11h theory of everything

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

insure that it is not a insure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard “Showcard Gothic,”Gothic,” “Ravie,”“Ravie,”

“Chiller”“Chiller” andand “Verdana”“Verdana”

Excellence:Excellence:

The The 11H11H** “ “Theory of Everything”Theory of Everything”

15 November 2010/Tom Peters15 November 2010/Tom Peters

*Also see original *Also see original 3H 3H “Theory of Everything” at APPENDIX, end of this “Theory of Everything” at APPENDIX, end of this

presentationpresentation

Excellence:Excellence:The Moral BasisThe Moral Basis of Enterpriseof Enterprise

““At a party …At a party …

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

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

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

history. Heller responds …history. Heller responds …

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

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

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

he will never he will never have … enough.’”have … enough.’”

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)

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

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

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

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

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

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

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

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

““Managers have lost dignity over the Managers have lost dignity over the past decade in the face of wide spread past decade in the face of wide spread institutional breakdown of trust and institutional breakdown of trust and self-policing in business. To regain self-policing in business. To regain

society’s trust, we believe that society’s trust, we believe that business leaders must embrace a way business leaders must embrace a way

of looking at their role that goes of looking at their role that goes beyond their responsibility to the beyond their responsibility to the shareholders to include a civic and shareholders to include a civic and

personal commitment to their duty as personal commitment to their duty as institutional custodians. In other words, institutional custodians. In other words,

it is time that management became a it is time that management became a profession.”profession.” —Rakesh Khurana & Nitin Nohria, “It’s —Rakesh Khurana & Nitin Nohria, “It’s Time To Make Management a True Profession,” HBR/10.08Time To Make Management a True Profession,” HBR/10.08

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

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..

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

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

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““Excellence …Excellence … can be obtained if you:can be obtained if you:

... ... carecare more than others think more than others think is wise;is wise; ... ... riskrisk more than others think more than others think is safe;is safe; ... ... dreamdream more than others think more than others think is practical;is practical; ... ... expectexpect more than others think more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

Two things Two things Before we Before we begin …begin …

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?

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelminggllyy

based on the based on the first-line first-line manamanagger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

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

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

Suggested addition to your statement of Core Suggested addition to your statement of Core

Competencies: Competencies: “We are obsessed “We are obsessed with developing a cadre of 1st with developing a cadre of 1st line managers that is second to line managers that is second to none—we understand that this none—we understand that this cadre per se is arguably one of cadre per se is arguably one of

our top two or three most our top two or three most important ‘Strategic Assets.’”important ‘Strategic Assets.’”

Six “Obvious” QuestionsSix “Obvious” Questions

(1) Are you, Big Boss, a ... (1) Are you, Big Boss, a ... f-o-r-m-a-l student of first-f-o-r-m-a-l student of first-line supervisor behavioral excellence?* line supervisor behavioral excellence?* (*Yes, this sort (*Yes, this sort of thing can be formally studied.)of thing can be formally studied.)(2) Do you spend ... (2) Do you spend ... gobs and gobs (and then more and gobs and gobs (and then more and more gobs and gobs) of time ... selecting the first-line more gobs and gobs) of time ... selecting the first-line supervisors?supervisors?(3) Do you have the ... (3) Do you have the ... absolute best training program absolute best training program in the industry ... (or some subset thereof) for first-line in the industry ... (or some subset thereof) for first-line supervisors?supervisors?(4) Do you Formally & Rigorously ... (4) Do you Formally & Rigorously ... mentor ... first-line mentor ... first-line supervisors?supervisors?(5) Are you willing, pain notwithstanding, to (5) Are you willing, pain notwithstanding, to ... leave a ... leave a first-line supervisor slot open ... until you can fill the first-line supervisor slot open ... until you can fill the slot with somebody spectacular? (And are you willing to slot with somebody spectacular? (And are you willing to use some word like ... use some word like ... “spectacular”“spectacular” ... in judging ... in judging applicants for the job?)applicants for the job?)(6) Is it possible that promotion decisions for first-line (6) Is it possible that promotion decisions for first-line supervisors are more important than promotion supervisors are more important than promotion decisions for VP slots?) (Hint: decisions for VP slots?) (Hint: YesYes.).)

Capital Asset Capital Asset

**Selecting and training and**Selecting and training and mentoring one’s pool of front- mentoring one’s pool of front- line managers can be a “Core line managers can be a “Core Competence” of surpassing Competence” of surpassing strategic importance. strategic importance.**Put under a microscope every**Put under a microscope every attribute of the cradle-to- attribute of the cradle-to- grave process of building the grave process of building the capability of our cadre of capability of our cadre of front-line managers. front-line managers.

Problem #1.Opportunity

#1.

XFX = XFX = #1#1**

*Cross-Functional eXcellence *Cross-Functional eXcellence

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure! Monthly! Part of evaluation! [The PA’s *Measure! Monthly! Part of evaluation! [The PA’s Club.]Club.]

Lunch Lunch > SAP/> SAP/OracleOracle

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

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied of fellow cadets who came from widely varied backgrounds; it was a quality that would pay greatbackgrounds; it was a quality that would pay great dividends during his future coalition command.”dividends during his future coalition command.”

(Way) Underutilized Lever(Way) Underutilized Lever

Space!Space!Space!Space!Space!Space!Space!Space!

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

““XFXXFX Social Social Accelerators.” Accelerators.”

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! functions! (Purposefully. Consistently. Measurably.)(Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. freelancer/Brand You, or as entrepreneur.

C(I)C(I)>>C(C(E)E)

C(I) > C(E)C(I) > C(E)LunchLunchKudosKudosLearning/ Presence/PresentationsLearning/ Presence/PresentationsFacetime C(E)Facetime C(E)TransparencyTransparencyAwardsAwardsCo-locate/Geologists-GeophysicistsCo-locate/Geologists-GeophysicistsTime!!!!!!!!!!!!!!!!!!!!!!!!!!Time!!!!!!!!!!!!!!!!!!!!!!!!!!Motherhood (“If don’t take credit …)Motherhood (“If don’t take credit …)Staff C.Sat./UnicreditStaff C.Sat./Unicredit

THE WHOLE POINT HERE IS THAT “XFX” IS THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINALY THE #1 OPPORTUNITY ALMOST CERTAINALY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX MOMENT-TO-MOMENT AFFAIRS, XFX PER SE PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE THE TOP OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.

““Suck down for Suck down for success!” * ** *** **** success!” * ** *** **** ********

*“He [Gust Avarkotos] had become something *“He [Gust Avarkotos] had become something of a legend with these people who manned the of a legend with these people who manned the underbelly of the Agency [CIA],”underbelly of the Agency [CIA],” fromfrom Charlie Charlie Wilson’s War Wilson’s War **Getting to know “the risk guys” [GE Power] **Getting to know “the risk guys” [GE Power] ******“Spend less time with your customer!”“Spend less time with your customer!”

********C(I) > C(E)C(I) > C(E) *****The ATT systems sales exec*****The ATT systems sales exec

Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”

Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

S = ƒ(#&DR; -2L, -3L, -4L, I&E)S = ƒ(#&DR; -2L, -3L, -4L, I&E)Success is a function of: Number and depth of relationships Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization2, 3, and 4 levels down inside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea Sucking down is more important than sucking up—the idea is to have the [your] entire organization working for you.is to have the [your] entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends not in my functionNumber of friends not in my function

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance organizationNumber of friends in the finance organization

S =ƒ(#PK“S =ƒ(#PK“WW”P)”P)S = ƒ(#PK“S = ƒ(#PK“LL”P)”P) # of people you know in the “wrong” places# of people you know in the “wrong” places# of people you know in “low” places# of people you know in “low” places

Excellence:Excellence:

The The 11H11H** “ “Theory of Everything”Theory of Everything”

15 November 2010/Tom Peters15 November 2010/Tom Peters

*Also see original *Also see original 3H 3H “Theory of Everything” at APPENDIX, end of this “Theory of Everything” at APPENDIX, end of this

presentationpresentation

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerbHenry IHenry IHenry IIHenry IIHiramHiramHoratioHoratioHillHillHartvilleHartvilleHelgesenHelgesenHsiehHsieh

Conrad Hilton …Conrad Hilton …

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,

was asked, was asked, “What was the most important lesson you’ve learned in your long and distinguished

career?” His immediate His immediate answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.”—Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

“Execution isExecution is aa

systematic systematic processprocess of rigorously of rigorously

discussing hows and whats, discussing hows and whats, tenaciously following through, and tenaciously following through, and

ensuring accountability.”ensuring accountability.” —Larry Bossidy & Ram Charan/ —Larry Bossidy & Ram Charan/ Execution: Execution:

The The DisciDiscipplineline of Getting Things Done of Getting Things Done

““In real life, strategyIn real life, strategy is actually very is actually very

straightforward. Pickstraightforward. Pick a general direction … a general direction …

andand imimpplementlement likelike hellhell”” —Jack Welch—Jack Welch

““Costco figured out Costco figured out the the bigbig,, simplesimple things things

and and executedexecuted with with total total fanaticismfanaticism.”.”

—Charles Munger, Berkshire Hathaway

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. …puffery. … There isn’t There isn’t an ounce of denial in an ounce of denial in the placethe place.”.” —Kevin Sharer, CEO

Amgen, on the “GE mystique” (Fortune)

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest are maneuvers; the simplest are the best and common sense is the best and common sense is fundamental. From which one fundamental. From which one

might wonder how it is might wonder how it is

generals make blunders; generals make blunders; itit is because theis because theyy tr tryy to to

be cleverbe clever.”.” —Napoleon—Napoleon

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

““The score The score takes care of takes care of

itself.”itself.” —Bill Walsh—Bill Walsh

3030--

fold!fold!

B(I) > B(O)B(I) > B(O)

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

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

first and they do one thing first and they do one thing at a time.”at a time.” —Peter Drucker—Peter Drucker

Sunday “Drive By”:Sunday “Drive By”: The CEO of a very successful mid-sized The CEO of a very successful mid-sized bank, in the Midwest, attended a seminar of mine in bank, in the Midwest, attended a seminar of mine in northern California in the mid-’80s—but I remember the northern California in the mid-’80s—but I remember the following as if it were yesterday. I’ve forgotten the following as if it were yesterday. I’ve forgotten the specific context, but I recall him saying to me, pretty specific context, but I recall him saying to me, pretty

much word for word,much word for word, “Tom let me tell you “Tom let me tell you the definition of a good lending the definition of a good lending officer. After church on Sunday, on officer. After church on Sunday, on the way home with his family, he the way home with his family, he takes a little detour to drive by the takes a little detour to drive by the factory he just lent money to. factory he just lent money to. Doesn’t go in or any such thing, Doesn’t go in or any such thing, just drives by and takes a look.”just drives by and takes a look.”

““I call 60 CEOs I call 60 CEOs [in [in

the first week of the year]the first week of the year] to to wish them happy wish them happy

New Year. …”New Year. …”

—Hank Paulson, former CEO, Goldman —Hank Paulson, former CEO, Goldman SachsSachs

Source: Fortune, “Secrets of Greatness,” 0320.05

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

Dov Frohman:Dov Frohman: The “50% The “50% Rule” Rule” Dov Frohman:Dov Frohman: “Daydream!” “Daydream!”

You = You = Your Your

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

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

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

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

* “Don’ting,” systematic, > WILLPOWER* “Don’ting,” systematic, > WILLPOWER

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

—David D’Alessandro, Career Warfare

““It suddenly It suddenly occurred to me occurred to me

that in the space that in the space of two or three of two or three

hours …hours …

““It suddenly occurred to me that in the space It suddenly occurred to me that in the space

of two or three hours …of two or three hours … he he nevernever talked talked about cars.”about cars.”

— —Les WexnerLes Wexner

““On the face of it, shareholder On the face of it, shareholder value is the dumbest idea in the value is the dumbest idea in the

world. Shareholder value is a world. Shareholder value is a

result, not a strategy. … result, not a strategy. … Your Your main constituenciesmain constituencies

are your are your emempploloyyeesees, your , your customerscustomers and your and your

pproductsroducts.”.”

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

““Mapping your Mapping your competitive competitive position”position”

or …or …

The “Have The “Have you …” 50you …” 50

1. Have you in the1. Have you in the last 10 days … last 10 days … visitedvisited a customer? a customer? 2. Have you called a 2. Have you called a customer … customer …

TODAYTODAY ??

1. 1. Have you in the last 10 days … visited a Have you in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??

3. Have you in the last 60-90 days … had a seminar in which several folks from the 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?

4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three days?small act of helpfulness … in the last three days?5. Have you thanked a front-line employee for a small act of helpfulness … in the 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three last three hourshours??6. Have you thanked a front-line employee for carrying around a great 6. Have you thanked a front-line employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operationcross-functional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?function) for a small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team to your weekly team priorities meeting?priorities meeting?10. Have you personally in the last week-month called-visited an internal or external 10. Have you personally in the last week-month called-visited an internal or external customer to customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)dared imagine.)

11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically concerning a project’s next steps … and what specifically you can do to remove a hurdleyou can do to remove a hurdle? (“Ninety percent of ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a milestone reached? (I.e., are you a milestone fanatic?)fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly a lousy estimate? (Somehow you must publicly reward the telling of difficult truthsreward the telling of difficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers? customers? (With major consequences for hitting or missing (With major consequences for hitting or missing

the mark.)the mark.)

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next the next fourteen daysfourteen days??

21. Have you had in the last year a one-day, intense offsite with each (?) of your 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”?internal customers—followed by a big celebration of “things gone right”?22. Have you in the last week pushed someone to do some family thing that you fear 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?industry, that you ran across in a meeting, reading, etc?27. Have you in the last 24 hours injected into a meeting “I ran across this interesting 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)

29. 29. Have you in the last 30 days examined in detail (hour Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.)(And repeated this exercise with everyone on team.)

30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours”? (And then discussion on “action items to be dealt with in the next 4, 48 hours”? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)least one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you in the last month Have you in the last month taught taught a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?

43. 43. Have you in the Have you in the last three dayslast three days considered a professional considered a professional relationship that was a little rocky and made a call to the person relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)“blame,” fully deserved or not, for letting the thing-issue fester.)

44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

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

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

1818 secondsseconds

1818 seconds!seconds!

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

Best Listeners Win …Best Listeners Win …

““if you don’t if you don’t listen, you don’t listen, you don’t sell anything.”sell anything.”

——Carolyn MarlandCarolyn Marland

If If you agree with the above, shouldn’t listening be ... a Core you agree with the above, shouldn’t listening be ... a Core

Value?Value?If you agree with the above, shouldn’t listening be ... perhaps If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* Core Value #1?* (*“We are Effective Listeners—we treat (*“We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”)to Respect and Engagement and Community and Growth.”)If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... an explicit “agenda item” If you agree, shouldn’t listening be ... an explicit “agenda item” at every Meeting?at every Meeting?If you agree, shouldn’t listening be ... our Strategy—per se? If you agree, shouldn’t listening be ... our Strategy—per se? (Listening = Strategy.)(Listening = Strategy.)If you agree, shouldn’t listening be ... the #1 skill we look for in If you agree, shouldn’t listening be ... the #1 skill we look for in Hiring (for every job)?Hiring (for every job)?

““We are Effective Listeners—We are Effective Listeners—we treat Listening we treat Listening

EXCELLENCE as the EXCELLENCE 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 you agree, shouldn’t listening be ... the #1 attribute we If you agree, shouldn’t listening be ... the #1 attribute we examine in our Evaluations?examine in our Evaluations?If you agree, shouldn’t listening be ... the #1 skill we look for If you agree, shouldn’t listening be ... the #1 skill we look for in Promotion decisions?in Promotion decisions?If you agree, shouldn’t listening be ... the #1 Training priority If you agree, shouldn’t listening be ... the #1 Training priority at every stage of everyone’s career—from Day #1 to Day at every stage of everyone’s career—from Day #1 to Day LAST?LAST?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 30 MINUTES?30 MINUTES?If you agree, what are you going to do about it ... at your If you agree, what are you going to do about it ... at your NEXT meeting?NEXT meeting?If you agree, what are you going to do about it ... by the end If you agree, what are you going to do about it ... by the end of the DAY?of the DAY?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 30 DAYS?30 DAYS?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 12 MONTHS?12 MONTHS?

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

Message:Message: Listening is a Listening is a … …

professionprofession!!

Listen!Listen!• • Listening Leaders: The Ten Golden Rules ToListening Leaders: The Ten Golden Rules To Listen, Lead & Succeed—Listen, Lead & Succeed—Lyman Steil andLyman Steil and Richard BommeljeRichard Bommelje• • The Zen of Listening—The Zen of Listening—Rebecca ShafirRebecca Shafir• • Effective Listening Skills—Effective Listening Skills—Dennis Kratz andDennis Kratz and Abby Robinson KratzAbby Robinson Kratz• • Are You Really Listening?—Are You Really Listening?—Paul Donoghue andPaul Donoghue and Mary SiegelMary Siegel• • Active Listening: Improve Your Ability to ListenActive Listening: Improve Your Ability to Listen and Lead—and Lead—Michael HoppeMichael Hoppe• • Listening: The Forgotten SkillListening: The Forgotten Skill — —Madelyn Burley-AllenMadelyn Burley-Allen

““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in

other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to

get other people get other people interested in you.”interested in you.” —Dale

Carnegie

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

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

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

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

—Sara Lawrence-Lightfoot, Respect

And the answer is ….And the answer is ….

otisotis

““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,” on the occasion of , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in union took out a full-page ad in USA Today USA Today thanking HK for all he had done; thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual across the way in Dallas American Airlines’ pilots were picketing the Annual

Meeting)Meeting)

"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

Zabar’sZabar’s Parking Parking GarageGarage**

*Retail Superstars: Inside the 25 Best Independent Stores in America*Retail Superstars: Inside the 25 Best Independent Stores in America

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does culture paradoxically does

not go through the guest. In fact it wouldn’t be totally wrong to say that the guest not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.has nothing to do with it. True hostmanship leaders focus on their employees. True hostmanship leaders focus on their employees.

What drives exceptionalism is finding the right people and getting them to love What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when their work and see it as a passion. ... The guest comes into the picture only when

you are ready to ask, ‘you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’”work or where management has made customers its highest priority?’” ““We went We went

throuthrouggh the hotel and made ah the hotel and made a ... ... ‘‘consideration consideration renovation.renovation.’’ Instead of redoinInstead of redoingg bathrooms, dinin bathrooms, dining g

rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new uniforms, bouees new uniforms, bougght flowers and ht flowers and

fruit, and chanfruit, and changged colors.ed colors. Our focus was Our focus was totalltotallyy on the staff. on the staff. TheTheyy

were the ones we wanted to were the ones we wanted to make hamake happy.ppy. We wanted them to wake up everWe wanted them to wake up everyy mornin morningg

excited about aexcited about a new danew dayy at work.” at work.”

Source: Jan Gunnarsson and Olle Blohm, Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel WelcomeHostmanship: The Art of Making People Feel Welcome..

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

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

about the individual about the individual concerned and how things concerned and how things

can be arranged to help that can be arranged to help that individual experience individual experience success.”success.” —Marcus Buckingham, —Marcus Buckingham,

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

““Managing winds up being Managing winds up being the management of the the management of the allocation of resources allocation of resources

against tasks. Leadership against tasks. Leadership

focuses on people. focuses on people. MMyy definition of a leader definition of a leader

is someone who is someone who helhelpps s ppeoeopple le

succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

““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

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

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

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.

Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

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

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

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

actors and actresses canactors and actresses can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance —Robert Altman, Oscar acceptance

speechspeech

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are

heading in the next 12 months. Please explain in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last five years. Whatdevelopment triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way?”grow along the way?”

““A man should neverA man should never be promoted to a be promoted to a

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

their strengths.”their strengths.”

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

Andrew Carnegie’s tombstone Andrew Carnegie’s tombstone inscriptioninscription

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

In his serviceIn his serviceBetter men than himselfBetter men than himself

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

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/increase average sale per shopperSource: Container Store/increase average sale per shopper

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

WegmansWegmans

..

““The The fourfour most most importantimportant 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 do “What do youyou

think?”think?”

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

Tomorrow: How Tomorrow: How many times will you many times will you

“ask the WDYT “ask the WDYT question”?question”?

[Count!] [Practice [Practice

makes better!] [This is a makes better!] [This is a

STRATEGIC skill!]skill!]

““WDYT” = WDYT” = Certification of me Certification of me

as a person of as a person of Importance whose Importance whose opinion is valued. opinion is valued.

What do managers do for a living?What do managers do for a living?

Help!Help!Right?Right?

How many of us could call ourselves How many of us could call ourselves “professional helpers,”“professional helpers,” meaning meaning that we have studied—like a professional mastering her craftthat we have studied—like a professional mastering her craft—“helping”?—“helping”?(Not many, I’d judge.)(Not many, I’d judge.)

Ed Schein:Ed Schein: Helping: How to Offer, Give, and Receive HelpHelping: How to Offer, Give, and Receive Help

Last chapter: 7 “principles.” E.g.:Last chapter: 7 “principles.” E.g.:

PRINCIPLE 2:PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable.Perceived to Be Equitable.PRINCIPLE 4:PRINCIPLE 4: “Everything You Say or Do Is an Intervention that “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship..Determines the Future of the Relationship..PRINCIPLE 5:PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry. “Effective Helping Begins with Pure Inquiry.PRINCIPLE 6:PRINCIPLE 6: “It Is the Client Who Owns the Problem.”* “It Is the Client Who Owns the Problem.”*

(*Love the idea that the employee is a (*Love the idea that the employee is a “Client”!“Client”! Words matter!! Read a quote Words matter!! Read a quote from NFL player-turned lawyer-turned NFL coach, calling his players “my from NFL player-turned lawyer-turned NFL coach, calling his players “my clients.”)clients.”)

Employee as Client! Employee as Client! ““Helping” is what we [leaders] “do” for a living!Helping” is what we [leaders] “do” for a living!STUDY/PRACTICE “helping” as you would neurosurgery!STUDY/PRACTICE “helping” as you would neurosurgery!(“Helping” (“Helping” isis your neurosurgery!) your neurosurgery!)

53 = 53 = 5353* *** ** *No “bit players”*No “bit players”**6B+ = 6B+**6B+ = 6B+

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

““We do no great We do no great things, only small things, only small things with great things with great

love.”love.” —Mother Teresa—Mother Teresa

““I long to accomplish a I long to accomplish a great and noble task, but great and noble task, but

it is my chief duty to it is my chief duty to accomplish humble tasks accomplish humble tasks

as though they were great as though they were great and noble.”and noble.” —Helen Keller—Helen Keller

nonenone!!

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

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 more staff or more time and are therefore more costly. Although

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

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

questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a

positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

““Kindness Kindness Is Free.”Is Free.”

Source: Planetree Alliance/Griffin HospitalSource: Planetree Alliance/Griffin Hospital

K = R = K = R = PP

Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.

K = R = P/Kindness = Repeat business = Profit/K = R = P/Kindness = Repeat business = Profit/Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screwups.Apologizes with dispatch for screwups.““Over”-reacts to screwups of any magnitude.Over”-reacts to screwups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

[ALL TOO RARE] EXCELLENCE IN HEALTHCARE[ALL TOO RARE] EXCELLENCE IN HEALTHCARE

PLANETREE ALLIANCE*: BELIEFS STATEMENTPLANETREE ALLIANCE*: BELIEFS STATEMENT

We believe …We believe …

That we are human beings, caring for other human beingsThat we are human beings, caring for other human beings

We are all caregiversWe are all caregivers

Care giving is best achieved through kindness and compassionCare giving is best achieved through kindness and compassion

Safe, accessible high-quality care is fundamental Safe, accessible high-quality care is fundamental to patient-centric careto patient-centric care

In a holistic approach to meeting people’s needs ofIn a holistic approach to meeting people’s needs of body, mind and spiritbody, mind and spirit

Families, friends and loved ones are vital to the healing processFamilies, friends and loved ones are vital to the healing process

Access to understandable health information can empowerAccess to understandable health information can empower individuals to participate in their healthindividuals to participate in their health

The opportunity for individuals to make personal choices The opportunity for individuals to make personal choices related to their care is essentialrelated to their care is essential

Physical environments can enhance healing, health and wellbeingPhysical environments can enhance healing, health and wellbeing

Illness can be a transformational experience for Illness can be a transformational experience for patients, families and caregiverspatients, families and caregivers

*The Planetree Alliance, headquartered at the award-winning Griffin Hospital in Derby CT, is an association of hospitals *The Planetree Alliance, headquartered at the award-winning Griffin Hospital in Derby CT, is an association of hospitals committed to “patient-centric care”; the Planetree Alliance is the chief protagonist in this essential movement.committed to “patient-centric care”; the Planetree Alliance is the chief protagonist in this essential movement.

11/80*/80*

*Post-interview “Thank you” notes*Post-interview “Thank you” notes

““The deepest The deepest human need is human need is

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

““One kind word can One kind word can warm three winter warm three winter

months.”months.” – Japanese Proverb– Japanese Proverb

Tomorrow: How many Tomorrow: How many times will you mange to times will you mange to blurt out, “Thank you”? blurt out, “Thank you”?

[Count ‘em!]

[Practice makes better!* *The engineer from [Practice makes better!* *The engineer from

Manchester.]] [This is a Manchester.]] [This is a STRATEGIC skill!]skill!]

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

““Keep a short Keep a short enemies list. One enemies list. One

enemy can do more enemy can do more damage than the damage than the good done by a good done by a

hundred friends.”hundred friends.”

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

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

The “three-minute call” The “three-minute call” often-usually-invariably often-usually-invariably leads to a leads to a strenstrenggthenintheningg of the relationship. It not of the relationship. It not only acts as atonement only acts as atonement but also paves the path but also paves the path for a “better than ever” for a “better than ever”

trajectory.trajectory.

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSERESPONSE TO THE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

*effective “Repair”/Apology is of the*effective “Repair”/Apology is of the

utmost … utmost … strategicstrategic importance! importance!

*effective repair is a proper …*effective repair is a proper …

corecore valuevalue ! !

*effective repair is …*effective repair is …

trainabletrainable !!

*effective repair is a …*effective repair is a …

professionprofession ! !

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

>>>>PerfectionPerfection

Acquire vs maintain*:Acquire vs maintain*:

5X5X*Recession goal: Higher “market share” *Recession goal: Higher “market share” currentcurrent customers customers

““One of the secrets of One of the secrets of a long and fruitful life a long and fruitful life

is to forgive everybody is to forgive everybody of everything every of everything every night right before night right before

going to bed.”going to bed.” —Bernard Baruch—Bernard Baruch

Enterprise Value:Enterprise Value: “We are “We are thoughtful in thoughtful in all we do.”all we do.”

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.

““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

““The ‘golden rule’ is of The ‘golden rule’ is of no use whatsoever no use whatsoever

unless you realize it is unless you realize it is

your move.”your move.” —Frank Crane—Frank Crane

*Thoughtfulness is of the*Thoughtfulness is of the

utmost … utmost … strategicstrategic importance! importance!

*thoughtfulness is a proper … *thoughtfulness is a proper …

corecore valuevalue ! !

*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships)relationships)

GiveGive good good tea! tea!

Edward VIIEdward VIIB. FranklinB. FranklinOr Not: Clinton-Cornwallis-Yorktown

““In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to

engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a

simple brown suit and a fur cap. … simple brown suit and a fur cap. … Franklin’s miracle was that armed Franklin’s miracle was that armed only with his only with his canncannyy personal charm personal charm and reputation as a and reputation as a scientist and philosopher, he was able to cajole a wary scientist and philosopher, he was able to cajole a wary French government into lending the fledgling American French government into lending the fledgling American

nation an enormous fortune.nation an enormous fortune. … The enduring image of Franklin in Paris tends … The enduring image of Franklin in Paris tends to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue

affairs of state as rigorously as John Adams. affairs of state as rigorously as John Adams. When Adams joined Franklin in When Adams joined Franklin in Paris in 1779, he was scandalized by the late hours and Paris in 1779, he was scandalized by the late hours and French lifestyle his colleague had adopted [says Stacy French lifestyle his colleague had adopted [says Stacy

Schiff, in Schiff, in A Great ImprovisationA Great Improvisation]. Adams was clueless that ]. Adams was clueless that it was through the dropped hints and seemingly offhand it was through the dropped hints and seemingly offhand

remarks at these salons that so much of French remarks at these salons that so much of French diplomacy was conducted.diplomacy was conducted. … Like the Beatles arriving in America, Franklin … Like the Beatles arriving in America, Franklin aroused a fervor—his face appeared on prints, teacups and chamber pots. The extraordinary aroused a fervor—his face appeared on prints, teacups and chamber pots. The extraordinary popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could

ignore the enthusiasm that had won over both the nobility and the bourgeoisie. …”ignore the enthusiasm that had won over both the nobility and the bourgeoisie. …”

Source: “In Paris, Taking the Salons By Storm: How the Canny Ben Franklin TalkedSource: “In Paris, Taking the Salons By Storm: How the Canny Ben Franklin Talked the French into Forming a Crucial Alliance,” the French into Forming a Crucial Alliance,” U.S. News & World ReportU.S. News & World Report, 0707.08, 0707.08

““Berezovsky … came under attack from the newlyBerezovsky … came under attack from the newly powerful Primakov, and was shunned by most of thepowerful Primakov, and was shunned by most of the

political elitepolitical elite. . Putin made a Putin made a ppoint of oint of attendinattendingg Berezovsk Berezovskyy’s wife’s ’s wife’s

birthdabirthdayy part party. Berezovsky repaid y. Berezovsky repaid Putin by championing his Putin by championing his

candidacy to run the F.S.B., candidacy to run the F.S.B., Russia’s secret police, formerly the Russia’s secret police, formerly the

K.G.B., and ultimately by K.G.B., and ultimately by suggesting that the Family make suggesting that the Family make

him president.him president. To sum up, the man’s qualifications To sum up, the man’s qualifications were: he did not take a bribe from a car dealership and had were: he did not take a bribe from a car dealership and had been unafraid to go to a party for an acquaintance who had been unafraid to go to a party for an acquaintance who had

fallen into disfavor.”fallen into disfavor.” —”Dead Soul,” —”Dead Soul,” Vanity FairVanity Fair, October 2008, October 2008

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

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied backgrounds; it of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his was a quality that would pay great dividends during his

future coalition command.”future coalition command.”

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Edward VII/dance-flatter-mingle-learn the languageEdward VII/dance-flatter-mingle-learn the languageVladimir Putin/birthday party of outgroup guy’s wifeVladimir Putin/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

R.O.I.RR.O.I.R..

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

““The 7-S Model”The 7-S Model”

StrategyStrategyStructureStructureSystemsSystems

StyleStyleSkillsSkillsStaffStaff

Super-ordinate goalSuper-ordinate goal


“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)


StrategyStrategyStructureStructureSystemsSystems

StyleStyle (Corporate “Culture,” “The (Corporate “Culture,” “The wayway

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, (Vision,

Core Values)Core Values)

““If I could have chosen not to tackle the IBM culture If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of comparison, changing the attitude and behaviors of

hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.

[Yet] I came to see in my [Yet] I came to see in my time at IBM that culture time at IBM that culture

isn’t just one aspect of the isn’t just one aspect of the

game game ——it is the it is the gamegame.”.” —Lou Gerstner,—Lou Gerstner,

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

“… “… it is it is the the

game.”game.”

3030--

fold!fold!

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 44 (My only “for sure” in 44 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” in (My only “for sure” in 4444 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.)

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

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

““We have a We have a strategic plan. strategic plan.

It’s called doing It’s called doing things.”things.” —Herb Kelleher—Herb Kelleher

A man approached JP Morgan, held up an envelope, and said, “Sir, A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will in my hand I hold a guaranteed formula for success, which I will

gladly sell you for $25,000.”gladly sell you for $25,000.”

“Sir,” JP Morgan replied, “I do not know what is in the envelope, “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, Ihowever if you show me, and I like it, I

give you my word as a gentleman that I will pay you what you ask.” give you my word as a gentleman that I will pay you what you ask.”

The man agreed to the terms, and handed over the envelope. JP The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the one look, a mere glance, then handed the piece of paper back to the

gent.gent.

And paid him the And paid him the agreed upon $25,000.agreed upon $25,000.

1. 1. Every morning, write Every morning, write a list of the things a list of the things that need to be done that need to be done that day. that day.

2.2. Do them.Do them. Source: Hugh MacLeod/tompeters.com/NPRSource: Hugh MacLeod/tompeters.com/NPR

Korea!Korea!

““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 areBy the time our rivals are

ready with wires and screws, we are on versionready 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 —Bloomberg by

BloombergBloomberg

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

““relentless relentless trial and trial and error”error”**

*cornerstone of effective approach to “rebalancing” company portfolios in the *cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditionsface of changing and uncertain global economic conditions (Wall Street Journal, (Wall Street Journal,

11.08.10)11.08.10)

Mickey DrexlerMickey Drexler

**Bias for instant action/Towering impatience with in-action**Bias for instant action/Towering impatience with in-action**Impatient but not brutal **Impatient but not brutal **Relentless/Speed-of-light experimentation; more ASAP if works, drop if not**Relentless/Speed-of-light experimentation; more ASAP if works, drop if not**Vibrates with energy (literally)**Vibrates with energy (literally)**Always on the prowl—anywhere, everywhere—for ideas**Always on the prowl—anywhere, everywhere—for ideas**Lots of team-standing-around-making-instant-assessments-decisions—all**Lots of team-standing-around-making-instant-assessments-decisions—all contributing contributing**Likes working with women more than men because F more intuitive than M**Likes working with women more than men because F more intuitive than M**Dresses like the brand—at 66**Dresses like the brand—at 66**Offense, not defense**Offense, not defense**Communicates all the time [removes fear from hearing “famous” CEO]. Everyone, **Communicates all the time [removes fear from hearing “famous” CEO]. Everyone, including most junior, made part of the decision-making team including most junior, made part of the decision-making team**Listens attentively regardless of age/seniority**Listens attentively regardless of age/seniority**Obvious in his transparent respect for young employees**Obvious in his transparent respect for young employees**Trusts intuition plus fanatic about the numbers **Trusts intuition plus fanatic about the numbers **Expects everyone to know their numbers cold from memory**Expects everyone to know their numbers cold from memory**Always aware of “the business case”—as well as fashion-master**Always aware of “the business case”—as well as fashion-master**Aggressive pricing**Aggressive pricing**MBWA/Managing By Wandering Around**MBWA/Managing By Wandering Around**Open with everyone, from youth to folks at Earnings Call**Open with everyone, from youth to folks at Earnings Call**Constant customer contact/Dialogues with customer/React instantly to customer**Constant customer contact/Dialogues with customer/React instantly to customer feedback feedback**Willing to act (experiment) based on one datapoint**Willing to act (experiment) based on one datapoint**Engages with most junior people**Engages with most junior people****At 66, comfortably uses “hot” words like “Cool” “Wow”At 66, comfortably uses “hot” words like “Cool” “Wow”

Source: Source: The New YorkerThe New Yorker/0920.10/0920.10

We We areare the the companycompany we keepwe keep

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

FFFFFFF*F*

*Find a Fellow Freak Faraway*Find a Fellow Freak Faraway

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flames.”fan the flames.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

““d”iversityd”iversity

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one randomrandom (and therefore diverse) and one (and therefore diverse) and one

consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Firms, Schools, and Societies

Can you pass the …Can you pass the …

“Squint “Squint test”?test”?

“‘“‘Decentralization’ Decentralization’ is is notnot a piece of a piece of

paper. It’s paper. It’s notnot me. me. It’s either in your It’s either in your heartheart, or not.”, or not.”

——Brian Joffe/BIDvestBrian Joffe/BIDvest

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

—Samuel Beckett—Samuel Beckett

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

““In business, you In business, you rewardreward people for taking people for taking risksrisks..

When it When it doesn’tdoesn’t workwork outout you you ppromoteromote them-because them-because they were willing to try new they were willing to try new

things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try

a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

Success 101:Success 101: “Whoever “Whoever tries the most stuff and tries the most stuff and screws the most stuff up screws the most stuff up

and most rapidly and most rapidly launches the next try launches the next try

wins. Failures are not to wins. Failures are not to be ‘tolerated,’ they are be ‘tolerated,’ they are

to be celebrated.”to be celebrated.”

"How often I found "How often I found where I should be where I should be

going only by setting going only by setting out for somewhere out for somewhere

else.”else.” — Buckminster Fuller— Buckminster Fuller

He who has the He who has the quickest quickest

“O.O.D.A. “O.O.D.A. Loops”Loops”** wins! wins!

**OObserve. bserve. OOrient. rient. DDecide. ecide. AAct. /Col. John Boydct. /Col. John Boyd

OODA Loop/Boyd Cycle

“Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST

SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts

or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER

HEAD TO HEAD)

BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

Read This!Read This!

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

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

of Innovationof Innovation

““The secret of fast The secret of fast progress is progress is

inefficiencinefficiencyy, fast , fast and furious and and furious and

numerous numerous failures.”failures.”

—Kevin Kelly

““No man ever No man ever became great became great

except through except through many and great many and great

mistakes.”mistakes.” —William Gladstone —William Gladstone

““I have missed more than 9,000 I have missed more than 9,000 shots in my career. I have lost shots in my career. I have lost

almost 300 games. On 26 occasions almost 300 games. On 26 occasions I have been entrusted to take the I have been entrusted to take the game winning shot—and missed. game winning shot—and missed.

And I have failed over and over and And I have failed over and over and over again in my life. And that is over again in my life. And that is

why I succeed.”why I succeed.” —Michael Jordan—Michael Jordan

11/45/45

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for ActionA Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

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

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

““One of my superstitions had One of my superstitions had always been when I started to always been when I started to

go anywhere or to do go anywhere or to do

anything,anything, not to not to turn backturn back ,, or or

stop, until the thing intended stop, until the thing intended was accomplished.”was accomplished.” —Grant*

*Ulysses Simpson Grant was actually Hiram Ulysses Grant

““This [adolescent] incident [of getting from point A to point B] is This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless notable not only because it underlines Grant’s fearless

horsemanship and his determination, but also it is the first known horsemanship and his determination, but also it is the first known

example of a very important peculiarity of his character:example of a very important peculiarity of his character:

Grant had an extreme, Grant had an extreme, almost phobic dislike of almost phobic dislike of

turning back and retracing turning back and retracing his stepshis steps.. If he set out for somewhere, he would If he set out for somewhere, he would getget

there somehow, whatever the difficulties that lay in his way. This there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him idiosyncrasy would turn out to be one the factors that made him

such a formidable general. Grant would always, always press on—such a formidable general. Grant would always, always press on—

turning back was not an option for him.”turning back was not an option for him.”

——Michael Korda, Michael Korda, Ulysses GrantUlysses Grant

On ADMIRAL HORATIO

NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

2,000,0002,000,000

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

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

FiveFivepianopiano

ss

Carl’sCarl’s Street- Street-

Sweeper Sweeper

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

FFLLOOWWEERRPPOOWWEERR**

*Thanks, Stanley Marcus*Thanks, Stanley Marcus

““Think ofThink of a $350,000 a $350,000

note walking in note walking in

the door.” the door.”

Little =Little =

BIBIGG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

Socks = Socks = 10,00010,000

401(k) active opt-in:401(k) active opt-in: 45%45%401(k) as default:401(k) as default: 86%86%Source: Source: New York TimesNew York Times, 1202.08 (research by Richard, 1202.08 (research by Richard Thaler, co-author Thaler, co-author NudgeNudge))

<TG<TGWWand …and …

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

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

And in And in Milwaukee …Milwaukee …

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

““At our core, we’re a At our core, we’re a coffee company, but the coffee company, but the opportunity we have to opportunity we have to

extend the brand is extend the brand is

beyond coffee;beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

““An adventure in An adventure in ‘shoppertainment’”‘shoppertainment’”

——Jungle Jim’s International Market, Fairfield, OH (George Whalin, Jungle Jim’s International Market, Fairfield, OH (George Whalin, Retail SuperstarsRetail Superstars))

““At our core, we’re a At our core, we’re a coffee company, but the coffee company, but the opportunity we have to opportunity we have to

extend the brand is extend the brand is

beyond coffee;beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

““It’s simple, really, It’s simple, really, Tom. Hire forTom. Hire for s, s,

and, and, aboveabove allall, , ppromoteromote for for s.”s.”

—Starbucks middle manager/field

CCXXOO**Chief eXperience Officer

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all “At Sony we assume that all products of our competitors products of our competitors

have basically the same have basically the same technology, price, performance technology, price, performance

and features.and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.” ——

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““We don’t have a good language to We don’t have a good language to talk about this kind of thing. In talk about this kind of thing. In

most people’s vocabularies, design most people’s vocabularies, design means veneer. … But to me, nothing means veneer. … But to me, nothing could be further from the meaning could be further from the meaning

of design.of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs—Steve Jobs

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe principalrincipal

differencedifference between love between love

and hate! and hate!

CCDDOO**Chief DesignDesign Officer

“The ‘surplus society’ has a surplus of

similarsimilar companies, employing

similarsimilar people, with

similarsimilar educational backgrounds,

coming up with similarsimilar ideas,

producing similarsimilar things, with

similarsimilar prices and

ssimilarimilar quality.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

The Value-added Ladder

Spellbinding Spellbinding ExperiencesExperiences

ServicesGoods

Raw Materials

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George,

Domain Home Fashions

“The sun is setting on the Information Society—even before we have fully adjusted to its

demands as individuals and as companies. We have lived as hunters and as farmers, we have

worked in factories and now we live in an information-based society whose icon is the

computer. We stand facinWe stand facingg the fifth kind of societthe fifth kind of societyy: : the Dream Societthe Dream Society.y. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional

value to products and services.”

Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business


Dreams Come TrueDreams Come TrueSpellbinding Experiences

ServicesGoods

Raw Materials

“When I first suggested that LoveLove was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I kept at them. I

knew it was LoveLove that was missing. I knew that

LoveLove was the only way to ante up the emotional temperature and create the new kinds of

relationships brands needed. I knew that LoveLove** was the only way business could respond to the

rapid shift in control to consumers.” —Kevin Roberts/Lovemarks

*Stew’s bag in coffin


LovemarkLovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesServicesGoods

Raw Materials

CCLL OO*

*Chief Lovemark Officer

MoreMoreMooreMoore

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.the Value-added Ladder.

$50B+*$50B+**IBM Global Services/*IBM Global Services/

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

MasterCard MasterCard AdvisorsAdvisors

California Closets:California Closets: “a “a whole-life upgrade, not whole-life upgrade, not just a tidy bedroom.”just a tidy bedroom.”

——WSJWSJ/0329.07, /0329.07, “Why the Closet-“Why the Closet-Store Guy Wants to Be Your Therapist”Store Guy Wants to Be Your Therapist”

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.


Customer Success/ Customer Success/ Gamechanging SolutionsGamechanging Solutions

LovemarkLovemark Dreams Come True

Spellbinding ExperiencesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesGoods

Raw Materials


HiltonHiltonHowardHowardHerbHerbHenry IHenry IHenry IIHenry IIHiramHiramHoratioHoratioHsiehHsiehHillHillHartvilleHartvilleHelgesenHelgesen

Hartville HardwareHartville HardwareHartville, Ohio, pop Hartville, Ohio, pop <2,500<2,500

100,000 square feet100,000 square feet (plus catalog, (plus catalog, Web serve location) Web serve location)Family runFamily run“One of biggest and best tool merchants “One of biggest and best tool merchants in USA” in USA”Customers from 100s of miles awayCustomers from 100s of miles awayRenowned semi-annual tool sale (12,000 Renowned semi-annual tool sale (12,000 transactions at recent incarnation)transactions at recent incarnation)Anchor for 110-independent shops @ Anchor for 110-independent shops @ Hartville MarketPlace Hartville MarketPlaceStaff as premier trainersStaff as premier trainersEtc.Etc.Etc.Etc.Source: Source: Retail Superstars: Inside the 25 Best Independent Stores in AmericaRetail Superstars: Inside the 25 Best Independent Stores in America, George Whalin, George Whalin

“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, ‘How do I structures, ‘How do I build a small firm for build a small firm for myself?’ The answer myself?’ The answer

seems obviousseems obvious … …

“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 to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

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

““It’s just a fact:It’s just a fact:

Survivors Survivors underperform.”underperform.”

—Dick Foster—Dick Foster

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

Dick Kovacevich: You You don’t get don’t get better by better by

being being bigger. You bigger. You get worse.”get worse.”

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* * ****

**“agile creatures darting between the legs of“agile creatures darting between the legs of the multinational monsters"the multinational monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

““agile creatures agile creatures darting between the darting between the legs of the legs of the multinational multinational monsters"monsters"

Source:Source: Bloomberg BusinessWeek Bloomberg BusinessWeek on the German …on the German … MITTELSTANDMITTELSTAND

Larry JaneskyLarry Janesky Rocks … Rocks …

*Basement Systems Inc.*Basement Systems Inc.

(Seymour CT) (Seymour CT)

**Dry Basement ScienceDry Basement Science (115,000!) (115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

$62,000,000$62,000,000

The Red The Red Carpet Carpet StoreStore

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

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

Jim’s GroupJim’s Group:: Jim Penman.* Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group. 1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees2,600 franchisees (Australia, NZ, UK). (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is can leave at will. 0-1 complaint per year is

norm; cut bad ones quickly.norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

““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

““You do not merely want to You do not merely want to

be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry

Garcia

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

Independent Independent Stores in AmericaStores in America —

by George Whalin

Jungle Jim’s International Market, Fairfield, Ohio:Jungle Jim’s International Market, Fairfield, Ohio: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as

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

Bronner’s Christmas Wonderland, Frankenmuth, Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000:Michigan, pop 5,000: 98,000-square-foot98,000-square-foot “shop” “shop” features the likes of features the likes of 6,000 Christmas ornaments, 6,000 Christmas ornaments, 50,000 trims50,000 trims, and anything else you can name if it , and anything else you can name if it pertains to Christmas.pertains to Christmas.

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

Virtual tour: www.retailsuperstars.comVirtual tour: www.retailsuperstars.com

Abt Electronics/Family/1936Abt Electronics/Family/1936

Insane competition (Chicagoland!)Insane competition (Chicagoland!)Campus/350K sqft (40K sqmtrs)/37 acres/$300MCampus/350K sqft (40K sqmtrs)/37 acres/$300MDesign Center (Classes beyond product, etc.)Design Center (Classes beyond product, etc.)“Destination” like Ikea (restaurant, atrium“Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon with spectacular flowers, 7,500 gallon aquarium, etc.) aquarium, etc.)In-house delivery teams (Attn uniform design, In-house delivery teams (Attn uniform design, etc.)etc.)Training/knowledge training!!!!!!!!Training/knowledge training!!!!!!!!“Yes.” Period.“Yes.” Period.“Over”-staffed“Over”-staffedMerchandising (boats displaying marineMerchandising (boats displaying marine electronics, cars with various systems, etc.) electronics, cars with various systems, etc.)Web (encyclopedic info re almost all stuff sold,Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) blog, live chat with live experts “24/7”, etc.)Rating services (Rating services (>>>>>> Home Depot, Lowes, etc.) Home Depot, Lowes, etc.)

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

1. Courses/Workshops/Demos/Engagement 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books2. Instructional guides/material/books3. Events & Events & Events3. Events & Events & Events4. Community of customers 4. Community of customers 5. Destination 5. Destination 6. Women-as-customer6. Women-as-customer7. Staff selection/training/retention (FANATICISM) 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 10. Tableaus/Products-in-use 11. Flow/starts & finishes11. Flow/starts & finishes12. 100% conscious experience/“Moments of 12. 100% conscious experience/“Moments of

truth” truth” 13. Constant experimentation/Pursue LBTs 13. Constant experimentation/Pursue LBTs 14. Social Media/Ongoing conversation 14. Social Media/Ongoing conversation 15. Community star 15. Community star 16. Aim high16. Aim high17. PASSION17. PASSION

Orvis fly-fishing school/Orvis fly-fishing school/Fly-fishing Museum Fly-fishing Museum

Harley HogsHarley Hogs

Ikea/Best in LA <$25Ikea/Best in LA <$25

Celebration of Golf/Celebration of Golf/Art of the GameArt of the Game

Small Giants: Companies that Chose to Be Great Instead of Big

““They cultivated They cultivated exceptionally intimate relationships with exceptionally intimate relationships with customers and supplierscustomers and suppliers, , based on personal contact, one-based on personal contact, one-on-one interaction, and mutual commitment to delivering on on-one interaction, and mutual commitment to delivering on promises.promises.

“Each company had an ach company had an extraordinarily intimate relationship extraordinarily intimate relationship with the local city, town, or countywith the local city, town, or county in which it did business in which it did business -- a relationship that went well beyond the usual concept of -- a relationship that went well beyond the usual concept of `giving back.’ `giving back.’

““The companies had what struck me as The companies had what struck me as unusually unusually intimate intimate workplacesworkplaces..

““I noticed the I noticed the passionpassion that the leaders brought to what the that the leaders brought to what the company did. company did. They loved the subject matterThey loved the subject matter, whether it be , whether it be music, safety lighting, food, special effects, constant torque music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or hinges, beer, records storage, construction, dining, or fashion."fashion."

**Lived in same town all adult lifeLived in same town all adult life*First generation that’s wealthy/*First generation that’s wealthy/ no parental support no parental support*“Don’t look like millionaires, don’t dress*“Don’t look like millionaires, don’t dress like millionaires, don’t eat like like millionaires, don’t eat like millionaires, don’t act like millionaires” millionaires, don’t act like millionaires”*“Many of the types of businesses [they]*“Many of the types of businesses [they] are in could be classified as ‘dull- are in could be classified as ‘dull- normal.’ normal.’ [They] are welding contractors, [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” diesel engines, paving contractors …”

Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko

H10H10

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

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

**“Women now drive the global economy. Globally, they control “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the 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 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 India combined—more than twice as big in fact. Given those numbers, it would be foolish to

ignore or underestimate the female consumer. And yet many companies do just that—even ones 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 comes to women. Consider Dell’s that are confidant that they have a winning strategy when it comes to women. Consider Dell’s

…”…”

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

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘‘womenomics,’ the economy womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude —Aude

Zieseniss de Thuin, Women’s Forum for the Economy and Society Zieseniss de Thuin, Women’s Forum for the Economy and Society

““Women Women areare thethe

majority majority market”market”

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

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

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

McDonald’sMcDonald’s (“mom-centered” to “majority

consumer”; not via kids)

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

P&GP&G (more than “house cleaner”)

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

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

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

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

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

Lowe’sLowe’s!!

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

2.62.6 vs.vs.

2121

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity.. —Judy B. Rosener, —Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

““Power Women 100”/Power Women 100”/ForbesForbes 25.10.10 25.10.1026 CEOs Public Companies:26 CEOs Public Companies:

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

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

**Women Women decidedecide**Women Women savesave**Women Women ssppendend**Women Women rulerule

*Women *Women decidedecide*Women *Women savesave*Women *Women ssppendend*Women *Women rulerule

**In the In the develodeveloppeded world world**In the In the develodeveloppining worldg world**The trend is The trend is acceleratinacceleratingg

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

““Baby-boomer Baby-boomer WomenWomen: : TheThe Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers”

—David Wolfe and Robert Snyder, —David Wolfe and Robert Snyder, Ageless MarketingAgeless Marketing

44-6544-65:: “New “New Customer Customer Majority”Majority” * *

*45% larger than 18-43; 60% larger by 2010*45% larger than 18-43; 60% larger by 2010

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

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

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

needs are so needs are so poorlpoorlyy

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

7/17/133

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

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

*“[55-plus] are more active in online finance,*“[55-plus] are more active in online finance, shopping and entertainment than those under 55?”shopping and entertainment than those under 55?” — —Forrester Research.(Forrester Research.(USA TodayUSA Today, 8 January 2009), 8 January 2009)

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

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

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

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

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

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

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

have arrived!have arrived!

H11H11

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver 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

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““Let us create Let us create such a building such a building

that future that future generations will generations will

take us for take us for lunatics.”lunatics.” —the church hierarchs at Seville—the church hierarchs at Seville

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!!

Sir Richard’s Rules:Sir Richard’s Rules:

Follow your passions.Follow your passions.Keep it simple.Keep it simple.

Get the best people to help Get the best people to help you.you.

Re-create yourself.Re-create yourself.Play.Play.

Source: Source: Fortune Fortune on Branson/10.03on Branson/10.03

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Summary:Summary: H11H11

11H11H: : HHilton, ilton, HHoward, oward, HHerb, erb, HHenry I, enry I, HHenry II,enry II, HHiram, iram, HHoratio, oratio, HHill, ill, HHartville, artville, HHelgesen,elgesen, HHsieh sieh

**Sweat the details!Sweat the details!**Stay in touch!Stay in touch!**It’s all about the people!It’s all about the people!**Small courtesies, big payoff!Small courtesies, big payoff!**Most tries wins! Most tries wins! **Relentless!Relentless!**Offense!Offense!**Little BIG Things!Little BIG Things!**Monopoly through EXCELLENCE!Monopoly through EXCELLENCE!**Women rule!Women rule!**Wow!Wow!

The Memories The Memories That Matter.That Matter.

The Memories That MatterThe Memories That Matter

The people you developed who went on to stellarThe people you developed who went on to stellar accomplishments inside or outside the company. accomplishments inside or outside 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 longshots (people with “a certain something”) you bet on whoThe longshots (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 years later say The people of all stripes who 2/5/10/20 years later say ““You made a difference in my life,” “Your belief in You made a difference in my life,” “Your belief in meme changed everything.”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.”

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are

heading in the next 12 months. Please explain in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last five years. Whatdevelopment triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”


Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”

A frighteningly consistent record of having invariablyA frighteningly consistent record of having invariably said, said, “Go for it!”“Go for it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.

Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances.… regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)


Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.


An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.

A Mandela-like “naïve” belief that others will rise to theA Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity.occasion if given the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”

Humility in the face of others, at every level, who knowHumility in the face of others, at every level, who know more than you about “the way things really are.”more than you about “the way things really are.”Bit your tongue on a thousand occasions—and Bit your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)


Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.Always and relentlessly put at the top of your list/any list being firstAlways and relentlessly put at the top of your list/any list being first

and foremost and foremost “of service”“of service” to your internal and to your internal and externalexternal constituents. (Employees/Peers/Customers/Vendors/Community.)constituents. (Employees/Peers/Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)


Created the sort of workplaces you’d like your kids to inhabit.Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?”(Explicitly conscious of this “Would I want my kids to work here?” litmus test.)litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of A self- and relentlessly enforced group standard of “ “EXCELLENCE-in-all-we-do”/“EXCELLENCE in ourEXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.”behavior toward one another.”

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

admires, and wants to hold on to, and not lose, admires, and wants to hold on to, and not lose, goodness. It admires virtue. At the end it gives goodness. It admires virtue. At the end it gives

its greatest tributes to generosity, honesty, its greatest tributes to generosity, honesty, courage, mercy, talents well used, talents that, courage, mercy, talents well used, talents that, brought into the world, make it better. That’s brought into the world, make it better. That’s

what it really admires. That’s what we talk what it really admires. That’s what we talk about in eulogies, because that’s what’s about in eulogies, because that’s what’s

important. We don’t say, ‘The thing about Joe important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can, ‘The thing was he was rich!’ We say, if we can, ‘The thing about Joe was he took good care of people.’”about Joe was he took good care of 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 , The Wall Street Journal, Wall Street Journal, June 21-22, 2008June 21-22, 2008

ExcellenceExcellence

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..

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 of (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. 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! Always!)Be of service! Always!)EXCELLENCEEXCELLENCE!! (The only standard! Never an exception! (The only standard! Never an exception! Start NOW! Start NOW! No excuses!)No excuses!)

““Excellence …Excellence … can be obtained if you:can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

AppendixAppendix

The “3H The “3H TheoryTheory

of Everything” of Everything”

Tom Peters/0913.10Tom Peters/0913.10

HowardHowardHiltonHiltonHerbHerb

Starbucks boss Howard Starbucks boss Howard Schultz visits 25 shopsSchultz visits 25 shops

a week. a week.

Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned

in your long and distinguished career?” in your long and distinguished career?”

His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

Conrad Hilton shares his Conrad Hilton shares his foremost key to success.foremost key to success.

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

upon being asked his “secret to success”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 on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-pageat Southwest Airlines (SWA’s pilots union took out a full-page ad in ad in USA TodayUSA Today thanking HK for all he had done; across the thanking HK for all he had done; across the

way in Dallas American Airlines’ pilots were picketing theway in Dallas American Airlines’ pilots were picketing the Annual Meeting)Annual Meeting)

Herb Kelleher (Southwest Herb Kelleher (Southwest Airlines) says this is his Airlines) says this is his onlyonly success “secret.” success “secret.”

3H: Howard, Hilton, Herb3H: Howard, Hilton, Herb

****Stay in touch!Stay in touch!****Sweat theSweat the details! details!****It’s the people,It’s the people, stupid! stupid!

11h theory of everything

Business

line supervisors

line managers

joseph heller

line mana g

gobs of time

line supervisor slot

business conduct

business leaders