“I am often asked …I am often asked …

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

seems obviousseems obvious … …

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

Excellence.Excellence.Always.Always.

Gartner Group/Gartner Group/PPM & IT Governance SummitPPM & IT Governance Summit Tom Peters/San Diego/22 June 2011Tom Peters/San Diego/22 June 2011

(Slides @ tompeters.com)(Slides @ tompeters.com)

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

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

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

andand “Verdana”“Verdana”

““Breakthrough” 82*Breakthrough” 82*

People! People! Execution! Execution! Excellence! Excellence!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

The Pursuit of … The Pursuit of … BalanceBalance

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

Soft Is Soft Is HardHard (people, (people, Culture, customers,* Culture, customers,* values, relationships)values, relationships)

* “sales” > “marketing”* “sales” > “marketing”“service” > “sales” “service” > “sales”

What What WorksWorks..What What Doesn’tDoesn’t..

No.“Optimization”“Centralization”

“We’ve got to get this right.”“Let’s get organized.”

“Perfectly compatible”“Synergy”

“Benchmarking”“Best practices”

“Low standard deviation”“Big”

YesYes..

“Satisfice” “Satisfice”“Requisite variety”“Requisite variety”

“RADICAL decentralization”“RADICAL decentralization”“High standard deviation”“High standard deviation”

“Resilience”“Resilience”“Focus”/“Niche”/“Mid-size”“Focus”/“Niche”/“Mid-size”“Let’s get DIS-organized.”“Let’s get DIS-organized.”

YesYes..

“Satisfice” “Satisfice”“Requisite variety”“Requisite variety”

“RADICAL decentralization”“RADICAL decentralization”“High standard deviation”“High standard deviation”

“Resilience”“Resilience”“Focus”/“Niche”/“Mid-size”“Focus”/“Niche”/“Mid-size”“Let’s get DIS-organized.”“Let’s get DIS-organized.”

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

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

TheTheyy found that found that nonenone ofof

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

the database, the worse thethe database, the worse theyy did did.”.”

—Financial Times—Financial Times

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

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

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

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

Public Enemy #1: I.C.D.Public Enemy #1: I.C.D. Immutable Centralist DriftImmutable Centralist Drift

““Once a system grows sufficiently complex and Once a system grows sufficiently complex and centralized, it doesn’t matter how badly our best and centralized, it doesn’t matter how badly our best and brightest foul things up. Every crisis increases their brightest foul things up. Every crisis increases their

authority, because they seem to be the only ones who authority, because they seem to be the only ones who

understand the system well enough to fix it.understand the system well enough to fix it. But their fixes tend to make the system even more complex and centralized,

and more vulnerable to the next national-security surprise, the next natural disaster, the next

economic crisis.” —Ross Douthat/—Ross Douthat/NYTimesNYTimes

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

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand**

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

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

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

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

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

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

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

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

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

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

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

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

““Rose gardeners face a choice every spring. The long-term fate of a rose garden Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight neighborhood, you will prune hard. This represents a policy of low tolerance and tight

control. You force the plant to make the maximum use of its available resources, by control. You force the plant to make the maximum use of its available resources, by

putting them into the the rose’s ‘core business.’ putting them into the the rose’s ‘core business.’ Pruning hard is a Pruning hard is a dangerous policy in an unpredictable environment. Thus, dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will on you, you may opt for a policy of high tolerance. You will

never have the biggest roses, but you have a much-never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will enhanced chance of having roses every year. You will

achieve a gradual renewal of the plant. In short, tolerant achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) pruning achieves two ends: (1) It makes it easier to coIt makes it easier to coppe e with unexwith unexppected environmental chanected environmental changgeses. (2) . (2) It leads to a It leads to a

continuous restructurincontinuous restructuringg of the plant of the plant. The policy of . The policy of tolerance admittedly wastes resources—the extra buds tolerance admittedly wastes resources—the extra buds

drain away nutrients from the main stem. But in an drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes unpredictable environment, this policy of tolerance makes the rose healthier in the long run.”the rose healthier in the long run.” —Arie De Geus, —Arie De Geus, The Living CompanyThe Living Company

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

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““Never forgetNever forget the all- the all-

important … last important … last 98%.”98%.”

Conrad Hilton …Conrad Hilton …

Conrad Hilton, at a gala celebrating his Conrad Hilton, at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

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

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““Costco figured out the Costco figured out the

bigbig,, simplesimple things things

and and executedexecuted with with

total total fanaticismfanaticism.”.” —Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

““When assessing candidates, the first thing I looked for was When assessing candidates, the first thing I looked for was

energy and enthusiasm for execution. energy and enthusiasm for execution. Does she talk Does she talk about the thrill of getting things done, about the thrill of getting things done, the obstacles overcome, the role her the obstacles overcome, the role her people playedpeople played —or does she keep wandering back—or does she keep wandering back

to strategy or philosophy?” to strategy or philosophy?”

“I saw that leaders placed too much “I saw that leaders placed too much emphasis on what some call high-level emphasis on what some call high-level

strategy, on intellectualizing and strategy, on intellectualizing and philosophizing, and not enough on philosophizing, and not enough on

implementationimplementation.. People would agree on a project or People would agree on a project or initiative, and then nothing would come of it.”initiative, and then nothing would come of it.”

Source: Larry Bossidy & Ram Charan/Source: Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things DoneExecution: The Discipline of Getting Things Done

““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 came to see in my time at IBM that culture isn’t just

one aspect of the game ——it is the it is the

gamegame.”.” —Lou Gerstner,—Lou Gerstner,

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

#1.#1.Period.Period.

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Never Never waste a waste a lunch!lunch!**

*The “sacred 220 at bats”*The “sacred 220 at bats”

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

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

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

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]

was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from

widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”

R.O.I.R.R.O.I.R.** >>

R.O.I. R.O.I. *Return On Investment In Relationships*Return On Investment In Relationships

““XFXXFX SocialSocial Accelerators.” Accelerators.”

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

““His habit was to let the His habit was to let the locals get primary credit—locals get primary credit—unheard of! Sometimes he unheard of! Sometimes he

disappeared into the disappeared into the woodwork entirely. He had woodwork entirely. He had

the whole __PD working their the whole __PD working their butts off for him, including butts off for him, including the the [temperamental][temperamental] Chief.” Chief.” —close —close colleague of senior federal law enforcement officercolleague of senior federal law enforcement officer

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, cover story, Source: Horacio Falcao, cover story, World BusinessWorld Business, “Say It Like a , “Say It Like a Woman: Why the 21Woman: Why the 21stst-century negotiator will need the female touch”-century negotiator will need the female touch”

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE**:: New Studies find New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

**Projected to be Projected to be 8080%% middle managers by approx middle managers by approx 20202020

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

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

““I got to know hisI got to know his [Icahn’s][Icahn’s] secretariessecretaries.. They They

are always the keepers of are always the keepers of everything.”everything.”

—Dick Parsons, then CEO Time Warner,—Dick Parsons, then CEO Time Warner, on dealing with an Icahn threat to his company on dealing with an Icahn threat to his company

“Parsons is not a visionary. He “Parsons is not a visionary. He is, instead, a master in the art is, instead, a master in the art

of relationship.”of relationship.” —Bloomberg Businessweek (03.11)—Bloomberg Businessweek (03.11)

““I believe that it is more I believe that it is more important for a leader to be important for a leader to be trained in trained in pspsyychiatrchiatry than y than

ccyyberneticsbernetics. The head of a big . The head of a big company recently said to me, ‘I company recently said to me, ‘I am no longer a Chairman. I have am no longer a Chairman. I have

had to become a psychiatric had to become a psychiatric nurse.’ Today’s executive is nurse.’ Today’s executive is

under pressure unknown to the under pressure unknown to the last generation.”last generation.” —David Ogilvy—David Ogilvy

““Don’t ever use that word Don’t ever use that word ‘synergy.’ It’s a ‘synergy.’ It’s a

hideous word. The only thing that works word. The only thing that works

is natural law. is natural law. Given enouGiven enouggh h time, natural relationships will time, natural relationships will

develodevelopp between our between our businessesbusinesses.”.” —Barry Diller, responding to a—Barry Diller, responding to a

student question, address at the Harvard Business Schoolstudent question, address at the Harvard Business School (from Marshall Goldsmith, (from Marshall Goldsmith, What Got You Here Won’t Get You ThereWhat Got You Here Won’t Get You There

#1.#1.Period. Period.

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

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

18 18 secondsseconds

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

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Could It Be This Simple?Could It Be This Simple?

InIn-effective leaders … -effective leaders …

TALKTALK..

Effective leaders … Effective leaders …

LISTENLISTEN..Inspiration: Inspiration: Multipliers: How the Best Leaders Make Everyone SmarterMultipliers: How the Best Leaders Make Everyone Smarter, ,

Liz Wiseman [Some “hard” evidence that effective leaders, in terms of % of Liz Wiseman [Some “hard” evidence that effective leaders, in terms of % of elapsed meeting time, talk less than half as much as less effective leaders.] elapsed meeting time, talk less than half as much as less effective leaders.]

"When I was in medical school, I "When I was in medical school, I spent hundreds of hours looking spent hundreds of hours looking into a microscope—a skill I never into a microscope—a skill I never needed to know or ever use. needed to know or ever use. Yet I didn't have a single class that taught me communication or teamwork skills—something I need every day I walk into the

hospital.” —Peter Pronovost, —Peter Pronovost, Safe Patients, Smart HospitalsSafe Patients, Smart Hospitals

 

Is there a full-bore Is there a full-bore training course in training course in

"Listening" for "Listening" for

100100%% of of employees, CEOemployees, CEO

to temps? If not, There to temps? If not, There [[damndamn wellwell] ought to ] ought to

be.be.

#7: K = R = P#7: K = R = P

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

"Let's not forget that small "Let's not forget that small emotions are the greatemotions are the great

captains of our lives."captains of our lives."—Van Gogh—Van Gogh

““When dealing with people, When dealing with people, remember you are not dealing remember you are not dealing

with creatures of logic, butwith creatures of logic, but with creatures of emotion, with creatures of emotion,

creatures bristling with creatures bristling with prejudice and motivated by prejudice and motivated by pride and vanity.”pride and vanity.” —Dale Carnegie—Dale Carnegie

K = R = K = R = PP**

**KKindness = indness = RRepeat Business = epeat Business = PProfitrofit

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

nonenone of THE top 15 factors of THE top 15 factors

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

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

EmploEmployyee Satisfactionee Satisfaction

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

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

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

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

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

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

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

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

lastlast

1515 y yearsears!!

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.**

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

Why Must I …Why Must I …

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

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

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

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

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

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

Brand Brand = =

Talent.Talent.

Our Mission

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

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

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

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

WPP

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

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

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

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

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

““The leaders of Great Groups … The leaders of Great Groups …

lovelove talent talent … and know … and know

where to find it. They … where to find it. They … revelrevel inin …… the talent of the talent of

others.”others.” —Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing GeniusOrganizing Genius

PARC’s Bob Taylor:PARC’s Bob Taylor: “Connoisseur “Connoisseur of Talent”of Talent”

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!people!

The Memories That MatterThe Memories That Matter

The people you developed who went on toThe people you developed who went on to stellar accomplishments inside or outsidestellar accomplishments inside or outside the company.the company. The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The longshots (people with “a certain something”) you bet on whoThe longshots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.

The people of all stripes who 2/5/10/20 yearsThe people of all stripes who 2/5/10/20 years later say later say “You made a difference in my “You made a difference in my life,”life,” “ “Your belief in me changed everything.”Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”

Hang Time! Hang Time!

““You will become You will become like the five people like the five people you associate with you associate with the most—this can the most—this can

be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox

The “Hang Out Axiom I”:The “Hang Out Axiom I”: We We are are What We What We

Eat/WeEat/We Are Are the the companycompany we keepwe keep

Measure/Manage: Portfolio “StranMeasure/Manage: Portfolio “Stranggeness”/Qualiteness”/Qualityy

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality, Diversity)(#, Quality, Diversity)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (Line extension v. Leap)(Line extension v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoardEtc.Etc.

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

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

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

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

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

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

Once a month on, say, a Friday, invite Once a month on, say, a Friday, invite somebody intriguing, in any field,somebody intriguing, in any field,

to have lunch with your gang. to have lunch with your gang.

Call it: Call it: “Freak “Freak Fridays”Fridays”

““Companies have Companies have defined so much ‘best defined so much ‘best practice’ that they are practice’ that they are

now more or less now more or less identical.” identical.” —Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

WTTMSW.WTTMSW.

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

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

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

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

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

versionversion ##55.. By the time our rivals are ready with By the time our rivals are ready with

wires and screws, we are on version wires and screws, we are on version ##1010.. It It gets back to planning versus gets back to planning versus actingacting: : We act from day oneWe act from day one; ; others plan how toothers plan how to planplan——for for

monthsmonths.”.”

——Bloomberg by BloombergBloomberg by Bloomberg**C.f. INTUIT (Months to week w/customers)C.f. INTUIT (Months to week w/customers)

““Burt Rutan wasn’t a fighter jock; he was an engineer who Burt Rutan wasn’t a fighter jock; he was an engineer who had been asked to figure out why the F-4 Phantom was had been asked to figure out why the F-4 Phantom was flying pilots into the ground in Vietnam. While his fellow flying pilots into the ground in Vietnam. While his fellow engineers attacked such tasks with calculators, Rutan engineers attacked such tasks with calculators, Rutan

insisted on considering the problem in the air. A near-fatal insisted on considering the problem in the air. A near-fatal flight not only led to a critical F-4 modification, it also flight not only led to a critical F-4 modification, it also

confirmed for Rutan a notion he had held ever since he had confirmed for Rutan a notion he had held ever since he had

built model airplanes as a child.built model airplanes as a child. The waThe wayy to to make a better aircraft wasn’t to make a better aircraft wasn’t to sit around sit around pperfectinerfectingg a design, it a design, it

was to was to gget somethinet somethingg u upp in the air in the air and see what haand see what happppensens, , then trthen tryy to to

fix whatever fix whatever ggoes wronoes wrong.”g.”

——Eric Abrahamson & David Freedman, Chapter 8, “Messy Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,”Leadership,” from A Perfect Mess: The Hidden Benefits of Disorder from A Perfect Mess: The Hidden Benefits of Disorder

““Experiment Experiment fearlessly”fearlessly”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

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

*C * Source: *C * Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company , cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10)portfolios in the face of changing and uncertain global economic conditions (11.08.10)

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

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

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

1/451/45

WWhoeverhoeverTTriesriesTTheheMMostostSStufftuffWWinsins

K.I.S.S.K.I.S.S.(Damn It!)(Damn It!)

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

The Power of Design: A Force for Transforming The Power of Design: A Force for Transforming Everything, Everything, Richard FarsonRichard Farson

Charles Handy:Charles Handy: “One bank is currently claiming to … “One bank is currently claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by

providing a gateway to diverse markets.’”

““I assume that it is just I assume that it is just saying that it issaying that it is there to …there to …

““I assume that it is just saying that it I assume that it is just saying that it

isis there to …there to … ‘ ‘helhelpp its its customers customers

wherever thewherever theyy areare’.”’.” —Charles Handy—Charles Handy

90K in U.S.A. 90K in U.S.A. ICUsICUs on any given day; on any given day; 178178 discrete steps/day/patient in ICU. discrete steps/day/patient in ICU.

50% ICU stays result ICU stays result

in in “serious complication”

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

**Dr. Peter Pronovost, Johns Hopkins

**Checklist/dealing with

line infections**1/3rd lines, at least one procedural error when he started checklist program**Nurses/permission-requirement to stop procedure if doc, other not following checklist (BIG DEAL)**In 1 year, ICU’s 10-day line-infection rate:

11% to … 0%

Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

Appropriate systems’ standards:Appropriate systems’ standards:

Beauty. Beauty. Grace. Grace. Clarity. Clarity.

Simplicity.Simplicity.

Architect Rem Koolhaas on his drive forArchitect Rem Koolhaas on his drive for

clarity-simplicity: clarity-simplicity: “Often “Often my job is to my job is to

undo things.”undo things.”Source: Source: New YorkerNew Yorker

"I've never seen a job "I've never seen a job done by a team of five done by a team of five hundred that couldn't hundred that couldn't be done better by a be done better by a team of fifty.”team of fifty.” —Gordon Bell—Gordon Bell

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

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

might wonder how it is might wonder how it is

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

be cleverbe clever.”.” —Napoleon—Napoleon