Tom Peters’Tom Peters’

Re-Imagine:Re-Imagine:ExcellenceExcellence

NOWNOW

Credit Union National AssociationCredit Union National AssociationSan Diego/18 June 2012San Diego/18 June 2012

(slides @ tompeters.com and excellencenow.com)(slides @ tompeters.com and excellencenow.com)

““Not Dead Yet”Not Dead Yet”

““Not Dead Yet”Not Dead Yet”BRIC/2011: $11T/$4K per capitaBRIC/2011: $11T/$4K per capitaUSA/2011: $16T/$48K per capitaUSA/2011: $16T/$48K per capitaUSA/2000: 4% population/30% world GDPUSA/2000: 4% population/30% world GDPUSA/2010: 4% populattion/28% world GDPUSA/2010: 4% populattion/28% world GDPUSA productivity: ’07/1.7%; ’08/2.1%; ’09/5.4%; ’10/2.4%; USA productivity: ’07/1.7%; ’08/2.1%; ’09/5.4%; ’10/2.4%; ’11/4.1%’11/4.1%FDIC institutions: 4Q/2008/-$38B; 2Q/2011/+$29BFDIC institutions: 4Q/2008/-$38B; 2Q/2011/+$29B1/2008 to 9/2011: USA consumer savings 0% to 6%/$2.1T saved1/2008 to 9/2011: USA consumer savings 0% to 6%/$2.1T savedForeign Direct Investment: 2003: $64B; 2008: $328B; 2009: Foreign Direct Investment: 2003: $64B; 2008: $328B; 2009: $134B; 2011: $200B+$134B; 2011: $200B+Exports/2009: USA $1.53T ($1.06T goods, $0.47T services); Exports/2009: USA $1.53T ($1.06T goods, $0.47T services); Germany $1.36T; China $1.33TGermany $1.36T; China $1.33TUSA/Refined petroleum products/1Q 2011: Imports 2.16M BPD; USA/Refined petroleum products/1Q 2011: Imports 2.16M BPD; Exports 2.49M BPDExports 2.49M BPD““New economy”: Apple (>Exxon) + Google + Facebook ~ $1T New economy”: Apple (>Exxon) + Google + Facebook ~ $1T market capmarket cap

Source: Daniel Gross, Source: Daniel Gross, The Myth of American Decline and the Growth of a New EconomyThe Myth of American Decline and the Growth of a New Economy

How do I build How do I build a small firm a small firm for myself?for myself?

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

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

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

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

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

MittELstandMittELstand** **““aaggile creatures dartinile creatures dartingg between the between the leleggssof the multinational monstersof the multinational monsters””((Bloomberg Bloomberg BusinessWeekBusinessWeek))

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

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

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

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jim’s Jungle Jim’s calls it, begins in the parking lot calls it, begins in the parking lot and goes on to and goes on to 1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of 1,400 varieties of hot saucehot sauce —not to mention —not to mention 12,000 wines 12,000 wines priced from $8 to $8,000priced from $8 to $8,000 a bottle; all this is a bottle; all this is brought to you by brought to you by 4,000 vendors4,000 vendors.. Customers Customers come from every corner of the globe.” come from every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, , MichiMichigganan, pop 5,000:, pop 5,000: 98,000-square-foot98,000-square-foot “shop” features the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

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

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

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

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

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

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE in service of othersEXCELLENCE in service of others.**

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

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

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

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

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Zappos 10 Corporate ValuesZappos 10 Corporate ValuesDeliver Deliver

“WOW!”“WOW!”

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

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

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

7 Steps to Sustaining 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.)

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

70/10070/100

““Development can help great Development can help great

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

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

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

GoogleGoogle

““C-C-level”? level”?

In the Army, In the Army, 33--star star ggeneralsenerals* obsess * obsess about training. In about training. In

most businesses, it's most businesses, it's a “ho hum” mid-level a “ho hum” mid-level

staff function.staff function.*and admirals and symphony conductors and sports coaches and police chiefs and fire chiefs …*and admirals and symphony conductors and sports coaches and police chiefs and fire chiefs …

#1 #1 Asset Asset

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

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

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

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

same awareness?same awareness?

““People People leave leave

managers not managers not companies.”companies.”

——Dave WheelerDave Wheeler

4 4 Words!Words!

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

organization are …organization are …

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

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

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

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

rarely make rarely make significant significant

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

““The deepest The deepest principal in human principal in human

nature is the nature is the cravincraving* to be g* to be appreciated.”appreciated.”

—William James—William James

*“Craving,”*“Craving,” not “wish” or “desire” or “longing” —Dale not “wish” or “desire” or “longing” —Dale Carnegie, Carnegie, How to Win Friends and Influence People How to Win Friends and Influence People (“The (“The

BIG Secret of Dealing With People”)BIG Secret of Dealing With People”)

The Memories The Memories That [will] That [will]

Matter/National Matter/National Prosperity & Prosperity &

SecuritySecurity

The Memories That MatterThe Memories That Matter

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

““Re-framing Capitalism”: Re-framing Capitalism”: A 15-PointA 15-Point Human Capital Development ManifestoHuman Capital Development Manifesto

1.1. “Corporate social responsibility” “Corporate social responsibility” starts at home—i.e., inside the starts at home—i.e., inside the enterprise!enterprise! MAXIMIZING MAXIMIZING GDD/Gross Domestic Development GDD/Gross Domestic Development of the workforce is the primary of the workforce is the primary source of mid-term and beyond source of mid-term and beyond growth and profitability—growth and profitability—andand maximizes national productivity and maximizes national productivity and wealth and security.wealth and security. (Re profitability: (Re profitability: If you If you want to serve the customer with uniform Excellence, then you want to serve the customer with uniform Excellence, then you must FIRST effectivelmust FIRST effectivelyy and faithfull and faithfullyy serve those who serve the serve those who serve the customer—i.e. our emplocustomer—i.e. our employyees, via maximizinees, via maximizingg tools and tools and pprofessional develorofessional developpmentment.).)

MBWMBWAA

2255

You = You = Your Your

calendarcalendar***The calendar *The calendar nevernever lies.lies.

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

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

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

timetime.”.” —Peter Drucker—Peter Drucker

18 …18 …

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

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

18 18 ……

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark with] Listening is ... the ultimate mark

of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

TGRs/ TGRs/ LBTs LBTs

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

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

sir?”sir?”

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome..

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

EmploEmployyee Satisfactionee Satisfaction

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

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

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

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

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring farcombative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them more time than it would have taken to interact with them

initially in a positive way.”initially in a positive way.” Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton,

Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance) (Griffin Hospital/Derby CT; Plantree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

<TG<TGWWandand … …

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

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

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

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

1/461/46

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

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

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

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

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

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

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)

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

““You miss You miss

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

take.”take.” —Wayne—Wayne GretzkyGretzky

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

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!!