The 6H "Theory of Everything."

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To appreciate
this presentation [and insure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Larry Janesky
Rocks …
*Basement Systems Inc.
(Seymour CT)
*Dry Basement Science
(115,000!)
*1990: $0; 2003: $13M;
2008:
$62,000,000
The Red
Carpet
Store
(Joel Resnick/Flemington NJ)
“agile creatures darting
between the legs of the
multinational monsters"
Source: Bloomberg BusinessWeek on the German …
MITTELSTAND
“Be the best.
It’s the only
market that’s
not crowded.”
From: Retail Superstars: Inside the 25 Best
Independent Stores in America, George Whalin
“Gurugate”
Big companies!
Public companies!
“Cool” industries!
Famous CEOs!
*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
Excellence:
6H
The
“Theory
of Everything”
2010 Comerica Business Forum
Dallas/13 October
Houston/14 October
(Slides at tompeters.com)
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
Conrad Hilton, at a gala
celebrating his career,
“What was the
most important lesson
you’ve learned in your
long and distinguished
career?” His immediate
was asked,
answer …
“remember
to tuck the
shower curtain
inside the
bathtub”
“In real life, strategy
is actually very
straightforward. Pick
a general direction
and implement
like hell”
—Jack Welch
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
MBWA
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
“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.”
much word for word,
“It suddenly
occurred to me
that in the space
of two or three
hours …
“It suddenly occurred to me that in the space
he
never talked
about cars.”
of two or three hours …
—Les Wexner
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret 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)
"If you want staff to
give great service,
give great service to
staff."
—Ari Weinzweig, Zingerman's
Zabar’s
Parking
Garage*
*Retail Superstars: Inside the 25 Best Independent Stores in America
Jungle Jim’s International Market,
Fairfield, Ohio: “An adventure in ‘shoppertainment,’
as Jungle Jim’s call it, begins in the parking lot and goes
on to 1,600 cheeses and, yes, 1,400 varieties of hot
sauce —not to mention 12,000 wines priced from $8 to
$8,000 a bottle; all this is brought to you by 4,000
vendors. Customers from every corner of the globe.”
Bronner’s Christmas Wonderland,
Frankenmuth, Michigan, pop 5,000: 98,000-
square-foot “shop” features the likes of 6,000 Christmas
ornaments, 50,000 trims, and anything else you can name
if it pertains to Christmas.
Virtual tour: www.retailsuperstars.com
… 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.
Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.
Hence, our job as leaders—the alpha and the omega and
everything in between—is abetting the sustained growth and
success and engagement and enthusiasm and commitment to
Excellence of those, one at a time, who directly or indirectly
serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth and
Development and Success and Aspiration to Excellence
business.”
“We” [leaders] only grow when “they” [each and every one of our colleagues] are
growing.
“We” [leaders] only succeed when “they” [each and every one of our colleagues]
are succeeding.
“We” [leaders] only energetically march toward Excellence when
“they” [each and every one of our colleagues] are energetically marching
toward Excellence.
Period.
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
Wegmans.
Source: Container Store/increase average sale per shopper
If the regimental commander lost most of
his 2nd lieutenants and 1st lieutenants
and captains and majors, it would be a
If he lost his
sergeants it
would be a
catastrophe.
tragedy.
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay,
American Statesman (1777-1852)
K=R=P
Kindness = Repeat business = Profit.
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.”
Source: Planetree Alliance/Griffin Hospital
K = R = P/Kindness = Repeat business = Profit/Kindness:
Kind.
Thoughtful.
Decent.
Caring.
Attentive.
Engaged.
Listens well/obsessively.
Appreciative.
Open.
Visible.
Honest.
Responsive.
On time all the time.
Apologizes with dispatch for screwups.
“Over”-reacts to screwups of any magnitude.
“Professional” in all dealings.
Optimistic.
Understand that kindness to staff breeds kindness to others/outsiders.
Applies throughout the “supply chain.”
Applies to 100% of customer’s staff.
Explicit part of values statement.
Basis for evaluation of 100% of our staff.
/80*
*Post-interview “Thank you” notes
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I
clean your
glasses,
sir?”
<TGW
and …
>TGR
[Things Gone WRONG-Things Gone RIGHT]
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
seconds
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
/45
“We have a
strategic plan.
It’s called doing
things.”
—Herb Kelleher
READY.
FIRE!
AIM.
“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
In Search of Excellence : 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
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
Zappos 10 Corporate Values
Deliver
“WOW!”
through service.
Embrace and drive change.
Create fun and a little weirdness.
Be adventurous, creative, and open-minded.
Pursue growth and learning.
Build open and honest relationships with
communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined.
Be humble.
Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
All you need to know …
Hilton
Howard
Herb
Henry
Herb/Henry
Hsieh
The
6H
“Theory of Everything”!
**Sweat the Details!
**Stay in Touch!
**It’s All About the People!
**Kindness Pays!
**Action Rules!
**Wow!
EXCELLENCE. Always.
If Not EXCELLENCE, What?
If Not EXCELLENCE Now, When?
#5: The
Memories That
Matter.
The Memories That Matter
The people you developed who went on to stellar
accomplishments inside or outside the company.
The (no more than) two or three people you developed who went on to
create stellar institutions of their own.
The long shots (people with “a certain something”) you bet on who
surprised themselves—and your peers.
The people of all stripes who 2/5/10/20 years later say
“You made a difference in my life,” “Your belief in me
changed everything.”
The sort of/character of people you hired in general. (And the bad
apples you chucked out despite some stellar traits.)
A handful of projects (a half dozen at most) you doggedly pursued that
still make you smile and which fundamentally changed the way
things are done inside or outside the company/industry.
The supercharged camaraderie of a handful of Great Teams aiming to
“change the world.”
The Memories That Matter
Belly laughs at some of the stupid-insane things you and your mates
tried.
Less than a closet full of “I should have …”
A frighteningly consistent record of having invariably
said, “Go for it!”
Not intervening in the face of considerable loss—recognizing that to
develop top talent means tolerating failures and allowing the
person who screwed up to work their own way through and out of
their self-created mess.
Dealing with one or more crises with particular/memorable aplomb.
CIVILITY
Demanding …
… regardless of circumstances.
Turning around one or two or so truly dreadful situations—and
watching almost everyone involved rise to the occasion (often to
their own surprise) and acquire a renewed sense of purpose in the
process.
Leaving something behind of demonstrable-lasting worth. (On short as
well as long assignments.)
The Memories That Matter
Having almost always (99% of the time) put “Quality” and “Excellence”
ahead of “Quantity.” (At times an unpopular approach.)
A few “critical” instances where you stopped short and could have
“done more”—but to have done so would have compromised your and
your team’s character and integrity.
A sense of time well and honorably spent.
The expression of “simple” human kindness and consideration—no
matter how harried you may be/may have been.
Understood that your demeanor/expression of character always sets
the tone—especially in difficult situations.
Never (rarely) let your external expression of enthusiasm/
determination flag—the rougher the times, the more your expressed
energy and bedrock optimism and sense of humor showed.
The respect of your peers.
A stoic unwillingness to badmouth others—even in private.
The Memories That Matter
An invariant creed: When something goes amiss, “The buck stops with
me”; when something goes right, it was their doing, not yours.
A Mandela-like “naïve” belief that others will rise to the
occasion if given the opportunity.
A reputation for eschewing the “trappings of power.” (Strong selfmanagement of tendencies toward arrogance or dismissiveness.)
Intense, even “driven” … but not to the point of being careless of others
in the process of forging ahead.
Willing time and again to be surprised by ways of doing things that are
inconsistent with your “certain hypotheses.”
Humility in the face of others, at every level, who know
more than you about “the way things really are.”
Having bitten your tongue on a thousand occasions—and listened, really
really listened. (And been constantly delighted when, as a result, you
invariably learned something new and invariably increased your
connection with the speaker.)
The Memories That Matter
Unalloyed pleasure in being informed of the fallaciousness of your
beliefs by someone 15 years your junior and several rungs below you
on the hierarchical ladder.
Selflessness. (A sterling reputation as “a guy always willing to help out
with alacrity despite personal cost.”)
As thoughtful and respectful, or more so, toward thine “enemies” as
toward friends and supporters.
Always and relentlessly put at the top of your list/any list being first
“of service”
and foremost
to your internal and external
constituents. (Employees/Peers/Customers/Vendors/Community.)
Treated the term “servant leadership” as holy writ. (And “preached”
“servant leadership” to others—new “non-managerial” hire or old
pro, age 18 or 48.)
The Memories That Matter
Created the sort of workplaces you’d like your kids to inhabit.
(Explicitly conscious of this “Would I want my kids to work here?”
litmus test.)
A “certifiable” “nut” about quality and safety and integrity. (More or
less regardless of any costs.)
A notable few circumstances where you resigned rather than
compromise your bedrock beliefs.
Perfectionism just short of the paralyzing variety.
A self- and relentlessly enforced group standard of
“EXCELLENCE-in-all-we-do”/“EXCELLENCE in our
behavior toward one another.”
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