dick kovacevich: you don’t get better by being bigger. you get worse.”

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Paul Ormerod: 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 build a structures, ‘How do I build a small firm for myself?’ The small firm for myself?’ The answer seems obvious answer seems obvious

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Paul Ormerod: “ 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 …. - PowerPoint PPT Presentation

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Page 1: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Paul Ormerod: “I am often I am often asked by would-be asked by would-be

entrepreneurs seeking entrepreneurs seeking escape from life within escape from life within

huge corporate 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 … …

Page 2: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

“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

Page 3: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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

Page 4: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Univ. of Maryland/Census Bureau/1992-2005Univ. of Maryland/Census Bureau/1992-2005

% of USA % of USA netnet jobs added from jobs added from

startupsstartups??????Source: Source: Bloomberg BusinessWeekBloomberg BusinessWeek

Page 5: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

100100%%

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

#2 China#2 China

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

#2 China#2 China

#1 #1 GermanyGermany

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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

Page 9: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““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

Page 10: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Tweet 10.05.10:Tweet 10.05.10: Word Word

"commodity" "commodity" obscene!! "Commodity" state of "Commodity" state of

mind! mind! ANYTHINGANYTHING ... can ... can be differentiated be differentiated

numerous ways—logistics, numerous ways—logistics, quality of relationship, co-quality of relationship, co-development of new use ...development of new use ...

Page 11: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**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

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““The ‘mass market’ is dead. The ‘mass market’ is dead. Consumers look for either price Consumers look for either price

or quality.or quality. The middle is untenable.”

—Walter Robb/COO/Whole Foods/—Walter Robb/COO/Whole Foods/Investors Business DailyInvestors Business Daily/06.20.05/06.20.05

Page 13: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Before we Before we begin …begin …

Page 14: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

lieutenants and captains and majors, it lieutenants and captains and majors, it

would be a tragedy. would be a tragedy. If he If he lost his lost his

serserggeants it eants it would be a would be a

catastrocatastropphehe..

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#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Page 16: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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Before we Before we begin …begin …

Page 18: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

The … The … 4H4H

“Theory of “Theory of Everything” Everything”

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

HiltonHiltonHowardHowardHerbHerbHsiehHsieh

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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 …

Page 21: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

Page 22: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

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

HiltonHiltonHowardHowardHerbHerbHsiehHsieh

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2255

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MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

Page 26: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

HiltonHiltonHowardHowardHerbHerbHsiehHsieh

Page 27: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““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)

Page 28: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

"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

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Zabar’sZabar’s Parking Parking Garage* Garage*

*Retail Superstars: Inside the 25 Best Independent Stores in America, *Retail Superstars: Inside the 25 Best Independent Stores in America, George WhalinGeorge Whalin(Also:(Also: Small Giants: Companies that Chose to Be Great Instead of Big, Small Giants: Companies that Chose to Be Great Instead of Big, Bo Burlingham)Bo Burlingham)

Page 30: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

WegmansWegmans

..

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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 from every corner of the globe.” Customers from every corner of the 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

Page 32: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

HiltonHiltonHowardHowardHerbHerbHsiehHsieh

Page 33: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Page 36: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

HiltonHiltonHowardHowardHerbHerbHsiehHsieh

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4H4H: : HHilton, ilton, HHoward, oward, HHerb, erb, HHsiehsieh

****Sweat the details!Sweat the details!****Stay in touch!Stay in touch!****It’s all about the people! It’s all about the people! ****Wow!Wow!

Page 38: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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.

MichelangeloMichelangelo

Page 39: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Iowa’s Advanced Manufacturing Conference:Iowa’s Advanced Manufacturing Conference:Managing in the Global EconomyManaging in the Global Economy

Des Moines/07 October 2010Des Moines/07 October 2010

(Slides at tompeters.com)(Slides at tompeters.com)(Also see IAMC LONG)(Also see IAMC LONG)

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Part Part ONEONE

Page 41: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

#1#1

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Little =Little =

BIGBIG***Thank you, Mr. Prime Minister*Thank you, Mr. Prime Minister

Page 43: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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2,000,0002,000,000

Page 45: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Carl’sCarl’s Street- Street-

Sweeper Sweeper

Page 46: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

Page 47: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

Page 48: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

<TG<TGWWand …and …

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

Page 49: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

The Value-added Ladder

Scintillating Scintillating EXPERIENCESEXPERIENCES

ServicesServicesGoodsGoods

Raw Materials Raw Materials

Page 50: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

And in And in Milwaukee …Milwaukee …

Page 51: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

Page 52: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

#2#2

Page 53: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

UpUp

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

Page 54: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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

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““Big Brown’s New Bag: UPSBig Brown’s New Bag: UPS

Aims to Be theAims to Be the Traffic Traffic Manager for Manager for CorCorpporate orate

AmericaAmerica”” —Headline/BW

Page 56: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsScintillating ExperiencesScintillating Experiences

ServicesServicesGoodsGoods

Raw Materials Raw Materials

Page 57: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Part Part TWOTWO

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#3#3

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19821982

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Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

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

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““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Page 62: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Page 63: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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

relationships)relationships)

Page 64: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

20072007SydneSydne

yy

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… … 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..

Page 66: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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.

Page 67: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

““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!

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Brand Brand = =

Talent.Talent.

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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

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““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

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Part Part THREETHREE

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#4#4

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

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

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1818 secondsseconds

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[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 Collaboration.Collaboration.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 for Listening 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 lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

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Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

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ListenListen = Profession = Study = practice = evaluation = = Profession = Study = practice = evaluation = Enterprise value:

"We listen intently "We listen intently to and fully to and fully

engageengage all with whom all with whom

we work."we work."

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*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 ! !

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#5#5

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““The The fourfour most most importantimportant wordswords in any in any

organization are …organization are …

Page 81: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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#6#6

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

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

—William James—William James

Page 84: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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

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

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#7#7

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““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.

Page 87: Dick Kovacevich: You don’t get better by being bigger. You get worse.”

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.

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#8#8

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We assume everybody knows how We assume everybody knows how to do the “manager”/ “leader” to do the “manager”/ “leader” “stuff”:“stuff”:

“ ‘“ ‘Listening,’ hey, everybody Listening,’ hey, everybody knows how to do that …”knows how to do that …”““I say ‘Thank you’ … when it’s I say ‘Thank you’ … when it’s merited.”merited.”““Of course we’re a ‘team.’’Of course we’re a ‘team.’’““If I screw up, I’ll admit it.”If I screw up, I’ll admit it.”““I know how to offer help, who I know how to offer help, who doesn’t?”doesn’t?”Etc.Etc.

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Part Part FOURFOUR

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#9#9

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try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it. Try it. Try it. try it. Try it. Try it. try it.

Try it.Try it. Screw it up.Screw it up. Try Try it. Try it. Try it. it. Try it. Try it.

1/401/40

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““ExperimenExperiment t

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

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

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““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

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““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

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““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)

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““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

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

Source: Locker room sign posted by football coach Bill ParcellsSource: Locker room sign posted by football coach Bill Parcells

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#10#10

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Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game-changer”“Game-changer”

Scale?

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Part Part FIVEFIVE

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#11#11

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You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

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

‘To-don’t ’‘To-don’t ’

List !”List !”

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““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

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Part Part SIXSIX

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#12#12

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The Memories The Memories That Matter.That Matter.

Tom Peters/02 October 2010Tom Peters/02 October 2010

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The Memories That MatterThe Memories That Matter

The people you developed who went on to stellar accomplishmentsThe people you developed who went on to stellar accomplishments inside or outside the company. (A reputation as “a peerless inside or outside the company. (A reputation as “a peerless peoplepeople developer.”)developer.”)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 “You made a difference in my life,” “Your belief in me changed everything.”difference in my life,” “Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”

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The Memories That MatterThe Memories That Matter

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 invariably said, A frighteningly consistent record of having invariably said, “Go for “Go for it!”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.)

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The Memories That MatterThe Memories That Matter

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 setsUnderstood that your demeanor/expression of character always sets 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.

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The Memories That MatterThe Memories That Matter

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 the occasion if A Mandela-like “naïve” belief that others will rise to the occasion if givengiven the opportunity.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 know more than youHumility in the face of others, at every level, who know more than you about “the way things really are.”about “the way things really are.”Having bitten your tongue on a thousand occasions—and Having bitten 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.)

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The Memories That MatterThe Memories That Matter

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 external to your internal and external 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.)

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The Memories That MatterThe Memories That Matter

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