Excellence.
Always.
“Hard” is Soft.
“Soft” is Hard.
The “small” courtesies.
Competitive Advantage #1.
Tom Peters
25 November 2009
(Annotated)
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
New book due in February. The Little BIG Things.
Toughest part of “writing” is choosing the epigraph. This is it.
Perfect by my lights. What follows is a straightforward explication
of Mr. Clay’s words.
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
Keep this in mind.
MBWA
Managing By
Wandering Around. A good idea. But more
“Discovered” this at HP in 1978
than that, a metaphor for “staying in touch”—tough for a boss,
particularly as she goes up the hierarchy.
Sunday “Drive By”: The CEO of a very successful mid-sized
bank, in the Mid-west, attended a seminar of mine in
Northern California in the mid-80s—but I remember the
following as if it were yesterday. I’ve forgotten the specific
context, but I recall him saying to me, pretty much word
“Tom let me tell you the
definition of a good lending officer.
After church on Sunday, on the way
home with his family, he takes a
little detour to drive by the factory
he just lent money to. Doesn’t go in
or any such thing, just drives by and
takes a look.”
for word,
Explains a lot of the sub-prime crisis. No “MBWA.”
Hard Is Soft
Soft Is Hard
In Search of Excellence.
The signature of …
See the next slide for a shorthand explanation.
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships)
!!!
#4
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
The patient is the best source of information. Sooo …
seconds
Shame on docs. True enough. But most managers are equally
Are you an “18second manager”? I’d put money on it in 5 cases out
indictable on this charge!!!
of 7.
[An obsession with] Listening is ... the ultimate mark of Respect.
Listening is ... the heart and soul of Engagement.
Listening is ... the heart and soul of Kindness.
Listening is ... the heart and soul of Thoughtfulness.
Listening is ... the basis for true Collaboration.
Listening is ... the basis for true Partnership.
Listening is ... a Team Sport.
Listening is ... a Developable Individual Skill.* (*Though women are far better at it than men.)
Listening is ... the basis for Community.
Listening is ... the bedrock of Joint Ventures that work.
Listening is ... the bedrock of Joint Ventures that last.
Listening is ... the core of effective Cross-functional Communication*
(*Which is in turn Attribute #1 of organizational effectiveness.)
Listening is ... the engine of superior EXECUTION.
Listening is ... the key to making the Sale.
Listening is ... the key to Keeping the Customer’s Business.
Listening is ... the engine of Network development.
Listening is ... the engine of Network maintenance.
Listening is ... the engine of Network expansion.
Listening is ... Learning.
Listening is ...the sine qua non of Renewal.
Listening is ...the sine qua non of Creativity.
Listening is ...the sine qua non of Innovation.
Listening is ... the core of taking Diverse opinions aboard.
Listening is ... Strategy.
Listening is ... Source #1 of “Value-added.”
Listening is ... Differentiator #1.
Listening is ... Profitable.*
(*The “R.O.I.” from listening is higher than from any other single activity.)
Listening underpins ... Commitment to EXCELLENCE
The power of listening is …
limitless
Read—and ponder—this list very carefully.
.
[An obsession with] Listening is ... the ultimate mark
of Respect.
Listening is ... the heart and soul of Engagement.
Listening is ... the heart and soul of Kindness.
Listening is ... the heart and soul of Thoughtfulness.
Listening is ... the basis for true Collaboration.
Listening is ... the basis for true Partnership.
Listening is ... a Team Sport.
Listening is ... a Developable Individual Skill.* (*Though women
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
are far better at it than men.)
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that last.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organizational effectiveness.)
[cont.]
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
the engine of superior EXECUTION.
the key to making the Sale.
the key to Keeping the Customer’s Business.
the engine of Network development.
the engine of Network maintenance.
the engine of Network expansion.
Social Networking’s “secret weapon.”
Learning.
the sine qua non of Renewal.
the sine qua non of Creativity.
the sine qua non of Innovation.
the core of taking Diverse opinions aboard.
Strategy.
Source #1 of “Value-added.”
Differentiator #1.
Profitable.* (*The “R.O.I.” from listening is higher than
from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE
*Listening is of the
utmost … strategic
importance!
*Listening is a proper …
core value !
*Listening is … trainable
!
*Listening is a … profession
!
This is not just an exhortation, “Hey, listen.” I’m suggesting that
listening become a pre-occupation. That it be no less than the
whole-damn-organization’s trademark.
Listen = “Profession”
= Study = practice =
evaluation =
Enterprise value
Listen!
• Listening Leaders: The Ten Golden Rules To
Listen, Lead & Succeed—Lyman Steil and
Richard Bommelje
• The Zen of Listening—Rebecca Shafir
• Effective Listening Skills—Dennis Kratz and
Abby Robinson Kratz
• Are You Really Listening?—Paul Donoghue and
Mary Siegel
• Active Listening: Improve Your Ability to Listen
and Lead—Michael Hoppe
• Listening: The Forgotten Skill
—Madelyn Burley-Allen
Yes you can! That is, you can study “this stuff.”
#4A
Message:
Listening is a …
profession!
Just like becoming a professional musician. Or a neurosurgeon.
Listen = Profession = Study = practice = evaluation =
Enterprise value: "We
listen intently to
and fully engage
all with whom
we work."
Core value #1.
No kidding.
“You can make more
friends in two months by
becoming interested in
other people than you can
in two years by trying to
get other people interested
in you.” —Dale Carnegie
Another [key] byproduct of listening-engaging.
“The capacity to develop close and
enduring relationships is the mark of
a leader. Unfortunately, many leaders
of major companies believe their job
is to create the strategy, organization
structure and organizational
processes—then they just delegate
the work to be done, remaining aloof
from the people doing
the work.” —Bill George, Authentic Leadership
Listening. The key to/cornerstone of every relationship. Superior
relationships … the key to, literally, everything!
“Allied commands depend
on mutual confidence
[and this confidence]
is gained, above all
through the development
of friendships.”
—General D.D. Eisenhower,
Armchair General* (05.08)
*“Perhaps his most outstanding ability [at West Point]
was the ease with which he made friends and earned the
trust of fellow cadets who came from widely varied
backgrounds; it was a quality that would pay great
dividends during his future coalition command
Listening In effect, Eisenhower’s principal “weapon” as coalition
leader.
R.O.I.R.
Return On
Investment In
Relationships
The idea here is to think directly about your “investment” in
relationship building and maintenance.
The Real World’s “Little” Rule Book
Ben/tea
Norm/tea
DDE/make friends
WFBuckley/make friends-help friends
Gust/Suck down
Charlie/poker pal-BOF
Edward VII/dance-flatter-mingle-learn the language
Vladimir Putin/birthday party of outgroup guy’s wife
CIO/finance network
ERP installer/consult-“one line of code”
GE Energy/make friends risk assessment
GWB/check the invitation list
GHWB/T-notes
Hank/60 calls
MarkM/5K-5M
Delaware/show up
Oppy/snub Lewis Strauss
NM/smile
-$4.3T/tin ear
tp.com/Big 4-What do you think?
Women/genes
Banker/after church
Total Bloody Mess/Can they pay back the loan?
No detailed explanation forthcoming. Sorry. It is, in full, a series of
stories of “little” “relationship” things—that literally changed the
world. E.g., a whirlwind 96-hour “social” visit to Paris by King
Edward VII which paved the way to a British-French entente which
determined the outcome of World War I.
“if you don’t
listen, you don’t
sell anything.”
—Carolyn Marland
!!!
(So true.)
Questioning,
the art [and
“profession”] of.
Listening’s corollary: the Art & Practice of Asking.
Ask!
• Leading with Questions: How Leaders Find the
•
•
•
•
•
Right Solutions by Knowing What to Ask
—Michael Marquardt
Smart Questions: Learn to Ask the Right
Questions for Powerful Results
—Gerald Nadler and William Chandon
The Art of Asking: Ask Better Questions,
Get Better Answers—Terry Fadem
How to Ask Great Questions
—Karen Lee-Thorp
Change Your Questions, Change Your
Life—Marilee Adams
Asking the Right Questions: A Guide to
Critical Thinking—Neil Browne and
Stuart Keeley
Again: Can be studied.
Listen! Ask!
• Listening Leaders: The Ten Golden Rules To Listen, Lead & Succeed
—Lyman Steil and Richard Bommelje
• The Zen of Listening—Rebecca Shafir
• Effective Listening Skills—Dennis Kratz and Abby Robinson Kratz
• Are You Really Listening?—Paul Donoghue and Mary Siegel
• Active Listening: Improve Your Ability to Listen and Lead
—Michael Hoppe
• Listening: The Forgotten Skill—Madelyn Burley-Allen
• Leading with Questions: How Leaders Find the Right Solutions by
Knowing What to Ask—Michael Marquardt
• Smart Questions: Learn to Ask the Right Questions for Powerful
Results—Gerald Nadler and William Chandon
• The Art of Asking: Ask Better Questions, Get Better Answers
—Terry Fadem
• How to Ask Great Questions—Karen Lee-Thorp
• Change Your Questions, Change Your Life—Marilee Adams
• Asking the Right Questions: A Guide to Critical Thinking—Neil Browne and
Stuart Keeley
four most
important
words in any
“The
organization are …
Ta da …
The four most important words in any organization
are …
“What do
you
think?”
Source: courtesy Dave Wheeler, posted at tompeters.com
“WDYT” =
Certification of me as
a person of
Importance whose
opinion is valued.
Biiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiig deal. (Remember, The
Little BIG Things.)
Tomorrow: How
many times will you
“ask the WDYT
question”?
[Count!]
[Practice
makes better!] [This is a
STRATEGIC skill!]
Not to be left to chance. Yup … can be
MEASURED.
From Enemy/Reluctant User
to Champion/Savior/Owner:
“one line
of code!” Axiom
The
Ask my opinion of a system revision. I give you an earful. You go back and
make a couple of tiny changes [“a line of code”] to accommodate me. Now
I “own” the thing—and become a champion rather than a resistor. More or
less ... GUARANTEED … to work.
“The deepest
human need is
the … need to be
appreciated.”
—William James
(And usually
neglected or half-hearted.)
Once again. ALL POWERFUL.
“Thank you” lingers on:
10
years
3M exec retires. At going away party, someone comes up to him,
very emotional, to thank the exec for a thank you note he’d sent 10
years ago. (I’ve got a ton of similar stories.)
Tomorrow: How many
times will you mange to
blurt out, “Thank you”?
[Count ’em!]
[Practice
makes better!* *The engineer from
Manchester.]] [This is a STRATEGIC skill!]
Not a casual idea.
Measure it.
*appreciation is of the
utmost … strategic
importance!
*appreciation is a proper …
core value !
*appreciation is … trainable
!
*appreciation is a … profession
!
One more time. A topic worthy of serious “professional” study.
And the answer is ….
otis
Teacher gives a science exam. Students prepped—know what’s
coming. Quiet in the room. Then din. Students complaining. “Will
the last question count?” Teacher: “Most definitely.” And the last
“What is the first name of
the person who cleans the room
after class?”
question is:
(Hint: Otis.)
Teacher: “As you go forward in life, you will meet many people. All
of them are important. Each one deserves your attention and
respect …”
Source: Deborah Norville, The Power of Respect.
“It was much later that I realized
Dad’s secret. He gained respect by
giving it. He talked and listened to
the fourth-grade kids in Spring Valley
who shined shoes the same way he
talked and listened to a bishop or a
He was
seriously interested in
who you were and what
you had to say.”
college president.
—Sara Lawrence-Lightfoot, Respect
Self explanatory. Usually honored in the breach.
It helps to know people in …
high
places!
Conventional wisdom. Not silly …
It helps
more
to know people in …
“Low”
places!
My “wisdom.” “Low” is where the …
real work … is done.
???????
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
high places!”
or
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
low
places!”
TP on Charlie Wilson’s War, by George Crile: Make friends by the
bushel with those several levels down and with various disenfranchised
“He had become
something of a legend with these people
who manned the underbelly of the Agency
[CIA].” Eg, Gust apparently knew every executive secretary by
groups. Gust Avrakotos’ strategy:
name—and had helped many of them out with personal or professional
“invisible 95%”
problems. You could almost say he had the
of the Agency working for him which allowed him to make incredible
things happen despite furious resistance from the top of a very rigid
organization. I have spoken and Blogged on this topic before, arguing
among other things that the key to sales success is “wiring” the client
organization 3 or 4 levels down—where the real work gets done. Most
would agree perhaps—but damn few make it the obsession it needs to be
to foster success. One added (big) benefit is that “those folks” are
seldom recognized, and thence the “investment” will likely yield longlasting, not transient, rewards.
The CIA go-to guy in Charlie Wilson’s War was a middle manager—
but he was able to work miracles in a rigid institution because of his
tight and extensive relationships with the organization’s
“underbelly.”
Loser:
“He’s such a
suck-up!”
Winner:
“He’s such a
suck-down.”
Maximizing “friends in low places” is a winning strategy.
C(I)>C(E)
Internal “customers” [C(I)] often more important than external
customers [C(E)]. If your whole organization is at your beck and call,
you can repeatedly work miracles for the external customer. If your
“internal customers” are peeved at you, they can torpedo your work
with your outside customers in a gazillion (or more) ways.
“Suck down for
success!” * ** *** **** ****
*“He [Gust Avrakotos] had become something of
a legend with these people who manned the
underbelly of the Agency [CIA],” from Charlie
Wilson’s War
**Getting to know “the risk guys” [GE Power]
***“Spend less time with your customer!”
C(I) > C(E)
****
*****The ATT systems sales exec
An AT&T systems sales exec started me down this path.
“I regard apologizing as the
most magical, healing,
restorative gesture human
beings can make. It is the
centerpiece of my work with
executives who want to get
better.” —Marshall Goldsmith, What Got You
Here Won’t Get You There: How Successful People Become
Even More Successful
“… most magical, healing, restorative gesture human beings can
make.” Talk about “strong language”! And Goldsmith is the
unquestioned #1 executive coach—i.e., worth paying attention to.
pause
“I regard apologizing as the
most magical, healing,
restorative gesture human
beings can make. It is the
centerpiece of my work with
executives who want to get
better.” —Marshall Goldsmith, What Got You
Here Won’t Get You There: How Successful People Become
Even More Successful
Worth re-reading.
Relationships
(of all varieties):
THERE
ONCE WAS A TIME WHEN A
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT RESULTED
IN A COMPLETE RUPTURE.
100%
I believe this is true
of the time. Most of my
personal and professional disasters could clearly have
been reversed or ameliorated with such a call.
The “three-minute call”
often-usually-invariably
leads to a strengthening
of the relationship. It not
only acts as atonement
but also paves the path for
a “better than ever”
trajectory.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*PERCEPTION IS ALL THERE IS!
Think Richard Nixon, Bill Clinton, Martha Stewart. None,
and a host like them, ever got in trouble for “the act
itself”—but instead for the cover-up.
pause
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*PERCEPTION IS ALL THERE IS!
Yup … another one worth re-reading immediately.
Potlatch.
Potlatch is the ritual of overwhelming one with gifts to
the point at which one is paralyzed. I’m not quite
suggesting that, but I am simply saying that an
“overwhelming”-“disproportionate”-“asymmetric”
response to a screw-up is more or less … ALWAYS …
warranted.
(FYI: Also central to this idea is a culture that
encourages timely truth-telling around screw-ups.)
Shit
happens. Be
prepared.
Potlatch-plus. Shit happens—to the best of us. Have
slack resources ready to react to problems before they
occur.
*effective “Repair”/Apology is of the
utmost … strategic
importance!
*effective repair is a proper …
core value !
*effective repair is …
trainable !
*effective repair is a …
profession !
Once more … a craft … a profession … a trait worthy of
study.
#8A
Comeback
[big, quick response]
>>
Perfection
Human irrationality at its best: Addressing a screw-up
brilliantly may well result in a stronger relationship than
one marked by flawless delivery but no tests of
response to adversity.
Acquire vs maintain*:
*Recession goal: Higher “market share” current customers
The economics are clear. It costs far, far more to dig up a
new customer than to maintain a current relationship—
hence justification for spending lavishly to patch a
pothole to keep a current customer happy or regain her
or his confidence.
#8B
“One of the secrets of
a long and fruitful life
is to forgive everybody
of everything every
night right before
going to bed.” —Bernard Baruch
Carrying grudges has high personal costs (wear and tear
on the psyche), and high professional costs; in the latter
case, the damage that can be done by even weak
enemies is immeasurable! So: If you’re wise you’ll
forgive and move on.
#9
“We are
thoughtful
in all we do.”
Enterprise Value:
I have come to love the word “thoughtful.” Especially in
difficult times. It is a “way to live in the world”—and I
firmly believe it can contribute directly to the bottom
line. It is a matter of trust and character and courtesy—
all three pay big dividends. (Not to mention the fact that
thoughtfulness results in a more attractive image when
one looks in the mirror or discusses what one does with
our children.)
Thoughtfulness is key to customer retention.
Thoughtfulness is key to employee recruitment
and satisfaction.
Thoughtfulness is key to brand perception.
Thoughtfulness is key to your ability to look in
the mirror —and tell your kids about your job.
“Thoughtfulness is free.”
Thoughtfulness is key to speeding things up—
it reduces friction.
Thoughtfulness is key to transparency and even
cost containment—it abets rather than stifles
truth-telling.
This I believe.
*Thoughtfulness is of the
utmost … strategic
importance!
*thoughtfulness is a proper …
core value !
*Thoughtfulness is … trainable
!
*Thoughtfulness is a … profession
!
One more time.
#9A
none!
139,380 former
patients from 225 hospitals:
Press Ganey Assoc:
none
of THE top 15 factors
determining Patient Satisfaction
referred to the patient’s health outcome
P.S. directly related to Staff Interaction
P.S. directly correlated with Employee
Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Stunning.
Patient satisfaction is almost exclusively related to the
quality of interactions with hospital staff—which in turn
is primarily caused by the quality of staffers’ interactions
with one another.
“There is a misconception that supportive interactions require
more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the
interactions themselves add nothing to the budget.
Kindness is
free.
Listening to patients or answering their
questions costs nothing. It can be argued that negative
interactions—alienating patients, being non-responsive to their
needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative,
withdrawn and less cooperative—requiring far more time
than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
Be kind.
Have happy patients.
Save $$$.
Grow market share.*
(*Griffin Hospital, Planetree Alliance.)
“Kindness
is free.”
The “Eight Courtesies”
1. Stay in touch. (MBWA.)
2. Invest in relationships. (Make friends.
Obsess.)
3. Listen. (Respect. Learn. Student. PROFESSIONAL.
4.
5.
6.
7.
8.
Sustainable Competitive Advantage #1)
Ask (Engage. Inspire. Consult. React.)
Thank (Appreciate. Acknowledge.)
Network. (“Suck down.” C(I)>C(E).)
Apologize (Unequivocal. Rectify. Over-react.
Forgive. )
Practice thoughtfulness. (Kindness is free.
This is … STRATEGIC.)
The story/this story/my story in summary form.
Big 5
1. Listen. (Respect. Learn)
2. Ask. (Solicit. Engage. Inspire.)
3. Thank. (Appreciate. Acknowledge.)
4. Apologize (Rectify. Build.)
5. Practice thoughtfulness
(A way of life. A staple of “good business.”)
Sometimes (such as short presentations) I focus “just”
on what I call “The BIG 5.”
#11
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
To do “all this stuff” is primarily a “cultural” issue. (As
Lou Gerstner found out to his dismay at IBM.)
“… it is
the
game.”
“culture of cover-up
that pervades healthcare”
“Patient Safety Event Registry” …
“looking for systemic solutions, not seeking
to fix blame on individuals except in the
Ken Kizer/VA 1997:
most egregious cases. The good news was a
thirty-fold
increase
in the number of medical
mistakes and adverse events that got reported.”
“National Center for Patient Safety Ann Arbor”
“Culture change” can be accomplished in even the least
likely places—Big Time. Mostly, hospital staffs hide
mistakes—it’s perhaps the “culture of medicine.” The
Veterans Administration hospitals
successfully attacked that culture. Reporting “incidents”
became “the thing to do”—and was rewarded. As a
result mistakes reported throughout the system
increased by a … FACTOR OF THIRTY! Armed with
buckets full of precious data, the VA became, among
other things, America’s best model of patient safety.
-fold!
Quite a lot, eh?
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
The uncommon “common courtesies”—the primary
basis for staff and customer satisfaction and retention—
and superior relationships in general. And high
profitability. And the deepest of deep
blue oceans