55%55%

““Sanitary revolution”Sanitary revolution” … … mortality in major citiesmortality in major cities

downdown 5555%%

between 1850 and 1915between 1850 and 1915!!Source: Tom Farley & Deborah Cohen, Source: Tom Farley & Deborah Cohen, Prescription for a Healthy NationPrescription for a Healthy Nation

Mark Pettus M.D.:Mark Pettus M.D.: “If God spoke to “If God spoke to me by saying, ‘Mark, me by saying, ‘Mark,

you’re down to your last you’re down to your last three words: What would three words: What would you want to say to your you want to say to your

fellow humans that would fellow humans that would make the most positive make the most positive

impact?’ It would be a close impact?’ It would be a close call between Love Thy call between Love Thy

Neighbor and …Neighbor and …

““If God spoke to me by saying, ‘Mark, you’re down to your last three words: What If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive would you want to say to your fellow humans that would make the most positive

impact?’ It would be a close call between Love Thy Neighbor and …impact?’ It would be a close call between Love Thy Neighbor and …

Wash Wash Your Your

HandsHands——Mark Pettus, M.D.,Mark Pettus, M.D., The Savvy Patient The Savvy Patient

Tom Peters’Tom Peters’

Excellence:Excellence:The Race to The Race to

The Top.The Top.

ISSA/INTERCLEAN North AmericaISSA/INTERCLEAN North America20 October 201120 October 2011

(Slides at (Slides at tompeters.comtompeters.com))

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

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

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

andand “Verdana”“Verdana”

Date: Date: SeptemberSeptemberLocation:Location: Chicago ChicagoClient:Client: 500 law-firm 500 law-firm partnerspartners

Date: Date: SeptemberSeptemberLocation:Location: ChicagoChicagoClient:Client: 500 law-firm 500 law-firm partnerspartnersDilemma:Dilemma: “Legal practice “Legal practice becoming becoming commoditizedcommoditized”/ ”/ “big clients “big clients cuttincutting g costscosts, , bringing the work bringing the work insideinside,” ,” “more and more “more and more comcomppetitive bidetitive bid situations” situations”

IBIBMMto …to …

IIBBMM

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

What can What can

BROWNBROWN

Do For You?Do For You?

““BiBigg Brown’s New Ba Brown’s New Bagg: UPS : UPS Aims to Be the Traffic ManaAims to Be the Traffic Managger er for Corfor Corpporate Americaorate America”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet ssweet sppot in the endless loop ot in the endless loop

of of ggoods, information and oods, information and cacappital that all the ital that all the ppackages ackages [it [it

moves]moves] re reppresentresent.”.” —ecompany.com —ecompany.com

(E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M manages the logistics of 4.5M

Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

MasterCard MasterCard AdvisorsAdvisors

I. LAN [Local Area Network] Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by Best Buy.

IV. Flagship of Best BuyFlagship of Best Buy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover.* Strategy Makeover.* [*and demise of circuit City][*and demise of circuit City]

Meanwhile, in Meanwhile, in Seymour CT Seymour CT ……

Basement Systems Inc.

““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

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

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

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jim’s Jungle Jim’s

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

you by you by 4,000 vendors4,000 vendors.. Customers come from Customers come from every corner of the globe.” every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, ,

MichiMichigganan, pop 5,000:, pop 5,000: 98,000-square-foot98,000-square-foot

“shop” features the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it pertains to Christmas.

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

Tactic I:Tactic I:TGRsTGRs

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

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

sir?”sir?”

<TG<TGWWandand … …

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

Carl’sCarl’s Street- Street-

Sweeper Sweeper

Tactic II:Tactic II:LBTsLBTs

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

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

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

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

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

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

Tactic III:Tactic III:

K = R = PK = R = P

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

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

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower apologies … Toro, the lawn mower folks, reduced the average cost of folks, reduced the average cost of

settling a claim fromsettling a claim from $$115,000115,000 in in

1991 to1991 to $$35,00035,000 in 2008 in 2008 …… and and the companthe companyy hasn’t hasn’t been to trial in the been to trial in the

lastlast

1515 y yearsears!! Source: John Kador, Source: John Kador, Effective ApologyEffective Apology

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

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

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

nonenone of THE top 15 factors of THE top 15 factors

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

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

EmploEmployyee Satisfactionee Satisfaction

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

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

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

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

Bedrock I:Bedrock I:The 1The 1stst

CustomerCustomer

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

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

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

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

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

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

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

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret? To "What's the Secret? To

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

"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 —Ari Weinzweig, Zingerman's

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

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

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, by George Whalinby George Whalin

WegmansWegmans

..

Get This RightGet This Right!!

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

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

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

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

same awareness?same awareness?

““People leave People leave managers not managers not

companies.”companies.” —Dave Wheeler—Dave Wheeler

Bedrock II:Bedrock II:Conrad’s Rule Conrad’s Rule

ConradConrad HiltonHilton,, at a gala celebrating at a gala celebrating

his career, was called to the podium and asked,his career, was called to the podium and asked,

“What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

Bedrock III:Bedrock III:Ross’s RuleRoss’s Rule

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

—H. Ross Perot—H. Ross Perot

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

1/451/45

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

1/50001/5000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

The Last The Last Word:Word:

Skinning Skinning CatsCats

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!