Tom Peters’Tom Peters’

Necessary Necessary Revolution:Revolution:

People & ProfitsPeople & ProfitsCirca 2025Circa 2025

The Art of Dialogue/Dedee Shattuck Gallery/10 January 2015The Art of Dialogue/Dedee Shattuck Gallery/10 January 2015

Slides at tompeters.comSlides at tompeters.com(Also see our 23-part Master Compendium at excellencenow.com.)(Also see our 23-part Master Compendium at excellencenow.com.)

Up To $250 To Spend On Up To $250 To Spend On All Ships In All Destinations. All Ships In All Destinations.

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position of text, imagesposition of text, images

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““A creative person is good but random. A creative person is good but random. We’ve taken the randomness out by We’ve taken the randomness out by building an ontology of language.”building an ontology of language.”

——Lawrence Whittle, head of salesLawrence Whittle, head of sales

Source: Source: Wall Street Journal/ Wall Street Journal/ 0825.14/ 0825.14/ “It’s Finally Time to Take AI Seriously”“It’s Finally Time to Take AI Seriously”

SENSOR PILLS:SENSOR PILLS: “… Proteus Digital Health is one of “… Proteus Digital Health is one of

several pioneers in sensor-based health technology. They make a several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her database where a health technician can verify if a patient has taken her

or his medications. or his medications. “This is a bigger deal than it may “This is a bigger deal than it may seem. In 2012, it was estimated that people not seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 taking their prescribed medications cost $258 BILLION in emergency room visits, BILLION in emergency room visits, hospitalization, and doctor visits. An average of hospitalization, and doctor visits. An average of 130,000 Americans die each year because they 130,000 Americans die each year because they don’t follow their prescription regimens closely don’t follow their prescription regimens closely enough.”enough.” (The FDA approved placebo testing in April 2012; sensor (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.)pills are ticketed to come to market in 2015 or 2016.)Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data, and the Future of PrivacyAge of Context: Mobile, Sensors, Data, and the Future of Privacy

Betterment/Betterment/““Ambitions of Ambitions of

a Robo a Robo Adviser”Adviser”

——FT/1217.14/ FT/1217.14/ “could put tens of thousands of U.S. investment

advisors out of their jobs”

““Just like other members of Just like other members of the board, the board, the althe alggorithm orithm

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

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

board.”board.”

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

““Las Vegas Company Could 3D Las Vegas Company Could 3D Print Your Next Car: Print Your Next Car:

Customers could pick up newly Customers could pick up newly printed car within 24 hours” printed car within 24 hours” ——

Headline, Headline, Las Vegas Sun/Las Vegas Sun/ 1225.14 1225.14

“This Bio-Drone Grows Itself, And Then Melts Into A Puddle

Of Sugar When It's Done Flying”

——Headline, Headline, Fast CompanyFast Company, 08 December 2014, 08 December 2014

NOT DEAD YETNOT DEAD YET

““[As of 2010], No. 1 [GNP] and the rest are separated not by percentages [As of 2010], No. 1 [GNP] and the rest are separated not by percentages but by factors. The U.S. economy leads China’s and Japan’s, which occupy but by factors. The U.S. economy leads China’s and Japan’s, which occupy

the No. 2 and No. 3 spots, by multiples, not by percentages.the No. 2 and No. 3 spots, by multiples, not by percentages. The The American economy [GNP] is American economy [GNP] is about as big as the next about as big as the next three together—two of which, three together—two of which, Japan and Germany, are allies Japan and Germany, are allies of over sixty years’ standingof over sixty years’ standing.. By way of metaphor, yesterday’s great powers all lived in similar-sized By way of metaphor, yesterday’s great powers all lived in similar-sized apartments on the same floor. In the twenty-first century, the United States apartments on the same floor. In the twenty-first century, the United States occupies the penthouse across the entire sixteenth floor, while China and occupies the penthouse across the entire sixteenth floor, while China and Japan dwell in much more modest places on the seventh and sixth floors; on Japan dwell in much more modest places on the seventh and sixth floors; on the third resides Germany; France and Britain are on the second. India has the third resides Germany; France and Britain are on the second. India has just moved one flight up from the basement.just moved one flight up from the basement.

Source: Josef Joffe, publisher-editor of Die Zeit, in Source: Josef Joffe, publisher-editor of Die Zeit, in The Myth of America’s Decline: Politics, The Myth of America’s Decline: Politics, Economics, and a Half Century of False PropheciesEconomics, and a Half Century of False Prophecies

““Taking the longer view Taking the longer view [espoused by declinists][espoused by declinists], one would , one would

expect that the expect that the American share of American share of the global economythe global economy had been had been

shrinking as the various upstarts kept rising. Over shrinking as the various upstarts kept rising. Over the past 40 years, though, the U.S. share has the past 40 years, though, the U.S. share has

remained remarkably constant. remained remarkably constant. It was 27 It was 27 percent in 1970 and 25.4 percent in 1970 and 25.4 percent in 2012.percent in 2012. So somebody else So somebody else

must be contracting faster than the United States to must be contracting faster than the United States to make room for the expanding rest. The losers in the make room for the expanding rest. The losers in the great GDP race are the two great risers of the past, great GDP race are the two great risers of the past,

Europe and Japan.”Europe and Japan.”

—Josef Joffe, publisher-editor of Die Zeit, in —Josef Joffe, publisher-editor of Die Zeit, in The Myth of America’s Decline: The Myth of America’s Decline: Politics, Economics, and a Half Century of False PropheciesPolitics, Economics, and a Half Century of False Prophecies

ESP/1909-2005:ESP/1909-2005: The advent of mass market cars, commercial The advent of mass market cars, commercial radio, routine long-distance phone calls, portable phones, cell radio, routine long-distance phone calls, portable phones, cell phones, satellites, satellite phone call transmission, movies phones, satellites, satellite phone call transmission, movies with sound, color movies, TV, TV dinners, microwave ovens, with sound, color movies, TV, TV dinners, microwave ovens, commercial use of aircraft, jets, extensive electrification, the commercial use of aircraft, jets, extensive electrification, the Great Depression, Ty Cobb, Babe Ruth, Great Depression, Ty Cobb, Babe Ruth, Walter JohnsonWalter Johnson, Bob , Bob Feller, Barry Bonds, Derek Jeter, the West Coast Offense, the Feller, Barry Bonds, Derek Jeter, the West Coast Offense, the Civil Rights Movement, an African-American POTUS, Gay Pride, Civil Rights Movement, an African-American POTUS, Gay Pride, women win the right to votewomen win the right to vote, Gandhi, Churchill, WWI, WWII, , Gandhi, Churchill, WWI, WWII, the birth of the U.S. Navy Seabees, relativity, the A-bomb, the the birth of the U.S. Navy Seabees, relativity, the A-bomb, the EEC, the EU, the Euro, the Korean War, the Vietnam War, the EEC, the EU, the Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold War, the disintegration of the USSR, Iraq War, 9/11, the Cold War, the disintegration of the USSR, the resurgence of China, the death and resurrection of the resurgence of China, the death and resurrection of Germany and Japan, Germany and Japan, Oklahoma & New Mexico & Arizona & Oklahoma & New Mexico & Arizona & Hawaii & Alaska become statesHawaii & Alaska become states, William Howard Taft* (*, William Howard Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father ), FDR, Ronald Reagan, Father Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, hyperlinks, the iPod, DARPA-net, the Internet, air conditioning, hyperlinks, the iPod, DARPA-net, the Internet, air conditioning, weed whackers, Mickey Mouse, Frank Sinatra, Elvis, the weed whackers, Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, the Model T, the Cadillac Escalade, Nancy Beatles, Madonna, the Model T, the Cadillac Escalade, Nancy Drew, the first four Harry Potter books, antibiotics, MRIs, polio Drew, the first four Harry Potter books, antibiotics, MRIs, polio vaccine, genetic mapping, WWII rockets, space flight, man-to-vaccine, genetic mapping, WWII rockets, space flight, man-to-the-moon, more or less permanent space station.”** the-moon, more or less permanent space station.”** (**But, alas, not long enough to see the Cubs win another World

Series or to take a selfie.)

CONTEXT/CONTEXT/

1,000,001,000,0000

1/721: “The greatest “The greatest shortcoming of the shortcoming of the human race is our human race is our

inability to inability to understand the understand the

exponential exponential function.” function.” —Albert A. Bartlett—Albert A. Bartlett

““What’s really interesting isWhat’s really interesting is

that over the that over the nextnext fivefive y yearsears we’re we’re

going to see every industry exposed to going to see every industry exposed to reinvention of how people put products reinvention of how people put products

and services together, how work is and services together, how work is done, what kind of jobs and skills are done, what kind of jobs and skills are

needed, what can be handled by needed, what can be handled by technology.”technology.”

——John Sculley, startup investor, former Apple CEOJohn Sculley, startup investor, former Apple CEO

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

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

““Since Since 19961996, manufacturing , manufacturing employment in China itself employment in China itself

has actuallyhas actually fallenfallen by an by an

estimatedestimated 2525 p percentercent. . That’s That’s

overover 30,000,00030,000,000 fewerfewer Chinese workers in that sector, Chinese workers in that sector, even while output soared by even while output soared by 70 percent.70 percent. It’s not that American workers It’s not that American workers

[AND Japanese workers][AND Japanese workers] are being replaced by Chinese are being replaced by Chinese workers. It’s that both American workers. It’s that both American andand Chinese workers are Chinese workers are

being made more efficient [replaced] by automation.”being made more efficient [replaced] by automation.”

——Erik Brynjolfsson and Andrew McAfee, Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant TechnologiesWork, Progress, and Prosperity in a time of Brilliant Technologies

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

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

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

((“Almost all health care people get is going to be done by “Almost all health care people get is going to be done by algorithms within a decade or two.”algorithms within a decade or two.”—Michael Vassar/MetaMed—Michael Vassar/MetaMed))

““The combination of new The combination of new market rules and new market rules and new

technology was turning technology was turning the stock market into, in the stock market into, in

effect,effect,

aa warwar oof f robotsrobots.”.” —Michael —Michael

Lewis, “Goldman’s Geek Tragedy,” Lewis, “Goldman’s Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

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

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

… … 33 minutesminutes..

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

operators.” operators.” —Nicholas Carr, the—Nicholas Carr, the Atlantic Atlantic, 11.13, 11.13

““Software is Software is eating the eating the world.”world.” —Marc Andreessen—Marc Andreessen

““Human level capability has Human level capability has not turned out to be a special not turned out to be a special

stopping point from an stopping point from an engineering perspective. …”engineering perspective. …”

——Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot FuturesRobot Futures

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

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

throes of a throes of a Great Restructuring. . Our technologies are racing ahead,Our technologies are racing ahead,

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

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

““The median worker is The median worker is losing the race against losing the race against

the machine.”the machine.” —Erik Brynjolfsson and Andrew McAfee, Race

Against The Machine

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

jobs, jobs, 1969-20091969-2009: :

$33K, $33K, -27%-27%

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

““Ten Million Jobs at Risk from Ten Million Jobs at Risk from Advancing Technology: Up to 35 Advancing Technology: Up to 35 percent of Britain's jobs will be percent of Britain's jobs will be eliminated by new computing eliminated by new computing and robotics technology over and robotics technology over the next 20 years, say expertsthe next 20 years, say experts

[[Deloitte/Oxford University].Deloitte/Oxford University].”” —Headline,—Headline,TelegraphTelegraph (UK), (UK), 11 11 NovemberNovember 20142014

““The machine plays no The machine plays no favorites between manual andfavorites between manual and white collar labor.”white collar labor.” —Norbert Wiener, —Norbert Wiener, 19581958

IoTIoTIoEIoE

Internet of Things/Internet of EverythingInternet of Things/Internet of Everything

IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing Industrial InternetIndustrial Internet Etc.*Etc.* **** ******

*“*“More than More than 50 BILLION50 BILLION connected devices by 2020” —Ericsson connected devices by 2020” —Ericsson

**Estimated **Estimated 212 BILLION212 BILLION connected devices by 2020—IDC connected devices by 2020—IDC

***“By 2025 IoT could be applicable to ***“By 2025 IoT could be applicable to $82 TRILLION$82 TRILLION of output or of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)approximately one half the global economy”—GE (The WAGs to end all WAGs!)

““Ford is working with the Ford is working with the healthcare industry on a healthcare industry on a

solution that would notify a solution that would notify a nearby hospital if you were nearby hospital if you were

having a heart attack in your having a heart attack in your car, which can send an car, which can send an

ambulance before you even ambulance before you even know you’re having one.”know you’re having one.”

——Daniel Kellmereit & Daniel Obodovski,Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things The Silent Intelligence: The Internet of Things

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnologyanotechnology

Walmart SV =Walmart SV =

11,,500500

PersadoPersado (vs. copywriter): (vs. copywriter): emotion words, emotion words, product characteristics, “call to action,” product characteristics, “call to action,”

position of text, imagesposition of text, images

Copywriter/1.3%:Copywriter/1.3%: Up To $250 To Spend On Up To $250 To Spend On All Ships In All Destinations. All Ships In All Destinations.

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Vacation With Us :-)Vacation With Us :-)

““A creative person is good but random. A creative person is good but random. We’ve taken the randomness out by We’ve taken the randomness out by building an ontology of language.”building an ontology of language.”

——Lawrence Whittle, head of salesLawrence Whittle, head of sales

Source: Wall Street Journal/ Source: Wall Street Journal/ 0825.14/ 0825.14/ “It’s Finally Time to Take AI Seriously”“It’s Finally Time to Take AI Seriously”

SILVER LININGSILVER LINING

““We are in no danWe are in no dangger er of runninof runningg out of new out of new combinations trcombinations try.y. Even Even if technology froze today, we have if technology froze today, we have

more possible ways of configuring the more possible ways of configuring the different applications, machines, tasks, different applications, machines, tasks,

and distribution channels to create and distribution channels to create new processes and products than we new processes and products than we could ever exhaust.”could ever exhaust.” ——Erik Brynjolfsson and Andrew Erik Brynjolfsson and Andrew

McAfeeMcAfee, Race Against the Machine: How the Digital Revolution Is Accelerating , Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity and Irreversibly Transforming Employment Innovation, Driving Productivity and Irreversibly Transforming Employment

and the Economy and the Economy

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are beings are

entrepreneursentrepreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed . . . finding our food, feeding employed . . . finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began . . . As civilization came we began . . . As civilization came we suppressed it. We became labor because suppressed it. We became labor because

they stamped us, ‘You are labor.’ We forgot they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”that we are entrepreneurs.” —Muhammad Yunus/

The News Hour/PBS/1122.2006

MORAL MORAL IMPERATIVE/ IMPERATIVE/

HUMAN HUMAN DEVELOPMENTDEVELOPMENT

Multiple Choice ExaminationMultiple Choice Examination

You will you lose your job to: You will you lose your job to: choose one …choose one …

(1)(1) An offshore An offshore contractor?contractor?

(2)(2) A computer?A computer?(3)(3) A robot?A robot?

Source: Dan PinkSource: Dan Pink

MANDATE MANDATE #1#1 circa 2015: circa 2015: Your principal Your principal

moral obligation as a leader [of moral obligation as a leader [of anything at any level] is to develop anything at any level] is to develop the skillset, “soft” and “hard,” of the skillset, “soft” and “hard,” of every one of the people in your every one of the people in your

charge (temporary as well as semi-charge (temporary as well as semi-permanent) to the maximum extent permanent) to the maximum extent of your abilities and resources. The of your abilities and resources. The good news: good news: This is also the #1 mid-This is also the #1 mid-

to to long-termlong-term … g … growth androwth and p profit rofit

maximization stratemaximization strategy!gy!

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

the … the … “SUM OF HUMAN “SUM OF HUMAN WELL-BEING.”WELL-BEING.” Business is Business is

NOTNOT “part of the community.” In terms of how “part of the community.” In terms of how

adults collectively spend their waking hours: Business adults collectively spend their waking hours: Business

ISIS the community. And should act accordingly. The the community. And should act accordingly. The

(REALLY) good news: Community mindedness is a great (REALLY) good news: Community mindedness is a great way (the BEST way?) to have 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 ultimately, increase (maximize?) growth and profitability.profitability.

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

rewarding lives …rewarding lives …

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

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

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

as it sounds—joy is the core belief of our workplace. as it sounds—joy is the core belief of our workplace.

JoyJoy is the reason my is the reason my

company, Menlo Innovations, a customer software company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single defines what we do and how we do it. It is the single shared belief of our entire team.”shared belief of our entire team.”—Richard Sheridan, —Richard Sheridan,

Joy, Inc.: How We Built a Workplace People LoveJoy, Inc.: How We Built a Workplace People Love

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

go to go to SiberiaSiberia?”?”

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

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

Tom PetersTom PetersWorld Strategy ForumWorld Strategy Forum

The New Rules: Reframing CapitalismThe New Rules: Reframing CapitalismSeoul/13 June 2012Seoul/13 June 2012

I was intimidated by the title of a conferenceI was intimidated by the title of a conference I addressed in Seoul, Korea. Namely, I addressed in Seoul, Korea. Namely,

“Reframing capitalism.” And by the fact that a “Reframing capitalism.” And by the fact that a passel of Nobel laureates in economics would passel of Nobel laureates in economics would

be addressing the issue.be addressing the issue. Then it occurred to me Then it occurred to me that the mid- to long-term “reframing” was that the mid- to long-term “reframing” was

more about recasting the nature of work/jobs more about recasting the nature of work/jobs in, for example, the face of 2020’s artificial in, for example, the face of 2020’s artificial

intelligence than about whether the Spanish intelligence than about whether the Spanish bailout is $100 billion or $400 billion—as bailout is $100 billion or $400 billion—as

nontrivial as the latter is. nontrivial as the latter is. I.e., what the hell I.e., what the hell will the world’s four billion or so workers be will the world’s four billion or so workers be doing, say, 10 years from now? I’m not sure doing, say, 10 years from now? I’m not sure

that sophisticated econometric analyses will be that sophisticated econometric analyses will be all that helpful in determining an answer.all that helpful in determining an answer.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

1. “Corporate social responsibility” starts at home—i.e., 1. “Corporate social responsibility” starts at home—i.e., inside the enterprise! MAXIMIZING GDWD/Gross inside the enterprise! MAXIMIZING GDWD/Gross Domestic Workforce Development is the primary source Domestic Workforce Development is the primary source of mid-term and beyond growth and profitability—and of mid-term and beyond growth and profitability—and maximizes national productivity and wealth. (Re maximizes national productivity and wealth. (Re enterprise profitability: If you want to serve the customer enterprise profitability: If you want to serve the customer with uniform Excellence, then you must FIRST effectively with uniform Excellence, then you must FIRST effectively and faithfully serve those who serve the customer—i.e. and faithfully serve those who serve the customer—i.e. your employees, via maximizing tools and professional your employees, via maximizing tools and professional development.)development.)2. Regardless of the transient external situation, 2. Regardless of the transient external situation, development of “human capital” is always the #1 development of “human capital” is always the #1 priority.priority. 3. Three-star generals and admirals (and symphony 3. Three-star generals and admirals (and symphony conductors and sports coaches and police chiefs and fire conductors and sports coaches and police chiefs and fire chiefs) OBSESS about training. Why is it an almost dead chiefs) OBSESS about training. Why is it an almost dead certainty that in a random 30-minute interview you are certainty that in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? unlikely to hear a CEO touch upon this topic? 4. Proposition/axiom: The CTO/Chief TRAINING Officer is 4. Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the enterprise, at least on a arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO or CIO or head of R&D. par with, say, the CFO or CIO or head of R&D.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

5. The training budget takes precedence over the 5. The training budget takes precedence over the capital budget. PERIOD. capital budget. PERIOD. 6. Human capital development should routinely sit atop 6. Human capital development should routinely sit atop any agenda or document associated with enterprise any agenda or document associated with enterprise strategy. strategy. 7. Every individual on the payroll should have a 7. Every individual on the payroll should have a benchmarked professional growth strategy—her or his benchmarked professional growth strategy—her or his leader should be evaluated on the collective leader should be evaluated on the collective imaginativeness and execution of said strategies.imaginativeness and execution of said strategies.8. Given that we ceaselessly lament the “leadership 8. Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just plain vanilla common deficit,” it is imperative, and just plain vanilla common sense, that we maximize the rate of development of sense, that we maximize the rate of development of WOMEN leaders at every level—little if anything has a WOMEN leaders at every level—little if anything has a higher priority.higher priority. 9. Maximum utilization of and continued development of 9. Maximum utilization of and continued development of “older workers” (to age 70—or even beyond?) is a “older workers” (to age 70—or even beyond?) is a source of immense organizational and national growth source of immense organizational and national growth and wealth.and wealth.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

10. The practical key to all human asset development 10. The practical key to all human asset development activities is the 1st-line manager. “Sergeants run the activities is the 1st-line manager. “Sergeants run the Army” is an accurate, commonplace observation Army” is an accurate, commonplace observation supported by development resources; this stricture supported by development resources; this stricture should be applied to all enterprises.should be applied to all enterprises.11. The national education infrastructure—from 11. The national education infrastructure—from kindergarten to continuing adult education—may well kindergarten to continuing adult education—may well be National Priority #1. Moreover, the educational be National Priority #1. Moreover, the educational infrastructure must be altered radically in terms of infrastructure must be altered radically in terms of both content and delivery (e.g., MOOCs) to underpin both content and delivery (e.g., MOOCs) to underpin support for the creative jobs that will be more or less support for the creative jobs that will be more or less the sole basis of future employment and national the sole basis of future employment and national growth and wealth creation.growth and wealth creation.12. Associated with the accelerated priority of the 12. Associated with the accelerated priority of the national education infrastructure is a dramatically national education infrastructure is a dramatically enhanced and appreciated and compensated role for enhanced and appreciated and compensated role for our teachers—the “best and brightest” MUST be our teachers—the “best and brightest” MUST be induced, a la Teach For America, to pursue at least a induced, a la Teach For America, to pursue at least a short-term teaching “career.”short-term teaching “career.”

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

13. The great majority of us work in small 13. The great majority of us work in small enterprises; hence national growth objectives based enterprises; hence national growth objectives based upon human capital development MUST necessarily upon human capital development MUST necessarily extend “downward,” perhaps with governmental extend “downward,” perhaps with governmental incentives, incentives, to even 1-person enterprises. to even 1-person enterprises. 14. Needless to say, the activities imagined here will 14. Needless to say, the activities imagined here will only be possible if aided by a peerless National only be possible if aided by a peerless National Information and Communication Infrastructure.Information and Communication Infrastructure.15. Associated with the above is a RADICAL 15. Associated with the above is a RADICAL reorientation of leadership education and reorientation of leadership education and development—throughout the enterprise/civil development—throughout the enterprise/civil service/ education/continuing education service/ education/continuing education infrastructure.infrastructure.

NOT ABOUT NOT ABOUT PALO ALTOPALO ALTO

““Contrary to conventional Contrary to conventional corporate thinking, corporate thinking,

treating retail workers treating retail workers much better may make much better may make

everyone (including everyone (including their employers) much their employers) much

richer.”richer.” —Zeynep Ton/MIT, —Zeynep Ton/MIT, The Good Jobs Strategy: The Good Jobs Strategy:

How the Smartest Companies Invest in Employees toHow the Smartest Companies Invest in Employees to Lower Costs & Boost ProfitsLower Costs & Boost Profits

****FortuneFortune/Best Companies to Work for in America/Best Companies to Work for in America

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

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

Whole FoodsWhole FoodsCostcoCostco

(Walmart/Sam’s Club (Walmart/Sam’s Club +40%+40%/$20.89)/$20.89)

PublixPublixDarden RestaurantsDarden Restaurants

Build-A-Bear WorkshopsBuild-A-Bear WorkshopsStarbucksStarbucks

““In a world where customers wake up In a world where customers wake up every morning asking, ‘What’s new, every morning asking, ‘What’s new, what’s different, what’s amazing?’ what’s different, what’s amazing?’

success desuccess deppends on a ends on a comcomppananyy’s abilit’s abilityy to unleash to unleash initiative, imainitiative, imaggination and ination and ppassion of emassion of empploloyyees at all ees at all

levelslevels —and this can only happen if all —and this can only happen if all those folks are connected heart and soul those folks are connected heart and soul

to their work [their ‘calling’], their to their work [their ‘calling’], their company and their mission.”company and their mission.” —John Mackey and —John Mackey and

Raj Sisoda,Raj Sisoda, Conscious Capitalism: Conscious Capitalism: Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business

TRAINING/TRAINING/INVESTMENT INVESTMENT

#1#1

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

training. In most training. In most businesses, the top businesses, the top

training post is a training post is a “ho- hum” mid-level “ho- hum” mid-level

staff slot.staff slot.

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

than CEO/COO)?than CEO/COO)?

Are your top trainers Are your top trainers paid/cherished as much paid/cherished as much as your top marketers/ as your top marketers/

engineers?engineers?

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

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

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

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

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

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

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

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

team members is team members is committed to committed to

RPDRPD/Radical /Radical Personal Personal

DevelopmentDevelopment. Actively . Actively support one support one

and all!and all!

Gamblin’ ManGamblin’ Man

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

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

What is the best reason to go What is the best reason to go

bananas over trainingbananas over training?

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

GREEDGREED.. (It pays off.)(It pays off.)

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

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

#3: Provide a pride-#3: Provide a pride- worthy job.*worthy job.*#2: Help people be#2: Help people be successful at theirsuccessful at their current job.current job.#1: Help people grow/#1: Help people grow/ prepare for anprepare for an uncertain future.uncertain future.*****“Provide a secure job.”—*“Provide a secure job.”—NOT POSSIBLE IN 2014NOT POSSIBLE IN 2014..**Society—and profitability—demands this. (Or should!)**Society—and profitability—demands this. (Or should!)

Training #1: Bottom LineTraining #1: Bottom Line

NOBODYNOBODY gets off the gets off the

hook! “Training & Development hook! “Training & Development Maniac” applies as much to the Maniac” applies as much to the

leader of the leader of the 4-person 4-person businessbusiness as to the chief of as to the chief of the 44,444-person business.the 44,444-person business.

PEOPLE MATTERS: PEOPLE MATTERS: CRADLE TO GRAVE, CRADLE TO GRAVE,

THE EMPHASIS THE EMPHASIS SHIFTS TO SHIFTS TO CREATIVITYCREATIVITY

““Right now, labor Right now, labor markets and jobs are markets and jobs are changing faster than changing faster than

schools, and that means schools, and that means graduates are being left graduates are being left

behind.”behind.” —Tyler Cowen, author —Tyler Cowen, author Average Is OverAverage Is Over, in , in TimeTime (10.25.13) (10.25.13)

““All human beings are entrepreneurs.”All human beings are entrepreneurs.” —Muhammad Yunus—Muhammad Yunus

““Human creativity is the ultimate Human creativity is the ultimate economic resource.”economic resource.” —Richard Florida—Richard Florida

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

"Creativity can no longer be treated as "Creativity can no longer be treated as an elective.”an elective.” —John Maeda—John Maeda

““My wife and I went to a [kindergarten] parent-teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding conference and were informed that our budding

refrigerator artist, Christopher, would be receiving a refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How grade of Unsatisfactory in art. We were shocked. How

could any child—let alone our child—receive a poor grade could any child—let alone our child—receive a poor grade

in art at such a young age?in art at such a young age? HIS TEACHER HIS TEACHER INFORMED US THAT HE HAD INFORMED US THAT HE HAD

REFUSED TO COLOR WITHIN THE REFUSED TO COLOR WITHIN THE LINES, WHICH WAS A STATE LINES, WHICH WAS A STATE

REQUIREMENT FOR REQUIREMENT FOR DEMONSTRATING ‘GRADE-LEVEL DEMONSTRATING ‘GRADE-LEVEL

MOTOR SKILLSMOTOR SKILLS.’ ”.’ ” —Jordan Ayan, —Jordan Ayan, AHA!AHA!

““How many artists are there in the room? Would you please How many artists are there in the room? Would you please raise your hands. raise your hands. FIRST GRADEFIRST GRADE: En mass the children leapt from : En mass the children leapt from

their seats, arms waving. Every child was an artist. their seats, arms waving. Every child was an artist. SECOND SECOND GRADEGRADE: About half the kids raised their hands, shoulder high, no : About half the kids raised their hands, shoulder high, no higher. The hands were still. higher. The hands were still. THIRD GRADETHIRD GRADE: At best, 10 kids out : At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the of 30 would raise a hand, tentatively, self-consciously. By the time I reached time I reached SIXTH GRADESIXTH GRADE, no more than one or two kids , no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘secret artist.’ The point is:being identified by the group as a ‘secret artist.’ The point is:

EVERY SCHOOL I VISITEDEVERY SCHOOL I VISITED WAS PARTICIPATING INWAS PARTICIPATING IN

THE SYSTEMATIC SUPPRESSIONTHE SYSTEMATIC SUPPRESSION OF CREATIVE GENIUSOF CREATIVE GENIUS.”.”

—Gordon MacKenzie, retired creative director, Hallmark, from —Gordon MacKenzie, retired creative director, Hallmark, from Orbiting the Giant HairballOrbiting the Giant Hairball

RADICALRADICAL curricular revision curricular revision imperative. imperative. (STEM/STE(STEM/STEAAM.)M.)

RADICALRADICAL digital strategy. digital strategy.REVOLUTIONARYREVOLUTIONARY new approach to new approach to teacher recruitment/development.teacher recruitment/development.RADICALRADICAL re-assessment of tertiary re-assessment of tertiary

education education (E.g., (E.g., “MOOC-ization.”“MOOC-ization.”))

RADICALRADICAL re-assessment business re-assessment business ed.ed.

RADICALRADICAL role re-assessment by role re-assessment by corporations.corporations.

(Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let (Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let them.)them.)

The very best and the very The very best and the very brightest and the most brightest and the most

energetic and enthusiastic energetic and enthusiastic and entrepreneurial and and entrepreneurial and

tech-savvy of our university tech-savvy of our university

graduates must—graduates must—mustmust,, not should—be lured not should—be lured

into teaching. (Teach for into teaching. (Teach for America on Steroids)America on Steroids)

CREATIVITY SECRET CREATIVITY SECRET

#1#1

1/491/49

WTTMSWWTTMSW

1/491/49

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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

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

““MOVE FAST. MOVE FAST. BREAK THINGS.”BREAK THINGS.”

—Facebook—Facebook

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEEDSUCCEED?”?”Source: ad for Economist Source: ad for Economist ConferenceConference/0328.13/Berkeley CA (caps are /0328.13/Berkeley CA (caps are

Economist’Economist’s)s)

““THE ESSENCETHE ESSENCE OF CAPITALISM ISOF CAPITALISM IS

ENCOURAGING ENCOURAGING FAILUREFAILURE, , NOT NOT REWARDING REWARDING

SUCCESS.”SUCCESS.” —Nassim Nicholas Taleb/—Nassim Nicholas Taleb/AntifragileAntifragile

WTTMSWTTMSASTMSUASTMSUTFTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFAND AND SCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUPTHETHEFASTESTFASTESTWINSWINS

CREATIVITY SECRET CREATIVITY SECRET

#1T#1T

WOMEN RULEWOMEN RULE!!WOMEN BUYWOMEN BUY!!

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

I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be

the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,

words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine

gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”

——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)

““Research suggests that Research suggests that to succeed, start by to succeed, start by promoting women.”promoting women.”

——Nicholas Kristof, “Nicholas Kristof, “NYTimesNYTimes, 1024.13, 1024.13

““In my experience, In my experience, women make much women make much

better executives than better executives than men.”men.” —Kip Tindell, CEO, Container Store, from —Kip Tindell, CEO, Container Store, from

UNCONTAINABLEUNCONTAINABLE

““McKinsey & Company found that the McKinsey & Company found that the international companies with more women on international companies with more women on

their corporatetheir corporate

boards boards far outperformedfar outperformed the average the average companycompany

in return on equity and other measures. in return on equity and other measures. Operating profit was Operating profit was

5656%% higher.”higher.”

——Nicholas Kristof, “Twitter, Women, and Power,” Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

female managers outshine their male female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

““Women are rated higher in fully Women are rated higher in fully 12 of the 16 competencies that go 12 of the 16 competencies that go into outstanding leadership. into outstanding leadership. And And two of the traits where women two of the traits where women outscored men to the highest outscored men to the highest degree — taking initiative and degree — taking initiative and driving for results — have long driving for results — have long been thought of as particularly been thought of as particularly

male strengths.”male strengths.”

——Harvard Business ReviewHarvard Business Review (Courtesy: Dan (Courtesy: Dan Rockwell/Leadership Freak)Rockwell/Leadership Freak)

Bachelor’s degree, age Bachelor’s degree, age 25-34: 40% F; 30% M25-34: 40% F; 30% M

Graduate degree Graduate degree students: 60% F; 40% Mstudents: 60% F; 40% M

Source: Source: Sydney Morning HeraldSydney Morning Herald /03.26.12 /03.26.12

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080 Percent Percent

of Management and of Management and Professional Jobs”Professional Jobs”

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

““The growth and The growth and

success of success of womenwomen--ownedowned businessesbusinesses

is one of the most is one of the most profound changes profound changes takingtaking place in the place in the

business world today.”business world today.”

——Margaret Heffernan, Margaret Heffernan, How She Does ItHow She Does It

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

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

WOMENWOMEN.”.”

Source: Headline, Economist

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

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

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

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer.

And yet many companies do just that—even ones that are confidant that they have a winning strategy when it And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …”comes to women. Consider Dell’s …”

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

““Women areWomen are THETHE majority majority

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

ALL HUMAN ALL HUMAN BEINGS ARE BEINGS ARE

ENTREPRENEURSENTREPRENEURS

““This boom, built around systems This boom, built around systems which match jobs with which match jobs with

independent contractors on the independent contractors on the fly, marks a striking new stage in fly, marks a striking new stage in a deeper transformation.a deeper transformation. Using the Using the

now ubiquitous platform of the smartphone to now ubiquitous platform of the smartphone to deliver labour services in a variety of new deliver labour services in a variety of new

ways will challenge many of the fundamental ways will challenge many of the fundamental assumptions of twentieth-century capitalism, assumptions of twentieth-century capitalism, from the nature of the firm to the structure of from the nature of the firm to the structure of careers.” “The ‘on demand economy’ is the careers.” “The ‘on demand economy’ is the

result of pairing the workforce with the result of pairing the workforce with the smartphone.”smartphone.”

——Economist, “There’s an App For That,” Economist, “There’s an App For That,” 0103.150103.15

Tongal: 40K video makers, Super Tongal: 40K video makers, Super Bowl ad for Colgate-Palmolive for Bowl ad for Colgate-Palmolive for $17K.$17K.

Business Talent Group/LA: Bosses Business Talent Group/LA: Bosses on the flyon the fly

Axiom: 650 lawyers, $100MAxiom: 650 lawyers, $100M

Mechanical Turk/Amazon: Mechanical Turk/Amazon: Anything!Anything!

ResearchGate/Ijad Madisch: ResearchGate/Ijad Madisch: 5M members, 10K new per day5M members, 10K new per day

““The prospect of contracting a gofer on an aThe prospect of contracting a gofer on an a

la carte basis is enticing.la carte basis is enticing. For instance, wouldn’t it For instance, wouldn’t it be convenient if I could outsource someone be convenient if I could outsource someone to write a paragraph here, explaining the to write a paragraph here, explaining the

history of outsourcing in Americahistory of outsourcing in America?? Good idea! I Good idea! I went ahead and commissioned just such a paragraph from went ahead and commissioned just such a paragraph from

Get Friday, a ‘virtual personal assistant firm based in Get Friday, a ‘virtual personal assistant firm based in Bangalore. … The paragraph arrived in my inbox ten days Bangalore. … The paragraph arrived in my inbox ten days

after I ordered it. It was 1,356 words. There is a bibliography after I ordered it. It was 1,356 words. There is a bibliography with eleven sources. … At $14 an hour for seven hours of with eleven sources. … At $14 an hour for seven hours of

work, the cost came to $98. …”work, the cost came to $98. …” —Patricia Marx, “Outsource Yourself,” —Patricia Marx, “Outsource Yourself,” The New Yorker, The New Yorker, 01.14.201301.14.2013 (Marx describes in detail contracting out everything (Marx describes in detail contracting out everything

associated with hosting her book associated with hosting her book club club —including the provision of “witty” —including the provision of “witty” comments on Proust, since she hadn’t had time to read the book—excellent comments on Proust, since she hadn’t had time to read the book—excellent

comments only set her back $5;comments only set her back $5; the writer/contractor the writer/contractor turned out to beturned out to be

a 14-a 14-yyear-old ear-old ggirl from New Jerseirl from New Jerseyy.).)

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are beings are

entrepreneursentrepreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed . . . finding our food, feeding employed . . . finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began . . . As civilization came we began . . . As civilization came we suppressed it. We became labor because suppressed it. We became labor because

they stamped us, ‘You are labor.’ We forgot they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”that we are entrepreneurs.” —Muhammad Yunus/

The News Hour/PBS/1122.2006

““The ecosystem used to The ecosystem used to funnel lots of talented funnel lots of talented people into a few clear people into a few clear

winners.winners. Now it’s Now it’s funnelinfunnelingg lots of lots of

talented talented ppeoeopple into le into lots of exlots of expperimentseriments.”.”

——Tyler Willis, business developer, to Nathan Heller in Tyler Willis, business developer, to Nathan Heller in “Bay Watched: “Bay Watched: How San Francisco’s New Entrepreneurial Culture Is How San Francisco’s New Entrepreneurial Culture Is

Changing the Country,”Changing the Country,” the the New YorkerNew Yorker, 1014.13, 1014.13

Distinct or Distinct or

extinct!extinct!

““The average age of a The average age of a startup founder is 40. startup founder is 40. And And high-high-ggrowth starturowth startupps s are nearlare nearlyy twice as twice as

likellikelyy to be launched to be launched bbyy ppeoeopple over 55 as le over 55 as

bbyy ppeoeopple 20-34le 20-34.”.”

—Vivek Wadhwa, Kauffman foundation (—Vivek Wadhwa, Kauffman foundation (TimeTime/0325.13)/0325.13)

+1/-1+1/-1

S&P 500S&P 500

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

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

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

seems obviousseems obvious … …

Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How

do I build a small firm for myself?’ The answer seems

obvious: BuBuyy a ver a veryy larlarggee

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

Fail: Evolution, Extinction and Economics

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

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

NONENONE ofof

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

the database, the worse thethe database, the worse theyy did did.”.”

—Financial Times—Financial Times

THE FUTURE THE FUTURE IS SMALLIS SMALL

The Future Is Small: The Future Is Small: Why AIM Will Be the Why AIM Will Be the World’s Best Market World’s Best Market Beyond the Credit Beyond the Credit BoomBoom —Gervais Williams, —Gervais Williams,

superstar fund manager (FT/1217.14: superstar fund manager (FT/1217.14: “Research shows that new and small “Research shows that new and small companies create almost all the new companies create almost all the new

private sector jobs and are private sector jobs and are disproportionately innovative.”)disproportionately innovative.”)

THETHE RED RED CARPET CARPET STORESTORE

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

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

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

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

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

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

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

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

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

Aizen Kobo Aizen Kobo Indigo Indigo

WorkshopWorkshop

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

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

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

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

priced from priced from

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

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

globe.”globe.”

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

98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000 Christmas Christmas

ornaments, ornaments, 50,00050,000 trims, and anythingtrims, and anything else you can else you can

name pertaining to Christmas. …”name pertaining to Christmas. …”

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

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

Dominators!Dominators!

"Own" a niche through EXCELLENCE"Own" a niche through EXCELLENCE!!(Writ large: Germany’s MITTELSTAND)(Writ large: Germany’s MITTELSTAND)

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

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

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

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

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

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

““BE THE BEST. BE THE BEST. IT’S THE ONLY IT’S THE ONLY

MARKET THAT’S MARKET THAT’S NOT CROWDED.”NOT CROWDED.”

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

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING”“RADICALLY THRILLING” BMW

“ASTONISH ME”“ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER

“BUILD SOMETHING GREAT”“BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER

“MAKE IT IMMORTAL”“MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.

LEADERSHIPLEADERSHIP

MBWAMBWA

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

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

Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

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

and Growth.”and Growth.”

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

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

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

“If I had to pick one failing of

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

Thought for 2014 for those Thought for 2014 for those notnot in formal in formal

leadership slots:leadership slots: EverEvery day, on y day, on or off the job, offers or off the job, offers

everevery one of us a y one of us a plethora of leadership plethora of leadership

opportunities! opportunities! Go for it! No excuses!Go for it! No excuses!

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. AVOID MODERATIONAVOID MODERATION!!

EXCELLENCE.EXCELLENCE.

Always. Always. If notIf not EXCELLENCE,EXCELLENCE,

what?what?If notIf not EXCELLENCEEXCELLENCE

now, when?now, when?