Conrad Hilton, at a gala celebrating his career, was asked … The “3H Theory of Everything” All you need to know … All you need to know … Hilton Howard Herb All you need to know … Hilton Howard Herb 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” is “Execution strategy.” —Fred Malek “In real life, strategy is actually very straightforward. Pick a general direction and implement like hell” —Jack Welch “The art of war does not require complicated maneuvers; the simplest are the best and common sense is fundamental. From which one might wonder how it is generals make blunders; it is because they try to be clever.” —Napoleon Internal organizational excellence = Deepest “Blue Ocean” All you need to know … Hilton Howard Herb All you need to know … Hilton Howard Herb “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) All you need to know … Hilton Howard Herb 3H: Hilton, Howard, Herb **Sweat the details! **Stay in touch! **It’s all about the people! Leader’s oath of office Definition of a boss/supervisor/ Cannot Do the Work That Needs to Be Done leader: ‘do’ “Leaders people. Period.” —Anon. 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. Leadership is a sacred trust.* *President, classroom teacher, CEO, shop foreman Excellence. Service. Period. “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) EXCELLENCE. Always. If not EXCELLENCE, what? If not EXCELLENCE now, when? EXCELLENCE is not an "aspiration." EXCELLENCE is not a "journey." EXCELLENCE is the next five minutes. Organizations exist to SERVE. Period. Leaders exist to SERVE. Period. SERVICE is a beautiful word. SERVICE is character, community, commitment. (And profit.) SERVICE is a beautiful word. SERVICE is not "Wow." SERVICE is not "raving fans.“ SERVICE is not "a great experience." Service is "just" that—SERVICE. More than one route forward 14,000 20,000 14,000 20,000 14,000/eBay 20,000/Amazon 30/Craigslist 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. Michelangelo “Insanely Great” Steve Jobs “Radically thrilling” BMW “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 “You do not merely want to be You want to be considered the only ones who do what you do.” the best of the best. —Jerry Garcia Tom Peters’ Excellence. Always. AL BUSTAN PALACE Muscat/03 August 2010 Part ONE Little = *Thank you, Mr. Prime Minister 7X. 7:30A-8:00P. F12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM. “No” = 2* *Yes Bank 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 Supergrowth Business in a No-growth Industry, Vernon Hill & Bob Andelman Don’t like it? Don’t pay. Source: Graniterock Co. BEGINS (and ENDS) It in the … parking lot* *Disney Big carts = Source: Wal*Mart Bag sizes = New markets: Source: PepsiCo “Power Freaks” Move Things Around! >100 feet = 100 miles Geologists + Geophysicists + A little bit of love = Oil XFX = #1* ** *Cross-functional eXcellence **Execution, Innovation, Speed <TGW and … >TGR [Things Gone WRONG-Things Gone RIGHT] 2-cent candy “May I clean your glasses, sir?”* *Kingfisher Air Griffin: Music in the parking lot; professional musicians in the lobby (7/week, 3-4hrs/day) ; 5 pianos volunteers (120-140 hrs arts & entertainment per month). Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel ; 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 “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 “Kindness is free.” The “krp Theory of Everything” K=R=P Kindness = Repeat business = Profit. 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. K=R=P Kindness = Repeat business = Profit. Equations/Expanded: X=S=P eXcellence = Satisfied customers = Profit X + K = R = P+ eXcellence + Kindness = Repeat business = Profit+ X + K + W = R + N = P++ eXcellence + Kindness + Wow = Repeat business + New business = Profits++ “Perception is all there is” Comeback [big, quick response] >> Perfection Acquire vs. maintain*: Higher “market share” current customers *Recession goal: THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS! Potlatch. “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 (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. Up, Up, Up, Up the Value-added Ladder. The Value-added Ladder Services Goods Raw Materials The Value-added Ladder Scintillating EXPERIENCES Services Goods Raw Materials C *Chief e O* Xperience Officer 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 Hypothesis: DESIGN is the principal difference between love and hate! Not optional … O* C *Chief Design Officer “Design is everything. Everything is design.” “We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson “Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman Management School/ University of Toronto Back to the future: “beyond” micro-marketing “Forget China, India and the Internet: Economic Growth Is Driven by Women.” Source: Headline, Economist “Women are the majority market” —Fara Warner/The Power of the Purse W> 2X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09 !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder 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 “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 55+ > 55-* *“[55-plus] are more active in online finance, shopping and entertainment than those under 55?” —Forrester Research.(USA Today, 8 January 2009) Up, Up, Up, Up the Value-added Ladder. $50B+* *IBM Global Services/ “Systems integrator of choice” “Big Brown’s New Bag: UPS Traffic Manager for Corporate America” Aims to Be the —Headline/BW/2004 MasterCard Advisors Huge: Customer Satisfaction versus Customer Success The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Scintillating Experiences Services Goods Raw Materials Part TWO 1977 MBWA Managing By Wandering Around/HP 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” Internal organizational excellence = Deepest “Blue Ocean” Internal organizational excellence = “Brand inside” B(I) > B(O) “Get the strategy right, the rest will take care of itself.” MP: “Get the people , the culture and execution right—then the strategy will take care of itself.” TP: 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. “Business has to give people enriching, or it's simply not worth doing.” rewarding lives … —Richard Branson “I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. “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! “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 “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 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. Words! “Stretch” “Encourage” “Empower” vs. “Dreams come true” “Life Success Co.” “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) “The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’” “We went through the hotel and made a ... ‘consideration Instead of redoing bathrooms, dining rooms, and guest rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors. Our focus was renovation.’ totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning excited about a new day at work.” Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome. 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 “How to throw $500,000 into the sea in one easy lesson!!” TP: < CAPEX > People! Source: Container Store/increase average sale per shopper #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 and yet “In short, hiring is remains woefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, Geoff Smart and Randy Street “I can’t tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams.” —Bo Schembechler (and John Bacon), “Recruit for Character,” Bo’s Lasting Lessons “Character is more crucial now than ever, because in times of great uncertainty past performance is no indicator of future performance. Experience falls away and all you’re left with is character.” —David Rothkopf, founder of a firm that helps helps chief executives manage risks 2/year = legacy. “The ONE Question”: “In the last year [3 years, current job], three people name the … … whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people grow along the way.” #1 cause of employee Dis-satisfaction? Employee retention & satisfaction: Overwhelmingly based on the first-line manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently Capital Asset I **Selecting and training and mentoring one’s pool of frontline managers can be a “Core Competence” of surpassing strategic importance. **Put under a microscope every attribute of the cradle-tograve process of building the capability of our cadre of front-line managers. Capital Asset II I am sure you “spend time” on this. My question: Is it an OBSESSION … …worthy of the impact it has on enterprise performance? 53 = 53* ** *No “bit players” **6B+ = 6B+ Part THREE 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 idea 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 FOUR “The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think seconds [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 If you agree with the above, shouldn’t listening be ... a Core Value? If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* (*“We are Effective Listeners— we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”) If you agree, shouldn’t listening If you agree, shouldn’t listening #1? If you agree, shouldn’t listening item” at every Meeting? If you agree, shouldn’t listening se? (Listening = Strategy.) If you agree, shouldn’t listening for in Hiring (for every job)? be ... a Core Competence? be ... Core Competence be ... an explicit “agenda be ... our Strategy—per be ... the #1 skill we look If you agree, shouldn’t listening be ... the #1 attribute we examine in our Evaluations? If you agree, shouldn’t listening be ... the #1 skill we look for in Promotion decisions? If you agree, shouldn’t listening be ... the #1 Training priority at every stage of everyone’s career—from Day #1 to Day LAST? If you agree, what are you going to do about it ... in the next 30 MINUTES? If you agree, what are you going to do about it ... at your NEXT meeting? If you agree, what are you going to do about it ... by the end of the DAY? If you agree, what are you going to do about it ... in the next 30 DAYS? If you agree, what are you going to do about it ... in the next 12 MONTHS? “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 “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 *Listening is of the utmost … strategic importance! *Listening is a proper … core value ! *Listening is … trainable ! *Listening is a … profession ! *Listening is a … profession! Listen = “Profession” = Study = practice = evaluation = Enterprise value Listen = Profession = Study = practice = evaluation = Enterprise value: "We listen intently to and fully engage all with whom we work." Questioning, the art [and “profession”] of. “Everybody lives by selling something.” —Robert Louis Stevenson Sales > Marketing “if you don’t listen, you don’t sell anything.” —Carolyn Marland four most important words in any “The 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 WDYT question”? [Count!] [Practice makes better!] [This is a STRATEGIC skill!] From Enemy/Reluctant User to Champion/Savior/Owner: “one line of code!” Axiom The “I believe that you can get everything in life you want if you will just help enough other people get what they want.” —Zig Ziglar “The deepest human need is the … need to be appreciated.” —William James “Thank you” lingers on: 10 years 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!] *appreciation is of the utmost … strategic importance! *appreciation is a proper … core value ! *appreciation is … trainable ! *appreciation is a … profession ! And the answer is …. otis #33 “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. 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. *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 ! “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 #34 “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. *Thoughtfulness is of the utmost … strategic importance! *thoughtfulness is a proper … core value ! *Thoughtfulness is … trainable ! *Thoughtfulness is a … profession ! “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay 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? #35 problem #1. Opportunity #1. X =XFX* *Excellence = Cross-functional Excellence Never waste a lunch! ???? % XF lunches* *Measure! Monthly! Part of evaluation! [The PA’s Club.] Lunch > SAP/ Oracle “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 R.O.I.R. Return On Investment In Relationships C(I) > C(E) Lunch Kudos Learning/ Presence/Presentations Facetime C(E) Transparency Awards Co-locate/Geologists-Geophysicists Time!!!!!!!!!!!!!!!!!!!!!!!!!! Motherhood (“If don’t take credit …) Staff C.Sat./Unicredit The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’” 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'être, 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 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. 450/8 Lisbon/New Biz: Weeks to … Minutes (!!!!) “One bank is currently claiming to … ‘leverage its global footprint to provide effective financial solutions for its customers by providing a gateway to diverse markets.’” —Charles Handy “I assume that it is just saying that it is there to ‘help its customers wherever they are’.” —Charles Handy 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) Beauty. Grace. Clarity. Simplicity. 3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is how fast a culture can be torn apart,” 3M lead scientist; “In an innovation economy, [6 Sigma] is no longer a cure all”/BW) “Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been washed for the third time, the stone planters and the trees are well sprinkled with water, moss and lichens are shining with a fresh verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Okakura, The Book of Tea “What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Okakura, The Book of Tea Part FIVE ry it. Try it. Try it ry it. Try it. Screw i p. Try it. Try it. Try Try it. Try it. Try i ry it. Screw it up. it ry it. Try it. try it “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 “Experiment fearlessly” Source: BusinessWeek, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 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 #39 “Fail . Forward. Fast.” High Tech CEO, Pennsylvania Read This! Richard Farson Whoever Makes the Most Mistakes Wins: The Paradox of Innovation & Ralph Keyes: “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “In business, you reward people for taking risks. When it doesn’t work out you promote them-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 (BW/0625.07) “It is not enough to ‘tolerate’ failure— you must ‘celebrate’ failure.” —Richard Farson (Whoever Makes the Most Mistakes Wins) “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “No man ever became great except through many and great mistakes.” —William Gladstone #40 1/4,000 “You miss 100% of the shots you never take.” —Wayne Gretzky BLAME NOBODY. EXPECT NOTHING. DO SOMETHING. Source: Locker room sign posted by football coach Bill Parcells #41 We are the company we keep “You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox 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 “[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time. One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” —Fortune 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’ ” “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith “Freak Fridays” —once a month invite somebody interesting, in any field, to have lunch with your gang “Normal” = “o for 800” "The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” —GB Shaw, Man and Superman: The Revolutionists' Handbook. “The Bottleneck … “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 “d”iversity “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 “What is your most marked characteristic?” Vanity Fair: Mike Bloomberg: “Curiosity.” “Do one thing every day that scares you.” —Eleanor Roosevelt “The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07 Rob McEwen/CEO/ Goldcorp Inc./ Red Lake gold Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams Source: All You Need to Know About “Sources of Innovation” … All You Need to Know About “Sources of Innovation”: Angry people! [angry with the status quo] F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats) Iron Innovation Equality Law: The quality and quantity and imaginativeness of innovation shall be the same in all functions —e.g., in HR and purchasing as much as in marketing or product development.* *This is … Strategic! 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? Inno16 The INNO16: Innovation’s “Sixteen Imperatives” (1) Try it. (“1/40”: “Whoever tries the most stuff wins.”) (“R.F.A.”/Ready. Fire. Aim.) (2) Celebrate failure. “Whoever makes the most mistakes wins.” “Fail. Fail again. Fail better.” “Reward excellent failures. Punish mediocre successes.” (3) Decentralize. (Organic growth bias.) (4) Parallel Universe. 1% “play money” Internal VC fund “Skunkworks” (5) “We are what we eat”: We are who we spend time with. (6) “d”iversity. (Every dimension.) (7) Co-invent with (all) outsiders. (Exploit electronic communities.) The INNO16: Innovation’s “Sixteen Imperatives” (Cont.) (8) “Strategic” Listening = Core competence. (9) Hire and promote 100% innovators. Innovator’s characteristic = Angry. CEO=Innovation “bias.” (“You must be …”/Gandhi) (10) XFX/Cross-functional Excellence!! (#1?) (11) Chief Complexity/Systems Destruction Officer. (12) R&D Equality. All functions equal. (VA centerpiece./All staff VA-meisters.) (13) Top quartile R&D spending (So, too, our partners.) (14) All projects (Must have something new.) (“WOW standard.”) (15) Fun! (Enjoy breaking the rules.) (16) All businesses!! De-central-iza-tion! “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” —Brian Joffe/BIDvest “If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner Enemy #1 I.C.D. Inherent/Inevitable/ Immutable Centralist Drift Note 1: Note 2: Jim Burke’s 1-word vocabulary: “No.” “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker volcanic struggle! Can’t Live Without ‘em, Can’t live With ‘em Office A, Executive Row: C.I.O. C.S.D.O./ Chief Systems Destruction Officer Office B (Across the hall): * (007 License) *Chief of Anti-matter; Deputy Chief, Grunge Removal Section; Chief, Crap Accretion Police; Chief, Office of Bullshit Detection; K.I.S.S. Kops “Best practice” = ZERO Standard Deviation Ex-ecu-tion! “Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done (1) sum of Projects = Goal (“Vision”) (2) sum of Milestones = project (3) rapid Review + Truth-telling = accountability “Costco figured out the big, simple things and executed with total fanaticism.” —Charles Munger, Berkshire Hathaway “almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. Grant) Excellence in Execution = Deepest “Blue Ocean” Ac-counta-bil-ity! “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” —Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune) 30% MH: 80% CF: (no salesfolk) (salesfolk) 6:15A.M. DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6:15A.M. Part SEVEN “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious … “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 No: People. No: Product. No: Value to customer. Yes: Dilution, other control and shareowning issues. Yes: Scale-as-power. Yes: Market share. “On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy. … Your main constituencies are your employees, your customers and your products.” —Jack Welch, FT, 0313.09, page 1 “To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson “Too Much Cost, Not Enough Value” “Too Much Speculation, Not Enough Investment” “Too Much Complexity, Not Enough Simplicity” “Too Much Counting, Not Enough Trust” “Too Much Business Conduct, Not Enough Professional Conduct” “Too Much Salesmanship, Not Enough Stewardship” “Too Much Focus on Things, Not Enough Focus on Commitment” “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values” “Too Much ‘Success,’ Not Enough Character” Source: Jack Bogle, Enough! (chapter titles) #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 Jim’s Group: Jim Penman.* 1984: Jim’s Mowing. 2006: Jim’s Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006 Jungle Jim’s International Market/“shoppertainment” Abt Electronics Zabar’s Bronner’s Christmas Wonderland Ron Jon Surf Shop. Junkman’s Daughter Smoky Mountain Knife Works Hartville Hardware Source: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin *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 ‘dull-normal.’ [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 Muhammad Yunus: “All human beings are entrepreneurs. When we were in the caves we were all selfemployed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006 “gurugate”: The Gurus’ fixation with “the wrong stuff”* *Not “they,” but “us.” Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! Under-rated: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs! Part EIGHT #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 !” Don’t > Do* * “Don’ting,” systematic, > WILLPOWER John Sawhill/Major Strategic “What areas should the Conservancy focus on and more important— Initiative: what activities should we stop doing?” Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Conservancy Became the Largest Environmental Organization in the World #58 “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) “How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be. The problem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders #59 “You must be the change you wish to see in the world.” Gandhi “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “I am a dispenser of enthusiasm.” —Ben Zander “[Ronald Reagan] radiated an almost transcendent happiness.” Half-full Cups: —Lou Cannon “Swimmers and colleagues remember a man of almost boundless energy and passion, pointing to his preternatural cheerfulness at 6A.M. practices. —Stanford magazine, on Richard Quick, women’s swimming coach (13 NCAA championships, the Olympic teams he coached won 59 medals) “He’d look you in the eye and tell you that you could do it. He was so genuine and passionate that you’d start to believe it yourself.” —Jessica Foschi, All American and NCAA champion “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 [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 found themselves chatting amiably. … 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) “Ultimately the smile was symbolic of how Mandela molded himself. At every stage of his life he decided who he wanted to be and created the appearance—and then the reality—of that person. He became who he wanted to be.” —from “Look the Part” (Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel) Smiling begets a warmer environment. Thanking begets an environment of mutual appreciation. Enthusiasm begets enthusiasm. Love begets love. Energy begets energy. Wow begets Wow. Optimism begets Optimism. Honesty begets honesty. Caring begets caring. Listening begets engagement. __________ begets _____________ “It’s always showtime.” —David D’Alessandro, Career Warfare #60 “Some call it a blind spot, others naïveté, but Mandela sees almost everyone as virtuous until proven otherwise. He starts with an assumption you are dealing with him in good faith. He believes that, just as pretending to be brave can lead to acts of real bravery, seeing the good in other people improves the chances that they will reveal their better selves.” —from “See the Good in Others” (Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel) “Keep a short enemies list. One enemy can do more damage than the good done by a hundred friends.” —Bill Walsh (from The Score Takes Care of Itself) #61 The “19 Es” of EXCELLENCE Enthusiasm! (Be an irresistible force of nature! 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 coach Bill Parcells’ doctrine: “Blame nobody!! Expect nothing!! Do something!!”) Empowerment! (Respect! Appreciation! Ask until you’re blue in the face, “What do you think?” Then: Listen! Liberate! 100.00% innovators!) Edginess! (Perpetually dance at the frontier and a little, or a lot, beyond.) Enraged! (Maintain a permanent state of mortal combat with the status-quo!) Engaged! (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Electronic! (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. Crowdsourcing wins!) Encompassing! (Relentlessly pursue diversity of every flavor! Diversity per se generates big returns!) (Seeking superb leaders: Women rule!) Emotion! (The alpha! The omega! The essence of leadership! The essence of sales! The essence of design! The essence of life itself! Acknowledge it! Use it!) The “19 Es” of EXCELLENCE Empathy! (Connect! Connect! Connect! Click with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!) Ears! (Effective listening in every encounter: Strategic Advantage No. 1! Believe it!) Experience! (Life is theater! It’s always showtime! Make every contact a “Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Eliminate! (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!) Errorprone! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. CELEBRATE the booboos! Try more stuff, make more booboos! He who makes the most mistakes wins! Fail! Forward! Fast!) Evenhanded! (Straight as an arrow! Fair to a fault! Honest as Abe!) Expectations! (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 hit it.”) Eudaimonia! (The essence of Aristotelian philosophy: True happiness is pursuit of the highest of human moral purpose. Be of service! Always!) EXCELLENCE! (The only standard! Never an exception! Start NOW! No excuses!) The end Tom Peters’ EXCELLENCE. ALWAYS. Leadership. Muscat/03 August 2010 Excellence: The Leadership 50 bedrock. 1. Leaders … serve. Organizations exist to serve. Period. Leaders live to serve. Period. The Basic Mechanism. 2. Leadership Is a Mutual Discovery Process. … Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.” Leaders’ “Mt Everest Test” “free to do his or her absolute best” … “allow its members to discover their greatness.” The Leadership Types. 3. Great Leaders on White Horses Are Great Talent Developers (Type I Leadership) are the Bedrock Important – but of Organizations that Perform Over the Long Haul. Whoops: Jack didn’t have a vision! 4. But There Are Times When the “visionary” “Type” (Type II Leadership) Matters! “A leader is a dealer in hope.” —Napoleon 5. Find the “Businesspeople”! (Type III Leadership) I.P.M. (Inspired Profit Mechanic) 6. All Organizations Need … the Golden Leadership Triangle. The Golden Leadership Triangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic. 7. Leadership Mantra #1: IT ALL DEPENDS! Renaissance Men are … a snare, a myth, a delusion! 8. The Leader Is Rarely/Never the Best Performer. The Leadership Dance. 9. Leaders … SHOW UP! “A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender 10. Leaders … LOVE the MESS! “If things seem under control, you’re just not going fast enough.” —Mario Andretti 11. Leaders “We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher 12. Leaders Re -do. “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 13. BUT … Leaders Know When to Wait. Tex Schramm: The “too hard” box! 14. Leaders Are … Optimists. Hackneyed but none the less LEADERS SEE CUPS AS “HALF FULL.” true: “[Ronald Reagan] radiated an almost transcendent happiness.” Half-full Cups: —Lou Cannon 15. Leaders FOCUS! “Dennis, you need a … ‘To-don’t ’ List !” 16. Leaders … Send V-E-R-Y Clear Signals About What’s Important! “Really Important Stuff”: Roger’s Rule of Three! Danger: S.I.O. (Strategic Initiative Overload) If It Ain’t Broke … Break It. 17. Leaders … FORGET!/ Leaders … DESTROY! Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock 18. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.” “Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992) 19. Leaders … HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Source: Wayne Burkan, Wide Angle Vision 20. Leaders Make [Lots of] Mistakes – and MAKE NO BONES ABOUT IT! “Fail . Fail again. Fail better.” —Samuel Beckett 21. Leaders Make … BIG MISTAKES! “Reward excellent failures. Punish mediocre successes.” —Phil Daniels Create. 22. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to … CREATE NEW MARKETS. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, CEO, Reuters 23. Leaders … Make Their Mark / Do Stuff That Matters Leaders … “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson 24. Leaders Push Their W-a-y Up the Valueadded Chain. Organizations … “Every project we undertake starts with ‘How can we do what has never been done before?’” the same question: —Stuart Hornery, Lend Lease 25. Leaders Push Past Service “Transactions” to … Scintillating Experiences. “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 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 26. Leaders LOVE the New Technology! Power Tools For Power Strategies 27. Needed? Type IV Leadership: Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic … (4) Technology DreamerTrue Believer. Talent. 28. Leaders … DO TALENT! Brand = Talent. 29. When It Comes TALENT to … Leaders Always Go Berserk! From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent 30. Leaders Listen. Leaders Consult. Passion. 31. Leaders … “Sell” PASSION! “Create a ‘cause,’ not a ‘business.’ ” Gary Hamel: 32. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge 33. Leaders Are … in a Hurry “We don’t sell insurance We sell speed.” anymore. Peter Lewis, Progressive “Metabolic Management” 34. Leaders Focus on the SOFT STUFF! “Hard” is “soft.” “Soft” Is “hard.” Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] The “Job” of Leading. 35. Leaders Know It’s ALL SALES ALL THE TIME. If you don’t LOVE SALES … find another life. (Don’t pretend you’re a “leader.”) 36. Leaders LOVE “POLITICS.” If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”) 37. But … Leaders Also Break a Lot of China. Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, “Most Admired Global Corporations” 38. Leaders Give … 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. Source: Sara Lawrence-Lightfoot, Respect Amen! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change 39. Leaders Say “Thank You.” “The deepest human need to be appreciated.” need is the William James 40. Leaders Are … Curious. The Three Most Important Letters … WHY? 41. Leadership Is a… Performance. “It is necessary for the President to be the No. 1 actor.” nation’s FDR 42. Leaders … Are The Brand “You must be the change you wish to see in the world.” Gandhi 43. Leaders … GREAT STORY! Have a “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership Leader Job 1 Paint Portraits of Excellence! Introspection. 44. Leaders … Enjoy Leading. “Tom, you left out one thing …” 45. Leaders LAUGH! 46. Leaders … KNOW THEMSELVES. Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.) 47. But … Leaders have MENTORS. Upon having the Leadership Mantle placed upon one’s head, he/she never shall hear the unvarnished truth again!* (*Therefore, she/he needs one faithful compatriot to lay it on with no jelly.) The End Game. 48. Leaders are … RELENTLESS. “Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author 49. Leaders ???: “Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.” “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES.” 50. Leaders Free the Lunatic Within! “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9. If it ain’t broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff. 10. Avoid moderation! 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. Michelangelo 51. Leaders Relentlessly Pursue … Excellence “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) Excellence Is a Universal Striving. If Not Excellence, What?