Tom Peters’ Excellence. Always. Breukelen/21 April 2009 To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Tom Peters’ Excellence. now. More than ever. Breukelen/21 April 2009 Conrad Hilton, at a gala celebrating his career, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer … “remember to tuck the shower curtain inside the bathtub” “Execution is strategy.” —Fred Malek MBWA Part ONE Little = 7X. 7:30A-8:00P. F12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM. “No” = 2* *Yes Bank 2,000,000 The Commerce Bank Model “every computer at commerce bank has a special red key on it that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell us about it, and if we agree, we will give you $50.’” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman Don’t like it? Don’t pay. Source: Granite Rock Co. BEGINS (and ENDS) It in the … parking lot* *Disney Source: Container Store/increase average sale per shopper (1) LAN Installation Co. (3%) “Geek Squad” (30%) (2) (3) Best Buy contracts (4) Best Buy purchases (5) Best Buy’s “brand promise” Source: Best Buy (Circuit City: fire senior, hire junior) Bag sizes = New markets: Source: PepsiCo Big carts = Source: Wal*Mart none! 139,380 former patients from 225 hospitals: Press Ganey Assoc: none of THE top 15 factors determining Patient Satisfaction referred to patient’s health outcome P.S. directly related to Staff Interaction P.P.S. directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel “Kindness is free.” “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 … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.”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 “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay “Perception is all there is” Comeback [big, quick response] >> Perfection <TGW and … >TGR [Things Gone WRONG-Things Gone RIGHT] “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage $100+ purchase/ 3-cent 2-cent National “Brand”/ lemon candy Acquire vs maintain*: Higher “market share” current customers *Recession goal: (1) Amenable to rapid experimentation/failure “free” (No bad “PR,” No $$) (2) Quick to implement/Quick to Roll out (3) Inexpensive to implement/ Roll out (4) Huge multiplier (5) An “Attitude” (6) Does not by and large require a “power position” from which to launch experiments. (1) Half-day/25 ideas (2) One week/5 experiments (3) One month/Select best 2 (4) 60-90 days/Roll out Little = “Design is everything. Everything is design.” “We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson “Power Freaks” Move Things Around! >100 feet = 100 miles Geologists + Geophysicists + A little bit of love = Oil see green = recover 20% faster Round = 2X/allx 6.5 feet Away = 6.5 feet Away = -63% “Seconds”* *Plate size, etc, first serving dish “Paint it white!” — On Hashem Akbari’s [Lawrence Livermore labs] powerful program to significantly reduce greenhouse gas emissions; using conservative reduce 44 billion tons of CO2 assumptions, it could emissions by cooling buildings, roads, entire cities (The Guardian, 0116.09) Socks = 10,000 “Broken windows”: Clean the streets, fix the broken windows, ticket the open-beer-can holders, etc, etc = Sense of order = Crime way down “Everything matters” -80% Source: Nudge, Richard Thaler and Cass Sunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airport Part TWO most significant variable in every “The sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women The Perfect Answer Jill and Jack buy slacks in black… “Forget China, India and the Internet: Economic Growth Is Driven by Women.” Source: Headline, Economist “Since 1970, women have held two out of every three new jobs created.” —FT, 10.03.2006 “Women are the majority market” —Fara Warner/The Power of the Purse “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15 Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse “We simply had stopped being relevant to women.” —Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”) “Women don’t buy They join them.” brands. EVEolution 2.6 vs. Age 3 days, baby girls 2X eye contact. “People powered”: Source: Martha Barletta, Marketing to Women “Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” —Judy Rosener, America’s Competitive Secret “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek 10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men? “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial boys in the school system. Times, 10.03.2006 “ ‘Womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006 94% of loans to … women* *Microlending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder “Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing “Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” — Marti Barletta, PrimeTime Women “One particularly puzzling category of youthobsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, What nonsense!” they’re yours for life.’ —Marti Barletta, PrimeTime Women “Marketers attempts at reaching those over 50 have been miserably No market’s motivations and needs are so poorly understood.” unsuccessful. —Peter Francese, founding publisher, American Demographics We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the we will be the Center of your universe for the next twenty-five years. We have arrived! world—and Up, Up, Up, Up the Value-added Ladder. EXCELLENCE. VALUE-ADDED LADDER. NO LESS THAN “BUSINESS ADVANTAGE.” “M” = $0 IB : $55B* M *Also HP-EDS And the “M” Stands for … ? “Systems Integrator of choice.”/BW Gerstner’s IBM: (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services* Services Corp.): $55B (*Integrated Systems Planetary Rainmaker-in-Chief! “Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” —Fortune “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008 “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” —ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) Huge: Customer Satisfaction versus Customer Success The Value-added Ladder/TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials “The business of selling is not just about matching viable It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of solutions to the customers that require them. our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale The Value-added Ladder/TRANSFORMATION Customer Success through Implemented Gamechanging Solutions* Services Goods Raw Materials *Subject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organizational Psychology) Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“CultureStrategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale Model PSF* *Professional Services Firm EXCELLENCE. VALUE-ADDED LADDER. SPELLBINDING EXPERIENCE. “SOUL THROUGH DESIGN.” All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga “Design is treated like a religion at BMW.” —Fortune “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the Design is the fundamental soul of a man-made creation.” meaning of design. —Steve Jobs “With its carefully conceived mix of colors and textures, Starbucks aromas and music, is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” of … the aesthetic imperative. … -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness “Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman Management School/ University of Toronto Hypothesis: DESIGN is the principal difference between love and hate! Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership Lisbon/New Biz: Weeks to … Minutes (!!!!) Beauty Grace Clarity Simplicity 90K in U.S.A. ICUs on any given day; 178 steps/day in ICU. 50% stays result in “serious complication” Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) **Peter Pronovost, Johns Hopkins, 2001 **Checklist, line infections **1/3rd at least one error when he started **Nurses/permission to stop procedure if doc, other not following checklist **In 1 year, 10-day line-infection rate: 11% to … 0% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) **Docs, nurses make own checklists on whatever process-procedure they choose **Within weeks, average stay in ICU down 50% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) “Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman Management School/ University of Toronto The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences via “Soul” Through Design* Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials * *Blending Beauty, Usability, Theatricality (Degree: MFA/ Master of Fine Arts, “D-school,” Cultural Anthropology) Message (?????): cannot Men design for women’s needs. Part THREE Try it. Try it. Try it ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up t. Try it. Try it. try “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play Culture of Prototyping “Effective prototyping may the most valuable core competence an be innovative organization can hope to have.” —Michael Schrage Think about It!? Innovation = Reaction to the Prototype Source: Michael Schrage “SkunkWorks”/ “ParallelUniverse” “the solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC) “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “In business, you reward people for taking risks. doesn’t work out you promote themWhen it because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” “You miss 100% of the shots you never take.” —Wayne Gretzky The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World By Amar Bhide Sustainable Innovation: Systemic. Very complex. The NECESSARY COMBINATION (very dense network) of EVERYTHING from the development of the Basic Science to numerous INTERMEDIATE Stages to Sales Recruiting and Training and Ads. Essential: Clever and AGGRESSIVE CONSUMERS* (“venturesome numerous consumption”). Path to success or failure … UNPREDICTABLE. FYI: The World is NOT FLAT. *From Transistor at Bell Labs to on-line gamers. Source: Amar Bhide, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World Sustainable Innovation: Systemic. Very complex. The COMBINATION (very dense network) of EVERYTHING Basic Science* from the to Sales Recruiting and Training PIONEER CONSUMERS (“venturesome consumption”). Path to success or failure … UNPREDICTABLE. and Ads. Essential: Clever and numerous *Of modest value [& origin mostly ENTIRE INNOVATION CHAIN is in irrelevant] unless the place and aggressively interacting-competing. Source: Amar Bhide, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World Sustainable Innovation /“Breakthrough Ideas”: (1) High # of Stages/Stageswithin Stages (1) Importance of Intermediate Stages (3) Engaged Mega-scrum of Users/Consumers as Participative/Decisive “Pull” Mechanism (eg UPS vs. FedEx) Source: Amar Bhide, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World 1913: 1960: 1980: 2000: 2007: 32%* 26% 22% 27% 26% Source: “The Future of American Power,” Fareed Zakaria, Foreign Affairs, vol 87, no. 3 *U.S. share of world output De-central-iza-tion! Enemy #1 I.C.D. Inherent/Inevitable/ Immutable Centralist Drift Note 1: Note 2: Jim Burke’s 1-word vocabulary: “No.” “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” —Brian Joffe/BIDvest “If it feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner “Best practice” = ZERO Standard Deviation “Cisco, [CEO John] Chambers argues, is the best possible model for how a global business can operate: as a distributed idea engine where leadership emerges organically, unfettered by a central command.” —”Revolution in San Jose,” Fast (Chambers: “We now have a whole pool of talent who can lead these working groups—like mini CEOs and COOs.”) (Top blog: engineering director 5 levels down) Company, Dec-Jan 08-09 Ex-ecu-tion! “Execution is strategy.” —Fred Malek “Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “Costco figured out the big, simple things and executed with total fanaticism.” —Charles Munger, Berkshire Hathaway Excellence in Execution = Deepest “Blue Ocean” Ac-counta-bil-ity! 30% MH: 80% CF: (no salesfolk) (salesfolk) 6:15A.M. DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6:15A.M. Part FOUR I am constantly asked for 'secrets' “strategies/ for surviving the recession.” I try to appear wise and informed— and parade original, sophisticated thoughts. But if you want to know what’s really going through my head, see the list that follows. Forty-four “Secrets” and “clever Strategies” For dealing with the Recession of 2008-XXXX 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You come earlier. You leave later. You work harder. You may well work for less; and, if so, you adapt to the untoward circumstances with a smile—even if it kills you inside. You volunteer to do more. You dig deep and always bring a good attitude to work. You fake it if your good attitude flags. You literally practice your "game face" in the mirror in the morning, and in the loo mid-morning. You give new meaning to the idea and intensive practice of “visible management.” 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You take better than usual care of yourself and encourage others to do the same—physical well-being determines mental well-being and response to stress. You shrug off shit that flows downhill in your direction—buy a shovel or a “pre-worn” raincoat on eBay. You try to forget about “the good old days”— nostalgia is self-destructive. You buck yourself up with the thought that “this too shall pass”—but then remind yourself that it might not pass any time soon, and so you re-dedicate yourself to making the absolute best of what you have now. 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You work the phones and then work the phones some more—and stay in touch with positively everyone. You frequently invent breaks from routine, including “weird” ones—“changeups” prevent wallowing and bring a fresh perspective. You eschew all forms of personal excess. You simplify. You sweat the details as never before. You sweat the details as never before. You sweat the details as never before. You raise to the sky and maintain at all costs the Standards of Excellence by which you unfailingly evaluate your own performance. You are maniacal when it comes to responding to even the slightest screwup. 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You find ways to be around young people and to keep young people around—they are less likely to be members of the “sky is falling” school. You learn new tricks of your trade. You remind yourself that this is not just something to be “gotten through”—it is the Final Exam of character. You network like a demon. You network inside the company—get to know more of the folks who “do the real work.” You network outside the company—get to know more of the folks who “do the real work” in vendor-customer outfits. 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You thank others by the truckload if good things happen—and take the heat yourself if bad things happen. You behave kindly, but you don't sugarcoat or hide the truth--humans are startlingly resilient and rumors are the real killers. You treat small successes as if they were Superbowl victories—and celebrate and commend accordingly. You shrug off the losses (ignoring what's going on in your tummy), and get back on the horse and immediately try again. You avoid negative people to the extent you can—pollution kills. You eventually read the gloom-sprayers the riot act. 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXX You give new meaning to the word "thoughtful.“ You don’t put limits on the flowers budget— “bright and colorful” works marvels. You redouble, re-triple your efforts to "walk in your customer's shoes." (Especially if the shoes smell.) You mind your manners—and accept others’ lack of manners in the face of their strains. You are kind to all mankind. You keep your shoes shined. You leave the blame game at the office door. You call out the congenital politicians in no uncertain terms. You become a paragon of personal accountability. And then you pray. Skip the map! “Mapping your competitive position” or … The “Have you …” 50 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.) 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps? 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically you can do to remove a hurdle? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.) 13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a milestone fanatic?) 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly reward the telling of difficult truths.) 15. Have you installed in your tenure a very comprehensive customer satisfaction scheme for all internal customers? (With major consequences for hitting or missing the mark.) 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external customers? 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the next eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action? 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations? 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next fourteen days? 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”? 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure? 23. Have you learned the names of the children of everyone who reports to you? (If not, you have six months to fix it.) 24. Have you taken in the last month an interesting-weird outsider to lunch? 25. Have you in the last month invited an interesting-weird outsider to sit in on an important meeting? 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc? 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”? 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation— restaurant, car wash, etc? (And then discussed the relevance to your work.) 29. Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.) 30. Have you in the last two months had a presentation to the group by a “weird” outsider? 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks? 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group? 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.) 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of “best places to work”? 36. Have you in the last month approved a cool-different training course for one of your folks? Have you in the last month taught a front-line training course? 37. 38. Have you in the last week discussed the idea of Excellence? (What it means, how to get there.) 39. Have you in the last week discussed the idea of “Wow”? (What it means, how to inject it into an ongoing “routine” project.) 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal customers? 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks? 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group? 43. Have you in the last three days considered a professional relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.) 44. Have you in the last … two hours … stopped by someone’s (two-levels “down") officeworkspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.) 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution? 47. Have you during your tenure instituted very public (visible) presentations of performance? 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the Internal Brand Promise? 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations? Part FIVE “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 They found that U.S. companies. none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times “Data drawn from the real world attest to a fact that is beyond Everything in existence tends to deteriorate.” our control: —Norberto Odebrecht, Education Through Work #4 Japan #2T USA #2T China #4 Japan #3 USA #2 China #1 Germany Reason!!! Mittelstand Jim Penman/ Jim’s Group Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group *Lived in same town all adult life *First generation that’s wealthy/ no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dullnormal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko Part SIX 1982 Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence Hard Is Soft Soft Is Hard Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships)) “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 “… it is the game.” -fold! “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” 2007 Siberia Why in the World did you go to Siberia? An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 2007 Sydney Organizations exist to serve. Period. Leaders live to serve. Period. … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence. “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX “Managing winds up being the management of the allocation of resources against tasks. Leadership My definition of a leader is someone who helps people succeed.” focuses on people. —Carol Bartz, Yahoo! The Dream Manager —Matthew Kelly “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-bestversion-of-himself or –herself. … When a question is: company forgets that it exists to serve customers, it quickly Our employees are our first customers, and our most important customers.” goes out of business. “The role of the Director is to create a space where the actors and become more than they’ve ever been before, more than they’ve dreamed of being.” actresses can —Robert Altman, Oscar acceptance speech “No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know “You have to treat your employees like customers.” —Herb Kelleher, complete answer, upon being asked his “secrets to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting) The Customer Comes Second —Hal Rosenbluth and Diane McFerrin Peters* (*no relation) “Business has to give people enriching, rewarding lives, or it's simply not worth doing.” —Richard Branson “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf Good News 2009: Leadership* is a sacred trust. *President, classroom teacher, CEO, shop foreman “The four most important words in any organization are … The four most important words in any organization are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com Tomorrow: How many times will you “ask the question”? [Count] [Practice makes better] [This is a STRATEGIC skill.] “The doctor interrupts after …* *Source: Jerome Groupman, How Doctors Think *Listening is of the utmost … strategic importance! *Listening is … trainable ! (** “Strategic listening” will be a core course in TP’s MBA/GTD curriculum!) “The deepest human need is the need to be appreciated.” William James “Thank you”: 10 years “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 #1 Resource for Troubled Times: Committed. Engaged. Growing. Respected. Trusted. Informed. People. “How to flush $500,000 down the toilet in one easy lesson!!” TP: < CAPEX > People! #1/Wegmans Brand = Talent. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP Ben Changes His BHAG!* *Big Hairy Audacious Goal/Jim Collins Profitable “We are thoughtful in all we do.” 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. “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 #1. Strategic. Priority. Period. “Development can help great but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.” — people be even better— Paul Russell, Director, Leadership & Development, Google the most important aspect of business “In short, hiring is and yet remains woefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, Geoff Smart and Randy Street #1 cause of Dis-satisfaction? Employee retention & satisfaction: Overwhelmingly, based on the firstline manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently 2/year = legacy. ‘do’ “Leaders people. Period.” —Anon. “Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Rob McEwen/CEO/ Goldcorp Inc./ Red Lake gold Source: Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams “The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07 “In Blackburn, olds four-year- are making podcasts. In Suffolk, the sometimes tedious and impractical ritual of morning Assembly has been replaced in one school by a news video compiled by pupils; posting it on YouTube means parents can watch as well—and they do. … Learners at all stages and ages, from all over the world, are downloading free tutorials while they replenish their iPods, courtesy of iTunes U. … Source: The Guardian, 0113.09, “Resource 2009,” a preview of BETT 2009 “Normal” = “o for 800” All You Need to Know About “Sources of Innovation”: Angry people! [angry with the status quo] “The Bottleneck Is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma: At the top!” — Gary Hamel/Harvard Business Review We are the company we keep Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board “You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox The “We are what we eat” axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” The “We are what we eat” “Hang out with ‘cool’ and thou shalT become more cool. Hang out with ‘dull’ and thou shalT become more dull. Period.” Axiom II: “[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to others’ inventions at least half the time. developing One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” —Fortune Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!* *Inspired by Hummingbird “How do dominant companies lose their position? Two- thirds of the time, they pick the wrong competitor to worry about.” —Don Listwin, CEO, Openwave Systems/WSJ Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears …. Kmart Xerox …. Kodak, IBM Benchmarking, Perils of … “The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.” —Mark Twain “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson “Freak Fridays” —once a month invite somebody interesting, in any field, to have lunch with your gang “We are crazy. We should do something when people say it is If people say something is ‘good’, it means someone else is already doing it.” ‘crazy.’ —Hajime Mitarai, Canon “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith “What is your most marked characteristic?” Vanity Fair: Mike Bloomberg: “Curiosity.” “You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird”/ “Profound”/ “Wow”/“Game- changer” Scale? The quality and quantity and imaginativeness of innovation shall be the same in all functions —e.g., in HR and Iron Innovation Equality Law: purchasing as much as in marketing or product development. -C +R&D X =XFX* *Excellence = Cross-functional Excellence Never waste a lunch! ???? % XF lunches* *Measure! (Way) Underutilized Lever Space! Space! Space! Space! The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”* *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.com 1. It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word.) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy. 6. Project managers rule!! Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever.) 7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works— the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch. 8. “XF work” is the direct work of leaders! 9. “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise. 11. All functions are created equal! All functions contribute equally! All = All. 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam! 13. We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screwups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver. 14. We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part (function, level) of the Client’s organization. We pay special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at the “coalface.” 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation. 16. We use the word “partner” until we want to barf! (Words matter! A lot!) 17. We use the word “team” until we want to barf. (Words matter! A lot!) 18. We use the word “us” until we want to barf. (Words matter! A lot!) 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits. 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it.) 21. All (almost all) rewards are team rewards. 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits. 23. WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPS. 24. WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything.) (Losing, like winning, is a team affair.) 25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. 26. “Women rule.” Women are simply better at the XF communications stuff—less power obsessed, less hierarchically inclined, more group-team oriented. 27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair. 28. We are our XF Teams! XF project teams are how we get things done. 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence. 30. We routinely attempt to unearth and then reward “small gestures” of XF co-operation. 31. We invite Functional Bigwigs to our XF project team reviews. 32. We insist on Client team participation—from all functions of the Client organization. 33. An “Open talent market” helps make the projects “silo-free.” People want in on the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. 35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit Removal Officer. That is, some kind of formal watchdog whose role in life is to make cross-functionality work, and I.D. those who don’t get with the program. 36. Huge (H-U-G-E) co-operation bonuses. Senior team members who conspicuously shine in the “working together” bit are rewarded Big Time. (A million bucks in one case I know—and a non-cooperating very senior was sacked.) 37. Get physical!! “Co-location” is the most powerful “culture changer. Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash. 38. Ad hoc. To improve the new “X-functional Culture,” little XF teams should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.” 39. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been pro-active on the XF dimension. 40. Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their evaluation. 41. Demand XF experience for, especially, senior jobs. The military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as natural as breathing. 43. “Get ‘em out with the customer.” Rarely does the accountant or bench scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences.” One learns quickly that the customer is not interested in our in-house turf battles! 44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4?) ought to be part of the resolution. 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement?) 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement.” 47. Promotions. Every promotion, no exceptions, should put XF Excellence in the top 5 (3?) evaluation criteria. 48. Pick partners based on their “co-operation proclivity.” Everyone must be on board if “this thing” is going to work; hence every vendor, among others, should be formally evaluated on their commitment to XF transparency—e.g., can we access anyone at any level in any function of their organization without bureaucratic barriers? 49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with open arms.” 50. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every opportunity. Become a relentless bore! 51. Excellence! There is a state of XF Excellence per se. Talk about it. Pursue it. Aspire to nothing less. L(+21) = L(-21) Leadership(21A.D.) = Leadership(21B.C.) Tea Power Give good tea! “In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a Franklin’s miracle was that armed only with his canny personal charm and reputation as a scientist and philosopher, he was able to cajole a wary French government into lending the fledgling American nation an enormous fortune. … The enduring image of Franklin in Paris tends simple brown suit and a fur cap. … to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue affairs When Adams joined Franklin in Paris in 1779, he was scandalized by the late hours and French lifestyle his colleague had adopted, says [Stacy Schiff, in A Great Improvisation] Adams was clueless that it was through the dropped hints and seemingly offhand remarks at these salons that so much of French diplomacy was conducted. … Like the Beatles arriving in America, Franklin aroused a fervor—his of state as rigorously as John Adams. face appeared on prints, teacups and chamber pots. The extraordinary popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could ignore the enthuisiasm that had won over both the nobility and the bourgeoisie. …” Source: “In Paris, Taking the Salons By Srorm: How the Canny Ben Franklin Talked the French into Forming a Crucial Alliance,” U.S. News & World Report, 0707.08 “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 Ike: An American Hero, Michael Korda/pp268-371: “infectious grin and great charm” “nice face” “grin that was to become so famous” “got along famously” “goodwill was spontaneous and easily recognizable” “good impression that Ike had made in six weeks” [newcomer junior general to supreme commander, Torch; Marshall-ADM King-Roosevelt-Churchill-British “least rank-conscious of generals” “Men were happy to serve under Ike, even British admirals and generals who might easily have raised objections. His sincerity and lack of ceremony made it difficult, even impossible, to refuse him, and enabled him very rapidly to pull a team together …” “Ike was gregarious, rarely had anything bad to say about anyone, and, on the surface at least, was relaxed and good natured.” “Whereas Ike’s good humor was genuine, unaffected, and affectionate, Monty’s [Field Marshall Montgomery] was cruel and mocking and always carried a sting” Chiefs of Staff] “Mandela, a model host [in his prison hospital room] smiled grandly, put [Justice Minister Kobie] Coetzee at his ease, and almost immediately, to their quietly contained surprise, prisoner and jailer found themselves chatting amiably. … [It had mostly] to do with body language, with the impact Mandela’s manner had on people he met. First there was his erect posture. Then there was the way he shook hands. The effect was both regal and intimidating, were it not for Mandela’s warm gaze and his big, easy smile. … Coetzee was surprised by Mandela’s willingness to talk in Afrikaans, his knowledge of Afrikaans history.” Coetzee: “He was a born leader. And he was affable. He was obviously well liked by the hospital staff and yet he was respected even though they knew he was a prisoner.” Source: John Carlin, Playing the Enemy: Nelson Mandela and the Game that Made a Nation. (Mandela meets surreptitiously with justice minister after decades in prison—and turns on the charm) “eighty percent of success is showing up.” —Woody Allen 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 Eddie VII/dance-flatter-mingle-learn the language Vlad/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? R.O.I.R. Return On Investment In Relationships “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 “What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table “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 Successfu. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS! 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. “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay Hard Is Soft Soft Is Hard #1 Trait … “I am a dispenser of enthusiasm.” —Ben Zander “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “A leader is a dealer in hope.” —Napoleon (+TP’s writing room pics) #1 Truthteller … You = Your calendar* *Calendars never lie “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “Dennis, you need a … ‘To-don’t ’ List !” “The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know “You must be the change you wish to see in the world.” Gandhi “To develop others, start with yourself.” —Marshall Goldsmith “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore (Strategy + Business #45) “Do one thing every day that scares you.” —Eleanor Roosevelt Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation! “Insanely Great” “Radically thrilling” BMW Single greatest act of pure imagination The 19 Es of Excellence If Not Excellence, What? If Not Excellence Now, When? The “19 Es” of Excellence Enthusiasm. (Be an irresistible force of nature!) Energy. (Be fire! Light fires!) Exuberance. (Vibrate—cause earthquakes!) Execution. (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!”) Empowerment. (Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!) Edginess. (Perpetually dancing at the frontier, and a little or a lot beyond.) Enraged. (Determined to challenge & change the status quo!) Engaged. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Electronic. (Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!) Encompassing. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!) Emotion. (The alpha. The omega. The essence of leadership. The essence of sales. Empathy. The essence of marketing. The essence. Period. Acknowledge it.) (Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!) Experience. (Life is theater! Make every activity-contact memorable! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Eliminate. (Keep it simple!) Errorprone. (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!) Evenhanded. Expectations. Eudaimonia. Excellence. (Straight as an arrow! Fair to a fault! Honest as Abe!) (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!) (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.) (The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?) Excellence. Always. “Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) The Heart of Business Strategy: 48 Things That Matter We usually think of business strategy as some sort of aspirational market positioning statement. Doubtless that’s part of it. But I believe that the number one “strategic strength” is excellence in execution and systemic relationships (i.e., with everyone we come in contact with). Hence I offer the following 48 pieces of advice in creating a winning “strategy” that is inherently sustainable. “Thank you.” Minimum several times a day. Measure it. “Thank you” to everyone even peripherally involved in some activity—especially those “deep in the hierarchy.” Smile. Work on it. Apologize. Even if “they” are “mostly” to blame. Jump all over those who play the “blame game.” Hire enthusiasm. Low enthusiasm. No hire. Any job. Hire optimists. Everywhere. (“Positive outlook on life,” not mindless optimism.) Hiring: Would you like to go to lunch with him-her. 100% of jobs. Hire for good manners. Do not reject “trouble makers”—that is those who are uncomfortable with the status quo. Expose all would-be hires to something unexpected-weird. Observe their reaction. Overwhelm response to even the smallest screwups. Become a student of all you will meet with. Big time. Hang out with interesting new people. Measure it. Lunch with folks in other functions. Measure it. Listen. Hear. Become a serious student of listening-hearing. Work on everyone’s listening skills. Practice. Become a student of information extractioninterviewing. Become a student of presentation giving. Formal. Short and spontaneous. Incredible care in 1st line supervisor selection. World’s best training for 1st line supervisors. Construct small leadership opportunities for junior people within days of starting on the job. Insane care in all promotion decisions. Promote “people people” for all managerial jobs. Finance-logistics-R&D as much as, say, sales. Hire-promote for demonstrated curiosity. Check their past commitment to continuous learning. Small “d” diversity. Rich mixes for any and all teams. Hire women. Roughly 50% women on exec team. Exec team “looks like” customer population, actual and desired. Focus on creating products for and selling to women. Focus on creating products for and selling to boomers-geezers. Work on first and last impressions. Walls display tomorrow’s aspirations, not yesterday’s accomplishments. Simplify systems. Constantly. Insist that almost all material be covered by a 1-page summary. Absolutely no longer. Practice decency. Add “We are thoughtful in all we do” to corporate values list. Number 1 force for customer loyalty, employee satisfaction. Make some form of employee growth (for all) a formal part of values set. Above customer satisfaction. Steal from RE/MAX: “We are a life success company.” Flowers. Celebrate “small wins.” Often. Perhaps a “small win of the day.” Manage your calendar religiously: Does it accurately reflect your espoused priorities? Use a “calendar friend” who’s not very friendly to help you with this. Review your calendar: Work assiduously and mercilessly on your “To don’ts.”—stuff that distracts. Bosses, especially near the top: Formally cultivate one advisor whose role is to tell you the truth. Commit to Excellence. Talk up Excellence. Put “Excellence in all we do” in the values set. Measure everyone on demonstrated commitment to Excellence.