the works chapter 2 excellence

Tom Peters’Tom Peters’

EXCELLENCEEXCELLENCE!!““THE WORKS”THE WORKS”

A Half-Century’s Reflections/1966-2016A Half-Century’s Reflections/1966-2016

Chapter Chapter TWOTWO: : EXCELLENCEEXCELLENCE

01 January 201601 January 2016

(10+ years of presentation slides at (10+ years of presentation slides at tompeters.comtompeters.com))

Contents/“The Works”/1966-2016/EXCELLENCEContents/“The Works”/1966-2016/EXCELLENCE!!Chapter Chapter ONEONE:: Execution/The “All-Important Last 95%” Execution/The “All-Important Last 95%”Chapter Chapter TWOTWO:: EXCELLENCE (Or Why Bother at All?) EXCELLENCE (Or Why Bother at All?)Chapter Chapter THREETHREE:: The “Strategy First” Myth The “Strategy First” MythChapter Chapter FOURFOUR:: (REALLY) First Things Before First Things (REALLY) First Things Before First ThingsChapter Chapter FIVEFIVE:: 34 BFOs/Blinding Flashes of the Obvious 34 BFOs/Blinding Flashes of the Obvious Chapter Chapter SIXSIX:: Putting People (REALLY!) First Putting People (REALLY!) First Chapter Chapter SEVENSEVEN:: Tech Tsunami/Software Is Eating the World++ Tech Tsunami/Software Is Eating the World++ Chapter Chapter EIGHTEIGHT:: People First/A Moral Imperative Circa 2016 People First/A Moral Imperative Circa 2016 Chapter Chapter NINENINE:: Giants Stink/Age of SMEs/Be The Best, Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter Chapter TENTEN:: Innovate Or Die/W.T.T.M.S.W./ Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter Chapter ELEVENELEVEN:: Nine Value-added Strategies Nine Value-added StrategiesChapter Chapter TWELVETWELVE:: Value Added/1 Value Added/1STST Among Equals/DESIGN MINDEDNESS Among Equals/DESIGN MINDEDNESSChapter Chapter THIRTEENTHIRTEEN:: The “PSF”/Professional Service Firm “Model” The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter Chapter FOURTEENFOURTEEN:: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’” You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”Chapter Chapter FIFTEENFIFTEEN:: Women Are Market #1 For Everything/ Women Are Market #1 For Everything/ Women Are the Most Effective LeadersWomen Are the Most Effective LeadersChapter Chapter SIXTEENSIXTEEN:: Leadership/46 Scattershot Tactics Leadership/46 Scattershot Tactics Chapter Chapter SEVENTEENSEVENTEEN:: Avoid Moderation!/Pursue Avoid Moderation!/Pursue “ “Insanely Great”/Just Say “NO!” to NormalInsanely Great”/Just Say “NO!” to NormalAppendix:Appendix: Library of Best Quotes Library of Best Quotes

STATEMENT OF PURPOSESTATEMENT OF PURPOSEThis—circa January 2016—is my best shot. It took 50 years to write! (From 1966, This—circa January 2016—is my best shot. It took 50 years to write! (From 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—my 1st Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—my 1st “management” job—to today, 2016.) It is … “management” job—to today, 2016.) It is … “THE WORKS.”“THE WORKS.” THE WORKS is THE WORKS is presented in PowerPoint format—but it includes 50,000++ words of annotation, presented in PowerPoint format—but it includes 50,000++ words of annotation, the equivalent of a 250-page book.the equivalent of a 250-page book.The times are nutty—and getting nuttier at an exponential pace. I have taken into The times are nutty—and getting nuttier at an exponential pace. I have taken into account as best I can (there really are no “experts”) the current context. But I account as best I can (there really are no “experts”) the current context. But I have given equal attention to more or less eternal (i.e., human) verities that will have given equal attention to more or less eternal (i.e., human) verities that will continue to drive organizational performance and a quest for EXCELLENCE for the continue to drive organizational performance and a quest for EXCELLENCE for the next several years—and perhaps beyond. (Maybe this bifurcation results from my next several years—and perhaps beyond. (Maybe this bifurcation results from my odd adult life circumstances: 30 years in Silicon Valley, 20 years in Vermont.)odd adult life circumstances: 30 years in Silicon Valley, 20 years in Vermont.)Enjoy.Enjoy.Steal.Steal.P-L-E-A-S-E try something, better yet several somethings.* ** *** **** *****P-L-E-A-S-E try something, better yet several somethings.* ** *** **** *****

*Make no mistake … *Make no mistake … THISTHIS ISIS AA 1717--CHAPTERCHAPTER BOOKBOOK … which happens to be in … which happens to be in PowerPoint format; I invite you to join me in this unfinished—half century to date—journey.PowerPoint format; I invite you to join me in this unfinished—half century to date—journey.**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his most recent book). The point is not “resilience” in the face of change; most recent book). The point is not “resilience” in the face of change; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; perhaps I somewhat anticipated this with my 1987 book, perhaps I somewhat anticipated this with my 1987 book, Thriving on ChaosThriving on Chaos. . ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is “crowdsourced.”“crowdsourced.”**********I am not interested in providing a “good presentation.” I am interested in I am not interested in providing a “good presentation.” I am interested in spurring practical action. Otherwise, why waste your time—or mine?spurring practical action. Otherwise, why waste your time—or mine?Note:Note: There is considerable There is considerable DUPLICATIONDUPLICATION in what follows. I do not imagine you will read this book straight through. in what follows. I do not imagine you will read this book straight through. Hence, to some extent, each chapter is a stand-alone story.Hence, to some extent, each chapter is a stand-alone story.

EpigraphsEpigraphs

““Business has to give people enriching, rewarding lives … Business has to give people enriching, rewarding lives … or it's simply not worth doing.”or it's simply not worth doing.” —Richard Branson—Richard Branson

““Your customers will never be any happier Your customers will never be any happier than your employees.”than your employees.” —John DiJulius—John DiJulius

““We have a strategic plan. It’s called ‘doing things.’ ”We have a strategic plan. It’s called ‘doing things.’ ” —Herb Kelleher—Herb Kelleher

““You miss 100% of the shots you never take.”You miss 100% of the shots you never take.” —Wayne—Wayne GretzkyGretzky

““Ready. Fire. Aim.”Ready. Fire. Aim.” —Ross Perot —Ross Perot

““Execution Execution isis strategy.” strategy.” —Fred Malek—Fred Malek

““Avoid moderation.”Avoid moderation.” —Kevin Roberts—Kevin Roberts

““I’m not comfortable unless I’m uncomfortable.”I’m not comfortable unless I’m uncomfortable.” —Jay Chiat—Jay Chiat

““It takes 20 years to build a reputation and five minutes to ruin it.”It takes 20 years to build a reputation and five minutes to ruin it.” ——John DiJulius on social mediaJohn DiJulius on social media

““Courtesies of a small and trivial character are the ones which Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”strike deepest in the grateful and appreciating heart.” —Henry Clay —Henry Clay

““You know a design is cool when you want to lick it.”You know a design is cool when you want to lick it.” —Steve Jobs —Steve Jobs

““This will be the women’s century.”This will be the women’s century.” —Dilma Rousseff —Dilma Rousseff

““Be the best. It’s the only market that’s not crowded.”Be the best. It’s the only market that’s not crowded.” —George Whalin —George Whalin

First Principles. Guiding Stars. Minimums.First Principles. Guiding Stars. Minimums.**EXECUTION! The “Last 99%.”EXECUTION! The “Last 99%.”

GET IT (Whatever) DONE.GET IT (Whatever) DONE.**EXCELLENCE. Always. PERIOD.EXCELLENCE. Always. PERIOD.

**People REALLY First! Moral Obligation #1.People REALLY First! Moral Obligation #1.**EXPONENTIAL Tech Tsunami.EXPONENTIAL Tech Tsunami.

GET OFF ON CONTINUOUS UPHEAVALS!GET OFF ON CONTINUOUS UPHEAVALS!**Innovate or DIE! Innovate or DIE!

WTTMSW/Whoever Tries The Most Stuff Wins!WTTMSW/Whoever Tries The Most Stuff Wins!**Women Buy (EVERYTHING)! Women Buy (EVERYTHING)!

Women Are the Best Leaders! Women RULE!Women Are the Best Leaders! Women RULE!**Oldies Have (All of) the Market Power!Oldies Have (All of) the Market Power!

**DESIGN Matters! EVERYWHERE!DESIGN Matters! EVERYWHERE!**Maximize TGRs!/Things Gone RIGHT!Maximize TGRs!/Things Gone RIGHT!

**SMEs, Age of/“Be the Best, SMEs, Age of/“Be the Best, It’s the Only Market That’s Not Crowded”It’s the Only Market That’s Not Crowded”

**Moderation KILLS!Moderation KILLS!

NEW WORLD ORDERNEW WORLD ORDER??!!

0810/2011:0810/2011: Apple > ExxonApple > Exxon**

0724/2015:0724/2015: Amazon > WalmartAmazon > Walmart*****Market capitalization; Apple became *Market capitalization; Apple became #1#1 in the world. in the world.

**Market capitalization; Walmart is a “Fortune **Market capitalization; Walmart is a “Fortune 11” company—” company—the biggest in the world by sales.the biggest in the world by sales.

Phew.Phew.

Contents/“The Works”/1966-2016/EXCELLENCEContents/“The Works”/1966-2016/EXCELLENCE!!Chapter Chapter ONEONE: Execution/The “All-Important Last 95%”: Execution/The “All-Important Last 95%”Chapter Chapter TWOTWO: EXCELLENCE (Or Why Bother at All?): EXCELLENCE (Or Why Bother at All?)Chapter Chapter THREETHREE: The “Strategy First” Myth: The “Strategy First” MythChapter Chapter FOURFOUR: (REALLY) First Things Before First Things: (REALLY) First Things Before First ThingsChapter Chapter FIVEFIVE: 34 BFOs/Blinding Flashes of the Obvious : 34 BFOs/Blinding Flashes of the Obvious Chapter Chapter SIXSIX: Putting People (REALLY!) First : Putting People (REALLY!) First Chapter Chapter SEVENSEVEN: Tech Tsunami/Software Is Eating the World++ : Tech Tsunami/Software Is Eating the World++ Chapter Chapter EIGHTEIGHT: People First/A Moral Imperative Circa 2016: People First/A Moral Imperative Circa 2016Chapter Chapter NINENINE: Giants Stink/Age of SMEs/Be The Best,: Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter Chapter TENTEN: Innovate Or Die/W.T.T.M.S.W./: Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter Chapter ELEVENELEVEN: Nine Value-added Strategies: Nine Value-added StrategiesChapter Chapter TWELVETWELVE: Value Added/1: Value Added/1STST Among Equals/DESIGN MINDEDNESS Among Equals/DESIGN MINDEDNESSChapter Chapter THIRTEENTHIRTEEN: The “PSF”/Professional Service Firm “Model” : The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter Chapter FOURTEENFOURTEEN: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”Chapter Chapter FIFTEENFIFTEEN: Women Are Market #1 For Everything/: Women Are Market #1 For Everything/ Women Are the Most Effective LeadersWomen Are the Most Effective LeadersChapter Chapter SIXTEENSIXTEEN: Leadership/46 Scattershot Tactics : Leadership/46 Scattershot Tactics Chapter Chapter SEVENTEENSEVENTEEN: Avoid Moderation!/Pursue : Avoid Moderation!/Pursue “ “Insanely Great”/Just Say “NO!” to NormalInsanely Great”/Just Say “NO!” to NormalAppendix: Library of Best Quotes Appendix: Library of Best Quotes

Chapter Chapter TWOTWO

EEXXCELLENCECELLENCE

2.1 2.1 X3/4X3/4

I wrote a book in 1982.I wrote a book in 1982.A few people bought it.A few people bought it.Then, hooray, a few more. …Then, hooray, a few more. …(One of the reasons, I remain convinced, is (One of the reasons, I remain convinced, is that more or less no one used the word that more or less no one used the word “business” and “excellence” in the same “business” and “excellence” in the same sentence. Excellence? Sports. The arts. sentence. Excellence? Sports. The arts. Science. But business?? We hardly said that Science. But business?? We hardly said that excellence-in-business was the normal state excellence-in-business was the normal state of affairs. To the contrary, we said it was of affairs. To the contrary, we said it was ever so rare—but that we thought we had ever so rare—but that we thought we had found a few exemplar firms for whom found a few exemplar firms for whom excellence was the watchword.)excellence was the watchword.)

In Search of ExcellenceIn Search of Excellence/1982: /1982: The Bedrock “Eight Basics”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 PropertiesProperties

Out of our data we teased eight “basics” Out of our data we teased eight “basics” that we saw as the Pillars of (Business) that we saw as the Pillars of (Business) Excellence. Discussing those basics was the Excellence. Discussing those basics was the heart of the book.heart of the book.

ActionActionPeoplePeople

CustomersCustomersValuesValues

To be sure, the “Eight Basics.”To be sure, the “Eight Basics.”(They’ve held up pretty darn well.)(They’ve held up pretty darn well.)Nonetheless …Nonetheless …In Search of ExcellenceIn Search of Excellence in … in …

44 words on the prior slide. words on the prior slide.(Circa 1982. Circa 2016.)(Circa 1982. Circa 2016.)

PeoplePeopleExecutionExecutionExcellenceExcellence

PXX PXX = = People.People. eXecution.eXecution. eXcellence.eXcellence.

In Search of In Search of ExcellenceExcellence

… … in in 33 words.* words.*

(*Circa 1982. Circa 2015.)(*Circa 1982. Circa 2015.)

Excellence.2016: The Bedrock “Ten Basics”Excellence.2016: The Bedrock “Ten Basics”

1. A Bias for 1. A Bias for Action/Action/Serious PlaSerious Playy//ExecutionExecution**2. 2. PeoPeopplele FirstFirst//TraininTraining-g-Development Development ManiaMania 3. 3. SymbiosisSymbiosis With the With the CustomerCustomer4. 4. AutonomAutonomy and y and EntreEntreppreneurshireneurshipp5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. SimSimpplele Form, Form, LeanLean Staff, Staff, CollaborationCollaboration Imperative Imperative7. Simultaneous 7. Simultaneous Loose-Tight Loose-Tight PropertiesProperties8. 8. Ubiquitous Ubiquitous DesiDesiggn-mindednessn-mindedness 9. 9. TechnoloTechnology Fanaticismgy Fanaticism10. 10. AntifraAntifraggile/Sile/Sppeedeed Demons Demons**RED RED is changes from 1982 list.is changes from 1982 list.

Update 2016.Update 2016.Much the same.Much the same.But important changes.But important changes.(The changes—as well as the similarities—(The changes—as well as the similarities—are imbedded in the material in this are imbedded in the material in this presentation.)presentation.)

2.22.2 X140X140 Excellence “Twitter-ized”Excellence “Twitter-ized”

In Search of Excellence “twitter-In Search of Excellence “twitter-ized”/ized”/ <140 Characters: <140 Characters: Cherish Cherish

your people. Cuddle your people. Cuddle your customers. Wander your customers. Wander around. “Try it” beatsaround. “Try it” beats

“ “talk about it.” Pursue talk about it.” Pursue Excellence. TellExcellence. Tell

the truth.the truth.125 characters (with spaces)/Q.E.D.125 characters (with spaces)/Q.E.D.

In Search of Excellence.2016In Search of Excellence.2016 … …

TwitterTwitter-ization.-ization.

My Story/My Story/40+40+ Years/<140 Characters Years/<140 Characters

****Take charge of your life!Take charge of your life!****Aim high!Aim high!****Be “Of service”!Be “Of service”!****Engage others!Engage others!****Follow the Golden Rule!Follow the Golden Rule!****Act now!Act now!****Relentless!Relentless!****No less than EXCELLENCE!No less than EXCELLENCE!

My lifeMy life … … TwitterTwitter-ized.-ized.

((2.3 2.3 By The Way By The Way ……))

In Search of ExcellenceIn Search of Excellence Beats the Market Beats the Market

ExIn*: 1982-2002/Forbes.comExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields DJIA: $10,000 yields

$85,000 EI: $10,000 yields EI: $10,000 yields $140,050

* “Excellence Index”/Basket of 32 publicly traded stocks * “Excellence Index”/Basket of 32 publicly traded stocks from In from In Search of ExcellenceSearch of Excellence companies companies

ISOE Beats the Market:ISOE Beats the Market: I am often asked how I am often asked how the “Excellent companies” have fared. Some, to be sure, the “Excellent companies” have fared. Some, to be sure, were bombs. But, on the 20were bombs. But, on the 20thth anniversary of the book’s anniversary of the book’s publication, in 2002, publication, in 2002, Forbes.com Forbes.com analyzed the analyzed the stock market performance of the firms. stock market performance of the firms.

The results, FYI, are on the prior slide.The results, FYI, are on the prior slide.

(In addition to the satisfactory performance, (In addition to the satisfactory performance, ForbesForbes noted that, unlike the real world of stock-picker indices, noted that, unlike the real world of stock-picker indices, this analysis precluded selling off stocks that were this analysis precluded selling off stocks that were tanking—hence the Excellence Index is at a big tanking—hence the Excellence Index is at a big disadvantage to standard indices; yet it had still done disadvantage to standard indices; yet it had still done very well.) (For no particular reason, neither I nor very well.) (For no particular reason, neither I nor anyone else seems to have done a subsequent analysis. anyone else seems to have done a subsequent analysis. Frankly, 20 years is a pretty good test.)Frankly, 20 years is a pretty good test.)

2.42.4 X6X6Just 6 Words*:Just 6 Words*:

But a Core But a Core PhilosophyPhilosophy

(*+7 Ss)(*+7 Ss)

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

Hard Hard (numbers, plans)(numbers, plans) is Soft.is Soft.SoftSoft (people/relationships/culture)(people/relationships/culture) is Hard.is Hard.

Action.Action.People.People.Customers.Customers.Values.Values.Some—most?—call these areas “soft”: Where are the numbers Some—most?—call these areas “soft”: Where are the numbers Where are the plans?Where are the plans?Surely there Surely there isis room for the numbers— room for the numbers—andand the plans. the plans.But they are the real “soft stuff”—malleable and manipulable. But they are the real “soft stuff”—malleable and manipulable. (As we saw again and again during the 2007+ economic crisis.)(As we saw again and again during the 2007+ economic crisis.)The truly “hard stuff”—which can’t be faked or exaggerated—The truly “hard stuff”—which can’t be faked or exaggerated—are the relationships with, for instance, our customers and our are the relationships with, for instance, our customers and our own people.own people.“‘“‘Hard’ is ‘soft.’Hard’ is ‘soft.’‘‘Soft’ is ‘hard.’”Soft’ is ‘hard.’”Mantra #1 from Mantra #1 from In Search of EXCELLENCE.In Search of EXCELLENCE.Mantra 1982.Mantra 1982.Mantra 2016.Mantra 2016.

““THE 7-S MODEL”THE 7-S MODEL”STRATEGYSTRATEGY

STRUCTURESTRUCTURESYSTEMSSYSTEMS

STYLESTYLESKILLSSKILLSSTAFFSTAFF

SUPER-ORDINATE GOALSUPER-ORDINATE GOAL

““The 7-S Model”The 7-S Model”

“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)

““The The 7-S7-S Model” Model”STRATEGYSTRATEGY

STRUCTURESTRUCTURESYSTEMSSYSTEMS

STYLESTYLE (CORPORATE “CULTURE,” “THE WAY (CORPORATE “CULTURE,” “THE WAY 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, CORE VALUES) (VISION, CORE VALUES)

The The “McKinsey 7-S Model”“McKinsey 7-S Model” (or simply “7- (or simply “7-S model”) that Bob Waterman and I developed in 1979 S model”) that Bob Waterman and I developed in 1979 (with Tony Athos, Richard Pascale and Julien Phillips) (with Tony Athos, Richard Pascale and Julien Phillips) has stood the test of time—37 years to date. Our has stood the test of time—37 years to date. Our current-day McKinsey colleagues claim it’s still the current-day McKinsey colleagues claim it’s still the “most useful framework for assessing Organizational “most useful framework for assessing Organizational EffectivenessEffectiveness”—it underpins a great deal of McKinsey’s ”—it underpins a great deal of McKinsey’s current work. current work. The idea, encompassed by the “Hard is soft, Soft is The idea, encompassed by the “Hard is soft, Soft is Hard” notion, is that there are “soft Ss” as well as Hard” notion, is that there are “soft Ss” as well as “hard Ss” that must be considered and managed-as-“hard Ss” that must be considered and managed-as-one to maximize organization well-being and one to maximize organization well-being and competitive strength. Moreover—and here’s the rub—competitive strength. Moreover—and here’s the rub—all 7 must in effect be perfectly aligned to achieve all 7 must in effect be perfectly aligned to achieve sustaining Excellence. (No mean feat!)sustaining Excellence. (No mean feat!)

The 7-S model was/is to be laid out this The 7-S model was/is to be laid out this way. The diagram implicitly introduces way. The diagram implicitly introduces

the crucial idea of … the crucial idea of … “fit.”“fit.”

Each of the “Ss” must be considered in Each of the “Ss” must be considered in relationship to the other six. This relationship to the other six. This balancing/high-tension act is at the balancing/high-tension act is at the center of the leader’s principal role as center of the leader’s principal role as … … Enterprise ArchitectEnterprise Architect. .

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward on, I probably wouldn’t have. My bias coming in was toward

strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. [YET] I [YET] I CAME TO SEE IN MY TIME CAME TO SEE IN MY TIME

AT IBM THAT CULTURE AT IBM THAT CULTURE ISN’T JUST ONE ASPECT OF ISN’T JUST ONE ASPECT OF THE GAMETHE GAME ——IT IS THE IT IS THE

GAMEGAME.”.” —Lou Gerstner,—Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

Hard to describe the meaning of this to Hard to describe the meaning of this to me personally. Gerstner said again and me personally. Gerstner said again and again when he an I were at McKinsey again when he an I were at McKinsey that I was full of baloney for focusing that I was full of baloney for focusing on the “soft” “culture stuff.” on the “soft” “culture stuff.”

Per this slide, from his autobiography Per this slide, from his autobiography featuring the IBM years, he apparently featuring the IBM years, he apparently

became a convertbecame a convert!!

THE SOFT THE SOFT EDGEEDGE

Pillars of Soft-Edge Pillars of Soft-Edge ExcellenceExcellence

TrustTrustTeamsTeamsTasteTaste

Smarts Smarts StoryStory

Source: Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Rich Karlgaard is the publisher of Rich Karlgaard is the publisher of ForbesForbes magazine—and a Silicon Valley stalwart of magazine—and a Silicon Valley stalwart of the 1the 1stst order. So it is especially interesting order. So it is especially interesting that he would write a book on “the soft that he would write a book on “the soft stuff.” But stuff.” But The Soft EdgeThe Soft Edge is just is just that—and his arguments are compelling. The that—and his arguments are compelling. The bottom line, in Silicon Valley for example, is bottom line, in Silicon Valley for example, is that you will not achieve more than a that you will not achieve more than a smidgeon of your tech potential unless the smidgeon of your tech potential unless the organization which carries out your mission organization which carries out your mission emphasizes Rich’s “soft edge” traits. (Which emphasizes Rich’s “soft edge” traits. (Which are quite congruent with the “7-S Model” are quite congruent with the “7-S Model” just described.)just described.)(The idea holds elsewhere as well. But the point is (The idea holds elsewhere as well. But the point is that even in Silicon Valley the “soft stuff” is that even in Silicon Valley the “soft stuff” is paramount as one seeks lasting impact and paramount as one seeks lasting impact and excellence.)excellence.)

““Far too many companies invest too little time and Far too many companies invest too little time and money in their soft-edge excellence. … The three main money in their soft-edge excellence. … The three main reasons for this mistake are:reasons for this mistake are:

1. 1. The hard edge is easier to The hard edge is easier to quantify. …quantify. …2. 2. Successful hard-edge Successful hard-edge investment provides a faster investment provides a faster return on investment. …return on investment. …3. 3. CEOs, CFO, chief operating CEOs, CFO, chief operating officers, boards of directors, and officers, boards of directors, and shareholders speak the language shareholders speak the language of finance. of finance. …”Source: Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Soft-Edge AdvantagesSoft-Edge Advantages

1. Soft-edge strength leads to greater 1. Soft-edge strength leads to greater brand recognition, higher profit brand recognition, higher profit margins, … margins, … [It] is the ticket out of [It] is the ticket out of Commodityville.Commodityville.““2. 2. Companies strong in the soft edge Companies strong in the soft edge are better prepared to survive a big are better prepared to survive a big strategic mistake or cataclysmic strategic mistake or cataclysmic disruption …disruption …““3. Hard-edge strength is absolutely 3. Hard-edge strength is absolutely necessary to compete, but it provides necessary to compete, but it provides only a fleeting advantage.”only a fleeting advantage.”

Source: Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Amen.Amen.(Read the book. (Read the book. PLEASEPLEASE.).)

McKinseMcKinsey: Culture > Strategyy: Culture > StrategyWall Street Journal, Wall Street Journal, 0910.13, interview:0910.13, interview: “What “What matters most to a company matters most to a company

over time? Strategy or over time? Strategy or culture?”culture?”

Dominic Barton, Managing Director, Dominic Barton, Managing Director,

McKinsey & Co.:McKinsey & Co.: “Culture.”“Culture.”

McKinseMcKinsey: People > Strategyy: People > Strategy

““People Before Strategy”People Before Strategy” —title, —title, lead article,lead article, Harvard Business Review Harvard Business Review July-August 2015, July-August 2015,

by McKinsey MD Dominic Barton et al.by McKinsey MD Dominic Barton et al.

McKinsey fought me tooth and nail in the McKinsey fought me tooth and nail in the late 1970s. Strategy #1 was the unbending late 1970s. Strategy #1 was the unbending credo. credo.

Times change. The current McKinsey MD is Times change. The current McKinsey MD is singing a different tune—in fact from a singing a different tune—in fact from a different hymnal.different hymnal.

Interesting.Interesting.Eh?Eh?

2.5 2.5 X1X1

““Mr. Watson, how Mr. Watson, how long does it take to long does it take to

achieve excellence?” achieve excellence?”

Thomas Watson, legendary CEO of IBM.Thomas Watson, legendary CEO of IBM.

““One One minute. …”minute. …”

““One minute. One minute. You You make up make up yyour mind our mind

to never ato never aggain ain consciouslconsciouslyy do do

somethinsomethingg that is that is less than less than excellentexcellent.”.”

EXCELLENCE starts EXCELLENCE starts insideinside you and is you and is reflected—or not—in your most minute and reflected—or not—in your most minute and temporal behaviors.temporal behaviors.

"We all start out in life loving our fathers and mothers "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with husbands and children and friends and to cooperate with

and show respectand show respect to all worthy individuals with whom we come in contact or to all worthy individuals with whom we come in contact or have an opportunity to reach in other ways. We must apply have an opportunity to reach in other ways. We must apply

that to nations and to other businesses. that to nations and to other businesses. "We in IBM must not confine our thoughts just to IBM. "We in IBM must not confine our thoughts just to IBM.

We must extend our cooperation to all other businesses We must extend our cooperation to all other businesses whether we do business with them or not. We are one whether we do business with them or not. We are one

cog in the industrial wheel. cog in the industrial wheel. "Then as citizens we must extend our respect to all worthy "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome people in all nations. We are moving along in troublesome times, but the love of these various things of which I have times, but the love of these various things of which I have

spoken and of the people in whom we are interested is spoken and of the people in whom we are interested is Going to be the great force which will make us all appreciate Going to be the great force which will make us all appreciate

the spiritual values which constitute the only solid the spiritual values which constitute the only solid foundation on which we can build." foundation on which we can build."

——Thomas J. Watson, Sr. address to IBM Sales and Service Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, Class 525 and Customer Engineers Class 528,

IBM Country Club, Endicott, NY, October 30, 1941IBM Country Club, Endicott, NY, October 30, 1941

EXCELLENCE.EXCELLENCE.

2.6 2.6 X/BLDX/BLD

““Everything can be taken Everything can be taken from a man but one thing:from a man but one thing:

the last of the human the last of the human freedoms—to choose one’s freedoms—to choose one’s attitude in any given set of attitude in any given set of circumstances, to choose circumstances, to choose one’s own way.”one’s own way.” —Victor Frankl—Victor Frankl

Frankl, one of the world’s greatest Frankl, one of the world’s greatest psychologists, was a survivor of a Nazi psychologists, was a survivor of a Nazi concentration camp.concentration camp.

BLD:BLD: Fact is, you Fact is, you CANCAN take take ANYANY damned damned

attitude attitude YOUYOU choose choose to work to work TODAYTODAY!!

In fact, it's your … In fact, it's your … BLD/BLD/BBiggest iggest LLifeife

DDecision!ecision!

BIGGEST.BIGGEST.Up to you.Up to you.Soooo…..Soooo…..

EXCELLENCE is EXCELLENCE is a a PERSONALPERSONAL choice … choice … NOTNOT an institutional an institutional

choice!choice!

In fact there are few items in this In fact there are few items in this presentation that are more important than presentation that are more important than this one.this one.

Bottom line:Bottom line:

YOUR CHOICE.YOUR CHOICE.PERIOD.PERIOD.

Joe J. Jones Joe J. Jones 1942 – 2016 1942 – 2016

HE WOULDA DONE SOME HE WOULDA DONE SOME REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT … HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!

There are a hundred hundred reasons why There are a hundred hundred reasons why this or that desirable/exciting thing this or that desirable/exciting thing (SERVICE, EXCELLENCE) (SERVICE, EXCELLENCE) “can’t be done “can’t be done around herearound here”*—or, at least, not today. ”*—or, at least, not today.

But, in the end, it’s But, in the end, it’s yyourour tombstone, tombstone, not “theirs.”not “theirs.”

(*I hear that damn refrain at every seminar(*I hear that damn refrain at every seminar!!))

2.7 2.7

X3/5/7X3/5/7

CAUSE.CAUSE. (worthy of commitment)(worthy of commitment)

SPACE.SPACE. (room for/encouragement(room for/encouragement for initiative by ALL) for initiative by ALL)

DECENCY.DECENCY. (respect, grace,(respect, grace, integrity, civility) integrity, civility)

It came out of nowhere … sprang from my It came out of nowhere … sprang from my keyboard unbidden. A(nother) “Theory of keyboard unbidden. A(nother) “Theory of

Everything” in … Everything” in … 33 words.* words.*

(*What can I say? I keep looking for clarity & brevity in (*What can I say? I keep looking for clarity & brevity in presenting the main themes of my work since 1976.)presenting the main themes of my work since 1976.)



DECENCY.DECENCY. (respect, grace, integrity, civility)(respect, grace, integrity, civility)

SERVICE. SERVICE. (worthy of our clients’ & extended(worthy of our clients’ & extended family’s continuing custom) family’s continuing custom)

EXCELLENCE.EXCELLENCE. (PERIOD) (PERIOD)



DECENCY.DECENCY. (respect, grace, integrity, civility)(respect, grace, integrity, civility)

SERVICE. SERVICE. (worthy of our clients’ & extended(worthy of our clients’ & extended family’s continuing custom) family’s continuing custom)

EXCELLENCE.EXCELLENCE. (PERIOD) (PERIOD)

SERVANT LEADERSHIP.SERVANT LEADERSHIP.

CAUSE.CAUSE.

SPACE.SPACE.

DECENCY.DECENCY.

SERVICE. SERVICE. EXCELLENCE.EXCELLENCE.

SERVANT LEADERSHIP.SERVANT LEADERSHIP.

I added 2 more ideas/2 more words. Then 1 I added 2 more ideas/2 more words. Then 1 more idea/another 2 words. Hence in the more idea/another 2 words. Hence in the

end, end,

A … “Theory of Everything” in A … “Theory of Everything” in 77 words. words.

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

Another Another 77

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

And it all starts with …And it all starts with …THE PEOPLETHE PEOPLE..(a principal theme of this entire book.)(a principal theme of this entire book.)

2.8 2.8 A Sacred A Sacred TrustTrust

““LEADERS LEADERS

‘‘DODO’’ PEOPLE. PEOPLE.

PERIOD.”PERIOD.” —Anon.—Anon.

LEADERSHIPLEADERSHIP IS A SACRED IS A SACRED

TRUST.TRUST.***President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

""Leadership is a Leadership is a gift. It's given by gift. It's given by those who follow. those who follow.

You have to be You have to be worthy of it.”worthy of it.”

——General Mark Welsh, Commander, U.S. Air Forces Europe General Mark Welsh, Commander, U.S. Air Forces Europe

2.9 2.9 Engineering.Engineering.NOT.NOT.

A LIBERAL A LIBERAL ARTART

Response to question on his Response to question on his (Peter Drucker’s) “most important (Peter Drucker’s) “most important

contribution”:contribution”: “I focused this “I focused this discipline on people and power; on discipline on people and power; on values, structure, and constitution; values, structure, and constitution; and above all, on responsibilities—and above all, on responsibilities—

THAT IS,THAT IS, I FOCUSED THE DISCIPLINE I FOCUSED THE DISCIPLINE

OF MANAGEMENT ON OF MANAGEMENT ON MANAGEMENT AS A TRULY MANAGEMENT AS A TRULY

LIBERAL ARTLIBERAL ART.”.” (18 January 1999)(18 January 1999)

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

Management as a … Management as a … LIBERAL LIBERAL ARTART..* *** **(*P-l-e-a-s-e convey that to the business schools(*P-l-e-a-s-e convey that to the business schools—fat chance getting an iota of reaction.)—fat chance getting an iota of reaction.)(**The consequences of this are enormous. The (**The consequences of this are enormous. The impact on people practices, for one giant thing, impact on people practices, for one giant thing, are mind boggling—starting, obviously with are mind boggling—starting, obviously with hiring.)hiring.)

““Winning business was more Winning business was more important than making great important than making great

products.products. Microsoft Microsoft never had the never had the humanities or humanities or

liberal arts in its liberal arts in its DNADNA..”” —Steve Jobs on Bill Gates and Microsoft —Steve Jobs on Bill Gates and Microsoft

((Vanity FairVanity Fair/0812)/0812)

Characteristic Jobs smartassery—but not Characteristic Jobs smartassery—but not without a dram of truth. without a dram of truth.

““That 'Useless' That 'Useless' Liberal Arts Liberal Arts Degree Has Degree Has

Become Tech's Become Tech's Hottest Ticket.”Hottest Ticket.”

Source: title, Source: title, ForbesForbes cover story (17 August 2015 cover story (17 August 2015)

Hmmm …Hmmm …

2.10 2.10 X5X5

EXCELLENCE is EXCELLENCE is

NOTNOT NOTNOT NOTNOT a “long-a “long-term” "aspiration.”term” "aspiration.”

EXCELLENCE is EXCELLENCE is notnot a “long-term” a “long-term” "aspiration.”"aspiration.”

EXCELLENCE EXCELLENCE isis the ultimate short- the ultimate short-term strategy. EXCELLENCE term strategy. EXCELLENCE isis … …

THETHE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) think.think.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.

Translation: Reflect on your last five minutesTranslation: Reflect on your last five minutes—and next five minutes. —and next five minutes.

Did they/will they measure up to the Did they/will they measure up to the “Excellence Standard”?“Excellence Standard”?

(That’s all there is, there ain’t no more.)(That’s all there is, there ain’t no more.)

Next five minutes.Next five minutes.

OR NOT.OR NOT.

““I shall tell you a I shall tell you a great secret, my great secret, my

friend. Do not wait friend. Do not wait for the last for the last

judgment; judgment; it takes it takes pplace everlace everyy da day.”y.”

——Albert CamusAlbert Camus

Truer words …Truer words …

2.112.11 Excellence: Excellence:The Thing The Thing

About Joe …About Joe …

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

celebrity, but it doesn’t, not really. The celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, world admires, and wants to hold on to,

and not lose, goodness. It admires virtue. and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to At the end it gives its greatest tributes to

generosity, honesty, courage, mercy, generosity, honesty, courage, mercy, talents well used, talents that, brought talents well used, talents that, brought

into the world, make it better. That’s what into the world, make it better. That’s what it really admires. That’s what we talk about it really admires. That’s what we talk about

in eulogies, because that’s what’s in eulogies, because that’s what’s important. We don’t say, ‘The thing about important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can …Joe was he was rich!’ We say, if we can …

“ … “ … We say, if we can …We say, if we can …

‘‘The thing about The thing about Joe was Joe was he took he took

ggood care of ood care of ppeoeopplele.’”.’”

——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of journalist Tim Russertjournalist Tim Russert, The Wall Street Journal, , The Wall Street Journal, June 21-22, 2008June 21-22, 2008

Phew!Phew!Wow!Wow!

Joe J. Jones Joe J. Jones 1942 – 2015 1942 – 2015 Net WorthNet Worth

$21,543,672.48$21,543,672.48

$$$$$$: $$$$$$: NotNot the stuff of tombstones. the stuff of tombstones. Eh? Eh?

2.122.12 EXCELLENCE:EXCELLENCE:Beyond Beyond

Success Success ……

““[This year’s] graduates are told [by [This year’s] graduates are told [by commencement speakers] to pursue commencement speakers] to pursue

happiness and joy. But, of course, when you happiness and joy. But, of course, when you read a biography of someone you admire, it’s read a biography of someone you admire, it’s rarely the things that made them happy that rarely the things that made them happy that compel our admiration. It’s the things they compel our admiration. It’s the things they

did to court unhappiness—the things they did did to court unhappiness—the things they did that were arduous and miserable, which that were arduous and miserable, which

sometimes cost them friends and aroused sometimes cost them friends and aroused

hatredhatred. . IT’S EXCELLENCE, IT’S EXCELLENCE, NOT HANOT HAPPPPINESS, THAT INESS, THAT WE ADMIRE MOSTWE ADMIRE MOST.”.” —David —David

Brooks, “It’s Not About You,” op-ed,Brooks, “It’s Not About You,” op-ed, New York Times New York Times, 30 May 2011, 30 May 2011

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.”

—Bill Young, race car driver

Not only do I agree with this sentiment—Not only do I agree with this sentiment—but I think it is profound. In higher but I think it is profound. In higher mathematics the accuracy of a new proof is mathematics the accuracy of a new proof is not enough. The proof must be not enough. The proof must be parsimonious, beautiful in its own fashion.parsimonious, beautiful in its own fashion.

In the same way, “ugly success” may have In the same way, “ugly success” may have its virtues, but also its vices. E.g., the its virtues, but also its vices. E.g., the winning sports team that exhibits winning sports team that exhibits arrogance rather than grace toward one’s arrogance rather than grace toward one’s defeated opponents.defeated opponents.

EXCELLENCE—to me—has its own rewards EXCELLENCE—to me—has its own rewards per se and is the mightiest of aspirations—per se and is the mightiest of aspirations—particularly as one looks back in the particularly as one looks back in the hindsight of a decade or two.hindsight of a decade or two.

2.132.13 Excellence: Excellence:Five Or Less Five Or Less

Words To The Words To The WiseWise

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 49 (My only “for sure” in 49 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” 44 (My only “for sure” 44 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.)

2.14 2.14 Excellence:Excellence:The The 19Es19Es

If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!) EnerEnergy.gy. (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 for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)EliminateEliminate.. (Keep it simple!)(Keep it simple!)ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The 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 we reach it.” Amen!)but that it is too low and we reach it.” Amen!)EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCEEnthusiasmEnthusiasm!! (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 (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. of 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 EXCELLENCEEmEmppathathy!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! Be of service! Always!)Always!)EXCELLENCEEXCELLENCE!! (The only standard! Never an exception! (The only standard! Never an exception! Start NOW! Start NOW! No excuses!)No excuses!)

2.15.12.15.1 Why Why Not I?Not I?

ExcellenceExcellence.. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

This is my mantra.This is my mantra.This is my life.This is my life.(Fact is, though we rarely “make it,” I find an (Fact is, though we rarely “make it,” I find an aspiration of less than excellence beyond my aspiration of less than excellence beyond my comprehension.)comprehension.)

The failure to The failure to pursue pursue

EXCELLENCEEXCELLENCE is is incomprehensible incomprehensible

to me.to me.

We may not “get there”—to EXCELLENCE—We may not “get there”—to EXCELLENCE—but what is the point of most anything if but what is the point of most anything if one does not aspire to doing “it,” humble one does not aspire to doing “it,” humble or grand, with passion and in pursuit of an or grand, with passion and in pursuit of an

admirable outcomeadmirable outcome? ?

““If a man is called to be a street If a man is called to be a street sweeper, he should sweep streets sweeper, he should sweep streets even as Michelangelo painted, or even as Michelangelo painted, or Beethoven composed music, or Beethoven composed music, or Shakespeare wrote poetry. He Shakespeare wrote poetry. He should sweep streets so well should sweep streets so well

that all the hosts of heaven and that all the hosts of heaven and earth will pause to say, here livedearth will pause to say, here lived

a great street sweeper who did his a great street sweeper who did his job well.” job well.” —Dr. Martin Luther King, Jr.—Dr. Martin Luther King, Jr.

To my point …To my point …Some might say this means one should not aspire to Some might say this means one should not aspire to be “more” than a streetsweeper. Dr. King would be “more” than a streetsweeper. Dr. King would doubtless agree at one level. But there is a larger doubtless agree at one level. But there is a larger and more universal point—the aspiration to achieve and more universal point—the aspiration to achieve EXCELLENCE, the way in which the given task is EXCELLENCE, the way in which the given task is performed, not the prestige of the task. Beyond performed, not the prestige of the task. Beyond this, though, is the fact that in 9 of 10 instances an this, though, is the fact that in 9 of 10 instances an exhibition of EXCELLENCE per se at anything is one’s exhibition of EXCELLENCE per se at anything is one’s foremost calling card when it comes to moving in foremost calling card when it comes to moving in whatever direction one wishes.whatever direction one wishes.(I once heard General Colin Powell say the greatest of (I once heard General Colin Powell say the greatest of success principles—okay, he said “success”—is to do success principles—okay, he said “success”—is to do today’s job with all one’s might and not waste energy or today’s job with all one’s might and not waste energy or time angling for the next job. Excellence/success today is time angling for the next job. Excellence/success today is the ultimate “USP”/Unique Selling Proposition.)the ultimate “USP”/Unique Selling Proposition.)

2.15.22.15.2 EXCELLENCE. EXCELLENCE. Now.Now.

EXCELLENCE. EXCELLENCE. Always.Always.

Shorthand.Shorthand.

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.

1.1. People first, second, third, fourth … /The People first, second, third, fourth … /The “business” of leaders is people: to “business” of leaders is people: to inspire/engage/provide a trajectory of opportunity—inspire/engage/provide a trajectory of opportunity—enterprise of every size and type as “cathedral” for enterprise of every size and type as “cathedral” for human development. human development. "When I hire someone, that's "When I hire someone, that's when I go to work for them.”when I go to work for them.” —John DiJulius —John DiJulius

1A. Customer comes 2nd/ If you want to best “Wow!” 1A. Customer comes 2nd/ If you want to best “Wow!” customers then you must first Wow! those who customers then you must first Wow! those who serve the customersserve the customers./"If you want staff to give ./"If you want staff to give great service, give great service to staff.”great service, give great service to staff.”—Ari —Ari Weinzweig, Zingerman's/ Weinzweig, Zingerman's/ “You have to treat your “You have to treat your employees like customers.”employees like customers.” —Herb Kelleher, on his —Herb Kelleher, on his #1 “secret to success.”#1 “secret to success.”

1B. Manager’s sole raison d’etre: 1B. Manager’s sole raison d’etre: Make each of my Make each of my teamteam

members successful!members successful!1C. Effective organizations: 1C. Effective organizations: No bit players!No bit players!


1D. Appreciation. Acknowledgement. 1D. Appreciation. Acknowledgement. “The deepest“The deepest human need is the need to be appreciated.”human need is the need to be appreciated.” — — Believe it! A few kind words are often rememberedBelieve it! A few kind words are often remembered for years!for years!1E. 1E. 1st line supervisors. Every organization’s … most 1st line supervisors. Every organization’s … most important … leadership cadre.important … leadership cadre. Productivity is largely Productivity is largely determined by the caliber of the 1st line boss.determined by the caliber of the 1st line boss. Selection and development of your “sergeants” mustSelection and development of your “sergeants” must become an “obsession”—almost all do a half-assedbecome an “obsession”—almost all do a half-assed job. job. 1F. Weird/ 1F. Weird/ There are no “normals” in the historyThere are no “normals” in the history books!/books!/Insure a healthy supply of oddballs/Diversity Insure a healthy supply of oddballs/Diversity ofof every flavor = Fresh perspectives! Better decisions!every flavor = Fresh perspectives! Better decisions!1G. Memories That Matter. And don’t./ “People stuff”1G. Memories That Matter. And don’t./ “People stuff” sticks with you: You’ll look back on the handful ofsticks with you: You’ll look back on the handful of people you developed who proceeded to change thepeople you developed who proceeded to change the world—and the multitude (if you’ve earned it) whoworld—and the multitude (if you’ve earned it) who say, “I grew most when I worked with you.” say, “I grew most when I worked with you.” Ever Ever seenseen a tombstone engraved with the deceased’s net a tombstone engraved with the deceased’s net worth?worth?


2. You/me: Businesses no longer coddle. You’re in2. You/me: Businesses no longer coddle. You’re in charge!/ “Brand you” —stand out for somethingcharge!/ “Brand you” —stand out for something valuable, or else; learn something new every day, orvaluable, or else; learn something new every day, or else!/“Distinct or Extinct!”else!/“Distinct or Extinct!”3. 3. Organizations Exist to ServeOrganizations Exist to Serve.. PERIOD. PERIOD.4. EXECUTION/ 4. EXECUTION/ “Don’t forget to tuck the shower curtain“Don’t forget to tuck the shower curtain into the bath tub.”into the bath tub.” —Conrad Hilton on —Conrad Hilton on his “sweat the details” obsession and #1 “successhis “sweat the details” obsession and #1 “success secret”/ secret”/ “Execution “Execution isis strategy.” strategy.” — —Fred Malek/ “Execution is the leader’s job #1.”—Fred Malek/ “Execution is the leader’s job #1.”—LarryLarry BossidyBossidy4A. “They do … ONE BIG THING at a time.” —Drucker on4A. “They do … ONE BIG THING at a time.” —Drucker on successful managers’ #1 trait.successful managers’ #1 trait.4B. Resilience circa 2011: Understand it. Hire for it.4B. Resilience circa 2011: Understand it. Hire for it. Promote for it. Obsess on it.Promote for it. Obsess on it.


5. MBWA/Managing By Wandering Around/ Starbucks’5. MBWA/Managing By Wandering Around/ Starbucks’ Schultz visits 25 stores a week/ “In touch” is “notSchultz visits 25 stores a week/ “In touch” is “not optional”/optional”/You = Your calendar/Calendars never lie!You = Your calendar/Calendars never lie!5A. Listening per se = Candidate for Core Value #1/5A. Listening per se = Candidate for Core Value #1/ Listening per se is a professionListening per se is a profession./“If you don’t ./“If you don’t listen,listen, you don’t sell anything.”/Docs interrupt patients you don’t sell anything.”/Docs interrupt patients afterafter … … 18 seconds. And you? 18 seconds. And you? 5B. 5B. “What do you think?” “How can I help?”“What do you think?” “How can I help?” —MBWA —MBWA 8/Eight words, repeated like a mantra while8/Eight words, repeated like a mantra while “ “wandering around,” that unlock engagement/wandering around,” that unlock engagement/ success for multitudes.success for multitudes.5C. Innovate by “Hanging out” /“You are what you5C. Innovate by “Hanging out” /“You are what you eat.”/eat.”/ “You will become like the five people you“You will become like the five people you associate with the most —a blessing or a curse.”/associate with the most —a blessing or a curse.”/ Want “cool”? Expose yourself to cool! /ManageWant “cool”? Expose yourself to cool! /Manage “ “hanging out” zealously-formally —with customers,hanging out” zealously-formally —with customers, interesting outsiders, etc.interesting outsiders, etc.


5D. K = R = P 5D. K = R = P (Kindness = Repeat business = Profit.)(Kindness = Repeat business = Profit.) “ “Hard is soft. Soft is hard.” —#1 finding Hard is soft. Soft is hard.” —#1 finding In Search In Search ofof ExcellenceExcellence. Kindness is “hard”—and pay off in $$$. Kindness is “hard”—and pay off in $$$$.$.5E. Apology Power—Awesome power: 3-minute “I’m5E. Apology Power—Awesome power: 3-minute “I’m sorry” call heals anything—do it religiously!/”Over-sorry” call heals anything—do it religiously!/”Over- the-top” response to even small booboo the-top” response to even small booboo strengthensstrengthens customer relationships!customer relationships!

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.6.6. ““Little BIG Things”/Focus on “multipliers”: WalmartLittle BIG Things”/Focus on “multipliers”: Walmart goes to big shopping cart = +50% “big stuff” sales goes to big shopping cart = +50% “big stuff” sales

boost!/“Wash your Hands” —save thousands of lives boost!/“Wash your Hands” —save thousands of lives P.A. in hospitals!P.A. in hospitals!

6A. “Little BIG Things”: SMEs bedrock of all economies. 6A. “Little BIG Things”: SMEs bedrock of all economies. Nurture them. SME’s battle cryNurture them. SME’s battle cry

per George Whalin: per George Whalin: “Be the best. It’s the only “Be the best. It’s the only market that’s not crowded.”market that’s not crowded.”

7. Apple > Exxon in market cap courtesy … 7. Apple > Exxon in market cap courtesy … DESIGN!DESIGN! /The big “Duh”: “Cool beats un- cool!”/Design /The big “Duh”: “Cool beats un- cool!”/Design candidate for “best way to differentiate goods-candidate for “best way to differentiate goods-services in competitive markets.”services in competitive markets.”

7A. 7A. TGRs/Things Gone Right.TGRs/Things Gone Right. Wagon Wheel restaurant, Wagon Wheel restaurant, Gill MA—clean restroom with fresh flowers.—we Gill MA—clean restroom with fresh flowers.—we remember such touches more or less forever/ remember such touches more or less forever/

Manage-measure TGRs.Manage-measure TGRs.7B. Scintillating Experiences. Howard Schultz on7B. Scintillating Experiences. Howard Schultz on Starbucks: “At our core, we’re a coffeeStarbucks: “At our core, we’re a coffee company, but the opportunity we have to extend the company, but the opportunity we have to extend the

brand is beyond coffee; it’s entertainment.” brand is beyond coffee; it’s entertainment.”

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.8. 8. WOMEN Buy! WOMEN Rule! WOMEN’s World!WOMEN Buy! WOMEN Rule! WOMEN’s World! Women Women buybuy 80% of everything—$28T world market/“Why Warren80% of everything—$28T world market/“Why Warren Buffett Invests Like a Girl”—e.g., studies harder-holdsBuffett Invests Like a Girl”—e.g., studies harder-holds longer-less frenzied buying and selling/Women’slonger-less frenzied buying and selling/Women’s leadership style fits 21st century less-hierarchicalleadership style fits 21st century less-hierarchical enterprise./Evidence clear— Women well on the way toenterprise./Evidence clear— Women well on the way to 21st century economic domination! Brazil’s President21st century economic domination! Brazil’s President Dilma Rousseff at UN: Dilma Rousseff at UN: “the century of women.”“the century of women.”9. Web-Social Media/ “Everyone becomes our valued9. Web-Social Media/ “Everyone becomes our valued partner, a member of our community—andpartner, a member of our community—and watchdog”/watchdog”/The Power of Co-creationThe Power of Co-creation —my “Top Biz —my “Top Biz Book for 2010”/SM can be lynchpin of transformativeBook for 2010”/SM can be lynchpin of transformative strategy—for organizations of every shape and size!strategy—for organizations of every shape and size!10. Value added via transformation from 10. Value added via transformation from “Customer“Customer satisfaction” to “ customer success”satisfaction” to “ customer success” —huge —huge difference-difference- opportunity! /E.g., IBM Global Services, fromopportunity! /E.g., IBM Global Services, from afterthought to $60B/UPS Logistics/MasterCardafterthought to $60B/UPS Logistics/MasterCard Advisors/ IDEO, help clients create “culture ofAdvisors/ IDEO, help clients create “culture of innovation”/“The Geek Squad”—Best Buy's #1 innovation”/“The Geek Squad”—Best Buy's #1 strategicstrategic point of differentiation.point of differentiation.

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.11. Innovation “secret” #1: 11. Innovation “secret” #1: “Most tries wins.”“Most tries wins.” / “A Bias / “A Bias forfor Action”—excellence trait #1, Action”—excellence trait #1, In Search of ExcellenceIn Search of Excellence /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying toto figure out the best way to do something and figure out the best way to do something and stickingsticking to it, just try out an approach and keep fixing it.” to it, just try out an approach and keep fixing it.” — —Bert RutanBert Rutan11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/ “Fail11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/ “Fail faster, succeed sooner”—David Kelley /“Rewardfaster, succeed sooner”—David Kelley /“Reward excellent failures, punish mediocre successes”/excellent failures, punish mediocre successes”/ Whoever Makes the Most Mistakes WinsWhoever Makes the Most Mistakes Wins —Richard —Richard FarsonFarson11B. 11B. “You miss 100% of the shots you never take.” “You miss 100% of the shots you never take.” — —Wayne GretzkyWayne Gretzky

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always. 12. 12. Live WOW!Live WOW!//Zappos creed … “WOW Customers”/Zappos creed … “WOW Customers”/ eBay 14,000 employees, Amazon 20,000eBay 14,000 employees, Amazon 20,000 employees, Craig’s List 30 employees; regardless ofemployees, Craig’s List 30 employees; regardless of issue, Where’s your “Wild and Wooly Craig’s issue, Where’s your “Wild and Wooly Craig’s List Option”?/ Final point in superstar adman KevinList Option”?/ Final point in superstar adman Kevin Roberts’ Credo: Roberts’ Credo: “Avoid moderation!”“Avoid moderation!”13. 13. EXCELLENCE is a personal choice … not an EXCELLENCE is a personal choice … not an

institutional choice!institutional choice! EXCELLENCE is not an “aspiration” —it’s the next EXCELLENCE is not an “aspiration” —it’s the next

five minutes!five minutes!13A. EXCELLENCE. Always. If not EXCELLENCE, What?13A. EXCELLENCE. Always. If not EXCELLENCE, What? If not EXCELLENCE Now, When?If not EXCELLENCE Now, When?

2.16 2.16 Why Why Not II?Not II?

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

go to go to SiberiaSiberia?”?”

A half-dozen years ago I went to A half-dozen years ago I went to Novosibirsk, Siberia, to give a seminar. Novosibirsk, Siberia, to give a seminar. (Novosibirsk, center of Soviet scientific (Novosibirsk, center of Soviet scientific excellence, was now confronting the global excellence, was now confronting the global economy—and looking for a new direction.) economy—and looking for a new direction.)

The unusual setting caused me to go back The unusual setting caused me to go back to “first principals” in my thinking about to “first principals” in my thinking about enterprise.enterprise.

I asked myself, for starters …I asked myself, for starters …

“WHAT’S THE POINT?”“WHAT’S THE POINT?”

ENTERPRISEENTERPRISE* (*AT ITS BEST):* (*AT ITS BEST): An An emotionalemotional, , vitalvital, , innovativeinnovative, j, jooyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

concerted humanconcerted human potential in thepotential in the wholehearted wholehearted ppursuit of ursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

ENTERPRISEENTERPRISE* * (*AT ITS BEST)(*AT ITS BEST) : : An An emotionalemotional, , vitalvital, ,

innovativeinnovative, j, jooyyfulful, , creativecreative, , entreentreppreneurialreneurial

endeavor that elicits endeavor that elicits maximum maximum

concerted human concerted human potential in the potential in the

wholehearted wholehearted ppursuit of ursuit of EXCELLENCE inEXCELLENCE in serviceservice of of

othersothers.

Enterprise, as I note … Enterprise, as I note … AT ITS BESTAT ITS BEST..(Obviously not always achieved—or, alas, even aspired to.) (Obviously not always achieved—or, alas, even aspired to.)

On the other hand …On the other hand …

if this or something very much like if this or something very much like it is it is notnot the aim, then … what the aim, then … what isis the point?the point? (In Palo Alto.)(In Palo Alto.)(In Brooklyn.)(In Brooklyn.)(In Des Moines.) (In Des Moines.) (In Novosibirsk.)(In Novosibirsk.)

Think about it.Think about it.Please.Please.(Also: Consider the (Also: Consider the oppositeopposite of each word here—is, say, of each word here—is, say, “joyless” acceptable?)“joyless” acceptable?)

(Photo is me and my interpreter, who turned out to have an economics PhD from (Photo is me and my interpreter, who turned out to have an economics PhD from the University of Maryland; on stage in Novosibirsk.)the University of Maryland; on stage in Novosibirsk.)

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

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.” ——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.:

How We Built a Workplace People LoveHow We Built a Workplace People Love

The systems software industry is tough as nails, The systems software industry is tough as nails, fast-paced—and unforgiving. And yet Menlo CEO fast-paced—and unforgiving. And yet Menlo CEO Richard Sheridan insists that his raison d'être, Richard Sheridan insists that his raison d'être, competitive advantage and success “secret” is … competitive advantage and success “secret” is …

JOYJOY!!Again, please think about this.Again, please think about this.Carefully.Carefully.What would be the literal translation in your world?What would be the literal translation in your world?

And: And: WHY NOTWHY NOT??(Seriously.)(Seriously.)

2.17 2.17 Why Why Not III?Not III?

Apple design:Apple design: “Huge “Huge degree of degree of

carecare.”.”

——Ian Parker, Ian Parker, New YorkerNew Yorker, 23 March 2015, , 23 March 2015, on Apple design chief Jony Iveson Apple design chief Jony Ives

““Huge degree of care” should—in my Huge degree of care” should—in my thoroughly biased opinion—be the thoroughly biased opinion—be the hallmark of every professional’s work. In hallmark of every professional’s work. In our own fashion, we should apply Jony our own fashion, we should apply Jony Ive’s standard to everything we do.Ive’s standard to everything we do.

Starting—yes—with the emails Starting—yes—with the emails we send.we send.Why not?Why not?Care-in-communication: What could be Care-in-communication: What could be more important to a professional?more important to a professional?

2.18 2.18 ORGANIZATIONS ORGANIZATIONS THAT ARE AS THAT ARE AS

EXCELLENT/WELL EXCELLENT/WELL DESIGNED AS AN DESIGNED AS AN

APPLE DEVICEAPPLE DEVICE

““New technology, by itself, has little economic New technology, by itself, has little economic benefit. … The economic benefits arise not from benefit. … The economic benefits arise not from

innovation itself, but from the entrepreneurs who innovation itself, but from the entrepreneurs who eventually discover ways to put innovation to eventually discover ways to put innovation to

practical use—practical use—and, and, most criticallmost critically, y, from the from the ororgganizational anizational chanchangges throues througgh which h which

businesses reshabusinesses reshappe e themselvesthemselves to take to take advantage of new advantage of new

technology.”technology.” —Marc Levinson,—Marc Levinson, The Box: How The Box: How the Shipping Container Made the World Smaller and the the Shipping Container Made the World Smaller and the

World Economy BiggerWorld Economy Bigger

The shipping container only “changed the The shipping container only “changed the world” … world” … decadesdecades ... after its creation. First ... after its creation. First “everything” had to change. That is, the “everything” had to change. That is, the entire nature of ports and the entire nature of ports and the transportation system writ large. transportation system writ large.

Which is to say, it’s the subsequent and Which is to say, it’s the subsequent and painstaking and political and “non-instant” painstaking and political and “non-instant” … … ORGANIZATIONALORGANIZATIONAL ARRANGEMENTSARRANGEMENTS ... ... that make all the difference in moving that make all the difference in moving forward, not the technology per se. forward, not the technology per se.

““Management” as conventionally perceived is a dreary/ Management” as conventionally perceived is a dreary/ misleading/constrained word. E.g., mgt/standard usage = misleading/constrained word. E.g., mgt/standard usage =

Shouting orders in the slave galley. Shouting orders in the slave galley.

Consider, please, a more encompassing/more accurate Consider, please, a more encompassing/more accurate definition:definition:

“‘“‘Management’ is the Management’ is the arrangement and animation arrangement and animation

of human affairs in of human affairs in pursuit of desired pursuit of desired

outcomes.”outcomes.”

Management is Management is notnot about Theory X vs. Theory Y/“top down” about Theory X vs. Theory Y/“top down” vs. “bottom up.” Management vs. “bottom up.” Management isis about the essence of human about the essence of human behavior (Drucker called management a “liberal art”), how we behavior (Drucker called management a “liberal art”), how we

fundamentally arrange our collective efforts in order to fundamentally arrange our collective efforts in order to survive, adapt—and, one hopes, thrive. survive, adapt—and, one hopes, thrive. (E.g., Hall of Fame (E.g., Hall of Fame

managementmanagement document: Constitution of the United States of document: Constitution of the United States of America.)America.)

As Peter Drucker, in particular, taught us, management is As Peter Drucker, in particular, taught us, management is an an artformartform of the utmost importance to humanity— of the utmost importance to humanity—consider the U.S. Constitution, one of the greatest consider the U.S. Constitution, one of the greatest management documents in human history. (Yes, it management documents in human history. (Yes, it isis a a “management document.”) “management document.”)

We think of the care and craft that goes into the design We think of the care and craft that goes into the design of, say, an Apple product. But we don’t typically think in of, say, an Apple product. But we don’t typically think in the same way about “management architecture.” That is the same way about “management architecture.” That is a mistake of the first order.a mistake of the first order.

Arrangement of human affairs to produce Arrangement of human affairs to produce a desired and sustainable result is by a desired and sustainable result is by definition Leadership Team Task #1definition Leadership Team Task #1.. I am I am urging you to think about your organizational urging you to think about your organizational architecture—architecture—andand the achievement of excellence thereinthe achievement of excellence therein—the same way Steve Jobs thought about one of his —the same way Steve Jobs thought about one of his landmark Apple devices.landmark Apple devices.

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

has the RESPONSIBILITY to increase the … has the RESPONSIBILITY to increase the … “SUM “SUM OF HUMAN WELL-OF HUMAN WELL-BEING.”BEING.” Business is Business is NOTNOT “part of the “part of the community.” In terms of how adults collectively spend their community.” In terms of how adults collectively spend their

waking hours: Business waking hours: Business ISIS the community. And should act the community. And should act accordingly. The (REALLY) good news: Community accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way?) to have mindedness is a great way (the BEST way?) to have spirited/committed/customer-centric work force—and, spirited/committed/customer-centric work force—and, ultimately, increase (maximize?) growth and profitability.ultimately, increase (maximize?) growth and profitability.

BUSINESS IS BUSINESS IS NOTNOT “PART OF THE “PART OF THE COMMUNITY.COMMUNITY.

BUSINESS BUSINESS ISIS THE COMMUNITY. THE COMMUNITY.HENCE BUSINESS ENTAILS AN HENCE BUSINESS ENTAILS AN ENORMOUS ENORMOUS MORALMORAL COMPONENT. COMPONENT...

I love this!I love this!(And “buy it” 100%.)(And “buy it” 100%.)

Read it. Read it. Re-read it. Re-read it. Think about it. Think about it. Discuss it. Discuss it. Act on it.Act on it.

Business’ Moral Imperative:Business’ Moral Imperative:

““[INCREASE [INCREASE THE] SUM OF THE] SUM OF HUMAN WELL-HUMAN WELL-

BEING.”BEING.”Source: Source: Good BusinessGood Business, Mihaly Csikszentmihalyi, Mihaly Csikszentmihalyi

Yup.Yup.Wow.Wow.(Up for it?*)(Up for it?*)(*Actually, circa 2016, you have no (*Actually, circa 2016, you have no choice.)choice.)

((NowNow more than ever—e.g., tech more than ever—e.g., tech driven changes are playing havoc with driven changes are playing havoc with employment, and we’re barely at the employment, and we’re barely at the beginning of the beginning.)beginning of the beginning.)

Warren Bennis on superior forms of enterprise:Warren Bennis on superior forms of enterprise:

““Successful Successful human human

communities”communities”

Same idea. Same idea. A bit more modest linguistically.A bit more modest linguistically.

"We all start out in life loving our fathers and mothers "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with husbands and children and friends and to cooperate with

and show respectand show respect to all worthy individuals with whom we come in contact or to all worthy individuals with whom we come in contact or have an opportunity to reach in other ways. We must apply have an opportunity to reach in other ways. We must apply

that to nations and to other businesses. that to nations and to other businesses. "We in IBM must not confine our thoughts just to IBM. "We in IBM must not confine our thoughts just to IBM.

We must extend our cooperation to all other businesses We must extend our cooperation to all other businesses whether we do business with them or not. We are one whether we do business with them or not. We are one

cog in the industrial wheel. cog in the industrial wheel. "Then as citizens we must extend our respect to all worthy "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome people in all nations. We are moving along in troublesome times, but the love of these various things of which I have times, but the love of these various things of which I have

spoken and of the people in whom we are interested is spoken and of the people in whom we are interested is Going to be the great force which will make us all appreciate Going to be the great force which will make us all appreciate

the spiritual values which constitute the only solid the spiritual values which constitute the only solid foundation on which we can build." foundation on which we can build."

——Thomas J. Watson, Sr. address to IBM Sales and Service Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, Class 525 and Customer Engineers Class 528,

IBM Country Club, Endicott, NY, October 30, 1941IBM Country Club, Endicott, NY, October 30, 1941

EXCELLENCE.EXCELLENCE.

2.19 2.19 SERVICESERVICE..PERIODPERIOD..

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

PERIOD.PERIOD.(And if this is NOT your measure …)(And if this is NOT your measure …)

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..

My take on “all this” … understanding the My take on “all this” … understanding the role of enterprise by combining the call to role of enterprise by combining the call to SERVESERVE and the aspiration to and the aspiration to EXCELLENCEEXCELLENCE..

((In Search of ExcellenceIn Search of Excellence, my 1982 book with Bob , my 1982 book with Bob Waterman, is generally regarded as the book that married Waterman, is generally regarded as the book that married the idea of Excellence per se to the practice of business. the idea of Excellence per se to the practice of business. The quest for Excellence is the unyielding bedrock of The quest for Excellence is the unyielding bedrock of enterprise—as we saw it. And to that I now say with enterprise—as we saw it. And to that I now say with passion and urgency … add passion and urgency … add serviceservice to excellence at the to excellence at the “co-top” of the veeeeery short list.) “co-top” of the veeeeery short list.)

2.202.20 EXCELLENCE. EXCELLENCE.

Not.Not.

““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 he have something he will never have …will never have …

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)

At a party given by a billionaire on Shelter Island, At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more their host, a hedge fund manager, had made more money in a single day than Heller had earned from his money in a single day than Heller had earned from his wildly popular novel wildly popular novel Catch-22Catch-22 over its whole history. over its whole history. Heller responds … Yes, but I have something he will Heller responds … Yes, but I have something he will never have … never have …

enough.enough. Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, and Enough. The Measures of Money, Business, and LifeLife (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

If there is a “must read” book in the current If there is a “must read” book in the current century that examines the moral role of century that examines the moral role of business in society, it’s Jack Bogle’s business in society, it’s Jack Bogle’s Enough. The Measures of Money, Enough. The Measures of Money, Business, and LifeBusiness, and Life..

(The Vonnegut-Heller exchange launches(The Vonnegut-Heller exchange launches the book.) the book.)

CHAPTER TITLESCHAPTER TITLES““Too Much Cost, Too Much Cost, Not EnouNot Enouggh Valueh Value””““Too Much Speculation, Too Much Speculation, Not EnouNot Enouggh h

InvestmentInvestment””““Too Much Complexity, Too Much Complexity, Not EnouNot Enouggh Simh Simpplicitlicity”y”

““Too Much Counting, Too Much Counting, Not EnouNot Enouggh Trusth Trust””““Too Much Business Conduct, Too Much Business Conduct, Not EnouNot Enouggh h

Professional ConductProfessional Conduct””““Too Much Salesmanship, Too Much Salesmanship, Not EnouNot Enouggh h

StewardshiStewardship”p”““Too Much Focus on Things, Too Much Focus on Things, Not EnouNot Enouggh h

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

EnouEnouggh Eighteenth-Centurh Eighteenth-Centuryy Values Values””““Too Much ‘Success,’ Too Much ‘Success,’ Not EnouNot Enouggh Characterh Character””

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

Revealing—and compelling—chapter titles Revealing—and compelling—chapter titles from from Enough. The Measures of Money, Enough. The Measures of Money, Business, and LifeBusiness, and Life..

Read it.Read it.P-L-E-A-S-E.P-L-E-A-S-E.

2.212.21 EXCELLENCE. EXCELLENCE.

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

EXCELLENCE is EXCELLENCE is a a PERSONALPERSONAL choice … choice … NOTNOT an institutional an institutional

choice!choice!

EXCELLENCE is EXCELLENCE is notnot a “long-term” a “long-term” "aspiration.”"aspiration.”

EXCELLENCE EXCELLENCE isis the ultimate short- the ultimate short-term strategy. EXCELLENCE term strategy. EXCELLENCE isis … …

THETHE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

APPENDIX

EXCELLENCE 2025EXCELLENCE 2025A 15-PointA 15-Point

Human Capital Asset Human Capital Asset Development Development

ManifestoManifestoWorld Strategy Forum/World Strategy Forum/

The New Rules: Reframing CapitalismThe New Rules: Reframing CapitalismTom Peters/Seoul/15 June 2012Tom Peters/Seoul/15 June 2012

I was intimidated by the title of a conference I I was intimidated by the title of a conference I addressed in Seoul, Korea. Namely, “Reframing addressed in Seoul, Korea. Namely, “Reframing capitalism.” And by the fact that a passel of Nobel capitalism.” And by the fact that a passel of Nobel laureates in economics would be addressing the issue.laureates in economics would be addressing the issue. Then it occurred to me that the mid- to Then it occurred to me that the mid- to long-term “reframing” was more about long-term “reframing” was more about recasting the nature of work/jobs in, for recasting the nature of work/jobs in, for example, the face of 2020’s artificial example, the face of 2020’s artificial intelligence than about whether the intelligence than about whether the Spanish bailout is $100 billion or $400 Spanish bailout is $100 billion or $400 billion—as nontrivial as the latter is.billion—as nontrivial as the latter is. I.e., I.e., what the hell will the world’s four billion or so workers what the hell will the world’s four billion or so workers be doing, say, 10 years from now? I’m not sure that be doing, say, 10 years from now? I’m not sure that sophisticated econometric analyses will be all that sophisticated econometric analyses will be all that helpful in determining an answer.helpful in determining an answer.

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

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

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

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

worth doinworth doing.”g.”

——Richard BransonRichard Branson

2. 2. Regardless of the transient external Regardless of the transient external situation, development of “human capital” is situation, development of “human capital” is always the #1 priority.always the #1 priority. This is true in general, in This is true in general, in particular in difficult times which demand particular in difficult times which demand resilience—and uniquely true in this age in resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage only plausible survival strategy for higher wage nations. (nations. (Generic “brainwork,” traditional and Generic “brainwork,” traditional and dominant “white-collar activities, is increasindominant “white-collar activities, is increasingglly y bbeineingg pperformed berformed byy exponentiall exponentiallyy enhanced enhanced artificial intelliartificial intelliggenceence.).)

Regardless of the Regardless of the transient external transient external

situation, situation, development of development of

“human capital” is “human capital” is always the #1 always the #1

priority.priority.

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

4. 4. Proposition/axiom: The CTO/Chief TRAINING Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO enterprise, at least on a par with, say, the CFO or CIO or head of R&D.or CIO or head of R&D. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)

I would hazard a guess I would hazard a guess that most CEOs see IT that most CEOs see IT

investments as a investments as a “strategic necessity,” “strategic necessity,”

but see training but see training expenses as expenses as

““a necessary evil.” a necessary evil.”

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get your picture taken next to a new machine. get your picture taken next to a new machine. But how do you get a photo of a new and much But how do you get a photo of a new and much improved attitude in a key distribution center? improved attitude in a key distribution center? But the odds are 25:1 that the new attitude But the odds are 25:1 that the new attitude will add more to the bottom line than will the will add more to the bottom line than will the glorious state-of-the-art machine. glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

7. 7. Every individual on the payroll should have Every individual on the payroll should have a benchmarked professional growth strategy.a benchmarked professional growth strategy. Every leader at every level should be evaluated Every leader at every level should be evaluated in no small measure on the collective in no small measure on the collective effectiveness of individual growth strategies—effectiveness of individual growth strategies—that is, each individual’s absolute growth is of that is, each individual’s absolute growth is of direct relevance to every leader’s assessed direct relevance to every leader’s assessed performance. performance.

Every individualEvery individual on the payroll on the payroll should have a should have a benchmarked benchmarked professional professional

growth strategy.growth strategy.

8. 8. Given that we ceaselessly lament the Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just “leadership deficit,” it is imperative, and just plain vanilla common sense, that we maximize plain vanilla common sense, that we maximize the rate of development of women leaders at the rate of development of women leaders at every level—little if anything has a higher every level—little if anything has a higher priority.priority. (It is an outrage that this has not been (It is an outrage that this has not been the case until now—and is still not the case in the case until now—and is still not the case in far too many institutions.) (And, while there far too many institutions.) (And, while there are no guarantees, women are more likely are no guarantees, women are more likely dispositionally to take a shine to the dispositionally to take a shine to the imperative of maximizing human asset imperative of maximizing human asset development.)development.)

9. 9. Maximum utilization of and continued Maximum utilization of and continued development of “older workers” (to age 70—development of “older workers” (to age 70—or even beyond?) is a source of immense or even beyond?) is a source of immense organizational and national growth and organizational and national growth and wealth.wealth. The rapidly aging population, with The rapidly aging population, with oldies far more healthy and vital than ever, oldies far more healthy and vital than ever, Ought to be an opportunity rather than a pain-Ought to be an opportunity rather than a pain-in-the-butt to deal with.in-the-butt to deal with.

10. 10. The practical key to all human asset The practical key to all human asset development activities is the 1st-line development activities is the 1st-line manager.manager. (“Sergeants run the Army” is an (“Sergeants run the Army” is an accurate commonplace. observation—accurate commonplace. observation—supported by development resources.) Hence supported by development resources.) Hence development of the full cadre of 1st-line development of the full cadre of 1st-line managers is an urgent—and invariably managers is an urgent—and invariably underplayed—strategic imperative. Arguably, underplayed—strategic imperative. Arguably, the collective quality and development the collective quality and development trajectory of 1st-line leaders is an trajectory of 1st-line leaders is an organization’s #1 human asset development organization’s #1 human asset development priority. (Consistent with all the above, the priority. (Consistent with all the above, the 1st-line leader’s skill at “people 1st-line leader’s skill at “people development” is her or his top priority—for development” is her or his top priority—for which she or he must be rigorously and which she or he must be rigorously and continually trained.)continually trained.)

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.

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

an artist.”an artist.” —Picasso—Picasso

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

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

MaedaMaeda

12. 12. Associated with the accelerated priority of Associated with the accelerated priority of the national education infrastructure is a the national education infrastructure is a dramatically enhanced and appreciated and dramatically enhanced and appreciated and compensated role for our teachers—this must compensated role for our teachers—this must necessarily be accompanied by rigorous necessarily be accompanied by rigorous accountability.accountability. There is no doubt that There is no doubt that “teaching” (instilling) insatiable curiosity, say, “teaching” (instilling) insatiable curiosity, say, which is the #1 attribute of a creative person, which is the #1 attribute of a creative person, is no easy task; however, there is no way that is no easy task; however, there is no way that it can be ducked if one looks at future it can be ducked if one looks at future definitions of employability. definitions of employability.

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

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

tech-savvy of our tech-savvy of our university graduates mustuniversity graduates must

——mustmust, , notnot shouldshould—be lured—be lured

into teaching!into teaching!

12. 12. Associated with the accelerated priority of Associated with the accelerated priority of the national education infrastructure is a the national education infrastructure is a dramatically enhanced and appreciated and dramatically enhanced and appreciated and compensated role for our teachers—this must compensated role for our teachers—this must necessarily be accompanied by rigorous necessarily be accompanied by rigorous accountability.accountability. There is no doubt that There is no doubt that “teaching” (instilling) insatiable curiosity, say, “teaching” (instilling) insatiable curiosity, say, which is the #1 attribute of a creative person, which is the #1 attribute of a creative person, is no easy task; however, there is no way that is no easy task; however, there is no way that it can be ducked if one looks at future it can be ducked if one looks at future definitions of employability. definitions of employability.

13. 13. The great majority of us work in small The great majority of us work in small enterprises; hence national growth enterprises; hence national growth objectives based upon human capital objectives based upon human capital development MUST necessarily extend development MUST necessarily extend “downward” to even 1-person enterprises.“downward” to even 1-person enterprises. Collective productivity improvement through Collective productivity improvement through human capital development among small human capital development among small businesses has an unimaginably large—and businesses has an unimaginably large—and underappreciated—payoff. While many small underappreciated—payoff. While many small business appreciate the notion, they are business appreciate the notion, they are unprepared to take the steps necessary to unprepared to take the steps necessary to engage their, say, dozen employees in engage their, say, dozen employees in seeking productivity improvements.seeking productivity improvements.

The great majority of us The great majority of us work in small enterprises; work in small enterprises;

hence national growth hence national growth objectives based upon objectives based upon

human capital human capital development MUST development MUST necessarily extend necessarily extend

“downward” to even “downward” to even 1-person enterprises.1-person enterprises.

14. 14. Needless to say, the activities imagined Needless to say, the activities imagined here will only be possible if abetted by a here will only be possible if abetted by a peerless National Information and peerless National Information and Communication Infrastructure.Communication Infrastructure. Indeed, the Indeed, the work here is being done—and the need is work here is being done—and the need is appreciated and reasonably well funded. The appreciated and reasonably well funded. The effort must not falter; the new information-effort must not falter; the new information-based tools are the coin of the realm.based tools are the coin of the realm.

15. 15. A The good news: We are up to the A The good news: We are up to the challenge. The entrepreneurial spirit is a near challenge. The entrepreneurial spirit is a near universal, not just available to a privileged universal, not just available to a privileged few. few. One thinks of entrepreneurs, and One thinks of entrepreneurs, and Richard Branson or Elon Musk comes to mind. Richard Branson or Elon Musk comes to mind. Fair enough. But there are as many flavors of Fair enough. But there are as many flavors of entrepreneurial behavior as there are adult entrepreneurial behavior as there are adult citizens. And, with effort and appropriate citizens. And, with effort and appropriate support systems, it is possible to re-kindle support systems, it is possible to re-kindle that flair in one and almost all.that flair in one and almost all.

Muhammad Yunus: Muhammad Yunus: ““All human All human beinbeinggs are s are

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

human history began . . . As human history began . . . As civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped

us, ‘Youus, ‘You are labor.’ We forgot that weare labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.” Source: The News Hour/PBS/1122.2006Source: The News Hour/PBS/1122.2006