and type as “cathedral” for enterprise of every size and type as “cathedral” for human development. human development. "When I hire someone, that's "When I hire someone, that's when I go to work for them.”when I go to work for them.” —John DiJulius —John DiJulius

1A. Customer comes 2nd/ If you want to best “Wow!” 1A. Customer comes 2nd/ If you want to best “Wow!” customers then you must first Wow! those who customers then you must first Wow! those who serve the customersserve the customers./"If you want staff to give ./"If you want staff to give great service, give great service to staff.”great service, give great service to staff.”—Ari —Ari Weinzweig, Zingerman's/ Weinzweig, Zingerman's/ “You have to treat your “You have to treat your employees like customers.”employees like customers.” —Herb Kelleher, on his —Herb Kelleher, on his #1 “secret to success.”#1 “secret to success.”

1B. Manager’s sole raison d’etre: 1B. Manager’s sole raison d’etre: Make each of my Make each of my teamteam

members successful!members successful!1C. Effective organizations: 1C. Effective organizations: No bit players!No bit players!


1D. Appreciation. Acknowledgement. 1D. Appreciation. Acknowledgement. “The deepest“The deepest human need is the need to be appreciated.”human need is the need to be appreciated.” — — Believe it! A few kind words are often rememberedBelieve it! A few kind words are often remembered for years!for years!1E. 1E. 1st line supervisors. Every organization’s … most 1st line supervisors. Every organization’s … most important … leadership cadre.important … leadership cadre. Productivity is largely Productivity is largely determined by the caliber of the 1st line boss.determined by the caliber of the 1st line boss. Selection and development of your “sergeants” mustSelection and development of your “sergeants” must become an “obsession”—almost all do a half-assedbecome an “obsession”—almost all do a half-assed job. job. 1F. Weird/ 1F. Weird/ There are no “normals” in the historyThere are no “normals” in the history books!/books!/Insure a healthy supply of oddballs/Diversity Insure a healthy supply of oddballs/Diversity ofof every flavor = Fresh perspectives! Better decisions!every flavor = Fresh perspectives! Better decisions!1G. Memories That Matter. And don’t./ “People stuff”1G. Memories That Matter. And don’t./ “People stuff” sticks with you: You’ll look back on the handful ofsticks with you: You’ll look back on the handful of people you developed who proceeded to change thepeople you developed who proceeded to change the world—and the multitude (if you’ve earned it) whoworld—and the multitude (if you’ve earned it) who say, “I grew most when I worked with you.” say, “I grew most when I worked with you.” Ever Ever seenseen a tombstone engraved with the deceased’s net a tombstone engraved with the deceased’s net worth?worth?


2. You/me: Businesses no longer coddle. You’re in2. You/me: Businesses no longer coddle. You’re in charge!/ “Brand you” —stand out for somethingcharge!/ “Brand you” —stand out for something valuable, or else; learn something new every day, orvaluable, or else; learn something new every day, or else!/“Distinct or Extinct!”else!/“Distinct or Extinct!”3. 3. Organizations Exist to ServeOrganizations Exist to Serve.. PERIOD. PERIOD.4. EXECUTION/ 4. EXECUTION/ “Don’t forget to tuck the shower curtain“Don’t forget to tuck the shower curtain into the bath tub.”into the bath tub.” —Conrad Hilton on —Conrad Hilton on his “sweat the details” obsession and #1 “successhis “sweat the details” obsession and #1 “success secret”/ secret”/ “Execution “Execution isis strategy.” strategy.” — —Fred Malek/ “Execution is the leader’s job #1.”—Fred Malek/ “Execution is the leader’s job #1.”—LarryLarry BossidyBossidy4A. “They do … ONE BIG THING at a time.” —Drucker on4A. “They do … ONE BIG THING at a time.” —Drucker on successful managers’ #1 trait.successful managers’ #1 trait.4B. Resilience circa 2011: Understand it. Hire for it.4B. Resilience circa 2011: Understand it. Hire for it. Promote for it. Obsess on it.Promote for it. Obsess on it.


5. MBWA/Managing By Wandering Around/ Starbucks’5. MBWA/Managing By Wandering Around/ Starbucks’ Schultz visits 25 stores a week/ “In touch” is “notSchultz visits 25 stores a week/ “In touch” is “not optional”/optional”/You = Your calendar/Calendars never lie!You = Your calendar/Calendars never lie!5A. Listening per se = Candidate for Core Value #1/5A. Listening per se = Candidate for Core Value #1/ Listening per se is a professionListening per se is a profession./“If you don’t ./“If you don’t listen,listen, you don’t sell anything.”/Docs interrupt patients you don’t sell anything.”/Docs interrupt patients afterafter … … 18 seconds. And you? 18 seconds. And you? 5B. 5B. “What do you think?” “How can I help?”“What do you think?” “How can I help?” —MBWA —MBWA 8/Eight words, repeated like a mantra while8/Eight words, repeated like a mantra while “ “wandering around,” that unlock engagement/wandering around,” that unlock engagement/ success for multitudes.success for multitudes.5C. Innovate by “Hanging out” /“You are what you5C. Innovate by “Hanging out” /“You are what you eat.”/eat.”/ “You will become like the five people you“You will become like the five people you associate with the most —a blessing or a curse.”/associate with the most —a blessing or a curse.”/ Want “cool”? Expose yourself to cool! /ManageWant “cool”? Expose yourself to cool! /Manage “ “hanging out” zealously-formally —with customers,hanging out” zealously-formally —with customers, interesting outsiders, etc.interesting outsiders, etc.


5D. K = R = P 5D. K = R = P (Kindness = Repeat business = Profit.)(Kindness = Repeat business = Profit.) “ “Hard is soft. Soft is hard.” —#1 finding Hard is soft. Soft is hard.” —#1 finding In Search In Search ofof ExcellenceExcellence. Kindness is “hard”—and pay off in $$$. Kindness is “hard”—and pay off in $$$$.$.5E. Apology Power—Awesome power: 3-minute “I’m5E. Apology Power—Awesome power: 3-minute “I’m sorry” call heals anything—do it religiously!/”Over-sorry” call heals anything—do it religiously!/”Over- the-top” response to even small booboo the-top” response to even small booboo strengthensstrengthens customer relationships!customer relationships!


6.6. ““Little BIG Things”/Focus on “multipliers”: WalmartLittle BIG Things”/Focus on “multipliers”: Walmart goes to big shopping cart = +50% “big stuff” sales goes to big shopping cart = +50% “big stuff” sales

boost!/“Wash your Hands” —save thousands of lives boost!/“Wash your Hands” —save thousands of lives P.A. in hospitals!P.A. in hospitals!

6A. “Little BIG Things”: SMEs bedrock of all economies. 6A. “Little BIG Things”: SMEs bedrock of all economies. Nurture them. SME’s battle cryNurture them. SME’s battle cry

per George Whalin: per George Whalin: “Be the best. It’s the only “Be the best. It’s the only market that’s not crowded.”market that’s not crowded.”

7. Apple > Exxon in market cap courtesy … 7. Apple > Exxon in market cap courtesy … DESIGN!DESIGN! /The big “Duh”: “Cool beats un- cool!”/Design /The big “Duh”: “Cool beats un- cool!”/Design candidate for “best way to differentiate goods-candidate for “best way to differentiate goods-services in competitive markets.”services in competitive markets.”

7A. 7A. TGRs/Things Gone Right.TGRs/Things Gone Right. Wagon Wheel restaurant, Wagon Wheel restaurant, Gill MA—clean restroom with fresh flowers.—we Gill MA—clean restroom with fresh flowers.—we remember such touches more or less forever/ remember such touches more or less forever/

Manage-measure TGRs.Manage-measure TGRs.7B. Scintillating Experiences. Howard Schultz on7B. Scintillating Experiences. Howard Schultz on Starbucks: “At our core, we’re a coffeeStarbucks: “At our core, we’re a coffee company, but the opportunity we have to extend the company, but the opportunity we have to extend the

brand is beyond coffee; it’s entertainment.” brand is beyond coffee; it’s entertainment.”


8. 8. WOMEN Buy! WOMEN Rule! WOMEN’s World!WOMEN Buy! WOMEN Rule! WOMEN’s World! Women Women buybuy 80% of everything—$28T world market/“Why Warren80% of everything—$28T world market/“Why Warren Buffett Invests Like a Girl”—e.g., studies harder-holdsBuffett Invests Like a Girl”—e.g., studies harder-holds longer-less frenzied buying and selling/Women’slonger-less frenzied buying and selling/Women’s leadership style fits 21st century less-hierarchicalleadership style fits 21st century less-hierarchical enterprise./Evidence clear— Women well on the way toenterprise./Evidence clear— Women well on the way to 21st century economic domination! Brazil’s President21st century economic domination! Brazil’s President Dilma Rousseff at UN: Dilma Rousseff at UN: “the century of women.”“the century of women.”9. Web-Social Media/ “Everyone becomes our valued9. Web-Social Media/ “Everyone becomes our valued partner, a member of our community—andpartner, a member of our community—and watchdog”/watchdog”/The Power of Co-creationThe Power of Co-creation —my “Top Biz —my “Top Biz Book for 2010”/SM can be lynchpin of transformativeBook for 2010”/SM can be lynchpin of transformative strategy—for organizations of every shape and size!strategy—for organizations of every shape and size!10. Value added via transformation from 10. Value added via transformation from “Customer“Customer satisfaction” to “ customer success”satisfaction” to “ customer success” —huge —huge difference-difference- opportunity! /E.g., IBM Global Services, fromopportunity! /E.g., IBM Global Services, from afterthought to $60B/UPS Logistics/MasterCardafterthought to $60B/UPS Logistics/MasterCard Advisors/ IDEO, help clients create “culture ofAdvisors/ IDEO, help clients create “culture of innovation”/“The Geek Squad”—Best Buy's #1 innovation”/“The Geek Squad”—Best Buy's #1 strategicstrategic point of differentiation.point of differentiation.


11. Innovation “secret” #1: 11. Innovation “secret” #1: “Most tries wins.”“Most tries wins.” / “A Bias / “A Bias forfor Action”—excellence trait #1, Action”—excellence trait #1, In Search of ExcellenceIn Search of Excellence /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying toto figure out the best way to do something and figure out the best way to do something and stickingsticking to it, just try out an approach and keep fixing it.” to it, just try out an approach and keep fixing it.” — —Bert RutanBert Rutan11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/ “Fail11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/ “Fail faster, succeed sooner”—David Kelley /“Rewardfaster, succeed sooner”—David Kelley /“Reward excellent failures, punish mediocre successes”/excellent failures, punish mediocre successes”/ Whoever Makes the Most Mistakes WinsWhoever Makes the Most Mistakes Wins —Richard —Richard FarsonFarson11B. 11B. “You miss 100% of the shots you never take.” “You miss 100% of the shots you never take.” — —Wayne GretzkyWayne Gretzky


12. 12. Live WOW!Live WOW!//Zappos creed … “WOW Customers”/Zappos creed … “WOW Customers”/ eBay 14,000 employees, Amazon 20,000eBay 14,000 employees, Amazon 20,000 employees, Craig’s List 30 employees; regardless ofemployees, Craig’s List 30 employees; regardless of issue, Where’s your “Wild and Wooly Craig’s issue, Where’s your “Wild and Wooly Craig’s List Option”?/ Final point in superstar adman KevinList Option”?/ Final point in superstar adman Kevin Roberts’ Credo: Roberts’ Credo: “Avoid moderation!”“Avoid moderation!”13. 13. EXCELLENCE is a personal choice … not an EXCELLENCE is a personal choice … not an

institutional choice!institutional choice! EXCELLENCE is not an “aspiration” —it’s the next EXCELLENCE is not an “aspiration” —it’s the next

five minutes!five minutes!13A. EXCELLENCE. Always. If not EXCELLENCE, What?13A. EXCELLENCE. Always. If not EXCELLENCE, What? If not EXCELLENCE Now, When?If not EXCELLENCE Now, When?

2.16 2.16 Why Why Not II?Not II?

““Why in the Why in the World did youWorld did you

go to go to SiberiaSiberia?”?”

A half-dozen years ago I went to A half-dozen years ago I went to Novosibirsk, Siberia, to give a seminar. Novosibirsk, Siberia, to give a seminar. (Novosibirsk, center of Soviet scientific (Novosibirsk, center of Soviet scientific excellence, was now confronting the global excellence, was now confronting the global economy—and looking for a new direction.) economy—and looking for a new direction.)

The unusual setting caused me to go back The unusual setting caused me to go back to “first principals” in my thinking about to “first principals” in my thinking about enterprise.enterprise.

I asked myself, for starters …I asked myself, for starters …

“WHAT’S THE POINT?”“WHAT’S THE POINT?”

ENTERPRISEENTERPRISE* (*AT ITS BEST):* (*AT ITS BEST): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

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

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

ENTERPRISEENTERPRISE* * (*AT ITS BEST)(*AT ITS BEST) : : An An emotionalemotional, , vitalvital, ,

innovativeinnovative, j, jooyyfulful, , creativecreative, , entreentreppreneurialreneurial

endeavor that elicits endeavor that elicits maximum maximum

concerted human concerted human potential in the potential in the

wholehearted wholehearted ppursuit of ursuit of EXCELLENCE inEXCELLENCE in serviceservice of of

othersothers.

Enterprise, as I note … Enterprise, as I note … AT ITS BESTAT ITS BEST..(Obviously not always achieved—or, alas, even (Obviously not always achieved—or, alas, even aspired to.) aspired to.)

On the other hand …On the other hand …

if this or something very if this or something very much like it is much like it is notnot the aim, the aim, then … what then … what isis the point? the point?

Think about it.Think about it.Please.Please.(E.g., Consider the (E.g., Consider the oppositeopposite of each word here—is, of each word here—is, say, “joyless” acceptable?)say, “joyless” acceptable?)

(Photo is me and my interpreter, who turned out to have an economics (Photo is me and my interpreter, who turned out to have an economics PhD from the University of Maryland; on stage in Novosibirsk.)PhD from the University of Maryland; on stage in Novosibirsk.)

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

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

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

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

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

team.”team.”

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

The industry is tough as nails, fastpaced—and The industry is tough as nails, fastpaced—and unforgiving. And yet Menlo CEO Richard Sheridan unforgiving. And yet Menlo CEO Richard Sheridan insists that his raison d’etre, competitive advantage insists that his raison d’etre, competitive advantage

and success “secret” is … and success “secret” is … JOYJOY!!Again, please think about this.Again, please think about this.Carefully.Carefully.What would be the literal translation in your world?What would be the literal translation in your world?

And: And: WHY NOTWHY NOT??(Seriously.)(Seriously.)

2.17 2.17 Why Why Not III?Not III?

Apple design:Apple design: “Huge “Huge degree of degree of

carecare.”.”

——Ian Parker, Ian Parker, New YorkerNew Yorker, 23 March 2015, , 23 March 2015, on Apple design chief Jony Iveson Apple design chief Jony Ives

““Huge degree of caring” should—in my Huge degree of caring” should—in my thoroughly biased opinion—be the thoroughly biased opinion—be the hallmark of every professional’s work. In hallmark of every professional’s work. In our own fashion, we should apply Jony our own fashion, we should apply Jony Ive’s standard to everything we do.Ive’s standard to everything we do.

Starting—yes—with the emails Starting—yes—with the emails we send.we send.Why not?Why not?Care-in-communication: What could be Care-in-communication: What could be more important to a professional?more important to a professional?

““Expose yourself to Expose yourself to the best things humans the best things humans

have done and then have done and then try to bring those try to bring those

things into what youthings into what you

are doing.”are doing.” —Steve Jobs—Steve Jobs

A profound challenge—and it goes a long A profound challenge—and it goes a long way to explaining Apple’s excellence. way to explaining Apple’s excellence. “Huge degree of caring” and exposure “Huge degree of caring” and exposure to “the best things humans have done.” to “the best things humans have done.” Why shouldn’t this standard apply to Why shouldn’t this standard apply to everything that every one of us does?everything that every one of us does?

2.18 2.18 ORGANIZATIONS ORGANIZATIONS THAT ARE AS THAT ARE AS

EXCELLENT/WELL EXCELLENT/WELL DESIGNED AS AN DESIGNED AS AN

APPLE DEVICEAPPLE DEVICE

““New technology, by itself, has little economic New technology, by itself, has little economic benefit. … The economic benefits arise not from benefit. … The economic benefits arise not from

innovation itself, but from the entrepreneurs who innovation itself, but from the entrepreneurs who eventually discover ways to put innovation to eventually discover ways to put innovation to

practical use—practical use—and, and, most criticallmost critically, y, from the from the ororgganizational anizational chanchangges throues througgh which h which

businesses reshabusinesses reshappe e themselvesthemselves to take to take advantage of new advantage of new

technology.”technology.” —Marc Levinson,—Marc Levinson, The Box: How The Box: How the Shipping Container Made the World Smaller and the the Shipping Container Made the World Smaller and the

World Economy BiggerWorld Economy Bigger

The shipping container only “changed the The shipping container only “changed the world” … world” … decadesdecades ... after its creation. First ... after its creation. First “everything” had to change. That is, the “everything” had to change. That is, the entire nature of ports and the entire nature of ports and the transportation system writ large. transportation system writ large.

Which is to say, it’s the subsequent and Which is to say, it’s the subsequent and painstaking and political and “non-instant” painstaking and political and “non-instant” … … ORGANIZATIONALORGANIZATIONAL ARRANGEMENTSARRANGEMENTS ... ... that make all the difference, not the that make all the difference, not the technology per se. technology per se.

““Management” as conventionally perceived is a dreary/ Management” as conventionally perceived is a dreary/ misleading/constrained word. E.g., mgt/standard usage = misleading/constrained word. E.g., mgt/standard usage =

Shouting orders in the slave galley. Shouting orders in the slave galley.

Consider, please, a more encompassing/more accurate Consider, please, a more encompassing/more accurate definition:definition:

“‘“‘Management’ is the Management’ is the arrangement and animation arrangement and animation

of human affairs in of human affairs in pursuit of desired pursuit of desired

outcomes.”outcomes.”

Management is Management is notnot about Theory X vs. Theory Y/“top down” about Theory X vs. Theory Y/“top down” vs. “bottom up.” Management vs. “bottom up.” Management isis about the essence of human about the essence of human

behavior (Drucker called it a “liberal art”), how we behavior (Drucker called it a “liberal art”), how we fundamentally arrange our collective efforts in order to fundamentally arrange our collective efforts in order to

survive, adapt—and, one hopes, thrive. survive, adapt—and, one hopes, thrive. (E.g., Hall of Fame (E.g., Hall of Fame management document: Constitution of the United States of management document: Constitution of the United States of

America.)America.)

As Peter Drucker, in particular, taught us, management is As Peter Drucker, in particular, taught us, management is

an an artformartform of the utmost importance to humanity— of the utmost importance to humanity—consider the U.S. Constitution, one of the greatest consider the U.S. Constitution, one of the greatest management documents in human history. (Yes, it management documents in human history. (Yes, it isis a a “management document.”) “management document.”)

We think of the care and craft that goes into the design We think of the care and craft that goes into the design of, say, an Apple product. But we don’t typically think in of, say, an Apple product. But we don’t typically think in the same way about “management architecture.” That is the same way about “management architecture.” That is a mistake of the first order.a mistake of the first order.

Arrangement of human affairs to produce Arrangement of human affairs to produce a desired and sustainable result is by a desired and sustainable result is by definition Leadership Team Task #1definition Leadership Team Task #1.. I am I am urging you to think about your organizational urging you to think about your organizational architecture the same way Steve Jobs thought about one architecture the same way Steve Jobs thought about one of his landmark Apple devices.of his landmark Apple devices.

In In Good BusinessGood Business, , Mihaly Csikszentmihalyi (the Mihaly Csikszentmihalyi (the FLOW FLOW guru guru ) argues persuasively that business has become the ) argues persuasively that business has become the center of society. As such, an obligation to community is front center of society. As such, an obligation to community is front & center. Business as societal bedrock, per Csikszentmihalyi, & center. Business as societal bedrock, per Csikszentmihalyi,

has the RESPONSIBILITY to increase the … has the RESPONSIBILITY to increase the … “SUM “SUM OF HUMAN WELL-OF HUMAN WELL-BEING.”BEING.” Business is Business is NOTNOT “part of the “part of the

community.” In terms of how adults collectively spend their community.” In terms of how adults collectively spend their

waking hours: Business waking hours: Business ISIS the community. And should act the community. And should act

accordingly. The (REALLY) good news: Community accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way?) to have mindedness is a great way (the BEST way?) to have spirited/committed/customer-centric work force—and, spirited/committed/customer-centric work force—and, ultimately, increase (maximize?) growth and profitability.ultimately, increase (maximize?) growth and profitability.

BUSINESS IS BUSINESS IS NOTNOT “PART OF THE “PART OF THE COMMUNITY.COMMUNITY.

BUSINESS BUSINESS ISIS THE COMMUNITY. THE COMMUNITY.HENCE BUSINESS ENTAILS AN HENCE BUSINESS ENTAILS AN ENORMOUS ENORMOUS MORALMORAL COMPONENT. COMPONENT...

I love this!I love this!(And “buy it” 100%.)(And “buy it” 100%.)

Read it. Read it. Re-read it. Re-read it. Think about it. Think about it. Discuss it. Discuss it. Act on it.Act on it.

Business’ Moral Imperative:Business’ Moral Imperative:

““[INCREASE [INCREASE THE] SUM OF THE] SUM OF HUMAN WELL-HUMAN WELL-

BEING.”BEING.”Source: Source: Good BusinessGood Business, Mihaly Csikszentmihalyi, Mihaly Csikszentmihalyi

Yup.Yup.Wow.Wow.(Up for it?*)(Up for it?*)(*Actually, you have no choice.)(*Actually, you have no choice.)

((NowNow more than ever—e.g., tech more than ever—e.g., tech

driven changes are playing havoc with driven changes are playing havoc with employment, and we’re barely at the employment, and we’re barely at the beginning of the beginning.)beginning of the beginning.)

2.19 2.19 SERVICESERVICE..PERIODPERIOD..

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

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

PERIOD.PERIOD.(And if this is NOT your measure …)(And if this is NOT your measure …)

EXCELLENCE. Always.EXCELLENCE. Always.If not EXCELLENCE, what?If not EXCELLENCE, what?

If not EXCELLENCE now, when?If not EXCELLENCE now, when?

EXCELLENCE is not an "aspiration."EXCELLENCE is not an "aspiration."EXCELLENCE is not a "journey."EXCELLENCE is not a "journey."

EXCELLENCE is the next five minutes.EXCELLENCE is the next five minutes.

Organizations exist to SERVE. Period.Organizations exist to SERVE. Period.Leaders exist to SERVE. Period.Leaders exist to SERVE. Period.

SERVICE is a beautiful word.SERVICE is a beautiful word.SERVICE is character, community, commitment. SERVICE is character, community, commitment.

(And profit.)(And profit.)

SERVICE is a beautiful word. SERVICE is a beautiful word. SERVICE is not "Wow." SERVICE is not "Wow."

SERVICE is not "raving fans."SERVICE is not "raving fans." SERVICE is not "a great experience." SERVICE is not "a great experience."

Service is "just" that—Service is "just" that—SERVICESERVICE..

My take on “all this” … understanding the My take on “all this” … understanding the role of enterprise by combining the call to role of enterprise by combining the call to SERVESERVE and the aspiration to and the aspiration to EXCELLENCEEXCELLENCE..

((In Search of ExcellenceIn Search of Excellence, my 1982 book with Bob , my 1982 book with Bob Waterman, is generally regarded as the book that married Waterman, is generally regarded as the book that married the idea of Excellence per se to the practice of business. the idea of Excellence per se to the practice of business. The quest for Excellence is the unyielding bedrock of The quest for Excellence is the unyielding bedrock of enterprise—as we saw it. And to that I now say with enterprise—as we saw it. And to that I now say with passion and urgency … add passion and urgency … add serviceservice to excellence at the to excellence at the “co-top” of the veeeeery short list.) “co-top” of the veeeeery short list.)

2.202.20 EXCELLENCE. EXCELLENCE.

Not.Not.

““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 he have something he will never have …will never 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)

If there is a “must read” book in the current If there is a “must read” book in the current century that examines the moral role of century that examines the moral role of business in society, it’s Jack Bogle’s business in society, it’s Jack Bogle’s

Enough. The Measures of Money, Enough. The Measures of Money, Business, and LifeBusiness, and Life..

(The Vonnegut-Heller exchange launches(The Vonnegut-Heller exchange launches the book.) the book.)

““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 EnoughToo Much Focus on Things, Not Enough

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

““Too Much ‘Success,’ Not Enough Character”Too Much ‘Success,’ Not Enough Character”

Source: Jack Bogle, Source: Jack Bogle, Enough!Enough! (chapter titles) (chapter titles)

Revealing—and compelling—chapter titles Revealing—and compelling—chapter titles from from Enough. The Measures of Money, Enough. The Measures of Money, Business, and LifeBusiness, and Life..

Read it.Read it.P-L-E-A-S-E.P-L-E-A-S-E.


Not.Not.

There is a great deal of mythology around There is a great deal of mythology around “excellence”—a lot of stuff that just ain’t true.“excellence”—a lot of stuff that just ain’t true.

Here’s a sample.Here’s a sample.

Five (Five (VERY) ) Questionable Questionable

“Foundation Myths”“Foundation Myths”

Five Sustaining—and Very Dangerous—MythsFive Sustaining—and Very Dangerous—Myths

1. 1. Star CEOs drive big enterprise Star CEOs drive big enterprise performance differencesperformance differences2. 2. CEOs CEOs must must maximize maximize shareholder valueshareholder value3. 3. Stars are stars and maintain Stars are stars and maintain their stellar performance in new their stellar performance in new settingssettings4. 4. It’s 2015, dude: hustle beats It’s 2015, dude: hustle beats patiencepatience5. 5. Introverts are not my cup of tea: Introverts are not my cup of tea: hey, noisy times call for noisy hey, noisy times call for noisy peoplepeople

FIVE MYTHS, FIVE BOOKSFIVE MYTHS, FIVE BOOKS

*Michael Dorff, *Michael Dorff, Indispensable and Other Indispensable and Other MythsMyths*Lynn Stout, *Lynn Stout, The Shareholder Value Myth: The Shareholder Value Myth: How Putting Shareholders First Harms How Putting Shareholders First Harms Investors, Corporations, and the PublicInvestors, Corporations, and the Public *Boris Groysberg, *Boris Groysberg, Chasing Stars: The Myth ofChasing Stars: The Myth of Talent and the Portability of PerformanceTalent and the Portability of Performance**Frank Partnoy, Frank Partnoy, Wait: The Art and ScienceWait: The Art and Science of Delayof Delay*Susan Cain, *Susan Cain, Quiet: The Power of IntrovertsQuiet: The Power of Introverts in a World That Can’t Stop Talkingin a World That Can’t Stop Talking

Five relatively new—and superbly researched—Five relatively new—and superbly researched—books attack five management/performance books attack five management/performance Foundation Myths.Foundation Myths.

2.21.1 2.21.1 The “Big The “Big Two” CEO Two” CEO Myths/#1:Myths/#1:Do CEOs Do CEOs Matter?Matter?

High-Impact CEOs?High-Impact CEOs?

““The belief that CEOs are the most important cause of The belief that CEOs are the most important cause of corporate performance is deep and widespread but corporate performance is deep and widespread but

largely lacks empirical support. Even fervent advocates largely lacks empirical support. Even fervent advocates of CEO power have calculated the CEO’s impact as small of CEO power have calculated the CEO’s impact as small

and easily swamped by environmental and company-and easily swamped by environmental and company-

specific variables. … specific variables. … The reality is that The reality is that for the vast majority of for the vast majority of

companies, one competent CEO companies, one competent CEO is very much like another.is very much like another. … The … The

causation myth’s durability is also due to our tendency causation myth’s durability is also due to our tendency to credit the leader for a group’s success or failure. Any to credit the leader for a group’s success or failure. Any

number of studies have demonstrated that subjects number of studies have demonstrated that subjects wrongly assign responsibility to a group’s leader even wrongly assign responsibility to a group’s leader even

when the true cause was truly something else.” when the true cause was truly something else.”

——Michael Dorff, Michael Dorff, Indispensable and Other MythsIndispensable and Other Myths

High-Impact CEOs?High-Impact CEOs?““Michael Dorff, author of Michael Dorff, author of Indispensable and Indispensable and

Other MythsOther Myths, told me that with large, , told me that with large, established companies, ‘It’s hard to showestablished companies, ‘It’s hard to show

that picking one qualified CEO over another that picking one qualified CEO over another has a major impact on performance.’ Indeed, a has a major impact on performance.’ Indeed, a major study by the economists Xavier Gabaixmajor study by the economists Xavier Gabaix and Augustin Landier, who happen to believe and Augustin Landier, who happen to believe

that current compensation levels are that current compensation levels are economically efficient, found that if the economically efficient, found that if the

company with the 250company with the 250thth most talented CEO most talented CEO [by economic measures] suddenly managed to [by economic measures] suddenly managed to

hire the most talented CEO, its value would hire the most talented CEO, its value would

increase by a mere increase by a mere 0.016%0.016%.”.” ——James Surowiecki, “Why CEO Pay Reform Failed,”James Surowiecki, “Why CEO Pay Reform Failed,” The New Yorker, The New Yorker, 0420.150420.15

Throw in the towel? Leaders don’t make a Throw in the towel? Leaders don’t make a difference? Not the point. But it is a cautionary difference? Not the point. But it is a cautionary tale. The answer to every problem is not to seek tale. The answer to every problem is not to seek “the tall man on the white horse” to save the “the tall man on the white horse” to save the day. Life is a lot more ragged than that.day. Life is a lot more ragged than that.

Carry on. Carry on.

Muddle through.Muddle through.(And maybe try a few of the tactics offered up in (And maybe try a few of the tactics offered up in this chapter?!)this chapter?!)

2.21.2 2.21.2 The “Big Two” The “Big Two” CEO Myths/#2:CEO Myths/#2:

Must CEOs Must CEOs Maximize Maximize

Shareholder Value?Shareholder Value?

““The notion that corThe notion that corpporate law orate law rereqquires directors, executives, and uires directors, executives, and emempploloyyees to maximize shareholder ees to maximize shareholder wealth simwealth simppllyy isn’t true isn’t true. There is no . There is no

solid legal support for the claim solid legal support for the claim that directors and executives in that directors and executives in U.S. public corporations have an U.S. public corporations have an

enforceable legal duty to maximize enforceable legal duty to maximize shareholder wealth. shareholder wealth. The idea is The idea is

fablefable.”.” —Lynn Stout, professor of corporate and business law, —Lynn Stout, professor of corporate and business law, Cornell Law school, in Cornell Law school, in The Shareholder Value Myth: How Putting The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the PublicShareholders First Harms Investors, Corporations, and the Public

““Courts uniformly refuse to actually Courts uniformly refuse to actually impose sanctions on directors or impose sanctions on directors or

executives for failing to pursue one executives for failing to pursue one purpose over another. In particular, purpose over another. In particular, courts refuse to hold directors of courts refuse to hold directors of

public corporations legally public corporations legally accountable for failing to maximize accountable for failing to maximize

shareholder wealth.”shareholder wealth.” —Lynn Stout,—Lynn Stout, professor of corporate and business law, Cornell Law school, professor of corporate and business law, Cornell Law school,

in in The Shareholder Value Myth: How Putting Shareholders FirstThe Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public Harms Investors, Corporations, and the Public

Lynn Stout’s slim volume is a worthy read. That Lynn Stout’s slim volume is a worthy read. That is … a first-order myth buster.is … a first-order myth buster.

““On the face of it, On the face of it, shareholder value is the shareholder value is the

dumbest idea in the world. dumbest idea in the world. Shareholder value is a Shareholder value is a

result, not a strategy. … result, not a strategy. … Your main constituencies Your main constituencies are your employees, your are your employees, your

customers and your customers and your products.”products.”

——Jack Welch, Jack Welch, FTFT, 0313.09, page 1 , 0313.09, page 1

Jack Welch? Jack Welch?

THETHE … Jack Welch? … Jack Welch?

““Shareholder Value Jack”?Shareholder Value Jack”?

YUP.YUP.

2.21.3 2.21.3 The The “Superstar” “Superstar”

MythMyth

““Reliance on stars is a highlReliance on stars is a highlyy s sppeculative eculative ppractice, ractice, since we reallsince we reallyy don’t know ver don’t know veryy much about what much about what

drives outstandindrives outstandingg individual individual pperformanceerformance. … . …

Chapter 3 presents our most central and globalChapter 3 presents our most central and global finding about the effects of changing employers on star finding about the effects of changing employers on star

analysts’ performance.analysts’ performance. In short, exceptional In short, exceptional performance is far less portable than is performance is far less portable than is

widely believed. Global stars experienced widely believed. Global stars experienced an immediate degradation in an immediate degradation in

performance. Even after five years at a performance. Even after five years at a new firm, new firm,

star analysts who changed employers star analysts who changed employers underperformed comparable star underperformed comparable star

analysts who stayed put.”analysts who stayed put.”

—Boris Groysberg, professor of business administration, Harvard, —Boris Groysberg, professor of business administration, Harvard, Chasing Stars: The Myth of Talent and the Portability of PerformanceChasing Stars: The Myth of Talent and the Portability of Performance

Another truism bites the dust.Another truism bites the dust.

““Reliance on stars is a highlReliance on stars is a highlyy s sppeculative eculative ppractice, ractice, since we reallsince we reallyy don’t know ver don’t know veryy much about what much about what

drives outstandindrives outstandingg individual individual pperformanceerformance. … . …

Chapter 7 looks at the phenomenon of hiring entireChapter 7 looks at the phenomenon of hiring entire

teams. … teams. … Compared to stars who Compared to stars who moved alone, those who moved in moved alone, those who moved in

teams teams did not suffer a performance did not suffer a performance

decline, suggesting that team-decline, suggesting that team-specific specific

skills have a marked effect skills have a marked effect on performance.” on performance.”


Context matters:Context matters:THE BIG “DUH”!THE BIG “DUH”!

““Reliance on stars is a highlReliance on stars is a highlyy s sppeculative eculative ppractice, since weractice, since we reall reallyy don’t know ver don’t know veryy much about what drives outstandin much about what drives outstandingg

individual individual pperformanceerformance. … . …

Chapter 8 looks at portability of performance in individualChapter 8 looks at portability of performance in individual terms by examining the role of gender. Our data produced terms by examining the role of gender. Our data produced

an unexpected finding: an unexpected finding: Star women’s skills Star women’s skills were more portable than those of were more portable than those of their male counterparts.their male counterparts. Women in a Women in a male-dominated profession appeared to nurture stronger male-dominated profession appeared to nurture stronger

external (and therefore portable) relationships in the face of external (and therefore portable) relationships in the face of institutional barriers to creating strong in-house relationships. institutional barriers to creating strong in-house relationships. When they moved, therefore, they could take their outside (not When they moved, therefore, they could take their outside (not firm-specific) network with them. They suffered less from the firm-specific) network with them. They suffered less from the loss of firm-specific relationships that never developed in the loss of firm-specific relationships that never developed in the

first place. first place. Also, women were apparently more strategic than men about Also, women were apparently more strategic than men about

changing jobs. …”changing jobs. …”


Gender matters given institutional realities:Gender matters given institutional realities:THE BIG “DUH” II.THE BIG “DUH” II.

2.21.4 2.21.4 Wait: The Wait: The Art and Art and Science Science

of Delayof Delay —Frank Partnoy—Frank Partnoy

I can hardly exaggerate the degree to which I can hardly exaggerate the degree to which this book impacted me. I have instinctively this book impacted me. I have instinctively bought into the idea (certainty) that “Wild bought into the idea (certainty) that “Wild times/‘Moore’s Law’” means our default times/‘Moore’s Law’” means our default position must always be … position must always be … racerace. .

Haste is hardly un-important. Partnoy Haste is hardly un-important. Partnoy challenges us. In fact, with so much change in challenges us. In fact, with so much change in the air, it is, counter-intuitively, the the air, it is, counter-intuitively, the quintessential time to strategically … quintessential time to strategically … SLOW SLOW DOWN (AND THINK) BEFORE WE ACTDOWN (AND THINK) BEFORE WE ACT..

““The The central central elementelement of good of good

decision-making is a decision-making is a person’s ability to person’s ability to manage delay.”manage delay.”

——Frank Partnoy, Frank Partnoy, Wait: The Art and Science of DelayWait: The Art and Science of Delay

““Central element”/“define who we are” Central element”/“define who we are” is strong and provocative language. At is strong and provocative language. At

the least, (the least, (VERYVERY) worth thinking ) worth thinking about.about.

““The essence of The essence of intelligence would seem intelligence would seem to be in knowing when to to be in knowing when to think and act quickly, and think and act quickly, and

knowing when to think knowing when to think and act slowly.”and act slowly.” —Robert Sternberg, in Frank —Robert Sternberg, in Frank

Partnoy, Partnoy, Wait: Wait: The Art and Science of DelayThe Art and Science of Delay

““Thinking about the role of Thinking about the role of delay is a profound and delay is a profound and

fundamental part of being fundamental part of being

human. … human. … The amount of The amount of time we take to reflect on time we take to reflect on decisions will define who decisions will define who we arewe are.. Is our mission simply Is our mission simply to be another animal, or are we to be another animal, or are we here for something more?”here for something more?” —Frank —Frank

Partnoy, Partnoy, Wait: Wait: The Art and Science of DelayThe Art and Science of Delay

““Life might be a race Life might be a race against time, but is against time, but is

enriched when we rise enriched when we rise above our instincts and above our instincts and

stop the clock to process stop the clock to process and understand what we and understand what we

are doing and why.”are doing and why.”


More … VERY … strong language.More … VERY … strong language.Once again, worthy of great reflection.Once again, worthy of great reflection.

SPEED SAVES.SPEED SAVES.SPEED KILLS.SPEED KILLS.

““Given the fast pace of modern life, Given the fast pace of modern life, most of us tend to react too quickly. most of us tend to react too quickly.

… Technology surrounds us, … Technology surrounds us, speeding us up. We feel its crush speeding us up. We feel its crush

every day. Yet the best time every day. Yet the best time managers are comfortable pausing managers are comfortable pausing

for as long as necessary before they for as long as necessary before they act, even in the face of the most act, even in the face of the most

pressing decisions.. Some seem to pressing decisions.. Some seem to slow slow

down time. ...”down time. ...” —Frank Partnoy, —Frank Partnoy, Wait: The Art and Science of DelayWait: The Art and Science of Delay

““In most situations, we should In most situations, we should take more time than we do. The take more time than we do. The longer the wait, the better. And longer the wait, the better. And

once we have a sense of how once we have a sense of how long a decision should take, we long a decision should take, we

generally should delay the generally should delay the moment of decision until the moment of decision until the

last possible instant.”last possible instant.” —Frank Partnoy, —Frank Partnoy, Wait: Wait:

The Art and Science of DelayThe Art and Science of Delay

““Researchers have found again Researchers have found again and again that children who can and again that children who can

delay their reactions end up delay their reactions end up happier and more successful happier and more successful

than their snap-reacting than their snap-reacting playmates. playmates. They are superior at They are superior at

building social skills, feeling building social skills, feeling empathy, and resolving empathy, and resolving

conflicts, and they have higher conflicts, and they have higher cognitive ability.”cognitive ability.” —Frank Partnoy, —Frank Partnoy, Wait: The Art and Wait: The Art and

Science of DelayScience of Delay

““When we thin slice, we reach When we thin slice, we reach powerful unconscious powerful unconscious

conclusions about others in conclusions about others in seconds. seconds.

Unfortunately, they Unfortunately, they are often wrong.”are often wrong.” — —

Frank Partnoy, Frank Partnoy, Wait: The Art and Science of DelayWait: The Art and Science of Delay

““[Legendary fighter pilot and military strategist John][Legendary fighter pilot and military strategist John] Boyd Boyd could outmaneuver his could outmaneuver his

opponents, not by opponents, not by acting first, but by acting first, but by

waiting for his opponent waiting for his opponent to act first.”to act first.” —Frank Partnoy, —Frank Partnoy, Wait: The Art and Science Wait: The Art and Science

of Delayof Delay

“ … “ … computer programmer, computer programmer, investor, writer, painter Paul investor, writer, painter Paul

Graham wrote, Graham wrote, ‘The most ‘The most impressive people I impressive people I know are all terrible know are all terrible procrastinators.’procrastinators.’ ” ”


I OFFER NO COURSE OF ACTION.I OFFER NO COURSE OF ACTION.I WAS TAKEN ABACK.I WAS TAKEN ABACK.PARTNOY HAS MADE ME REFLECT.PARTNOY HAS MADE ME REFLECT.WHO COULD ASK FOR MORE?WHO COULD ASK FOR MORE?

Over to you …Over to you …

2.21.5 2.21.5 Quiet: The Power Quiet: The Power of Introverts in a of Introverts in a World That Can’t World That Can’t Stop Talking Stop Talking —Susan Cain—Susan Cain

““We live with a value system that I call the Extrovert Ideal—the We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and omnipresent belief that the ideal self is gregarious, alpha, and

comfortable in the spotlight. The archetypal extrovert prefers action to comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We think contemplation, risk-taking to heed-taking, certainty to doubt. … We think

that we value individuality, but all too often we admire one type of that we value individuality, but all too often we admire one type of

individual … Introversion is now a second-class personality trait. …individual … Introversion is now a second-class personality trait. … The The Extrovert Ideal has been documented in many studies. Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as smarter, Talkative people, for example, are rated as smarter,

better looking, more interesting, and more desirable as better looking, more interesting, and more desirable as friends. Velocity of speech counts as well as volume: We friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and likeable than rank fast talkers as more competent and likeable than

slow ones. But we make a grave mistake to embrace the slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly.Extrovert Ideal so unthinkingly. … As the science journalist … As the science journalist

Winifred Gallagher writes, ‘The glory of the disposition that stops to Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long consider stimuli rather than rushing to engage with them is its long

association with intellectual and artistic achievement. Neither E = mc association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like finance, politics, and activism, obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they

did not in spite of but because of their introversion.”did not in spite of but because of their introversion.”

——Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

Susan Cain’s Susan Cain’s Quiet: The Power of Quiet: The Power of Introverts in a World That Can’t Introverts in a World That Can’t Stop TalkingStop Talking made a profound impact made a profound impact on me. We tend to favor the “noisy ones”—on me. We tend to favor the “noisy ones”—and thence downplay the power of the 50% and thence downplay the power of the 50% amongst us who are “the quiet ones.”amongst us who are “the quiet ones.”

I.e., we blow off (or, at least, undervalue) I.e., we blow off (or, at least, undervalue)

almost almost 50%50% 0f the talent pool. 0f the talent pool.

Talk about a “missed opportunity”Talk about a “missed opportunity”!!

““Among the most effective leaders I have Among the most effective leaders I have encountered and worked with in half a century, encountered and worked with in half a century, some have locked themselves into their offices some have locked themselves into their offices and others were ultra-gregarious. Some were and others were ultra-gregarious. Some were

quick and impulsive, some studied the situation quick and impulsive, some studied the situation

and took forever to come to a decision. and took forever to come to a decision. The The one and only personality trait the one and only personality trait the effective ones did have in common effective ones did have in common was something they did was something they did notnot have: have:

They had little or no ‘charisma,’ and They had little or no ‘charisma,’ and little use for the term.”little use for the term.” —Peter Drucker, in —Peter Drucker, in Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““Most inventors and engineers I have met Most inventors and engineers I have met are like me—they’re shy and they live in are like me—they’re shy and they live in their heads. … They work best when they their heads. … They work best when they are alone , and can control an invention’s are alone , and can control an invention’s

design. … I’m going to give you some design. … I’m going to give you some advice that might be hard to take: advice that might be hard to take:

Work alone.Work alone. You’re going to You’re going to

be best able to design revolutionary be best able to design revolutionary products and features. …”products and features. …” —from Steve Wozniak, in —from Steve Wozniak, in

Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““If we assume that quiet If we assume that quiet and loud people have and loud people have

roughly the same number roughly the same number of good (and bad) ideas, of good (and bad) ideas, then we should worry if then we should worry if

the louder and more the louder and more forceful people always forceful people always

carry the day.”carry the day.” — —Susan Cain, Susan Cain,


““Open-plan workers are more likely to suffer Open-plan workers are more likely to suffer from high blood pressure and elevated stress from high blood pressure and elevated stress levels and get the flu; they argue more withlevels and get the flu; they argue more with

their colleagues. … Introverts seem to their colleagues. … Introverts seem to know these things intuitively and resist know these things intuitively and resist

being herded together. …”being herded together. …”

Video game design company Backbone Video game design company Backbone Entertainment’s creative director:Entertainment’s creative director: “We switched “We switched over to cubicles over to cubicles [from a ‘warehouse’ format][from a ‘warehouse’ format] and and

were worried about it. You’d think inwere worried about it. You’d think in a creative environment people would hate that. a creative environment people would hate that.

But it turns out they prefer having nooks and But it turns out they prefer having nooks and crannies they can hide away in and be awaycrannies they can hide away in and be away

from everybody.”from everybody.”

Source: Susan Cain, Source: Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““The results were unambiguous. The results were unambiguous. The men in 23 of the 24 groups The men in 23 of the 24 groups produced more ideas when they produced more ideas when they

worked on their own than when they worked on their own than when they worked worked

as a group. They also produced as a group. They also produced ideas of equal or higher quality ideas of equal or higher quality when working individually. Andwhen working individually. And

the advertising executives werethe advertising executives were no better at group work than no better at group work than

than the presumably introverted than the presumably introverted research scientists.”research scientists.” ——Susan Cain, Susan Cain,


““ [Adam Grant][Adam Grant] predicted extroverts would predicted extroverts would be better telemarketers, but it be better telemarketers, but it

turned out there was zero turned out there was zero correlation extroversion levels and correlation extroversion levels and

cold-calling prowess. ‘The cold-calling prowess. ‘The extroverts would make these extroverts would make these

wonderful calls, but they’d often be wonderful calls, but they’d often be distracted and lose focus. The distracted and lose focus. The introverts would talk quietly, introverts would talk quietly,

but boom, boom, boom they were but boom, boom, boom they were making the calls; they were focused making the calls; they were focused

and determined.’”and determined.’” ——Susan Cain, Susan Cain,


““In a gentle In a gentle way, you can way, you can

shake the shake the world.”world.” —Gandhi, from —Gandhi, from Susan Cain, Susan Cain,


Conversational pairings/experiment:Conversational pairings/experiment: “The “The introverts and extraverts introverts and extraverts

participated about equally, participated about equally, giving the lie to the idea that giving the lie to the idea that introverts talk less. But the introverts talk less. But the

introvert pairs tended to focus introvert pairs tended to focus on one or two serious subjects on one or two serious subjects

of conversation, while the of conversation, while the extrovert pairs lighter-hearted extrovert pairs lighter-hearted and wider-ranging topics.”and wider-ranging topics.” — —Susan Cain, Susan Cain,


““If you are a manager, remember that one third to one If you are a manager, remember that one third to one half of your workforce is probably introverted, whether half of your workforce is probably introverted, whether they appear that way or not. Think twice about how you they appear that way or not. Think twice about how you

design your organization’s office space. Don’t expect design your organization’s office space. Don’t expect introverts to get jazzed up about open office plans or, for introverts to get jazzed up about open office plans or, for that matter, lunchtime birthday parties or teambuilding that matter, lunchtime birthday parties or teambuilding

retreats. Make the most of introverts’ strengths— retreats. Make the most of introverts’ strengths— these these are the are the ppeoeopple who can helle who can helpp you think you think

deedeepply, strately, strateggize, solve comize, solve compplex lex pproblems, and sroblems, and sppot canaries in ot canaries in yyour coal our coal

minemine. .

““Also remember the dangers of the new groupthink. If it’s Also remember the dangers of the new groupthink. If it’s creativity you’re after, ask your employees to solve creativity you’re after, ask your employees to solve problems alone before sharing their ideas … Don’t problems alone before sharing their ideas … Don’t

mistake assertiveness or elegance for good ideas. If you mistake assertiveness or elegance for good ideas. If you have a proactive workforce (and I hope you do), have a proactive workforce (and I hope you do),

remember that they may perform better under an remember that they may perform better under an introverted leader than under an extroverted or introverted leader than under an extroverted or

charismatic one.”charismatic one.” — —Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““The next time you see a The next time you see a person with a composed face person with a composed face and a soft voice, remember and a soft voice, remember

that inside her mind she that inside her mind she might be solving an might be solving an

equation, composing a equation, composing a sonnet, designing a hat. She sonnet, designing a hat. She might, that is, be deploying might, that is, be deploying

the power of quiet.”the power of quiet.” — —Susan Cain, Susan Cain,


I repeat, we more often than not blow off I repeat, we more often than not blow off half the population of candidates for hiring—half the population of candidates for hiring—and subsequently promotion.and subsequently promotion.


Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

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

EXCELLENCE is EXCELLENCE is a a PERSONALPERSONAL choice … choice … NOTNOT an institutional an institutional

choice!choice!

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

EXCELLENCE EXCELLENCE isis the ultimate short- the ultimate short-term strategy. EXCELLENCE term strategy. EXCELLENCE isis … …

THETHE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

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



Documents

Tom Peters’ EXCELLENCE ! “THE WORKS” 1966-2015 Chapter TWO: EXCELLENCE 30 November 2015 (10+ years of presentation slides at tompeters.com)